THE SHIPPING MERGER

Dominion, Volume 10, Issue 3118, 23 June 1917, Page 6

THE SHIPPING MERGER

Sir,—Sir James Hills has cabled out .a message to tho Acting-Prime Minister regarding, the proposed merger with tho P. anil U'., and ho state, inter alia, that "the share capital of the company has always been largely held outside the Dominion and to-day Now Zealand holders aro ecjual only to,about three-tenths of the total capital."

When* the proposal for tho reconstruction of tho company took place- in 1913 Sir James Mills, at the annual meeting held on Soptoniber 9, said: "The result of the conversion of our shares from '.£lO each to .£1 oach was greatly to incroaao tho interest of tho public in the company's operations, as it brought about much wider distribution of our stock. It is a gratifying fact that there is an increasing disposition on the part of investors in New Zealand and Australia to turn their attention to this company's stock. This is evidence of tho esteem in which tho company is held in this part of the world; as a matter ot i'aot our shares at the present moment are held in Great Britain and Australasia in nearly equal proportions, while as far us regards members wo iiavo more shareholders in Australia and New Zealand than in Groat Britain." What shareholders and tho public would like to know is when the run took place on the U.S.S. Co/s shares from Australasia that tho-proportion has gone down to three-tenths. Sir James Mills has not yot lot the public nor tho shareholders' knoT anything_ about his now famous statement made in 1910- that

there was no truth in the rumour reports of a proposed "morger." Can auyono of your readers fieo why such a chango could 'come over Sir James Mills's gratification in 1913 of the multiplicity of Australasian shareholders and 'his wanting to havo a single foreign shareholder in 1917—the P. and O.P What has happened to chango his mind? Why were not tho small shareholders in Australasia told of tho coming deal and thus dotorred from soiling quit, of boing kept in ignoranco, with tho result that London obtained a greater preponderance in shares and comes in heavily on the £3 deal? How was it done and why was it done? It has boon reported that Cabinet is divided ovor the merger. Cabinet may be divided, but there is only ono opinion amongst tho public, and that is that tho merger for New Zealand's snko, shoiuil never come off. I would recommond the perusal by Cabinet of tho company's reports from 1913 mal;o interesting reading, and will show wjiat a profitable deal the P. and O. will- make if tho Government allows "?J>. ff ••