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THE MARINE RECORD. NOVEMBER I, 1900, ST. LAWRENCE INSURANCE RATES. Much has been said and written upon the question of British North American insurance rates, and it has been held that underwriters at home have penalized the trade with St. Lawrence ports to a degree altogether out of proportion to the risks involved. That such contention has its founda- tion in fact is undoubtedly true, notwithstanding all the arguments to the contrary; but whether the case has not been unduly magnified is controversial, it being strongly averred by underwriters that the rates charged only represent a pay- ing premium for the trade and the class of steamer engaged init. It is well known that some lines obtain cover at far more reasonable rates than others engaged in the same trade, and, as underwriters do not run their business on partisan lines, or accept risks for the pleasure it may give them of conferring favors, though they may be willing and ready to oblige a broker friend by initiating his “slip”? at current rates, it is evident that there is a reason for this apparent favoritism in the Canadian marine insurance rates. The matter, therefore, assumes the form of a problem in which some tangible factors are given, others being confidently assumed in order to arrive at a satisfactory solution. As underwriters base premiums upon averages, and carry the principle out in its completest form, it would appear as if they were justified in assessing whatever rate they levied in respect of any particular trade in which a sufficiently wide experience had been gained. And it may be taken for granted that this is the case in all well-known trades. Even underwriters have a tide of competition to meet which out- siders-and insurers generally do not understand. This is proved by the futile attempts which have been made to fix premiums at what may be called paying rates, the competi- tion being so keen that such an agreement between the nu- merous underwriting interests is looked upon in some quar- ters as positively outside the range of practical politics, and this notwithstanding the fact that general underwriting, so fat as the experience of some of the great companies ex- tends, has been, generally speaking, a losing game for some time, and were it not for the reserves piled up in the halcyon days of the business, the interest on which now brings in a fair dividend, shareholders might want to put the closure on active operations. Some trades are naturally more hazard- _ ous than others, and upon the ship running on particularly perilous routes, rates, in accordance with the risks taken, are charged. This penalty has to be borne ultimately by the consumers for freights in consonance with the voyage, and its burdens must be obtained by the shipowner, but that is not the underwriters’ concern. The shipowner is hardest hit, not when rates all round are high, but when they are varia- ble, for when all are served alike, in the case of insurance as in other matters, honors may be said to be equal. But some steamship linesare underwritten at lower premiums than the average charged to others, and with better results from the underwriters’ standpoint. It is here that the discriminatory rates tell against the penalized companies, but the experi- ence of the insurance companies is such as to warrant their action,. There is no effect without a cause, and it behoves those who are handicapped to see how they can claim the preferential rate. As it is not always in the vessel herself, although some allowance must be made for that factor, it must be in some other direction—either the nature of the cargoes or the caliber of the navigators. In the matter of cargo that is a factor which has its due consideration in every class of vessel, but usually the intermediate class of liners and tramps get rougher cargo than do the first class mail and passenger ships. Besides, in the storing of the cargo, the men in the better companies are usually semi-permanent hands, while the overseers are thoroughly conversant with the work, which is characteristic year in and year out. The navigators are, to our mind, in a great measure the factor which should have the most careful consideration. Men in the best lines are trained from the lowest junior officers’ rank to command, and the process is usually a tedious one. But that the training for years in the one service in the various grades has a beneficial effect is proved by the fact that in proportion to the movements of steamers so officered there are fewer accidents than is the case with outsiders. Particu- larly is this the case in the Canadian trade. The Gulf of St. Lawrence is anything but a navigational paradise, for what with fogs, storms, currents, and tidal streams, known and unknown, rocks and shoals, marked