UNION STEAMSHIP COMPANY

New Zealand Times, Volume XXXVII, Issue 8357, 18 February 1913, Page 7

UNION STEAMSHIP COMPANY

INCREASE OF CAPITAL.

PURCHASE OF FOUR LARGE CARGO BOATS. Press Association. DUNEDIN, February 17. It was recently announced, tiiat tho directors of the Union Steam Ship Uompany were considering proposals to increase the capital, winen ,now stands at £i,OOO,IXIO, of which £600,000 has been issued. Ail shareholders have now been offered, in proportion to their holdings, the unissued 300,000 shares at a premium of 10s per share. The directors also intend to ask the shareholders to extend the powers and objects of tho company by amending tho present memorandum and articles or association. This will be brought about by liquidation and reconstruction. The company has an insurance reserve of over £500,000, represented by premiums on risks which it has taken on the fleet, while other reserves have been created by sums put aside to meet emergencies which have not arisen. The directors propose to capitalise these reserves to the amount of £1,000,000; and by way of bonus to issue to present shareholders according to holdings one preference share of £l, carrying a fixed cumulative dividend of 5i per cent, for each ordinary share held. The capital will then stand at £1,000,000 in ordinary shares and £1,000,000 in preference shares. During Sir James Mills’s visit to England recently arrangements were ( mad© for tho purchase by the company of four steamers-;—tho Westmeath, Eossoommon, Limerick, and Tyrone, formerly owned by Messrs Houlder Bros. and_Co. These vessels are now employed in the direct trade between England and New Zealand and Australia. Tlie capital now being raised will bo used to pay for these steamers and for vessels now under construction.