WAR RISKS ON CARGO

Dominion, Volume 7, Issue 2242, 31 August 1914, Page 8

WAR RISKS ON CARGO

SCHEME OF MARINE INSURANCE CO-OPERATION WITH HOME GOVERNMENT rl«Ti;° foll ?7 in S important cablegram, aeajiDg with marine insurance in war time, received by the Government on Saturday from the Home authorities;— t

The Board of Trade states that many nnd large insurances are daily being I effected at War Risks Insurance Office lon goods from New Zealand and Australia, and that arrangements are working smoothly. Necessary particulars ~would be telegraphed to an agent in London who eftects insurance, the insurance documents, then being deposited with the banks in this country, who will inform Dominion banks by telegram that insurance has been effected. The Board ot lrado considers that there should be no difficulty in following tins procedure m case of cargo shipped in transports, except with regard to shipments whjch are too small to bear cost of necessary telegrams. In case of such shipments they suggest for the consideration of your ( Government whether they would be prepared to cover risks themselves rather than press for modifications of existing arrangements in this important principle, and so establish dangerous and inconvenient precedent. As regards the four steamship lines referred to, if vessels are included in one of the approved War Bisks Associations, hulls and cargo can be covered under Government scheme at current rates. It is believed that some at least of vessels are already entered in one or other of the associations."

Statement by the Prime Minister. Subsequently the Prime Minister made the following statement:—"The Imperial Government having made provision tor insurance against war risk on hulls and cargo of English merchant 6hips at a varying rate (which is at present three guineas per cent.), the Neiv Zealand' Government has endeavoured, through His Excellency the Governor, to male arrangements for war risk insurance of cargo from the Dominion to England at tho same rates. Proposals by the New Zealand Government that-it should be permitted to act as agent of the Im-perial-War Risk Office, or, alternatively, that the New Zealand Government should itself issue cover and be reinsured at the Imperial Office, were, for sufficient reasons, not assented to by thp Imperial Government. Special arrangements have been made tor cargo per transport. With respect to cargo in steamers othe rtha'n transports, the New Zealand Government informed tho Imperial. Government that four lines of steamers regularly trade with Now Zealand produce to London, viz., the New Zealand Shipping Company, the ShawSavill Co.mpany, the Tyser Company, and the Federal-Houlder liiie, all four voyaging via Cape Horn, coaling at Rio or Monte Video and Teneriffe— and re- | quested that hulls and cargo of those four lines travelling by. that route might bo included in the Imperial insurance scheme. The New Zealand Government further stated 'that, for tho purposes of sales of, or advances against, New. Zealand produce, delivery of shipping documents,' including full insurance cover, is necessary according to the custom of New Zealand trade, and the application for cover in JDondon is therefore inconvenient. The last telegram received on the subject by His Excellency from the Secretary of Stato on August 28 is by His Excellency's permission, published for. general information. The Noiv Zealand Government has'requested Hie Excellency to inform the Secretary of State tliat New Zealand will act in accordance with this telegram. Every consideration has been given in London to the representations from New Zealand on this subject, and it is not considered right to further urge alterations in favour of New ZeaJand of the procedure settled by the Board of Trade for all parts of tho Empire.

RISE IN FREIGHTS, OF 25 PER COBNT. A few daye ago notification v?as given of a rise of 2o per cent, in tLe passenger rates by those companies engaged in what is,known as the direct (via Cape Horn), trade route to England, and an indication was thfbn given that freight rates were likely to lise in proportion. I'his inereaee—2s per cent.:—has now been made, and shippers must be prepared to pay the extra charge brought about by the exigencies of a great war. The increase, does not at present relate to dairy produce, -which the companies concerned aro under contract to carry at a certain Tate, and those contracts ■will hold good, hut it applies at once to general cargo, euch as meat, wool, flax, hides, grain, etc.

. • One factor in the bringing about of the heavy increase notified is the -withdrawal, from .the service of a number of the large steamers regularly employed in the New Zealand-England trade. So far the _steamers Athenic, .ATawa, Rwapehu, liiiuerick, Orari, Star of India, Star of England, Star of Victoria, Hawie's Bay, and Waimana have been requisitioned either by the Government of New ZeaJand or the Commonwealth for the transport of troops. This is a very considerable fleet to bo suddenly lifted clean out of a. trade at once, and necessarily reduces the freight space available for the carriage of our products to the Home markets. Further, the dairy produce oxport trade begins in earnest in September, and as the season promises to be a plenteous one there is a prospect of there being a shortage of carriers and a big demand on cold storage locally. The Government lias been making inquiries for further steamers to accommodate troops, and it is on the cards that others will also be requisitioned for that purpose almost immediately, to the further limitation of : carrying facilities for our produce.