and unmarked, com- pass vagaries, and what not, it is not surprising that men of little or no experience of the district simply pile up their ships, and come away, with sad hearts, to face the music of a Board of Trade inquiry. This trade is one that too much experience and ability cannot be brought into for safety, and it is on account of the difference in actual results be- tweeu the well-found, well-equipped, and well-navigated liner and the outsider that the discrepancy in the insurance rates is so marked. However, the fact that these rates act prejudically upon the trade of the Dominion—as evidenced by the withdrawal of a number of freight steamers from the Canadian-American trade when the higher rates of insurance came into force on the rst of this month—is to be deplored, and whatever can be done to bring these rates to their very lowest possible point should be done. The matter is a na- tional one, and the discussion in Ottawa upon the suggested handling of the question by the Government will be followed with interest. Certainly some such step is needed in the interests of the Dominion and of shipping generally, and, even with reduced premiums and a properly organized strong underwriting corporation, there ought to be no diffi- culty in paying a small interest, which might well be guar- anteed by the State. The development of such a scheme is not by any means possible, or, in fact, improbable, and it will, if established, be a great boon to all concerned.—Jour- nal of Commerce, Liverpool. oo oo NAVAL CONSTRUCTION. The report of the chief of the bureau of construction and repair for the year 1899-1900, is the last one to be submitted by Rear Admiral Hichborn, the present chief of construction as he retires next March. The report opens with the estimates, the principal items being: For preservation of the repairs to vessels of the navy, $7,000,000; for repairs and improvements to navy yards plants, $920,000; the account of hulls and outfits to vessels and steam machinery heretofore authorized, $21,772- gI7. The chief constructor points out the disadvantages under which the naval station at Cavite labors, dnd quotes a report from the naval constructor relative to proposed site at Olon- gapo Subic bay. He withholds reccommendation thereupon until the question of a permanent naval station in the Phil- ippines is definitely settled. Especial attention is placed on the need for additional drydocks. He says: ‘‘There are available at the present time on the east coast of the United States but nine govern- ment drydocks of all sizes distributed among seven ports and of these but one is of sufficient size to takethe battleships.”’ The report refers to the wonderful growth and development of the navy from the sails and wooden hulls and advocates the building of vessels in the navy yards. $< $$ 2 ear VISIBLE SUPPLY OF GRAIN. As compiled for THE MARINE RECORD, by George F. Stone, Secretary Chicago Board of Trade. CITIES WHERE WHEAT.| CORN. Oats. RYE. BARLEY STORED. Bushels. | Bushels. | Bushels. | Bushels. | Bushels. | | Builalo's ovsce sc ass ois 3,626,000] . 250,000} 196,000 79,000] 785,000 Chicago... 60.325. -% 13,005,000] 2,923,000] 3,753,000 531,000 54,000 Detroit .............- 560,000 46,000 179,000 67,000 17,000 Duluth. aesecies ces 6,999.000 50,000 170,000 89,000 651,000 Fort William, Ont.. BUFO ia Us ie taitaa vet dinvakchscarcraracenn [ips aavevorses | Sern ai ales Milwaukee.........- 780,000 42,000] 415,000 7,0co 59,000 Port Arthur, Ont.... LOA OOO |eevalac srw artiil eeetosni sic satel [bo aie aap iaeaiasl | Mearela seta cy MOEA. cues cence nn I, 211,000 461,000] 1,539,000 23,000 1,000 Toronto.... WE'OOO! SiG, esis TL000)|o.) ios oo 182,000 On Canals.... 224,000 215,000 26,000 26,000 109,000 On Lakes..... Wa 599,000] £,446,000] 670,000}.......... 577,000 On Miss. River......|-... 0-5: 100,000 BOWOODNGE A cae. wailiraeh setae Grand Total..... 59,773.000| 8,144,000] 12,536,000} 1,050,000] 3 067,000 Corresponding Date, PRQO Gate c eases cae 49.561,000] 13,716,000] 6,913,000] 1,043,000} 2,876,000 Increase......----0+- 1,460,000] ... Bers 226,000 33,000 472,000 Decrease .....-+ee0e:| pee eeee PPO COOTE ci satya ouillnce vis sere ee egt oe either eke While the stock of grain at lake ports only is here given, the total shows the figures for the entire country except the Pacific Slope. or ori MARINE PATENTS ISSUED. 660,155 and 660,156.—Apparatus for controlling mechan- ism of moving vessels, vehicles. Bradley A. Fiske, U.S. N., assignor to the Western Electric Co., Chicago, Ill. 660,318.—Apparatus for governing and controlling marine or other engines. Elmer A. Sperry, Cleveland, Ohio, 660,399.—Propeller-shaft Bearing. John T. ° Shepard, Evansville, Ind., assignor of one half to Frank Tardy of same place. 660,418.