THE DIRECT SERVICES.

New Zealand Herald, Volume XXVI, Issue 9325, 30 March 1889, Page 5

THE DIRECT SERVICES.

NEW BUSINESS ARRANGEMENTS. OPINIONS OF A LONDON JOURNAL. Press Association.—Electric Telegraph.Copyright London, March 28. Fair Play asserts that the transfer of the late Sir W. Pearce's interest in the New Zealand Shipping Company to I Mr. E. S. Dawes means the handing over of the control of the business to the Shaw, Savill, and Albion Company, and will enable Mr. Dawes to seize the company's steamers whenever he pleases at a cost of under £35,000 each. The paper hints that in such an event they might possibly utilised for the Queensland trade (Mr. Dawes being connected with two Queensland linancial institutions), and proceeds to state that the terms on which the transfer has been effected are substantially these : That Dawes pays the debt due to Sir W. Pearce (amounting to over £260,000), and takes over 10,000 shares held by Sir W. Pearce, receiving as security the steamers and debentures held by Sir W. Pearce. The conditions of transfer involve the reinstatement of Mr. O. R. Strickland as general manager, and the continuance of Mr. J. D. Westray on the board of directors, as well as a modification of the arrangements with Messrs. Tyser and Co., Which are supposed at present to be favourable to the company. Fair Play asserts that Westray was originally a nominee of Mr. W. Savill, through Mr. Strickland, both acting in the interest of the Shaw, Savill Company. It predicts disaster to the New Zealand Shipping Company, and later on for the Shaw, Savill Company too. The writer attacks Mr. Barnwell (Sir W. Pearce's executor) for handing over the shareholders to their business rivals without allowing the directors reasonable time to liquidate their debt. It is also asserted that the New Zealand Shipping Company does not possess the power of clearing its property by repaying the amount advanced by Mr. Dawes. The article concludes by pointing out the possibility of a collision between the London and Colonial Boards, and says Mr. Dawes' interest as a shareholder is outbalanced by his interest as a mortgagee.