MERGER GETS THE BENEFIT

Feilding Star, Volume 7, Issue 2304, 5 September 1929, Page 5

MERGER GETS THE BENEFIT

OF THE BEAM. PROFITS BRITISH POST OFFICE LETS GO (Aust. and N.Z. Cable) (Received iStpt. o, 11 a.m.) London, Sept. 4. It is authoritatively stated that the Empire beam telegraph systems are being handed over to' the. merger company at the end of this month. It iu also stated that the British Post Office, which was originally budgctting to work the beams ai ' smaT profit, found it was converted into such a, large 'surplus through the growth of traffic that it was comteimplating substantially • cutting rates before the merger was mooted. Thifi prospect had definitely evaporated because it was pointed out that the basis, of the capitalisation of the merger precluded any chance of a, reduction in rates for a long time ahead, though there wan little fear of any increase. Regarding wireless telephony to Australia, it wa,s stated that it would be at leant .six months before a commercial service was instituted. This would ho definitely retained in the hands of the British Post Office.