MARINE WAR RISKS.

New Zealand Herald, Volume LI, Issue 15686, 13 August 1914, Page 9

MARINE WAR RISKS.

THE IMPERIAL SCHEME. ■ EXTENSION TO DOMINION. NEGOTIATIONS PROCEEDING. INSURANCE OF MEAT ' CARGOES. [BY TKLEGlurn— CORRESPONDENT.] Wellington, Wednesday. In tho House of Representatives this evening, Sir Joseph Ward asked what was being done in regard to war risks. It was a matter of vital consequence, he said. If something was not done there might be serious results. Ho read the following cablegram from Home: —" War rates from London to New Zealand, twenty guineas." This, ho said, practically stopped trado, and orders had been freely cancelled. Would it not bo possible, he asked, to get both Governments to tako joint action, with a view to having the rates tho same as to England ? It was just as important that trade should lie continued from England as it was that exporting should continue from Now Zealand. No doubt there was some cause for this. Probably floating mines drifting about had made shipowners and merchants airaid. Sir Joseph Ward said ho had been informed that none of the export meat firms in New Zealand could arrange for their freight to London. Ho asked if it would not bo possible to ship moat in tho transports that would bo taking tho men and horses to Europe. Mr. C. A. Wilkinson (Egmont) said he had received a cablegram from New York on Saturday stating that the insurance was 20 per cent. The Scheme Outlined. Tho Hon. F. M. B. Fisher said the Government had been dealing with tho matter. He read tho following cablegrams bearing on tho subject, received from tho Secretary of State for the Colonics by His Excellency the Governor:— is a summary of tho war risks insurance scheme: Ships— The Government scheme for war risks on ships is worked through the War Risks Insurance Association of Shipowners already dieting and every effort is being made to bring as many ships as possible into this association. The Government scheme only applies to the reinsurance of King's Enemy Risks. The object of the scheme is to secure as far as practicable tho maintenance in time of war of oversea trade. Tho Government is entering into an agreement with tho approved association to reinsure to the extent of 80 per cent. All risks assured by the association as far as they are war risks will bo taken on the following terms:— I "1. On voyages current at the outbreak of war, reinsurance will be without premium. '"i. On such voyages the ship must comply as far as possible with the order of the Government and the directions of the committee of tho association to which it belongs as to routes, port of call, and stoppages. "3.' On voyages begun after the outbreak of war the premium will be charged. This premium, which would not be less than 1 per cent, nor mdre than 5 per cent, upon the voyage, would be fixed by the Government. ''4. On such of the last-mentioned voyages the ship must (a) comply as far as. possible with the orders of the Government and tho directions of the committee of the association to which it belongs as to routes, ports, of call and stoppages; (b) not start on voyage if ordered by the Government not to do so. "The associations at present approved are the United Kingdom Mutual War Risks' Association, Ltd., the Liverpool War Risks Insurance Association, Ltd., and the North of England Protecting and Indemnity Association. Insurance of Cargo. "Cargo.—A war risk insurance office has been opened in London for the insurance of cargoes other than the enemy's property and goods, the export of which is prohibited by proclamation. Cargo would be insured only if shipped or to be shipped by a vessel covered for the voyage against war risks. Under the scheme outlined above for ships, the rate of premium will 'be a flat one irrespective of tho voyago or cargo insured. It is capablo of variation from time to time within a maximum of five guineas per centage, and a minimum of one guinea' per centage. If sailing is delayed under tho orders of the Government the assured will have the option of cancelling their policy and receiving back tl?o premium paid. Tho value of the cargo for State insurance would bo the values adopted in maritime insurance policies covering the same cargo, which policies would be produced at tho war risks insurance office when the insuranco is finally arranged. "This scheme was framed and primarily intended for ships continuously registered in the United Kingdom, but the Government has decided that these benefits may bo extended to colonial registered ships which are included in one of tho above-mentioned approved associations.— (Signed) Harcourt." New Zealand Government's Bequest. Following is a copy of a cablegram to the Under-Secretary for State sent on August 10:— Government has referred your cablegram re war risks to the Marino Underwriters' Association. This body requests tho New Zealand Govern--1 ment to ascertain if it bo tho intention of the Imperial Government to establish an. agency in Now Zealand for underi writing war risks on the terms mentioned in your cablegram. If so, will tho scheme I bo made eligible for cargoes on all British trading vessels homewards and outwards to tho Pacific and Atlantic seaboards of America and to and from India and tho Far East? It iB further suggested that to put tho scheme in operation in New Zealand all licensed' marino companies might bo authorised to accopt war risks at the Government ruling rate and reinsure their holdings with' the New Zealand Government as agents for tho Imperial Government within, say, 24 hours of commitment. Tho Now Zealand Govern' ment is prepared to net as agents for your Government. An early and favourable reply will do much to restore trade, anxiety, and to stimulate orders for Great Britain.—(Signed) W. F. Massey, Prime Minister." Cargoes on the Transports, The following is a copy of a cablegram do&patched to-night to the Under-Secretary of State for tho Colonies:—"lt is proposed to carry to England frozen meat and other cargoes for private shippers on board the transports chartered by the New Zealand Government. Will the British Government insure or reinsure such cargo against war risks and empower the New Zealand Government to act as agent for this purpose, A reply to this cablegram, and also to my cablegram of August 10, relating to tho extension of the Imperial Government guaranteed war risks to New Zealand, is urgently desired, as the trad? of the Dominion with Great ' Britain is suspended in tho meantime."

