Arrestment of Steamer.

The actual arrestment of a steamer is only resorted to in cases of extreme necessity, and legal assistance must be employed. As in the case of an arrestment of an individual, the steamer is precluded from making any move until a court of law has decided the issue, and during the period of legal negotiation a notice is posted on a prominent part of the ship stating that she is under arrest. This notice must be signed by a competent legal authority, but the matter is usually dealt with by the agent's legal advisers. The arrestment of a steamer may be caused by a variety of charges, amongst which number are

Claims by brokers or others which the owner cannot or will not meet;

Government action for serious irregularities;

Possession being taken by mortgagee in the event of the owner failing to meet his liabilities in this connection; or

Unmet liabilities in any direction.

The machinery for the arrestment of a steamer is seldom, if ever, put in motion unless the parties interested have every reason to contemplate the success of their claim.

Consular Requirements.

The requirements of the various consular representatives at the United Kingdom ports are well known, and briefly it may be said that vessels of foreign nationality arriving in this country require to furnish certain documents to the consular representative of the country in which they are owned, whilst all vessels bound. on voyages to certain foreign ports require to secure, before sailing, consular clearances.

A ship arriving at a foreign port, without the necessary consular clearance from port of loading, may have to pay heavy fines and also encounter delays to the steamer. Some of the consular requirements are very worrying and entail practically as much work as, if not more than, the actual Custom House clearance.

As a general rule, the hours during which a vessel can be cleared. at a foreign consulate in the United Kingdom are somewhat restricted, and it is therefore advisable to get the necessary work done in good time.

Agent's Accounts.

As soon as possible after the sailing of the steamer, the agent prepares his statement of account for the owners, in which he shows the amount of freight collected and the sums disbursed, supported, of course, by vouchers. If the steamer has freight payable at port of discharge, the agent is usually in funds sufficient to meet all his disbursements, and, as a general rule, has a small balance with which to credit the owners. In the case of a steamer

in which there is no freight to collect, the agent is kept in funds from time to time by the owners, any small balance being settled after the steamer has sailed.

Apart from the actual harbour dues and smaller charges, the agent's vouchers are signed by the master, and an agent may sometimes decline to pay an account which the master has not endorsed.

Customs Requirements.

STEAMER IN WITH CARGO FROM FOREIGN PORT. Report, No. 1 (Sale) in duplicate. Entry for free goods, No. 23 (Sale), or other form depending on the class of cargo carried. Pratique Note (from Greenock). List of Surplus Stores. Letter Declaration (Postmasters No. 472).

STEAMER IN WITH CARGO FROM HOME PORT. Report is made from previous port of call in United Kingdom if originally "in foreign." Otherwise as above.

STEAMER IN WITH BALLAST FROM FOREIGN PORT. Report No. 1 (Sale) in duplicate. If steamer has not water ballast, ballast to be entered in Entry for free goods No. 23 (Sale). Pratique note. List of surplus stores. Letter declaration (Postmasters 472). STEAMER OUTWARDS FOR FOREIGN PORT WITH CARGO. Master's Declaration and stores content for vessels outwards with cargo. No. 10 (Sale). Entry outwards, No. 25 (Sale). Victualling bill, No. 35 (Sale). A.A. Certificate (from Board of Trade). Jerque Note (from Customs). Bill of Health (No. 220).

STEAMER OUTWARDS FOR HOME PORT WITH CARGO ORIGINALLY IN FOREIGN. Report is made on arrival in triplicate, one copy of which is sent to next port of call in United Kingdom. No clearance is required.

12-(1803)

STEAMER OUTWARDS IN BALLAST FOR FOREIGN PORT. Master's Declaration and stores content for vessels outwards in Ballast, No. 7 (Sale). Victualling Bill in duplicate, No. 35 (Sale). A.A. Certificate (from Board of Trade). Jerque Note (from Customs). Bill of Health (No. 220).

STEAMER OUTWARDS IN BALLAST FOR HOME PORT ORIGINALLY IN FOREIGN. Report is made on arrival in triplicate, one copy of which is sent to next port of call in United Kingdom. No clearance is required.

Within six days of clearance of steamer having loaded cargo and/or bunkers the following forms to be lodged at the Custom House-Specification No. 29 (Sale), if coal or coke No. 29a (Sale). Bunker Coal Certificate. Customs declaration when Manifest is dispensed with.

