Sessional_Paper_1923 — Page 79

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On the 18th July, 1918, the Shipowners Protection Association, of which Messrs. A. R. Burkill & Sons were members, put the following questions :---

1. "In the event of a vessel being damaged or lost through any act of war on the part of an enemy raider, what compensation or redress would an owner be liable to receive from the Government?"

2. "Does war risk insurance as covered by the Government include loss or damage to a vessel occasioned by an enemy raider and would owners receive the full insurance?"

On the 23rd July, the Government replied:·

Referring to your letter of the 18th July, I am directed to invite your atten- tion to Sections 11 and 12 of my circular letter of the 13th March, which read as follows:-

11. The Government will accept all war risks (vide Clause 19 of Charter Party T. 99) but, where it has been your practice to incur this expense in the past, you are authorised, for the present, to continue the expenditure on Government account, whether in the form of premium or call in respect of Policies on hull and machi- nery, including the continuance of any excess value insurance hitherto maintained by you, on the understanding that you will hold the Government absolved from liability in respect of the amount for which insurance was effected under insurance poli- cies; but when any policy on a vessel lapses it should not be renewed.

12. If the war risk insurance above authorised is vitiated by your obedience to Admiralty instructions, other than those of local navigation, or by your obedience to instructions of the control Committee, the Government will indemnify you against the con-

sequences.

Clause 19 of Admiralty Charter Party T. 99, which is referred to above, reads as follows:--

19. The risks of war which are taken by the Admiralty are those risks which would be excluded from an ordinary English policy of marine insurance by the following, or similar, but not more extensive clause:--

Warranted free of capture, seizure, and detention and the consequences thereof, or of any attempt thereat, piracy excepted, and also from all consequences of hostilities or warlike operations, whether before or after declaration of war.

Such risks are taken by the Admiralty on the ascertained value of the steamer, if she be totally lost, at the time of such loss, or, if she be injured on the ascertained value of such injury.

Should a dispute arise as to the value of the steamer the same shall

be settled as laid down in clause 31.

This reply relates of course only to ships under Government requisition under the scheme laid down in the above circular letter."

As the owners knew exactly their rights and the Government's liabilities in respect of war risk; namely that their ships were fully covered in a value which would be settled by agreement, or, failing agreement, by arbitration, and on appeal by the Courts; it did not occur to the Government to notify them individually as to the precise manner in which the risk was being carried. Detailed information was open to any one who might enquire. A similar practice obtained in respect of vessels under Imperial requisition.

The Government received no claims for a refund in respect of war risk expenditure incurred by owners, nor did any owner state that he was insuring against war risk.

34. Mr. Burkill wrote also:-

"Further as the Honourable Mr. A. G. M. Fletcher is still trailing the red herr- ing re Imperial Government and the Naval Commodore, etc., being respon- sible-may I remind him that this also was a Government secret, and if he