"Wo cannot make 'any farther move," said Mr. Fisher, " until we hear from the Imperial Government. 1 quite realise the urgent necessity there is for settling the anxiety that exists m tho minds of tho commercial community." Under tho extraordinary pressure of business, 43 hours was not too long to allow for a.reply. There was no doubt that tho scheme applied to outward freight. The only difficulty was in regard to Home freight, be-' cause thcro was no Imperial ugent here, ilie Government had asked to be allowed to undertake tho agency here, I HATES IN THE PACIFIC. ! SUBSTANTIAL INCREASE. i NOW 20 PER CENT. Tho insurance rate on goods carried between New Zealand and Australia has been increased by the companies in Now Zealand from 10 to 20 per cent. The latter rate is similar to that ruling in Australia. SAFETY OF TRADE ROUTES. SHIPMENTS IN USUAL COURSE, [n? telegraph.— special correspondent.] 1 Wellington, Wednesday. Judging from a cablegram received by Messrs. Bannatyne and Co., agents for Curtis and Harvey's powder mills, the English Channel arid North Atlantic routes are now clear of the enemy. The message, which was received yesterday, was to the effect that a shipment of explosives had been forwarded to Welling-' ton in a regular steamer, and that further shipments would follow next month, as in tho usual course. WAR FINANCE. BORROWING POWERS. EXTENSION NECESSARY. [BY correspondent ] Wellington, Wednesday. In the House to-night the Hon. James Allen, in explaining the provisions of the Public Revenues Bill, said it contained a provision to increase the power to borrow on Treasury Bills to 1J million instead of one million. Ho did this because he was not sure how far the Customs revenue or railway revenue would bo maintained during the next few months. Tho Bill also provided for an, extra £2,000,000, which could bo used for war expenses or for public works as might be decided. Probably half would j be required for the war fund and half for tho public works fund. Sir Joseph Ward said this was a tremendous power to give to any one man he did not care who that man was, especially when the Minister for Defence was also the Minister for Finance. Ho said he was speaking quite impersonally. The first increase of half a million was a permanent proposal and should be dealt with upon some other occasion. Mr. Allen in his reply said that even apart from the war thero was a necessity 'in ordinary quiet times for giving the Minister for Finance power to raise more than a million sterling for the' Consolidated . Fund alone. Sir Joseph Ward: You have changed your mind very much on that, point. Mr. Allen: I have not changed my opinion. I have never objected to treasury bills being issued in anticipation of revenue but I think that they should be redeemed at the end of the year. In regard to Sir Joseph Ward's objection that the Minister should not have the power, Mr. Allen said he had followed the present Act. He had made absolutely no alteration but if tho House desired it he had not the slightest objection to give the power to the Governor-in-Council. He did not, however, think that would make it safer than it was now; indeed it was practically tho same thing. LOYALTY OF WORKERSWELDING THE CLASSES. [by TELEGRAPH— CORRESPONDENT.] Wellington, Wednesday. Touching upon the unity of all classes and all political sections in the present crisis, the Prime Minister, in his speech at the Town Hall last night, said that he was pleased to see that the Labour Federationists were in that unity. (Cheers.) These men were supposed to be out against society in every shape and form. 1 That was now a thing of the past. (Applause.) Red was not their only colour. 1 They had now taken in a bit of tho white and blue, and he was quite certain that if they went to the front the nation's enemies would find them good fighting men, and foemen worthy of their steel." (Cheers.) AUCKLAND YAOHTSMEN. OFFER TO MAN DESTROYER. ' (BY TELEGRAPH.—SPECIAL CORRESPONDENT.] Wellington. Wednesday. : The following telegram has been received i by the Minister for Defence from the Auckland Yachtsmen's Volunteer Naval Do- , fence Force:— offer to fully man i destroyer, both in the engineroom and on deck. One certificated officer included." The following reply has been forwarded: , —" The Government highly appreciates the offer of tho Auckland Yachtsmen's Volun- , teer Naval Defence Force. I have had ' pleasure in handing your telegram to the ! naval intelligence officer for action if neces- , sary." 1 AN INDIAN OFFICER. ' JOINING THE CONTINGENT. [dt telegraph— CORRESPONDENT.] Wellington, Wednesday. Major Fulton, who will be second in command of tho infantry in the advance action of the expeditionary force, has been for some years an officer of ono of tho Gourka regiments in India, 110 was an Utago School boy. He was on leave in Now Zealand at the outbreak of tho Boor war and volunteered, serving as an officer of the fourth New Zealand Contingent. During the hostilities he \v«»» 6e\erolv wounded. Strangely enough ho is ■ again in New Zealand on furlough and at the outbreak of tho European war has ■ again volunteered to go to tho front with the New Zealanders, TEACHERS ASSISTING. The public school teachers in the Auckland Province aro holding a special general meeting on Saturday to consider the best means of assisting their country during the presont crisis. A suggestion has been made that the teachers should , raise a sum of money to assist in the equipment of the expeditionary forcg.