THE DIRECT STEAMSHIP COMPANIES.

New Zealand Herald, Volume XXVI, Issue 9370, 21 May 1889, Page 5

THE DIRECT STEAMSHIP COMPANIES.

[from our own correspondent.] London, April 5. You have probably heard something, by cable of the crisis which has been reached in the fortunes of the New Zealand Shipping Company, and of the imminence of its absorption by the rival line of Shaw, Snvill, itnd Albion. The news of the purchase of the interest of the late Sir William Peavce in the New Zealand Shipping Company by Mr. Dawes, of the British India line, on behalf of the Shaw, Savill, and Albion Company, created an immense stir in the city. Fairplay apparently possesses means of knowing what goes on in the inner workings of both companies, and has published the facts with a boldness which is winning for it universal admiration. Briefly stated, .Fairplay accuses the Shaw, Savill, and Albion people of taking advantage of the ingenuousness of Mr. Barnwell, the successor of Sir Win. Pearce in the management; of Fairfield, and the executor of his will, to induce him to sell to their nominee the whole of Sir William's interest in the Now Zealand Shipping Company at a very low price, and to conceal all knowledge of the transaction from the company, so that the shareholders, had no opportunity of raising the money to buy the same themselves, which, says Fair Play, they could easily have done, because the assets of the company are, on the lowest valuation, £100,000 in excess of its liabilities. The terms on which Mr. Barnwell parts with Sir William Poarce's interest are said to be that Mr. Dawes (Jays off, or undertakes to pay off, the whole of the Fairfield debt, amounting in round numbers to over £260,000, and in addition Lakes over the 10,000 shares on which Sir William Pe&rce had paid £80,000, and on which a liability of £20,000 still exists, and sooner or later may have to be paid o(T. It is not known at what price Mr. Dawes takes the shares, but as their market value is about £;? per share, it is assumed that he gave at least £30,000 for them, so that altogether he lias put down £300,000. As security he would have the steamers and the debentures held by Sir William, equivalent to taking the steamers at about £0.5,000 each. The conditions of the transfer, subject to slight modifications, ure understood to be (1) the restoration of the old management; ('-) the continuance of Mr. Westray on the Board ; and (15) the modification of the tripartite arrangement by which .Mr. Tyser became associated with the working of the company. Fairplay describes the whole of the transaction as an astute move on the part of the Shaw, Savill, and Albion Company to bring the New Zealand Shipping Company back into the old difficulties from which Mr. .Johnson and Sir J. Gorst had rescued it, and thereby to cripple a dangerous rival. Fairplay does nut see how the shareholders of the company are to help themselves, but it is possible that they may lind safety in the fact the Sliaw, Savill and Albion people have overreached themselves. There is a considerable commotion amongst the owners of private lines that ply to New Zealand, for they recognise that when the New Zealand Shipping Company has been swallowed up, it is quite likely that their turn may come next. Consequently there is a disposition on the part of these latter to see if they cannot in some way come to the assistance of the distressed concern.