Light Dues.

Light dues are paid on the net tonnage of cargo carrying vessels of over 100 tons net. If any cargo is loaded either on deck or on any other part of the ship not originally reckoned as cargo space, light dues are also paid on the weight of the cargo so loaded.

Bonded Stores.

If steamer takes on board any bonded stores the Victualling Bills (No. 35 Sale), and the Shipping Bills for Goods as Stores (No. 65 Sale) are usually lodged with the Customs by the people who supply the stores. If the steamer takes no bonded stores, no Shipping Bills for Goods as Stores are required, but the Victualling Bill is required for the clearance and therefore must be lodged by the agents of the steamer.

Conclusion.

In conclusion, it may be said that the work of a broker who handles steamers of various types and various cargoes is interesting. He is in a position of very considerable trust, and should at all times keep expenses at the lowest possible level, consistent with efficiency, and see that everything is done to make the steamer's stay in port as short as possible.

CHAPTER XIV

MARINE INSURANCE AND GENERAL AVERAGE

METHOD Of Effecting Insurance-Contract of Marine Insurance-Insurable Interest-Good Faith-Amount of Insurance-WarrantiesThe Voyage-Deviation-Perils-Losses-Particular Average Loss -General Average Loss-Salvage Charges-Particular Average Warranties-Sue and Labour Clause-Policy-Institute Clauses— Limitation of Liability-Various Classes of Policy-Floating Policies Mixed Policies-Stamping of Policies-Marine Insurance Brokers Cargo Insurance-General Average-General Average Sacrifice General Average Expenditure-York-Antwerp RulesInsurance against General Average Claims-Average Bond.

THE origin of Marine Insurance is very ancient, but it is supposed to have been introduced to England by the Lombard Bankers about the thirteenth century.

The phraseology of the usual marine insurance policy remains somewhat antiquated, but, as decisions on the interpretation of the clauses have been given over a period of several hundred years, it is probably as well that the original phraseology should have been retained to a great extent.

The general law of contract applies to a contract of marine insurance as to other contracts. There must be offer and acceptance, and mutual consideration, and there must be no fraud or misrepresentation.

The Marine Insurance Act, 1906, codifies the law relating to Marine Insurance, and this Act, which is given in full in the appendix, should be read carefully.

Method of Effecting Insurance.

Marine insurance is usually arranged through marine insurance brokers, who spread the risk over various underwriters and/or insurance companies. When a marine insurance broker is approached regarding the insurance of a vessel, he writes out the details of the proposed insurance on a slip which is submitted to underwriters and/or insurance companies, who, if they decide

to accept the risk, or a proportion of the risk, initial the slip and return it to the insurance broker. When the total risk on the slip has been accepted, the insurance policy is drawn up and requires to be stamped according to the sum insured.

Contract of Marine Insurance.

A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured in manner and to the extent thereby agreed against marine losses, that is to say, the losses incident to marine adventure.

A contract of marine insurance may, by express terms or by trade usage, be extended to protect the assured against losses in inland waters, or in any land risk which should be incidental to any sea voyage. The land risk, of course, applies only to goods sent by through transit to or from an inland place, and cannot apply to the ship.

Insurable Interest.

It is essential that the party taking out a policy of marine insurance have an insurable interest in the property insured. Section 5 of the Act referred to reads as follows

Subject to the provisions of this Act every person has an insurable interest who is interested in a marine adventure.

In particular, a person is interested in a marine adventure where he stands in any legal or equitable relation to the adventure, or in any insurable property at risk therein, in consequence of which he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss or by damage thereto or by the detention thereof, or may incur liability in respect thereof.

The owner of a vessel has, of course, a paramount interest, so also has the owner of the cargo, and in addition a mortgager can insure to the full value of the property, a mortgagee to the extent of his interest, a bond-holder to the value of his bond, the master and crew in respect of their wages and effects, the consignee of the cargo; and a person who advances freight may also cover himself to the value of the amount advanced. There are others who have also insurable interests in the property-for instance, an underwriter himself may re-insure his risk.

A gambling policy, where the insured has no legal interest in the property insured, is illegal, and the Act of 1906 specifically