THE Wellington Independent. "NOTHING EXTENUATE; OR SET DOWN AUGHT IN MALICE." TUESDAY MORNING, 17th NOVEMBER. AN AMALGAMATED STEAM NAVIGATION COMPANY.

Wellington Independent, Volume XVIII, Issue 1984, 17 November 1863, Page 2

THE Wellington Independent. "NOTHING EXTENUATE; OR SET DOWN AUGHT IN MALICE." TUESDAY MORNING, 17th NOVEMBER. AN AMALGAMATED STEAM NAVIGATION COMPANY.

We learn that the proposal to effect a union of interests between the New Zealand Steam I Navigation Company, and the Steam Ship ' Company now about to commence operations in Otago, will probably ere long assume a practical shape. In many respects this amalgamation scheme meets with our cordial approval, because we see in it the means of extending the adrautages of a complete system of s tea an communication not only throughout New Zealand, but between it and other colonies, much sooner than could otherwise be accomplished. The Southern CompaDy, we believe, has. made arrangements to commence operations on a very extensive scale. Two large and powerful steamers are now building at Glasgow, estimated to be worth £26,500 each, and negotiations bare commenced for the purchase of two larger steamers, suitable for the trade with Australia, which will be worth even a greater sum. A harbor steamer, and coal hulk have also been ordered ; and in fact eveiything required to engage in an exteusive traffic is either already in preparation or will shortly be ordered from home. On the other hand the N.Z.S.N. Company is already in the Held and possessed of four fine steamers, fully employed. A fifth, the Wellington, is also expected shortly, and with that vessel in addition, the Company would be able for a time to fulfil nearly all the requirements of an inter-provincial traffic. But since the recent extension of capital the directors contemplate doing much more than this. It is necessary to connect this colony with Sjduey, Melbourne, and Hobart Town, by means of our owh boats. Doubtless, with the support of the shareholders in Auckland, Canterbury and Otago, this could be done in time ; but the opportunity is presented to accomplish the object in view much more expediiiously by amalgamation with the undertaking in the South. By doing so the shares of both companies could be merged into ooe amalgamated company, due care being taken for the interests of the holders, and the capital could at once, instead of gradually, be raised to £250,000. The Company couhl still retain its name — the head quarters could still be in Wellington, and the j interests of the Otago shareholders could be secured by the appointment of a local Directory at Dunediu.

We are not awars whether any definite basis of agreement has been fixed on, but we may be permitted, in anticipation of future negotiations to thro wont a few suggestions. In the first place, if it be admitted that au am alga million would be for the advantage of both contracting- parlies it will be apparent to every one that the chief depot should be situated in the natural centre af the colony — and that of course is Wellington. This being agreed ot>, it wonld follow that the bead offices should also be here, where the meetings of shareholders would take place, and all accounts be made up. This wonld make Wellington the centre from which the inter-pro-vincial traffic would radiate ; while in Otago, a local Directory could control the traffic arrangements between the Middle Island add Australia.

The conversion of both Companies' shares, into those of the amalgamated concern, would be a question for accountants and financiers. They could settle on the best mode of doing this, and we believe the interests of the shareholders of the N.Z.S.Es 1 ". Compauy will be perfectly safe in the bands of the present Directors. Speaking generally, we would suppose that if a capital of £250,000 were fixed upou, the shares inthe Oiago Company, which are woit'i £500 each, could be converted into 50 shiir-s at par of the Amalgamated Company, of £10 each ; while the jCIO shares of the N.Z.S.N. Company would simply become shares of the new undertaking. It muni o£ course be remembered that the N.Z.S.N, Company's shares are at a premium, and provision would require to be made for the excess of value. This again is a simple questiou of accounts. The vessels, steamers, and other property of the Company would require to he valued, and whatever amount that valuation was found to exceed the par value of the shares, might be paid in cash to the shareholders.

In the foregoing remarks we have merely echoed the general view taken by commercial men here, of the probable basis on which any amalgamation scheme would rest ; and doubtless these faintly shadowed proposals would be subject \o much modification ere finally adjusted. This scheme, if carried out, we be Here will be the means of establishing steam communication in this colony to an extent hitherto not even imagined, and will conduce largely to the welfare of every province in New Zealand. Still, it must be borne in mind that the New Zealand Steam Navigation Company, is m>t over anxious to ahnagate with the Otago Company. It wouJd be a very excellent and desirable thing to be accomplished, and as such we warmly lend it our advocacy, but the strong support the Company is already receiving in other quarters, and the warm interest evinced i by the Auckland merchants show that if need be, it can stand alone.