280 THE AMERICAN WHALEMAN 



as used by whaling owners, will be suggested by the considera- 

 tion of a representative policy. On December 4, 1830, 

 Charles W. Morgan and Samuel Rodman, Jr., joint owners of 

 the ship Magnolia^ took out insurance on both vessel and out- 

 fit in the amount of $1 1,000 for a whaling voyage "from New 

 Bedford to the Pacific Ocean and elsewhere." This sum cov- 

 ered less than one-third of the entire investment, for the ship 

 was valued at $20,000 and the outfit at $17,000 additional. 

 The premium charged for the entire voyage was 7%, or $770. 

 The policy stipulated that no responsibility would be assumed 

 for any partial loss to outfit, cargo, or vessel unless it amounted 

 to at least sjo of the value thereof; but in other respects the 

 extent of the protection granted was sweeping. "Touching 

 the adventures and perils which the said undersigned are con- 

 tented to bear, and take upon them in this voyage, they are of 

 the Seas, Fire, Enemies, Pirates, assailing Thieves, Restraints, 

 and Detainments of all Kings, Princes, or People — and all 

 other losses, and misfortunes, which have or shall come to the 

 damage of the said ship and outfits or any part thereof, to 

 which Assurers are liable by the rules and customs of As- 

 surance in Boston." ^® 



The practice of spreading risks was also carried into the 

 field of insurance; for in this case the policy was issued in the 

 name of, and the payment of any proper liability guaranteed 

 by, fourteen different persons. Each man's name was signed 

 to the document by attorney; and the extent of his liability, as 

 well as the amount of the premium to which he was eligible, 

 was shown specifically. Thus two men were liable for $1375 

 each, five for $917 each, five for $458 each, one for $688, and 

 one for $687; while in apportioning the premium $96.25 was 

 to go to each of the first two men, $64.19 to each of the next 

 five, $32.06 to each of the five in the third group, $48.16 to the 

 following man, and $48.09 to the last one. 



But business risk, the last of the three great groups of whal- 

 ing hazards, could not be covered by insurance. Neither 

 could it be eliminated. Instead, as in other industries, it was 



1^ This policy was found in a set of original whaling Insurance policy forms 

 now in the New Bedford Public Library. The manuscript does not give the 

 name of the company; but from internal evidence it seems certain that the 

 policy was written by a local mutual organization at New Bedford. 



