INSURANCE CLAIM

Southland Times, Issue 21428, 24 June 1931, Page 8

INSURANCE CLAIM

FREEZING WORKS FIRE . CASE FOR PLAINTIFFS CONCLUDED WITNESSES FOR DEFENCE (Per United Press Association.) Gisborne, June 23. The hearing of the claim of the Wairoa Farmers’ Meat Company for £78,590 insurance consequent upon the destruction of the works by fire shortly after the earthquake entered upon its fifth day to-day with the case for the plaintiffs still uncompleted. The managing director of the company, Mr Alfred Gordon Nolan, continued his evidence this morning, explaining early negotiations with the representatives of the defendant companies, the New Zealand Insurance and the Eagle, Star and Dominions. Mr Nolan stated that Mr Kirker, representing the Eagle Star, stated that having inspected the works and the damage he had altered his opinion, and “if there was any kick coming it would not be against him, but against the directors.” Upon the conclusion of Mr Nolan’s evidence the plaintiff’s case concluded subject to the right to call further evidence on the question of the quantum of damages. Opening for the defence, Mr Richmond explained that insurance companies, while always sympatheic and reasonable in dealing with losses, had a duty to their shareholders and the general body of policyholders. It was obvious that no criticism could be justly levelled against companies for refusing to cover risks for which no premiums has been paid. The risks attendant upon earthquake were so great that they could not be taken into consideration in an ordinary fire cover. In the present case there was the remarkable coincidence that the fire occurred such a short time after the previous quake in a place where no known fire danger exists. Plaintiffs gave no reasonable explanation of the origin of the fire, but he submitted that the outbreak was caused by the fusion of electrical wires between the walls of the chambers. Plaintiffs themselves had eliminated other probable causes. Might it not be that they had proved their case a little too well. From the managing director down to the boys there was a common interest and it might be that in proving the fire was not caused by any other means, they had shown it was caused by an earthquake. Defendants had no one to help them in their case. Everyone in Wairoa was vitally interested in the success of the action and it was natural therefore that the defence was unable to present anything like the number of witnesses called for the plaintiffs. Evidence would be given, however, that the damage done by the quake was minimized by the early witnesses, and that the effect of the shock had been greater than that described. This was supported by correspondence im.mediately after the earthquake, particularly frantic telegrams sent for boats to remove carcasses.

After Mr Richmond had concluded his opening address the first witness for the defence was called. George Henry’ Lawson, carpenter and bridge builder, said that ar the time of the earthquake he was in the main street on the town side and he and several others, were thrown down in the street. It was the heaviest earthquake witness ever felt, and when he picked himself up he went on his hands and knees to a fence for support. Witness saw the town end of the bridge fall and a few minutes later he crossed on a footbridge on the lower side which had dropped four feet or more. He made his way to the freezing works boarding house where he was living, and later went down towards the works as far as the fence running towards the river. Witness could see that the buildings nearest to him appeared a bit broken up, and the gable end seemed to be torn out. The building appeared to have a list of about 18 inches towards the north. The main street of the town was full of concrete and brickets. Looking at the freezing works from the town side he said the gable end appeared to be pulled out and the wall near the river appeared twisted. The list was towards .the offices. Witness’s opinion was that it would have to be rebuilt. Thomas Brown, butcher’s assistant, said he was working in the works on the day of the earthquake. When the shock came everyone dashed for the open air. Later that day he looked at the works from the river side. The south-west corner of K store was visible, and he noticed that the boards on top were raised out 18 inches, then gradually tapered to nothing at a point about a quarter of the way down. On the Thursday he went to work again and noticed the gable between the fellmongery and the cooling chamber slightly canted towards the river.

Alexander McConnell, who was working on the cooling floor at the time of the shake, said they ran out to safety. On looking at the works he saw that the gable between the fellmongery and the cooling floor had a cant of about nine inches. From the river he could see the corner of the freezing block had opened about nine inches, the aperture being not more than one foot in a V shape. On the night of the fire he was on the river side and saw a light near the loading-out door. Frederick A. Benton, freezing chamber hand, gave evidence on the lines of the previous witness. In his opinion the straining of the boards left an opening of about four feet.

William H. Gummer, architect, of Auckland, detailed the result of an examination made at defendants’ request, and put in plans showing the works. The smoke stack was two feet from the boiler house to which it was connected by a brick flue. Subsequent to the fire the brick floor of the engine-room collapsed. There was comparatively little timber used in the buildings, and therefore little inflammable material. He found the walls of the boiler house cracked on the sides. They were typical earthquake cracks. The concrete work was not good. To a certain extent he could separate the fire and the earthquake damage-

The hearing was adjourned till to-mor-row.