BRITISH SHIPPING

Hokitika Guardian, 10 February 1934, Page 5

BRITISH SHIPPING

GOVERNMENT AID

A NEW LINER TO BE BUILT.

(Per British .Official Wireless:)

RUGBY, Feb. 8. It was announced in the House of Commons, that an agreement, condi- !- tiomal upon the sanction of Parliament, h has been entered into between the t .Cunard Company, the Oceanic Steam g Navigation Company, and .the Treat sury, whereby financial facilities would h .be provided by the British Govern. h j inent for the 'completion 0 f a new , giant liner, known as Nnmber 534. Tim 1 necessary, legislation will shortly be r introduced. Power will also be taken o to give assistance in laying down a ir sister ship, but no commitments in that t legard ere undertaken, u A White Paper giving the terms of . the agreement states:—As the result 3 of negotiations suggested by the Gov- . ouiment, the oj'iaii'man of )the two i boards recently arranged terms for a > merger in a new company of the l Cunard and Oceanic. North Atlantic interests. The agreement provides .['that' the new merger company he l ! called the “Cunard "White Star Limited,” or some other name agreed upon ■ by all parties. ' j In order to provide the requisite finance for the completion 'of Number 534, the Treasury will make advances 1 1 not exceeding in all three millions, in . the following sequence: Firstly, ndi Vances not exceeding a million to the j Cunard, secured by issue at par of | Cunard debenture stock, and ad- j vances to be handed over by Cunard; ;to the merger company. Secondly j ! advances not exceeding a million to I I the merger company, secured by is- j j r:e at par of income debenture stock , of the company. Thirdly, advances j I not exceeding a million to the merger I [ company, secured by issue at par of income debenture stock class A of the ! merger company. In addition, the Treasury will from time to time ad- J ' vance to the merger company sums , ! not exceeding a million to provide the ’ requisite working caoial. Of this aiprun:-, the 1 first £750 000 advanced I will be secured by the issued par of additional debenture stock of the merger c r, n pany ard the reman''or will be secured by issue at par of the income 'debenture stock of the merger com- j pa"v class B. ■ Legislation is to include power to j the Treasury to advance to the mer- ] gov company the cost not exceeding five millions of an additional- new ship ; or ships on terms analogous to lb ( os which the advances are made to the merger company towards vhe comp let ion of Number 531. The memorandum of agroom-nt between the companies provided that « the new merger comany woukl ac- j quire the North Atlantic goodwill of ] Atlantic fleets, and the unfinished : slr’p Number 534, and that after its formation, a board of ten would lie ( comprised, six nominated by Cunard -| and four by the Oceanic, in proportion to the shares of the capital. (