New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-16

the fact that the want Of rain had made
the water so low in many of the inland
waterways as to almost preclude naVl-
cation. The theft situation here, as
elsewhere, was receiving the anxious
thought of the underwriters but while
an attempt had been made to arrive at
a general minimum schedule of rates,
the universal opinion seemed to be that
these rates were inadequate, and many
of the conservative companies were
meeting the situation by declining &C
counts where theft was included.
The underwriters who made money
for their companies during 1920 were
the exception, and | am not even sure
that there were any. Apparently there
was q general inclination on the part
of the insuring public TO give greater
weight to considerations of reputation
and security than has been the case in
recent years.
The situation in the London market
was particularly important because of
the tremendous Importance of this
market to the other insurance markets
of the world. The same general char
acteristics were to be observed
duced premium income brought about
by the general slackening of trade and
the tremendous fall in the value Of
vssels and cargoes, the market ex-
banded by the formation of new COM
panles, and the opening of marine in
surance companies which before the
war had confined their insurance to
other classes OF business
Theft Situation Alarming
"Here again the theft situation was
one that engaged the constant atten-
ton of underwriters, and the pressure
from the losses from this hazard has
been so great as to force cooperation
among underwriters, whereas there
seemed to be total lack of co-opera-
ton as regards any other classes of
business. This cooperation had taken
the form of an agreement not to in
sure more than rs per cent of the net
cost Of any shipment against theft
the the underwriters being unanimously of
the opinion that unless the shippers
and receivers we're directly interested
in reducing the theft hazard no i'm
provement could be looked for They
have adhered to this agreement, al
though they have felt the effect of the
competition of foreign markets where
the agreement is not being useda None
the less, there is general feeling that
the business, including theft, is being
done below cost.
"The Hull situation was also occa-
sioning them much concern, and it
seems difficult to foresee anything but
disaster in the way in which this
class of business was being written
while | was in London. The market
value of vessels has decreased to an
extent entirely out of proportion with
the cost Of new production or the cost
of repairs, and the underwriters were
nsurlng on present market values, with
no advance over the rate charged last
year on much higher valuations. and
IN many cases with actual rate reduc-
tons. 1t seems to be the consensus
that here has been little or no money
IN the Hull business for the last two
years, and it seems probable that unless
there is change in market conditions
the 1921 Hull accounts will show a
heavy loss. Indeed. l found no under
writer's to whom l spoke disposed to
defend the rates and conditions at
which hulls were then being insured
in the London market"