Lloyd's Coffee-House.
The Times, 1824-05-19T00:00:00

Yeaterdaya Mgeeting of the Subscriber was convened,p=rsuant to notice duly given, to deliberate upon what step. were to be teken In consequence of the introduction of a bill into Parliament for the in- corporation of a company to effect marine insurances, to be calledi the " Mutual Marine Inutranee Company." B. SIA&w, Esq., chairman qf the committee opened the bustinesg. He would first proceed to takc the opinion of the proprietOrs tt those matters which were not likely to awaken diseussiOn. He would ask the meeting to confirm the resolutions of the last general mceting; the first for subscribing a grant of 200L to the Royal Na- tional Institution fur preserving life from the dangers of shipwreck; the second was a vote of 1051. to another society. The resolutions were severally adopted. The CHAIRMAN then proceeded to the business of the day. The cOnamit.tee hod notice from time to time, during some eonstderable time past, of various attempts which were making to bring about a very material alteration in the marine insurance laws of the coun- try. They did not think it advisable to take anyv active steps together, Dr to convene the general body in consequence, unless some substan- tial proposition of the kind should publicly call for it. So soen, how-v ever, as notice was given to the committee by Dlr. Buxton, that it was his intention to obtain leave to bring in a bill for the alteration of so much of the 6 Geo. L as related to the two Mlarine Instr- arce Companies{by that act there were restrictions put upon all persons from effecting marine insurances, except the underwriters and the other comppany-the bill of which notice was given vas to take away the exclusive benefit secured by the chazeers to those Companies)-the committee then called the general body to consider what ought to be done. The committec had deputed two members to wait upon Mr. Huskisson, who explained to that gen- tleman the fallacy of the object of the bill. It would be vain, how- ever, for him to dlisguise from the house that those gentlemen were assured by Mr. H askisson that Government had a stolg feeling of consent towavds the bill, because the restrictions in the old act mili- tated strongly against that free trade which was the graand object of Administration at the present time. It was observed that the hap- piest con-equences had resulted from the opening of the East India trade. and that a vast accession had taken nlace in conseque5ile to the trade ofthe whole kingdom, byopeninga newpath of in(tUStry to private individuals. The committee represented to Air. HusbiI" son, that however plausible in theory, this was a case directly con. trary in ptactice. The transactions of~ this house were the effect of individual energy: those of 3 joit stocl- company, on the contrary, were effected b-y afewY individruals. Mr. Huski6son remarlked tnat Government had recolved not to allow one of tbe many joint stock companies now collecting together to be incorporated. The Lord Chancellor, ever wyatchful for the public interests, had declared, that in every bill brought in for enabling these assocations to aue or be sued in the name of their secretarv or treasurer, if there wvas not a clause inserted for giving the power so crelitors, after jutigment against the treasurer, to proceed against the body or property of every ndividual proprietor, he would take care that no such bill should pass the House of Lords. Another remark which he would moake was this-it was supposed by some who sub- scribed their names to these joint stock compgrifea, that they were only responsible to the extent of their profit$ and the capital embhrked. He had taken legal opinions frorm two erni- nent counsel from whom he learat, that if a party once gave his name to the list of a ioint-stock company, it was next to imvoisiblc for him to withdraw it again-that a dormant partner was ouly li- able up to the conclusion of the partnership transactions ; but in the case of a joint.srock company, thc names were published, and tholu: parties were no longe= in thie condition of dornant partners, nor could they ever be released from their joint responsibility until the publication in the Gazatte of their dissolution, accompanied with the signature of every one oftlhe partners, authorizing the receding party to withdraw. He paid a tribute of gratitude and respect tG the me- mory of their late chairman, and complained of the misrepresenta- tions which had been made through ignorance of the mode of doing business at that house. One gentleman had said, that if an individual living in tlhe country w ished to effect an insurance, lie must remit it to an agent or attorney in town, who then handed it to a broker, who charged forhis service 25 per cent. That gentleman saidthathecould not see why there should be restrictions on Insurances, and no wvhere else-that lie could insure his life, his bouse, and eveni his ship while in port, whenever he might choose; but while slhe was out at sea, he was compelled to insure her at Lloyd's, or at one of the two corn- panies. He would answer by another proposition to be put to the very sarne person. The baker bought his flour where lie liked, and the butchler his meat: whatreason for hindering the publican from. doing the smne with his beer ? This might be called personal allu- sion; but those who alad glass