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I 1 I i I w ? LLOYD'S ITS ORIGIN, HISTORY AND METHODS. 1 I T The term " Lloyd's " is often used in connection with ships and marine insurance, but few know the origin of the name, or what it really means. Some suppose it to be a Marine Insurance Company ; some imagine it to be a private firm ; whilst others con- found it with " Lloyd's Register of Shipping." In reality, it is neither of these. It is one of those English institutions, which, beginingin a very small way, has grown with England s ever expanding commerce, until it has become of world wide fame. " Lloyd's Agents " are found at nearly every sea- port in the world, and exercise a sort of control over the wreck of every British ship, whilst more marine insurance is effected at the head office th? ;, in any similar institution known. Marine Insurance seems to have had its origin in England among a company of merchants from the " Hanse Towns " of Germany, known as the " Hanse- atic League," who settled at the "Steel Yard," on the banks of the Thames, and formed part of a powerful Confederation spread over Europe, Their privileges, by treaty, in England, were abolished by Elizabeth in 15t8. 1 — 4 At the dose of the 17th ceutury, Coffee Houses had become very fashionable in London. Mr. Edwards an English Turkey Merchant, brought home with him Pasquet, a Greek servant, who opened the first Coffee House in London, in George Yard, Lombard Streel, in 1652. They afterwards became so numerous that they were suppressed by proclamation in 167o, but the order was revoked on petition of the traders' in 1676. " There were Coffee-Houses where medical " men might be consulted ; Puritan Coffee-Houses, " where no oath was heard ; Jew's Coffee-Houses, "for money changers; and Popish Coffee-Houses, " where, as good Protestants believed, Jesuits plan- " ned over their cups another great fire, and cast " silver bullets to shoot the King." (William III) Persons at that time commonly asked of such and .such a one, not where he lived, but whether he fre- quented the "Grecian" or the "Rainbow." Will's then the " Rose ") was the Wits' Coffee-House. where Dryden had his arm chair, in winter by the fireside, in summer in the balcony. Macaulay say.s, " Under " no roof was a greater variety of figures to be seen. " There were Earls in stars and garters, Clergymen " in cassocks and bands, pert Templars, sheepish lads " from the University, translators and index makers 'in ragged coats of frieze." " Button's," was y\ddi- son's house, over against " Tom's." Here met Pope, Steele, Swift, Arbuthnot, &c., and here Ambrose Phillips hung up the birchen-rod with which he threatened to chastise Pope for a bitter epigram. "Coffee, which makes the politician wise, " And see through all things with his half shut eyes." \ I 9 5 \ 1 9 V "Tom's" was a favorite resort of Dr. Johnson, Sir Joshua Reynolds, Garrick, etc. In 1688, Tower Street was one of the principal thoroughfares in the "Cify" of London, and Ihore it was that Edward Lloyd, from whom the world famous institution takes its name, established his Cott'ee-House. In 1G88, the " London GazeMe;' No. 2420, in an ad- vertisement for a thief who had stolen some watehes, thus concludes : - Whoever gives notice of them to " Mr. Edward Lloyd, at his CofFee-House in Tower "Street, shall have a guinea reward" The place then was no doubt a common resort of seafaring men. In 1692, Lloyd removed his establishmen! to the corner of Lombard Street and Abchurch Lane. By his removal, Lloyd lost the patronage of seafaring men, but he gained more than he lost in the acquF- sition of the custom of merchants ol standing. He had for rivals " Garaway's," " Jonathan's," " Baker's, ' and "John's," but " Baker's " is the only one besides '• Lloyd's," which now exists. Lloyd soon succeeded in gathering round him a considerable dienUle, and Ihe records of th ;>eriod contain frequent advertise- ments of sales by " inch of candle" which took place at this Coflfee-House. It seems also to have been the favourite delivery house of runaway slaves. Reference is made to these sales in a " poem " called " The Wealthy Shopkeeper," published in ItOO : " Now to Lloyd's Coffee House he never fails To read the letters and attend tlie sales." These "letters" were a diHtinguishing feature ol Moyd'8 Coffee-Hottse. He had established quite an exte.isive collection of home and foreign correspon- dents in the principal ports, and from these he re- oeived constant news of the movement of vessels which was duly posted up in his