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May, 1924 Two Firms Unite to}Take Marine and Fire Risks S OF Dec. 31, 1923, the business of the United States Lloyds, Inc., a New York corporation which began business in 1872 as a Lloyds organization and operated as_ such until 1918 when it changed to a stock company, and the Merchants and Shippers Insurance. Co., New York, which company was established under the laws of New York state in 1919, were consolidated. The paid-in capital of the new organization is $1,000,000, and the surplus $1,116,585. The total admitted assets of the combined. or- ganizations as of Dec. 31, 1923, was $4,447,787. The president of the new company is Douglas F. Cox, its vice presidents William B. Goodwin, Oscar W. Smith, J. Floyd Johnston, and Samuel i, Martin. The secretary and _ treasurer is C. J. Ziegler; the assistant secre- taries are Mason H. Bigelow, E. W. Murray, and Harry L. Rodgers. The kinds of insurance written by the new company are fire, ocean marine motor vehicle, inland navigation and tornado insurance. The underwriting of the marine insurance business is in the hands of Appleton & Cox, a large and reputable firm of marine under- writers.. : The underwriting of the fire business will be conducted by the firm of Crum and Forster who have been in busi- ness for more than 35 years and enjoy an enviable reputation in in- surance and financial circles. Vaan aoe Norwegian Market Has Grown Rapidly ORWAY, during the war period, suffered heavy losses of tonnage. These amounted to more than 45 per cent, practically half of the Norwe- gian ships being destroyed. At the close of 1918, this loss was greatly minimized and was reduced to the low figure of 20 per cent, due to a shipbuilding campaign, which in- creased the tonnage by 10 to 15 per cent per annum as compared with a normal increase of 5 per cent. At the present time, Norway owns about 4 per cent of the world’s entire tonnage of steam and motor driven vessels. Hull insurance formerly was very good, until the discontinuation of the obligatory tariffs, and the resulting rate war. In 1920, 1921 and 1922 inclusive, the threat of compulsory state in- surance did much toward reducing the interests of the underwriters in acquiring a good business, but this project was recently dropped. This MARINE REVIEW has already helped greatly to improve the business, so that already for 1923 an even break of premiums, expenses and losses is anticipated. The business of cargo insurance has shown up favorably, particularly so as compared with hull insurance. The competition in cargo business can hard- ly be compared with that in the hull insurance business, One reason for this is found in the fact that the hull fleets are owned mostly by individual ship operators, promising large pre- miums, which attract quotations from foreign companies. Another reason is that many Norwegian steamers are operated as tramp steamers and cargoes bound out of Norway are. in- sured in Norway only. Likewise, ex- ports from Norway, such as dried fish, wood pulp, etc., are not so sub- ject to partial losses and pilferage as are the more general cargoes. Norway, in 1913 had seventeen do- -mestic companies, with a total capital of approximately 25,000,000 kroner. In 1920 the number of companies had increased to 89 with a total capital of approximately 160,000,000 kroner. ' In 1922 and 1923, no new organiza- tions were formed in the marine field, but there were 10 withdrawals, with one company suspending its op- erations in order to balance its busi- ness, which probably forecasts liquida- tion. In addition more than 40 foreign companies operate in Norway. ee Be | Cotton Clauses Changed in London Policies MENDMENTS tto the clauses of the Institute of London Under- writers have recently been received by marine underwriters in this country who have London connections. Among such amendents were the standard T. L. O. clause on: hulls; and the Alexan- dria cotton tariff clauses. The Alexan- dria cotton tariff clauses which are par- ticularly interesting to insurers of this commodity in’ this country, read as follows: 1—To pay particular average if amounting to 3 per cent on each bale as if separately insured or on the whole and to pay the actual loss on pickings without reference to series, and to pay the cost of making bales merchantable. 2—Including risk at port of dis- charge until delivered into warehouse or to carriers or by rail, land con- veyances or canal to mills at port of discharge or in the interior, but risk under this policy ceases ‘ten days after discharge from ocean steamer or held covered. . 3It is warranted and agreed by the assured that any shore risk against 187 fire granted herein shall not cover where the assured or any carrier or other bailee has fire insurances which would attach if this policy had not been issued. 4—Warranted by the assured free from any liability for merchandise in the possession of any carrier or other bailee who may be liable for any loss or damage thereto and for merchan- dise shipped under a bill of lading. containing a stipulation that the carrier may have the benefit of any insurance thereon, and that any insurance grant- ed herein shall not cover where any carrier or other bailee has insurance (whether prior or subsequent in date to this policy) which would attach if this policy had not been issued, and that. any insurance against fire granted herein shall not cover where the assured has fire insurance (whether prior or subsequent in date to this policy) which would attach if this policy had not been issued. From the above clauses it will be noted that the risk of country damage is included, which is seldom covered by American underwriters. The risk is also optional with the English under- writer but ‘the coverage is generally granted. In this market the usual coverage is “three per cent average each _ bale,” plus the risk of fire after discharge and “while awaiting and during the process of fumigation, the insurer to be free from any loss, or expense, due: to the actual process of fumigating.” Drydock Engineers Form New Company Organization of a new firm of con- sulting engineers was completed on April 1 when C. A. G. Armstrong and Gunnar C. Engstrand, who for quite a number of years have been associated with William T. Donnelly, 17- Battery place, New’ York, opened offices under the firm name of Arm- strong & Engstrand at 26 Water street, New York. Mr. Armstrong has made a specialty in recent years of drydock construc- tion, maintenance and operation, while Mr. Engstrand has specialized in en- gineering design covering drydocks as well as all other forms of marine prop- erty. The new firm is the sole rep- resentative of the Wheeler Salvage Co. and will also act as marine sales representative of the Arnesto Paint Co. The firm. proposes to do a general engineering business as well as_ to specialize in the development of pat- ents and attend to all engineering de- tails in connection with new inven- tions.