GENERAL AVERAGE CHARGES.

Samoa Times and South Sea Gazette, Volume 2, Issue 103, 20 September 1879, Page 2

GENERAL AVERAGE CHARGES.

A oritur signing himself "General Average,'' in the Sydney Morning Herald, tints writes on the above subject:—Sir, In your issue of Tuesday last you reprint from 'he London Review un'article on "General Average Charges," the writer uf which draws attention to a general average statement, which i*, unfortunately, but too common a specimen of what owners of cargo and underwriters have of late been compelled to submit to. The evil appears : to bo growing wprse day by day. When a vessel on which a general averago has arisen arrives in port, it seems now to bo the signal for a whole host to look out for pickings. The shipowner, master or agents demand from the consignees as deposit whatever they may think proper, refusing (as the master has the right) to deliver the goods until the deposit is paid and a bond signed—one main feature- (f which frequently is that it binds the consignee to abide by the statement of some adjuster selected by the ship. A consignee wanting his goods is thus completely in the hands of tlie ship or her agents.

The ship agents are .rarely, if over, parties U> the average bond, or even mentioned therein; and as the law now stands they are not personally liable to reaccount to the consignees for deposits or for any returnable balance thereof, eleven to produco ail average statement at, all: they merely have received the funds as ugents for the shipowner who, if he thought proper, cpujkl instruct the master to demand, or himself demand from them the deposits, and elect to settle under the general average statement himself. It follows, then in the case of u foreign owner thus acting, and delaying to Mettle, consignees might have to follow to his domicile in order to recover at law, ,or a master might demand ; the . deposits from the agents and pay everyone witji his foretop sail. Thus, onsignces under tho impression that they weie trusting to tho probity of a woll-known firm of agents might thus be putting themselves and their money entirely at the mercy of an owner resident in a [foreign port, and,one utterly unknown to thcin ; and U the general average statement is generally issuod long after tho ship has left port, uny recourse consignees might have had against her is therefore lost in the event of her never returning. A remedy for this sUto of things, so far as the port is concerned would, |xirImps, bu as follows:—Uu arrivul ot a. veKsel M which a general average hj»» arisen, tho ugeuts appointed by the ship

■:ld notif) a to the Chamber of Commerce, who sho;:'..i appoint cue 3I its meail ere to act ' ■ dl f the 1 sigrii •• •■ . uld. i.» obliged forthwith •-. appoint an umpire, to ... mi they could refer in the event of ..-. question which might arise between thtui us to amount of deposit, form of I bond, appointment of average adjuster, agency charges, &c, kc. The deposit should be placed in a bank in the joint names of these three, say for a term at interest, to forego interest, or to accept a reduoed rate in case of the funds being required before its expiry, should the ship need to sail before the issue of the general average statement, she should either pay the proportional deposit on her value or find security for .satisfying for her part claimants under the general averaSe; otherwise, in the event of the subsequent loss of an uninsured ship ami the insolvency of her owner, there would be no recourse. The naynient of fee to the Chamber of Cominerce end umpire should bo a charge :■ c:i the general average; and whatever

■ : ' rf.-.. might amount to, there can be i ut li'tle doubt the supervision thus ex■ivised over the charges too frequently made in colonial ports, .would effect a considerable saving to all concerned. The adoption of some such plan as the shove would remove all inducements , at present exist to demand" excessive deposits. Ship agents would not have the opportunity of using considerable sums of the depositors money in their own business free of interest, mid thereby obtaining an unfair advantage over their competitors in trade; would not be able to pay themselves and their friends whatever fees .they.anight think proper would not haveithe temptation to select an adjuster, who would through ignorance of his profession, or wilfully prepare such a statement as would delay settlement, ami secure them so much longer use.of the funds, ami there would be no chance of lose to these concerned through the agent's possible insolvency. Further, the ship in event of damage Inning occurred to her. which was not subject of general average, or even 11 ~, subject,-would be oblige,! to li„ . ; for her own repairs, instead of as nl pro sent, being able to make use of the deposits as a current account. ] presume such a plan as now suggested could only be enforced here by a short enactment of our Legislature. As the law stands at present, the master of the ship is the master, of the situ- . uld he can altogether refuse to • : em-go, and can store ittill adjust- • •■:' ; : ." :;e :er:.i ".v. !..:.■•. •a\ for a -.,'..: ■•■ ; :, .- 1:1- Lte cases, from nen ii-f ve.-is. Such a lever as this wov.id mnel any consignee to surrender •..:..• i.oiiionaJ.y. Due word as .to consignees: It teems sometimes extraordinary what low contributing values are declared for general average ; or. in a case' of a claim for jettison, what high market values the goods so jettisoned assume. ' It is true such glaring abuses of general average have not to my knowledge occurred here as iii a neighbouring colony, but nevertheless the present system opens the door to too many temptations.