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Mr. WIGGLESWORTH. The insurance item is a little less this year, dropping from $142,000,000 to $121,100,000.
Admiral LAND. Yes.
Mr. WIGGLESWORTH. Is that due to the reduction in the rate which you now propose?
Admiral LAND. It is due to the reduction in the rate and also due to the reduction in hazards, and it follows the standard business practice. The reduction is due to those conditions.
Mr. WigglESWORTH. The rate at present is $56.25 per dead-weight ton above 25 percent below previous rates, as I understand it.
Admiral LAND. Yes. It goes down 12percent per year.
Mr. WIGGLESWORTH. That went down to $47 per dead-weight ton as of April 1 of this year? Admiral LAND. It went down, as of April 20.
Mr. WIGGLESWORTH. Is the insurance paid out of insurance funds exclusively, or has it come at times out of the revolving fund?
Admiral LAND. Insurance premiums are paid out of the revolving fund and insurance losses come out of the insurance fund.
Mr. CHUBB. There is one exception; certain insurance was written under the 1920 act and cannot be paid out of the insurance fund under the law.
Mr. WIGGLESWORTH. Are the British paying insurance on comparable ships at this time?
Admiral LAND. The British are paying or providing insurance; yes.
Mr. WIGGLESWORTH. Do you know whether the rate is higher or lower than what we are proposing to pay?
Mr. CHUBB. The British provide war-risk insurance to their owners in the commercial war risk insurance and P. and I. clubs, and the values are based on 1939 values plus 25 percent.
Mr. WIGGLESWORTH. Do you know how that works out on a dollars-and-cents basis? Is it more or less?
Mr. CHubb. I would imagine it would be less.
Mr. WIGGLESWORTH. Would you say that the British comparable rates were more than one-third of the rates we are paying?
Mr. CHUBB. British values vary as between individual vessels. I would not want to express an opinion on that.
Mr. WIGGLESWORTH. It has been represented to me that for comparable ships on the Atlantic the insurance rate paid by the British was about one-third of the rates we are paying.
I should like to know whether that is a fact, and if that is not the fact, what is the fact.
Mr. CHUBB. The insurance rates would be about comparable. Supposedly the valuation of the individual ships would be variable.
Mr. RADNER. The last time we looked into that, the basic British insurance values for 20-year-old freighters were in the neighborhood of $40 a ton. That was the information we received. That is about 85 percent of our $47.50 value. Perhaps we can find more data on that for you.
Mr. WIGGLESWORTH. Have you any available information along that line?
Mr. RADNER. We did get something about a year ago, Mr. WIGGLESWORTH. If you have anything, I would like to know what the fact is.
Mr. RadNER. I am quite sure that the statement that British insurance values are only one-third of ours is incorrect.
Mr. WIGGLESWORTH. Has your agency ever supplied Congress with a detailed statement of its activities and expenditures and rates for any given year?
Admiral LAND. On what basis-an over-all basis?
Mr. WIGGLESWORTH. A detailed statement of its insurance activities and expenses and receipts, and so forth?
Mr. Johnson. Yes, sir. I can refer you to last year's hearings, on page 457. That has an insurance statement that is fairly comprehensive on the subject.
Admiral LAND. There is a very brief statement on page 211 of the justifications, and the tables that go with it are also here.
BASIS FOR CHARTER HIRE RATES
Mr. WIGGLESWORTH. Let me ask you this question: Does the rate of $56.25 per dead-weight ton apply to all classes of ships? Is there some differentiation as to ships under charter hire?
Mr. RADNER. All the material on that is shown in General Order 37. which you will find printed in Document No. 20A.
Mr. WIGGLESWORTH. We have had so much material submitted at the last minute that I do not know what is in it and what is not in it.
Mr. RADNER. We submitted that last year. Perhaps it should be made a part of this record also.
Mr. WIGGLESWORTH. Does it or does it not apply to all ships?
Mr. RADNER. The $56.25 value is subject to adjustment for speed, age, and other characteristics.
Admiral LAND. It is exactly on the same basis as charter hire for ships. It differs with different categories of ships.
Mr. WIGGLESWORTH. It is not a flat rate?
Admiral LAND. This basic rate applies to 10-knot, 20-year-old freighters.
Mr. WIGGLESWORTH. How many ships have you insured during the last fiscal year? Is there a table in the justifications on that?
Mr. SCHELL. If you will look at page 64, that gives you some of that data.
Admiral LAND. All the ships under charter to us are insured, and the total number is 874.
FINANCIAL STATEMENTS OF INSURANCE WRITTEN
Mr. Taber. There is not any statement here indicating the tonnage insured or the tonnage lost, nor is there a definite statement indicating what the profit or loss is.
Admiral LAND. That is all in these tables here.