Summary. 
19 
a further 5 per cent, of all British steamships remaining available for foreign trade are 
captured, the cost to the State would be as follows :— 
— 
Total 
Estimated Loss. 
State’s Share. 
1. 5 per cent. loss of British steamers, homeward and outward bound, 
employed at the outbreak of war in the foreign trade of the United 
Kingdom 
£ 
1,450,000 
£ 
1,160,000 
2. 5 per cent, loss of the British steamers employed in the foreign trade of 
the United Kingdom which are neither homeward nor outward bound, 
but which may at the outbreak of war be at sea or iu ports of the 
enemy 
1,700,000 
1,360,000 
3. q per cent, loss of the British steamers employed abroad and not in the 
foreign trade of the United Kingdom and which may, at the outbreak 
of war, be at sea or in ports of the enemy 
1,175,000 
940,000 
Total Hull losses incurred by the State without premium 
4,325,000 
3,460,000 
4. 5 per cent, loss during the six months following the outbreak of war of 
all British steamers remaining available for foreign trade, after 
deduction of the above losses 
Total Hull losses incurred by the State against premium 
6,133,750 
4,907,000 
5. Value of. the cargo, carried on the steamers assumed to be lost during 
the six months following the outbreak of war, but excluding the 
cargoes carried ou the vessels at sea or in enemies’ ports on the 
outbreak of war 
(The basis of this valuation is the average value of the cargoes 
carried under normal conditions in the foreign trade of the 
United Kingdom.) 
Total cargo losses incurred by the State against premium 
8,000,000 
8,000,000 
Grand total (gross) of State’s share of estimated losses on 
hulls aud cargo in six months (without taking into account 
any premiums received) 
• • 
16,367,000 
On these assumptions the total losses on hulls ins ™^ go^oool^We estimate the 
6,133,7501., and the State’s share of those losses would be ^ ^ 
value of the steamship tonnage remaining availa e o ^ ^ nder normal conditions 
months following the outbreak ol war at 12 , , • r-r ■+ j Kingdom makes, 
each vessel in that part of our foreign trade which « withj^e as a 
on the average, ten voyages each year, counting each out ^rd andl i J id if the 
separate voyage. If that average can be ta 'en as Ledums at’ the average 
number of voyages be maintained after the outbrea > } t , be sufficient to 
rate of 1 per cent, per voyage on the new voyages would in six months 
cover the whole of the losses on hulls insured agaiins f P re ““ eg that wiU be carried 
It is more difficult to estimate the total va ue ' ^ Rowing the outbreak 
m British steamships in our foreign trade during wrm i d on the same basis ns that 
of war, but if that trade were maintained such va If tbe wbo le of those 
upon which we have estimated losses, amount to 8 , > • ii be cov ered by 
cargoes were insured with the State Office the assumed loss would 3 
premiums at the rate of 1 per cent, per voyage. . „ ^ D6 r voyage 
It is, we think, probable, that at average premtums of 1 cTh^red with the 
the greater part of the hulls would, through the Cluh M1 . g0 at 
State, but the amount of cargo so insured, an ' er i t, v the insurance 
the risk of the State, would depend largely on the facilities offered by 
market. 
» v 4.1 vfao’fird to the extent of 
We admit that we are making many assump ions, o i dg . bu ^ when every 
°ur losses and in regard to the volume and va ue o nearly 10 per cent. 
allowance is made it will be seen that, even on an assume outbreak of war and 
of all British steamers employed in our foreign tra e, w ic resnect of hulls and 
for six months thereafter are at risk, the claim on the State in respe^ 
cargo would be hut a very small percentage on the tota vo u