New-York tribune., 1920-09-20
Benson Points Out
Advantages of U. S.
Marine Insurance
.Deplores Manner i'm Which
Shipping Interests Play
Into Hands of Foreigners
for Mistaken Economies

From The Tribnhe's Washington Bureau
WASHINGTON. Sept. 19.-The United
States Shipping Board is greatly con-
cerned over the failure of American
shipping interests to give the recently
organized American Marine Insurance
Syndicates their hearty support. Com
menting on this situation, Admiral
Benson, chairman of the Shipping
Board, to-day said:
AS a general rule, American ship
ping interests are showing commend.
able spirit In supporting the newly
organized marine insurance syndicates
But quite frequently we encounter
certain vessel owners, or prospective
purchasers of vessels. who manifest
little interest in the question OF
whether or not their insurance is
placed with Anserican underwriters
Even very slight difference in the
rate seems to determine their whole
attitude in favor Of foreign interests
They do not seem to be prompted by
any desire to patronize home com.
Panies, and seem to look only at the
immediate cost, rather than regard
marine insurance as national serv.
ice.
Such an attitude is decidedly wrong
and unfortunate. The task of build.
ing up and properly maintaining ou,
shipping, foreign trade and insurance
can never be accomplished unless there
is loyal support by our citizens. Our
investigation clearly reveals, the per
sisteney with which foreign merchants
and vessel owners have always favored
their own home underwriters. II
should be our aim to emulate thei,
example.
ut is not at all unlikely that our
foreign competitors, with o view tc
counteracting our efforts to establish
comprehensive marine insurance
business, may gut rates unduly, be.
been precisely the method used in the
past to prevent the development OF
American marine insurance beyond in.
significant proportions. Cut rates, OF
coarse, appear very attractive for the
moment, and are intended to centro
business TO such an extent as to starve
ouv companies and frlgnten our capita
from entering the business.
"But such rates, Of course, are mot
lasting, When the real obiect--the
elimination of competitors-has beer
attained rates are again raised, anc
usually to @ point sufficiently high tt
reimburse the victors for the losses
incurred during the competitive
struggle. III lS eAcecClnSy ChOrt
| sighted to play into the hands of oul
adversAries by snatching the tempo.
rary benefit Of cut rates and later
find ourselves permanently dependent
upon them for our insurance require
msnts.
"Any material reduction in rates or
American risks by foreign under
| writer's should be carefully considered
from this viewpoint. What is needed
IL long range view in the interest
Of the national welfare. American
underwriters. go long as they are
fair In their methods and premium
charges, should be heartily supported
by American business interests, ane
| should NOT be deserted for trivial rea
sons or because OF methods practicct
| by foreign competitors.
at is only through general supper
on the part Of all American interest.
| that the newly organized Insurance
| syndieates can grow into Ii strpni
and lasting institution and perform
their greatest service to both elient
and NATION. Failure In this respec
| will mean q continuance Of past de
| ployahle conditions, namely, the un
neeespary dow Of millions Of dollar
OF marine premiums to the other side
the use of marine insurance by ou
sometitors as d commercial weapor
| against ous interests. and inability OF
eur part 90 properly safeguard com
sneseial fn2osmstion