MARINE WAR RISKS

Dominion, Volume 7, Issue 2256, 16 September 1914, Page 6

MARINE WAR RISKS

HELP TO SMALL SHIPPERS A GOVERNMENT PROPOSAL A Bill,to empower the.Government to provide for marine insurance against war risks was introduced into the House of Representatives last night by Governor's Message. Tho Hon. A. L. Herdman, who was in charge of tlie Bill, explained briefly tho purport of it. After the war began, lie said, persons in New Zealand who desired to send cargo Homo had found a.difficulty in getting insurance against war risks. Tho Government had got into communication with tho Britisli Government on the subject, and the Britisli Government had intimated that shippers who desired to insure cargo could do so through the War Rislis Office in London. This was not quite satisfactory to New Zealand, and an endeavour was made by tho Government.to arrange that cargo carried'in tho troopships should bo insured in London. The Ministry had been under the impression that the Now Zealand Government could act as agents for tho War Risks' Association in London for the purposo of arranging insurance, and on that assumption the Government arranged insurances to tho extent of £13,000, for cargo on tho troopships. They found, however, that they had misconstrued the cable advice received 'from the Home authorities. What the British Government had advised was that tho Now Zealand Government should arrange in Londou .for war risks there. The Government now asked Parliament to validate their action in taking risks over certain cargo. This was not all that, the Bill contained, however. It was desirable that gold won in the Noil Zealand mines should bo exported to Australia to be minted. The war risk charged by local insurance companies for gold from New* Zealand to Australia was ono'per cent. This charge had ultimately to. bo borne by tho miners. The Government had decided that the charge was too heavy, and one of the provisions of tiie ;.; Bill was intended to put tho matter right. The Governmont proposed to undertake' tho insurance on this gold, making one , stipulation only that the value of gold insured in one ship was not to exceed £10,000. Tho Bill' dealt with one other matter.' The Imperial authorities had suggested that the New Zealand Government should undertake tho insurance of a certain quantity of goods shipped in small lots from New Zealand to the Old Country. A clause in the Bill would enable the Government to take war risks, provided that no moro than £5000 worth of risks would be taken in any vessel. For small cargoes the engagement of an agent in London to arrange for war risks would entail au unwarrantable expense on shippers, and for this reason the Government proposed to undertake tho insurance. Sir Joseph Ward (Awarua) said that the suggestion that the Government should cover £5000 worth of cargo in any one bottom was just as useless as would bo a proposal that the' Government should offer to cover cargo to tho value of 5000 pence. The Kaipara, sunk the other day, had. had £50,000 worth of cargo ou account of one firm alone. Mr. Herdman: What,would you have done.; Sir J. Ward: I would have dono what I suggested from the first ought to be done. I would have arranged for the Government to take over all the insurance, ahd charged a reasonable rate, for it. Ho .added that if tlie Government limited their risks to £5000 on any one ship, the shippers not fortunate enough ; to get the Government cover would be at the mercy of the companies in the Old Country. He declared that ho. knew of people who had lately, had to pay as much 1 as 5 per cent, for war risks. . Mr. Allen: Oh, Cubbish! What is the rato to-day? .' ( ; Sir J. Ward said the rate' was . s fluctuating one. Ho urged that thero ought to be a broad system established by the Government by .which the Government could protect everybody by taking all war risks, and arranging for reinsurances if necessary. It was absolutely \Hta\ to t\\o country that our seaborne commerce should go on uninterrupted, and.now it was impossible to get insurance companies here to take war risks.; Ho knew of firms'who had cpent hundreds of pounds on cabling to England to get shipments covered.' The Right Hon. W. F.. Massoy said, the honourable gentleman had not stated the position quite correctly. The ■War Risks ■ Office had not been charging more than 2 per cent, for cargoes i for some time, and he could not understand any business firm Wag'"soft." enough to pay 5 per cent.; as Sir Joseph Ward had said, when they could get tho cover for 2-per cent. There wore numerous small shippers here who had no, agents, in London, and who had not been able for this reason to arrange insurance in London. They had taken their own risks, .and shipped goods uninsured, and people of this class would be' helped by tho Bill. It might be that the limit of £5000 was too low, but if so, it could be increased in Committee. Tho rate of insurance on gold to Australia, about a 'shilling an ounce, had been for a long time too high, reducing the price to the miner. The <JEIon. R. M'Konzie (Motuoka) said that everything the Prime Minister had said showed that a mint ought to be established in New Zealand—in fact, that a. mint should have been established long ago. , The Bill was read a first time. . It is interesting to recall at the present juncture how tho' Germans became possessed of Gorman New Guinea. In the early 'eighties of last century all New Guinea, except the Dutch portion, was a sort of no man's land, although British attempts to coloniso it had beeu mado. 'Australians naturally regarded, this unappropriated country as destined to become part of the British: Empire. Indeed, in ISB3, Sir Thomas M'llwraith, the Premier of Queensland, formally annexed the greater part of it, but his act was repudiated by tho Imperial Government. The following year, however, as is told in Lord Edmond Eitzmaurice's "Life of Earl Granville," the Gladstone Cabinet decided to proclaim' a protectorate over the whole df the island save the western end, nlroady occupied by the Dutch. .Bismarck had then entered, upon his later policy of colonial expansion, and rumours of possible Gorman opposition led Lord Derby, Secretary for the Colonies, and Lord Granville, Foreign Secretary,'to delay tho Cabinet decision by limiting the area of annexation. Extreme deference was shown to Germany, and negotiations for the settlement of tho question wore being carried on at Berlin, when suddenly . tho Britisli Government learnt to its dismay that Germany had annexed tho whole New Guinea coast down to tho I Gulf of Huon, together with adjacent islands. Thus the territory was secured by Germany through a breach of faith. The Germans have been energetic in strengthening Tsing-tau, tho seat of Government at Kiaochau, now being bombarded by the Japanese. A largo ironworks was due to be opened about tho time of the outbreak of war. About a milo and a half north of tho town is tho dockyard, Which; contains a floating dock, able to lift ships of 16,000 tons, a 150-ton crane, and complete plant for repairs of every sort. Tho 1 garrison includes four companies of seainon artillerists—which is actually oiio I moro than arc stationed at Heligoland. There are also four companies of marines, one mounted company, one field : battery, and a company or .engineers, ; and tho fortress and arsenal are known ; to have a special system of mine deJonce. ' Ki