—EHlevating and Ramming Apparatus for T or Barbette Guns. A. T. Dawson, Toede a England, sone: nor to the Vickers and Maxim, Limited, Sheffield, England. 660,436.—Bulkhead and Door, John H. Hind, Barrow-in- Furness, England. THE CONEMAUGH-NEW YORK CASE AGAIN, The United States Court of Appeals has handed down an important decision in the Conemaugh-New York case, which grew out of the collision in 1891 below Fort Wayne, it which the Conemaugh was sunk. The court holds that the appeal should not be dismissed because it was not taken in 30 days, as the act creating the court of appeals supersedes the old chancery rule, and appeals can be taken within six months. Another reason advanced to dismiss the appeal was that the American Surety Co. had not joined as appel- lant. ‘The court holds that the surety company, not being a party to the proceedings, need not be joined. The history of this nine-year litigation, which will proba- bly attain its majority before it is settled, is interesting. It has been before the district court three times, before the court of appeals four times, and before. the United States Supreme Court twice. It will now go to the court of appeals again, thence to the supreme court, and will be referred back to the district court for settlement. In 1891 proceedings were started for the settlement of dam- ages. The New York was libeled and released on a $100,000 bond of the American Surety Co. After a long trial the dis- trict court in 1892 divided the damages. The Conemaugh gota rehearing in 1893. In 1895 Judge Swan reversed his holding that damages should be divided, and held the New York wholly in fault forthe collision. A decree was taken in 1896 against the New York for $70,000. In 1897 the court of appeals reversed Judge Swan, holding the Conemaugh owners liable to the New York for $3,000 the amount of dam- ages sustained by the. New York. A rehearing was denied in 1898 and went in 1899 to the supreme court, where both boats were again declared at fault and damages again or- dered divided. The parties came back to the district court to settle the damages. Judge Swan made the computations. The New York claimed that it should be allowed not only the half of $3,000 damages it sustained, but also half of the $30,000 dam- ages which it had té pay to the innocent cargo-holders of the New Vork. It thus claimed ‘a recoupment of over $16,500. Judge Swan’s decree, however, made the New York stand not only its half of the damages, but also the amount which it paid to innocent cargo-holders, or a total of 76% per cent, » of the whole loss, instead of one-half. ‘ Attorneys Fred. C. Harvey, Esq., of Detroit, and Charles B. Kremer, Esq., of Chicago, representing the Erie Railroad Co., owners of the New York, appealed to the United States supreme court from Judge Swan’s decision, but that court held that their remedy was by appeal to the court of ap- peals. They then went to the court of appeals, where the motion was made to dismiss by Attorneys H. D. Goulder, Esq., of Cleveland, for the Conemaugh owners, and F. H. Canfield, Esq., for the underwriters. Many important questions have been decided in this ven- erable litigation. The most important was probably that raised by the Conemaugh that the surety on the release is a party to the suit. It has been held in this case that the surety is not. The question of the assessment of damages is the big question in the case. Nearly $100,000 is now. involved. The printing of the records in the case alone has cost $1,500, and the court fees many hundreds. rr Ir will be recalled that it has been from time to time asserted in the columns of The Railway and Engineering Review, Chicago, that the car ferry proposition as an econ- omic factor in railroad operation had its limitations; that while it might be profitable to use it across the upper part of Lake Michigan, as compared with hauling cars around the lake, it never could be utilized in competition with a rail line of anywhere near corresponding mileage. The success of the Ann Arbor car ferry which crosses the lake from Frankfort, and their own ferries between upper lake ports, induced the Pere Marquette line to investigate fully the feasibility of a similar proposition from Chicago to New Buffalo, the southermost point at which that road touches Lake Michigan. It was found, however, that it could oper- ate cheaper over the Michigan Central road than by sucha car ferry, and the lead has been abandoned. It would not seem that a very long or close inquiry was necessary to reach such a conclusion. It can be demonstrated that in the question of movement expenses alone it costs more per ton mile to handle freight via a car ferry than by a railroad, and it is only where the mileage saved by the use of the car ferry is greatly in excess of its own distance that any advantage can be hoped for by its use. 2 : ya eer oe