Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-05-26
BUREAU OF WAR RISK INSURANCE
BY FREDERIC J. nAsKIN.

in the early days Of tho war IL had
oecn In some cases as high as So
Rates to the Far East sank to 81 on
the SloO. the panic rates having been
as nigh as SIS or SEQ in some cases
On large and valuable cargoes such
differences soon total immense sums
me rates. of course. would have come
oo"n IN ay case. but the bureau caused
mem TO come down promptly. and to
the lowest practicable level To-day
fa are still lower. owing to the
iact that commerce destroyers have
oeen practically swept from the seas
War Risks Tubulnted.
80 accustomed has the world be-
come to war conditions that all these
rates Tor war-risk insurance have been
-. Ia ouiated and published. Only in
the case Of certain special ports,
notably those in the United Kingdom
ana the belliSerent countries of Eu-
rope. the bureau considers each appU
cation for insurance individuality. and
MAKES "a special rate based on the
var situation and the nature OF the
vessel and its cargo.
The making OF rates IL pIa,n,y IN.
oureaus most important and delicate
TASK The office is organized accord
ingiy The regular STAFF consist, ~
only director. An assistant director.
.hree clerks and messengers pref
" small force fo- concern doing
s2.o0o.oo0 business. In addition hou.
ever there Is AN advisory board, COM
posed OF three expert insurance men.
VINO 90 not serve regularly, but only
as they arc needed. While thev ore
on the active list each of them draws
$25 day. The whole eepcnse OF run
ming and organising the bureau only
totaled about $4,000 last year If the
war should stop Tomorrow, this ven
ture into the insurance business would
nave proved one Of the most profitable
the government has ever made II is,
or course, impossible to forecast what
losses any day may bring forth
So far the bureau has been most for
tunate The heavy losses have been
only four-the steamers Evelyn. Garth
and Greenbricr and the sailing shin
William +. Frye-the famous Frye
that was sunk by a German cruiser
while bound for Europe loaded with
wheat. The Evelyn and the Carib
were carrying cotton TO Bremen. Both
OF these boats were sunk by mines.
The mine that sent the Evelyn to the
bottom exploded SO far forward that
some OF the cargo was released, and
approximately $4,000 worth OF II has
been salved.
Relieved American Industries.
The fate OF these two cotton ships
point 10 one of tho principal activities
of the bureau in the early days of the
war. The Federal war risk insurance
was one Of the biggest aids toward
relieving the tension in the cotton
belt The bureau also insured many o.
the American ships bringing dyestuffs
and cyanide from Germany before the
blockade had assumed it's present
strictness. BY enabling these vessels
TO take prompt advantage of the op-
portunity while Il lasted. the bureau
performed big service for American
industry.
Uncle Sam cannot claim to be unique
in having a government war risk in
surance bureau. nor even to have been
pioneer in the movement. England
was the most far-sighted Of nations
in this RESPECT: she had her bureau
planned down to the last detail be-
fore the war. To-day practically all
of the helligeren:s. as we'll as all the
neutral countries. with important ship
ping industries have their government
provisions for insurance. The situa-
ton is universally recognized as one
too fraught with hazard to be ven
tured by unassisted private capital.
There is no doubt that the Amer
lean bureau me: pressing need in
highly creditable fashion. Had the
bureau not been established, a greater
or lesser paralysis OF international
trade must have aupervened. Such
condition could not have been perma-
nent; the interests at stake were too
great, and private capital would have
found way out; but the government
was in position to act more quickly
and decisvely than any combination
of private interests.
The original bill provides that the
life of the bureau shall end on the
I'd of September, 1916. Another bill
is already before Congress extending
the period two years further. The bu-
rcau will doubtless operate as long as
the war lasts. 1t il highly improbable
. 1.-
is supplementing private marine in
surance activities. In peace times II
would be in danger OF competing with
them, state Of affairs Incompatible
with American theories of government.