THE SHIPPING FUSION.

North Otago Times, Volume CV, Issue 13939, 24 July 1917, Page 8

THE SHIPPING FUSION.

'OPINIONS ;OV- ENGLISH PAPERS.! 'A London correspondentquotes .the opinions'of some, of the Englisli papers' respecting jho fusion of interests of the P. aud 0. and Union Steamship Com-, panics, In the view of The Times,'' the terms, would seem to be very satisfactory for'the. Union shareholders." The Morning Post said; "The intimation came as no surprise to the market, the event having been prophesied. The shares of both concerns improved, but all the same the scheme was viewed with somewhat mingled feelings. On the one hand the fitness of the arrangement as regards the union of the two' companies concerned is beyond question, and it is also frankly recognised that in the days to come, and when competition is fully resumed with other countries under more norainl condtions, the tendency will be all in the direction of big concerns 'designed to secure the maxinum amount of economy and oflicieney in working. All that is true, just as it is true that we have probably gained on balance by our great banking fusions of the past twenty-five years. At the same time, monopolist tendencies, especially when dealing with such vital matters as transit, must not be left entirely out of consideration, and the danger of goinjr to excess in the manner of combines will have to be carefully borne in mind." i

The Daily Chronicle said: "We ask, in no idle curiosity, 'How did market gamblers know what was afoot before shareholders and the public knew," These men,,who.did not trust solely to divination, have rushed up Hie prices both of P. and 0. slock and Union Steamship of New Zealand, and (hoy and others have probably pocketed handsome gains. It is a further instructive illustration of the lengths to which speculation can bo carried even in these limes of regulated business. Obviously the Union shareholders are urged to make the exchange, which from their standpoint is undoubtedly advantageous. But what will be gain to them may be a loss to the nation.- These vast combines are not being hatched and carried through in the national interests. Tempting offers are not made from altruistic motives, and capitals are not inflated from self-sacrificing principles. Dividends must lie sustained on these capitals. They afford excuses for keeping up freights under monopolistic power, and for preserving, if possible, bloated war profits."