Fortunes From Ship Frands.

Hokitika Guardian, 10 June 1922, Page 4

Fortunes From Ship Frands.

UNDERWRITERS' LOSSES. C 1.0110.000 INSURANCE ON OLD BOOTS AND IRON.

Suspicions of j,lord’s underwriters that a number of (tracks were attempting io defraud lliitish underwriters have led lo closer inspection of ships’ cargoes and some lemat liable discoveries. Losses on ships sailing under the (tied; llag are so heavy, and of late have been so frequent, that underwriters will in future elfrci insurances on them only after the fullest inquiries. "it is quite dear that there are skilful (treek rogues who are making fortunes out of the English insnranet' market," a high official of Lloyd’s told a Daily Mail reporter. “During this year well over .if) (treek ships have gone down with eni'goes, involving something like Cti.oflO.nriO, of whieli most falls on Lloyd’s and English insurance .companies. "\Ye do not regard them all with suspicion, hut these losses are more than abnormal, and for many of them there does not seem to he a satisfactory explanation.-After a nice breakfast, crews seem to sail away in boats from a ship that is sinking in deep water from some unknown cause. "It is certainly true that never before have underwriters been regarded as such good game for plucking among people to whom this sort of thing appeals. OLD TiOOTS. "When a small steamer loaded at Alexandria last month with a cargo insured for more than £"100,000, Lloyd’s agents there hoarded the vessel just before it set out for Smyrna. Inspection of the cargo revealed that it consisted of old war stores left in Egypt after the armistice, such as old hoots, old kit, and tho like. The value was

assessed at less than one-tenth the amount for which it had been insured. “We believe we have frustrated by prompt measures what would have linen perhaps the biggest fraud in the history of marine insurance. The underwriters cancelled the risk, and the ship left with its cai'go iminsiiicd. Further inquiries have revealed that the cargo was ifiJt destined' tor the Greek Army, ns bad been alleged white the ship was at Alexandria. “Wo have not wet been aide to get into touch with tlie man who cli'eetc I the insurance ; he is not the owner of the ship, and what further action is 1 ike!v to follow is uncertain." A MO IT AIR STORY.

The chairman of Lloyd’s, Mr Sidney Roultin, reported the case oi another steamer in a speech to the Insurance Institute of London last week. ‘'This ship, alii-god t<> have a cargo of mohair, had it insured far C2 10,11011.” he said. “Suspicions were aroused holorc she sap I and id b price- were paid to re'iisti.e. 1. it she arri'.ed all right, much to the surprise of all concerned. ‘Tt turned out that the cargo was worthless rubbish. Tt lias been intruded to run her nshore on certain recks in the Mediterranean, btii when the captain arrived at the siioi le funked i!. The weather was unpleasantly Stormy and there was a chance of drowning.

“lie was too stupid to concoct another plan and so blundered along tithe journey's end. lie was iill prisolid on bis arrival in Greece, whether fm having made a mess of ii or for In.crimes it is unnecessary to inquire."