Broker's Account Sales.

Account Sales of 100 Bales Wool, ex steamer "Paramatta," from Sydney, sold by Auction on 22nd September, 1898, for account of Messrs. Griffiths & Sons.

Merchant's Account Sales.

Account Sales of 100 Bales Wool, ex steamer "Paramatta," from Sydney, sold by Auction on 22nd September, 1898, for account of W. & E.

CHAPTER XIX

MARINE INSURANCE

There are numerous varieties of insurance, e.g., insurance against fire, against perils of the sea, against death, against excess of bad debts, against burglary, against sickness, against embezzlement by clerks or agents, against claims under the Employers' Liability Acts, against accidents to the person, to crops, to cattle, to plateglass windows, and against other contingencies.

Of the different species of insurance just mentioned, the first three are the most important as well as the most common. They are known as fire insurance-meaning the insurance of both movable and immovable property on land, against damage or destruction by fire; marine insurance, meaning insurance of ships, goods, &c., at sea; and life insurance, by which the payment of a certain sum is secured at the death of the individual insured, or in the event of his reaching a certain age.

Of these, marine insurance is the most ancient, the others being of comparatively recent introduction. All we propose to deal with now is marine insurance, but it will be convenient to mention here some terms which are applicable to all kinds of insurance.

The word insurance (or assurance," as it is sometimes called, more particularly in reference to life insurance) means a contract whereby one party, in consideration of being paid a stipulated sum or premium, undertakes to insure another against a risk to which he is exposed.

The party who takes upon himself the risk is called the Insurer, or the Underwriter.

The party protected by the insurance is called the Insured.

The sum paid by the insured is called the premium.

The instrument containing the contract to insure is called the Policy, and

The contingency insured against is called the Risk.

Of these terms, it is worthy of note that the word "assurance,' (or, as we now call it, "insurance") is of Italian origin, as is also the

word "policy," derived from "polizza," a promise. This is a reminiscence of the Lombards, who came over to England in the 13th century and established themselves in London, in the place which became known, and is now known, as Lombard Street. At first these Italians engaged in money-lending, but afterwards marine insurance became an important part of their business. Marine insurance was, however, practised both in England and in other countries long before the Lombards set foot in London.

The first English Act of Parliament relating to Marine Insurance was passed in the 43rd year of the reign of Queen Elizabeth (1601), and was entitled "An Acte concerninge matters of Assurances amongste Merchantes." In the preamble to the Act it is stated that marine insurance had "bene tyme out of mynde an usage amongste merchantes, both of this realme and of forraine nacyons," but up to that date marine insurance had been carried on chiefly, if not entirely, by Germans, Flemings, and Italians resident in London. Their principal business was banking or money-lending, but marine insurance was a not unimportant part of it. The insurance had to be effected at the offices of the underwriters, but as trade increased the merchants, brokers, shippers, and other persons interested found it advisable to appoint meeting-places for mutual convenience.

Lloyd's Coffee-House.-About the end of the 17th century coffee was first introduced into England, and as it soon became very popular numerous places were established in different parts of London for the sale of the new beverage. These places were called "coffee-houses," and being situated in the business parts of the metropolis, they gradually became recognised meeting-places for the transaction of all kinds of mercantile business. One of these coffeehouses, kept by a Mr. Lloyd, soon became the resort of persons engaged in shipping, and ultimately the headquarters of the marine insurance business. In 1696 this Mr. Lloyd established under the name of Lloyd's News, a newspaper containing a variety of commercial and shipping information derived from places at home and abroad. This was one of the earliest commercial newspapers started in England, and was the precursor of the shipping newspaper called Lloyd's List, which is issued at the present day.

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A large amount of business continued to be transacted at Lloyd's coffee-house, but eventually a species of gambling under the pretence of insurance was gradually introduced and increased rapidly. The Legislature, therefore, stepped in to suppress these wager policies," as they were called, and it was enacted that a policy of insurance was not valid unless the party insured had an insurable interest in the subject matter of the insurance. This law is in existence to-day.

Lloyd's. In order to further put down these "wager policies," and to prevent the discredit thereby attaching to the insurance business, the underwriters and brokers frequenting Lloyd's decided to form themselves into an Underwriters' Association, into which none but persons of good repute should be admitted. This Association was formed in 1770, under the name of Lloyd's, and, abandoning the coffee-house, became permanently located at the Royal Exchange, London. The Association has since been very prosperous, and has been gradually developed and improved. In 1871, just 100 years after its original formation, it was incorporated by Act of Parliament under the name of "The Corporation of Lloyd's."

The management of the Corporation is entrusted to an elected committee, known as the Committee of Lloyd's. Certain forms and rules relating to insurance matters have been drawn up by this Committee, and are generally adopted by the British ship-trading community in all parts of the world. The Lloyd's Policy now in use, which was officially adopted by Lloyd's in 1779, is the standard form for underwriting, and the words "Lloyd's Clauses," or the "Practice of Lloyd's," are frequently inserted in policies issued by insurance companies and other parties.

In addition to this, Lloyd's issue a number of valuable publications relating to shipping matters. Prominent amongst them is the "Official Register of Shipping," which contains a full description and classification of every steamer or ship registered in Great Britain.

Lloyd's is now known all over the civilised world as the headquarters of the marine insurance business, and the Corporation has agents at all the principal seaports at home and abroad. The duty of these agents is to transmit to the head office, both by wire and by mail, early information concerning ships and shipping, such as names