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Poverty Bay Standard, Volume IX, Issue 953, 18 June 1881, Page 2

The New Zealand Industrial Gazette has had a communication addressed to it by the Chairman of the Underwriters’ Association, which we transfer, in substance to our columns, in the hope that it will be of interest to our readers. It is on the subject of “ The carriage of Wool in regard to Insurance.” As the Gazette points out, what we are concerned with is the damage done to the reputation of the Colony in the London market by such carelessness on the part of New Zealand wool-growers as that which it is alleged prevails so extensively in packing and carriage of the staple before shipment. Those runholders and station managers who are blameworthy in this matter little think of the bad effects of their negligence. The more short sighted of them may possibly imagine that because, their wool is generally fully insured, it does not matter much whether it reaches London in a damaged condition or not, since for all depreciation on the voyage they can come upon the underwriters. This is a mistake. In the first place, no claim under three per cent, is recognised ; and thus it will be seen that a considerable cantie of the narrow margin of profit may disappear without any chance of recovery. And it should be borne in mind that it is only slight depreciation which is most frequently the result of little omitted precautions, such as having the sheep quite dry in the shearing shed, keeping the bales covered in showery weather, protecting them from the plash of salt water while shipping them on the coast or in open roadsteads, packing the wool in dry clean woolpacks, and so on. Grave damage is only the exception. Then again, they have to reflect that if the wool from any particular place is often found on arrival in London to be injured by careless packing or exposure, it will labour under suspicion ; and the price will suffer accordingly. In this, as in the other case, there is no compensation obtainable from the Insurance Companies. So that the sooner that very general remark “ Oh its all right, the Underwriters will have to make it good !” is relegated to the limb of exploded errors, the better for the Colony, and for both wool growers and insurers. It is clear from what we have said that the losses of the companies are not all gain to the runholders, and that the former often lose when the latter do not. It may very easily be shown that the interests of both are identical. If the wool exporter observes in a fair and honourable way the contract he makes when he insures his bales, he will do as much for himself as he does for the Underwriters. If shearing, classing, skirting, packing, storing, carrying, and shipping are all done carefully, his wool will get a good name, and he will get a good price ; and he will have besides, the satisfaction of knowing that he is assisting to raise the standard of quality attached to the wool of his district. It is to be hoped that the new rules now issued by the Underwriters’ Association will have the effect of reminding sheep farmers of their responsibilities, and br'nging about a more satisfactory state of things.

The following are the remarks to which we allude :—lnsurance Companies are not bound to make good any damage that can be anticipated ; all exigencies of both route and weather must be provided for, so that at the outset it shall appear fully warranted to expect the safe arrival in an undamaged condition. The Cover is only against accident in its strict sense, after all meanshave been adopted to ensure safety, and sufficient to surmount the ordinary and known perils which the goods can

meet. It is such a casualty as is usually spoken of as an “ act of God ” in distinction to that which might have been anticipated by an ordinary intelligence, and avoided by care. To apply this rule : —Shearing must be done under cover and when the wool is dry, or, it must be subsequently dried.

While in shed all reasonable precaution must be taken against fire. Men must not sleep, within the shed on inflammable material such as hay or straw, or any other practice be allowed that a prudent and uninsured owner would not permit. The storage of inflammable material is not allowed in woollsheds.

Carriage from shed : The wool must be thoroughly protected from weather by tarpaulins. The conveyance chosen must be the best available, and no license can be taken in this respect to adopt other means whereby additional risk is incurred.

Wool waiting shipment on the coast must be stored, or in some way secured against wet and other damage. Shipping wool on the coast must be done according to the circumstances as they present themselves, in such a manner as to promise its safe carriage to the vessel, and no risk outside this which is taken to expedite business can become a burden upon the Companies. Damage occuring will be evidence that proper precautions have not been taken unless the accidental nature of the cause be shown.

Stowage on board must be under hatches with dunnage sufficient to avoid damage. Decks must be tight and calculated to keep cargo dry in all weathers.

When discharged on the wharf or waiting shipment into homeward vessel care must be taken to protect the interest from weather.

Damaged wool must be the immediate and active care of the owner both to rescue from danger and recondition as effectually as possible. The insurance contract strictly implies this and makes the cost of the operations a charge against the insuring Company recoverable in the same manner as depreciation in value. Statement of damage and full particulars of the manner in which it occurred must be made in every instance where the Company is claimed upon. No vague statement as “ a few bales more or less damaged,” “ a few bales received wet,” or any suchlike description will be accepted to support a specific claim for damage. Marks and numbers must be given in full together with a statement of circumstances connected with the casualty. In all cases in which wool is delivered in bad order and without such particulars, as above, it will be treated as prima facie evidence that the persons delivering are responsible for the loss.

Abandonment can only be made when the damage is of such a nature as under a fair estimate the cost to make marketable and of transportation to original destination, appears greater than the whole value when there.

Carriers to avoid undue responsibility for damage, should both give and take receipts for goods, and particularly note the condition. It is trusted that the foregoing will have the effect of obtaining better treatment in the conveyance of this important export. It is one of the most valuable commodities handled, and suffers from exposure to an equal degree with the most sensitive.