SHIPPING FUSION

Evening Post, Volume XCIV, Issue 51, 29 August 1917, Page 7

SHIPPING FUSION

P. & O. SHAREHOLDERS'

APPROVAL

(FROM OUR OWN CORRESPONDENT.)

LONDON. 29th June.

Lord Inchcape presided, over a, special meeting of the P. and 0. S.N. Company, at which the proposals for the fusion of the interests of the Union Steamship Company of New Zealand with the P. and 0. Company were submitted for confirmation,

The told the shareholdersthat a "'full explanation of the operation was contained in the memorandum already circulated. The U.S.S. Company, he said, was founded in the. year 1875, and had, owing to the prudent and careful management of the chairman, Sir. James Mills—who had guided its destinies for many years—been a highly successful undertaking. The P. and 0. directors had gone very carefully into the assets and earning power of the Union Steamship Company, and were satisfied that the operation was a l.fair one for both sides. The Union Company had a! ■ valuable coasting trade in New Zealand, and had connections with India and Australia., and a line, of steamers running between Australasia-and Canada, also San Francisco, besides having a number of high-class vessels operating between this country and Australia. It has worked for many years in friendly co-operation with the P. and 0., British India, and' New Zealand Companies, and this 'has gradually led up to'ithe complete fusion of interests now proposed. It was believed that the amalgamation would be of material assistance to the P. and 0. Company,' .while the P. and 0., British India, New Zealand, and Union Companies working as one would afford increased facilities to the trade of the Empire. The head office of the Union Company would remain, in New Zealand, and they ivould have the advantage of the services of Sir Jaanes Mills and Mr. -'Holdsworth (managing director),, and the highly representative board in New Zealand.

The offer made by the . directions of the P. and 0. Company had already been accepted by shareholders holding. 940,031 shares out of, a, .total of 1,000,000. Answers have still to come in from a number-who- have-been- unable to reply, but the response already received was conclusive evidence that the offer mad© ■ was regarded as a favourable one. PosI sibly it might have been too generous,', but the direotom of tihe P. and 0. Company, having gone very carefully into the whole position,' and..Having 'given, it lengthened and deliberate,,consideration. '. had no hesitation--in-recommending it for confirmation by. the stockholders.- ■■ •' The "necessary resolutions were carried. unanimously, and: the number of the board was fixed 1 at .seventeen.' STATEMENT BY SIR JAMES MILLS. Sir James .Mills, in an interview/ informed me of the cable .correspondence which he had had with Sir James'Allen, and which was published in New Zealand. The. fact.-thathe.a.nd-Mr._HQlds-worth would remain .in. office was a guarantee that the company would run in the same close association: •with, the Dominion and Dominion interests that it had always observed. The arrangement with the P. and 0 Company was an excellent thing at such a. time as the present. It meant, that though they might lose ships, as they .must'expect to in time of war, they would have the resources of the other three companies of the association to fall back upon to fill the gap. There was no intention whatever of removing our chips from the register or of changing the control or the policy in any way. Incidentally he mentioned tjiat ,30 per -cent: of-the-capi' tat was 'held in New Zealand, 20' -per cent, in Australia,' andr.the. remaining .'.50 per cent, in Great Britain.; It-was not possible at such- a time • a's'-'-this to foreshadow afteri-tlie-war policy, but ,he could say that they would accept the new conditions' Created by-the war. and meet them fearlessly. Sir James, .mentioned that whereas the company had been particularly fortunate in regard to war losses it had, in the last few weeks had three serious losses, the -armed cruiser Avenger, which was designed as ji consort of the Niagara in the Vancouver service and could not be replaced under three years; the Limerick, which was destroyed ft week or two ago, and the Waitotara, which had just been burned in the Pacific. Mr. Holdsworth will probably be leaving for the Dominion in two or three weeks' time.- '■ '■;■ ■ ■