IMPORTANT TO NEW ZEALAND.

Evening Post, Volume XXXVIII, Issue 125, 23 November 1889, Page 1 (Supplement)

IMPORTANT TO NEW ZEALAND.

Shipping circles are agitated just \ now over a new commotion set on foot by those stormy petrels of marine affaire, the Messrs. Tyser, who a few years ago — after waging a fiery warfare with the "Ring" — were received much to their own advantage into the bosom of that potent combination. Fortune seemed to smile on them in other directions, for in 1837 they became the superintending agents of tho Colonial Union Company, Limited, and somewhat later tho brokers of the New Zealand Shipping Company. In the latter capacity things hn.vo not boon going altogether smoothly with them of late, owing to their wings being somewhat clipped in regard to the extent of the authority which they expected to wield over the fortunes of the latter company. It is in relation to the Colonial Union line, however, that the greatest contretemps has arisen, and one which seems likely to initiate endless litigation. This company has now been in existence about two years, and at first worked at a slight loss, despite the fact that they entered into largo contracts for the conveyance of frozen meat from New Zealand, and to a lesser extent from Kockhampton, in Queensland. Of late, however, the frozen meat trade has proved more lucrative, besides which the company entered into a pool arrangement with its two New Zealand rivals — the New Zealand Shipping Company and the Shaw, Savill and Albion Company — by which the trio agreed to divide between them in certain stated proportions all receipts for freightage of frozen meat up to a total of, I think, 1,250,000 carcasses. Beyond that figure the receipts wore to be shared equally. Messrs. Grey, Dawes and Co., on behalf of the British India associated steamers, took £10,000 worth of shares in the Colonial Union, thus becoming the largest single shareholders, and the Messrs. Nelson, the woll-known frozen meat traders, £5000; and altogether a total of £43,000 was paid up. A few weeks ago the public were somewhat surprised to learn that the Messrs. Tyser had become concerned in the start of a fresh company, entitled tho Tyser Line, Limited. Later on it leaked out that in the formation of the new company no less than four of the directors of the Colonial Union Company — the Messrs. Tyser and Messrs. Bushby and Wright — had taken the leading part. Subsequently, at a directors' meeting from which Mr. Benham, ono of the Board, was absent (having had no indication of the nature of the business transacted), it was decided to enter into an agreement with tho newly-formed Tyser line for tho transfer to them of the business of the Colonial Union Company, the Tyser line giving the Colonial Union shareholders 5 per cent, debentures in their companj', in lieu of and to the same amount as their holding in the former. In the meantime, and pending the confirmation of the agreement by the Colonial Union sha ; ('holders, the four directors concerned in forming the Tyser line resigned their positions on the Board of the former. Immediately subsequent to the second annual meeting of the company on the 23rd of last month, an extraordinary meeting was held, when tho confirmation of the agreement was moved, it being argued by the Messrs. Tyser and their supporters that the new concern would be ablo to make better arrangements as to capital, etc , than was possible with the old ; and that the shareholders of the latter, with a guaranteed 5 per cent, in the new company, would hold a much better position than as shareholders in a concern that was not yet even divi-dend-paying. Mr. Bonham and Mr. Dawes showed cause on the other side, the latter objecting to the suddenness and secrecy of the whole affair, and expressing his determination not to accept voluntarily the changed position proposed. He much preferred his chances of profit in the Colonial Union to a guaranteed 5 per cent, in the Tyser line. If the prospects of the Colonial Union were so dark, what sort of security would the debenture holders in the Tyser line have on a mortgage of what was practically only the same business transferred ? Mr. Dawes also asserted that the Board could if they liked have declared a handsome dividend for the year just closed, the accounts (including the 6um of £5682 to credit under the pool arrangement) showing a profit of fully 25 per cent, on the paid-up capital, out of which a dividend of 10 per cent, might have been paid, or 15 per cent, have gone to provide for deterioration. Despite these protests, the agreement was confirmed by 33,588 votes to 15,812, the Nelson contingent swelling tho majority, their interests lying more in the direction of cheap freights just now than shipping profits at a later date. The move certainly has the appearance of being dictated by a desire on the part of the majority clique to get rid of independent supervision and to monopolise a future "good thing." It is rather hard, too, that they should seek to trade on the capital of the dissentient section. At the bottom of the whole thing probably is the animosity which prevails between the Messrs. Tyser and Mr. Dawes in reference to the affairs of the New Zealand Shipping Company. In the latter case Mr. Dawes holds an undoubted predominance, but in that of the Colonial Union the Tyser interest is so decidedly in the ascendant as to be able to return tit for tat in a very substantial measure. They laugh best, however, who laugh last, and Mr. Dawes may yet be the victor should Che proceedings lie is takingfor an injunction to restrain the transfer turn out as his lawyers advise him. — London Correspondent Ocago Daily Times.