CABLE MERGER

Dominion, Volume 22, Issue 52, 24 November 1928, Page 9

CABLE MERGER

SCHEME RECOMMENDED BY IMPERIAL CONFERENCE SIR JOHN GILMOUR’S REPLY TO CRITICISMS (British Official Wireless.) Rugby, November 22. The Imperial Telegraphs Bill was read a second time in the House of Commons last night by 258 votes to 124. The measure has been drafted in accordance with the proposals of the recent Imperial Wireless and Cable Conference, recommending the lease of four beam wireless stations and the sale of three submarine cables to the new Communications Company. Labour opposition was based mainly on the objection in principle to parting with an asset, built up by public expenditure, to a private concern. Sir John Gilmour, who presided over the recent conference, spoke in the concluding stages of last night’s debate, and pointed out that at the least the scheme contemplated in the Bill had been unanimously recommended by an authoritative and representative Imperial Conference when faced by the common Imperial problem of preserving the cable communications. Some kind of fusion was agreed to be essential. It was clear that if a State-managed fusion had bene chosen, the Government would have had to buy not only the British but the Dominion sections of cables, which were all wasting assets. The conference, without any prejudice whatever.’ was forced to choose the kind of fusion which would be cheapest to the taxpayer to preserve the cables and secure the full development of new inventions. The conference came to the conclusion that a merger company, formed between the great cable interests and the wireless interests, would be the proper solution of this problem. Their financial advisers having had the fullest access to all information, both of Government concerns and of wireless and cable companies, came to this conclusion and advised the conference that the capital of the Communications Company ought not to exceed £30,000,000. He anticipated that the development of the scheme would bring about a more rapid communication among the British people, that it would maintain the secrecy that was essential for great services, and lead to the development of research of which Britain should have the fullest advantage.