TO BE TOWED OR INSURED?

Gisborne Times, Volume XXX, Issue 3535, 28 May 1912, Page 2

TO BE TOWED OR INSURED?

THE DREDGER MAUI. HER PROPOSED TRIP TO AUCKLAND. . BOARD DECIDE TO CALL FOR FRESH TENDERS. The question as to whether the dredger Maui should be convoyed xo Auckland next month' for her annual overhaul or whether the Board should pav £IOSO for insuring her for £25,OOQ while she is away from Gisborne was the. cause of a lengthy discussion at a meeting of the Gisborne Harbor Board yesterday. Mr AY. L. Clayton wrote stating ".bat he desired to point out to the Board that by the paragraph referred in a local paper concerning the Beard's decision regarding insurance there was nothing to show that Die Board intended to invite tenders, r"d it was unlikely that anyone disposed to trader would go to the expense of cables before they had received some definite and official intimation. Jtor instance the report gave no particulars as-to the risk desired, and the Board’s office being closed rendered it impossible to inquire. A point which seemed to have been overlooked by the Board was that the Maui was "actually covered in London on Tuesday, April 30, at 80s under a Lloyds’" policy (probably tentative). No other broker on .Lloyd’s could possibly tender a quotation for the 1 risk until this was cancelled, although it was possible that they might have been prepared to tender 20s per cent, or less. As no New Zealand offices were prepared to tender the Board was thus absolutely debarred from the benefit of any competition for the risk. ■ Dr. Collins wanted to know if what was published in the first instance could bo taken as a fact that the Board decided to insure the Maui, and if this were public property on the same day as the Board decided to call for tenders. The secretary (Mr McDonald) saia that the statement was as follows: “The finance committee was authorised to arrange for the insurance of the dredge Maui, not exceeding £25.000.” Dr. Collins said that he did not think they could call that, a public notification. Was it a public notification on which anyone could tender ? —No. , . The 'Chairman: That made it public property. Dr. Collins said that the insurance was registered in London on the Tuesday morning, and he wanted to 'know how the extract from the newspaper had any bearing on the matter for prior to the advertisement the policy was registered at Lloyd’s. _ He would sav emphatically that this was not a fair position for the Board t-o allow

to |l>e adopted for it placed a burdenon the backs of the ratepayers and ■ placed the Board under disadvantageous circumstances. The Chairman: lamat a less as to what . Dr. Collins means. The Board decided what they, would do, and they had nothing more to do with the matter. Dr. Collins wanted to know if the Board disclaimed any responsibility in tlie matter from whom the information was obtained, and how the policy was registered in London on the following morning? The Chairman said .that one ot the "members of the Board sent the caolegram or caused it to be sent. He assumed the secretary did not go round and tell everybody. The Board had nothing to do with the matter. It was public property as soon as the paper was published. Dr. Collins again submitted it was not public property until the advertisement was inserted. The Board had to stand -bv the result of the cablegram that was sent, which meant a considerable loss of money to them. If they were going to lay down the pr indole that everything becomes public if it is reported in a newspaper then the advantages of such a principle accrue only to such members as sit on the Board. No member who was financially interested should sit on anv Board because it was unfair competition. He assured them that insurance coinpa-nies in the south who had followed this matter placed a moral responsibility on the Beard. Mr Parker declared tlia.t a resolution was passed and anyone could then t.Uvo advantage of it. Mr "Sawyer said lie thought it was wrong for any member to take-any information lie might get from any meeting of a local body. Mr tVaehsmann said that ho was the scapegoat in this matter. It was announced that, the finance committee were going to call for tenders. The secretary: The Board gave- authority for tenders to be called at once. Mr AVaclismann said that by the time he got his message away there was plenty, of time for others to get in ahead of him. There was nothing smart in what he did, and nothing which he was ashamed of. It was pure business, and lie was justified in cabling away. He took no advantage of his position. The chairman thcraght it was a business transaction. No one could say that the Board would have got the insurance cheaper through any other agent. Air AA’hite thought that it was unfortunate that a member of the Board should be connected with the firm of agents that tendered, but personally he would be very sorry to see him go cif the Board. ' Seeing the member , was. on- the Finance- Committee that received the report lie thought it would have been better if he had absented himself from that committee meeting. The Chairman pointed out- that previous to the Maui’s last trip to Auckland she was insured months before. Mr AVachsmann explained that Lloyd’s wore asked wliat rate for this specific risk, and it did not matter 1 wr.o applied there would only be one price. The last time the vessel was insured Dalgety and Co. got it._ After further discussion Mr AA'achsmann said he would communicate with his London office at once and tell them their tender was declined. Dr. Collins pointed out the price quoted was Sts per cent., but he was informed that Lloyd’s price was 80s. He wanted to know how the difference came about-

