not fixed by the contract, the following rules are to be observed: (1) The value of a ship is its value at the beginning of the risk, including all articles or charges which add to its permanent value, or which are necessary to prepare it for the voyage insured; (2) The value of cargo is its actual cost to the insured, when laden on board, or when that cost cannot be ascertained, its market value at the time and place of lading, adding the charges incurred in purchasing and placing it on board; but this must be without reference to any losses incurred in raising money for its purchase, or any drawback on its exportation, or any fluctuations of the market at the port of destination, or any expenses incurred on the way or on arrival; (3) The value of freightage is the gross freightage, exclusive of primage, without reference to the cost of earning it; and (4) The cost of insurance is in each case to be added to the value thus estimated.

(f)—Arrival of Cargo Damaged. If cargo insured against partial loss arrives at the port of destination in a damaged condition, the loss of the insured is deemed to be the same proportion of the value which the market price at that port, of the goods damaged, bears to the market price they would have brought if sound.

(g)-Labor and Expenses.-A marine insurer is liable for all the expense attendant upon a loss which forces the ship into port to be repaired; and where it is agreed that the insured may perform labor for the recovery of the property, the insurer is liable for the expense incurred thereby; such expense in either case being in addition to a total loss, if that afterwards occurs.

(h)-One-third New for Old.-In case of a partial loss. of a ship or its equipments, the old materials are to be applied towards payment for the new, when repairs are made; and whether the ship is new or old, a marine insurer is liable for only two-thirds of the remaining costs of the

repairs, except that he must pay for anchors and cannon in full, and for sheathing metal at a depreciation of only two and one-half per cent for each month that it has been fastened to the ship.

Civil Code, Sections 2736, 2737, 2738, 2739, 2740, 2741, 2742, 2743, 2746.

Section 255aaa.-GENERAL AVERAGE.—A carrier by water may, when in case of extreme peril it is necessary for the safety of the ship or cargo, throw overboard or otherwise sacrifice, any or all the cargo or appurtenances of the ship. Throwing property overboard for such purpose is called jettison, and the loss incurred thereby is called a general average loss.

A jettison must begin with the most bulky and least valuable articles, so far as possible.

A jettison can be made only by authority of the master of the ship, except in case of his disability or an overruling necessity, when it may be made by any other person.

The loss incurred by a jettison, when lawfully made, must be borne in due proportions by all that part of the ship, appurtenances, freightage, and cargo, for the benefit of which the sacrifice is made, as well as by the owner of the property sacrificed. The proportions in which a general average loss is to be borne must be ascertained by an adjustment, in which the owner of each separate interest is to be charged with such proportion of the value of the thing lost as the value of his part of the property affected bears to the value of the whole. An adjustment made at the end of the voyage, if valid there, is valid everywhere.

In estimating values for the purpose of a general average, the ship and appurtenances must be valued as at the end of the voyage, the freightage at one-half the amount due on delivery, and the cargo as at the time and place of its discharge; adding, in each case, the amount made good by contribution.

The owner of things stowed on deck, in case of their jettison, is entitled to the benefit of a general average contribution only in case it is usual to stow such things on deck upon such voyage.

Where a person insured by a contract of marine insurance has a demand against others for a contribution, by reason of a general average, he may claim the whole loss from the insurance company, subrogating it to his own right to contribution. But no such claim can be made upon the insurer after the separation of the interests liable to contribution, nor when the insured, having the right and opportunity to enforce contribution from others, has neglected or waived the exercise of that right.

Civil Code, Sections 2148, 2149, 2150, 2151, 2152, 2153, 2154, 2155, 2745.

Section 255bbb. - PERISHABLE GOODS. What is known as the memorandum clause in policies of marine insurance, whereby the insurance company is exempted from liability for any partial loss of goods of a perishable nature, is intended to apply only where goods are perishable and there is difficulty in proving whether the loss occurred from the inherent quality of the goods or from a peril of the sea.

Section 255ccc.-ACTS OF MASTER AND CREW.The insurance company will be liable notwithstanding a lack of skill, or even negligence, on the part of the master or crew. To relieve the company from liability because of acts of the master or crew, there must be want of good faith and honesty of purpose on their part. If a ship should be run on shore by the crew and wrecked, through being placed in a dangerous position by reason of negligence or unskilfulness of the crew, this does not exempt the company from liability, where it appears that the crew were not acting in bad faith and with dishonest purpose to cause loss.

Marine Insurance Agents

Section 255ddd. - PRINCIPLES OF AGENCY. — The principles of agency stated under the head of "Fire Insurance Agents" apply equally to agents of marine insurance companies. They bind their principals in the same way; their representations as to the business entrusted to them have the same effect; they may waive conditions of the contract to the same extent; and as there is no special rule applying particularly to marine insurance agents, it will be sufficient, as to them, to refer to the subject of "Fire Insurance Agents."

Building Contracts

Section 256.-CONTRACT MUST BE IN WRITING. -In California, all building contracts must be in writing when the amount agreed to be paid to the contractor exceeds one thousand dollars.

Code of Civil Procedure, Section 1183.

Section 257.-CONTRACT OR MEMORANDUM TO BE RECORDED.-The contract itself, or a memorandum of it, must be filed for record in the office of the County Recorder of the county or city and county where the property is situated, before the work is commenced. Whether the contract or a memorandum of it be filed for record, it should contain the names of all the parties to the contract; a description of the property; a statement of the character of the work to be done; the total amount to be paid under the contract; and the amounts of all partial payments, and the times when payments shall be due and payable. All contracts which are not recorded, in the manner stated above, are declared by the law of California to be wholly void, and no recovery can be had upon the contract by either party to it. The law also provides that after the expiration of two years from the date of filing of notice of

completion of any building or improvement, the County Recorder may return the contract, plans, and specifications to the person filing the same, unless he is notified in writing by some person claiming an interest in the contract or property not to do so. If no notice of completion has been filed, the Recorder may, after the expiration of two years, destroy the contract, plans, and specifications then on file in his office. Two years from the date of the new law, the Recorder may destroy all contracts, plans, and specifications which have been in his office five years. (Act of the Legislature, approved February 15, 1905.)

Code of Civil Procedure, Section 1183.

Section 258.-RECORDER'S FEE.-The law provides that the County Recorder shall receive a fee of one dollar for filing the contract or memorandum for record.

Code of Civil Procedure, Section 1183.

Section 259.-TIME OF PAYMENTS.-The building contract must not make any part of the contract price payable before the work is commenced; but the contract price must, by the terms of the contract, be made payable in installments at specified times after the commencement of the work, or on completion of the whole work. Code of Civil Procedure, Section 1184.

Section 260.-LAST PAYMENT. The law provides that at least twenty-five per cent of the whole contract price must be made payable at least thirty-five days after the final completion of the contract. This is done to protect the liens of laborers, mechanics, and materialmen, and to protect the owner by giving sufficient time for all liens to come in before the final payment is to be made by him.

Code of Civil Procedure, Section 1184.