CABLE CONTROL.

Hawera Star, Volume XLVIII, 10 December 1928, Page 9

CABLE CONTROL.

DEBATE ON MERGER; PROPOSAL.

SEVERAL AMENDMENTS NEGATIVED.

(Australian Press Association —United Service.) LONDON, Dec. 7. In committee on the Imperial Telegraphs Bill, Mr. Welloek moved an amendment fixing the price for the two Atlantic cables at £2,500,000. He complained that the- price proposed represented one-fifth of the original outlay, whereas the Eastern Company was getting double its outlay and the dividend from the beams. The Postmaster-General replied that the figures were grotesquely wrong. The sum of £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 4:1 P er cent, they return the Government 1£21,375 per year, which was more than they earned before. Mr. Walter Baker emphasised the differential treatment of private cables which wero being taken into the merger on a basis of their shareholding. For example, Marconi is sited a capital of 2| million and received new shares to the value of £1,735,000, they parting with a valuable asset, the beam, against which the cables could not live. Mr. Alexander, asi a protest, moved to report progress, which was negatived by 190 to 98; likewise an amendment to Mr. Malone’s new clause empowering the Government to re-buy the undertakings at the same price. .This was negatived by 180 to 9S, the Post-master-General pointing out that the Government had power to resume * control in war-time. Mr. Wedgwood Benn’s proposal tor 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 the existing conditions, otherwise they should be compensated. Viscount Wolmer gave an assurance that no one would find himself m a worse position under the new conditions in connection with which they were now negotiating. The clause was negatived by 169 to 100. Further consideration of the BiU was adjourned. ______