establishment. In this fact may be found the germ of the "Lloyd's List" we are familiar with to-day, and the foundation of the subsequent greatness of the " Corporation of Lloyd's." Ten years later Steele wrote a letter in the " Tatler'' on " Lloyd's/ and Addison also wrote a similar one in the '* Spectator^ Li 1696, Lloyd established a newspaper, published three times a week, giving shipping and commercial news, and known as " LloyfJ:s Neivsr In those days, nothing of the kind existed except the official ''Loncbli Gazette:^ A complete file of this paper does not exist but the Bodleian Library at Oxford contains all but the first seven numbers. It, however, had only a short career, for in the 76th number he inserted some very harmless information concerning the proceed- ings in the House of Lords. For this heinous offence he was summoned to appear before the bar of the House, and was called upon to "rectifie it in his next." This he never did, but substituted hand- writing for printing, and the news sheet continued to be read at Lloyd's CofTee-House for nearly thirty years. In 1726 the paper was revived under the title oV^LloycTs Lnt:^ the publication of which as a daily (though under a different name since 1884) has been continued down to the present day. "Z%rf's List " can t — 7 — \ > t therefore claim to be the oldest newspaper now in existence in England, with the single exception of the ollicial ''London Gazette:' Lloyd's had by this time, in consequence of th. prominence given to shipping matters, come to be recognised as the centre of marine insurance It was found to be a convenient exchange for merchants. . K^r ^r" '".^ ^''^'•'^' ""^ *^"« « *^^"tre was established for the carrying on of marine insurance business As business increased, the Coffee-House 7ZTt *^ *^^^°«"ffi«i«»tly commodious, and about 1770 the brokers and underwriters /men who take the risks and subscribe, or underwrite, their names at the foot of the policy), removed their rendezvous to tem- porary quarters in "Pope's Head Alley" Manv efforts were made to s.cure a suitable home, but thev met with no success. In 1771, however, a Dutchman, a prominent member of the CofTee-House, Mr M K VanMierop, called a meeting, and it was there re- solved by seventy-nine of his fellow members lo build a " New Lloyd's," and they put down their nam^s for ^100 each ; but it was not until the 24th November 1773, that the subscribers, under the guidance and advice of Mr. John Julius Angerstein, a native of St Petersburg, but of German extraction, took a lease of the rooms in the Royal Exchange, from the owners ot the building, the Mercer's Company, and in 1774 the "Underwriters" found a permanent abiding place. "And thus it came about that the patrons of what was merely a humble waterside Coffee-House established themselves on the spot which has ever since been their habitation, and formed a commercial 8 — organization in the very heart of the City of London, which is unique in th- history of the commerce of the world." ^ Mr. Angcrstein was a man of great energy, intel- ligence and sterling integrity ; he was appointed chairman of the Committee, and continued to occupy that position until 1796. In his evidence before a Parliamentary Committee in 1810, he said he had been engaged in insurance business as a broker and underwriter for fifty-four years. " He had found Lloyd's a small institution, and seen it grow into vast size " and thus became known as " The father of Lloyd's." The immigration to the Royal Exchange had been necessitated by the increase of the number of fre- quenters of the Coffee-House, and with its numbers grew its strength aud importance. Some sort of governing body too was seen to be desirable to control the affairs of the institution and protect the interests of its frequenters. Hitherto, Lloyd's Coffee-House had been open to all who cared to go there. For many years it had been directed by a " House Com- mittee " composed of from 12 to 20 members appoint- ed for life. But in 1811, a Committee of 21 members was appointed " to consider of such measures as may " be necessary for the future management of the " affairs of this house." A constitution was formed which lasted without any material changes until I8t'\ when it was deci- ded to apply to Parliament for an Act of Incorporation, and in May 1871, it was granted. * H. M. Gioy. fl t t ii — ' I u The Royal Exchange was destroyed by fire on the 10th January, 1838. The new Exchange, erected under the direction of Mr. Tito, was opened by the Queen on the 28th October, 1844. The Coffee-room