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"RUSHED THROUGH"

THE U.S.S. COMPANY MERGER STATEMENT BY MINISTER OF MARINE MATTER OF NATIONAL CONCERN A statement on the fusion of the Union Steam Snip Company into the big snipping combine in. which the P. and 0. Company is tho dominant influence was made by tho Minister of Marine (the Hon- G. W. Russell) last night. The projected absorption of the Union Steam Ship Company by the Peninsula and Orient Company has received my careful attention for some days past," said Mr. Russell. "In view of Sir James Mills's declaration at a meeting of shareholders in Dunedin so recently as last December that 'no offer has been made to us, either •for amalgamation with, or purchase by, any other company,' the news of a fendays ago that the purchase of the Union Company by the P. and O. had been agreed to, subject to ratification by the shareholders, came as a 'bolt from the blue.'- I presume it may be looked upon, so far, as settled, seeing only a small maiority of the shares arc held in Australasia, and it is practically certain the necessary ..majority is in sight by the promoters of the fusion.

"The give it its proper name—has been literally rushed through. The shareholders were given only a fendays (until June 12) to hand in their scrip and tlie payment is mad« duo on July 1. Why all this rush and hurry? Clearly tho promoters had an idea of •what tho people and Parliament of New Zealand might think, and have rushed the 6chemo to its fruition stage before Parliament met. Whether they have entirely succeeded remains still to bo seen.

"The Union Shipping Company is our most national concern. Tho red funnel is now seen in many waters, and I believe tho company stands seventh in the carrying concerns of the Empire, if not of the world. It has been built up out of our trade, our mail subsidies, our enterprise, and from statements in the Dominion papers I -see the company is earning ,£IOO,OOO per month from our Government for war purposes.' Is it to •be expected that New Zealand will lightly stand asido and see this great concern wrested from our hands, and pass into the control of a company which employs lascars, coolies, and Chinese for the manning of its ships?

"The tonnngo of the Union fleet is 271,000, partly registered in Britaiu and partly here. Recently several of the largest vessels have had their registry changed from Now Zealand to London. The' strong and pressing reason urged by tho company was for insuranco purposes. There will be no further changes of registry whilst I hold my present office.

"Practically tho price to be paid is '-EI-,000,000, of which .£3,000,000 represents the ordinary shares and the remaining .£1,000,000 tho preference shares, or Jill 15s. per ton. Is this the valuo of steamers to-day ? But besides the steamers there are all tho other assets of tho company—ita goodwill, existing contracts, buildings, repairing sheds, laundries, and above all its reserve funds, which are said to stand at I need not pursue this phase, which represents the interests of the shareholders, and they ought to know their own business. If they are being deceived by the glamour of the war profits of the I'. and 0., and its future prospects, they should remember that in pre-war times that great company paid a modest 5 per cent. To me it appears so fine and profitable a purchase by a leviathan company that New Zealandera must regard the passing of the company from our hands with feelings of aversion and anxiety not unmixed with envy.

"There are three questions involvedloss of control, relation to the State, and our futoe trade. What control can New Zealand nave of a company whose headquarters are in London? What guarantee that our trade interests will not be subordinated to those of dividends ? What guarantee that the Islands, the Australian, and the general Pacific trade will be maintained for the development of our country? Viewed from these points of view, the question ceases to be one of the shareholders only. The national aspect comes into prominence, and the whole future of the Dominion. "As Minister of Marine, the question has already leceived rriy closest attention, and is being considered by the Government. There are many important matters to be considered—the legal, financial, commercial, and all other aspects of an interposition by tho Government —including the absence of the leadersall will require and compel the most careful consideration. Information is now being gathered with all tho speed possible from all the Departments interested,- and no delay will tako place in preparing a full report on all the matters mentioned. The fact that tho Government is paying a huge sum per month for its charters of Union boats as transports and hospital ships is an element that must be considered:"

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19170615.2.68

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 10, Issue 3111, 15 June 1917, Page 6

Word count
Tapeke kupu
815

"RUSHED THROUGH" Dominion, Volume 10, Issue 3111, 15 June 1917, Page 6

"RUSHED THROUGH" Dominion, Volume 10, Issue 3111, 15 June 1917, Page 6

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