and receipts per year kept rising uninterruptedly in the Gulf 

 Area from as low as 22.5 vessels and $50.1 million receipts in 

 1949.50 to as high as 37 vessels and $85-2 million receipts in 

 1953. But in 195*+-55, when receipts fell from the peak of the 

 previous year to an average of $75.6 million, vessel losses 

 jumped to as many as 55 vessels per year (table 25). Finally, 

 the unusually heavy losses since 1954 were further verified by 

 a leading insurer in the Gulf Area vho reported heavy hioll 

 insurance losses during 195^^ 1955, and part of 1956 \d.th a loss 

 ratio averaging &s high as 139 '2. 



The situation is less clear in California vhere the data show 

 direct relationship between receipts and vessel or claim losses. 

 This does not mean, however, that the hypothesis has been impugned. 

 First, the decline of receipts was relatively greater on receipts 

 from fish landings of species other than tuna or tunatlike fish. 

 Considering the period 19^1-9-5^, receipts from landings of tuna 

 or tunalike fish averaged 71 percent of $77 •! million receipts per 

 year in 19^^9-50 and as high as 77 percent of $65.5 million receipts 

 per year in 1952-54. Since as much as 70 percent of the studied 

 policy years in California were from vessels engaged in tuna or 

 tunalike fishing, loss experience may have been affected less 

 adversely than might have been otherwise possible. Second, gross 

 receipts alone do not determine profits. It has already been 

 shown in Chapter III that the hull insurance cost in California 

 rose less during the five-year period than elsewhere and it is 

 likely that other operational costs in that area behaved similarly. 

 Third, in California the loss ratio for hull insurance averaged 

 kh.k percent of earned premiums, which is below the break-even 

 ratio of the least efficient insurer and reports from a rjiy 

 quarters indicate that experience has been relatively more satis- 

 factoiy than elsewhere. In fact, favorable hull insurance 

 experience may have been due largely to the CommerciSLL Fishermen's 

 Interinsui'ance Exchange in San Pedro which very clearly illustrates 

 what C6in be accomplished by a sound cooperntive effort among 

 vessel owners. Finally, the period 1950- 5'^- may not be appropriate 

 for showing inverse relationship bet\fcen receipts and losses in 

 California. 



The association of receipts and amount of loss paid per claim 

 of protection and indoiiinity insurance is direct in both New England 

 and California (table 25). Most likely, the direct aasociation is 

 largely spurious, especially in New England, since the frequency and 

 severity of protection and indemnity insuiance claims may be profoundly 

 affected by institutional arrangements within as well as without the 

 fishing industry. Thone matters will be discussed later in this 

 chapter . 



100 



