12. Hewlett becomes a guest at Porter's hotel, and while he is there the hotel is destroyed by fire. Porter is free from negligence. Is he liable to Hewlett for baggage lost in the fire?

13. Porter gave notice to his guests according to statute that he would be liable for money or valuables only when they were placed in the office safe, and not when they were left in their rooms. Hewlett left $1000 in bank notes locked in his trunk in his room. This was broken into and the money stolen. Was Porter liable?

14. Hewlett was received as a guest by Porter, and after staying three days packed up his trunk preparatory to leaving. Porter refused to allow him to remove his trunk from the hotel until his bill was paid. Had Porter this right?

15. The Pony Railroad Company, owners of a small line of railroad being constructed to convey passengers to a pleasure resort, were called upon to transport for Newton a heavy boiler. The company refused to accept it on the grounds that they had no car sufficient in size to carry it nor any facilities to transport it. Had they the right so to refuse it?

16. Conger ships a barrel of crockery which has been but carelessly packed and with no mark placed upon it to give the carrier notice of its contents. While being handled in the usual course of transportation the crockery is broken. Is the carrier liable?

17. Clark shipped a carload of cattle from Chicago to the city of New York. While on the way one of the cattle, being vicious, gored a number of others so that they died from their wounds. Is the company liable?

1

18. The carrier receives certain goods to be delivered to one J. R. Myers of the city of New York. When the goods reach there, a person applies to the freight office and asks for the goods, stating that his name is Myers. The goods are delivered to him, and it later transpires that the party who applied was not the consignee of the goods, but a party who obtained them fraudulently. Can the consignee recover the value of the goods from the carrier?

19. Certain goods are carried by the New York Central Railroad consigned to one Powell at Buffalo. The goods reach Buffalo and are placed in the depot at four in the afternoon. A notice is mailed to Powell which reaches him the next morning. Within that time a fire occurs and the goods are destroyed. Is the railroad company responsible?

20. Drew, a passenger on the New York Central Railroad, had his trunk checked and placed in the baggage car of the train upon which he received transportation. The trunk, which was lost, contained his wearing apparel, a dress for his wife, which he had purchased on the journey,

some presents for his friends, and a sum of $20 in a purse, which money he intended to use on his journey. Was the railroad company liable for all of the contents of this trunk? If not, for what portion of it was the company liable?

21. If the company had expressly contracted with Drew that their liability for baggage should be limited to $50 and he had had notice of this limitation, would they have been liable for a greater amount?

22. Briggs checks a hand bag at a railway company's parcel room, pays Io cents, and receives a check. When he returns later and presents the check, it is discovered that the bag has been stolen. Is the railway company liable? Explain.

23. Cooper receives at 4 P.M. on the afternoon of a certain day, by registered mail, $10,000 in negotiable bonds. It is too late to lock them in his safe deposit box, so he goes to his bank, the vault of which is still open, and gets the bank to take the bonds for safe-keeping overnight. When he goes to get his bonds the next morning they cannot be found. Cooper sues the bank for the value of the bonds. What must he prove to recover?

24. Anson, while traveling, stops at the Denver Hotel and for safekeeping places his valuables with the owner of the hotel, who puts them in the safe for that purpose. The safe is broken open and Anson's valuables are stolen. Anson brings action against the owner of the hotel. Can he recover? Explain.

25. Warren delivered to the N. Y. C. R. R. Co. in New York a trunk to be forwarded to Chicago and two days later called for it at Chicago. It could not be found. Warren sued the company and in the suit proved the delivery to the company, the demand, and the value. The company did not offer any evidence. Should Warren recover? Explain.

26. Carr finds on the sidewalk a purse containing $10, which has been lost by Chase. Chase learns that Carr has found the purse and demands its return. Carr declines to return the purse and its contents unless Chase pays him $1 for his trouble. Can Chase recover the purse and its contents? Explain.

27. Harcourt found a valuable dog and took him into his custody. He advertised and tried to find the owner, but did not succeed. After about a month had passed, the owner of the dog discovered him in Harcourt's possession and demanded his return. Harcourt refused to return the dog to the owner until he was reimbursed for the expense incurred in advertising and caring for the dog. The owner took action to recover possession of the dog. Can he succeed? Explain.

28. Mrs. Darrow, who was to be away for several weeks, left her silverware with Mrs. Emmel, a friend and neighbor of hers, to be cared for during her absence. While Mrs. Emmel was out one afternoon, her house was robbed, and her own silverware as well as Mrs. Darrow's was stolen. Mrs. Emmel admitted that she left the door of her house unlocked the afternoon she was away. Should Mrs. Darrow bring action against Mrs. Emmel to recover the value of her silverware, could she succeed? Explain.

