The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

76 premiums make restitution for losses, any action which would di- minish the amount of losses would ultimately reduce the rate of pre- mium, and that united movement, with this end in view, should be undertaken. An advisory committee was elect- ed and a tentative plan embodying a system of inter-insurance was pre- sented, which after a full and free discussion was adopted subject to certain decisions referred to the advisory committee for their con- sideration, So favorably was this plan re- ceived by those present at the con- erence that at the .conclusion of the meeting vessel tonnage to the valuation of approximately $60,000,- 000 was enrolled for insurance un- der this co-operative plan. It was afterwards increased until practical- ly all of the coarse freight tonnage on the great lakes was enrolled in the association to a value approxi- mating $80,000,000. At a meeting of the leading Am- erican underwriters in New York, where the matter was explained, your committee was assured of 'their hearty active co-operation and were further promised that they would use all their influence in Engiand and believed that the for- eign underwriters would take the same view and interest. 'Your committee was informed by the un- derwriters that there had been talk of increasing the rates because al- though the rates had been so high the losses have 'been so great that even with these high rates the busi- ness did not pay. They highly recommended this plan, promising to co-operate with it, and expressed the belief that it was the first plan that promised relief, and that the owners, masters, and underwriters co-operating along these conservat- ive lines without anything radical being attempted it could not fail in their judgment to work a large reduction in losses and so a large reduction in insurance rates. There is no question that to the efforts of these gentlemen with the foreign underwriters is due the fact that the rates for straight hull insurance were not advanced from 5 to 6 per cent for the season of 1909. The plan was subsequently pre- sented at a meeting of the masters in Cleveland and upon their under- standing of the arrangement there was nothing but expression of hearty approval of the plan by the masters. The manner in which this plan has been received by all interests has been a source of much gratifi- cation to your committee and from evidence it appears that a way has been found to better conditions, re- duce losses and work the greatest economy in operation of our ships of any single movement that has ever been attempted in the busi- ness. The experience your com- mittee obtained during the past sea- son has been of incalculable bene- fit to them and although there re- mains much still to be accomplish- ed there is no question in our minds that continued effort along the lines we have been pursuing The Marine REVIEW will eventually accomplish the re- sults which the association was es- tablished for. : At a meeting of the advisory committee held Feb. 1 and 2, 1909, it was decided that this association would assume 5 per cent of the in- surance valuation of the vessels in- terested in the membership of the association, which percentage 1t was considered would be sufficient 'to enable the association to establish such regulation and supervision of navigation as would tend to reduce losses and to secure all the neces- sary data upon which to base a knowledge of the cost of insurance. An attorney-in-fact was elected at this meeting. Copies of the adopt- ed plan together with power of at- torney were prepared and district- ed to vessel owners for execution. Sub-committee was appointed to undertake the drafting of rules for the regulation of navigation and at a subsequent meeting of the advis- ory committee (Feb. 15), the rules proposed by this sub-committee were approved and adopted. These rules were printed in vest pocket form and also upon large placards for posting upon the vessels of the association. The approval and co-operation of the Lake Carriers' Association in the enforcement of these rules was solicited and on Feb. 19, President William Livingstone. of that asso- ciation, appointed the following com- mittee to act in conjunction with the advisory committee of our as- sociation: H. Coulby, Capt. John Mitchell, Capt. D. Sullivan, Capt. W. C. Richardson, E. T. Douglass and William Livingstone. The membership, tonnage and valua- tion of the Great Lakes Protective Association is as follows: Grace Tons. 336 Iron, composite and _ steel StGamMens: (ui. cys peo ne cise ave 1,445.504.99 9 Steel: Bancese i. ts wile cece o crete 24,920.90 Go WoedBaroes. eee. cae os 12,837.00 TOOWiood St6amers 4s). oe uae eens 34,763.00 BOP NESSOIS: . Gib oe e sis viv ote iw wate 1,518 025.89 1 Wood barge not covered by OUR: POMC. ees eas cee oe 2,073.00 3 Wood steamers not covered Dy Out. Poly. ccs ce) 6,152.00 SAA NESSOIS scsi ecu scys gccrsie' «site ets 1,526,250.89 Total insurance on 370 vessels eoveted: by our policies... cc... $79,049,780.00 Great Lakes Protective Associa- tion insurance on these 370 vessels.$ .3,952,482.00 Total toniage of 370 vessels covered by our policiess. 10. .... 1,518,025.89 Tonnage of three vessels, total loss: OW te ye evalu 2,431 PAC OT et ceed g ce eeere ated 865 NOMIC ire vials Viele eee sce 1,847 ee 5,143.00 Total tonnage of 367 ves- sels now cevered by G. L. mAs policies' (24. es oo. 1,512,882.89 Number of vessels covered by insurance.. 367 Number of vessels in associate membership 72 OMAN een eho Ce ee oe ok ck A, A. Wright, president of the Dominion Marine Association, in dis- cussing the subject said that insurance | rates could only be brought down by the united action of vessel owners. The present rate to Lake Ontario is 6 per cent and to Montreal 7 per cent. He added that two-thirds of the February, 1919 premiums paid on the insurance on these ships has remained in the Pock- ets of the underwriters, Incidentally he complained of the too sudden flooding of the Canadian lock at the Sault, saying that the valves are too large and that masters had difficulty in controlling their vessels. This com. plant was something of a surprise, Chairman Ashley saying that he never heard anything of it. Capt. D. Sullivan of Chicago saiq that from 60 to 70 per cent of the. claims are for partial losses which are of an avoidable character. He stated that partial losses have been reduced about 40 per cent during the year, but were overbalanced by heavy total losses. The membership of the Advisory Committee was increased from seven to eleven and now stands as follows: J. S. Ashley, chairman, D. Sullivan, J. H, Sheadle, H.. 5. Wilkinson, Coulby, W. C. Richardson, William Livingstone, W. -H. Becker, -¢ 7 Hutchinson, $. P. Shane and Francis King. W.. M. Mills. of - North You. wanda thought that there should be classification of steel tonnage on the lakes, saying for instance that double- sided boats should have a lower pre- mium than single-sided boats. Mr. Ashley replied that he thought that would be a pretty big problem for the association to tackle in its in- cipient stage, though he believed it to be desirable. A vote of thanks was tendered to Mr. Ashley for his efforts in behalf of the association. In fact it is gener- ally understood in the trade that Mr. Ashley practically devoted one-half of his time during the whole year to the affairs of this association and it was decided that du.ing 1910 he should receive compensation for his services. President Livingstone of the Lake Carriers' Association addressed the members on the necessity of additional lockage facilities at the Sault and especially urged the Canadian members to begin at once an agitation for a second lock on the Canadian side of St. Mary's river. Lake Carriers' Association. The annual meeting of the Lake Carriers' Association was held at the Cadillac Hotel on Thursday, Jan. 20, President William Livingstone in the chair. The entire forenoon was taken up in the reading of Mr. Livingstone's annual report, in which the work of the year was comprehensively fre- viewed. President Livingstone an- nounced that a commission of govern- ment engineers had recommended the widening of the Livingstone channel