Year: 1871




gold in London.


AIimprovements in the construction Of vessels
and in the manner of shipping cargOes tend to
decrease the rate of insurance; the condition Of
The cargo at the shipping point and probable
condition on arrival also influence the rate. Thus
grain in bulk rates more than grain in bags, the
former being liable to become overheated, TO
shift. and thus endanger the safety Of the ship.
to clog the pumps and render them useless.
Several Of the New York companies refuse to
write grain risks ut any rate. Petroleum. crude
or refined. in whatever manner put up, is declined
by many companies. The best cargo, and "a
vorite with the leading companies, is cotton 10
bales. 1t is light; the ships make shorter voy-
ages with it than with ary other cargo; its only
danger is fron spontaneous combustion, EDd that
small, while in case Of wreck or stranding the
cotton is still valuable. No matter how thor
ouqhy soaked or torn, it will realize salvage.
Indeed, two years after the wreck Of the steam
ship Scotia, off Sandy Hook, cotton was raised
from the wreck and sold.


If the insured ship is damaged by storm or
accident during the voyage, and puts into port
for repairs 10 order to proceed the bill for repairs
becomes the subject of a general average, in
which all the insured contribute their pro rGtG
share of the amount. But the damage must
reach five per cent of the value Of the vessel, or
the claim ceases. So with reference to the risk
on the cargo. the damage must amount to FIVE
per cent on the total invoice, or there can be no
claim made, unless expressly stated in the policy.


There is popularity in the insurance Of dry
goods in cases, well known in that trade, viz,
the insuring Of each separate case Of goods /;
then, if any of the cases are damaged over FIVE
per cent. Of the value of its contents; the claim
holds. Some two or three Of the largest i'm
porters of dry goods do not insure at ALL They
base their action on the theory that if one or two
cargoes are totally lost during the year, the
amount of loss would not reach the aggregate
amount of premiums paid in the year if all their
imports were insured None but merchants do
ing very large business can operate in that
manner without great danger.


With all classes of men who insure, the prompt
payment of losses by insurers is a matter Of deep
INTEREST," bBt Tulco VI iuouiaAACo
have been made plain, simple and directly to the
point. The companies scan closely every risk
offered, and refuse those by men in whom they
have no confidence When losses occur. they
are carefully prudently Investigated, and if just,
are promptly paid. If suspicious, they are turned
over to the courts, on the ground that every
fraudulent claim if allowed, would not only injure
the capital Of the company, but also take away
from the fund contributed by honest traders.
The fraudulent claims are, however, very few.


One of the most interesting features of marine
insurance is the system of "open policies" A
merchant desires to purchase goods abroad, and
send in one or more shipments to this port. The
company open for him policy of say sl50,0OO
for year, the merchant giving his note for the
premium. The goods, say $4,000, are shipped
from Calcutta. and are on the passage before the
the bills Of ading or invoices reach here. The
policy covers them, even should the goods be lost
before the bills of ading arrive. At the end Of
the year the policy is closed, and if the risks OF
SI5OOOO worth of shipments have not been
written on it, the note being paid, the company
returns the unearned premium.


Another use is made of open policies. A
merchant in good standing. going abroad, desires
to buy goods himself and send home he has
policy opened, and obtains from the company
certificate of insurance. He then visits his
bankers, and on that certificate of insurance pro-
cures letter of credit to the port from which he
intends shipping. The goods having been ship
ped, they are covered by the open policy, the
loss, if any, being payable to the banker, who is
thus protected.


As an instance of the enormous amount Of
business done in New York city alone, it may be
stated that for three successive years one of the
New York companies divided more money from
profits among its stockholders than the largest
company in England received for premiums
during those years.