THE SHIPPING COMBINE

New Zealand Times, Volume XLII, Issue 9693, 22 June 1917, Page 7

THE SHIPPING COMBINE

CABLE FROM SIR JAMES MIMS.

POSITION NOT MATERIALLY ALTERED.

The Acting-Prime Minister (Sis James Allen) has received an important cable message from Sir Joined Mills, at present in London, •with reference to fusion of the interests of the Union and P. and 0. Companies. Sir James Mills has consented to thq publication of the message, tho text ol which is as follows:

“I am advised that some anxiety is expressed in New Zealand that the fusion of tho interests of the Union and P. and 0. 1 Companies will militate against New Zealand, ■ and that tho identity and - control ;of the companies will pass away from tho Dominion. I may explain that tho general position will not be materially altered. The share capita] of the company has always been largely hold outside the Dominion, and to-day Now, Zealand holders are equal to only ,about threotenths of the total capital. I am glad to take this _ opportucity of assuring you that tho "arrangement with tho Pand O. will not in any way affect the management or methods of the company, while its headquarters and control will, under the same hand as hitherto, remain in the Dominion, You may rely oh the interests of tho Dominion being'conserved, and I may go further and say that in my opinion greater shipping facilities through tho allied companies will be at tho disposal of the public than were possible bo fore. —(Signed) James Mills.” THE DIRECTORS’ CONTENTION. It * is contended on behalf of the directors of tho Union Company that by that company .becoming interwoven with the fabric,-of a -worldswide concern like the P. and O. Company, which is tho most progressive in 'Ena world, a great advantage will accrue to the New Zealand public, as it was ever the policy, of the P. and O. Company to ‘ keep, .ahead of the requirb* monts of trade .Therefore it held that there can bo no grounds for the fears expressed:, that the P» and O. Company might utilise thfl Union Company’s ships distant trades, to the detriment of New Zea*. land. It had been always the policy.! of both companies to expand and develop their plants in advance of requirements, and in the case of ta£ Union Company further, to develop the resources of New Zealand and to carry the flag to tho ends of t!hq earth. Through joint management greater efficiency could he attainedwith mutual advantage to tho pubud and shareholders alike. The J tion of the companies is said to haVa established a substantial bulwaflTtj against the threatened German trade war at the conclusion of the preeftOl military upheaval. INCREASED GOAL FREIGHT. ' Mention was made in yesterday’e i# sue of an increase of freight upon coal from Newcastle to New Zealand, which synchronised with the merging of the P. and O. and Union Companies. Mr D. A. Aiken, general manager of the latter company,- interviewed on the subject by a "New Zealand Times* representative yesterday, .stated that! the Government had recently asked tho Union Company to-deliver 30,000 tons of Newcastle coal per month. This amount is considerably more than the normal average which the company has to handle with a depleted fleet. This simply meant that the ships would have to be hurried as much as possible and therefore tho vessels could not be delayed to load timber cargoes in New Zealand, proceeding instead to Newcastle in ballast, which obviously meant a big loss in freight-oammg power. But the Munitions Board recommended that as the ships had to make the trip to Newcastle in ballast tho Union Company be allowed an additional 3s ncr ton over the current rates, which have only been increased to a slight extent during the war and then onlv to meet the extra expenses due to rises in the wages-of waterside workers and all classes of marine cm ployecs. ___________