WAR RISK INSURANCE. The Bureau of War Risk Insurance (U. S. A.) traces its origin back to 1914 in the days when the world was stunned by the European cataclysm, and found its prototype in the action taken by the British government in assuming the war time risk on vessels flying the British flag. The British government had all it could do to pro vide for its own commerce. That left neutrals to look after themselves. It was necessary for Arnerica to cover the risks on American vessels and cargoes. William G. McAdoo, then Secre tary of the Treasury, asked of Congress the au thority to establish a Bureau of War Risk In surance as an adjunct to the Treasury Depart ment. Congress passed a bill at once to provide government insurance' for American hulls and cargoes. William C DeLanoy, a prominent in surance broker of New York, was appointed to establish and direct the new government bureau.
Mr. DeLamy continued in office as Director of the Bureau of War Risk Insurance until October 1918 and was succeeded by Col. Henry D. Lindsley who took office in December 1918, resigning in the spring of 1919 to be in turn succeeded by Col. R. G. Cholmeley-Jones, the present Director of the Bureau.
Mr. DeLanoy began business on 2 Sept. 1914 with an office force of four persons, yet on the first day of his incumbency Mr. DeLanoy wrote several hundred thousand dollars worth of in surance on American ships and cargoes. This marine insurance remained the only form of war risk insurance until June 1917 when Con gress amended the original war risk bill to es tablish a Seamen's Division to insure the lives of officers and crews of American mer chant vessels in sums ranging from $1,500 to $5,000 according to their scale of pay. On 12 June 1917 President Wilson approved the amend ment to the Act of 1914 under which the War Risk Insurance Bureau was authorized to insure the masters and crews of American merchant vessels against loss of life or disability on ac count of rislcs of. war and to provide for com pensation to Umted States prisoners of war while detained in enemy countries. Under the amendment compensation was authorized in case of death, pertnanent or total disability, or loss of both hands, both arms, both legs, both feet, both eyes, or any two of these, amounting to one year's earnings or 12 times the monthly earnings, not less than $1,500 nor more than $5,000. There were also specified certain com pensations: 50 per cent of one year's earning-s for the loss of one hand; 65 per cent for one arm; 50 per cent for one foot; 65 per cent for one leg; 45 per cent for one eye and 50 per cent for total loss of bearing. There was estab
lished a department of the bureau for issu ing policies on the lives of masters and crews.
Captain John J. Crowley of the Traveler's Insurance Company vrith headquarters in Hart ford, Come, was put in charge of this Sea men's Division. Captain Crowley was a man within the draft age and had just completed arrangements for entering an officers' training camp when he was commandeered to serve his country in the capacity of insurance organizer, a task for which he was almost uniquely equipped by training, experience and tempera ment, and the success of this Dwision of Marine and Seamen's Insurance was due in no small part to the very fine work of Captain Crowley and his assistants.
The writing of marine and seamen's insur ance was suspended on 4 Jan. 1919. While in existence a total business of $2,389,952,996.54 was accomplished with the premiums on 33,381 policies atnounting to $47,593,12226, and claims paid to the extent of $28,642,789.73.
This left a surplus of approximately $18, 000,000 which, together with the $50,000,000 fund voted by Congress, reverted to the United States Treasury.
Meanwhile in the months following the en trance of the United States in the World War there arose a public demand for some desirable method of compensating soldiers and sailors for injuries and their dependents for deaths in the military and naval services. It was generally agreed that the evils of the pension system of the Civil War period should not 'be repeated. On 2 July 1917 Secretary of the Treasury Mc Adoo conferred with representatives of insur ance companies in regard to an insurance scheme to cover the war risk of those serving in the military and naval forces of the nation. The Committee on Labor of the Advisory Com mission of the Council of National Defense also co-operated; a plan of government insurance providing for both compensation and insurance was drawn up, presented to Congress and en acted into law 6 Oct. 1917. The War Risk In surance Bureau was empowered to administer the act and for this purpose the bureau was re organized into four divisions: (1) Marine and Seamen's Insurance Division; (2) The Allot ment and Allowance Division for compulsory and voluntary allotments of funds and family allowances to be paid by the government; (3) The Compensation and Insurance Claims Division for the consideration of cases of dis ability or death due to injuries or diseases con tracted during actual service; (4) and the In surance Division.