Mr AVachsmann said he did not know. His cable stated Lloyd’s price was 84$ per cent, and he would show it to Dr. Collins if he liked. The Engineer reported that the question of the relative merits of insurance versus convoying may bo summed uo as follows:

First. Insurance.—lf the dredge were insured for £25,000 against total loss, "the Board would be taking a risk of £15,000. In case cf total less, there is a matter which should be carefully (considered and given due weight to. and that is that the dredge will carry 17 souls, all married. These are covered by accident insurance up to a. limit of £3OOO, within the limits of the -port Gf Gisborne only. From the purely financial aspect, the amount of * compensation liable to be paid to the widows, in case of all hands being lost, would amount to about £BOOO. If a special accident policy were taken out for the double trip, covering the full amount of £3OOO, the o:ctra cost to the Board would be £BO, or for the usual 'cover on £3OO would be £3O. But I submit that the risk of loss of life demands more consideration than the merely financial aspect- In case of partial disablement to the dredge, and assistance being signalled for, the Board would have to pay at least £IOO per day or salvage rates. Second. Convoying.—There is no doubt as to the sea going-capabilities of the Maui; however, if she is convoyed by a sea-going tug for the -whole voyage and hugs the coast, the risk is reduced to a minimum, as the probability of both boats breaking down is so remote as to be hardly worth .‘consideration. Under convoy, the Board could rest satisfied that every human precaution had been taken to safeguard the dredge and her crew on the voyage to Auckland and hack. Whether the dredge is insured or convoyed the Board have to accept risks, and the above remarks may assist them to arrive at a decision. Under convoy, the Board might not consider it necessary to increase the accident insurance -on the crew. Two tenders have been received for convoying the Maui to Auckland and back.' The first is from the Dcvonport Steam Ferry Coy., of Auckland, - who offer to undertake the work with : their paddle tug Lyttelton for the \ sum of £32 10s per day or at pro rata for .part of a day. Assuming that the double trip takes 10 days (i.e., 2 days for tug alone, and 3 days for tug .and dredge) the total cost would -be £325, In case of -bad weather and the dredge having to take shelter, -or in case the weather was not suitable on the arrival of the tug at Gisborne for the dredge to make a start, this amount does not include harbor and light dues at Gisborne. The second tender is from the Union S.S. Coy. to provide the Squall for the sum of £l5O for the single trip or for £250 for the double trip on the -basis of a trip occupying 48 hours. They further ask for £45 per day (or pro rata at per hour for any extra time beyond the 48 hours per trip. To put this on the -same basiswas the first tender, i.e. at 3 days each trip, the cost for the double trip would be £250 plus 2 days at £45, or £340. Of these two tenders the s s. Lyttelton is the most suitable for the work, and their crew would be more-expert in passing a tow-line aboard the Maui in a sea way, if required, than the crew -of an ordinary cargo boat. If the Board decide to engage a convoy, I recommend that the question of

