New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-16
u. S. Insurance
Companies Face
Cut-Rate L light
Foreign Concerns Take Ship
Business Below Cost; Big
Problems Confront Amer
lean Marine Underwriters
Hague Rules Approved
British Still Seek Funds to
Meet War Claims; Theft
Evil Reported Alarming

American marine insurance under
writer's face many difficulties in their
attempt to build UP the industry in the
fsce of keen foreign competition, ac-
cording to statements yesterday by
representatives of New York COM
panies. 1t was reported that British
and other foreign concerns are cutting
rates below cost in the effort to obtain
ready funds and also to discourage the
development of American companies.
Some of these difficulties, it was said
arise from domestic legislation. chiefly
taxation on gross receipts instead Of
net profits, fear of antitrust legisa-
mate excessive overhead costs, and a
lack of close cooperation among
shippers. banks, steamship companies
and insurance underwriters. The Ed
monds bill, now pending in Congress,
IS expected to remove many of the dis
advantages. This measure has the APP
prevail of underwriters, the Shipping
Board and the leaders of both the
House and Senate. 1t will probably be
enacted when the pressure of more i'm
portant legislation is removed.
The charge is made by local insur-
ance men that British companies are
writing insurance on American hulls
and cargoes more cheaply than upon
ships of their own nationality. This is
done, it Is said, to discourage Amer
lean concerns and force them out of
operation. The losses incurred in
American risks are reported to be re-
covered by higher rates on business in
which American concerns do not par
ticipste. The established British con-
Germs have wider spread of business
"a hoir Ay,,o rr n0f 4
accordingly are better able to absorb
losses in one country.
Seek Business at Loss
Local insurance men declare that
British concerns are now actively seek
ing business at slight loss in order
to secure ready funds to meet claims
which are still unsettled from the war.
Sufficient money could be obtained from
the sale of securities held as reserve
by these firms, but this could be done
only at a heavy loss on the stock eX-
changes at present.
Marine underwriters in New York
are inclined to favor The Hague ship
ping rules, which standardize bills Of
lading and fix the liability for which
steamship companies are responsible in
event of loss or damage, but no joint
action has yet been taken on this ques-
ZION. ne HAGUE IuleS Tx d Hliiiillu III
of $500 sterling upon one package,
as against the usual limit of 500
per package fixed by American steam
ship owners and operators. 1t is the
contention of insurance officials that
the steamship companies injure their
own business by refusing to accept a
much greater responsibility for loss
and damage to cargo.
The situation existing in the British
and French insurance market has been
outlined by Mendon Chubb, of Chubb
& Sons. in a statement following his
return from abroad.
General Trade Stagnation
"In Paris there is very consider
able slackening off in demand for in
surance. and during the time that
was there the demand seemed almost
at a standstill," said Mr. Chubb "This
was principally due to general trade
stagnation. and was contributed to by