SUPREME COURT

Dominion, Volume 11, Issue 239, 27 June 1918, Page 8

SUPREME COURT

'1,. ADMIRALTY CASE CLAIM FOR SALVAGE WORK _ . In the Supreme Coart yesterday Bis Honour tho Chief Justioe .(Sir Robert Mont), with whom was Captain Johnson, assessor, delivered judgment in the caso in which the New Zealand .Refrigerating Co, Limited, owners of 'the steamer Tainui, claimed compensation for the salvage of a ship, her cargo, and ireight. The case was .heard in Wanganui on June 7. In giving judgment, His Honour said that the ship was stranded at Wangamii on November 16 outside Ihe harbour near the entrance, and the claim was made by the owners of the steamer laimii for salvage services rendered in towing the ship off tho beach and bringing her inside the harbour. The value of the ship, cargo, and freight was by agreement assessed by ttie Collector of Customs nt Wanganui as followe:—Ship, Jj20,000; cargo and freight, ilolfl; total, .£21,510. It was unnecessary, said His Honour, to state all that look place, because it could not be denied that with the aid of the Tainui the vessel camo oft, mid it was doubtful whether she would have como off without the Tainui's assistance or the assistance of some other vessel of similar power. The question then arose as to the allowance that should be made to the Tainui forHhe service she rendered. After quoting a case in which the Court of Appeal found that he wholo question of compensation was based on a possible danger to the ship, ills Honour said tho ship was in no immediate danger so long as the wind romained as it wae at the time of stranding, and for the next day. Moreover, the snip was renting on a sandy bottom, and vessels,stranded in positions such as that had remained for a long period without injury. The Court of Admiralty in awarding compensation for salvage services, considered that the amount should be such as would encourage other vessels to perform those services. That ■principle had been laid down in many cases. 'Mere were various items which must be, considered/'such as, first, the risk to the salving vessel , arid its freight • second, the risk to the vessel salved and its freight; and, third, an encouragement to those who own steamers to.use them for salvage purposes, either keeping special steamers for the purpose or elne allowing them to go to the assistance of vessels in distress, and so stop their own work.

In my opinion, however, there Is a matter, that ought lo be considered in Vice-Admiralty Courts in New Zealand at the present time that has not yet been referred to. 1 do not know if these courts can lay down this new principle, but I am of the opinion that it ought to be mentioned now, so that if the matter comes before a Court of Appeal, our Court of Appeal or the Privy Council ought to consider it. The waiter is this: If, ns has been kid down, the benefit to shipowners and people who have goods on board ships must bo borne in mind, and salvage encouraged, there)is also something else.that should bo considered, namely, (he encouragement of-' vessels to perform transit services for New Zealand. If, for the performance of salvage services, large!sums are .to be paid to local steamers, overseas shipowners may well feel chary of sending vessels to New Zealand for ''transport purposes, or if they do send them they will charge heavy freight/). The result of Unit will be very injurious to every producer in the country, and it would be better for the country.as ii whole if it were possible to muke salvage services reasonable, in. order to encourage foreign shipowners to send their vessels to this country at this tiniß of scarcity of transport services. If, as in the case of another ship, KUipowners learn' that a vessel slightly damaged o.i the ■ rocks costs over j>12.1101) lo repair and X' 2500 for salvage services— services A'hieli were performed in a port, and not on tho open coast—they may not be inclined to send their vessels to Wellington, unless at heavy rates of freight. In this case, if there is , a very high amount paid for salvage services an injury will be necessarily done to the. Wangnnui district, as its port will he depreciated. This point of view has not Iwen dealt with in tho Home Admiralty Courts, tho reason being that hitherto, until tho present war, .shipping was plentiful, and there was no difficulty in obtaining transport services from steamers and sailing ..vessels. Tho whole outlook now is changed, and if> wo ctmnot obtain transport services in New Zealand at a fair remuneration, tho result must be calamitous to our producers. However, as I have said, this Court has, if it follows English and New Zealand precedents, no power to consider the question of salvage services from this point of view. I may add that we are in an era of financial inflation, and wo do not recognise that prices of all kinds have in consequent been raised. This may account to some extent for the large claims mndo for compensation for salvage services."

As to the compensation for the salvage services performed by the Tainui, His Honour said that but for the decision of the Court of Appeal in a recent case ho Bhonld have thought that £M would have ample remuneration, but if they had to • consider, the possibilities of the wind changing, and also the present inflation of prices, the valuation of the ship, freight, etc., and the encouragement of salvors, and not the possible eifect on the supply of vessels from overseas for the transport of our goods, then he was of opinion that, the Curt -would have to award iISOO to tho plaintiffs; he therefore awarded that sum villi the usual costs. His Honour added thnt the assesseor, Captain Johnson, from whom he had received great assistance, concurred in the judgment. At the hearing, Sir John Findlay, K.C., with him Mr. Brown, appeared for tho Plaintiffs, and Messrs. M'Veagh and C. li. Macltay for the owners of the ship which was salvaged.