is still maintained, though only as a very small adjunct to the great institution now dwelling in its palatial quarters in Cornhill. " Lloyd's " then, as it now exists, occupies two sides, on the first floor of the magnificent Grecian building known as the "Royal Exchange," "high change" being held in the open quadrangle from 3.45 to 4.1.5 p.m., every week day. It has five rooms : the " Un- derwriters' Room," th Merchants," the " Captains," the " Coffee," and the " Committee " rooms. The first named is a very handsome, lofty room, occupying the whole East side of tho quadrangle, and the largest of the suite. The "Merchants" and the "Captains" occupy together the North side, (the latter having a special entrance), and the small coffee-room is off the Captains. The " Committe " room, and Secretary's offices are at the top of the broad sta'rcase at the East end. As I have said, " Lloyd's " is not a Marine Insurance Company, although an enormous amount of marine insurance is daily effected there, but simply a place where underwriters, merchants, and brokers meet for the transaction of insurance business, and where the latest shipping news from every corner of the world may be obtained. The risks are taken by individual " underwriters " through insurance brokers, on special forms of policy, at rates agreed upon, subject, how- ever, to certain special clauses. The ordinary sum - 10 — isiJlOO ciich, desrendiug- sometimos as low ;s £25 und wlie.i the risk is very lig-ht, or a favourite one' ascending- upwards to £300 or even £500 each. The Committee never interferes in tiny way with the risks taken, the rate of premium, or the settle- ment of claims ; their functions being limited to the admission of members, the uppointment of agents, the collection of shipping- lu^ws by telegraph ^and post, the daily publication of Lloyd's list, and the seleccion' of a secretary and clerks. The Committee is elected annually by the subscribers from among the leading- merchants and underwriters of London. Mr. Thomas Baring, was for a long time Chairman ; and he was succeeded by the Right Honorable Geo. J. Goschen, M.P. Lord Revelstoke, another Baring, now occupies the chair. Admiral Halstrd, K.N., was lor many years the Secretary, and he was succeeded by Mr. B. C. Stephenson, and he by the present occupant, Lt. Col Hciiry M. Hozier, R E., He enjovs a lar<-e salary. A candidate seeking admission to the " Under- writers " Room has to undergo a severe scrutiny. He must procure a recommendation signed by six mem- bers. The application form, setting forth the uame, address, occupation, etc , of the candidate, and the names of the members recommending him, is then posted up at least seven days before the day of election. An underwriting member elected after Deceir^ber 8 1st, 1890, besides being required to deposit with the Committee at least £5000, (for which he receives interest, and which is returnable to him three years after ceasing to be a member), has to pay au 11 ^ ' ! t — 11 — i% • ' * nj .'Utrauce iW of\€400, and an annual subscription ol' 20 Cluineas ; but members elected prior to December 31st, 1892, pay only IGGuiiieas. A nou-underwritinn- member is exempt from the deposit, and is only n' quired to pay an entrance fee of £25 and an annual subscription of 7 Guineas. An annual "subscriber' pays no entrance fee but merely an annual subscrip- tion of 7 Guineas, and an "Associate" 5 Guineas. There are now about 700 Members, r)00 Subscrib.-rs, and 500 Associat(>s. In a small room on the ffround Hoor a special porter is placed with a fyle of " Lloyd's Lists " to o-ive the latest information of ships to the humblest applicant free of charj^-e. The appointment of "Lloyd's Agent" is much sought afrer everywhere, not so much on account of the fees, which are often very small, (they have no salary), but because it gives a certain 'status" all over the world, the Committee being known to care- fully S(.Tutinize ilie character and antecedents of every applicant There are about 1500 in all. They have no legal powers, (unless specially conferred) but Captains are always anxious to secure their advice and assistance when in distress, for which the Agents are paid. They have al^o to forward instantaneous advices of accidents or wrecks by telegraph, and regular advices of arrivals and sailings ; .siiperintend surveys and sales of wrecked ships and goods, and, when necessary, investigate frauds. The Qiiebec' district extends from Sorel to Gaspe The duties are often very onerous, and occasionally subject the Agent to much opprobrium, but he