UNION COMPANY'S SHARES.

New Zealand Herald, Volume XLIX, Issue 14989, 10 May 1912, Page 4

UNION COMPANY'S SHARES.

SOME LONDON COMMENTS. 1 • ' ' . ,**;■', [FROM OCT OWN CORRESPONDENT.] ', . v.;' ~*■.;; \-:J London, April 3.: ■;' A sudden rise of a pound or two in the r market price of the shares of : the Union Steamship Company of New Zealand gives , ground to an expectation which has been ( held ;in some' quarters for months, past . with regard to the future operations Jof | the company. What the exact V devei- . opment: will be is yet a secret. Accordf ing to a correspondent of the Financial Times, , "there is reason to beiievo that , the Union Steamship Company of New . Zealand is about to undergo some import- . ant administrative changes, while the scope of its operations may* possibly bo extended. The matter has not yet reached a stage which enables the names ' to be given, - those who are negotiating for a, guiding interest in the company's J affairs, there being more than one asi ant for the co-operation of the com- ■ ' pany's fleet. ' "The undertaking enjoys a subsidy ( of, £57,000 per annum as from ( - August 1 last, payable by. the Government , of Canada and Now Zealand,, in return for which the directors run a monthly service between those countries. The I idea appears to be that the route served , by the company might be extended with advantage so as to come more closely into [ touch with the lines trading from England . to the Antipodes, and possibly elsewhere , also. In anticipation of a favourable re- ; suit to the ' feelers' which have been put . out, the company's £1 shares havo ro- , cently risen from £2 to £2 ' 6s, 1 and are still being purchased with some j [ freedom. At last year's Imperial Con- , I ference in London, particular reference . was- made to the company's position, the . suggestion being put forward that it ' ?■??« be „ m i ade an integral part of. the , All-Eed _ .Route which has been aimed at by certain shipping interests, and the various colonial Governments. The developments now in contemplation would fur- > thee this scheme, and would probably i form another link in the all-embracing : organisation which is gradually being 1 evolved from the various Australasian i snipping <Jmes. < "The main idea of the scheme now be- ' ing discussed is, however, to bring the ■ company into closer relationship with Great Britain and the interests behind the 1 movement are understood to be prepared ' to pay a liberal sum for the achievement of their object. The share capital out--1 standing amounts to £800,000, out of an authorised total of £1,000,000, while there is also £162,938 of four per cent, debenture stock in existence, part of a total of £300,000. On the basis of current market prices the two capital issues would be actually worth something like £2,200,000. The actual breaking-up value of the shares 'is, however, believed "to he in excess of the price at which they are quoted I in TlirOgmorton-street, and this will have to bo taken into account if any ohange>i>f ownership; is decided upoiv'i '• . -~\"-. ' ... ■;■ •