CARGO IN WAR TIME

Dominion, Volume 7, Issue 2237, 25 August 1914, Page 6

CARGO IN WAR TIME

, PROBLEMS FOR COMMERCIAL .MEN. , Thus early in the fray all manner of complicated questions are cropping up in commercial circles respecting -.various aspects of trade, which have, been disturbed more or less with the outbreak of hostilities in Europe. The goods that are imported from England by New Zealand are either bought .c.i.f. or f.0.b., much more frequently,,the former, which. meaiiß cost, insurance, and freight. It is pointed out that it ia better to charge,for the whole of tho charges,in London (or the port of shipment), and issue a draft for tho 1 . total- amount through the bank: In the ordinary way insurance would mean the insurance that ono was accustomed to pay on such goods. Then arises the point as to, who is responsible for any extra cost which might be incurred by the outbreak , of war—the war risk, whatever it-may be. Opinions have been sought from'legal men in Wellington on the point, and all agree that "c.i.f." would only extend to the shipment-of goods under normal conditions, and that having attended in the ordinary way to the insurance, the consignor was free of any further liability in that, respeot, which threw the' onus for tho payment of. tho war risk fin the consignee.

That, however, is not tho conclusion arrived at ,by legal luminaries in respect to increased freights on goods ordered. It is argued that when freights fall, as is sometimes tho case, consignors reaped ,tho benefit of that fall, so that when there was a rise the scale should act in precisely the 6am© way. _ The consignor Bhould pay. This question is now oc-cupying-the attention of many, owing to the increased cost incurred in' the transhipping of cargo from steamers' held up in ports other than their destinations, either by order of the owners or lessees. There is Wellington cargo being discharged at present from' a vessel lying at Freinantlo, which is in duo, course to be forwarded to this port— at whose cost? Those indent firms who have contracted to deliver on tho spot goods ordered through them are likely to lose heavily, it is stated, on current contracts. Most of the Harbour Boards dobusinoss that way, and tho municipalities in most cases act similarly. One firm recently notified the secretary of ;a northern company that tho goods to arrive would be subject to the extra payment of tho war risk, but the official made it' quite clear that the contract stated that tho goods were to be delivered on to the railway trucks at a certain point, which' appears to indemnify thff company of any liability other than what is stipulated for in tho contract".

It is not generally known that current British insurance policies on German goods afloat wore "cancolled on the declaration of war by England, for tho obvious reason that enemy cargo, which would have to he paid, for by a British institution in the event of capture, would have no value as a prize.