UNION STEAM SHIP CO.

Taranaki Daily News, Volume LV, Issue 231, 18 February 1913, Page 5

UNION STEAM SHIP CO.

CAPITAL TO BE INCREASED TO £1,000,000. four new steamers to be ACQUIRED. By Telegraph—Press Association. Dunedin, Last Night. It. was recently announced that the directors of the Union Steam Ship Company were considering proposals to increase their capital, which now stands at £1.000,000, of which £BOO,OOO has been issued. All shareholders have now been offered, in proportion to their holdings, the unissued 200,0C0 shares, at a premium of 10s per share. The directors also intend to ask the shareholders to. I extend the powers and objects of the company bv amending the present memorandum and articles of 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 i the amount of £1,000,000, and, by way ■ of bonus, to issue to the present shareholders, according to their holdings, one preference share of £l, carrying a fixed cumulative dividend of. 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' visit to England recently arrangements were made for the purchase by the company of four steamers (the Westmeath, Roscommon, Limerick and Tyrone), formerly owned by Messrs. Houlder Bros. Cn. These vessels are now employed in the direct trade between England and New Zealand and Australia. The capital now being raised will he used to pay for these steamers and the vessels now under construction.