Sessional_Paper_1949 — Page 19

15

even partially for domestic purposes. We understand that from time to time, goods excluded by the warranty were in fact stored there, and when this became known to Insurance Companies, the higher premium of $8.00 per mille was charged. That probably explains why the China Insurance Company charged that premium on the drums of film-scrap while stored in Godown No. 1. Godown No. 5 formed part of a building partially used for domestic purposes. There was no warranty against the storage in this godown of any type of goods dangerous or otherwise, but, because of its connection with domestic premises, the maximum premium on a Chinese-owned godown, i.e. $10.00 per mille, was charged. This is the highest fire-insurance premium charged by Insurance Companies, who are members of the Fire Insurance Association.

55. The acceptance, distribution, and refusal of goods for storage by the godown staff depended entirely on whether there was space for their storage in any particular godown without committing an "offence" against, what Mr. Wilkie Lam described as, the "insurance regulations". A complete lack of knowledge of the Dangerous Goods Regulations was admitted by the senior godown staff, and this ignorance extended to the Chief Manager of the Wing On Company, Mr. Kwok Lam Po, who was 'ultimately responsible for the management of the godowns. If the staff's reliance on the classi- fication adopted by the Insurance Association had not been complete, it is possible that they would have known the absolute prohibition by law against the storage, except in very limited quantities, of cinematograph film and dangerous goods of any category except 7 and 8 in places connected with domestic premises. It is unfortunate that the insurance tariff contains no absolute warranty against the storage of dangerous goods of Categories 1-6 and of cinematograph films in buildings connected with domestic premises, as it is then possible that, had it done so, even though the staff were in ignorance of the official regulations, this lamentable loss of life and property might never have occurred. We make this statement in the belief that the nature of the contents of the drums of film scrap were known to at least some of the members of the godown staff, because of course rubber would be classified as a Category 8 sub- stance only, and its storage in a godown connected with domestic premises might have been permitted by the Chief Officer of the Fire Brigade.

Ignorance of Dangerous Goods Regulations among the Wing On Staff;

56. The failure of the insurance tariff to take account of the law does not excuse the self-admitted ignorance of the senior godown staff in regard to the Dangerous Goods Regulations. We regard it as inexcusable that a person in Mr. Wilkie Lam's position, a director of the Wing On Company and directly responsible for the manage- ment of its godowns, should be so ignorant of the regulations concerning the storage of dangerous goods. He held a responsible position on the Wing On Godown staff in 1940 when the Dangerous Goods Regulations were revised, and ought to have known something of these new regulations. We feel that Mr. L. P. Kwok the Chief Manager of the Wing On Company cannot be entirely freed from the responsibility of allowing such a state of affairs to exist. There are admittedly certain mitigating circum- stances, and these are discussed in the next Chapter.

Inspection of Wing On Godowns:

57. Godowns No. 2 and No. 5 were officially inspected by the Chief Officer of the Fire Brigade in April, 1947, as a result of an application by an owner to store 80 bags of saltpetre (Category 7) in the Wing On premises. Mr. McIntosh Smith, accompanied by an interpreter, visited both godowns on that occasion, but, as Mr. Lam stated that he had no desire to store the saltpetre, the inspection appears not to have been directed specificially towards the suitability of the premises' for the storage of dangerous goods. Mr. Smith stated in evidence that Godown No. 5 was at that time comparatively empty, and it is known that none of the dangerous goods present at the time of the fire (with the possible exception of the Calcium Cyanamide, which was not insured) were then stored in the godown. He had no reason to believe that dan- gerous goods were being stored. This is the last occasion as far as we were able to ascertain on which Godown No. 5 was inspected by the Fire Brigade.

58. Mr. Smith did in fact visit the Wing On Godowns again early in 1948, but on that occasion his visit was of a more casual nature and only Godown No. 2 was inspected. At the time of this visit the film was already stored in Godown No. 5, sọ