ASSURANCE. — LLOYDS. - SCOTLAND FRIENDLY SOCIETY. - THE CHARTERED COMPANIES. HE Bubble Act, 6 Geo. I. c. 18, passed in June, 1720, empowered THE His Majesty to grant two Charters for assurance of ships, etc. Prior to the grant of the Charters it was stated in London Journal, under date 2-9 July, 1720. The two new Offices of Insurances here grow up to a monstrous height, and 'tis said they are going to take in Subscriptions for 800,000l. at 200 per cent., and it will be so hard to get into it at that price that people offer to buy these subscriptions at 20 per cent. advance already. In a word the people are bent upon projects, and where they can come in they give any price. All the Bubbles are effectually broke and come to nothing. On 12 July, the same day when the Lords Justices in Council dismissed numerous petitions for Patents and Charters for Bubble Companies, Charters were granted to the ROYAL EXCHANGE ASSURANCE, for Marine Insurances. It is said that neither Company made much progress at first, and were hawked about in Change Alley with Companies for importing Jackasses and for fatting Hogs. The above statements seem to place the two Companies in the category of Bubbles, but we shall presently see that the Royal Exchange, at the commencement, repudiated the notion that there was any attempt on their part to blow up their stock. ROYAL EXCHANGE ASSURANCE. Although the first Charter of the Royal Exchange is dated 1720, we must go back for many years in order to trace the foundation of the Society. In 1564 Letters Patent were granted to the Mines Royal Company. In 1568 the Society was incorporated as The Governors, Assistants, and Commonalty of the Mines Royal. In the same year was also incorporated another Company as The Governors, Assistants, and Society of Mineral and Battery Works. About the year 1714 these Societies seem to have amalgamated under the name of "MINES ROYAL, MINERAL, AND BATTERY WORKS," which however had then no connection with Insurance. In 1718 they determined to enter upon Marine Insurance. Amongst the schemes of the time was one-the Mercers' or Case Billingsley's Insurance (Marine). We found in the British Museum1 a pamphlet with the following title: MERCERS' HALL. A List of the names of the Subscribers for raising the Summe of One Million Sterling as a Fund for Insuring Ships and Merchandize at Sea, which Subscription was begun the 12 August, 1717, and compleated the 16 January, 1717-18. Of the Subscribers few names were recognized by us, but we may mention Case Billingsley, Case Billingsley, junr., John Billingsley, Lord Onslow, Capt. Thomas Panuwell,2) Directors of Royal Exchange. On the top of the title page was a MS. note, ROYAL EXCHANGE ASSURANCE. The Mercers' Hall Marine Company petitioned for a Charter, as did also at the same time another body of Knights, Citizens and Merchants 1 Brit. Mus., 8225 a. 38. 2 It is not clear whether the name should be Panuwell or Pannwell. We have adopted the former name from the mode of spelling used in some printed Documents. having a similar object, and like amount of subscribed Capital, of which Sir John Williams was the Leader. It being uncertain which Body would be able to secure the desired Charter, the two united and formed one body, which later on assumed the name of Royal Exchange. This was in 1718. That name is supposed to have been suggested by the new Company becoming Tenants of some of the unoccupied rooms in the Exchange. As the progress before the Privy Council was very slow, the Subscribers determined (under high legal advice) to commence business under the title of the Court of Assistants of the Mines Royal, Mineral and Battery Works, and in the course of about nine months before the date of the Charter they insured about two millions sterling. On 22 Sept., 1718, Thomas Lord Onslow (formerly Speaker of the House of Commons, and uncle of the celebrated Speaker Onslow), was chosen Governor of the Company for Insuring Ships, which had been working under the name of Mines Royal, etc. Such election led to the Company becoming generally known as Onslow's Insurance. We can scarcely think that the Company would have adopted the name of Mines Royal, etc., if the Knights, Citizens and Merchants, who were the Subscribers to the rival Company to the Mercers, had not belonged to the Mines Royal Company. We find the following announcements :— 1719. January. A Committee was appointed to manage the affairs of insuring ships and goods by the Societies of Mines Royal, Minerals and Battery Works. Two of the members were Wm. Astell and Capt. Panuwell-the party above referred to. 1719. Daily Courant, 3 March. The Societies gave notice that having received the first payment from Subscriptions towards a Joint Stock for assuring Ships and Merchandizes, they would begin Business on 9 March at their Office in Royal Exchange. Disputes would be referred to Arbitration or Law. Process to be served on the Secretary. No Officer of the Corporation to make or cause to be made from abroad any Insurance with the Corporations. Then there appeared a sheet, Reasons