Mexborough & Swinton Times, August 27, 1926
Rumour Of Important Amalgamation.
Denaby, Cadeby, Maltby, Dinnington And Rossington.
It is reported that the amalgamation of the following important South Yorkshire collieries is about to be effected.
Dinnington Main and Maltby Main (known as the Sheepbridge group, of which Lord Aberconway is chairman), Denaby Main and Cadeby Main (of which Colonel J. H. Leslie, D.S.O., is chairman and managing director), and Rossington Main (in which the Sheepbridge Company and John Brown and Co. have the controlling interest, and of which Lord Aberconway is chairman).
The authorised capital and the number of employees of the various companies are given as follows:
The yearly output of Denaby and Cadeby Main Collier is given as 1,500,000 tons; and of Rossington Main, 500,000 tons.
Lord Aberconway referred to the importance of combination at the annual meeting of the Dinnington Company on June 28th l and said: –
‘The time has come when the colliery interests must take some steps towards combination. It is no use any man sitting on his own cabbage patch today and thinking he is going to make his fortune. We are faced with unexampled conditions in the trade. We know that in the report of the Coal Commission attention is called to the necessity of combinations, and the Government, I believe, are prepared to welcome any scheme of this nature. We have now, in conjunction with several of the largest firms in South Yorkshire, proposals for dealing with this question on equal lines.
‘Not only will combination help to reduce our costs but it will give us more credit, in the money market, for any further capital we may require to raise, and it will help us to maintain prices. We are producing more coal than the world requires to-day, and there is no doubt that the prosperity of the coal trade depends on the amount of coal that we are able to export. If by combination, we can maintain the price of good, first-class fuel, we shall help to restore the industry to its old prosperity. Your directors cordially approve of the scheme, and I know that the directors of the other companies to which I have alluded do also: I most sincerely hope it may come about.’
In a subsequent interview with our representative, Lord Aberconway said that some of the most important concerns in South Yorkshire were discussing the question of a gas coal selling combination for the purpose of regulating output and prices. He also stated that about eight collieries in South Yorkshire were contemplating a financial amalgamation, a sort of holding company, the idea being to facilitate finance, regulate output, avoid unnecessary competition and co-ordinate selling prices.
We now learn that negotiations are proceeding between the two groups of collieries already named. The matter has not gone far yet, in fact, nothing definite has been done, or even any preliminary arrangements made, but inquiries are proceeding to see whether amalgamation would bring any better results.
The Denaby and Cadeby Main Collieries, Ltd., owns 6,176 acres of mineral. The aggregate capital of the Maltby, Dinnington and Rossington companies is £1,850,000, and they are all large concerns.
A message was sent round on Friday by the Central News London Press agency that the amalgamation referred to above was ‘virtually complete.’ Inquiries in official quarters brought the reply that this was incorrect.