Harlan F. Stone

“ It is no more than a stipulation in effect, that for purposes of computation of the insurance liability the cargo shall be taken at an agreed value. Within this limitation the policy is still a policy of indemnity and the insured must prove the sound value of the cargo in order to ascertain his actual loss, by deducting from it the amount of the proceeds of the damaged cargo. In every particular average adjustment the insurer may rely on the sound value of the cargo in order to establish the extent to which the insured is a coinsurer. ”

“ The rule that the insured may recover in full for partial losses under hull insurance (International Navigation Co. v. Atlantic Mutual Insurance Co., supra; International Navigation Co. v. Sea Insurance Co. (C. C. A.) 129 F. 13; Providence & S. S. S.C.o. v. Phoenix Insurance Co., 89 N. Y. 559; contra, Clark v. United Fire & Marine Insurance Co., supra; cf. Brewer v. American Ins. Co., 123 Mass. 78) does not, we think, militate against the coinsurance rule as applied to cargo insurance, or afford support for that for which petitioner contends. ”

“ Respondent issued a war risk insurance policy for $27,690 upon a cargo of gasoline, owned by petitioner's predecessor in interest and valued in the policy at $212,000, on board the tanker Gulflight, bound from Port Arthur, Tex., to Rouen. ”