RANGATIRA CARGO

Southland Times, Issue 17816, 21 August 1916, Page 5

RANGATIRA CARGO

UNIQUE POSITION DISCLOSED. CHARGES TO CONSIGNEES. A DUNEDIN PROTEST. A special meeting of the Dunedin Chamber of Commerce and of consignees interested was held on Friday to consider the unique position which has arisen with the arrival per the Waiwera of goods salved from the Hangatlra, which grounded near Cape Town In March. The position, against which emphatic protests were raised by the big meeting appears to be (In a sentence) that the shipping company desire to collect a levy from consignees amounting to 50 per cent, on the market value of the goods landed, Instead of (as is usual) upon the invoice value and freight, plus 10 iei cent. Mr Geo. Fenwick, president of the Chamber, was in the chair, and on his suggestion Mr H. L. Tapley, chairman of the Underwriters’ Association, was invited to attend. Mr Fenwick merely introduced the matter, referring to the position as one unique in the history of underwriting, and suggesting that .after the discussion a committee should be set up to Investigate the whole position and report to a later meeting. He called upon the consignees to explain the situation. Mr T. Somerville said that they were really present to get information. The legal aspect assumed considerable proportions, he took it, and there was also the question of usage. The chairman replied that he understood that the Insurance law on the subject was clear—that the shipping company were ■within their rights, and the insurance companies would be within their rights In seeing that the “general average” struck should be struck on the present value of the goods in Dunedin. Mr H. L. Tapley endorsed this, and made an explanation at some length, tie said that this was a position that had not occurred before in the history of commerce. The wreck had unfortunately happened at this time when goods of all kind had appreciated in value. It had happened, too, unfortunately, that the cost of salving these goods at Cape Town had been very heavy. The salvage company collected 33J per cent., and tuere were additional charges such as landing and transhipment charges, so that the "general average" people had to collect 50 per cent, in order to ensure that they would get sufficient funds to pay the charges incurred la sending this cargo forward. He knew that many of those present could not understand why it was that these salvage charges (they were not general average charges) were assessed by the shipping company on the present landed market vulue of the goods. They naturally thought that the ordinary practice would be adopted of collecting the general average charge on the invoice value plus 10 per cent. But in this case the goods had increased in value considerably, and the meeting could take his assurance that the insurance companies who had to foot the bill had looked carefully into the matter, and there was no question but the general average charge was collectable on the landed market value. If a man had goods Insured for £IOO and the value was £lso,'the underwriters would reimburse him to the extent of his policy, but lie would have to pay the balance of the uninsured value himself. It applied in the other way, where goods had been assessed at their damaged value. if they were inyured for £SOO and their value was now only £SO, the shipping company could only collect the general average on the £SO, and the underwriters had to make good the balance. After considerable discussion a committee was set up to gather information and report later.