THE AMALGAMATION OF THE STEAM NAVIGATION COMPANIES.

Hawke's Bay Weekly Times, Volume 1, Issue 4, 28 January 1867, Page 23

THE AMALGAMATION OF THE STEAM NAVIGATION COMPANIES.

Some two months ago we directed attention to the fact that a proposal had been made to the shareholders of the New Zealand Steam Navigation Company for the amalgamation of their business with that of the rival company, known as the Panama, New Zealand, and Australian Boyal Mail Company. It will be remembered that we could not bring ourselves to look favorably on such a scheme, as we believed that the wholesome competition 'existing between the two companies was a public benefit; neither did we think that sufficient ground .)'■>; > ■ 1 i;, ,<■ Jjlij for the proposal had been shewn to exist. At that time, however, we were unable to say what was the feeling of the shareholders as a body on the question, as sufficient time had not elapsed -for them to make their views known; and the whole subject was left in their hands until the month of March next,' when the question will he submitted to the suffrages of the shareholders. It will be supposed that we have regarded with some interest such indications as have come under our notice of the feeling of the shareholders on the; question, in order that we may form ah opinion as to what may be the result of the poll. Foremost amongst the opponents of the amalgamation scheme stands Mr W. Bishop, of Wellington, and that gentleman has forwarded to us a which he has sent to the shareholders,, setting forth his views in detail, blit we 'are sorry that we:cannot afford space sufficient for it in our' columns. Nevertheless, weTwiil proceed to give an absjtract'of the' arguments he 'has' used,: and the q oncjiusioDs !to: vhicji. wriYed

Mr Bishop thinks notice of the intended proposal should have been given to the shareholders previous to the meeting in October last, in older tljat other than Wellington' shareholders might have had an opportunity of being heard on the question, and condemns the haste which would have

, . , . , .) r- "’• f. : ,n ’ brought the question, to an issue within two months, but which period* through' some? opposition, ’ was prolonged to five months. He thinks, too, that even should a majority of the shareholders be favorable to the scheme, they have not the power to compel dissentients to agree to it, and that 1 such will have a just claim against the Directors for the value of their shares if it should he done. He shows, or endeavours to show, that in protion to the capitals employed by the two companies,, the earnings of the New Zealand Steain Navigation Company are larger than those or the other, and generally that its financial condition is the soundest of the two. Turning his attention to the affairs of the rival ’ company with which ij; is proposed to amalgamate, he estimates •° ' 1 •' * ; ' ‘' J v-‘ ) that that business has the prospect of an actual loss before it of <£22,000 per annum, in working the line; of working expenses and repairs over the probable receipts in subsidy, passage money and, freight, independent of the interest on capital sunk which, being added, brings the probable loss on the first year's working to £57,000. One more feature is "noticed; which is that the vessels of the Company are not insured, owing to the enormous sum that that the in surance would cost per annum; yet that t]be risks they run are above the aver age;—arriving in port 1000 tons lighter than at starting; the screw but partially immersed ; coal all but gone; and not sufficient. canvas to stand the emergency of a iong adverse gale. In, the face then of a probable loss, and a certain perilous nsk, he considers it most unwise to entertain proposals of amalgamation, and thinks if the affairs of the New Zealand Steam Navigation Company are desperate, that it’would be better'to wind the Company up, and proposes a scheme which he thinks would make the shares of the Company saleable, and

prevent any great sacrifice. Not that he believes so extreme a measure necessary or desirable, but as preferable to amalgamation; but that, with good management, the New Zealand Steam Navigation Company would prove a good investment for ‘Shareholders and a benefit to the Colony. Mr Bishop proceeds to indicate' a scheme' for such better management, which ‘‘as no one else will take the initiative, I feel it to', be a duty to'look after iny own interest; when instead of getting .in the* last two years, 1 £l2O in dividends, I have received only £3O. And also as a colonist to try to prevent a spirited and useful enter-

prise from being brought to nought by absorption in a rival company. ’ I believe that the existence of a colonial Company is a more tangible good to us, than the large promises of the P. N.Z. Co., which may come .down with a crash, andhow should we look then, with our steamers swept off with their own, to be'sold perhaps in London or Melbourne, without our having any voice whatever in the matter ?” 1