is always loyally supported by the Committee, and implicitly trusted — 12 by the under writ ors. The introduction of cable mes- sag-es, however, has added, indirectly, to the power of Agents, as well as increased their duties and their fees. The '' Sliip/Hug Gazette'' and ''Lloyd's List'' is published every morning, except Sundays, by the Secretary and a large staff, and is circulated all over the world. It consists of all arrivals and sailings at home and abroad, accidents, and speakings at sea ; official notices from the Admiralty, Customs, and Trinity House, and advertisements. In order to understand the methods of its business, let us make an imaginary visit to "Lloyd's," say about 11 a.m. At the top of the handsome, broad, stone staircase entered from Exchange Place, near the Peabody monument, you find a spacious vestibule carefully guarded by a Cerberus in scarlet livery, who knows every member, and excludes every stranger, unless escorted by a member or subscriber. He will call any member yon wish to see in stentorian tones. In the vestibule, you find a handsome marble tablet commemorating the public spirit of the proprietor of the Times in exposing a gigantic fraud, and refusing to accept the cost of a long trial ; and another, erected in memory of a Loudon merchant named " Lyddeker " Nearby are three enormous books which are posted every few minutes in business hours ; the " home arrival " book ; the " foreign arrival " book ; and the " accident " or " black book." Then, a large screen, on which are pinned telegrams from all parts of the world as soon as received, and a board for official notices of the Committee. A spacious cloak room opens from the N. E. corner. Looking South, you ^ 1 13 — the premium and begin again, or try the '• Companies." As soon as the slip is filled' a clerk fills up a stamped policy and the next day it is signed m full, usually by proxy. In this way an amount of business is got through in about four hours which IS almost incredible. There is no " dickering " but simply -'yes" or "no," although in an occasion- al interval every one indulges in a little -'chaff" to which aL Londoners are so prone. The forei-n im- ports and exports of the Kingdom amount to over tJOO million pounds sterling per annum, besides an enormous coasting trade. British Shipping are worth about IbO millions sterling, and their freights nearly as much more, so that the field is a vast one. The rates at which some risks are taken seem almost ridiculous to the uninitiated. For instance : a risk — l(j of iJlOO will be taken on -oods by an Atlantic Steam- ship to New York for 7s. 6d (or ^^ths. of 1 per cent, less 15 per cent.) and an underwriter will tell you that he prefers it to many at 5 per cent. Steam Col- Hers, making a round voyage every week, have been insured by the year at rates which only leave the underwriters 2s. 6d. per £W0 for every voyage from London to Newcastle and back. As an exce^ptional case, it may be mentioned that the actual loss-s on goods by the Cunard Line for the past 50 years have not exceeded one shilling per iJlOO, but ths is un- paralleled. The losses on goods by the Allan Line for the past 25 years, havo not exceeded one-quarter of one per cent, so greatly has steam reduced the average loss at sea. The heaviest premium,ipaid, until recently, were on late risks by sailing ships from Quebec to Europe, 8, and even 10, Guineas per cent, having been paid on sailing ships late in November. This was a ter- rible tax on Canadian trade, but steamships are fast replacing sailing and are insured at very low rates. All the rates, however, are based on well ascertained averages, except where special risks are taken on overdue ships. A careful underwriter classifies his risks and ascertains the losses every year in each f?ade, and thus a series of years afford him almost as safe a basis as a life insurance table. A "total loss" is usually settled as soon as the pro- test is presented, if there be no suspicion of fraud or illegality. In cases of " partial loss " or " general average," the papers are submitted to a recognised 17 — ^ "adjuster," whose duties are extromely onerous, and require perfect honesty, a sound judgment and some legal knowledge. He makes out an "average state- ment " showing the percentage of loss on each policy, and this is always accepted. The law of "average" is very complicated and many treatises have been written upon it. 