expenses of earning it, which would have been saved if the ship had been lost. Now, this net

amount of freight is not the amount of freight which the underwriters on freight would have to pay if the ship had been lost, because they would have to pay the gross amount insured without deducting any cost of earning it, which would have been saved if the ship had been lost.

General Average Adjustment.-The words "general average as per foreign statement," the usual memorandum contained in a marine policy of insurance, only make the underwriter liable in respect of a contribution which the cargo owner has to pay to such a general average loss by foreign law, but, except to that extent, does not make him liable in respect of any loss that would not be according to English law, general average. What is general average is to be determined as per foreign statement, that is as a foreign average adjuster would state it. It is an impossibility to adopt the foreign rule as to what the cargo owner was to contribute, and exclude it as to other matters.

As we have pointed out above, long before a policy of insurance was thought of, by the law of the Rhodian Republic it was laid down that where there was a common adventure of the

property of several, if it became necessary, in consequence of perils of the sea, purposely and intentionally to sacrifice part of the property adventured for the preservation of the rest, the owners of the property preserved should contribute to the loss of the owner of that which was so sacrificed for the common benefit. This law has since been adopted in the code of every civilised country; but, unfortunately, there has been a difference in different countries as to what ought to be considered a sacrifice for the common benefit, and, consequently, a general average loss. The law of England does not consider, when a stress of canvas is put on to avoid a leeshore, and the ship is thereby strained, and water gets in to the damage of the cargo, that there is any intentional sacrifice made of part of the property imperilled for the good of the common adventure. It seems that according to the law of France and at Constantinople this would be a general average loss, though by English law it would not.

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In an ordinary English policy the words general average" would refer to that which was, according to English law, a sacrifice for the general good. Inconveniences may arise in this respect, because, when vessels are bound to a foreign country it frequently happens that

the ship and cargo are taken possession of by a foreign Court of Admiralty, and the adjustment of average takes place according to the foreign law. It is a question that has never distinctly been settled whether, under an ordinary English policy, in such cases the English underwriter could be compelled to bear what was held to be a general average loss by the law of the foreign country; and, therefore, to avoid this difficulty, express clauses have been inserted in policies. Some of such clauses have been framed on the footing that when the vessel was caught in a foreign country, and contributions had to be paid, the underwriters should bear those payments.

Suppose cargo belongs to two owners, the plaintiff and another, and damage has been done to that part belonging to the other owner, the plaintiff's part of the cargo would have to comtribute according to French law. Such a case would come within the terms "general average as per foreign statement," and the underwriters must bear the loss. In fine, the meaning of the words "general average as per foreign statement" is that although average is not to be recoverable unless general, what is general average is to be determined by the rules of the foreign law.

There is very little information to be obtained upon the question what circumstances terminate a voyage at an intermediate port, when the ship with part of her cargo on board arrives at her port of original discharge. In Fletcher v. Alexander the court was asked to decide the principle by which the average stater was to be governed in estimating the general average contribution to be paid by the shipowner to the owner of the cargo in respect of jettisoned goods (salt). Two principles were suggested in argument on the part of the plaintiff: first, that the average stater should take the value of the goods at the port of destination; or secondly, the invoice price, plus the freight, shipping charges and premiums of insurance. The defendant, on the other hand, insisted that the proper estimate was the value of the goods at the port of adjustment. Bovill, C.J., adopted the defendant's view, and not either of those suggested by the plaintiff. The general principle is where the goods of one are sacrificed for the general safety of the whole, all are to contribute according to the benefit they severally derive therefrom. In the case of jettison (that is, where the goods of a particular merchant are thrown overboard in a

1 L.R., 3 C.P., 375.

storm, which may be lawfully done to save the ship from sinking); or where the masts, cables, anchors, or other furniture of the ship are cut away or destroyed for the preservation of the whole; or where salvage is paid to re-captors, or money or goods are given as a composition to pirates to save the rest ; or where a ransom (when that was legal) was agreed to be paid to an enemy or pirate for liberating the ship; or an expense is incurred in reclaiming her, or defending a suit in a foreign Court of Admiralty, and obtaining her discharge from an unjust capture or detention; in these and the like cases, where any sacrifice is deliberately and voluntarily made, or any expense fairly and bona fide incurred to prevent a total loss or some great disaster, such sacrifice or expense is the proper subject of a general contribution, and ought to be rateably borne by the owners of the ship, freight and cargo, so that the loss may fall equally on all."

The general principle thus stated is acted upon in all courts and in all countries; but in its application different countries have adopted different rules. What rule, then, is to prevail where a ship has started on a voyage from one country to another, and, a jettison having taken place, the voyage has been brought to