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White Wings Vol I. Fifty Years Of Sail In The New Zealand Trade, 1850 TO 1900

Amalgamation

Amalgamation.

The Freight Company had out three vessels (Hylton Castle, 548 tons, Fontenoy, 636 tons, and Ferndale, 416 tons). It was then realised that to successfully compete with Shaw, Savill and Co., united action throughout New Zealand and more financial strength were necessary. As both the Freight and New Zealand Shipping Companies were financed by the Bank of New Zealand an amalgamation was easily arranged, by which the Freight Company shareholders took up an equal interest in the Shipping Company. It may be asked why did not the Freight Company absorb the Shipping Company, seeing that the head offices of the bank and its two other off-shoots (New Zealand Insurance Company and New Zealand Loan and Mercantile Agency Company) were all in Auckland, and the financial strength was then without a doubt centred in Auckland? The reason doubtless was to gain the assistance and support of the Canterbury squatters, as they were then the chief exporters of wool and grain. Auckland's exports were at that time chiefly gum, flax and South Sea Island produce.

Dunedin's trade, it may be mentioned, was chiefly with Glasgow, and the necessary tonnage was supplied by P. Henderson and Co. (Albion Company, subsequently amalgamated with Shaw Savill and Co. under the name of Shaw Savill and Albion Co.), and being a Scotch community the sympathies of the Dunedin people were then more with Glasgow than London.