I cannot but observe, sir, that this kind of fraud is more formidable, as it may be practised without a possibility of detection: had the captain, instead of stranding, destroyed his vessel, how could his wickedness ever have been discovered; or how could the South sea company's ship have been brought home, had it been sunk in some distant corner of the world.
This practice, sir, and the frauds which it has occasioned, and the suspicions which the easy practice of frauds always creates, have produced so many trials, and filled the courts of justice with such intricate contentions, that the judges, who know, perhaps, nothing of this practice but from its effects, have often declared it to be so pregnant with contests and cheats, that it ought not to be suffered, and that a law for suppressing it would much contribute to the establishment of peace, and the security of property.
I am not insensible, sir, of the force of the argument made use of by the honourable gentleman who spoke in favour of this practice, and cannot but allow it that regard which his reasonings always deserve; it is the strongest, and perhaps the only argument that can be produced. His assertion of the impossibility of estimating the real value of a ship, or of foreknowing the success of a voyage, is incontestable: but perhaps it will follow from thence, not that an imaginary value ought to be admitted, but that no insurance ought to be allowed, where there is no rational method of ascertaining it; or, at least, that all such insurance ought to be rather below the probable value than above it.
If the grievance complained of has been proved not to be imaginary, we ought, doubtless, to consult how it may be remedied; nor do I believe that our consultations will be ineffectual, if we engage in them, not with an intention to perplex, but to inform each other. I am of opinion, sir, that the importance of the question requires a committee; nor can I discover any essential defect in the bill, which should hinder it from passing into a law.
Mr. BURRELL spoke to this effect:—Sir, I am convinced by experience, as well as reason, that so many inconveniencies arise from this method of insurance, that it affords so many opportunities of fraud, and gives such encouragement to negligence, that I shall willingly concur in any measures that may effectually suppress it.
It is, sir, too well known to require proof, that interest is the parent of diligence, and that men attend to the performance of their duty, in proportion as they must suffer by the neglect of it; and, therefore, every practice that deprives honesty of its reward is injurious to the publick.
But that this is the consequence of estimating ships at an imaginary value in the offices of insurance, is, to the highest degree, evident. When a ship is estimated above its real value, how will the commander suffer by a wreck, or what shall restrain him from destroying his vessel, when it may be done with security to himself, except that integrity, which, indeed, ought to be generally diffused, but which is not always to be found, and to which few men think it safe to trust upon occasions of far less importance.
To show, sir, that I do not indulge groundless suspicions, or magnify the bare possibility of fraud into reality; that I do not blacken human nature, or propose laws against wickedness that has not yet existed; it may be proper to mention some letters, in which I have been informed, by my correspondent at Leghorn, of the state of the ships which have arrived there; ships so weakly manned, and so penuriously or negligently stored, so much decayed in the bottoms, and so ill fitted with rigging, that he declares his astonishment at their arrival.
It may deserve our consideration, sir, whether the success of the Spanish privateers may not be, in great part, attributed to this pernicious practice; whether captains, when their vessels are insured for more than their value, do not rashly venture into known danger? whether they do not wilfully miss the security of convoys? whether they do not direct their courses where privateers may most securely cruise? whether they do not surrender with less resistance than interest would excite? and whether they do not raise clamours against the government for their ill success, to avoid the suspicion of negligence or fraud?
That other frauds are committed in the practice of insuring, is well known to the honourable gentleman: it is a common practice to take money upon bottomry, by way of pledge, for the captain's fidelity, and to destroy this security by insuring above the real value; so that the captain may gain by neglecting the care of his vessel, or, at least, secure himself from loss, and indulge his ease or his pleasure without any interruption from the fear of diminishing his fortune.