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july, I9Z2 States Lloyds, Indemnity Mutual Mar- ine, Royal Exchange, Tokio Fire and Marine, United States Fire, Agricultural Fire, Fire Association, Milwaukee Me- chanics and London & Scottish. Douglas F. Cox is president of the company and will remain at the head of its affairs. eee ee Discusses Blame for Loss ENJAMIN RUSH, president of the Insurance Co. of North America, one of the largest and most active com- panies in the ocean marine insurance field, was a_ speaker before the National Foreign Trade council convention in Philadelphia. Mr. Rush discussed the un- derwriters view of responsibility for loss and urged that the Hague rules be amended to change the present situation under which the shipowner is practically relieved of liability for loss. Present conditions, he declared, must be improved and a change will be to the advantage in the end to the ultimate consumer, insurer and shipper. Mr. Rush traced the development of marine insurance from the days of the pirate and raider and said that originally the ship owner was held responsible for all loss or dam- age regardless of whether it was due to personal negligence or natural peril. He said that while he did not believe that a vessel should be responsible for damage due to an unpreventable cause, the ship should be held accountable for damage caused by the fault of the ship- owner. Mr. Rush decried the fact that the development of the insurance policy has been toward the complete exemption of responsibility of the owner with the result that marine offices have been flooded with claims. The changing of the rule to the now general exemption was a slow process, he said, but has now developed so that there is practi- cally no means of holding the shipowner. ie ae. Protest Philippine Way ARINE insurance underwriters have protested to Gen. Leonard Wood, governor of the Philippine Islands, be- cause of the obselete practices being used by custom house authorities there. General Wood has promised to have the complaints of the underwriters in- vestigated. Underwriters are opposed to the system in the Philippines under which the custom officials give no re- ceipts for the acceptance of consignments arriving atthe islands. Asno receipt is given showing whether cargoes were received either in perfect condition or damaged, it is not possible to determine if loss occurred before the goods were received by the customs or while in their hands. As the customs house can- not be held liable for damage sustained while merchandise is in its custody, and as there is no means of ascertaining the MARINE REVIEW loss until the cargo is received by the consignee there is no way of telling whether loss was caused by employes of the customs house or by employes of the carrier. The possibility of placing the responsibility of loss is of the utmost importance to underwriters as rates are frequently based upon the possibility of recovering payments to the assured through the process of subrogation. x ok Ok Hague Rules Discussed HE Hague rules, which have found a large number of proponents among marine insurance underwriters, received several jolts in May at meetings of the Chamber of Commerce of the United States, the Foreign Trade council and the National Association of Manufac- turers. The attitude that prevailed was that the rules should be given a chance but should not be endorsed until they have been fully tried out. At the meeting of the chamber, a resolution of unqualified endorsement was voted down. The in- surance advisory committee referred a resolution to the board of directors, recommending that no endorsement be given until the situation has had further study and this stand was sustained at the meeting of the insurance group. ie SR Abandons Pacific Coast RESIDENT Samuel Bird of Talbot, Bird & Co, New York, who re- turned recently from a business trip to the Pacific coast, has announced that the Franklin Insurance Co. of Philadel- phia, which has been operating on the Pacific coast through the office of Math- ews & Livingston, had retired temporarily from the’ marine insurance field on the coast. Mr. Bird would not give any reason for withdrawing the company ex- cept that it was “for the best interests of all concerned.” Mr. Bird found con- ditions better on the coast than in the East, because, he said, on the Pacific coast the market is different from the East in that the market is more limited. There merchants and shippers are satis- fied because they are receiving the same level of rates while in the East there are constant changes and competition is a great deal more keen. — ae Ger ES Se Examine American Branch HE Texas insurance department has just completed an examination of the United States branch of the Center of Owners Insurers of Barcelona which is located at Galveston, Tex. The Ameri- can branch began writing business in 1920 and was organized to provide in- surance on cotton exports. The state department’s report shows that premiums written last year amounted to $13,800 while disbursements were $25,787. The 2i7/ policies issued for the most part covered cotton shipments from Galveston to Barcelona, Spain. ae eae Drafts Building Rules HE American Bureau of Shipping is preparing a set of rules govern- ing the construction of river, harbor and canal craft with a view to taking up the classification of the same, says the Bul- letin, which states that a number of types of vessels already have been classified and will be found advantageous to owners in arranging the insurance on hulls and cargoes. The bureau is giv- ing serious consideration to the classifica- tion of modern steel self-propelled barges and tow barges used on the New York state barge canal. x * * Ship Rate War Confusing HIE’ rate war between the Lamport & Holt line and the Munson Steam- ship Co. has been watched by marine un- derwriters. who are wondering just how it will affect them. They feel that while they are hampered by many of the same obstacles as the American mer- chant marine, the government, instead of aiding them in the case of the Mun- son line, is demanding lower rates. Since the National Coffee Roasters association has answered the appeal of the govern- ment to ship their goods in American | vessels, underwriters expect that they will be urged to reduce their rates to meet the rates charged on vessels of British lines irrespective of the actual condition of the vessels involved. The marine underwriter feels that not only is he facing severe foreign competition but is being appealed to at home on the ground of patriotism to insure cargoes’ carried on American vessels at a ‘loss. Is Held for Contraband Upon learning that the shipping board steamer SEATTLE Spirit was held by the British for transporting munitions to Ire- land, Chairman Lasker of the shipping board, immediately instituted an investi- gation and learned that the shippers were the Manhattan Oleo agency, and_ that the shipment was made through the Barr Shipping Co., brokers. The goods were billed as 40 barrels of lard and were ship- ped to the order of the shippers, the ship- ment going forward to Ireland on May 17. Investigation developed that the goods turned out to be 40 barrels of munitions. Chairman Lasker is await- ing an additional report from Moore & McCormack, agents of the shipping board who handled the transaction, and as soon as their report is received all the ‘documents in the case will be turned over to the department of justice for action.