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MARINE VoL. XVII. Contraction of Insuracne Facilities on the Lakes. _ ~Insurance agents will probably be soliciting business within the com- ing week from lake vessel owners, and the subject of insurance is there- fore being discussed just now with more interest than at any time since last spring, when methods adopted by the leading agencies brought them directly in touch with the vessel owner and prompted him to give careful study to this branch of his business. 'It seems to me," said a Cleveland owner, referring to hull insurance, "that as our losses on, the lakes are mainly due to bottom damages resulting from stranding in the rivers and from collisions, there is not the demand here for the kind of close inspection in the construction of vessels that exists with ocean-going craft. Regulations governing river navigation, and safeguards of various kinds relating to: the prevention of collisions, are gradually reducing losses from this source. . We.lost.a couple of steel steamers that were said to be structurally weak, but the lesson taught by these losses was valuable, and it is certain that no lake captain. will ever again be found pushing his ship into a head sea, with her stern deep in the water and nearly half her length forward exposed to the pounding. effect of the bow striking down- ward on big waves. No more. ships will be lost*on,account of this method of making fast trips when running light. Water ballast tanks, both for- ward and aft, will be filled at all times when the weather is such as to" endanger a vessel running light.. It would. seem, therefore, that if we can prove to the underwriters by a summary of previous losses that we are not disposed to load deeper than will be permitted by the stage of water in connecting channels, we will be accomplishing more than is involved in the question of the structural qualities of one steel vessel as against another. I do not mean to overlook entirely the numerous other causes to which losses aré attributed, but I am certainly of the opinion that this question of bottom damages caused by strandings is of most importance." The argument submitted in the foregoing interview was brought to the attention of an insurance agent on the lakes who is in a position to be fully acquainted with the views of underwriters in both this country and England regarding the lake business. "Let us pass over,' he says, "the argument that is made against the need of a classification register showing the relative value of different steel vessels from an insurance - standpoint and turn to the question of premium rates. It will protably be said that at this time of year the vessel owner is always confronted with the old story of higher premiums being demanded, but upon getting ready to place his business he finds that competition brings an actual reduction in rates. This has. been true, especially for two or three years past, but there will be a day of reckoning unless the vessel owner himself assists, not only in encouraging. a proper classification of vessels, but also economical methods in all brariches of the business, and an adjustment of losses fair to the underwriter and owner. We must adopt the best meth- ods that govern marine insurance in other parts of the world, and I have no doubt that the beginning made in this direction last year will be carried out though the honesty of lake vessel owners, and also in view of the fact that they will realize the dangerous lines into which we have been drif.ng regarding insurance assets for hull business on the lakes. "Let us contrast the companies now represented on the lakes for the insurance of hulls with what was available some time ago, and we will find that there is occasion for serious thought regarding the complaint that comes from England about the disastrous results of rate cutting. We will find also that the situation should prompt vessels owners to sup- port every effort that is being made to class vessels so as to properly apportion premiums according to the risk involved, and settle losses with entire fairness to both the insurer and the insured, A few years ago practically all of the great marine insurance corporations of England and America were in active competition for the insurance of hulls. find upon examining old insurance lists such names as the British & Foreign Marine Insurance Co., London Assurance Commercial' Union, Marine Insurance Company of London, Sea _ of: Liverpool, Standard of Liverpool, Reliance of Liverpool, Union Marine of Liverpool, Union of Liverpool, Thames & Mersey of Liverpool, Phcenix of Brooklyn, "Boston Marine' and» Shoe & Leather _of..Boston,. Security of San Francisco, Orient of Hartford, Liberty of New York, Delaware Mutual of Philadelphia, China Mutual of Baltimore, Boylston Insurance Co., Union of Philadelphia, Continental of New York, and severa! others that cannot now be recalled. --All of these large and powerful.corp have withdrawn from, the insurance, of hulls, and the! ioareran éa| their experience has the lake busin unratis to them; They are still in: active competition' for the' marine | instrance 'business of the world and represent the largest and most active ava lable facilities for all kinds of marine insurance. The only real deduction that can be made from their withdrawal was that rates were insufficient, and especially so under past methods of conducting the business. Ccmpla nt was made some time ago on the score that it was impossible to ascertain with any degree of exactness the relative values of ships, because of the absence of proper methods of survey and construction. This argument regarding the difficulty of selecting good risks is being gradually over- come by the societies of inspection and it must be fully set led. Th: question of a sufficient rate must also be considered by the vessel owne's themselves in the light of this loss of available insurance assets. The 'Chicago. syndicate last year had a combination of American' and Eng ish companies that was quite strong, but there were a great many companies in the lake business that are not to be compared with those of a few years ago. Many of them had never been engaged in marine insurance here until last year, and others were small fire companies. It is certainly strange that although the capacity and value of the lake fleet has increased enormously, we should have this decrease in insurance facilities. When vessels were smaller and when the needs for insurance were much smaller is! that' CLEVELAND, Op