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CHAPTER XXIII THE FINANCIAL LOSS TITANIC NOT FULLY INSURED—VALUABLE CARGO AND MAIL —NO CHANCE FOR SALVAGE—LIFE INSURANCE LOSS—LOSS TO THE CARPATHIA
  
  
  
  
  
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23. CHAPTER XXIII
THE FINANCIAL LOSS
TITANIC NOT FULLY INSURED—VALUABLE CARGO AND MAIL —NO CHANCE FOR SALVAGE—LIFE INSURANCE LOSS—LOSS TO THE CARPATHIA

SO great was the interest in the tragedy and so profound the grief at the tremendous loss of life that for a time the financial loss was not considered. It was, however, the biggest ever suffered by marine insurance brokers.

The value of the policy covering the vessel against all ordinary risks was $5,000,000, but the whole of this amount was not insured, because British and Continental markets were not big enough to swallow it. The actual amount of insurance was $3,700,000, of which the owners themselves held $750,000.

As to the cargo, it was insured by the shippers. The company has nothing to do with the insurance of the cargo, which, according to the company's manifest, was conservatively estimated at about $420,000. Cargo, however, was a secondary matter, so far as the Titanic was concerned. The ship was built for high-priced passengers, and what little cargo she carried was also of the kind that demanded quick


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transportation. The Titanic's freight was for the most part what is known as high-class package freight, consisting of such articles as fine laces, ostrich feathers, wines, liquors and fancy food commodities.

LOST MAIL MAY COST MILLIONS

Prior to the sailing of the vessel the postal authorities of Southampton cabled the New York authorities that 3435 bags of mail matter were on board.

"In a load of 3500 bags," said Postmaster Morgan, of New York, "it is a safe estimate to say that 200 contained registered mail. The size of registered mail packages varies greatly, but 1000 packages for each mail bag should be a conservative guess. That would mean that 200,000 registered packages and letters went down with the Titanic.

"This does not mean, however, that Great Britain will be held financially responsible for all these losses. There were probably thousands of registered packages from the Continent, and in such cases the countries of origin will have to reimburse the senders. Moreover, in the case of money being sent in great quantities, it is usual to insure the registry over and above the limit of responsibility set by the country of origin.

"Probably if there were any shipping of securities mounting up to thousands of dollars, it will be the insurance companies which will bear the loss, and not the European post-offices at all."

In the case of money orders, the postmaster explained,


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there would be no loss, except of time, as duplicates promptly would be shipped without further expense.

The postmaster did not know the exact sum which the various European countries set as the limit of their guarantee in registered mail. In America it is $50.

Underwriters will probably have to meet heavy claims of passengers for luggage, including jewelry. Pearls of one American woman insured in London were valued at $240,000.

NO CHANCE FOR SALVAGE

The Titanic and her valuable cargo can never be recovered, said the White Star Line officials.

"Sinking in mid-ocean, at the depth which prevails where the accident occurred," said Captain James Parton, manager of the company, "absolutely precludes any hopes of salvage."

LIFE INSURANCE LOSS

In the life insurance offices there was much figuring over the lists of those thought to be lost aboard the Titanic. Nothing but rough estimates of the company's losses through the wreck were given out.

LOSS TO THE CARPATHIA

The loss to the Carpathia, too, was considerable. It is, of course, the habit of all good steamship lines to go out of their way and cheerfully submit to financial loss when it comes to succoring the distressed or the imperiled at sea. Therefore, the Cunard line in extending the courtesies of the sea to the


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survivors of the Titanic asked for nothing more than the mere acknowledgment of the little act of kindness. The return of the Carpathia cost the line close to $10,000.

She was delayed on her way to the Mediterranean at least ten days and was obliged to coal and provision again, as the extra 800 odd passengers she was carrying reduced her large allowance for her long voyage to the Mediterranean and the Adriatic very much.


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