Page:History of merchant shipping and ancient commerce (Volume 3).djvu/575

 stated in the policy, however much it may exceed the actual worth of his property." In confirmation of their opinion, they add "that, in certain decided cases, the Shipowner has been allowed to recover 50 and even 100 per cent. more than the actual value of his vessel."

Various witnesses recommended that, in case of a total loss, the underwriter should be allowed to question a valued policy, when he considered that the value had been overstated; but many Shipowners and underwriters objected to this proposal, contending that, where a value had been agreed on between the Shipowners and underwriter, subsequent interference would be mischievous or futile, as it might induce Shipowners to insure abroad. It was contended that the value of a ship might depend on a variety of circumstances; for instance, the loss of a steamer to a Shipowner, about to start a new line of steam communication, would be inadequately replaced by the cost of the vessel, though estimated values of this sort are very problematical.

As regards insurance of freight, it was further suggested that the Shipowner should not, in case of total loss, be entitled to recover his freight, without deducting the expense saved to him by reason of the loss of the vessel. On the other hand, it was alleged that the necessity of estimating these uninsured expenses would give rise to doubt, difficulty, and litigation, and that, if the suggestion were adopted, the Shipowner would be to a great extent deprived of the legitimate advantage he now enjoys of being able to obtain with facility an advance on his freight.

After carefully considering all these matters, the