124 INSURANCE OF FISHING-BOATS. 



A Mutual Marine Insurance Company, according to the 

 system I advocate, should be incorporated under the pro- 

 visions of the Companies Acts, 1862 and 1867, and its 

 position, as well as the position of the insured, would then 

 be secured. Such a company could carry on its business 

 with but little trouble, and without unnecessary risk on 

 either side. Being legally constituted, it could issue in- 

 surance policies under its seal ; and whilst, on the one 

 hand, insuring members could be compelled to pay the 

 calls made upon them, on the other hand, insured members 

 could enforce the payment of whatever might be due to 

 them. 



Entrance fees and calls. In a properly - constituted 

 Mutual Marine Insurance Company, there is no necessity 

 for the entrance fees to be large, because, whenever money 

 may be required for the payment of a casualty, it can be 

 readily raised by means of a call ; and, for the self-same 

 reason, there is no necessity for such a Company to hold a 

 large balance in hand. A respectable balance at the bank 

 is undoubtedly a very pleasant thing, but no business man 

 keeps even that if he can find more profitable employment 

 for his spare capital ; and what is true with regard to an 

 individual is equally true with regard to a Mutual Marine 

 Insurance Company. A boat-owner who insures in the 

 ordinary manner must annually pay a year in advance, and 

 as the premium is never less than 8 per cent, it follows 

 that a boat-owner who has three or four vessels must, every 

 Christmas, be prepared to pay the underwriters in hard 

 cash a considerable sum of money. If, however, he be 

 insured with such a company as I advocate, his entrance 

 premium would be only 2 per cent, while the calls which 

 from time to time might be made upon him would rarely 

 exceed 4 per cent per annum. And every business man 



