This action is upon a policy of reinsurance made by the defendant, jointly with two other companies, to the plaintiff. The sole question is as to the proper construction to be placed upon the following indorsement, which was made upon the policy: “On and after this date this policy •covers the Continental Ins. Co., as reinsurance, to the extent of one-half of the amount of each and every risk which equals or exceeds in value the sum ■of $16,000, and whicli the said Continental Ins. Co. may have on cargo of any one barge or lighter, and insured by them under their open policies issued to the following named persons, viz.: Twombly & Co., John H. Starin, N. Y. Lighterage & Transportation Co., New Jersey Lighterage Co., F. W. Jarvis & Co., Johnson & Hammond, S. Haff & Co., and F. Lawson. On cargoes of the value of $50,000 and upwards this policy is to cover the excess of $25,-000, not exceeding the sum of $50,000 on anyone cargo.” The plaintiff claims that the words italicised refer to the amount of liability specified by the assured, while the defendant contends that they refer to the real value of the cargo insured; in other words, to the actual fact on that head, rather than to the estimate of the assured. If the plaintiff’s construction is correct, then the restriction in question might be rendered practically useless; for the assured could then in all cases specify $15,000 as the amount of insurance, and that specification, rather than the real risk, would then serve as the sole guide. We agree with the plaintiff that the word “risk” in this connection does not mean “loss.” But does it for that reason mean any arbitrary sum which the assured or reinsured may fix? We think not. Force must be given to the words which here follow the word “risk,” namely, the words, “which equals or exceeds in value the sum of $15,000.” The plaintiff says this means in value to the insurer; that is, as a premium-producing sum. The defendant construes it as though it read, “which equals or exceeds in value of cargo $15,000.” We think the latter is the true construction, and that this view not only gives real effect to the limitation plainly contemplated, but is in harmony with the rest of the contract. Thus, it is in harmony with the provision of the policy that the insured shall “enter for insurance all goods at the full value thereof.” This expression negatives the idea that the assured may enter goods for insurance at any amount they please, however greatly in excess of the full value. The object is to specify the true value in •advance of any disaster, as it is also the object, under another provision, to require payment, in case of loss, of the true value on the day of the df-aster. By a previous indorsement upon this instrument, it is provided that the policy should cover “one-half of the value of all cargoes shipped by Twombly & •Co.” on certain barges. What is there meant is plain enough. The indorse
