market value fell below 15c. a pound, we regret to advise you that we have been unsuccessful in finding any market for an insurance of this character.
We have made a thorough canvass of the Insurance market, and, through our London correspondents, have thoroughly tried the market at London Lloyd's, but have not obtained a single offer to write such a policy at any rate.
We regret our inability to assist you in obtaining this protection, but it is our opinion that losses of this character are uninsurable losses at any obtainable premium.
Yours faithfully,
Mather & Co.
May 29, 1920.
Mather & Co.,
226 Walnut Street,
Phila., Pa.
Gentlemen:—
After the trouble that you took in communicating with Lloyd's, I dislike troubling you again, but, can you accomplish my purpose, you will render me a great service.
In estimating the cost of our production, we have, among other things, to include risk, and would very much like to insure this item. Raw sugars usually sell at about one-fourth of the present market price. We are compelled to buy large quantities, and, on the average, considerably ahead of the dates of delivery, and are under the constant necessity of replacing the sugars manufactured by us. If we have to estimate these items, we are largely guessing on a very uncertain and highly speculative market. Under these circumstances, it would be a relief to us and prevent misunderstandings between ourselves and the Government, if we could cover this risk for the periods likely to be involved.
Don't you think if you made a serious effort, and were able to pay say three cents a pound on a 20c. market, that Lloyd's or some one else in like enterprises, might be willing to assume the risk for us, and, could it be arranged, I feel great confidence that our Board would not only approve, but highly appreciate your service.
Yours truly, etc.
