The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-09-24
WAR RISKS BISE
ON PACIFIC CARGOES

The Examiner SAYS: War risks on
cargoes TO Japan jumped yesterday
from a quarter of per cent to from
3 TO 3 per cent as a result OF the ar
rival of the Russian cruiser Lena in
this port
| This means that shippers must pay
| from 8 to per cent of the value of
their shipments to insure them against
/ capture and confiscation en- route to
! Japanese ports. Tt also indicates the
| paralyzing effect the presence of the
/ Lena in this port or in these waters
/ will have on the shipping from San
| Francisco and the entire Pacific Coast.
/ This unexpected situation, with it's
far-reaching and vital consequences,
! created a stir in the business world
YESTERDAY that was almost akin to con-
sternation.
| Marine insurance men have had their
! fingers constantly on the pulse of trade
| with the Orient since the war began.
| II is their business to figure On the
/ probable jeopardy of cargoes and fix
/ the rates accordingly. As a conse-
uuence when it was Announced yester-
day that war risks had risen from fif
teen to twenty fold, the significance of
the Lena's presence here began to be
realized
! a constant stream of supplies for
Japan, contraband according to the
/ Cars proclamation, has been shipped
| from this port to Japan since the war
| started and this condition has been
made possible by the bottling up of
| the Russian warships by the Japanese.
When the vIadivostok fleet started on
| its sensational raid into Japanese wat
| ers last July. war risks took a jump
and shippers and steamship owners
| held their breaths until Admiral Kami-
mura sent the hostile warships scurry-
! ing back to Vladivostok. Then war
risks dropped.
| RATES PROHIBITIVE.
! Now comes the cruiser Lena into this
harbor, 1000 miles away from where
! she ought to be, armed and ready for
action. but pleading the need of re-
pairs. Up go the insurance rates and
this time they are so high as to make
them almost prohibitive.
! Local marine insurance men do not
believe that the Lena is here for any
other purpose than to scare San Fran
| cisco merchants and steamship compa-
MES and thereby check the shipment of
sinews Of war to Japan. They argue that
it is a subtle move of Russia that is
already having the desired result and
point TO the abnormal rise OF insur-
ance rates az proof of the argument.
What the United States Government
may do in the matter, they say, has at
present no bearing on the moral effect
the Lena, has produced on shipping
here.
If she is allowed to repair and de-
part it is admitted that her presence
and the likelihood of her interference
with commerce from San Francisco
will still remain a menace that will
keep insurance rates up and shippers
on the anxious seat. And it is also
admitted that the only thing that
would restore a feeling of safety and
reduce the war rates would be her en-
forced disarming.
There is another phase of the Lena's
presence on the Pacific Coast. The
Togo Kaisen Kaisha and the Nippon
Yusen Kaisha, both japanese steam
! ship companies, are running steamers
into San Francisco and Puget Sound
! ports. These steamers are liable to
capture by the Lena and the prizes
could easily be put into commission at
4 y
SCHWERIN AND THE LENA.
| Manager r. P. Schwerin of the Paci-
fic Mail Steamship Comany said yes
terday:
Just at present the Pacific Mail
has nothing to fear from the Russian
vessel. I do not believe that it win
nave anything to fear even in the flu
ture. The ship has been in port over
the time limit of twenty-four hours
That is proof that she seeks this port
as an asylum either for repairs or sup
plies-perhaps both. 1 cannot believe
that the Russian Government would
send it's vessel here, take advantage of
the time limit, receive succor at the
hands of the harbor, and then order it
off the heads to play the pirate.
In case the Lena should go outside
the three-mile limit and cruise about
in manner that might indicate she
was lying in wait for our steamers. the
Pacific Mail Company would demand
the protection of the United States
Government. 1t would ask that it's
steamers be escorted to sea by one or
more of the battleships that now lie
| in the harbor
Should complications arise whereby
our ships would be unable to obtain
sufficient protection, such circumstance
es would not seriously interfere with
our shipping. The company would
simply discontinue the handling of
japanese. cargo, assuming such a
course as was pursued for a month
ar the beginning of hostilities between
Japan and Russia.
Thus far the company has taken no
steps in the matter, as nothing has
arisen to demand attention. The mere
presence of the Lena in port should
not be cause for alarm among the
shippers.
The Pacific Mail will probably get
two of its vessels. the Korea and ST.