CABLES AND WIRELESS

Greymouth Evening Star, 10 December 1928, Page 12

CABLES AND WIRELESS

COMMONS DISCUSS MERGER. (Australian Press Association.) (By Cable—Press Assn.—Copyright.) LONDON, December 7. In Committee on the Imperial Telegraph’s Bill, Mr. Mallock moved an amendment fixing the price of two Atlantic cables at £2,500,000. He complained that the price proposed represeneted one-fifth of the original outlay, whereas the Eastern Company was getting double its outlay, and dividends from beams. The Postmaster General replied that the figures were grotesquely wrong. The £450,000 for the Atlantic Cable was a satisfactory bargain on the original cost of £1,086,000. Their present worth to the Government was a minus quantity. Under the merger scheme they would be made part of a world system. At 451 per cent, they return the Government £21,375 per year, which is more than they earned before.

Mr. Walter J. Baker (Labour) emphasised the differential treatment of private cables, which were being taken into the merger on the basis of their shareholding. For example, Marconi with an issued capital of £2,500,000, received new shares to the value of £17,350,000. They were parting with the valuable asset of beam, against which cables could not live. When the Postmaster General refused to disclose the price, he suggested a wireless conference for cables. Mr. A. V. Alexander (Labour) as a protest, moved to report progress, which was negatived by 190 to 98; likewise an amendment.

Col. Malone’s new clause, empowering the Government to re-buy undertakings at the same price, was negatived by 180 to 98; the Postmaster General pointing out that they had power to resume control in war time.

Captain Wedgwood Benn’s proposal, constituting an Imperial Advisory Committee with absolute control, was negatived by 187 to 103. Commander Kenworthy moved a new clause, transferring the Pacific and other staffs to the new company on existing conditions, or otherwise they bo compensated. Viscount Wolmer gave assurance that no one would find himself in a worse position under the new conditions, in connection with which they were now negotiating. The clause was negatived by 169 to 100, and further consideration of the Bill was adjourned.