TANNERY RISKS

Evening Star, Issue 18623, 2 May 1924, Page 3

TANNERY RISKS

THE WOOLSTON INQUIRY

[Per United Press Association.]

CHRISTCHURCH, May 1

Mr Wyvcrn Wilson, coroner, held an inquiry to-day into the fire which occurred at the Woolston Tanneries on April 10, when heavy damage was done. Rupert George Whiteman, who left the building at 8.50 pan- on the night of the fire, said that everything then was sale. He had not been smoking. John Hopping, night watchman, said he was smoking on tho night of the fire, but jmi in the upstairs portion of the building. Mr M. -I. Russell, manager of the. Lonr],>ii mid Lancashire Insurance Company, said that although his company had had a very disastrous run with the Woolston Tanneries, it recognised that this was just a risk incidental to the business of fellmongeving, and they were quite prepared to continue to cover the company’s premises. Although his company held the policies, part of them were covered by reinsurance, and some of the reinsuring companies had refused to accept any further risk in connection with tho tanneries.

Mr M. Ollivier, managing director of the Woolston Tanneries, said that the company had had three fires within tho past four years. He thought that the Hereford street fire was caused by a lighted cigarette butt having been thrown amongst some loose leather. He had no idea how either of tho fires at the tanneries had occurred. Witness put in a return showing that tho value of the stock held bv the company on September 50, 1920, was £212,000, whilst on September 30. 1933, the value was £116,000. The Coroner; Has the business of the company decreased, then?—Wo have brought our stocks into line with the demand. That is not exactly an answer to my question. Has business done by the company decreased?—Yes. Cnief-detectivo Gibson: Are the insur-, ances adjusted to meet the decreases in the stock?—Yes. They avo revised at tho end of each financial year. Tho Chief Detective : What is tho financial position of your company?—-During our period in business wo have lost money. The Coroner: A corollary from that is that ready cash is of great value? Witness: “It does not follow that ready cash is a necessity, though it is welcome to everyone.” One reason why they had not made money was because, for political reasons, the company had been subjected to persecution. , He did not want anything about that to get into the newspapers at present. He would make a public statement later. The Coroner: Then you had better not say anything about it here. Tho Chief Detective: To put it shortly, you have a claim against the Government! —Yes.

And that explains your loss?—Yes. The Coroner: Does that explain the falling off in business -—The explanation lies in tho general condition of the world’s trade, plus the position we were landed in by the Government. Tile Chief Detective: At the last fire at the tanneries, did you consider you were under ■■ i nsurod ?—Un d oubtcdly. And at the fire in January?—Yes, we must have been under-insured or eke the insurance company would have replaced the buildings. Th'ey are not doing that. When the inquiry was resumed after lunch Mr Ollivmr'put in a statement showing that the stock in the buildings destroyed by tire on April 10 was valued at £31,171. It was insured for £3O,CCO. The company’s policy was to be as well insured as possible, and witness put in a book containing a copy of the company’s last balance-sheet presented to the directors, and a copy of the one presented to the shareholders. Chief-detective Gibson : Is tho balancesheet audited?—Yes. An open verdict was returned.