Union Steam Ship Company and Castle PAcket Company

[vic mcclymont]

An amalgamation is a combination of two or more companies into a new entity. Amalgamation is distinct from a merger because neither company involved survives as a legal entity. Instead, a completely new entity is formed to house the combined assets and liabilities of both companies.

One of my hobbies is researching shipping company history; it is amazing how many myths/ half-truths built up over the years are now built up over the years are now presented as the truth.
One of the biggest perpetrators of incorrect information is the Internet, if it’s on the net it must be true, the opposite is the reality.
Ove the pas years (on and off) I have been researching the history of the Union Steam Ship Company and especially its relationship with the Castle Mail Steam Packets Company.
Both companies became fierce rivals when they were awarded the joint Mail Contract.

Myths:-

1) The Imperial Government did not award the contract it was the Cape Government which had taken over the Tender responsibility for issuing the contract that divided the contract between both companies.
2) Many sources including B&C quote that a Merger took place between Castle Packets and the Union Line.
3) Other sources quote a merger took place.

When you read the financial reports of both companies they were healthy companies with the Union company having better ships.
Sir Francis Evans and Sir Donald Currie spent months negotiating with representatives of the Cape Government for the new Mail Contract. Eventually a contract was agreed by all parties.
On the 16th of December 1899 it was announced that Boards of Castle Packets and Union Lines had agreed to an amalgamation of both companies and that it would be put to shareholders of both concerns early January for ratification.
In all of the documentation produced the word amalgamation is used, not merger
See the definition of merger at the top of the page.
At the Castle Packets AGM it was stated:-
1) Castle Packets were taking over the fleet, assets and liabilities of the Union Steam Ship Company.
2) To equalise the difference in funds Union Line share holder were to receive a sum of over £6, plus shares in the new concern.
The Union Lines meeting was along the same lines, but they stated that both companies would be placed in administration and new joint company formed. As such Sir Francis Evans was appointed Liquidator and it would be 1907 before the company was finally wound up.
Castle Packets did not enter administration but changed their name on the 8th of March, 1900 to Union-Castle Mail Steamship Company, thus breaking an agreement.
At the meeting with Castle shareholders Sir Donald Currie was asked why Union Lines shareholders were receiving a pay out and we are not. The reply, WE ARE TAKING THEM OVER, we have received their fleet assets and liabilities.

So Castle packets and the Union Steam Ship Company did not amalgamate nor did they merge, it was good old fashioned take over done with a touch of deviousness.

I hope enjoyed
Vic

[happy daze john in oz]

There is a book put out many years ago by UCL

'Every Thursday at Four o'Clock'
It gives the whole story of how this all came about as well as many other interesting facts, well worth a read'

[Doc Vernon]

As i posted some time ago ,i bought a Book about the UCL and all its ups and downs , it was a great buy and it is one of the Books that i am sure my Offsprings will read when i am gone . A well worth while read, and has lots of Pics too (Thats for me as i cant read LOL) Cheers

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[vic mcclymont]

Got that book Doc, they talk of amalgamation, not take over.
Vic

[happy daze john in oz]

When dealing in such matters the terms used often reflect the best option for those holding shares in the companies concerned.
Calling it an amalgamation will see the shares do far better than calling it a take over.
Very little in such events is what it appears on the surface.

[Bryan Portwig]

I have in the past made mention of these 2 books from 2 different authors - the first is the union castle chronicles - which gives an accurate and full history of the company from its origins to the year 1953 - the second book - union castle - a fleet history - is again an excellent reference if you want to know a brief history of particular ships - i have been most fortunate in having collected all the books on union castle line barring one - uncharted waters - the golden run and the - everyday at four o clock are one and the same book - ( i have both) - just in different format - and is a good read but from a persons personal feedback and not as detailed as the first 2 i mentioned - while i do not study shipping fleets in depth as some members of this group have - i have over the years collected a lot of memorabilia - models - post cards - menus - posters - letter heads and images - a past time of over 55 years to be exact

[Doc Vernon]

Thats a good collection , i may have to look at trying to get one or two
Cheers