The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-11-27
VESTRIS SHOWS
UNITED STATES
LLOYDS DANGER
Monopolistic British Marine
Insurance Agency Raped
by u. S. Senator
ASKS FOR INVESTIGATION
Hundreds Of American SchOOn.
crs Laid Up Because of In
surance Rates
ASKS FOR INVESTIGATION
Nv HORTENSE SAUNDERS


New York, Nov. 27.-(NEA)-In
the aftermath of the Vestris tragedy,
while federal investigators are en-
deavoring to establish responsibility
for the loss of an ocean liner and
more than 100 lives, a broader as
pect of the threats against marine
safety is coming to light by the
proposal of a senate investigation of
marine insurance.
do marine insurance companies,
like fire insurance companies, place
the proper emp basis on measures for
preventing tragedies" asked Senator
Robert E. Wagner, in announcing
that he would request the probe.
"Is it true that the master of a
vessel may be blacklisted by an in
surance company refusing tc insure
a cargo he takes out? What mea-
sures, if any, do insurers take to
make a ship safe before they write
a policy on it? These are some Of
the things ( should like senate
committee to consider"
Means More Than Safety
Such a probe as Senator Wagner
proposes would mean, practically, an
investigation of Lloyds, for Lloyds
UNDERWRITERS the insurance.
"This thing deals not alone with
safety, but with the very welfare
and future of the American mer-
chant Marine" declared William T..
Donnelly, naval engineer and former
member of the Safety Committee of
the United ST; ties Shipping Board.
"Lloyds," explained Donnelly, lis a
British concern with it's power to
conduct business granted by the
crown. Lloyds controls this gigantic
business without restraint or control
Of any kind.
"They make no reports, have no
restrictions on premiums and rates,
and the results of the business new
err are made known. Under special
supreme court ruling that the send
ing of kilograms does not constitute
doing business in the United States,
we are entitled to no reports from
Lloyds. They can't be sued or
brought into our courts.
"And no matter how many acct
dents occur at sea, Lloyds never
lose money, because they can raise
their rates at will. We have no
definite knowledge of the cost or
the price paid for insurance. There
is nothing to prevent private agree
ments regarding rates.
Because Of the powerful posi-
ton Of Lloyds, no other marine
insurance companies have any
chance to operate against them
They must play ball with Lloyds OF
get out.
'In the year 1917, a year when
shipping hazards were the highest
and when $4,000, 100000 worth Of
tonnage was sunk, Lloyds took ir
$6,OO0,OOO,OO0 in insurance pre-.
miums."
Fear Blacklist
Insurance rates are high, ant
there is no incentive on the part
of the ship owner to lose space
in his ship for cargo by making
it safe, Donnelly declared, since
the rate for a highly seaworthy
craft is no less than for one tina
is ready for the junk pile. The
ships officers are in fear of incur
ing the displeasure Of Lloyds be
cause if they lose a cargo and shil
insured by it, they are discredited
They wait until the last minute be
fore they abandon a ship, he said
just as did the captain of the Yes
iris.
"Thcre are hundreds of American
schooners laid up because they can
not pay Lloyd's rate" Donnelly wen
on.
"A mercha It, having made for
eign sale of goods, first must secur
his required space on a certain shi
and obtain the date of sailing wit
information as tc the ports of de
parture and destination. He the
submits this information regarding
the value and character Of the good
in question to one or more insuranc
agents and must either accept tn
rate they offer or ship his good
without insurance.
"This places US in PRACTICAL
the same position as we were wit
our American railroad corporation
before the creation Of our Interstat
| OV1LIlCANC SOIuIuIS0lOIs USu IL Wd
a well known fact that the railroad
could give special rates for specis
considerations, to the detriment {
the development of national bus
ness.
!, "The solution of the marine i,
surance situation would be the fol
: nation of an American National M,
, tual Marine Insurance Compan
. conducted for the American poop
, at cost, and under the broades
/ cleanest supervision possible.
Italy and Germany have bot
broken away from Lloyd's domin,
} ton and have their marine insu
| ance under the control of their GO
ernments. America today is payir
!. Great Britain higher tribute tbs
= in the days before the revolutit
9 against English rule"