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[Traduction des lettres citées dans le texte et adressées à la Compagnie par Hypolite Worms, Hantier Mallet & Cie et A. Grandchamp, le 8 juin 1856, et par Hypolite Worms, le 9 juin 1856.]

The following translated copies having been read:
Letters from Messrs. Worms & Co respecting marine insurance.
(Translated Copy.)
Paris, June 9th, 1856
Mr. Geo. Copley,
Secretary to the Anglo-French Steam Navigation Company,
Grimsby
I enclose you a letter from myself, and my friends at Havre and Rouen, to the directors of the Company, stating our objections to the Shipping account, sent me on the 19th of last month for the "Eugenie" from the 12th of April to the 12th May.
I trust that you and the directors will give these objections your favorable consideration, and that you will reduce the amount £ 698 18s. 11 d. with which you have debited me.
I may also add, that it does not appear to me just, to debit me with any insurance on the freight.
Yours sincerely,
Hypolite Worms
(Translated Copy.)
To the directors of the Anglo-French Steam Ship Company Limited Gentlemen,
l have several observations to make on the account sent me by M. Copley for the first month of the "Eugenie" which I have no doubt you will consider just and reasonable; as you can have no wish to make us pay more than we ought.
In the first place, you have insured the "Eugenie" for £14,000, instead of £13,100, being £900 more than her cost and the Company having thought proper to increase the amount of insurance, the premium on the excess should be placed to its account, and not to mine as in the event of the loss, of the ship, the Company would have the benefit of the £900 insured in excess. I have never understood that I should have to pay insurance on a larger sum than the amount of the purchase money, and it is therefore only just to deduct the insurance on the £900, together with a corresponding proportion of the charges on the policy.
Permit me also to remark, that I do not see why the Company insures the vessels for more than their real value, as in the charter of the society it is stated to be the intention of the Company, to open at a future period an insurance account; and to incur on its own account a certain risk on each ship, therefore to insure at present more than the value, appears to us contrary to this avowed intention; and tends to lessen the net profits of the Company. I make this remark as a director, as it does not apply to my position as charterer.
Secondly - The rate of insurance is £10 10s. less 10 per cent, for cash; it is therefore only just, that I should pay also the insurance, less this reduction of 10 per cent., for to insure, at £9 9s. net, payable in cash, or at 10 Guineas, less 10 per cent, will amount to the same. Now, I do not see that the Company in reality pays 10 Guineas (being less 10 per cent). But as I am only debited each month with, a twelfth of the insurance (that makes at 5 per cent, per annum, nearly 2 ½ per cent), I am not entitled to the full discount of 10 per cent, but only to that of 7 ½ per cent; so that the Company shall not be a loser, for having paid cash, whilst it is only reimbursed by me by twelfths.
Thirdly. The policy of insurance bears the rate of 3 per cent "Free of Average"; my interests oblige me to make the following restriction, of which you will see the justice. I will suppose that the "Eugenie" sustains a loss to the amount of £393, if you insured her at her real value £13,100, you would be paid by the underwriters, and consequently I should sustain nothing from this loss; but owing to your insuring for £14,000, the amount at 3 per cent would be £420.
You will understand that if such a thing were to occur, and in consequence of the sum insured by you, I should be precluded from recovering from the underwriter, the Company ought to bear the loss; for having insured for £14,000 instead of £13,000 the real value.
Fourthly. You have insured as freight a sum of £3000 at a premium of £321 6s. and you debit me each month with one-twelfth of this £321 6s. It is understood that the ship is in a navigable state, and that in case of damage, I have nothing to pay whilst the ship is unfit for sea; but if no accident should occur to the "Eugenie" during the 12 months of my charter I shall have finally paid £321 6s. for insurance of freight, which becomes a very heavy charge. Be pleased to observe that the true meaning of the conditions of charter is, that we should pay a premium on the freight, in such a manner, as that if the ship should happen to be lost, the Company should receive from the underwriters a sum which would indemnify it for the Profit it might have realised, if my charter party had had its full effect during the whole year. But it never could have been intended, that the insurance should be made to fall more heavily on me, in order to give the Company a chance of profit over and above that of our real agreement. For instance, what is the real profit of the Company? 5 per cent, as interest, and 10 per cent, as profit - together 15 per cent - say on £13,100, or £1,965. Now, if the vessel should be lost in the first month, the Company would receive from the underwriters £3,000 - if in the second month, the Company would have received from me a sum equal to one-twelfth of the above £1,905 - if in the third month, two-twelfths and so on - so that if the "Eugenie" should happen, to be lost in the twelfth month, the Company would have received from me nearly the whole of the £1,965 - and would in addition receive £3,000 from the underwriters.
