Page:Encyclopædia Britannica, Ninth Edition, v. 3.djvu/162

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146
AVERAGE

losses for which no general contribution could be claimed. Although nothing can be more simple than the funda mental principle of general average, that a loss incurred for the advantage of all the coadventurers should be made good by them all in equitable proportion to their stakes in the adventure, the application of this principle to the varied and complicated cases which occur in the course of maritime commerce has given rise to many diversities of usage at different periods and in different countries. It is

  • oon discovered that the principle cannot be applied in any

settled or consistent manner unless by the aid of rules of a technical and sometimes of a seemingly arbitrary character. The distinctions on which these rules turn are often very refined indeed. This is the chief reason why no real pro gress has yet been made towards an international system of general average, notwithstanding repeated conferences and other efforts by most competent representatives from different countries, seeking to arrive at a common under standing as a preliminary basis for such a system. A brief summary only can be given here of the rules which have been established in Great Britain by usage, or by legal decisions, in connection with the subject. All general average losses may be divided into two principal classes (1), sacrifices of part of the cargo and freight, or of part of the ship, for the general safety ; (2), extraordinary expenditures incurred with the same object. "VVe shall notice these in their order. When a part of a cargo is thrown overboard (or jettisoned, as it is termed) to save the ship from foundering in a storm, or to float her when stranded, or to facilitate her escape from an enemy, the loss of the goods and of the freight attached to them must be made good by average contribution. But if goods jettisoned have been originally stowed on deck, no contribution can be demanded for them, unless they are so carried according to the common usage and course of trade on the voyage for which they are shipped, or with the consent of all the parties concerned in the ship and cargo. If, instead of being thrown overboard, the goods are put into boats or lighters, and lost or damaged before reaching the shore, such loss is regarded as a virtual jettison, and gives a claim to average contribution. The same rule applies to damage occasioned by the goods being put ashore on muddy ground, or where they cannot be kept in ordinary safety. But when the goods have been conveyed to a place of ordinary safety, they cease to be at the risk of the general interest ; and should they be damaged there by tire or other accidents the loss must be borne by the indi vidual proprietors, or by their insurers. Damage done to the cargo by discharging it at a port of refuge in the manner and under the circumstances customary at that port, is not allowed as general average. This rule covers the case of wastage, breakage, leakage, &c., from handling the goods in the ordinary course of -discharging, warehousing, and reshipping. If goods are thrown overboard from having become, through heating or other cause peculiar to their own con dition, a source of special danger to the whole interest, the loss is not recoverable in general average. So, too, if a cargo is discharged at a port of refuge from damage resulting from its own vice propre, the costs are chargeable to its owners. The loss of corn, salt, guano, or similar goods, arising from their being pumped up or baled out with the water in the vessel, is not recoverable by average contribu tion. The damage done to the cargo by means of water thrown down the hatches, or admitted into the ship by scuttling her, for the purpose of extinguishing an accidental fire, was excluded from general average by the usage of Lloyds up till 1873. In that year the courts of Queen s Bench and Exchequer Chamber expressed a strong opinion in connection with the case of Stewart v. the West India and Pacific Steamship Company, that such damage ought to be made good by average contribution. The usage has now been altered accordingly. The amount of compensation to be made for goods sacrificed by general average acts is determined by the net market price they would have produced on arrival at the port of destination had they not been sacrificed ; but under deduction of the freight attaching to them (which is made good to the shipowners), and of the charges for duties and landing expenses which are saved. The general average acts next to be considered are those which involve sacrifices of part of the ship or her materials. The same principles which regulate the case of goods thrown overboard apply also to the jettison of the ship s chains, anchors, hawsers, spars, boats, or other stores. But if water-casks are stowed on deck, or if chains and hawsers are carried on deck when the vessel is not near the land so as to render it necessary that they should be so carried, the loss arising from the jettison of these articles falls on the shipowner ; and if boats are jettisoned in consequence of their having been broken adrift from their fastenings on deck by the force of the sea, they are excluded from general average, and are charged to particular average on the ship. The damage done to the ship by cutting holes to effect a jettison of the cargo, or to pour down water to a fire, or by scuttling her for that purpose, is allowed as a general average charge. The damage arising from cutting or knocking away a portion of the ship s bulwarks in order to prevent the deck from being flooded in a storm, is com pensated in the same manner. When sails or masts are cut away in order to right a ship which has b;>en thrown on her beam-ends, or to pre vent her from driving on a lee-shore, the loss is made good by average contribution ; but if the object in cutting away a sail or spar be merely to save a mast, the loss is not made good in general average. It frequently happens that masts or yards are sprung and carried away by the force of the wind, and are left entangled in the rigging, or hanging over the ship s sido in what is termed " a state of wreck ; " in these circum stances it becomes necessary to cut them away, with the sails and rigging attached, and to throw the whole over board, otherwise they would impede the navigation, and endanger the ship and cargo. On this ground it is held by some authorities that the loss caused by the act of cutting them away should be made good by average con tribution. But this act is the direct consequence of the previous accident, which places these articles in a situation where it is impossible to save them without imperilling the ship, cargo, and lives. It would not be reasonable to imperil these for such a purpose ; whence it follows that the displaced articles are already virtually lost by means of the original accident, before the loss is actually con summated by cutting them away, This loss is accordingly excluded, by the usage of this country, from average con tribution. On the same principle, no contribution can be demanded for any articles which are sacrificed as having themselves become, through previous accident, the imme diate cause of danger to the whole interest. The loss of sails or spars, in consequence of carrying a press of canvas to avoid a lee-shore, or to escape from an enemy, is not the subject of general average in this country ; neither is the damage suffered by the ship from straining, under any such extraordinary press of sail. When anchors and cables are slipped from in order to work a vessel off a lee-shore, or to avoid collision with another ship, the loss is made good by average contribu tion ; but if the cable is slipped in ordef that the vessel

may join convoy, or because the anchor has become