Fireman's Fund Carries Major Loss Preliminary salvage operations on
submerges S.S. Diamond Knot, which sank August 13 of Crescent Bay, Wash.,
were proceeding last week. Foss Launch & Tug officials declared that
they are now endeavoring to ascertain if the 50,000 gallons of fish oil
are still aboard the ship and if so it will be pumped out. They will also
endeavor to salvage an automobile on the deck of the vessel, as well as
the fish boat, which by last reports was hanging by one line. Tierces of
salt salmon on the deck it is also expected will be saved.
With regard to main cargo, the 154,000 cases of salmon, there are some
questions to be worked out by the hull underwriters, cargo underwriters
and the U. S. Maritime Commission.
Any cutting into the hull to salvage the cargo will necessarily weaken
the structure of the hull itself and it first must be decided whether the
can be salvaged. Samples taken to date of the salmon indicate that it is
still in good condition and it is believed that the salmon can be saved
if the work can be done in the near future.
A number of interesting points that Foss Launch & Tug has already
performed salvage services for the Diamond Knot since their tugs towed
the vessel after its crew had abandoned her from an area where the depth
was 70 to 90 fathoms, to a depth of 17 fathoms, where she sank, and now
lies on her starboard side at an angle with one end lying in deeper water.
Salvage operations of this type are usually undertaken on one of two bases,
that is, "No cure, no pay" or a fixed fee basis plus expenses.
$3,500,000 Salmon Cargo
The 154,000 cases, which are insured at approximately $22.50 to $23.00
per case, make a total insurable loss of approximately $3,500,000. Ninety
percent of this coverage is believed to have been insured by the Firemen's
fund Insurance Company, since they are reported to have had all of the
132,000 cases owned by Libby, McNeil & Libby, all of the Columbia River
packer' salmon, and about half or the Alaska packers' cargo of salmon.
A line of this amount would be widely reinsured. How much net retention
was held by the Firemen's Fund was not known.
Representing underwriters and the salmon packing companies in the operation
is Jim Gow, of Alexander Gow, Inc.
The Diamond Knot C-1-M-AVI type coastal freighter was rammed broadside
by the steamship Fenn Victory in a dense fog that filtered the Straits
of Juan de Fuca August 13. It wasn't till after the vessels were separated
that the Diamond Knot plunged to the bottom off Crescent Bay, while tugs
were trying vainly to beach the craft and save the valuable cargo of salmon.
The Diamond Knot owned by the Maritime Commission and operated by the Alaska
Steamship Company, was inbound from Bristol Bay when she locked horns with
the larger freighter Fenn Victory. The Fenn Victory, also owned by he Maritime
Commission, is operated by the American Hawaiian Steamship Company in intercoastal
service.
The vessel suffered an estimated $13,000 damage in the crash and has
already undergone repairs at Todds Seattle Drydocks.
