Correspondece.

Lyttelton Times, Volume VIII, Issue 492, 22 July 1857, Page 4

Correspondece.

To the Editor of the Lyttelton Times. Sic, —Tour now go-a-head correspondent 'Steam, Steam, Steam,' has shewn himselfveiy apt in imputing interested motives for my wishing to warn my fellow colonists of the risk they are incurring in underwriting for the proposed coast steamers, but his imputations are easily cast aside. lam likely to be as much interested as any man in the province by the introduction of local steamers, and would readily take a liberal share of the amount to be insured; but I must first have it clearly defined what are the risks I am underwriting. Notwithstanding Mr. Steam's kind recommendation for me to make enquiry of my mercantile friends on the subject of insurance matters, and the polite conviction, he has expressed of my ignorance thereon, I beg leave distinctly to repeat what I asserted in my former letter, that,according to the plan put forward by the Government, every underwriter, whatever amount he may take, will be liable to pay that amount over and over again, in the course of twelve months, by his contributions to a number of general averages. lam not astonished at Mr. Steam's blaming me for writing disparagingly of the proposed scheme, as he is evidently in utter ignorance of the risk the underwriters will run, and also (although it is difficult to believe how a man writing so confidently can be), of the general principles of marine insurance. In answer to his assertion, " that a vessel is not liable for cargo (in case of accident) where it is sacrificed for the safety of the vessel," I beg leave to submit to him the following extracts from M'Culloch's Commercial Dictionary, on the article "Average :" " When any sacrifice is deliberately and voluntarily made, or any expense fairly and bona fide incurred, to prevent a total loss, such sacrifice or expense is the proper subject of a general contribution, and ought to be rateably borne by the owners of the ship, freight and cargo, so that the loss may fall equally on all; according to the equitable maxim of the civil law no one ought to be enriched by another's loss—nemo debet locnpletavi aliena jactura." And again, from the same authority— " The ship and freights and every thing on board, even jewels, plate, and money, except wearing apparel, contribute to a general average." One other quotation from the same book on the article "Marine Insurance," and I think that your well informed correspondent will be fully satisfied that all people are not so ignorant on business matters as he would have us believe he is proficient :— " Gpneral average comprehends all loss arising out of a voluntary sacrifice of either vessel or cargo made by the captain for the benefit of

[ the whole. Thus if a captain throw any of his cargo overboard, cut from an anchor and cable, or cut away his masts, the loss so sustained, being voluntarily submitted to for the benefit of the whole, is distributed over the value of the whole ship and cargo, and is called general average." It will be obvious to everybody that the proI portion of the average to be borne by the S ship is shifted from the owner to the underwriter where the vessel is insured. I can readily imagine that your correspondent is not a go-a-head man, —he can't well be, otherwise he would display a little more of that quality necessary to make him such. Of course he is quite at liberty to have his opinion respecting the Government Steam Policy. Allow me to ask, if the premium offered by Government is so very liberal, why do not the intending contractors get their I boats covered in the regular and more business like manner in Australia or England ? Why ? Because they well know that no body of underwriters would entertain it for any amount of premium. Ido not believe that in the annals of Insurance such a policy was ever proposed, covering such risks and extending over such a term of years. It does not follow, because we must have steam, that we are to agree to whatever terms the intending contractors choose to dictate. Such, I think, were never contemplated by*the public or the Provincial Government. Some persons are forward in speaking of the very liberal terms offered bjr the contractors, but, as a matter of course,selfispredominant,andnotphilanthrophy. The greater the outlay and risk the greater the profits expected ; if we are to help their speculation we do it for our own apparent benefit and not theirs. Your correspondent further says, that it would have been a profitable business to have insui'ed the coasters for the last two years; perhaps it would (the Alma excepted); but let me tell him that the risk for two steamers, value' £5,000, bears no comparison to that of 20 boats, value together the same amount. His figures also, like towns on papei1, look very pretty; far prettier than our squatters or storekeepers will think the figures on their cheques for " General Average" will look. I again repeat that I am a very great advocate for steam, but shall hesitate to subscribe to any policy except one which covers total loss only. Four or five years hence, in this changeable world, and then it may be necessary to advertise for perhaps one half of the underwriters, hinting about " something to their advantage." Yours Obediently, A SUBSCRIBER.