General average implies that the whole adventure has been in jeopardy.

In order that general average may arise there must have been,

(a) A loss incurred intentionally; (b) The avoidance of a danger common to the interests of all parties;

(c) An absolute necessity for some sacrifice to be made;

(d) The preservation of the ship and some portion of the cargo; and

(e) No default on the part of the person whose interest has been sacrificed.

AVERAGE IN STATISTICS. (Fr. Moyenne statistique, Ger. statistischer Durchschnitt, Sp. Promedio estadístico, It. Media statistica.)

Averages in statistics are of various kinds. The arithmetical average is obtained by dividing the total or aggregate of a series of items by the number of items in the series. If, for example, the wages of twenty different men are known, the total wage of the twenty men for one week divided by 20 (the number of men) will give the arithmetical average weekly wage. Arithmetic average for statistical purposes may be dangerous to use and is not of universal application in statistics. If one of the twenty men is a specialist and entitled to a greatly increased wage, the presence of the sum representing his payment will raise the average of all, and if the question of cost of living is under consideration, a distorted view of the average income will be obtained. If nineteen of the men receive £200 a year each and the twentieth receives £1,200, the average of the twenty would be £250 per annum. The arithmetic average is, however, very useful in many commercial statistics. Average turnover for five years is a better basis for considering statistical returns than would be the turnover in a particular year, as by averaging, peculiarities in any one year are minimised. The moving arithmetic average is sometimes used for this purpose. This moving average is obtained by taking any five

years and obtaining the average for the period; the next average is then obtained by dropping the figures for the first year and taking the next succeeding year and proceeding in this way until a series of averages is obtained. E.g. turnover in 1915, £3,000; in 1916, £2,500; in 1917, £2,800; in 1918, £3,000; in 1919, £3,500; in 1920, £3,250; in 1921, £4,000; in 1922, £3,700 ; in 1923, £3,500; in 1924, £3,700. The moving average for five years, 1915-1919 is £2,960. The next item is obtained by dropping the 1915 figure and taking in the 1920 figure, giving £3,010 as the average. The third item drops the £2,500 for 1916 and takes in £4,000 of 1921, giving an average of £3,310, and so on. In this way the low year of 1917 and ultimately the boom year of 1921 take their proper proportions. In most calculations weighted averages are used, that is, averages in which the items are multiplied by certain numbers called weights before addition takes place. The weighted numbers are totalled and the totals divided by the total number of weights. Where large numbers of workers are concerned average wage is obtained in this way. If 200 men receive £4 a week, 300 receive £3 per week, and 400 receive £2 per week, we cannot say that the average wage is the total of 4, 3 and 2 divided by 3, but we must take into consideration the numbers in the group. These numbers are the weights. The weighted average is (200 × 4 + 300 × 3 + 400 × 2) (200 + 300 + 400)=£2.7 The weighted average may be obtained by using weights which have been reduced; thus, the same result could have been obtained by using 2, 3, 4 instead of 200, 300, 400. Where the weights are not round numbers an approximation will not cause any great error (q.v.). If the weights were 25, 39, and 41, we can for approximate purposes use 5, 8, and 8 as the weights.

Where averages are compiled from such data as give an unknown error so that working is not exact, we call the approximate result a descriptive average, such an average is used as a guide only and would not be useful for further working, as it would throw out our calculations.

for the benefit of all parties, or which has arisen through accident, is known as particular average. Loss of an anchor, damage to goods by sea-water, and the falling of goods overboard are examples. Losses of this kind remain where they fall, and must be borne by the owners of the goods or by the insurance companies, if they have been insured. But no compensation can be claimed from any other persons whose goods are on board.

If the loss is a partial one the amount of it is estimated by deducting the sale price of the damaged goods from the original market value.

It

This is the statement made by an average stater or adjuster, when a claim is made in case of general average. sets forth the amount of contribution to be paid by the various parties who have been concerned in the sea adventure, and whose goods have been saved by the sacrifice made.

