WAR RISKS

Dominion, Volume 7, Issue 2227, 13 August 1914, Page 6

WAR RISKS

OUTWARD AND INWARD

FIVE PER CENT. OR TWENTY? The subject of war marino insurance sks was mentioned in tho Houso of Reresentatives last night. Sir Joseph Ward, asked the Prime Minter wlieiuor ho was in a position to ly what had been done by the Gov•uuient. in connection. with war l-isks.' to had been informed on unquestionable iithority that the insurance rato- being sked from London to New Zealand was ) guineas per cent., and this meant, of jurse, that all export trade was nraccally stopped, and orders wero being •eely cancelled. Also, he had beon adisocl that exporters from this country ad beon unable to arrange war risks, i'hile something was being done by tho tome Government to provide a.' war risk )r' Homo oargoes at a reasonable rato he as doubtful whether this applied to oods outwards from England to New ealaiid-. B.e asked also in view of the ict that owiug to ships being required )r transport of troops exporters of ti-o-jn'meat could not get freightage, whether rrangementa could not bo made to have ™zen meat and other such perishable roducts carried on the troopships. Mr. C. A. Wilkinson bore out what' Sir oseph Ward had said about high rates eing required for cargoes inward to few Zealand., On Saturday,last he had een i informed that tho war rate in New, rork on goods to New Zealand: was: 20 er cent. This rate was being charged lso on cargoes already half-way to New ealand. . The matter was certainly o. ery great .moment to New Zealand, for t the high insurance rates were to be harged, prices to consumers hero would ave to be increased. The Hon. F. M. B. Fisher said he bought it would allay tho anxiety listing if lie put before ■ the House a ablegram received from the Secretary f State for the Colonics to tho Govoror of New Zealand on August 9. . Following was the text of the cablegram :— Following is summary of war risks Insurance schema-. >. ' Firstly, Ships.—Government schema for war risks on ships is. worked through war Tisks insurance association of shipowners already existing , and overy effort is being made to" bring as many ships as possible into ' this association. Government scheme • only applies to reinsurance of lung's enemy risks. Object of scheme is to. se- . ouire as far as practicable maintenonco in time of war -of oversea trade. Government is entering into agreement with, approved associations to re-insiiTo to' extent, of 80 per cent., all risks by association . hi>w far they aire King 6 enemy risks on the following terms:—(l) On voyages current at outbreak of war reinsurance will bo without premium. (2) On such voyage ship, must comply, as far as possible with order of Government ana directions of committee of association to which it belongs, as to the routes, port of call;' and stoppages. ' (3) On voyages begun after outbreak of war premium will be charged. This ' premium, which would'not be.less than 1 per cent, nor more than 5' per cent., upon voyage, would be fixed by Government. (1) On such .of \last-mentioned voyages ship mu9t. (a) .comply as far as ■ possible with orders' ot Government' and directions of committeo of asso- . ciation to which, it belongs, as to routes, port of call, and.stoppages; , (b) not start: on voyage if ordered by Government not to do so. - Associa* tions at present approved are United Kingdom Mutual War Risks Associa- • tiori, Ltd., 2-1 St; .'Mary. Axe, E.C.,London, and < Liverpool;' War Risks - Insurance Association, Ltd.-, 10 Water Streot; Liverpool; North of England' Proteoting and Indemnity Association, Collingwood Buildings, Newcastle-on-Tyne. . "Secondly; Cargv.-rA'; .war risk insur-"- 1 once office, has been'opened in London for insurance of cargoes other than . enemy's property aid goods (export of , which .is-prohibited by proclamation).... Ships for voyages commence on or after office opened for business. CaTgo in" British' Ship at , the -time of the outbreak of war would be treated at port of call as though that port wero tho port of loading;.Only,risks which . ■would"be covered would bo King's ', enemy risks. Cargo would be insured : only if Shipped or to be shipped by vessel covered Vfor...voyage. against King's;eiieiny,war risks, under scheme'., outhried'above for ships.: The rate of ■ premium will be flat one, irrespective : of. ; voyage' cr '.cargo/'insured; ; It