towing bo left to the. discretion of) Captain Probert, as he should not be hound down to any hard and fast condition or course for navigation, as he would have to avoid a beam sea. In other words, Captain Probert would hqyc to set the course for the convoy to take. The Engineer read a letter from the Devonport Steam Ferry Coy. stating that they could not see their way to reduce the amount. They were not prepared to take a lump -sum and asked for as much notice as possible. The Chairman stated he had instructed the Engineer to see if a policy .could be obtained under convoy. It -now come to this , that the Board could either accept the convoy or the insurance. AATien the Board resumed after lunch the Chairman stated that he hadi -received the (following motion from Dr. Collins : I “That Messrs Dalgety and Co. he asked to cancel their policy at Lloyd’s for the dredger Maui, and the Chairman and secretary be authorised to arrange some hotter terms with some other firm of underwriters. Mr Holden seconded the motionCaptain Probert, who was called, said that he had been up to Auckland with tlie dredge. She was safe without insurance, but would be much safer with a convoy. She was a good sea boat, and he would sooner go without it. There had been very few wrecks on the coast, which he knew well. Dr. Collins pointed out that the vessel was worth £40,000, and belonged to the ratepayers, and asked if Captain Probert would care to take the dredge to Auckland without insurance or convoy. The vessel, said Captain Probert, was running greater risks going ip and out of this harbor. Dr. Collins said he did not want that point. Mr Parker thought that the question was unfair. Dr. Collins said he would not- approve of the vessel going to Auckland ' without a convoy or insured without 1 the ratepayers 'being consultedIn reply to Mr Palmer Captain Proi bort said' that the dredger would be ; safer with a convoy than without. 1 Personally speaking he would far ra--1 tlier go on his own. Last time she » went "to Auckland she averaged -six knots, and was not in as good trim ■ as she was at the present time. Mr Smith proposed as an amend- > meat that the Board decides to ac- ‘ cept the tender of the Devonport Steam Ferry Coy. for convoying the vessel to Auckland. He thought that this would ho by far the safest : method both for the crew and the vessel.

Mr Parker seconded the motion. He thought that the risk was very small. Mr AA’aehsniann again said that he would inform his directors that the tender had been declined. Dr. Collins said that if Messrs Dalgety and Co. withdrew lie was informed Lloyd’s would he prepared to consider the matter- They were not doing their best for the ratepayers if they did not take the best means to secure the safety of the Maui. He did not think the Board were justified in taking a risk of £40,000 to save an additional expenditure of £.500. . . The Chairman said that if they were to take Dr. Collins’ advic-e they would have to insure her for the full amount costing £I6BO. They saved several hundred pounds last year by cutting down the amount, and they came successfully through. He was in favor of a convoy, because he believed that if there had been a convoy with tlie dredge Manchester the lives of those on board would probably have been saved. He pointed _ out that even if the dredge were insured and they lost her their river would get into a bad state, and he did not know what it would be like at the end of two years, the time when they could get another dredge. lie thought the safest way would bo to insure her and also -supply a convoy. Mr AVachsmann said that _ there seemed a certain impression in the minds of members of the Board that the price was arranged at this end. He asked the Chairman to read the following cablegram to Lloyd’s: “Referring to your letter of October 14 re dredger Maui, could you arrange insurance for £2-5,000 on same conditions as -last- trip.” The amendment was lost, tlie Chairman and Messrs Smith and Parker voting for it-. The motion was then put and carriedIn reply to the Chairman. Dr. Collins said there were only two courses which they could adopt—they could either call for fresh tenders or else the insurance companies who had agents connected with Lloyd’s should he approached. He would like to have Mr Taplev, of Dunedin, advised that tenders were to be called. He would not go to Lloyd’s. The Bo'ard decided to call (fresh tenders to close on Monday at noon, and to advise Mr Taplev, the South British Insurance Company, Auckland and Mr AA". L. Clayton. The Board subsequently decided that the -advertisement calling for tenders would not be inserted till a reply was received from Messrs Dalgety and Co.’s London office in reply to Mr AVachsmann’s cablegram that their tender had been declined.