AVERAGE STATER OR ADJUSTER. (Fr. Dispacheur, Régulateur des avaries, Ger. Dispacheur, Sp. Tasador de averías, It. Liquidatore dell' avaria.)

This is a person skilled in marine insurance affairs, who, when the insured are claiming indemnity for loss, is employed to prepare statements of the averages previous to their being adjusted by the underwriters, such statements often being of a most elaborate and intricate character, requiring great skill and experience in drawing them up.

AVERAGING. (Fr. Donner pour prix commun, Ger. Durchschnittspreis, Sp. Fijar un término medio, It. Fissare un prezzo medio.)

This is the system by which a speculator increases his transactions at a higher or a lower figure when the price moves against him, so that the average price of the whole will be higher or lower than that at which he originally purchased or sold.

AWARD. (Fr. Jugement arbitral, Ger. Schiedsrichterspruch, Sp. Decisión arbitral, It. Sentenza degli arbitri.)

An award is the finding or decision of an arbitrator or arbitrators, or their umpire, on matters in dispute between parties, before or after litigation.

There is no special form required by law in which an award should be made, nor need the award be in writing; but written award is necessary where there has been a written submission, unless a contrary intention is expressed in the submission.

a

The award must embody the decision of the arbitrator or umpire himself, though its forin may be settled by another person, e.g. the solicitor of the arbitrator. If there are more arbitrators than one, the award must be signed by each of them, and this must be done at the same time and in one another's presence.

The award must be made within three months of the submission to arbitration, unless the time is extended by notice given by the arbitrator or umpire to the parties. It is not usual for the award to be delivered except upon payment of the costs of the arbitrator or umpire. The amount of the costs may be fixed by the arbitrator himself if the submission does not otherwise provide, and the court will not interfere unless the amount is excessive.

An award requires a stamp of 108. This was fixed by the Revenue Act, 1906. Prior to that date there had been ad valorem duties imposed, varying from 3d. for awards where the amount or value

did not exceed £5, to £1 158. Od. where the amount or value exceeded £1,000. The award has the same legal effect as a judgment of the court and, if it is not satisfied, bankruptcy proceedings may be founded upon it.

As stated above, there is no special form in which an award should be drawn up. The following, however, may serve as a specimen

"To all to whom these presents shall come, I A. B. of etc. send greeting. Whereas by an agreement in writing bearing the date of etc. and made between C. D. of etc. of the one part and E. F. of etc. of the other part, the said parties agreed to refer all matters and difference between them to me (here set out in detail all the matters in dispute). Now know ye that I the said A. B. having taken upon myself the burthen of the said arbitration, and having heard and duly considered all the allegations and evidence of the said respective parties of and concerning the said matters in difference and so referred as aforesaid, do make and publish this my award in writing of and concerning the said matters so referred to me, and do hereby award that (here state in full the whole decision of the arbitrator).

BACK-BOND. (Fr. Hypothèque, Ger. Hypothek, Sp. Hipoteca, It. Ipoteca.)

This is a bond given by one who is the absolute owner of a property so as to reduce his right to that of a trust, his original right being stipulated to be given back on payment of the money borrowed on the bond.

BACK-FREIGHT. (Fr. Fret imprévu, Ger. unvorhergesehene Fracht, Sp. Flete imprevisto, It. Spese di nolo impreviste.) Permission to land certain goods at a port is sometimes refused by the authorities, as, for instance, when they are found to be contraband or not to conform to national or local requirements.

In such circumstances, a ship's captain, with the longer part of his voyage before him, or wishing to clear his ship of undesirable cargo, may have to com. mit his owners to some expense in order to return such goods to their consignors, and he is entitled to claim for the amount thus involved. The claim is described as Back-Freight."

66

BACKED-NOTE. (Fr. Permis d'embarquement, Ger. Ladeschein, Sp. Guía, It. Permesso d'imbarcare.)

