SHIPPING AMALGAMATION.

Dominion, Volume 5, Issue 1364, 15 February 1912, Page 6

SHIPPING AMALGAMATION.

two well-known companies. Regarding the agreement which was reached recently whereby the Federal Steam Navigation Co., Ltd., owning a fleer of ten large steamers, trading between London and Australasia, has been absorbed in the New Zealand Shipping Company, the London "Times" says:—

The capital of the Federal Company consists of about 50,000. shares of ,£lO each, but there has never been any public issue, and the arrangement will be carried out. by an exchange of the majority of the shares for shares in the New Zealand .Shipping Company. Tho Federal Company has a board of directors, the chairman of which is Mr. Allan Hughes, of Birt, Potter, ami Hughes, Limited, who is also the manager and a largo shareholder. He will now join the board of the New Zealand Shipping Company, and will continue, in spite of advancing yrar?, to take a close interest. iu the management of the "Federal" vessels. The company has at present an arrangement with the Houlder and Shire lines by which a regular service is maintained between this country and Australia, and it also has services between this country and New Zealand.

The New Zealand Shipping Company maintains a monthly mail service between London and New Zealand by way of Capo Town and Hobart, a corresponding service Homewards by way of Cape Horn and Monte A T ideo. and cargo services between London and New Zealand and Australia. The fleet consists of 18 vessels, all named after places in New Zealand, including two triple-screw steamers driven by a combination of reciprocating engines and turbines.

The' authorised capital of tho New Zealand Company is ,£BOO,OOO in IOO.OfIO shares of £& each, of which ,CI73,SM is issued in f>9.231) shares. A circular, which lias been addressed to the shareholders, states that .the purchase price has lxen satisfied by the allotment of a portion of the unissued shares of the ' company credited'ns fully pawl up, and that it is part of the agreement made that tlipsfshares will for a period of years be held en bloc, and will not come on the market. The shares have been rising for some days pnst. Tlie shares fluctuated last year between UJ and 15.

It is painted oat in the circular that Hie "ncnnisit.ion of the control of the TVdfral Company will, in the opinion, nf the hoard, be n source of strength to Hie business of this company." The acquisition means, in fact, that the company <vill get a firm footing in the Australian pnsseneer and ' carsro trade. It will I , : , remembered that two years n»o the P. and 0. Coinnanv instituted ealls at-Auck-land, New Zealand, ami, therefore. it : is not altogether MirrrWrnr thnt the Now Zealand Ominanv should mate a'bid for a bigger share of the Australian trade.