Against this, the Company runs the risk of the vessel sustaining damage which might prevent her being navigated for a certain time; in which case she would be in port, and not receiving anything from me or from the underwriters, but this risk does not appear to me, to be in proportion to the chance of profit arising from the insurance of £3,000 in case of total loss.
The real insurance I have to pay I consider to be this: I expect to make 2 ½ voyages per month, which according to my terms of charter with the Company will cost me about £880 per month - say £352 per voyage. Now, I think it would be easy for me to insure each voyage a sum of £353 on freight, at the rate of 1 ½ per cent - say £5 6s., which for 30 voyages will make in all £159; and which appears to me to be the real premium of insurance I have to pay the Company. At all events, it will be easy to enquire of the insurance Company what premium they would take on these conditions; and if it should exceed 1 ½ per cent, but which I do not expect, I should then in justice be bound to pay a higher premium.
I believe you will find the foregoing remarks to be well grounded, and just in every respect.
Accept, Gentlemen, the assurance of my high consideration,
Hypolite Worms
We confirm all the foregoing observations, which apply also to the "Napoleon"; excepting the difference in the amount of the purchase money, which is only £12,000.
Hantier, Mallet & Co
I confirm all the foregoing observations, which apply to the "Victoria" exactly the same as to the "Eugenie".
A. Grandchamp, Jun.
[...]
Paris, June 11th, 1856
The Anglo-French Steam Navigation Company, Grimsby
Being unable to attend the meeting of the 17th inst., we now give as desired, our opinion on the question, whether it would be desirable to in crease the size of the two last steamers to be built by Messrs. Samuelson & Co.
Our opinion is that if these Gentlemen are reasonable in the price to be paid them in addition to that of the contract, it would be advantageous to the Company that these two last ships should be constructed to carry 800 Tons of coal in summer, and 750 Tons in winter; with storerooms for 100 Tons. The builders will have to consider whether 80 horse power would be sufficient for such vessels, or whether it would be necessary to increase it to 90 or 100, and Messrs. Samuelson should proceed on this basis: that although it be advantageous that these ships steam as fast as possible, the Company nevertheless does hot require vessels of great speed and as to their draught of water, it should be as little as possible, without sacrificing their speed and other qualities.
As the charterers of the three first ships, and as probable charterers of those to follow, we now Gentlemen beg to represent, that some of the conditions of our charter party, are too restrictive to permit us to derive the greatest possible advantage from these ships and from this arises a question of great importance to the future prospects of the Company, seeing that if we succeed in employing the ships advantageously, it will be in our power to charter them from the Company on conditions more or less profitable.
We are well aware, that besides the direct interests of the Company, there are others connected with it which have assisted in its formation; and to which we are disposed to give every consideration. All we wish, is to point out, that the absolute obligation to load at Grimsby for our ports, and to return direct to Grimsby, may sometimes prevent us from availing ourselves of certain profitable freights, which might occasionally offer, and also that in some of our French ports, circumstances might occur which would render the obligation to depart from and return to Grimsby, difficult and inconvenient.
We beg then to be released from this absolute obligation in our three charter parties and that in this respect, you will grant us a certain liberty of action which we promise not to abuse of this you will always be enabled to judge, as well as to withdraw the privilege, if you should find that our commercial relations with Grimsby are not such as you may desire.
We have no doubt, Gentlemen, that you will come to a resolution on this subject in conformity with our request.
Be pleased to accept our highest regards,
Hantier Mallet & Co
A. Grandchamp, Junior
Hypolite Worms