This is a shipping term for a receiving note bearing the indorsement of a shipbroker. It is an authority for goods to be brought in barges alongside a ship, and for the officer in charge of the vessel to take them on board.

BACKWARDATION.

(Fr. Déport, Ger. Deportgeschäft, Sp. Deporte, It. Deporto, interesse pagato da chi giuoca al ribasso.)

There is said to be a backwardation on securities when they can be bought cheaper for the account than for money. The term is also used to represent the rate of interest, either of so much per share, or so much per cent., charged or allowed for carrying forward a bear transaction to the next settlement.

BAD DEBTS. (Fr. Créances douteuses, Ger. uneinziehbare Schulden, Sp. Deudas incobrables, It. Crediti dubbiosi.)

These are debts which are irrecoverable. The term is most frequently met with in accountancy. Unless the total of debtors is examined carefully at the end of a pericd of trading, and the debts known to be bad are written off, the balance sheet will not show the asset "Sundry Debtors" at its true value, and will to that extent be an inaccurate presentation of the state of the business affairs. In the case of debts altogether bad, the personal accounts concerned have to be credited with the amount, and closed. The auditor of the accounts should carefully examine all such debts so written off, calling for correspondence, statements, and other documents to confirm the fact that the debts are bad. Any ascertained bad debts may be deducted from the profits of a business for income tax purposes. If they are recovered subsequently they must be added to such profits. In consideration of the payment of a specified sum or sums, certain insurance companies will indemnify traders against loss through bad debts (see Bad Debts Insurance).

BAD DEBTS INSURANCE. (Fr. Assurance de créances douteuses, Ger. schlechte Schuldenversicherung, Sp. Seguro de deudas incobrables, It. Assicurazione di crediti dubbiosi.)

Insurance against bad debts is undertaken by only a very few companies, and only abnormal debts are covered under present day Excess Bad Debts Insurance; the trader himself must run a certain percentage of the risk, which he does by creating a Bad Debts Reserve. The cover granted by the policy is that,

subject to a prescribed limit in regard to any one defaulting customer, the trader is indemnified for all losses over and above a certain figure which is fixed when the policy is taken out. Policies are issued for any amount up to £10,000, and the premiums vary according to the case, i.e. according to the risk undertaken. The proposal form calls for full information regarding the business carried on and the credit system in operation.

BAGGAGE. (Fr. Bagages, Ger. Gepäck, Sp. Equipaje, It. Bagaglio.)

This is a general term used to denote luggage, wearing apparel, personal effects, etc., which are taken on board ship by passengers for their accommodation and use during a voyage. In America, the word is also used to denote luggage carried by land.

BAGGAGE INSURANCE. (Fr. Assurance de bagages, Ger. Gepäckversicherung, Sp. Seguro de equipaje, It. Assicurazione di bagaglio.)

Insurance of travellers' baggage is a form of insurance of long standing and is undertaken by most insurance offices. The insurance covers the subject matter insured, by sea and land and in all buildings, ships and places during the period of insurance against fire, loss (including theft or pilferage) and damage caused by sea water. Loss caused by delay in the Custom House, however, is not covered. Certain specified articles of value must be named and separately valued at the time of insurance. The rates vary according to the value of the articles and the period covered by the insurance, e.g. the approximate premium to cover £20 for 15 days is ls. 9d. ; to cover £100 for 12 months £5.

BAIL. This word is used with twofold meaning—

1. To indicate the person (Fr. Garant, Ger. Bürge, Sp. Fiador judicial, It. Garante) who undertakes to go surety for the appearance of another in a court of law to answer a charge made against him, so that this other person may enjoy his freedom whilst awaiting his trial; and

2. To indicate the security (Fr. Caution, Ger. Bürgschaft, Sp. Seguridad, It. Cauzione, garanzia) given for such re-appearance.

The word is derived from the low Latin, baila, a nurse, or the Old French bail, a guardian or tutor.

