TITANIC NOT FULLY INSURED--VALUABLE CARGO AND MAIL--NO CHANCE FOR
SALVAGE--LIFE INSURANCE LOSS--LOSS TO THE CARPATHIA
SO great was the interest in the tragedy and so profound the grief at
the tremendous loss of life that for a time the financial loss was
not considered. It was, however, the biggest ever suffered by marine
insurance brokers.
The value of the policy covering the vessel against all ordinary risks
was $5,000,000, but the whole of this amount was not insured, because
British and Continental markets were not big enough to swallow it.
The actual amount of insurance was $3,700,000, of which the owners
themselves held $750,000.
As to the cargo, it was insured by the shippers. The company has nothing
to do with the insurance of the cargo, which, according to the company's
manifest, was conservatively estimated at about $420,000. Cargo,
however, was a secondary matter, so far as the Titanic was concerned.
The ship was built for high-priced passengers, and what little cargo
she carried was also of the kind that demanded quick transportation.
The Titanic's freight was for the most part what is known as high-class
package freight, consisting of such articles as fine laces, ostrich
feathers, wines, liquors and fancy food commodities.
LOST MAIL MAY COST MILLIONS
Prior to the sailing of the vessel the postal authorities of Southampton
cabled the New York authorities that 3435 bags of mail matter were on
board.
"In a load of 3500 bags," said Postmaster Morgan, of New York, "it is
a safe estimate to say that 200 contained registered mail. The size of
registered mail packages varies greatly, but 1000 packages for each
mail bag should be a conservative guess. That would mean that 200,000
registered packages and letters went down with the Titanic.
"This does not mean, however, that Great Britain will be held
financially responsible for all these losses. There were probably
thousands of registered packages from the Continent, and in such cases
the countries of origin will have to reimburse the senders. Moreover, in
the case of money being sent in great quantities, it is usual to insure
the registry over and above the limit of responsibility set by the
country of origin.
"Probably if there were any shipping of securities mounting up to
thousands of dollars, it will be the insurance companies which will bear
the loss, and not the European post-offices at all."
In the case of money orders, the postmaster explained, there would be
no loss, except of time, as duplicates promptly would be shipped without
further expense.
The postmaster did not know the exact sum which the various European
countries set as the limit of their guarantee in registered mail. In
America it is $50.
Underwriters will probably have to meet heavy claims of passengers for
luggage, including jewelry. Pearls of one American woman insured in
London were valued at $240,000.
NO CHANCE FOR SALVAGE
The Titanic and her valuable cargo can never be recovered, said the
White Star Line officials.
"Sinking in mid-ocean, at the depth which prevails where the accident
occurred," said Captain James Parton, manager of the company,
"absolutely precludes any hopes of salvage."
LIFE INSURANCE LOSS
In the life insurance offices there was much figuring over the lists of
those thought to be lost aboard the Titanic. Nothing but rough estimates
of the company's losses through the wreck were given out.
LOSS TO THE CARPATHIA
The loss to the Carpathia, too, was considerable. It is, of course, the
habit of all good steamship lines to go out of their way and cheerfully
submit to financial loss when it comes to succoring the distressed
or the imperiled at sea. Therefore, the Cunard line in extending the
courtesies of the sea to the survivors of the Titanic asked for nothing
more than the mere acknowledgment of the little act of kindness. The
return of the Carpathia cost the line close to $10,000.
She was delayed on her way to the Mediterranean at least ten days and
was obliged to coal and provision again, as the extra 800 odd passengers
she was carrying reduced her large allowance for her long voyage to the
Mediterranean and the Adriatic very much.