THE NEW ZEALAND SHIPPING COMPANY.

Otago Witness, Issue 1950, 4 April 1889, Page 16

THE NEW ZEALAND SHIPPING COMPANY.

London, March 28. Fair Play asserts that the transfer of the late Sir W. Pearce's interest in the New Zealand Shipping Company to Mr E. S. Dawes means handing over the control of the business to the Shaw-Savill Company, and will enable Mr > Dawes to seize the company's steamers whenever he pleases at a cost of under £50,000 each. The paper hints that in such event they might possibly be utilised for the Queensland trade (Mr Dawes being connected with two Queensland financial institutions),and proceeds to state the termson which the transfer has been effected. Substantially, these are that Mr Dawes pays -the debt due to Sir W. Pearce (amounting to over £260,000), and takes over the 10,000 shares held by Sir W. Pearce, receiving as security the steamers and debentures held by Sic W. Pearce. The conditions of transfer involve the reinstatement cf Mr O. N. Strickland as general manager, and the continuance of Mr J. B. Westray on the board of directors, as well as a modification of the arrangements with Tyser which are supposed at present to be favourable to the company. Fair Play asserts that Mr Westray was originally a nominee of Mr SaviU's through Mr Strickland, both acting in the interest of the Shaw-Savill Company. It predicts disaster for the New Zealand Shipping Company, and 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 a 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 collusion between the London and Colonial Boards, and says Mr Dawes' interest as shareholder is outbalanced by his interest as mortgagee.

[With reference to the above we learn that Mr James Mills, M.H.R. (of the Union Steam Ship Company), has received a cablegram from Mr Dawes asking him to give a most positive contradiction to the report that is being circulated that the Shaw, Savill, and Albion Company are endeavouring to secure a controlling interest in the New Zealand Shipping Company's affairs. Mr Dawes states that the report is entirely unfounded, and that his influence will be used entirely in the New Zealand Shipping Company's interests. — Ed.]