A brief history of UCL

[vic mcclymont]

Castle Line & Union Line were the fiercest of rivals on the Cape Mail run, each trying to outdo each other, with each offering better and better ships. Both companies shared the Mail Contract equally, but there was a clause in all the contracts forbidding mergers between both companies.
In 1899, the new contract was issued for tendering, and strangely the clause forbidding a merger was removed and that a single company would be chosen and awarded the contract.
Initially both companies were reluctant to bid against each other but they both became aware that the way forward was to merge and form a single entity.
On the 13th of February 1900 shareholders in both companies agreed the terms of the merger and the new company was registered on the 8th March 1900.
Adverts in the press for the new company first appeared on the 16th of March.
Donal Currie, born in Greenock and later moved to Belfast before returning to Greenock was the new Chairman of the Company.
Currie was loyal to the Scottish Shipyards and alternated his orders for new ships from Glasgow shipyards.
In 1910 Lord Kyslant (Owen Cosby Philipps) made a bid for UCL and was successful and UCL became part of the Royal Mail Steam Packet Group.
Part of the deal was that Currie could no longer be involved with UCL and from the date of the takeover he would have no further involvement with the group of companies.
At the same time that Kyslant made a bid for UCL he also tabled a bid for Cayzer Irvine’s Clan Line, this bid was rejected. Cayzer denied the bid, but the Scottish daily record of that period printed information about the bid.
In the early thirties the RSMP began to unwind due to financial irregularities and Kyslant was jailed for a period of one year.
The result was the UCL among many other companies were demerged from RSMP. UCL lacked funds at this time and the Cayzer family made an audacious bid to purchase UCL, Vernon Thomson the Chairman was against the merger and he sought support from the treasury for repelling the bid. The treasury backed him and Clan Line withdrew. In 1945 Clan Line made overtures to UCL about a takeover again the bid was rejected.
In 1953 Sir Vern Thomson died leaving a power vacuum at the top of UCL, and in 1955 Clan Line made further overtures for a bid/ merger. UCL shareholders were aghast with the thought of merging with a Cargo Line.
Rumours in the City were rife, many thought P&O would make a bid, but they appeared to be disinterested in UCL.
There are stories that in order to force the UCL’s hand Cayzer’s approached Jack Billmeir of the Stanhope Line, urging him and his company to start discussions with a view to take over UCL.
UCL shareholders were mortified and fearing that their company would fall into the hands of a trampship outfit filled hem with dread.
Cayzer’s ploy worked and UCL began talks with Cayzer family. UCL were given guarantees that it was not a takeover but a merger. Cayzer’s came up with the idea of B&C, which would be holding company for the assets of both companies. Initially UCL shareholders were against this proposal, but once the benefits were pointed out, they agreed. With the problems ironed out Cayzer owned 60% of the new company and UCL 40%
Once UCL financial figures were published, which showed the company performed better than expected, UCL returned to the negotiating table demanding more.
It was agreed that Cayzer’s would now own 57% of the new company and UCL 43%.
The Cayzer family wasted no time in stamping their authority over the new organisation, the Pendennis Castle under construction in Belfast was halted while design changes were implemented.
The first board meeting of the new company, was a disaster for UCL directors, they resigned to be replaced by Cayzer board members, the takeover was now complete.
It should be noted that every ten years or so UCL had to table a bid for the Mail Contract.
Regards
Vic

[Doc Vernon]

Thanks Vic
Somehow think I have read this (or very similar) on site in the past but where I do not know!
Interesting though
Cheers

[vic mcclymont]

Not from any site Doc, from my own digging
Vic

[Doc Vernon]

Just seemed on reading it Vic that I had read very similar somewhere??
But thanks fir that anyway~

[happy daze john in oz]

Vernon, some time ago I posted similar from the UCL book, 'every Thursday at four o' clock'.