Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-31
WAR RISK INSURANCE
70 Build UP MARINE
SHIP REGISTRY LAW NuLLlTY
WITHOUT ADDITIONAL
LEGISLATION.
CONGRESS- READY TO TAKE
ACTION IN PRESENT CRISIS
Democratic Administration Bill Shown
to Be Masked Form Of Ship Subsidy
and Probably Will BE Modifed-In-
surance Expert Throws Light on OPP
Grafton Of Marine Insurance.
Especial Correspondence

'N'ie VIZ snap iNSl.l' idN VIII SOpI NC
supplemented by a law allowing the
government to underwrite war risks
and thus put American ships on as
good a basis as the ships of belIigerent
countries. In the opinion of the COM
mittee of representative business men
who conferred With the secretary Of
ne treasury on this insurance PROPOSE
ton. the ship registry bill would be
AN absolute nullity without the pass
age of the war risk bill. AS Seth Low,
chairman of the committee put it:
We believe. as 1 say. that if this
bill is added to the ship registry bill
ii Will enable Americans to bring their
ships under the American flag with the
same confidence if they can get more
war risk insurance on hulls and cargo
in adequate amounts and at as good
rates as foreign ships can obtain
them. Without this bill they can be
sure of neither of those things, and we
believe in order to keep those ships
under the American flag we must put
competition on foreign trade on even
terms"
The hearings on the war risk in
surance bill which were held before the
house committee on interstate and
foreign commerce have just been made
available and throw new light on the
details and purposes Of the legislation
Majority Leader Underwood appeared
in favor OF the administration bill
which al that time provided that the
government should go into the insur-
ance business merely during wars and
should retire in favor of the private
insurance companies in time of peace
Rel preventative ID. j. Lewis Of Maryland
advocated his own bill establishing
permanent marine insurance bureau:
Seth Low. speaking for the representa-
tive business men who were DESTROYS
Of securing aid from the government
set forth and enlarged the views above
quoted. and j. Parker Kirlin. New
York insurance expert gave the com
mittee the benefit of his technical
knowledge
Political Dynamite Exploded.
An unexpected charge Of political
dynamite exploded during the hearings
when Representative Stevens. of Min
nesota. asked Mr. kirlin if it were not
true that the bill approved by the
democratic administration practically
REQUIRED the government to pay to the
shipper certain amount of money for
the sake of putting him on a compete
tive basis. The witness admitted the
truth Of Mr. Stevens suggestion and
when Mr.. Stevens said. AS good re-
publican have voted for ship subsidies
and am glad to do so again. This. then.
amounts to a ship subsidy. ] want to
make 1t just as bad and bald as can
This was the signal for metaphysi-
cal discussion on the part of the demo-
Gratis of the committee to show that
for the government to assume the war
risk hazard would not be subsidy. Mr..
Cullop. OF Indiana. took issue with Mr..
Stevens and declared that it should not
be subsidy because money did not go
to the ship owner. 'If there are any
returns or loss sustained" said he. "it
goes to the government and the pur.
pose IS to move our crops in great
emergency"
Runs Small Risk.
That the government is running a
very small risk in underwriting in
surance OF this kind was the opinion
of Representative Underwood as we'll as
of Mr. Kirlin Both of these gentle
men viewed the necessity for the legis-
lation as temporary though urgent. at
will probably be necessary to keep the
law on the statute books only very
short time" declared Mr. Underwood.
'sbut it will quiet the situation II We
can make the country feel sure that
they are going to get some ships to
move the crops at once and get the
marine insurance risk Mr.. Under
wood maintained that the only war
fisk involved for crops shipped in
american bottoms is in the case. they
are transported directly to either
beligerent country or to one of its,
armies. He anticipated no trouble from
seizure on the charge that the cargoes
were contraband of war
: Representative Lewis argument was
bssed on the hypothesis that nearly
tWo-thirds of the money collected by
the marine insurance companies goes
into wasteful administrations and reck-
leF.s inefficiency and not to the dis y
charge Of the functions of indemnif-
CATION His idea was-and as out
lined in dispatches Of the transcript,
Secretary McAdoo is inclining to agree
with him-that the government might
we'll try the experiment of saving this
waste in marine insurance and thus
cut down a large part of the difference
between the cost of operating an
'HtACIiSoh anu lOIelSH
chant marines. IF it works WE'LL said
Mr. Lewis, "the American shippers and
American farmers will justly be en-
titled to ask that it be continued: If it
does not work we'll and if it costs as
much az 1t now costs, should say
that the President could we'll advise
that the government get out of it. But
if 1t proves it's efficiency by cutting
down the cost of marine insurance one
half. as / think IT can, because l be-
lieve it il another case Of the parcel
post over again, then I challenge any
statesman to give a reason why the
government should not continue in a
field that 1t has won by efficiency"
An interesting sidelight on the re-
lation between the big navy and the
insurance rates was given by Mr..
Kirlin who declared that IL a cargo of
coal was to be shipped to Genoa,
neutral port, England would cover
the war risk in British Bottom at
from to 5 per cent for the coal and
21s per cent for the ship. whereas the
American shipper shipping coal in an
American bottom, would have TO pay
today about 10 per cent. Pressed for
an explanation Mr.. Kirlin said that
England was willing ITO take that
risk at alower rate because they have