WHITE STAR MERGER

Hawke's Bay Tribune, Volume XXIV, Issue 80, 16 March 1934, Page 7

WHITE STAR MERGER

Opposition to Proposal AMERICAN SEEKS INJUNCTION NEW YORK, March 14. Mr P. A. 8. Franklin, president of the International Mercantile Marine Co., said to-day that the company’s attorneys had been instructed to seek a Court injunction to restrain the Cunard Co., the Oceania Co. and others from proceeding with the merger of the Cunard and White Star lines. Mr Franklin, who returned to-day on the Majestic from Europe, alleged that the right of stockholders in the Oceanic Co. had been violated. He also alleged that the new merger was nothing more nor less than a British national line backed by the Britfsu Treasury to the extent of £50,000,000.

NO INFORMATION IN ENGLAND

Work Will Be Re-started LONDON, March 15. In the House of Commons, in a committee statement on the North Atlantic Merger Bill, the Rt. H6n. Neville Chamberlain said that he had no information with reference to the Press report that White Star interests were seeking an injunction in the American Courts to prevent the merger. If the injunction were granted it would render the whole bill useless, but it would be inexcusable to postpone the possibility of re-starting the work on No. 534 on the chance of an action which might never be brought. The third reading would be postponed till later information had been received It was announced in the House of Commons on February 8 that an agree mont, conditional upon the sanction of Parliament, had been entered into between the Cunard Company, the Oceanic Steam' Navigation Company and the Treasury,, whereby financial facilities will be provided by the Government for the completion of the new giant liner known as No. 534. In order to provide the requisite finance for the completion of No. 534 the Treasury would make advances not exceeding in all £3,000,000 in the following sequence:—-Firstly: Advances not exceeding £1,000,000 to the Cunard, secured by an issue at par of Cunard debenture stock, the advances to be handed over by the Cunard to the merj ger company. Secondly: Advances not ' exceeding £1,000,000 to the _ merger > company to be secured by an issue at i par of income debenture stock of the ; company. Thirdly: Advances not ev- > seeding" £1,000,000 to the merger company, secured by an issue at par of income debenture stock class A of the merger company. In addition the Ireas ury would from time to time advance to the merger company sums not exceeding £1,000,000. The legislation is to include power to the Treasury to advance to the merger company the cost, not exceeding £5,000,000, of an additional new ship or ships on terms analogous to those on which advances are made to the merger company to. ‘ wards the completion of No. 534.