AN INSURANCE PROBLEM

Poverty Bay Herald, Volume LIV, Issue 16705, 24 July 1928, Page 3

AN INSURANCE PROBLEM

BUILDING OF GIANT SHIPS DELAYED LONDON, May 24. Nothing lias been heard recently of the giant Atlantic liners which the Ouriard and White Star compauies ha.ve in view. Tliat these ships are projected was announced last autumn by Mr. Franklin, president of 'the International ••Mercantile Marine, and Sir Ashley Sparks, resident director of the C'unard Co. in New York. It is understood Chat the" ships'have been fully designed, and both companies arc known to be in urgent need of the tonnage; 'but the actual building of them is held up because of difficulties in arranging terms of insurance for the huge risks involved. For once even "Lloyd's" has been found to hosiLnle u.boitt undertaking a big item of business. Two factors are responsible for (his. first, each ship- will cost about, £5,000,000, and £10,000,000 worth of risk in the Iwo bottoms is no light matter even for Lloyd's. Second, marine insurance firms have had a bail time in lite last three years, and they are re I admit, to lake this very big risk except on terms at which the companies demur. Meanwhile, two giant German liners, the Etiropa, and (he Bremen, are making ready for (heir contemplated at tempi, to secure the speed record for the. voyage across the Atlantic— Dominion. ■ •