humbly offer'd against the Societies of the Mines Royal, Mineral and Battery Works, who have undertaken to insure Ships and Merchandizes at Sea without a Charter.1 The Attorney and Solicitor General had given opinions against the granting of a Charter. Since then the persons concerned, losing hopes after the Reports of the Attorney and Solicitor General, pur 1 Brit. Mus., 357 b. 3 chased two obsolete Charters of James I., granted for other uses; and under the title of Governor etc. of Mines Royal, Mineral and Battery Works had undertaken and carried on the business of Insurance for eleven months. At first the projectors asked 1 per cent. on Two millions. By various plausible statements and sundry promises and hopes they raised a Stock of 300,000l. As so profitable, the same people set three or four other projects on foot, and had given birth to a scandalous number of projects, many families were ruined, and Parliament was called upon to stop what had turned people's heads from trade. The following must, we think, be deemed to be a reply to the above: Reasons humbly offered by the Societies of Mines Royal, Mineral and Battery Works, who insure Ships and Merchandize with the Security of a Deposited Joint Stock.1 They stated that the chief part of Marine Insurances was done by people of small substance. They advocated a Joint Stock Company, and stated that many merchants were in favour of a Corporation, even some who at first were opposed to it. It was elsewhere stated that on 25 Jan., 1718, 286 merchants had petitioned for the establishment of such a Company. The arguments in favour of a Charter were more than those against it. The Attorney and Solicitor General, it is true, made a report against the grant of one, but the Lords Commissioners of Trade had no objection thereto. The Charters of the Mines Royal, Mineral and Battery Works were not obsolete, as they still carried on the business for which the Charters were granted. The proprietors, 400 in number, hoped for a Charter. The records of the Royal Exchange show that the Company entered on business with a perfect knowledge of how to conduct it. Sir J. Williams gave evidence before a Committee of the House of Commons, as to the funded property of the Company, the amount of business transacted, cash in bank, etc. It is said that so far from attempting to blow up their stock, as apprehended by some witnesses, they stopped further subscriptions.2 Lord Onslow, as Chairman of the Company, was apparently deemed It was written at the time war broke out with Spain. Such war was declared 16 December, 1718. 2 See, however, Sadlers Hall Insurance, p. 136, and also pp. 156, 157. to be the prime mover in the efforts to obtain a charter for the Royal Exchange. When in 1720 the Royal Exchange Assurance obtained its Charter for Marine Insurance, under authority of the Act 6 George I. c. 18, Lord Onslow's Insurance immediately merged into the new Corporation. Lord Onslow was at the time one of the Lords of His Majesty's Household, and a reason assigned for his nomination in the Charter as Governor of the Royal Exchange Assurance Corporation is that it was probably done to satisfy the King of the bona fide character of the intentions of the Corporation. He does not appear to have acted at any Court of the Corporation. 1720. 27 June. Daily Courant. The Court of Directors of the Royal Exchange give notice that the Patentees appointed by Royal Charter will hold a General Court at the Office at the Royal Exchange on 7 July; and also that they do transact the Business of Assurance. In August, 1720, Lord Onslow presented the Prince of Wales with ten shares in the Royal Exchange Assurance Corporation. The capital of the Company was to be 1,500,000l., but only a small amount of Stock was at first subscribed for-a great deal of the subscription remained unfilled.1 The Corporation was to advance 300,000l. to Government without interest for 31 years as a consideration for the Charter. Government could repay the amount on three years' notice, and so terminate the privileges of the Company, but the sum paid was never refunded. The Royal Exchange as well as the London had invested largely in South Sea Stock, and when the Bubble burst in Sept., 1720, they were obliged to plead their losses thereby as a reason for their inability to pay the full amount stipulated for. It was said also that they sustained a heavy loss on twelve Jamaica ships. In Weekly Journal, 27 August, 1720, was a notice to the following effect : At a General Council at Whitehall the Directors of the Royal Exchange and London Assurance Corporations were cautioned to keep expressly to the limitations of their Charters, that no complaint might lye against them to his Majesty. 1720. II November. Notwithstanding their care in executing the Resolutions of the last Court they were in ill posture through the malicious efforts of enemies. The meeting was called to consider measures which alone could save them from loss and ruin. Of 300,000l. due to Government only 100,000l. paid. 1 Political State, 1720, xx., p. 460. |