GENERAL AVERAGE. It is the established usage that whatever of either of the three commercial interests -the ship, the cargo, or the freight -is voluntarily sacrificed or destroyed for the general good, or with the view of saving the most that may be saved when all is in imminent danger of being lost, is matter of general loss to the respective interests, and not more especially to the interest voluntarily abandoned than to the others. So, too, the losses and damages incident to the voluntary sacrifice, and collateral therewith, together with the expenditures which the master has been compelled to make for the general good, in consequence of disaster, are matters of general average, or are to be contributed for, pro rata, by the several interests. The contributory interests are the ship, the cargo, and the freight, at their net values, independent of charges, premiums paid for insurance, &c. The contributory value of the ship, generally, is her value at the port of departure at the time of leaving, less the premium paid for her insurance. The contributory value of the cargo is its net value, in a sound state, at the port of destination, if the voyage be completed; or its invoice value if the voyage be broken up and the cargo returned to the port whence it was shipped; or its market-value at any intermediate port, where of necessity it is discharged and disposed of. The value of the goods jettisoned, and to be contributed for, is their value after the same manner; and that value is a part of the contributory value of the cargo, as well as a matter of general average. The contributory value of the freight, generally, is the gross amount or amount per freight-list, less one-third part thereof, in most of the States; but, in the State of New York, one-half thereof, for seamen's wages and other expenses. The loss of freight by *jettison, when any freight is earned, is matter of general average. If the cargo is transshipped on board another vessel, and in that way sent to the port of destination, the contributory value of the freight is the gross amount, less the sum paid the other vessel. The voluntary damage to the ship, with a view to the general good, such as throwing over her furniture, destroying her equipments, cutting away her masts, breaking up her decks to get at the cargo for the purpose of throwing it over, &c., is contributed for at two-thirds the cost of repairing and restoring; the new articles being supposed one-half better, or worth one-half more, than the old. If we let V contributory value of the vessel, C=contributory value of the cargo, F contributory value of the freight, daggregate amount of losses to be averaged, then d÷(V+C+F)=r, the per cent. of each interest that each must contribute, and VXrVessel's share of the loss, CXr Cargo's share of the loss, Freight's share of the loss. When a contributory interest's share of the loss is to be distributed among the several owners of that interest, the same pro rata method is to be observed: thus AXrsum A must contribute, A, B, and D being A's, B's, and D's respective shares in that interest. 1 ASSESSMENT OF TAXES. amount of taxable property, real and personal, as per grand list. A: AT amount of money to be raised, including the whole poll-tax. poll-tax per head. rrate per cent. to be raised on taxable property. P b = T=A—hn. r=T÷G. Pr+b=P's tax, including poll. INSURANCE. INSURANCE is a written contract of indemnity, called the policy, by which one party (the insurer or underwriter) engages, for a stipulated sum, called the premium (usually a per cent. on the value of the property insured), to insure another against a risk or loss to which he is exposed. Let P Principal, or amount insured on, r = rate per cent. of insurance, a = premium for insurance. a=Pr. ra÷P. Pa÷r. EXAMPLE.What is the premium for insuring on $4500 at 11 per cent.? 4500 .015$67.50. Ans. LIFE-INSURANCE. Life-insurance is predicated upon the even chance in years, called the expectation of life, that an individual in general health at any given age appears by the rates of mortality to have of living beyond that age. The Carlisle Tables of Expectation, column C in the following tables, are used almost or quite exclusively in England, and by some insurance-companies in the United States; while those by Dr. Wigglesworth, column W, computed with special reference to the rates of mortality in this country, are used by others. The Supreme Court of Massachusetts has adopted the Wiggles worth rates of expectation in estimating the value of life-annuities and life-estates. TABLE Of Ages and Expectations from Birth to 103 Years. Thus, by the tables, a man in general good health at 21 years of age has an even chance, by the Carlisle rate of mortality, of living 40 years longer; by the Wigglesworth rate, of living 338 years longer. So a man in general good health, at 60 years of age, has, by the Carlisle rate, an even chance of living 14.34 years longer; by the Wigglesworth rate, an even chance of living 15.45 years longer, etc. FELLOWSHIP. FELLOWSHIP calls for the distribution of a given effect to each of the several causes associated in its production, proportional to their respective magnitudes one with another. It is a rule, therefore, adapted to the use of partners associated in business, in achieving a pro rata distribution among themselves as individuals, of the profits or losses pertaining to the company. RULE. Multiply each partner's investment or share of the capita! stock, by the whole gain or loss, and divide the product by the sum of all the shares, or gross capital. EXAMPLE. Three men, A, B, and C, enter into partnership. A invests $500, B $700, and C $300. They trade and gain $400. What is each partner's share of the profits? A, $500 500 X 400 1500 = $133.33 A's share. 66 $1500 gross capital. $400.00 Proof. EXAMPLE.-D's investment of $600 has been employed eight months; E's, of $500, five months; and F's, of $300, five months; the profits of the company are $500, and are to be divided pro rata among the partners. What is each partner's share? D, $600 X 8 66 = 4800 X 500 ÷ 8800 = $272.73, D's share. 8800 142.05, E's 85.22, F's $500. Proof. EXAMPLE. - Of $120 distributed, there were given to A, ; to B, ; to C, ; and to D, , and there was nothing remaining. What sum did each receive? |