THE SHIPPING MERGER.

Auckland Star, Volume XLVIII, Issue 142, 15 June 1917, Page 2

THE SHIPPING MERGER.

BIG QUESTIONS INVOLVED. CONTROL AND FUTURE TRADE. MINISTER'S COMMENTS. (By Telegraph. —Press Association.) WELLINGTON:, Thursday. A statement on the fusion of the Union Steamship Co. with tile P. and 0. Co. was made to-night by the Minister of Marine, tlie Hon. G. \V. Russell. Mr. Russell said the fusion scheme had been literally rushed through, the sliareboldcrs being given only a few days to hand in their scrip. Why all this hurryin rushing the scheme to its fruition stage before Parliament m»tr The Union Co. was our most national concern, it had been built up out of our trade, mail subsidies, and enterprise. From statements in the newspapers lie saw that tlie company was earning -100,000 a month from tlie Government for war purposes. Was it to he expected that New Zealand would lightly stand aside and see this great concern wrested from its hands and pass into the control of a company that employed Lascars, coolies, and Chinese to man its ships?

"The tonnage of the Union Company's fleet," said Mr. Russell, "was 271.000 tons, partly registered in Britain and partly in New Zealand. Recently several of the iargest vessels had their registry changed from New Zealand to London. The strong, pressing reason urged by the company was for insurance purposes." There would be no further changes of the registry whilst he held his prejsent office.

Practically tbe price to be paid was £4,000,000 '(of -which £3,000,000 represented ordinary shares and the remaining £1,000.000 preference shares), or —14 15/ a ton. Was this the value of the steamers to-day? Besides the steamers, there were all the other assets of the company, its goodwill, existing contracts, buildings, repairing sheds, laundries, and, above all, its reserve funds, which are said to stand at £750,000. New Zealanders must regard the passing of the company from our hands with feelings of aversion and anxiety, not unmixed with envy.

There were three questions involved, the loss of control, the relation of the _tate and our future trade. What control could New Zealand have of a company .whose headquarters are in London? What guarantees have they that our trade interests would not be subordinated to those of dividends? What guarantee was there that the Islands, Australian and general Pacific trade will ibe maintained for the development of our country? Viewed from these points of view the question ceases to be one of shareholders.

As Minister of Marine the question had already received his closest attention and w._3 being considered by the Government. Information was now being gathered with all speed possible from all departments interested, and no delay, would take place in preparing a full report. The fact of tbe Government paying a huge sum a month for its charters of Union boats as transports and hospital ships was an element that must be considered.