'General average " is usually defined to apply when a " A^olun- " tary sacrifice of part of an adventure is made to " prevent the loss of the whole," and is borne equally by ship, cargo, and freight, in proportion to their respective values. " Particular average " applies when the ship, or her cargo, is damaged by the perils of the sea. Thus, when goods are thrown overboard to save a ship from sinking, it is '• General " ; but if damaged by a leak, it is " Tarticular." If masts or sails are cut away to prevent a ship IVom going ashore, it is "General"; but if blown away, it is " Particular." Damage by fire has led to much dispute, where goods are damaged not by the fire but by water introduced to quench the fire. Different nations too have differ- ent laws of average, and International meetings have been held with a view to make them uniform. All claims und^r 3 per cent, unless "General average," are barred by Lloyd's policie.s, and claims on perish- able goods, such as hemp, flax, fish, fruit, grain, etc., are barred up to 5 per cent, and in some cases, 10 per cent. When a wooden ship is over a year old, one- third the cost of new materials for repairs, is deducted as " new for old." Many of these rules have come down from laws enacted by a little Phoenician Colony in the Island of Rhodes. They were adopted by the Romans in their Code, by the Italians, and afterwards 'I -18 — |>y tho Han.se Towns an-I Eng-Iand, and w.'.v perAstod l>y Lord Man.siield The Whodian.s were the fir.t to make laws r.gulating Hills ofLadino-, Chart.-r Par- ties, Demurrage, and IJottouiry, as well as Coninmr- <'ial Partnerships. The punishments for piracy or wijiul loss of a ship were very severe. To return to ''Lloyd's." When a ship is missinr. the claim is not entertained until the Committee^e '• post ' her in the room, when her case is deemed hopeless, and the claim is at once settled A claim is rarely disputed unless there is proof of fraud, unsea- worthiness, or illegal procedure, such as improper sale. Claims are paid one wck after th.ur bei >«. . passed In 30 y.-ars I only traced one case of fraud'' where a ship owner insured his ship after he knew of her los« at Quebe.>, and two cas.-s of illegal con- demuation and sale. In these cases the underwriters suocessiully resisted i)ayment. There are, of course, occasional failures amoug the underwriters; a few lack experience and ♦•xke'l-isks ludiscrimiuately ; and a few have not sufficient capital to tide over an exceptionally bad year ; whilst here and there a "plunger' indulges in 40 or 50 Guinea risks, which generally turn out badly : but such men are rarely allowed to enter the room a"-ain In no City in the world is the Code of Commercial honour more strictly observed than iu London, and It IS remarkable how correctly the dealings of any particular man are known all over the great "city " Let him but once depart from the strict path of hon- our and he is as effectually "blackballed" as if his name were posted in the Royal Exchange. t .» 'rr — 10 — .( h In tho recoss at the end of the hniir room are se- veral larov books, posted daily by .dcrks from " Lloyd's List," so that any membi'r can ascertain in a few minutes the latest record of any ship mentioned in that invaluable pap.r. In a vault below, the re.jords of Lloyd's from an early dale are earelully pr.'s.'rved, and on one occasion, during- the discussion of deck loads, the writer was asked to furnish a list of 6,000 ships cleared from Quebec, extending over 20 yJars Ever// ship was tmced from the records in an incredibly short space of time, and the avcrai^o loss in each period of 10 years asi^ertained. There is also a "Ri-- ^nstry of Shipmasters," givin- the history of every Ikitish Captain and officer with the casualties he has met with, (supplied by the Hoard of Trade). There is also a ' Salvage Association " with a staff of retired shipmasters and divers, who are sent all over the world to look after wrecks and protect underwriters from the land sharks which abound in every laroe sea port ^ In May, 1803, Lloyd's started the idea of a 'Patri- otic Fund." first sugo-.sted by Mr .Ingerstein. and Sir Francis Baring. M. P, and subscribed £20,000 towards it, the m-mbers resolving that- " to animate "our defenders by sea and by land, it is expedient •' to raise, by the patriotic of the community at lar-., " a suitable fund for their comfort and relief; for the " purpose of assuaging the anguish of their wounds, " or palliating, in some degree, the more vreio-hty "misfortune of the loss of limbs; of alleviating the " distresses of the widow and orphan ; of smoothincr "the brow of sorrow for the U\\ of dearest relatives" — 20 — "th,. props or nnl.appy ii„),i.enco, or helpless an-e • "and ol gn.ntino- p,..uniury rewtird^ or hououmhl,'. "»,aclov« ofdi..fiii,.