Note 227 — Chapter V

There are probably very few shipowners who actually over-insure ship or freight with a view to their loss, but when these are fully covered, so that a loss may become a gain, it is not in human nature to be, under such circumstances, as careful as if a loss were really a loss; and, when times are bad or ships unprofitable, the temptation to carelessness is very great.

Not long since a shipowner of high reputation and on whose word I can implicitly rely, met another shipowner, who, complaining of the bad times, in the course of conversation said: “And to make matters worse I have also had a bit of very bad luck.” “What was it?” enquired my friend. “Oh!” said he, “a ship of mine I had just sold was lost the first voyage after I parted with her.” “Well,” replied my friend, “and where was the bad luck there?” “Where?” exclaimed this “unfortunate” shipowner, “why I bought her twenty years ago, and insured her at her full value, and had kept her so insured till I parted with her.” “And what made you do that?” enquired my friend. “Oh!” replied he, “she was an old ship, and an old-fashioned ship, and I thought that if she did happen to go to the bottom I might as well have a good and a new one in her place.”

In relating this incident, my friend added that he was not less taken aback by the naïveté and apparent innocence with which these remarks were made, than by the story itself.