windows should never be cager to throw stones. As to the icrunediate s,bject, he scarcely knew where to begin, or how to proceed. Had it not been for the spirit, talents, application, and mnerits of theindlividual subscribers of Lloyd's, the science of underwriting could never hare been known- it would never have beeni so highly perfected as it was in this country, uor vwould the systein have been so finished in all its parts. Insurance by untlerwriting was of considerable antiquity. The earliest mention of such a body in England whici-t he could find was of the date of Qucen Elizabeth's reign, about ahe year 100; and they were spoken of as transacting their buxine&s in a little court in Lombard-street. In the year 1720, when insurgOce I companies were springing up it) all kinds of mushroom fornms, ai.'4 every street and alley had insuranice companies, the Government founrI it expedient to put some restraint upon them. Charters were granted to two companies, the rights of individuals were restricted, and an exclusive right to effect marine insurances secured to the companies. The taent and power of the company at Lloyd's had been able hitherto to defeat all comPetition : but what would be the consequence if thev were now called to contend with joint stork companies, established by the most wealthy individuals? He com- plained that these compaswies, being only called on to deposit one- tenth, gave out the amount of their capital to the world, and caused it to be believed by persons at a distance,thatinsurances would besecured on the proportion ofthc whole. How far all this might affect the indi- vidual subscribers of lloyd's was a minor question. The same talenti and power,cxerred in another channel,might be asprofitable to them. But what was to become of that system of enlightened and active aut'ncy which they had fixed in every quarter of the globe-in every naval port-in every considerable harbour throughout the world, if the resoiirces of this house should be withdrawn by the cosmpetition of joint stock companies ? There was a fact of importance which ought to be known. In the course of last year there were three in- surance companies in Paris, which were obligeA to give up the bust- ness, and they remitted several policies to this house to be ransomed. It was with this as with other things-money got money, trade Fot trade, and insurances increased insurances. The individual exertion and emulation here was far more active than theagencyof one or two men out of a company of 600 could be. The communication ofparZicu- lar and topical knowledge betveen man and man was ofgreatadvantage to their transactions. He thought the invasion of their charter wav; particular hardshlip; for to what could they trust, if not to xights secured to them, first bv sign manual of the King, and secondly, by the solemn ratification of an ect of Parliament? There were the highest legal authorities, including Miir. Spencer Perceval and Lord Ellenborough, against that violation. After some further observations upon thejustice and expedienev of the intendons of Government with respect to the company, he returned to the pro- ceedings of the committee. hr. Huskisson's opinion seemed to be so far shaken by the gentlemen of the deputation, that he advised them to presentra memorial ; which had been accordingly prepared; but as it could not be read without the danger of rnaking it public, and as it was open to the perusal ofnMembers, it had better not be read Mr. DElWAR approved of the wisdom of Administration in seeking to enfranchise the trade of the country; but the resolution of allowing the bill for the rmutual marine insurance . to pass was in hostility to that determination, because it went to establish more ot' monopoly. He expatiatedI upon the inconveniences in effectingmarin e insuranc'es by large joint stock companies, and theadvaotage of coGm petition anotig the members in the room to tlte mercantile wotld. He argued against the futile pretences ofthosev ho said that it was ditli- cult, expensive, and uncertain to cffect insurances at Lloytl's. They talked of meeting on fair terms; but on the fairest terms upou which they could meet, the subscribers, 1,600 in number, would have to raise 1,s001. each, to form a sufficient capital. He observed upon the great nmnber of persons, 4,0f0 in all, who depended upon the business of the room for the means of support for themselves atid families. He also pointed out the loss wlich Must accrue, first in the way of business, and thment as to the comforts enjoyed by the families of the subscribers themselves, by the divisiou of that busi- ness amonginsurance-offices, which would be spread all over the Idngtlom. He concluded by moving a series of resolutions, pursuant -to the tenour of his speech, which may be seen in the adverusement. Air. CARnRUTl?ERtS and AIr. BRowN severally seconded two of the resolutions with appropriate remarks. The lattergentleman ob- served, that these joint stock companies were any thing but examples of free and open competition; for they all began by requiring their subsctiber: to insure in their own offices. The resolutions were then put, and carried, as were others of acknowledgment for the zealous and able services of the committte, and the excellent conduct of the Chairman on this occasion. The CHtAIRMIAN returned thanks, and adjourned the meeting. LLOYD'S CO FEB-ZIOUSE.