IMPERIAL CABLES

Dominion, Volume 22, Issue 51, 23 November 1928, Page 11

IMPERIAL CABLES

SALE TO COMMUNICATIONS COMPANY BILL READ SECOND TIME BY HOUSE OF COMMONS LABOUR AMENDMENT REJECTED The House of Commons carried the second reading of the Bill authorising the sale of the Imperial cables to the new Communications Company, an amendment by the Labour leader, Mr. MacDonald, that the Houfee decline to assent to the sale being defeated by 258 to 134 votes. (British Official Wireless.) Rugby, November 21. Mr. A. M. Samuel, Financial Secretary to the Treasury, moved in the House of Commons the second reading of the Imperial Telegraphs Bill. He said that the measure was necessary for giving effect to the recommendations of the Imperial Wireless and Cable Conference. It authorised the sale to the Communications Company which was to be formed of the Pacific cable and Western Indian cable and two trans-Atlantic cables which were now in the possession b£ the Post-master-General. It also provided for the dissolution of the Pacific Cable Board, when the transfer of the undertaking for which they were responsible had been completed. The Bill did not deal with the beam service. The Beam Competition. The three cable services had been verv seriously affected by wireless and beam competition, Mr. Samuel continued. The Pacific cable was owned by His Majesty’s Government and the Governments of Canada, Australia, and New Zealand. The cable was to be sold on the basis that the Communications Company took over the loan capital debt and paid in addition a capital sum of £517,000 which was divisible between the partner Governments. The West Indian cable was owned by Great Britain, Canada, and some of the West Indian islands. That cable would be sold for £300,000. The remaining property—lmperial cables —consisted of two cables across the Atlantic operated by th: Post Office, one being a former German cable. They would be sold for £450,000. If the three properties were taken together the partner Governments were relieved of a debt of £1,233.000 on loan debt, and besides received £1.267,000. Apart from that, they were receiving an annual payment of rJnt in respect of the beam of £200,000 in cash and £60,000 in cash besides. LABOUR OPPOSITION PROPOSAL ATTACKED BY MR. MACDONALD SAFEGUARDS IN PUBLIC INTEREST (Australian Press Assn.—United Service.) London, November 21. As Mr. Samuel proceeded he was interrupted by a question from Mr. G. D. Hardie (Labour) : .“Who initiated the sale?” Mr. Samuel: Canada. In the Bill we have followed the trend of modern industrial and scientific discovery. (Ironic Labour cheers.) The conference was of opinion that it was impossible to continue the cables by several different hands, as it was wasteful and uneconomic. The new plan would prevent overlapping and secure to the consumers economies and safeguards which included an Empire Advisory Committee. Mr. Ramsay MacDonald (Labour), Leader of the Opposition, moved

That this House declines to assent to the second reading of a Bill which sacrifices public utility to private gain by disposing of valuable State undertakings to private interests. The introduction of the Bill, Mr. MacDonald said, into a dying Parliament was a violation of Constitutional practice. He said that the Government was apparently asking the House to sell the Communications Company a pup, but this was not a question of selling bankrupt cables. It was a question of high national and Imperial policy, touching the efficiency of Imperial communications and the ownership and control of essential services. The conference was a mere go-between between merger interests and the Governments. The latter had actually been sold a pup and thrown away the key of the situation. The merger company was in no sense a public utility. Did anyone ever hear such a reason for handing over 50 per cent, above standard income? The whole thing was absurd, and the appointment of two directors to safeguard public interest a mere fraud and imposition. The Advisory Committee had neither status, power, nor position. Mr. MacDonald asked if the contract would be laid on the table before signature, so that the House could see whether the safeguarding was carried out. It should he examined by a select committee. Mr. Walter Baker (Lab.) said that Labour’s case was that an international gang of financiers had been working to force Britain and the Dominions into this policy. Mr. Pilcher (C.) said that the country had lost £15,000,000 on telegraphs and telephones in the last ten years, and therefore was glad that the cables and wireless were passing from the Government. Major Malone (C.) : Was the rumour that Lord Birkenhead was to be chairman of the new company true?” Mr. G. M. Gillett (Lab.) said that it was as absurd to hand over the cables and wireless as to hand over the Navy to private enterprise. Cables a Losing Proposition.

Sir John Gilmour, Secretary for Scotland, who presided over the cable conference, replying, said that members entered into the conference without any preconceived notions, and in no way prejudged the problem. He emphasised that while they were selling cables which were a losing proposition, they were only leasing the beam wireless to be worked in the most economical manner. The Advisory Committee, which would represent all the Governments concerned, would have a complete veto over all increases of

rates if they disapproved of them. There would be British control and adequate safeguards in the public interest. The scheme would bring about more rapid communications throughout the Empire. Replying to Mr. MacDonald, Sir John said that he would have to consult the Dominions before they could say whether the contract would be tabled. Tlie amendment was rejected by 258 votes to 134, and the Bill read a second time. TRANSFER APPROVED BY PRESS REPLIES TO LABOUR ARGUMENTS (Rec. November 22, 11.35 p.m.) London, November 22. Both the Conservative and Liberal Press approve of the cable transfer. Editorials concentrate on the Socialist argument that the merger ought to have been in State ownership. The “Daily Telegraph” says: “The fact that the merger is the outcome of a conference representative of Britain, the Dominions and the Crown colonies is sufficient answer to the Labourite theory that the Bill is the product of an international robber gang. National ownership is impossible in an Empire whose component parts will not accept tlie doctrine of nationalisation, which is fly-blown.” The “Financial News” says: “Mr. MacDonald assumes that State enterprise is a guarantee of public utility. It is because of tlie evidence to tlie contrary that experiments such as the Imperial Communications Company are necessary.” PROFIT FROM BEAM SERVICES (Australian Press Assn.—United Service.) London, November 21. In the House of Commons, the Post-master-General, Sir W. L. MitchellThoinsou. informed Mr. G. Pilcher (C.) that since September 6 tlie beam services' revenue was £440,000, or £166,000 net after meeting charges and interest.