CABLES AND WIRELESS LTD.

Nelson Evening Mail, Volume LXX, 22 June 1936, Page 3

CABLES AND WIRELESS LTD.

IMPENDING CHANGES DISCUSSED DRASTIC ECONOMY CUTS MENTIONED (United Press Association —By Electric Telegraph—Copyright) (Received 22nd June, 9.30 a.m.) LONDON. 21st June. The city is speculating on the nature: of the changes impending in Cables and Wireless Ltd. It is generally considered that the Government will take a closer interest in the affairs of the company. It desires someone more closely representative of Government interests to become both chairman and managing- director of the operat-ng company The Government is vitally concerned with the strategic value of the cable system, which wireless competition is making uneconomic and it is considering the possibility of bringing the wireless, cable and air .mail service? under central control. The traffic index for May of G 7.6 was the lowest recorded for that month. A section of the Board is known to favour drasffc economy cuts. Some directors consider the company is paying the Government too much for beam rental and consider it should receive compensation for uneconomic cables, which it is not allowed to scrap. Matters were brought to a head by demands for reduced wireless and cable charges. The Company argues this would prevent the payment of dividends, but it is pointed out that the company is hopelessly over-capi-talised and it is suggested it should split into the original component parts and start afresh on a free competitive basis. The company also complains it is suffering from competition with subsidised foreign services operating at uneconomic rates.