is ' capable of variation from time-to time within a maximum of -five guineas per, centage, arid minimum ; of one guinea per contage. If sailing is delayed under onters .of . Government, the 'assured '; will: have' the' !option of/ cancelling their-polioy and receiving' back the" . premium paid; The .value of the'eargo lor State insurance would be values' adoptive in maritime insurance....Policies covering .the same 'cargo, whichpolicies i would ,v be -produoed. at the War Risks Insurance Office' when the insurance is finally.i.arranged. Third- - ly, this scheme, was'framed and ipri-' marily intende<l for ships continuous- ■ ly registered in the United Kingdom, but His Majesty's - Government has . decided that these benefits -may be. ex- . , bended to colonial registered' ships,, which are included: in. one of the ' above-mentioned approved . : associations.—(Signed)' HARCOURT." To that: .telegram . tho . New- -Zealand Government had sent the following reply:— , ' , "Government has referred your cable " Te war risks to Marine Underwriters' : Association. This body requests New Zealand Government to ascertain if itbe the intention of Imperial Govern ment to establish an-agency in New" Zealand for underwriting war Tisks on terms mentioned in your cable. If so, will scheme .be mado eligible for cargoes all British trading vessels homewards and outward to the Pacific and Atlantic boards of America, and ' to and from India and the Far East? , ' It is further suggested that to put the. scheme in- operation in New Zealand all licensed marine companies might be authorised to accept war risks at , tho Government ruling rate, and reinsure their holdings with New Zealand Government as agents for Imperial Government, within, say,- 24 hours of ' commitment. New Zealand Govern- - ment is prepared to act. as aKents for your Government. Early and favourable reply will do restore trade anxiety, and rfiuiulate orders ■ ■ for G''ftat Britain.—(Signed) W. F. MASSEY, Prime Minister. No reply hiid been received to that cablegram, and that night the followinj cablegram would be sent to the Imperial authorities:— "It is proposed to carry to England frozen meat and other cargoes for -private shippers on board tho transports' chartered by the New Zealand Government. Will British Government insure or re-insure such cargo against, war-risks and empower. New ZealandGovernment' to act as agent for this purpose. A. reply to this cablegram . and also .to my cablegram of 10th relating to execution of Imperial Government guaranteed war risks to New Zealand is urgently desired, as trade of Dominion with Britain is suspended in meantime." Sir Joseph Ward asked whether the pro posed guarantee of the Home Govern ment applied to cargo outward from Eng •land. ... ~ ~ Mr. Fisher said it seemed to him tliori was no need for undue anxiety, for thi Home Government must have mnch t< attend to, aid' a delay of fofty-eight hour was not Unreasonable. There was ni doubt that the war Tisks guaranteed lithe Home Government applied to Out ward freight. The only difficulty wa in regard'to Homeward freight, and tin reason for the difficulty was that, then'. was no onont hero to .undertake the guar antee risks. „ . . ,„' The Hon. R. M'lvcnzio sugßested tha 'tho New Zealand Government ought t. undertake the marine risks. Colonel robin to command. . During the absence from New Zealani with the Expeditionary Forco. of Major General Sir Alexander Godley, C.8., Col onel A. W. Robin; C.8., C.M.G., wil command the New Zealand'home Forces Colonel Robin is next in seniority, and ii the absence from New Zealand of t.h Commandant, automatically mumes com wand,

ALL LIGHTS OUT NEW ZEALAND COAST IN DABENESS. An order has been issued stilting that from to-night the. lights showing se.awards at the ports of Auckland, Wellington, Lyttelton, Otago, and Wcstport will, be extinguished, and will remain so till further notice. The lighthouses at Poncarrow , .Head (Wellington Harbour), Godley Head(Lyttelton Harbour), Tsiiaroa' Head (OUro Harbour), and Cape ITouhrind (south- of the entrance to tlio port of \VestiK>rt) will also be in darlmess from to-night. Instructions havo been issued to shipowners and masters that vessels are not allowed to enter the five harbours named at nigh't. Any vessels desiring to leave the above-mentioned ports at night will do so at their own' risk. ■• •' •