29. Dempsey borrowed a wagon from Thomas to use in hauling stone. Later and without telling Thomas he decided to use the wagon to make a trip to the village, a distance of about three miles. While the wagon was standing on the street, it was run into by an automobile and was badly damaged. In an action by Thomas to recover the value of the wagon, Dempsey proved that he had been in no way negligent. Can Thomas recover? Explain.

30. Hendricks delivered 50 bushels of wheat to a miller and was to receive in return for it a certain amount of flour. That night the mill and its contents were destroyed by fire. On whom does the loss of this wheat fall? Explain.

31. Samuels took his hand bag on a train with him and put it in the rack above his seat. While he was out of his seat the bag was stolen. He sued the railroad company for the value. Should he recover?

32. Rankin hired Lowery to pasture 10 head of young stock for the summer. Lowery's pasture was near a railroad and his hired man left the gate to the pasture open so that two head of the young stock got on the railroad track and were killed. Rankin took action against Lowery to recover the value of the stock killed. Can he succeed? Explain.

33. Hopper delivered a quantity of mahogany lumber to Hensel, a cabinet maker, to be made into furniture. Hensel had the work about half done when the wood and furniture were stolen. How will this case have to be adjusted? Explain.

34. As a result of an accident on a railroad, a quantity of fruit consigned to Benedict was delayed and suffered much damage. Benedict took action against the railroad company to recover. Can he succeed? Explain.

35. A street car, running down grade, got to running at an excessive speed, though not beyond control of the motorman. A passenger became frightened, jumped off, and was severely injured. He took action against the street car company to recover damages. Can he succeed?

INSURANCE

I. IN GENERAL

Insurance. The term "insurance" signifies indemnity against losses. Certain misfortunes may happen which, although by no means frequent in the experience of the average man, are of so much importance and may entail upon him such severe loss that he seeks a mode of protection. The impending loss may be the destruction of one's property by fire, flood, or cyclone; or it may be the loss of one's earning capacity, by accident to his person; or the loss to his family, by reason of his death.

Insurance is based on the principle of distribution and sharing of losses.

Insurance Companies. For the purpose of affording protection against these calamities there exist many large corporations known as insurance companies, which engage in the business of assuming such risks for a certain compensation known as a premium. These premiums, although comparatively small, being contributed by the many, form a large fund, out of which the losses to the few are indemnified.

Every state has an insurance official, whose duty it is to regulate and inspect the different insurance companies doing business in his state and to see that they are solvent and that their affairs are properly conducted.

Definition.

Insurance is defined as a contract whereby for a stipulated consideration one party undertakes to compensate the other for damage to a particular subject resulting from a specified peril. The party agreeing to make the compensation is called the insurer, or the underwriter, the other party to the contract being the insured. The written contract is called the policy, and the event insured against, the risk.

2. FIRE INSURANCE

Definition. Fire insurance is a contract whereby the insurer agrees to assume the risk and indemnify the insured for loss caused directly or indirectly by fire.

Insurable Interest. The insured must have an insurable interest in the property insured. This means that he must have an interest of such a nature that the fire insured against would directly injure him. If the person had no interest in the property upon which he obtained insurance, the only object would be a mere speculation, and the contract would not be upheld in law.

Graham had insured certain property in a factory, of which he was manager on a salary, under a contract having a number of years to run and which also secured to him important and valuable privileges to purchase the business. It was held that he had an insurable interest in the property, since its destruction would cause him a pecuniary loss.

Graham v. Insurance Co., 48 S. C. 195.

This interest may be an existing interest; as, for example, the absolute ownership, or a life interest, or a right by mortgage or lien. Or it may be only an interest in expected profits or goods, as a shipowner's right to insure goods upon which he has a claim for freight.

The owner of property does not lose his insurable interest by mortgaging, leasing, or giving an executory contract to sell it, as more than one person can have an insurable interest in the property. For example, A owns a house and lot, and leases it to B, mortgages it to C, and gives D an executory contract of sale. Each one of these four parties has an insurable interest in the house.

Divided Interest. When a house subject to a mortgage is insured for its full value, the mortgagee can recover on the policy up to the amount of his mortgage, and the owner can recover the balance of the policy being the value of the house less the mortgage. The mortgagee is entitled to recover the amount of his mortgage up to the amount of the policy whether the owner's equity is adequately insured or not. The mortgagee loses his claim to the insurance as soon as the mortgage is paid.

Form of Contract. The contract of insurance is usually in writing; although it may be oral, unless expressly required by statute to be written. In most states a standard form of policy has been established by statute.

This contract requires a meeting of the minds of the parties,