NOT MR. MASSEY'S FLEET.

Taihape Daily Times, Issue 160, 15 August 1916, Page 4

NOT MR. MASSEY'S FLEET.

THE UNION COMPANY RUMOURS. GOVERNMENT ACQUISITION DENIED. On Thursday afternoon a Press Association cablegram was received stating that Union Steamship Company shares were being quoted in London'at 56/-, and that it was rumoured that the' New Zealand Government intended taking over the fleet. Prompt denial of the rumour waa forthcoming, for in the-evening the fol lowing tele;gjrani' was received from the Press Association in Wellington:

"The truth of the rumour current in London that the Government intends taking over the Union Steam Ship Company was officially denied this evening by Mr Massey, who added that ■he had nothing more to say on the matter."

The denial was confirmed and supplemented by a Press Association message from Dunedin stating:—■ "The acting-chairman of directors of the Union Steam Ship Company (Mr John Roberts) states that there is no foundation for the rumour that the Government is taking over the company's fleet, and that no communication has passed between the Government and the company with a view to the acquisition of the fleet." Local opinion is inclined to believe that Mr Massey's exxpression of opinion during the cost of living debate last week, that he believed the time was coming whent here would be a line of State-owned 20-knot steamers trading between New Zealand and Britain, is responsible for the rumours referred to in the London cablegram, but, in view of the official denial now announced, the remarkable advance in the Union S.S. Co.'s shares must still be attributed to the firm belief by people in touch with the shipping world that an amalgamation is contemplated. There ha s been ■ much speculation with regard to the possibilities of the P. and O. Line further extending its operations by amalgamation, but. in some quarters there is a disposition to look to the Canadian Pacific Railway, possibly acting in conjunction with one of the trans-Atlantic lines, for a solution ol\the share boom mystery. It is generally known that already there is a working agreement between the C.P.R. and the Union S.S. Co. in regard to freight charges and time-tables, so that goods and passengers carried by the steamship company can be transhipped and conveyec on the rails of the C.P.R. without disorganisation. Thus the passenger ana mails services of the two companies dovetail, as well a s ;he cargo n,. \ng«ments.

The Union S.S. Co. owns 78 steamers, with a gross tonnage of 271,065. including a 12,000 ton cargo vessel now under construction. Thirty-two ships are passenger vessels and 46 cargo vessels.