(ion, for .successful oxortions of " valour or merit." fho apprehensions of Jbreig-n invnsion were real and widespread ; the scheme was received with the i?reatest favour throughout he land, and when th( accounts were finally made up in 182»!, it was found that nearly ^630,000 had been received in all, (three million doUirs.) The medal was as eagerly sought after as the Victoria Cross of our day. The Patriotic Fund was revived in 1855, during the Crimean war. Lloyd's too, grants rewards for saving of life from shipwreck, which tak.s the form of a medal, designed hy the late Mr. William Wyon. R A. The subject of it is taken from the Odyssey where Ulysses is des- cribed as being rescued from the ])erils of a storm by Leucothoe. The reverse i. taken from a medal of Augustus- a crown of oak being the reward given by the Romans to him who saved the life ol a citizen, with the motto derived from the same authority "o6 cives servalosy One of the most worthy recipients of this medal was Captain Murrell of the British Steamship " Mis- souri," who, in 1889, saved 738 souls from the Danish Steamship "Danmark" in mid-ocean, one of the greatest achievements on record. Glasgow under- writers also, gave Captain G-eorge Churchi'-, .C v.,. mouth. N. S., a service of plate and a ourse of gold, for constructing 12 rudders in succession at sea, on one passage of the ship "Research," bound from Qu ^xc to Greenock, and well .he deserved both. ■ , — 21 — Uoyd's huH its o\\ M Cnble Code and pays a very larg^- «uin ibr missagvb Irom every part of the world ; a stall of clerks is employ, ,1 day aud iiighi to deal with thrra. Another branch which has been worked with sue- iH'ss is the reportino- of ve,ssel8 as they pass various Hignal stations established at important points, such as the Fastnet Rock, Gibraltar, Malta, 8t. Helena, Aden, and IVrim. A shij) sails in close enough for her signal letters to be read, when her name is rmmc- diately flashed over the wires to Lloyd's "Lloyd's Register of Shipping," is an entin 'y dis- tinct organization, and is managed by a Committee of merchants, shipowners, and underwriters, who appoint surveyors at all the leading British and (Col- onial Ports to survey and class shii)s when builumg and periodically afterwards. The results are pub" lished in an annual volume, with many details a. id N .mi-monthly supplements 8ome of these surveyors are men of high scientific attainments, and the hook has justly secured the confidence of everv raercantil- <'ommunity. To an underwriter it is an absolut- necessity. A " Registry of Shipping" was established in Lon- don as early as 1760 by underwriters, known as the '^ Green Book." In 1799 there were two Register Books, the - G ien" and the " Red " books, the latter having been established by shipowners, and between them there appears to have been a severe competition. In 1822 the first Steamboat appears in the Registry, the "James Watt," 294 tons, built at Greenock, and ill 1837 the first iron ship. In 1829, the name of — 00. If Foreign .Shippi,.,,. „ at Al'tr "' ''''''''' »"" ird. merchant, j,.,. .hipol' ;„?;""'."*' °'-'' writers, with the rh->ir. ""'fv ■»"a Jrd. iind^.r- 'hea 24 members 'ml '"°""«" Society, Si"ee "Wed. The nu»b^^;™ ::r"i'"".p"'''^ •"'>•■■ ^«"' "' present, i, i« abo;,; MOO " "' '" "'-^^ "'^ ^2), Thomas Chapman, Esq w«« nk • to 1881, a period of 46 yLVht'™;" ''"'" '»'' Society's Snrveyor,, i, Q„l t '' ^""'^ ">« mea^riii, I,„I„3 2,^\^:;, ['f «f '^''M^ et.fs inspection, and abom )o '''"' ""^ ^ooi- builtin the United KinoT u '^"l ™°* °'"" ^"hips classed by , he Socie!;^'"™ ''"" ''^» ^»"-y«/ ■> !/ 4V — 23 — ed lawsuit : „ small i,™, , i tu ,' ■ '^t' ""'"--'■ has c«,sed the loss of „ ship, al.d I^, 1 IIX '". 01- a .,.„„„,,, „„,. ,,^. dr^ :i: : „; ;~" mght uearau open lamp caused the loVof J . A , 'i "s '"'"■"'S-"'^ 'he steerage, destroyed a Z AtLnJie steamship and fjl Jives • ., ■• ' , „Sx .he coast of Pen, has destroyed .t.Liir^Ii:: la a lew minutes whilst at auchor on « i . :::^:f^T''. -f "• «^"". ^astd::f hj ^aieei ot 300 ships m the \r.i*h A+i ^- , »hip has hee. to'taiiy dtt:ed' d'r; t^ti have often be,,, paid o„ sh,ps and cargoes tCulJ " 'iJfe me iient excitemeut iu J 86 J l-Avn-, . wen. made hy nade.write,. on :.l 'n 7 .^^^ w iter': '"«•" ""■ "■'"^'' "•■«'■ --"ed. U," .xampks.