How earnestly he blamed Plimsoll for his legislation in putting his "mark" for load line on British ships but leaving the foreigner free, with all the privileges of trading between British ports, and of loading as deeply as he pleased. The effect, he said, on the British coasting trade was, that as the foreigner could load as far as he liked, and therefore carry larger cargoes, he could accept lower rates. Many British vessels were in consequence of this competition sold out, and transferred to foreign ownership.
"I suppose he thinks it's not his business to keep the furriner from bein' drooned, yet he ties our hands and helps him take our trade, and noo he's at it agin."
Mr. Plimsoll was just then introducing a new Bill into the House of Commons at Westminster, proposing to make it illegal for Marine insurance companies to insure the hulls of vessels for more than two-thirds of their value.
With this legislation our Scotch friend was very irate.
"Does the man think I want to lose my vessels. I'm in the business as my fayther was, and I want to stay in the business. As things are I can insure for full value. If I meet an accident either I get my vessel back again, fit for her service, or I get the money and build a new and larger one. If every time I have a total loss I am to be docked of one-third of my capital, then it wouldn't be long before I'd be out of business. Ye never can keep up the British merchant marine that way."
But wouldn't it be better for the insurance companies?
"No, not at all. The insurance companies make their money, not on the ships' hulls, but on the cargoes which the ships carry. A single ship in one season will carry dozens of cargoes. We are the shuttles which carry backwards and forwards the cargo values on which the companies earn their rates. In fact, we help to earn their money for them. Where would be the cargoes without the ships? 'Gin Plimsoll had his way he'd wipe all the British ships off the seas, but we're no so bad as he wad paint us."
There was a good deal of truth in what he said, for given that the repute and moral hazard is good, it matters little so far as the owners exercise of care for the avoiding of loss is concerned, whether the insurance carried is for total value or only partial.
Needless to say the Plimsoll Bill did not carry. As evidence of our faith I may mention that in the early days, when the Niagara company was simply a family ownership, we insured only against fire and collision, carrying the whole of the marine risk ourselves. But we watched with infinite closeness the ships and our men, as is equally done now when the company insures for a portion of the value.
November in Glasgow! A mixture of smoke, fogs and grime. Never was such gloomy weather experienced. A soot of blue murkiness seemed to pervade the atmosphere. We visited and consulted with the builders of the fast steamers particularly the Fairfield Co. at Govan and the Denny's of Dunbarton. Nothing could exceed the freedom with which the fullest information was laid before us.