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Discussing Ocean and Inland Marine Insurance ORLD trade in 1930 was handled on ocean _ trade routes at a cost of approxi- mately $1,200,000,000. Prémiums for marine insurance entering into this figure contribute no small part of this huge bill,’’ stated Alan M. Mac- Intire, assistant treasurer of the United Fruit Co., in opening his dis- cussion of marine insurance at the insurance conference of the Ameri- man Management association in Chi- cago, April 27. Marine insurance is usually consid- ered as describing that form of in- demnity covering in those cases where the property insured is transported by water at some time during the course of transit. It applies on all-water shipments but in addition to these a marine form of policy is used to cover in many instances where no wa- ter transportation is intended. A ma- rine insurance charter in this coun- try permits the issue of policies for fire insurance, shipbuilder’s risks, tourist baggage floaters, inland trans- portation, parcel post and registered mail insurance and all types of auto- mobile coverage with the exception of liability. Mr. MacIntire confined his discus- sion almost entirely to the insurance of merchandise. “The open cargo pol- icy is available to any merchant who makes many shipments in the course of the year,” said the speaker in de- scribing the types of policies used. “All goods intended for shipment are automatically covered. He is required to report each movement but his fail- ure to so report before the merchan- dise is actually in transit does not in- validate his policy if the form is cor- rectly written. Such contracts, whether written for the merchant or for the carrier, attach and cover the goods for the entire period they may be at risk by vessels and connecting con- veyances by land and water and cov- er continuously until safe delivery to the store or warehouse of the con- signee at port or place of final des- tination. They also cover during in- land transportation and while await- ing shipment, transhipment, reship- ment and delivery, including risks while on docks, wharves, or in light- ers, and in appraisers’ stores and cus- tom houses for examination.”’ The payment of additional prem- iums to provide coverage for risks other than the perils of the sea was also given considerable attention. Clauses covering theft, pilferage, breakage, leakage, world-wide war risks, strikes, riots and the return shipment of undeliverable goods were described and instances where they had prevented loss to the shipper were cited. The applicatioin of marine insur- ance to include risks arising from the use of inland waterways, railroads, motor vehicles and aircraft carriers was also covered by Mr. MaclIntire. Inland marine insurance was di- vided into two classes by the speak- er: commercial coverages and per- sonal coverages and various types of policies falling in the first group were discussed at length. “In point of general interest I think the merchandise transporta- tion floater takes first place,’’ said Mr. MacIntire. “Shippers lose thou- sands of dollars annually on goods handled by carriers, whose liability is limited and based on negligence. The burden of proof of negligence is placed on the shipper. Furthermore, the value of one load of merchandise very often exceeds the value of the conveyance, which, in the case of mo- tor trucks, may represent the entire assets of the truckman. A transpor- tation policy can be so written as to provide complete protection. This protection is in effect from the time the goods are shipped from the own- er’s premises until they are delivered to the consignee while in the custody of common carriers in course of tran- sit. These common carriers may be railroads, express companies, public truckmen and transfer companies as well as coastwise and inland steam- ship lines.”’ Parcel post policies and registered mail insurance were described briefly and then Mr. MacIntire passed on to salesmen’s floater policies. ‘‘These policies,’ he added, ‘are drawn up to cover samples of merchandise in- cluding the trunk, bag or other con- tainer while in the custody of the as- sured or his representatives and while en route by railway express to and from the salesmen wherever they may be located in the United States and Canada. These territorial limits may be extended by agreement. The prop- erty is also insured while in custody of any railroad, railway express, transfer and/or transportation com- pany, and/or any steamship, and in automobiles of the assured or their salesmen, and/or while in any hotel, dwelling and/or business building, except on premises of the assured or at those locations where the assured’s salesmen may have permanent offices or salesrooms and also where specific insurance is carried. Several differ- ent forms are available to meet indi- vidual requirements.” In closing Mr. MacIntire pointed MARINE REVIEw—June, 1931 out the importance of selecting relia- ble carriers as a means of securing low rates. ‘‘The cost of your marine insurance depends on the judgment rating of your underwriters. The loss record, responsibility, personnel and degree of care exercised in the han- dling of cargo by the carrier has a direct bearing on this cost. Low rates go hand in hand with low losses—if you specify a transportation company with a‘reputation for careful han- dling you will benefit. One Amer- ican steamship company in 1930 han- dled some 28,000,000 packages of cargo with damages of less than 1 per cent of the freight revenue.” Standing Committee Holds Its First Meeting The national standing committee on the merchant marine, appointed by Chairman: To: V.- O'Connor: of the United States shipping board under authority granted last January by the fourth national shipping confer- ence, held its first meeting in Wash- ington on April 24. The meeting was devoted exclusively to organization and methods of procedure. Mr. O’- Connor was unanimously elected per- manent chairman, and the following sub-committees were appointed: Methods of increasing patronage for American ships: H, B. Walker, chairman, Malcolm M. Stewart, J. C. Rohlfs. Adequate mail pay for high speed ships: Ernest Lee Jahncke, chair- man, H. G. Smith, H. B. Walker. Government aid to ships not bene- fited by mail contracts: J. C. Rohlfs, chairman, J. T. Lykes, H. B. Walker, Malcolm M. Stewart. Foreign competition in indirect trade: H. B. Walker, chairman, Mal- colm M. Stewart, Robert C. Tuttle, J.C; FORTS: Safety of marine workers: Robert C. Tuttle, chairman, George A. Marr, J.T; Liykes. ' Panama canal tolls and measure- ment: J. T. Lykes, chairman, J. C. Rohlfs, H. B. Walker. Safety of life at sea: T. V. O’Con- nor, chairman, H. B. Walker, H. G. Smith. Proposals of railroads for owner ship of water carriers and regulation by the interstate commerce commis- H. B. Walker, chairman, J. C. sion: Rohlfs, Malcolm M. Stewart, George A. Marr. . Construction of naval vessels in private American yards: H. G. Smith, chairman, T. V. O’Connor, J.C. Rohlfs. Cost differential in the operation of United States vs. foreign ships: H. G. Smith, chairman, T. V. O’Connor, H. B. Walker, Robert C. Tuttle, J. C. Rohlfs. The above sub-committees were au- thorized to obtain information. 39