The New York herald., 1921-06-24
ships INSURED, Then
SUNK, LONDON VIEW
Marine Underwriters Ac-
count for Missing Vessels
by Wrecker Theory.
ONE NATION UNDER BAN
Disasters Later Befell
Steamers of Another Euro
pean Country.
BUSINESS BROUGHT HERE
Attitude Of Companies Is That
American Insurers Have
Some Things to Learn.
ONE NATION UNDER BAN
BUSINESS BROUGHT HERE

LONDON. June 23.-The tremendous
losses of cargoes and ships at sea.
which caused stir in London marine
underwriting circles some months ago,
resulted in the insurance agents put
ting the shipowners and exporters Of
one European nation under the ban
But refusal to do business with these
persons failed to end the remarkable
sequence of sinkings, most of which,
strangely enough, occurred within
reach of land, and were consequently
for the most part without casualties
and were attributed to striking
mines"-although the Admiralty in
sisted that the seas had been cleared
of these dangers-"fire in the bunk
ers,p striking rocks" and other causes
equally plausible but equally as diff
cult to disprove.
About the time the underwriters ban
became effective similar disasters be-
gan to befall the merchantmen of an
other western European country.
Taboo Is Extended.
While in the latter case no concerted
action has yet been taken by the Lon
don underwriters many individual firms
have extended the taboo 10 include own
ers of this nationality.
AS a result in both instances there
has been a transfer of much OF this
refused business to the American mar
ket. The British are watching with in
psrest the outcome of the experiment.
The attitude of many of them might be
summed up as 1--WE wish you good luck
but we think you will learn a few
things"
One specific case which influenced the
British to lay the ban was attended by
significant circumstances which had
been common with those of many pre-
vious sinkinss. The vessel I'm question,
bought early in 1919 for f165,00O ster-
ling, sank recently near Cape Camaret,
France, as a result Of running ashore 3"
II developed that the hull and machinery
were insured for f1s0,000 sterling on q
policy that expired on the day after
the date of the disaster"
List of sinkinGs Deceptive.
Lloyds a few days ago published list
OF the sinkings OF thirteen vessels of the
same nationality since March 13 last, all
attributed to similar causes. An exam
nation of Lloyds' lost book" for the
first four months OF 1921 shows fewer
marine casualties than occurred during
the corresponding period of the two pre-
ceding years. but underwriters say these
figures are deceptive as. due to decreased
business, fewer ships were at sea during
the first part of this year and that the
sinkings. therefore. were proportionately
higher.
"The commercial morality of the world
seems TO have been markedly lowered as
a result OF the war" said one under
writer to-day whose explanation Of the
situation was asked. The demand for
bottoms after the armistice raised ship
ping TO unprecedented values. Insurance
valuations increased correspond ingly.
Then the slump came and values were
lowered and owners faced tremendous
losses, but insurance policies continued
at an artiicially high mark What we
term moral risk naturally increased
and sinkings began That Is our notion
how 1t all came about