CABLE AND BEAM MERGER.

Horowhenua Chronicle, 23 May 1928, Page 7

CABLE AND BEAM MERGER.

STRONG OBJECTION IN COMMON

"MARCONI’ STANDS FOR corruption, SAYS M.P.

Received Tuesday, 5.5 p.m. LONDON, May 21. Tn the House of Commons Mr. W. j. ’ Baser, tne Bristol Labourite, raised a discission on Imperial beam. , . He** detailed all the history of wireless since 11)23, and said he understood that ,thc ( merger between the Marconi Company and the Eastern Company was a .calculated attempted to torce the hands of the Government. They hoped to take oyer the Post Office wireless and cable, system, .and to control independent wireless and cable companies in the Dominions. The |act was the Marconi Company knew Row great were the potential pro-

fits of the Government beam, service. It is \mdorstood that the Post Office S; service, although in its infancy, is already showing a handsome profit.. The •cable, compianies were frankly afraid

of the success of the beam and entered the merger as the only way of escaping competition. Scandalous Mismanagement. Mr. Baker objected to Imperial wireless communications being handled by two groups of which he alleged one had a record of scandalous mismanagement.: . If it was a fact that decision had been reached in this matter by the ‘ Imperial Wireless Conference then the Government had adopted a course which wae to national interests and the <ehief result of the Conference had been to enrich mare manipulators. Plyarant to submit to the House calinly and quietly that Marconi, the name of the illustrious inventor, stands definitely for scandal and corruption. “It is : lamentable that a scientific inventor should have his name abused, but the fact remains that the Governmentfs difficulties are due almost entirely to the financial operations of Marconi’s in the Dominions. The gravest possible charges are made in regard to Marconi’s operations in the ■Dominions. Distinguished members of the House of Commons have said things 1 dare not repeat unless there is proof «gd , I must leave the matter there. Forcing Government’s Hands.

"The merger is a definite and calculated attempt to force the hands of the’ Government, and the attempt is „ accompanied by a treacherous threat on the part of companies to pajr out shareholders) to cease operations, and to let the cables go derelict. “They have threatened this because after receiving generous Government assistance they were unable to compete with the Government beam services.

‘/The Opposition’s great fear was < that the recommendation had been agreed to b*y the Conference and that when >, the Dominion Governments acquisced they would have found the bargain concluded.” «•'. “An International Gang.” Mr. Baker concluded by 'asking the ■Government to say why the Secretary for Scotland was asked to look after the Government’is interests. He was ■conspicuous for geniality and courtesy but these were not the weapons with which to meet an international gang. Sir Havar Greenwood (Con.) disagreed with Mr. Baker’s conclusions in favour of State control which in view of lack of capital made for the un■derdevelopment of a great experiment. Killing the Goose?

State-owned cables and the beam system had been excellent, but it was time they were transferred to private enterprise. This ' was an opportunity to make a good bargain on a rising market. '

Mr. C. G. Ammon (Lab.) said: t{ There seems to be an atmosphere of •corruption and wire-pulling about wireless communication and cable companies almost without parallel in the history ,Q|-Qpmraerce.' ’ y Tan Fraser (Con.) said the merger was the marriage of two entities,- one of which owned the best method of transmitting messages and the other of which owned the best method of collecting and handling. He believed those in favour of a

nationalisation of this industry were "'serving a political doctrine rather than fhe needs of the country, ' Colonel Sir John Gilxnour (Con.), speaking as chairman of the Cable Conference, detailed the progress of in-

■qumes. Eepercussicn in Dominions.

He pointed out that the problem was -not easy to unravel. It involved considerable research. They had to consider the repercussion in Australia and othe* Dominions and colonies. The Government'accepted no responsibility for the merger -which was subject to a satisfactory arrangement with the Government of Britain, the Dominions, and India. All possible, reaction from the merger had been examined in detail by the Conference. Sir John Gilmour added that Mr. Baker had expressed fear the House ■of Commons had been deprived of opportunity of considering the problem before the merger became a fait accompli. Consultations and communications were still proceeding. He could not say when they would be concluded. When the Conference made its re--commendatjons the British and Dominion Governments would decide on action. . Before any definite conclusions , -were taken the matter would be brought before the House of Commons, Ho hoped - thiß.,.^p!j^!d,.rii| s 9SS\ .doubters. ifiri Vernon Hartshorn (Lab.) welcomed Mr. Gilmour'a announcement. The debate was then concluded.