WELLINGTON NEWS

Hokitika Guardian, 2 December 1927, Page 4

WELLINGTON NEWS

LLOYD’S UNDER AYR ITERS. (Special to “ Guardian ”.) WELLINGTON, Xov. ,E. l’cr some time past Lloyd’s underwriter’s have been doing business in New Zealand, competing strongly with the many insurance companies established in the iJuminion. it was contended by the latter that this competition was unfair, for, while they were obliged to make a substantial deposit with the Public Trustee, and pay income Tax, etc., Lloyd’s Underwriters escaped these penalties, and under a judgment of the Supreme Court of New Zealand these payments could not lie enforced against Lloyds because the business was not done by a Corporation. but bv individual underwriters. Tile legislation passed this session was to remedy this, and to put all competition for insurance business in New

Zealand on an equality. The insurance companies have been accused ol endeavouring to prevent Lloyds doing business in the Dominion, but this is ridiculous.

The legislation was necessary to bring about fair dealing and is not likely to have any effect on insurance rates.' Lloyd’s ns a corporation does not transact insurance business; that is left to members ns individuals; but there is a very complete organisation for dealing with insurance matters in the interests of the members and the insuring public. The members write or sign their names to a policy indicating the amount of the risk they are willing to assume, and because they write their names under the terms and conditions of the policy they are called

“underwriters” and the word underwriter lias now come to mean one who undertakes a risk in certain eventuali-

ties. A public loan or an issue of shares liv a public company can be ! underwritten, and those who under- | write the issue guarantee the dotation, that is, they hold themselves respoil- I sible tor wahtevor amount not subscribed by the public. j When some 2.i() years ago, Edward Lloyd provided the customers of his ictfee house in Tower Street with the news he was able to gather concerning the arrival of vessels and such like information, be little thought that he was founding a system unique ill the commercial world, and one that would eventually develop into a most valuable adjunct of the shipping industry. Xevertehless, the announcements written or read by tlie “ kidney,” or waiter, and the early printed issues of “Lloyd’s News” were but the beginning of what has developed into an organisation with world-wide ramifications, In those days the clerical duties were carried out by the “ masters,” j who were to all intents and purposes; waiters, and this was the position until' 1811 when a Secretary of State wrote that he “ regretted his inability to enter into epistolary intercourse with the waiters at Lloyd’s coffee house.”

In that year the secretary to Lloyd’s was appointed. It is interesting to note that up to the end of 191.8 it was customary for the General Post Office to deliver their mail list in an envelope addressed “ Lloyd’s Coffee House.” Lloyd’s, it is said, never closes. The Casualty Book is ruled off at -1 p.lll. Underwriters and brokers leave for their homes or offices about the same time, but day and night the doors are open and a waiter on duty receiving cables and wireless messages, which are despatched to the proper quarters. From various departments there issues the ceaseless flow of information concerning shipping and “ Lloyd’s Daily Index ”, is the wide medium ol all who would know the position, of any vessel of the world’s mercantile navies. In every port ol any consequence and in many minor seaport towns Lloyd’s lias an agent—-a man or firm of the highest repute and proved ability. The agent’s duties include the communication with the utmost despatch of all information likely to prove of

importance or service to underwriters, shipowners and merchants, and by this means a vast network of news gathering centres is spread round the world. The Corporation of Lloyd’s issues

“ Certificates of Insurance ” which officially state that a certain policy has been issued, and which are, in effect, as good as the original document, while the “ average department ” deals with claims. Lloyd’s Register (the book) founded in 1700. has been in annual publication since 1773. The management ol Lloyd’s Register is vested in a Committee which consists mainly of elected representatives of the whole of the interest-concerned shipowners. underwriters, shipbuilders and engineers—and each one a recognised authority in the branch with which he is associated.