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1903.] MARINE REVIEW AND MARINE RECORD. 4 25 tion of corporation officers and directors and the adherence to the safest and most scientific principles of insurance under- writing. Rarely, if ever, does a company carry the entire amount of insurance written on any one risk. German underwriters believe that the highest degree of safety lies in diversity of risk and limited insurance. 'This belief has given rise to the famous system of syndicate underwriting whereby companies form, themselves into groups for the purpose of mutual insurance and protection. These groups consist usually of five or seven com- panies and commonly such groups will again co-operate with other groups similarly constituted, with the result that often as many as fifteen or twenty companies. will underwrite one risk. The great advantage of this method to an insurer is apparent and the method illustrates the proverbial caution of the German in the conduct of commercial enterprises. The government examinations are made semi-annually, some- what after the manner in which the United States government examines national banks. 'The German examiners, however, possess more extensive powers than are conferred on the bank examiners in the United States and may proceed to more arbi- trary and drastic measures should the results of the examination disclose any discrepancy between the company's statement to the government and its condition at the time of examination and should the interest of the policy holders be found in jeopardy. 'There is probably no country in the world where the government has thrown such a rampart of protection around the insuring public as has Germany, and it seems difficult to con- ceive how any combination of circumstances could arise which would hinder, even temporarily, a German insurance company from meeting all its policy obligations in full on demand. "As I said in the beginning, no German insurance company has ever failed and it is a safe guess that none will while the empire lasts." ADVANTAGES OF THE BARGE CANAL. In a pamphlet issued by the Canal Association of Greater New York a vast amount of information is given concerning what canals really mean to New York state. 'The effect on gen- eral commerce of the decline in amount of tonnage passing through the s.rie canal is made plain and a long list of business reasons for canal improvement advanced. Senator Depew is given as authority for the statement that railroads do not oppose canals, as they prove so great a lodestone for commerce that they add to the business of the railroads instead of decreasing it. All these facts are grouped about the movement represented by the bill known as the 1,000-ton barge canal measure now be- fore the legislature. 'The statements are made in the form, of questions and answers, among them being the following: Why, with the advantage of the Erie canal, has New York begun to lose its relative advantage and place in certain lines of business? This is due simply to the decline of commerce on the Erie canal, and this decline is due to the decay in the physi- cal condition of the canal and to the antiquated methods of trans- portation employed thereon. Its efficiency and relative useful- ness have thus gradually declined, and have shrunken into in- significance in comparison with other means of transportation. « How do average rates on the New York canals compare with railroad rates? 'The average rates on the New York canals have declined fromi 6.5 mills per ton per mile in 1865 to 1.9 mills per ton per mile, the present average being about one-half of the average rate by any railroad, and one-third of the average rate by most roads. What will be the result if New York state fails to improve the Erie canal system? Canada by building the Georgian bay canal, at a cost between $70,000,000 and $80,000,000, will cause the diversion of a large part of American trade, which natur- ally would seek an outlet by way of Buffalo, the Erie canal and New York city. Canadians calculate on a tonnage of about 8,000,000, and a strong sentiment favors building the canal, which will have a length of 430 miles, a service width of 188 ft., a bottom width of 100 ft., and a depth of 20 ft. While the British possessions of North America are equal in area to those of the United States, the entire wealth and population of the dominion are much less than those of New York state alone, so much so, . that relatively New York state is four times better able finan- cially to rebuild. the Erie canal than the dominion is to build the Georgian bay. canal. " ae Why is a ship-canal not feasible? Because of its prohibitive cost. For this reason it is improbable that the national govern- 'ment will ever undertake such a project. Even if one were con- structed it could not be used by ocean-going steamers. The "types of the vessels used for ocean and lake transportation are 'radically different, and in the opinion of the ship builders it -would be impossible to combine the type in one vessel that would -be economical for the-trip through the three kinds of naviga- tion required--lake, canal and ocean. : Why is a 1,000-ton barge canal the most practical? Because all the supply of water that can safely be calculated upon under this estimate would be utilized by the 