INSURANCE CLAIM

Wanganui Chronicle, Volume 74, Issue 147, 24 June 1931, Page 8

INSURANCE CLAIM

WAIROA FREEZING WORKS FIFTH DAY’S EVIDENCE [Per Press Association. 1 GISBORNE, June 23. The hearing of the claim of the Farmers’ Meat Co. for £78,500 insurance consequent upon the destruction of the works by lire shortly after the earthquake, entered the fifth day to day with the case for the plaintiffs still uncompleted. Thu managing director of the company (Alfred Gordon Nolan) con tinned his evidence this morning ex plaining early negotiations with re pre sentatives of the defendant companies (the New Zealand Insurance end Eagle Star and Dominions), Mr No.an stated that Mr Kirker, representing the Eagle, Star, stated that having inspected any damage he had altered his opinion, and “if there was any kick coming it would not bo against him, but against the directors.” Upon the conclusion of Mr Nolan’s evidence the plaintiff’s ease concluded, subject to the right to call further evidence on the question of the quantum of damages. Case for Defence. Opening for the defence, Mr lliuhmond explained that insurance companies, while always sympathetic and reasonable in dealing with losses, had a duty to their shareholders and the general body of policy holders. At was obvious that no criticism could be justly levelled against the compam-s for refusing ta cover risks for wim’n no premiums wore paid. The risks attending upon earthquake were ?o great that that could not be taken into consideration in the ordinary fire cover. In the present case it was a lemarkable coincidence that the fire occurred such a short time after the serious ’quake in a place where no known fire danger exists. Plaintiffs gave no reasonable explanation of the origin of the fire, but ho 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, in proving that the fire was not caused by a*ny other means, they had shown that it was caused by the earthquake. Defendants had no one to help them in their case. Everyone in Wairoa was vitally interested in the success of the action. It was natural therefore that the defence was unable to present anything like the number of witnesses called for the plaintiff. Evidence would be given, however, that the damage done by the ’quake was minimised by earlier witnesses, and that the effect of the shock had been greater than that described. This was supported by correspondence immediately after the earthquake, particularly the frantic telegrams sent for boats to remove the carcases.

Witnesses’ Evidence. The first witness for the defence was George Henry Lawson, carpenter and bridge-builder. He said that at the time of the ’quake 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 earth quake witness mid 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 ho crossed on the footbridge on the lower side, which had dropped four feet or more. He made his way to the freezing works boardinghouse 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 building nearest to him appeared to be a bit broken up and the gable end seemed to be torn our. 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 bricks. Looking at the freezing works from the town side, the list was towards the offices. Witness’ opinion was that it would have to be re-built. Thomas Brown, butcher’s assistant, said he was working in the works on the day of the ’quake. Wlicn 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 C store was visible, and he noticed the boards on top were raised out 18 inches and then gradually tapered to nothing at a point about a quarter of the way down. On Thursday he went to work again and noticed the gable between ‘he fellmongery and 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 fellmongcry and cooling floor had. a cant of about nine inches. From the river be could see that 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. Tn his opinion the straining of the boards had Jolt 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 21 feet from the boiler house, to which it was connected by a brick flue. Subsequent to the fire the brick floor of the engineroom collapsed. There was comparatively little timber used in the buildings and there fore there was little inflammable material. He found the walls of the boiler house cracked in the sides. They wore typical earthquake cracks. The concrete work was not good. To a certain extent ho could separate the fire and ’quake damage. The hearing was adjourned til! today. ■ _