BAIL-BOND. (Fr. Caution, Ger. Bürgschaftsschein, Sp. Garantía, It. Cauzione.)

BAILEE. (Fr. Dépositaire, Ger. Depositar, Sp. Depositario, It. Depositario.) A bailee is a person to whom goods are delivered in trust under a contract.

BAILER or BAILOR. (Fr. Déposant, Ger. Deponent, Sp. Fiador, It. Depositante.)

This is a person who delivers goods to another in trust under a contract, to be held until reclaimed by the depositor.

BAILIFF. (Fr. Huissier, intendant, Ger. Gerichtsvollzieher, Verwalter, Sp. Alguacil del juzgado, It. Usciere, birro, fattore o agente di campagna.)

The literal meaning of this word is one who has goods placed under his bail or control. The modern meanings are—

(1) An agent, or an overseer acting on behalf of a superior. The word is derived from the middle Latin ballivus, from the classical Latin bajulus, and signifies a burden-bearer. In this sense it is now usually applied in particular to a land steward.

(2) A legal officer, acting under the sheriff, who is employed for the purpose of making arrests, levying executions, or distraining for rent. The sheriff himself is the King's bailiff, and his county is called his bailiwick.

A bailiff of a county court is one who acts under the supervision and direction of an official of the court, called the High

Bailiff. No person can act as such without obtaining a certificate of fitness from a county court judge, and the certificate will be cancelled if the judge is satisfied that there has been any irregularity or misconduct on the part of the bailiff. The bailiff must produce his certificate if called upon to do so by any person upon whose goods he levies an execution or a distress.

The fees to which a county court bailiff is entitled are set out in the following table. The table itself, together with a list of the certified bailiffs of the district, must be posted up in every County court office.

TABLE OF FEES, CHARGES, AND
EXPENSES.

I. Distresses for rent where the sum
distrained for is more than £20.
For levying distress: 3 per cent. on
any sum exceeding £20 and not exceed-
ing £50; 2 per cent. on any sum ex
ceeding £50 and not exceeding £200,

sum.

For man in possession, 58. per day; the man to provide his own board in every case.

For advertisements, the sum actually and necessarily paid.

For commission to the auctioneer : on sale by auction, 7 per cent. on the sum realised not exceeding £100; 5 per cent. on the next £200; 4 per cent. on the next £200, and on any sum exceeding £500, 3 per cent. up to £1,000, and 2 per cent. on any suin exceeding £1,000. A fraction of £1 is in all cases reckoned as £1.

Subject to settlement by the registrar in case of dispute, reasonable fees, charges, and expenses are allowed where the distress is withdrawn, or where no sale takes place, and for negotiations between landlord and tenant respecting the distress.

For appraisement (q.v.) on the written request of the tenant, whether by one broker or more, 6d. in the £ on the value as appraised, in addition to the amount of the stamp.

II. Distresses for rent where the sum distrained for does not exceed £20. For levying distress, 38.

For man in possession, 48. 6d. a day; the man to provide his own board in every case.

For appraisement, on the written request of the tenant, whether by one broker or more, 6d. in the £ on the value as appraised, in addition to the amount for the stamp.

For all expenses of advertisements, if any, 108.

Catalogues,

sale and commission, and delivery, ls. in the £ on the net produce of the sale.

Subject to settlement by the registrar in cases of dispute, if the goods are removed at the request of the tenant, the reasonable expenses attending such removal are also allowed.

BAILMENT. (Fr. Dépôt, remise, Ger anvertrautes Gut, Deposit, Sp. Depósito, It. Deposito.)

This is the name given to the delivery of a thing by one person to another in trust for some special object or purpose, and upon a contract, express or implied, to conform to the object or purpose of the trust.

Lord Holt divided bailments into six classes depositum, mandatum, commodatum, vadium, locatio rei, and locatio operis faciendi. Of these the first two