ATLANTIC MERGER

Evening Post, Volume CXVII, Issue 47, 24 February 1934, Page 13

ATLANTIC MERGER

CUNARD AND WHITE STAR

GOVERNMENT POLICY

LONDON, February 23,

In the House of Commons, Mr. Neville Chamberlain introduced a Bill to empower the Treasury to advance up to £9,500,000'f0r the Cunard Oceanic (White Star) merger. ■ . •

After describing the negotiations for the resumption of work on the new Cunarder, Mr. Chamberlain said that as the Government found that two British companies were fiercely competing in the reduced North Atlantic trade, it aimed at something more important than the completion of a single ship, namely, the fusion of these rival interests. A single powerful-unit with ample resources would be able to effect considerable economies,1 and. would be well equipped to restore the ■ leading position in the "North Atlantic to the British flag. r » Tho resolution was carried without a division.

The agreement between the Cunard and White Star companies provides that the new merger company is to be called the "Cunard-White Star, Limited," or by some other name to be agreed upon by all parties. In order to provide the requisite finance 'for the completion of "Number 534," the Treasury will make advances ; not exceeding in,all £3,000,000 in tho following sequence:— :

•1. Advances of not exceeding £1,000,000 to the Cunard Company to be secured by the issue at par of Cunard debenture ■ stock, the advances to be handed over by Cunard to the merger company. .'ii-r-i-

2. Advances of not exceeding £1,000,000 to the merger company to be secured by the-issue at par of income debenture stock of the comvan7- : • ■.'■■■„ '■■;' ■'."■".:.■ '.. .

3. Advances of not exceeding £1,000,000 to the merger company to be secured by the issue at par of income debenture stock class A of the merger company.

. In. addition the Treasury will from time to time advance to. the merger company sums not exceeding £1,000,000 to provide the requisite working capital.. ; -.'-, -, . ',: ■■■,:■•.■■