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Canadian Steamship Merger | The Canada Transportation Lines, ii. Take Over the Richelieu & Ontario and Other Companies Canadian steamship lines operating op the Great Lakes" and St. Lawrence river have now. been merged into one company. At a meeting of the stockholders of the Richelieu & Ontario Navigation -Co,, held .on. June 419) mm Montreal, the action of the directors in selling the company as a going concern fo a new company formed for. the purpose was ratified. The Richelieu & Ontario Company at the time of the sale owned in whole or in part the stock of the following companies: Inland Lines, Ltd. Northern Naviga- tion Co., Niagara Navigation Co., St. Lawrence River Steamboat Co., Thou- sand Island Steamboat Co. and Mer- chants' Montreal Line. The new com- pany will be known as the Canada Transportation Lines, Ltd. Concerning the organization, President James Car- ruthers made the following statement to the stockholders: Picissiiae sen all of the leading The Companies Included "This matter has received the most earnest and careful consideration by your directors and before sending out this notice, they were unanimously of the opinion that it was in the interests of this company to become part of a large organization. A new company has been formed called the Canada Transportation Lines, Limited, the au- thorized capital of which is $25,000,000, divided into 125,000 7 per cent cumula- tive preference shares of $100 each, and 125,000 ordinary shares, of $100 each, and with authority to issue 30- year first mortgage debenture stock of $8,000,000, bearing interest at 5 per cent, with power to increase the amount of such mortgage debenture stock from time to time, providing the proceeds thereof are used for the purchase of new boats or other property necessary for the company to acquire, and on the terms more fully to be set forth in the mortgage trust deed. The trustees for such debenture stock will be the Law Debenture Corporation, London, Eng., and the Prudential Trust Co., Montreal. The registrars for such stock will be the Royal Trust Co., Montreal, and Brown-Shipley & Co; London, Bag. € registrars for shares will be the Royal Trust Co., Montreal and London. Transfer agents, Prudential Trust Co., Montreal and London. Bankers, the Bank of Montreal. Brokers, J. & A. Scrimgeour, and Linton, Clarke & Co. Auditors, Marwick, Mitchell, Peat & Co. "Further particulars of the new com- pany and other matters connected there- with will in due course be given to shareholders. It is expected the new company will eventually acquire as go- ing concerns, including all their assets, good will and profits for the current year, the following companies: Riche- lieu & Ontario Navigation Co., Ltd. ; Inland Lines, Ltd.; Northern Navigation Co., Ltd.; St. Lawrence River Steam- boat Co. Ltd.;. Richelieu & Ontario Navigation Co. of U. S. A.; Quebec Steamship Co., Ltd.; Canada Interlake Line, Ltd.; Ontario & Quebec Naviga- tion Co. Ltd.; Merchants' Montreal Line; S.: S22. Haddington: "Thousand Island Steamboat Co.,. Ltd, "The assets of the above companies have all been appraised by the Cana- dian Appraisal Co. and the accounts have been audited by Marwick, Mitchell, Peat & Co. "Their reports and state- ments are open to the inspection of shareholders, and have been carefully examined by your board. Assuming the purchase to be carried out on the lines proposed, the new company will have assets as shown by the state- ment of the appraisal company of $33,- 055,538, in which vessels have been valued at $16,866,834; real estate, build- ings and. dock properties at $5,450,267.- 99 and $661,531.04 would be cash on hand, and $8,698,969.89 would represent the value of leases, contracts and goods, é will acquired by the company and cov- ered by ordinary shares. The new company would be free from debt over and above the debenture stock issued, and current accounts. The net earnings of the consolidated companies for the year ended Dec. 31, 1912, was $1,494,- 554.48, which showse an ampte amount for the payment of interest on deben- ture stock and interest on the prefer- ence stock with a fair amount applica- ble to reserve and ordinary stock. Increase in Net Earnings "Allowing for new tonnage not in operation in 1912 on the same basis as earnings on similar tonnage in 1912, the increase in met earnings from this source alone over last year would amount to $263,000. In the item of in- surance premiums I am advised by competent authority that a reduction of a considerable amount can be effected. "The impression that prevails in some quarters that it will be necessary for the new company to advance rates in order to improve its financial position is entirely unfounded. After giving the matter careful consideration, I ant of opinion that the savings that car be effected by the new company over the individual companies in handling their boats, in preventing overlapping, | and by giving a prompter and more ef- ficient service, would be very great. Growth of Lake Transportation "The important points that your di- rectors had to consider was whether in their opinion it was in the interest of the Richelieu shareholders to sell out the assets and undertaking of that com- pany, and if so, whether the Richelieu shareholders were in their opinion ob- taining a fair share of the stock of the new company for the stock which they now hold. It is proposed that the shareholders of this company receive $12,000,000 7 per cent cumulative pref- erence shares of the new company for the $10,000,000 of Richelieu stock. For example, each holder of 10 shares of Richelieu will receive 10 fully paid 7 per cent cumulative preference shares of the new company, and in addition 4 fully paid ordinary shares, which I think you will agree with your direct- ors, is an excellent arrangement. "The most important reason for your board being willing to advise the sale "of the Richelieu assets and undertaking at the present time, is the fact that in their opinion it is essential to put the affairs of the company on the soundest possible financial basis both for the present and future requirements. "The growth of the water transporta- tion on the Great Lakes is assuming enormous proportions, and if Canada in the future is to continue to go ahead as she has in the past, the growth of this trade from year to year is going to: be very great. ; "This means that if we are to give 'satisfactory service to the farmers and shippers of this country we must be in a position to provide new boats from time to time and see that the grain grown in the country gets out of it in the promptest, cheapest and most efficient manner. In view of the world-wide financial stringency and the fact that requirements for money would be prac- tically a matter from year to year, it commended itself to the judgment of your directors to sell to the larger or- ganization."