MANO Ai, ooo We _office at-Sault Ste. Marie says that in January the water was only 3 inches llower.than-in_January, 1897, and in February:only 1, inch lower than) in), , 'February, 1897. At.the Eime-Kilns, Detroit: river, the 'stage' of water 13 New--York;-Anglo-Nevada and Sun of ~~ yrationsysr| been such as to tender the lake business uniatisfactory. ' REVI than they are at present, we had, coming and going, the long list of strong insurance companies to which I have referred' A glance at this _ list will show that at least $100,000,000. of sound insurance assets were available for a small demand, whereas with the increased demand the cor-_ porations represented upon the lakes for the insurance of hulls show a largely diminished aggregation of assets. -- Of Interest in Connection with Freights. -- When the Rockefeller and Carnegie interests were making a settle- ment of lake freights last fall, Mr. F. T. Gates, representing the Rocke- - feller interest, secured from all sales agents of Cleveland who move ore from the head of the lakes--Duluth, Two Harbors and Ashlanda «tats © ment of tonnage and the average lake freight paid in.each case.;. From this summary the average rate on all ore moved from the head of Lake Superior was readily secured. cents. Some of this ore was covered by 70-cent contracts, but a large part of it was moved during summer months 'on: single-trip charters ranging as low as 50 cents. It was this average that prompted the 65- cent rate in contracts for the coming season made by the Carnegie com- pany several days ago. Now there are rumors that a part of the 1898 business closed thus far has been at 60 cents, or a 'rate between that figure and 65 cents. It is also said that the ore shippers have propositions from vessel owners offering to accept ore at 60 cents to Oct. 1. However this may be, it is certain that vessel owners in all parts of the lakes are de- claring very positively that they will take chances on trip-to-trip charters rather than accept less than 65 cents for the full season, and it is the gen- eral opinion, even among the ore shippers, that if the freight question is not hurried by the vessel owners themselves, there will be considerable season ore to be had within the next few weeks at 65 cents. This rate, to say the least, is decidedly fair to the ore shipper, in view of the average on last year's business, when so much ore was moved during summer months at 50 cents. It is fair also from the standpoint that not all of the advance in prices of ore will go to mining labor, and the ore' dealer has just secured another slight advantage in a reduction of rail freights on some of the lines operating between mines and lake ports. Ore is selling very freely. The Illinois, Steel Co. is now closing up arrangements for about 1,500,000 tons of old range. Bessemer ores. which they will require, in addition to about 1,000,000 tons of Mesabi's on which! they have a close alliance with the Minnesota Iron Co. Sales to several large furnace in- terests in the Mahoning valley have also been made within the past few days. Assurance of the formation of an association among pig iron man- ufacturers of the Mahoning valley and Cleveland to regulate output and maintain a minimum price on Bessemer pig--$10 a ton for the present-- is another indication of strength in the iron industry. There has 'been no backward step in the improvement that began some time ago. If 1 ss than 65 cents as a season freight from the head of the lakes is accepted by vessel owners, they will be at fault on their own account, as it would . seem now that there will be enough ore left, after the ship capacity of the ore companies is filled up, to provide for such other vessels as may be available at that rate. A committee of the Lake Carriers' Association has asked managers of ore docks to reduce the unloading charge from 14 to 18 cents, but the chances are against a reduction, as the dock com- panies claim they will have difficulty in keeping labor enough employed at last season's wages. + ga : : Shippers of soft coal are still expecting a strike of miners April 1, not only in the Hocking valley district but also in West Virginia, where labor leaders have been actively at work with the mirers, This r nders the coal situation uncertain at the opening of another season. An effort 'is being made to get vessels to. load before April 1, so as to insure a1 accumulation of coal, but. the rates offered are only 30 cents to Lake Michigan and 25 cents to Lake Superior. This does not warrant shifting of vessels. It is said that a few whalebacks now being loaded are to be paid 30 cents on coal to go to the head of Lake Superior. Letters from Duluth regarding the stage of water report a fall of nearly a foot compared, with last spring, but a telegram from the canal the same.as at this time last year. Advices, from |Ashtabtla practically the e.as at last year. Advices, | Ashta Lake 'Erie ports also repoft about the Same stage of water. ~ and other The Luniber Carriers' Association has published a pamphlet showing, | signatures to their scheme of minimum freights representing vessels of about 62,000 tons in the aggregate, and the executive committee is more | hopeful of success than at any time since the Detroit meeting. ~~ A great deal of fuss is being made in Buffalo about meetings of graia A shovelers' unions and the action of Contractor Kennedy regarding th2 steam shovels. Mr. Kennedy has a lease of most of the steam shovels until April 17 next, as his contracts were made on that date a year ago. He is trying to worry the vessel owners and the new contractor, W. J. Conners, on the strength of the unexpired part of this lease, but it wou'd certainly seem that he is making a mistake if he ever intends to seek business of any kind from vessel owners of the lakes in the future. Mr, Conners' has signed the contract; made up,a few days ago with represen- tatives of the vessel owners, and has pursued a course entirely satisfactory 4 to them since the Detroit meeting. There ate strong men back: of this ' movement-among the vessel owners and they have every confidence. in Mr. Conners' ability to deal with the elevator managers and with the labor question. The vessel owners pay for the shoveling; they have the busi- ness, and they will be found supporting to the end the agreement that was made at Detroit with Mr. Conners, unless he makes some serious mistake, which he has not done as yet. ~*~ No. five It was found to be within a fraction: of 64... Sn iat an a ns i a id 5