UNION STEAM SHIP CO.

Press, Volume XLIX, Issue 14744, 14 August 1913, Page 8

UNION STEAM SHIP CO.

A RUMOURED COMBINE

(BI_CTA_ TO "THE PRESS.") DUNEDIN, August 13. Advices received by mail by Wellington merchants indicate that tho Union Steam Ship Company may continue to fly the familiar old "house flag," but that in tho futuro it will be part of a rather extensive combine of owners who are now amalgamating or endeavouring to amalgamate in view of the opening of the Panama Canal.

The combine's endeavour wid be, of course, to take a firm hold of the trade of the Pacific and to link it up with suitable Atlantic steam concerns. The owners, who have already been in treaty over the matter, are believed to include the P. and 0. Line, the Cana-dian-Pacific Railway directors, the Royal Mail Steam Packet Company, and others (including the Union Steam Ship Company of New Zealand). To this, of course, convincing colour is lent by the Union Company's recent building, which is known to be far in excess of their Australasian requirements, and also in view of the company's recent elecision to heavily increase the capital. Those in the "know" here state emphatically that, about the time (1912) when the Union Steam Ship Company were thought to be giving wav te Labour right and left, they had an offer to sell out for £2,000,000 to two concerns. These concerns are named as the Canadian-Pacific Railway and the Cunard Company. It is stated on very fair authority that the Union Steam Ship Company during the process of negotiations decided to raise the figure to £2.500,000, and on hearing this (and knowing what Labour troubles in New Zealand amounted to), the other side, which was then in treaty with the Union Steam Ship Company, eleeided to drop negotiations for the purchase. The Union Steam Ship Company, however, have pursued the business in various e'.irection.s. and the result will now undoubtedly be the biggest steam combine in the annals of the Pacific Ocean trade.

A reporter made enquiries at the head office in reference to the above statements, but was assured they were entirely without foundation.