BRICK MERGER

Evening Post, Volume CVII, Issue 130, 6 June 1929, Page 14

BRICK MERGER

BK3- • -DISTRICT AMALGAMATION

Probably the largest industrial transaction of recent times in the Wellington district is likely to be .completed in the immediate future. Outlines for an amalgamation of the whole of the substantial interests in the brick and drainpipe industry in the Wellington Province have been agreed to by the directors .< of the various companies, and the proposals are to be introduced to shareholders in the various companies within.the next few days. No definite details are available until the decision is made known, but it is understood: that the interested parties comprise Murphy, Bros., Ltd., Gasco Pressed Brieks,-Ltd., Silverstream Brick and Tile Go., Ltd.; and that options are held in favour of the proposed new company-over the works of P,eter Hutson Co., Ltd., Waganui Brick arfd'Pipe.Co., Ltd., and Wairarapa -Brick; Tile^i and; Drainpipe Co., Ltd., of Carter.ton.' The•' consolidation of the interests'of .these companies will make one of the strongest industrial groups in the .Dominion. The Wellington Concrete Pipe Company is also included in the organisation.. The total sum -involved is •likely to reach £350,000. _From Mr. C. E. Eichardson, chairman of directors oL Gasco Pressed Bricks,; Ltd., and Mr. R. J.:.Murphy, of Murphy Bros., Ltd., it was learned by "The Post" to-day that the -position was -substantially as set out above, but that no definite information couid be given until confirmation of the details-of. the arrangement. They stated, however,, that the. finance of the organisation would be on the basis of a debenture issue of £150,000 at 7% per cent,, of which only £125,000 was likely to be issued for-the prefieht. The whole of the share capital, would be absorbed by the shareholders in the existing companies. Mr. Eichardson and Mr. Murphy each stressed the fact .that the amalgamation was on the lines of the progressive organisation of the industry, and would not in any way be inimical to the interests ofconsumers. By the introduction of mass production methods it was hoped to lower production costs, and by specialisation there".would., be an improvement in the quality of the.various products. The_ brick industry throughout the United Kingdom, Australia, and America is to-day, amongst the most, progressive of the group of building industries. The Wellington interests hope that this new organisation will secure such diversification •of its products and such improvement in their quality that' the large use already made of burnt clay ware will be much increased.