not recoverable from theunderwriters, are nevertheless divisible between the owners of the ship and cargo, the former paying one-third and the latter two-thirds.

When the evidence laid before the underwriters is satisfactory, the papers are laid before an average stater, who adjusts the average between the parties.

The contributory value of the ship, cargo and freight, forthe purpose of making a general average adjustment, is different from the values just now stated for the purpose of making a total loss claim. In the former case they are as follows:—

The ship contributes according to its value at the time of its arrival at the first port after the general average claim has arisen.

The cargo contributes according to its market value, without any abatement for freight, duty, or landing charges.

The freight contributes according to the actual amount finally received after paying thereout the full expenses in earning it.

Whenever a ship has been repaired in consequence of a partial loss, the underwriters are entitled to make certain deductions as the difference in value between new and old material, amongst them may be mentioned a deduction of one-third of the expenses of repairing the ship, replacing lost articles, &c. This third is deducted for labour as well as materials. One-sixth is deducted from the cost of all chain cables replaced; a fifth of the cost of copper sheathing replaced in the

second year and succeeding years, but nothing is deducted for the first year.

No deduction is made from the cost of new anchors. These deductions are not made in the case of new ships. A ship is considered new during her first voyage. Some mutual marine insurance societies consider a ship new for the first twelve and some the first eighteen months. A voyage out to New York and back is considered a first voyage.

When the average has been adjusted the statement is submitted to the underwriters, who, if they admit the claim, usually endorse upon the policy a statement that the claim is allowed and adjusted at so much per cent. The broker collects the money, for which he charges a small fee.

Usually claims are punctually paid as soon as the adjustment is complete; but, according to the custom at Lloyd's, underwriters have one month allowed for paying, and the broker one month for collecting.

In claiming upon the underwriters in respect of a foreign average, all the papers submitted to the foreign average stater must be laid before them.

Practical Observations on Making Claims.

In addition to the instruction contained in the preceeding pages the few following general practical observations upon this part of the subject may prove useful both to the shipowner and master.

Whenever any damage has been sustained by either ship or cargo, whether arising from an avoidable or an unavoidable cause, and whether it be a general or a particular average loss, the master should immediately thereafter enter every particular connected therewith in his log whilst fresh in his memory.

He should also as soon as he reaches his destination, or if he puts into an intermediate port—when he reaches such intermediate port-duly make his protest, faithfully declaring the cause of the damage which has been sustained by either the ship or cargo.

He should also cause proper surveys to be held by duly qualified persons for the purpose of ascertaining the extent of the damages sustained.

Due and timely notice of the time and place of holding such surveys, and by whom they are to be made, should be given by the master to all persons who may be interested in the matter, and, if the loss is a general average one, to all persons who may be liable to contribute thereto; should they not be resident on the spot, the notice should be given to their agent, so that they may attend the survey if they think fit. These steps are necessary to protect the interest of the parties upon whom the loss may ultimately fall, as well as to enable them more readily to recover the amount from their underwriters.

If the loss is a general average loss, it must be adjusted at the port of discharge; in this case the master should make up an account of the losses and expenses

incurred as speedily as possible. These accounts, together with the protest surveys, a statement of the freight earned, the various vouchers supporting the account, and all other papers or statements tending to elucidate the matter, must be submitted to an average stater, for him to adjust the loss. The average stater will apportion the loss between the parties liable to contribute. As soon as the adjustment is received, the master or his agent should claim from the owner of the cargo the amount he is liable to contribute; and until this is paid, the master should on no account part with the cargo; unless he has received satisfactory security for its payment.

This security may be in the form of a bond or an agreement, the difference betwen them is this, the bond makes the debt a special debt, and binds the heirs ; whilst an agreement makes the debt a simple contract one, and is not binding on the heirs, only upon the personal representatives-viz., the executors or administrators. Both these documents require stamping; the agreement with a sixpenny stamp, and the bond with a stamp equivalent to the amount to be recovered under it.

If through any negligence on his part the assured fails to recover the amount of contribution due from the owner of the cargo, the loss will be his own, as he cannot recover it from the underwriters.

VOCABULARY.

Barratry.-Any fraud committed by the master or mariners against the owners. A master who is sole owner cannot be guilty of barratry.

Bottomry-is a contract entered into by the owner of a ship, whereby for a pecuniary consideration advanced for the use of the ship, the borrower engages to repay the same with interest, provided the ship terminates her voyage successfully; and binds or hypothecates the ship for the due performance of the agreement. (See infra Respondentia.)

Condition Precedent.-A stipulation by one party to a contract which must be performed before the contract becomes binding upon the other party.

Dead freight.-Damages paid by or due from the freighter for breach of charter-party in not loading a full cargo according to his agreement.

Demurrage.-Damages due from the freighter or consignee for detention of the ship beyond the time allowed for loading or unloading.

Deviation.-Any wilful or intentional departure from the true course of the voyage insured, or any unnecessary delay in stopping at an intermediate port.

Derelict. Anything abandoned or cast away at sea.

Flotsam.-When a ship is sunk, or has otherwise perished, and the goods float on the sea.