AMALGAMATION.

Dominion, Volume 5, Issue 1329, 5 January 1912, Page 5

AMALGAMATION.

N.Z. SHIPPING CO. AND FEDERAL CO. INCREASED POWER OF OUTWARD LADING. By Telerraph— Prcsi Association—CoDyrlght London, January 3. The "Shipping Gazette" states that tho New Zealand Shipping Company is amalgamating with the Federal Steam Navigation Company. . (Rec. January i, 9.20 p.m.) London, January 4. The New Zealand Shipping- Company has acquired a controlling interest in tho Federal Company. In exchange tor a portion of the unissued shares credited as fully paid, the Federal owners promised to hold the shares en bloc for a period of years. Mr. Allan Hughes joins the New Zealand Shipping Company's board. The New Zealand Shipping Company's snares have risen from £17 10s. to .£lB 10s. The "Times" states that the amalgamation is the -result of tho Peninsular Company's steamers calling at irckland. STATEMENT BY THE GENERAL MANAGER. (By Telegraph—Press Association.) Auckland, January 4. Mr. Isaac Gibbs, general manager of the New Zealand Shipping Company, who is 'at present visiting Auckland in the Ruahine, when seen by a reporter in regard to tho cable advice that the Now Zealand Shipping Company is amalgamating with tho Federal Steam Navigation Company, said that his company had contemplated the purchase of tho Federal line for some time past, and negotiations had been proceeding between the representatives ot" the firms for some mouths. The new steamers would bo employed under the same trade as they had been in the Federal linn, Tunning from London to Australia, ai.d frern West of England to New Zealand p- rts. The great advantage that would accrue with tho purchase .;f tho rtw 'ine would bo the increased power of outward loadin?. It was well known that it was difficult for colonial cnmp.inies to pet on to a. London b a rc!i, and the purc-'ia:-c of the Federal line would give the New Zealand Shipping Company t!.at ativantage. Up to tho present hi , had no communication as to the forms of agrwmtnt, but expected to receive a cablegram with full information shortly.

Christchurch, January I. The local manager of tho New Zealand Shipping Company .-ays the cable is hardly correct. The New Zealand Company lias acquired an interest in the Federal Company, but has uot amalgamated with Mr. J. J. Kinsey, local agent of the Federal Company, could say nothing on tho matter at all.