Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-10-09
MARINE INSURANCE
RATE IS DECREASED
ON U-DOAT SHOWING
Twenty-Five Per Cent ReduC-
ton Said Officially to Be
Due to Decrease in Hazards
of Wartime

WASHINGTON, oct. "a reduction
of nearly IS per cent in premiums Tor
insurance of American vessels and car
goes traversing the war zone was an
nounced today by the governments war
risk insurance bureau.
The reduction was made. ii was Off
cially announced, because of the de-
crease IN the risks" Cnoff1cially II
was regarded as the governments ex-
preston of it's opinion, in terms Of
dollars and cents that the U-boats have
of frightfulness.
Indications have not been lacking
for the past three weeks that the gov
eminent intended TO revise its war risk
insurance rates in the light Of reduced
effectiveness OF German submarines. 1t
hardly was thought, however, that the
cut would be large.
Announcement of the reduction was
made in this cryptic statement by the
treasury department.:
The secretary of the treasury today
announced that the bureau OF war risk
insurance has reduced its rates on all
American steamers and cargoes travers-
ing the war zone from 1-2 per cent TO
5 per cent.
This reduction is made because of
the corresponding decrease in the risks"
BASED ON SINKINGS.
Determination of the war risk pre-
MUM is based upon many factors, but
primarily on the number Of vessels trav-
ersing the war zone and the number
of sinkings.
The effectiveness of methods used
in combating submarines also enters
largely into consideration.
,aVaf
IL is regarded as apparent that officials
believe effective methods have been
adopted to deal with the U-boats al
though details cannot be revealed. The
war risk bureau has assumed risks to-
falling many hundreds of millions of
dollars, with minimum losses and II is
regarded as unlikely that this success
would be jeopardized in the future by
making rates below the limit of safety
warranted by facts, some of them of
a secret and highly confidential ma
ture. in possession of bureau officials
and their superior officers. The tenden-
cy thus far has been rather toward
rates with a due marginal allowance
for risks slightly greater than those
considered i'm formulating the premiums
ESTABLISHES PRECEDENT. q,
Today's announcement marks the first
reduction IN any government insurance
risk to any waters infested by subUa-
rines. Heretofore the revisions have all
been upward. The first increase was
announced March 81, before Americas
entry into the war, and approximately
seven weeks after Germany put into
effect its campaign of ruthlessness. This
increase was approximately so per cent,
or on the average, from per cent to
per cent of the value of the ships and
cargoes.
Little more than two weeks after
Americas entry into the war, the rate
was increased approximately two-thirds.
The increase was announced on the
same day that the German submarines
ended the week of their maximum
achievement-the week of April 81
when a total of 40 vessels of more than
500 tons were sent to the bottom.
The third and last increase, an
nounced July %. brought rates up to
6 IL per cent. 1t was made. the bureau
announced, because the 5 per cent rate
is not adequate for the risks under
taken"
Steady dimunition in the number Of
weekly sinkings since September 2 IS
primarily responsible for the decrease
announced today.