1,000-ton barge canal. Will transportation by a 1,000-ton barge canal lower the freight rates per ton per mile? Yes; the rate will be .52 mill per ton per mile. : : Will the railroads be able to compete with this rate on heavy freights? No; the New York state canal committee, after a careful inquiry of this matter, state that there is no probability of the railroads being able to carry freight at 1 mill per ton per mile. Will transportation by 1,000-ton barge canal be the means of abolishing the differentials in railroad freights and stop dive: - sion of commerce from the state and city of New York? Yes. What is the saving in cost to shippers by the 1,000-ton barge canal over the present 240-ton canal? The saving is about two- thirds, or the difference between 1.75 -mills per ton per mile by the present canal, as against .52 mill per ton per mile by the 1,000-ton canal. How long would it be before the direct saving to the people . in the reduction of canal and rail rates would offset the cost of construction? It has been expertly estimated 'that the reduction would return the entire cost, $100,500,000, in less than ten years. How do the returns compare with the outlay? "Down to the close of the year 1882, at which time the tolls were abolished, tne revenues collected on the Erie canal exceeded all sums paid out upon it for any purpose whatsoever by the sum uf $42,599,718. This profit has been reduced in subsequent years by the expen- ses for ordinary and extraordinary repairs, maintenance of op- eration, and for enlargement under the nine million dollar act, and against this outgo for expenses there has been no income from tolls, so that the net balance to the credit of the Erie canal is now a little more than $20,000,444. It is important that this fact should always be borne in mind, that the Erie canal has paid into the state more money by many millions of dollars than has been spent upon it in the aggregate for any and all purposes whatsoever. Were this*not the fa:t we should not advise its enlargement." (Report of committee on canals, 1899.) TO ESTABLISH MAGNETIC RANGES, Some time since Capt. George P. McKay, chairman of the committee on aids to navigation of the Lake Carriers' Associa- tion, appealed to the navy department through the hydrographic office, for a set of magnetic ranges, suggesting that one be located in the Straits of Mackinaw and the other in St. Mary's river. Mr. Charles H. Darling, acting secretary of the navy, has now written to him that the chief of the bureau of equip- ment has recommended the establishment of the ranges and that the department has approved the récommendation. The report of the bureau is as follows: "The bureau approves the proposition to establish magnetic ranges at convenient points on the great lakes. Undoubtedly such ranges would be of great convenience and assistance to vessels engaged in lake traffic. It is recommended that when navigation opens in the spring the commanding officer of the U. S. S. Michigan be directed to confer with the chairman of the committee on aids to navigation of the Lake Carriers' Asso- ciation, select the most convenient points for the establishment of magnetic ranges and submit for the consideration of the de- partment a complete plan of the location selected, character of marks to be erected, and an estimate of cost of the necessary survey and completed range marks. The cost of survey and range marks, when authorized, to be paid from the appropria- tion for ocean and lake surveys." NOT AN ENCOURAGING OUTLOOK. Viewing the coming opening of navigation from a head-of- the-lakes standpoint, G. A 'Tomlinson, vessel agent of Duluth, says: " Grain in store in local warehouses aggregate 12,000,000 bu. One year ago the local elevators contained 17,000,000 bu. One half of the grain in store is wheat. How much of this grain will go forward at the opening is difficult to forecast. 'here is less than 750,000 bu. under charter and these engagements were made last December. It is simply imipossible to sell wheat and the outlook is not encouraging. Some flax will move at the opening but no bookings have been made. Some chartering has been done at Fort William at 214 cents. : -\yveather conditions are about on a parity with one year ago. There is, probably, a little more ice in the harbor--about thirty inches--but it is badly shoneycombed. Outside the har- bor there is some floating ice. Vessels will doubtless be moving about the harbor between the first and the fifth of April." A Chicago dispatch announces the organization of the Chi- cago & Great Lakes Dredge & Dock Co., by the consolidation of the Lyden & Drews Co. of Chicago and the Hausler & Lutz Dredging & Dock Co. of South Chicago. The new company will have eleven tugs, a like number of dredges, a fleet of seventy scows and twenty pile drivers. It is said that contracts will at once be closed for a steel hydraulic dredge and a dipper dredge, both of which will exceed in capacity anything now in service on the lakes. W. A. Lyden will be president and T. C. Lutz vice-president of the new company. Both of the concerns going into the consolidation have long been engaged in government and private work. Canal officials of Canada are planning for the opening of the Welland canal about April 10, which is fully ten days earlier than usual.