WAR AND SHIPPING INSURANCE

Greymouth Evening Star, 10 July 1908, Page 3

WAR AND SHIPPING INSURANCE

WAR RISKS NOT ADVISABLE. A STRONG PREFERRED [PER PRESS ASSOCIATION. —COPTIUGHr."' LONDON, July 9. The Treasury Committee appointed in 1906 under the Chairmanship of Mr Austen Chamberlain to enquire into war risks of shipping reports 'states that it is unable to recommend the adoption of any form of national guarantee against war risk for shipping and maritime trade except that provided by the maintenance of a powerful navy. Sir Sydenham Clarke's sep- : arate memorandum contends that the protection. of commerce depends ultimately on the battle fleet and expresses the strong belief in modern naval maritime conditions. It was easier to protect commerce than formerly. SIR S. CLARKE'S VIEWS.

Sir Sydenham Clarke saw the Chairman's draft on war and shipping risks but was unable to concur on all points. He considers that State action is necessary and believes that the exaggeration of war risks might by imposing serious check upon the operations ofthe Mercantile Marine entail a grave national danger. If the State during the early period of hostilities can succeed in steadying insurance rates until they rest upon a reasoned basis it will attain all that is necessary. An .over estimation of the risk is more to be feared than actual capture which, witli an adequate navy, could not reach any great dimensions constituting a public danger. NOT A FEASIBLE PROPOSAL. Sir S. Clarke holds that it is absolutely impossible for the State to set up an Insurance Department at the outset of a war-and advocates a systeitfof 'indemnity at fixed rates. He also suggested,, State lay down a - schedule of' rates ' corresponding tc thjEjjjZQnes $;' voyages whereby vessels proceeding to London froiii Australia be charged 21 per cent., via Sjuez?*;Bnd' 2£ via;.the Cape, Captain Charles Otley signed the report with thai reservation that it would be very regrettable if by the inability to recommend State action to-day it should be regarded as definite proof of uselessness and impracticability in any future scheme of national guarantee.