WIRELESS MERGER

Hawera Star, Volume XLVII, 28 July 1928, Page 5

WIRELESS MERGER

PROPOSED CONDITIONS. CONTROL OF SERVICES. NEW COMPANY TO BE FORMED. (By Telegraph—Press Association.) WELLINGTON, July 27. The Prime- Minister to-night released for publication the isumniary given below of the report of the Imperial wireless and cables! conference. No information can yiet he madie available to the attitude of . the New Zealand Government, .pending the decision of all the other Governments concerned, but a statement on tins subject wil'd be mode in the House in due course. /'

The report covers eight closely typewritten pages and endis with the recommendations of tlie center mice. The recommendations are:—

The merger company ito be formed will acquire as from April If 1928, ail the ordinary shares of the Eastern Extension and Western Telrgraplr Companies, and all the orb many and preference shares and debentures (if aid) of the Marconi Telegraph Company, and’ there will a.’so be formed a cpinmunicationis’ company, to which the cable and Marconi companies will sell as at April 1, 1928, all their communication assets in exchange for shares-. The comimm-ica-tio-ns company will therefore hold afl the communication' assets, of the cable and Marconi companies, except in so far as those belonging, to isubsidiairy companies -in which the cable and. Marconi companies’ holding is teas than 100 per Vent. The communications company will acquire the holding of the cable and Marconi companies in those- communication companies in which the cable and Marconi companies’.hording is Hiss than 100 per dent. Tlie communications company will also* acquire the Government cattles and hold a* lease of the Post Office beam. The oaoicai l of the communications company is not to exceed at it® inception £30,000,000. The. company is to take over as from April 1, 1928, the Pac-ifiq Cable Board’s cables, the West Indian* cable and the wireless system worked by the'Pacific Cable Board, the Imperial Atlantic cables and the lease oi the Post Office beam service (including provision for the transfer to the company of tlie existing .staffs on terms to be arranged), the beam service to be * leased for 25 years at a rental of (a) a bawic sum of £250,000 per annum; (b) a s Pnom A mb' 1, 1931, .an addition equivalent to 12 per cent, on any din—-crea-re in the company’s profits (Pnom communications company, to be pensions standard revenue, a payment of £60,000 to be paid in such manner as may be agreed. The board op direcitors of the merger company. the communications company and the c-’.ble and Marconi companies will be identical, two of the directors, or,i> of whom shall be chairman of tlie cm muni cations company, to be persons approved l -by His Majesty’s Government. On the suggestion of the cable companies a standard net revenue -of £l,865,000 (exclusive of n on-telegraphic investment- revenue) from the oonununiioa,thus -company’,s services is to lie fixed, all nett revenue from the communications service in excess of that sum to go 50 per cent, to the company and. 50 per cent, to the reduction of rates or such, other purposes l a® the advisory committee "may a.pprovto.- If additional! capita.! expenditure is incurred by the oomniuii'icafcipns company in relation to traffic, there '.shall be added to the -above initial standard revenue an appropriate charge for interest at such a. rate as may later be agreed,. the convmnnieatiens company to consult in regard to 7 prions of policy, including any alteration of rates, the advisory committee \-!',-'ch. we suggest. 'should linclnde ireprerentativpe of the Governments participating •-in the conference, *to whom representatives of other parts of the Empire may he added as required firom time to timp with the approval of the Governments concerned. No increase of the rates prevailing at the date of the formation of the communication® company are to -be made, excopti with the assent- of tlie advisory committee. ; It i® to lie agreed (a) that British control of all ’.the companies must- bo guaranteed; (b) that the Governments may .assume control of the cable and wiielje'-is systems in time of war or other national emergency; (c> that fighting services are entitled to build and work cable or wireless, stations for their own purposes, but not for commercial purposes. The Post Office in London wilV reserve the right- to conduct- the external telephonic services of Great Britain, but will agree with the company on terms on which it will. have the right to use the company’s wireless stations.of petrtions thereof for telephonic purposes.