LLOYD'S AND GERMAN SUBMARINES

Dominion, Volume 8, Issue 2427, 5 April 1915, Page 8

LLOYD'S AND GERMAN SUBMARINES

ADVANCE IN WAR RISK RATES

UNDERWRITERS AND ENEMY'S TACTICS The activity shown by German submarines in the sinking of five merchant vessels was regarded at Lloyd's recently (says an article in the-"finan-cial Times") as sufficient justification for an increase in war risk premiums relating to maritime hazards, which underwent an advance of varying amounts for different parts of tho coast. Tho movement was, however, most noticeable in connection with the Western coasting trade, which has hitherto been, "dono" at about us. per cent.; tho rato now is much nearer 20s. per cent., according to the nature of the risk. On the East Coast and elsewhere adjacent to home ports the market was firmer to the extent of o per cent, or thereabouts. 'l'he terms in force at the Government Marine Insurance Bureau were unaltered at 30s. per cent, for "time" policies and los. lor voyage risks.

A considerable amount of shipping has recently been run uninsured so far as concerns the hazards of war, there having been a general impression that with tho destruction of Admiral von Spec's squadron no further losses of any consequence wero likely to be incurred on tho open sea. This view has, of course, been disturbed, temporarily at any rate, by tho happenings of the past few days, and ship and cargo owners arc now once more clamouring for full protection, at any rate as regards vessels frequciiting home ports, and this alone would havo been sufficient to bring about some increase in rates, quite apart from tho additional risk which is shown to exist by the losses which have just been sustained by British shipowners. In tho opinion of underwriters there is 110 cause, for excitement or alarm regarding! the successful raid which has been carried out by the enemy's submarines, for, now that so many English war vessels have been liberated from special patrol duties ill connection with raiding cruisers, it is probable that the Admiralty will turn their attention to tho enterprising submarines which, acting oil the instructions of Admiral von lirpitz, are seeking to initiate a crusade against English merchant shipping. That the enemy's efforts in this connection will prove a failure need not bo doubted, for the successes obtained by them a few days ago were due solely to the fact that we were taken by surprise. The number of these underwater craft possessed by Germany is strictly limited, and it is very improbable that- those at present in existence can be added to by German shipbuilders before the war is over. Consequently if they are systematically hunted down their power-for harm should bo brought to an end at 110 very distant date. It is understood at Lloyd's that already every likely lurking place for such vessels is being searched by the Royal Navy, while,, in particular, spocial oft'orts are being made to find out their bases, there being an impro6sion that oil and other stores have been accumulated at out-of-the-way islands. In order to settle this point every possible hiding place within some hundreds of miles of the English coast will be risitett within the next week or so by British war vessels and any depots removed.

IHt transpires that the Germius submarines are operating from the North Soa or the Baltic it will probably be possible to deal with such craft when tho need of replenishing their stores causes then; to return home. . Alternatively, if they have to return to tho German coast we have ample resources in the way of submarines and destroyers for itlie task of intercepting them as they como back to port, and there is, consequently, not the slightest reason to suppose that after a few unimportant initial successes Germany will be any more successful in the employment of her submarines against English shipping.than she has been with larger naval craft.

This is the firm conviction of underwriters, who also attach importance to the fact that the enemy arc arousing tho ill-will of all neutral countries by interference with the ocean, transport industry under conditions which are against all tho recognised rules of warfate, and will recoil heavily upon the Government at Berlin when they are presented with the bill'for all the havoc for which the Kaiser has been responsible since the beginning of August last. In this underwriters' losses are not likely to figure, but Germany will have 1 an opportunity of ascertaining tho feeling at Lloyd's regarding her methods wheii tho time comes to once more insure her mercantile marine —or what is left of it—against tho ordinary perils of the sea.