in some cases that in the policy of one important American company it limits the liability of the insurer with respect to one hundred and twenty specified articles or classes of articles. Changes have been made from time to time in the memorandum to meet the needs of commerce in different places, so that no uniformity can be claimed with respect to the articles enumerated in different policies. As illustrative of the classes into which commodities are grouped, the following is given as a general form:

Memorandum.—It is agreed that bar, bundle, rod, etc., etc., .are warranted by the assured from average, unless .free from average under

general; cassia, matting, etc.. 20 per cent unless general; East India hemp, etc.... .free from average under 10 per cent unless general; bread, flax, etc. .. free from average under 7 per cent unless general. Agricultural implements, etc.... warranted free from claim or for any breakage, but liable for a total loss of a part if amounting to 5 per cent.

In ascertaining whether the memorandum percentages have been reached, no consideration can be given to general average; nor can extra charges for proving the claim or making the survey be included in the loss in order to obtain the percentage. Regard can be had only to particular average, and if the claim here exceeds or equals the percentage mentioned, then the whole-damage (not merely the excess), plus the extra charges, must be borne by the underwriter. If, however, the actual value exceeds the insured value, the underwriter pays only a proportionate part of the charges, otherwise he pays all; while all charges incurred for saving and preserving the property are recoverable, as we have seen, under the sue and labor clause.

In voyage policies it is permissible to make the insurer liable by combining successive losses, each of which is less than the stipulated percentage. On the other hand, in time policies only the losses of one round voyage can be combined

to determine the percentage, and not all losses incurred during the whole period covered by the policy. Moreover, in view of the increasing size in vessels and cargoes, it soon became apparent that although the percentage mentioned might be small, the absolute loss represented thereby might be unduly large ($5,000, for example, on a cargo of $50,000 under the 10-per-cent limitation). Consequently it has become common to subdivide risks as regards the application of percentages. Thus a cargo may be subdivided into "series," each "series" depending on the nature of the subject matter (as a certain number of bales for cotton, or chests for tea, etc.), and the underwriter made liable where the loss in respect to one of these series reaches a proper percentage. Likewise, in the case of a vessel, separate valuations are often introduced for the hull, machinery, etc., with provision that the percentage rule should apply to each valuation separately.

4. Closely resembling the agreement in the "memorandum" are the provisions (some of which are at times included in the memorandum) usually found in policies which grant exemption:

(1) From loss to goods "by dampness, rust, change of flavor, or by being spotted, discolored, musty, or moldy, unless caused by contact with sea water and occasioned by sea perils.

(2) From loss by wet or exposure of goods shipped on deck; or for leakage of certain liquids like oils, molasses, etc., unless caused by stranding or collision.

(3) From loss of freight on articles like ice and lime, unless the entire quantity be destroyed because of stranding, sinking, or fire; nor for loss of the articles themselves, unless occasioned by jettison, stranding, sinking, or fire.

(4) From loss of specie, bullion, jewels, bank notes, deeds, and the like, by providing that they "are not deemed to be included in any insurance unless specially mentioned in the policy and scheduled."

(5) From partial loss or particular average on a vessel unless amounting to a certain percentage, usually 5 per cent net of the value declared, exclusive of expenses in adjusting and proving the loss.

(6) From loss of freight or interest on the vessel unless amounting to 5 per cent net, exclusive of expenses.

(7) From loss on account of wages or provisions, except in general average when customary.

(8) From loss occasioned by jettison of deck cargo.

(9) From loss by breakage or derangement of machinery, or bursting of boilers, unless caused by stranding, collision, or fire.

5. Subrogation. This is the right by which an underwriter becomes entitled to all rights and remedies which the insured himself could have exercised in respect to any loss. This right is always granted in marine policies, and the usual wording of the clause is as follows: "In case of loss under this policy it is expressly stipulated that the insurers shall be subrogated to all rights of the insured against any persons or corporations whose acts, negligence, or default may have caused or contributed to the loss.

6. Provisions Facilitating the Adjustment of Claims.— Among such provisions most frequently used in American policies are those which stipulate:

(1) That in case of loss the company's agent must be represented on the survey, if there be one at or near the place; and, if not, then an agent of the National Board of Marine Underwriters, which agent must approve all bills for repairs or expenses.

(2) That in case of any dispute arising with reference to a loss on the policy the matter may be submitted to arbitrators mutually chosen, whose award shall be final.

(3) That the insured shall give immediate notice of loss, together with an account of all known particulars and attending circumstances.

(4) That the company shall have free access at all reasonable hours to the books, accounts, instructions, and correspondence relating to shipments and receipts covered by the policy.

7. Statement of Acts which Render the Policy Void.-In addition to the general principle already noted, that the misrepresentation or concealment of any material fact will nullify a policy, it is customary in most policies to declare the contract void for one or more of the following reasons:

(1) "In case of any agreement or act, past or future, by the insured, whereby any right or recovery of the insured, against any persons or corporations, is released or lost, which would, on acceptance of abandonment or payment of loss by this company, belong to this company but for such agreement or act, or in case this insurance is made for the benefit of any carrier or bailee of the property insured, other than the person named as insured.'

(2) In case the policy or the interest therein is sold, assigned, transferred, or pledged, without obtaining in writing the previous consent of the insurers.

(3) If any claim for loss arising under the policy is not prosecuted within one year from the date of happening.

(4) If a vessel upon a regular survey should be declared unseaworthy on account of being unsound.

8. Miscellaneous.-Under this head may be grouped the many scattered provisions, clauses, and warranties which are found in examining a large number of policies. To enumerate them all is quite impracticable, so an attempt will be made, therefore, merely to indicate their nature by giving the principal groups under which they may be classified. In the main these groups are seven in number, and include:

(1) Those provisions which exempt the underwriter from loss arising from capture, seizure, detention, or other acts of force; or which protect the underwriter from loss on account of illicit trade, or trade in contraband of war, or which

forbid abandonment except under certain specified conditions.

(2) Those exempting the underwriter from the payment of certain losses and expenses, or from paying for certain repairs, such as the customary deduction of one third from the cost of all repairs on a vessel, except where otherwise provided, as a commutation for the average difference between new and old.

(3) Those which forbid the insured to use certain ports, routes of travel, or areas of water, or else limit their use to certain months in the year.

(4) Those which prohibit, restrict, or otherwise regulate the carrying of certain articles.

(5) Those referring to the collection or return of the premium, such as the right to cancel a policy and collect the earned premium in case of the bankruptcy of the insured, or the right to retain the whole premium in case the voyage is terminated before the expiration of the policy.

(6) Those arranging for payment of losses within thirty or sixty days, as the case may be, after receipt of the proof and adjustment of the loss, together with the proof of insurable interest, and after deducting all sums due to the company.

(7) Those granting the shipmaster liberty of action in time of danger, such as proceeding to another port in case the port of destination is blockaded, or in case stress of weather or unavoidable accident makes this imperative.