done to the other vessel a clause is very commonly inserted in the policy, by which underwriters agree that in case the ship insured shall run down and damage any other vessel and her cargo, and be found liable for such damage by any court of law or equity, or by any competent tribunal, they, the underwriters, will pay a certain portion of those expenses, (very frequently three-fourths,) in such proportion as the sum insured bears to the whole value of the ship and her gross freight. This is known as the Runningdown Clause.

How Claims are made against other Vessels.

In making a claim against the vessel doing damage those regulations we have previously spoken of, of deducting one-third of the repairs to equalise new with old, are not observed. On the contrary, a claim of the fullest kind, including every expense and loss, is made, embracing crew's wages, loss of interest, detention, &c., and the cargo can put in a claim of a similar character.

Several Interests.

Should there be several interests that have received damage, and they do not unite in a joint action against the ship doing damage, after the first interest has been satisfied by payment and the vessel has been liberated, it is competent for another to proceed against the same ship and recover. And there does not appear to be any limitation to the number of consecutive payments that may thus be enforced in respect of the same ship and freight by which the damages were done.

152

PART THE THIRD.

OF PARTICULAR AVERAGE ON GOODS. Claims for loss on merchandise insured by perils of the sea, &c., are technically distinguished as follows:1. Total loss of the whole interest.

2. Total loss of part of the interest. (Sometimes called a Partial Loss, and sometimes, Particular Average.)

3. Partial loss; by a sale at some intermediate place. (Called also a Salvage Loss; or a Total Loss with Salvage.)

4. Particular Average.

Concerning the first of these divisions it will be convenient to withhold any remarks on the subject until we come to consider the whole matter of Total Loss in one view.

The second,-Total loss of part may consist of the absolute loss of one or more packages of goods; as by an accident at the loading or unloading of cargo, upsetting of a boat, and the like. Or, it may consist of the complete washing out of some packages by the sea-water that has entered the ship; or the rotting

and entire worthlessness of a portion of the cargo from the same cause. These are rather of the nature of Particular Average, and are often classed with it in adjustments.

The third,-Partial Loss, Loss with Salvage, or Salvage Loss, consists in the sale of goods damaged by sea perils at some intermediate place where the ship has put in and the goods in question are sold at the recommendation of surveyors.

The fourth,-Particular Average, properly so called, consists of the depreciation of goods owing to sea perils, and ascertained at their place of destination. The depreciation arises from the deterioration of the quality of the goods, or from a reduction in quantity, or from both combined. Particular Average adjustments embrace two subjects, viz.,

The deterioration of the goods by sea-water; and Extra charges, in consequence of the goods being sea-damaged.

Before entering upon a more detailed examination of the various claims on goods it will be necessary to refer again to the policy and observe those clauses and expressions which apply especially to merchandise.

Subject-Matter and Scope of the Insurance. The policy states the general intention of the insurance to be " upon any Kind of Goods and Merchandise;" and its period of endurance to be as follows;" beginning the Adventure upon the said Goods and Merchandises, from the Loading thereof aboard the said Ship, and so shall con

tinue and endure

until the said Ship

and Goods and Merchandises, whatsoever, shall be arrived at," (here the destination of the interest is inserted ;) "and upon the Goods and Merchandises, until the same be there discharged and safely landed.”*

The Risks insured against.

The statement of perils, &c., covered by the policy is the same on goods as on the ship; there being nothing special to or exclusive of merchandises in all that portion of the policy which is printed in large roman type.

The Warranty or Memorandum.

But the Warranty contains special matter relating to goods, of very great importance; for it excludes some species of merchandise from restitution in case of damage, and it fixes the limit of deterioration which must be reached in other species in order to constitute a claim on the underwriter, viz.: "Corn,

*In Harrison v. Ellis (Queen's Bench, April, 1857), an attempt was made to throw on a time policy on goods the risk of cargo in a warehouse on shore. The insurance was one upon a fluctuating interest, viz., on goods in the bartering trade of Africa, intended to protect a certain amount of value whether the interest happened to be outward goods, produce home, or intermediate goods whilst bartering. There was oil in a factory on shore, from which factory the homeward cargo would have been shipped; but it never left the warehouse, which was burnt before any of the oil was sent on board. Lord Chief Justice Campbell and the other judges in delivering their judgment are conclusive that goods in a warehouse on shore, whatever their destination may be, are not, in ordinary circumstances and without a very special clause to the effect, interest attaching to a marine risk.

Fish, Salt, Fruit, Flour and Seed, are warranted free from Average, unless general or the Ship be stranded; Sugar, Tobacco, Hemp, Flax, Hides, and Skins, are warranted free from Average under Five Pounds per Cent. ; and all other Goods are warranted free from Average under Three Pounds per Cent.; unless general or the Ship is stranded."

Thus, then, the policy gives security to the goods from the moment they are loaded on board the ship. And there is generally a further clause added in writing to this effect, "Including risk of Craft and Boats to and from the Ship." So that protection under the policy commences from the minute the goods leave terra firma to be taken to the ship, when it is necessary to cross water to do so, and that protection ceases simultaneously with their safe arrival on shore at their destination. The written clause of craft risk from the ship appears, indeed, superfluous here, since the wording of the policy itself continues the underwriters' liability until the goods are safely landed.

The warranty now, as in the case of the ship, interposes to protect the underwriter from insignificant, frivolous and vexatious claims. But as affecting merchandise it has other important objects. There are certain kinds of goods which are more susceptible of injury than others; and there are some which contain, as it were, the causes of deterioration or destruction within themselves, so that the very - smallest access of sea-water to them is able to set on foot an action which may afterwards go on and