a bill to remedy the mischief which had been done, and which it had itself encouraged. Proofs were given of the deep and fraudulent complicity of the then Chancellor of the Exchequer (Aislabie), as well as of several South Sea directors and other persons of the highest rank at court and in the city. In the sequel, four members of the House of Commons who were South Sea directors were expelled the House; Aislabie was sent to the Tower; Knight, the cashier of the Company, absconded, and the estates of the chief criminals were confiscated.
But amid the numerous wildly speculative concerns then projected and launched, there were others which were sound and legitimate; among these may be mentioned the Royal Exchange Assurance Company, with a capital of 500,000l., and the London Assurance Company, with a subscription list of four times that amount. Each of these have maintained their position to this day, ranking high as marine and fire insurance associations. By their original charters they were empowered to insure ships and merchandise from the dangers and accidents of the sea, and were also authorised to lend money on bottomry bonds. Subsequently they obtained charters for insuring from loss by fire. From the first they have had no exclusive privileges, although they might well have demanded them, for, just before their formation, the losses of private underwriters had been so great that no fewer than one hundred and fifty of them had become insolvent in the previous five years.[1]
- ↑ See Reports to the Attorney-General, 1718-1720, and full details on this subject in Macpherson, vol. iii. pp. 77-114.