-A seonndrel at Bombay, eHeeted he-.vv u^rauees on fictitious Bills oi' Lading fo " i™ . »d arranged the wilful loss of the shin l,„, i detected and immured in .n Indi g 'o,. "It,:':? common lucifer matches was fou„,l .,t Vt u a bale of New Orleans C^h ^ Manchester in <.,n u "^™ans Cotton ; Horses, worth about ^0 each, were shipped abroad and heavily insured only to bfl ix>io'%po/] ^v-H ' J • »^^y lusurea, 7 -- .>o.....Ltcl ^^.th sirj-chaine. but the rascals — 24 — wore dotecled and punished. Ships and their oar- goes have often been condemned and nominally sold for sma 1 sums, and both have made their appearance in England soon after the loss was settk-d in one case, a ship was paid for three times over as a total CSS, having m each case merely touched ground been fraudulently condemned, and her name then ^^anged; and this, I regret to say, happened in Science, however, has done much for underwriters lelegrams often prevent, or detect, fraud, and afford timely assistance to ships in distress. Divers have recovered specie and valuable goods from the depths of the Ocean and stopped leaks in stranded shipv Electric lights, gas buoys, and steam whistles have prevented wrecks ; steam pumps have saved them from total loss, and oil has stilled the angry waves. But science has terribly increased the anxieties and worries of merchants. The silent cable and the ubi- quitous ''Lloyd's Agent" have often posted a loss at Lloyds before the merchant knew that his goods were shipped or had tim. to insure, and men wedded to old methods are left behind in the race. It is impossible to give the amount of business transacted at Lloyd's, as no returns are published, and thus every estimate must be, more or less, con- jectural Judging, however, partly from the known values o imports and exports, the tonnage employed and partly from observations in the room, th' Jsks taken may fairly be estimated at from 250 to 300 million pounds stg. per annum, and the premiums received at between 3 and 4 millions. The profits of 25 — their oar- naljy sold ppearauce d ; in one as a total i ground, ame then >pened in Brwriters. nd afford rers have fie depths ed ship«. ties have ed them waves. etie.s and the ubi- a loss at is goods wedded business blished, 3S8, con- known iployed, he risks to 300 jraiuras 'ofits, of course, rary overy year, but although competition is very keen, ,n the lon„. run there is a fa.r margin a„d th..bus,ness tnvolv.. the use oflittle or no capital. I lie total mar.ne risks of Great Britain and Ireland tou,-flfths of which are probably insured in Eno-Jand -.d Scotland. A lew large .Steamship Companie are partly, or a together, their own underwriter , Td the same may be said of a few private shipowners. The balance ,s d.v.ded between Lloyd's, Liverpool, and Was?;ow underwriters. Marine Insurance Companies Mutual Clubs, and a few small Continental Age'tc es There are also " Mutual Guarantee Clubs • ifwh h shipowners can insure every risk not covered by o.dlnary marine pol.cies, which, in some cases are very heavy such as loss of property or life iHih hips by collision, for which every shipowner is l.able up to ^8 per register ton for (he forme" and .415 per ton ior both. The ■■ Merchant's Room " is a very interesting one "T . "r." " ''°"'''" ™"- of "'Wes are laid the London and Provincial papers, special reports from Lloyd s Agents, (no, being confidential,, and files f the bhipp,„gGa.etteand Lloyd's List; printed slips containing the latest shipping „ews are posted aboi Z'm t ""'■ '""" " '° '■ "'"^ 'hese are suppH, d (o Marine Insurance Companies, etc. A walk round this room is like a rapid tour around the wor d, lor on files, in regular order, commend"' at Hamburg, and ending at Newfoundland, are the ^^olld where „ paper is published, and in many dif- - 26 — ferent languages. On. <.ould spend a whole day pleasantly i„ this room alone. The Captain's Koom IS the smallest of the three. It is simply a place of resort for Shipmasters, for auction sales'of'sh iprand for enquirers who have friends at sea. The "Coffee Room" is crowded from Ito 2 p m a" uToJ'r'ft " '" 'T'''^ with a Sandwich and a^cup of Coffee, or a glas.s of Sherry, all of the very Such is "Lloyd's," From its earliest years it has enjoyed a reputation for honourable dealing. The routine may be considered tedious by some, but it thl rb'f'^!";^n'*^"^^' ^"^ '' ^« considered saf than the limited Companies, for the underwriters' responsibility is unlimited. Underwriting at Lloyd's IS, as a rule, moderately profitable, while it is satisfac tory to he public, and is the means of disseminating most valuable information, often obtained at a heav^ cost, practically free to all the world. Sweetsburg, Quebec, 30th March, 1895. h