PACIFIC CABLE BOARD.

New Zealand Herald, Volume LXIII, Issue 19495, 26 November 1926, Page 11

PACIFIC CABLE BOARD.

PLAN OF REORGANISATION.

LIMITATION OF RESERVE FUND

PARTNERS TO SHARE PROFITS. •By Telegraph—Press Association—Copyright. A. and N.Z. LONDON. Nov. 24. The report of the Imperial Conference on the reorganisation of the Pacific Cable Board provides that British representation on tho board of seven members shall be reduced from three to two, the board, not Britain, to appoint the chairman by a majority vote for a term of three years. If the chairman is not a member of the board, the number of members is to be increased to eight, the chairman to have a casting vote. The chairman's salary is to be at least £IOOO and each member is to receive £3OO a year.

It is proposed that, beginning with the 1927-28 year, the board shall devote to a reserve fund 10 per cent, of net profits or £IO,OOO, whichever is the greater, or the whole of the profits if they do not exceed £IO,OOO. This fund may be used for repairs and extensions or meeting annual deficits.

It is also provided that the surpluses for the two financial years beginning April 1, 1927, shall be divisible among the partner Governments and thereafter any surpluses shall bo divisible into ttvo equal parts, one of which is to be handed to Britain in repayment of tho outstanding capital and the other part is to be divisible as profits among the partner Governments. This arrangement will continue till all the outstanding capital has been repaid to Britain, after which surpluses are divisible as the partner Governments' profits.

Proposals for material extensions and large new expenditure or involving a change in the board's statutory position shall be referred to the partner Governments.

KEASGNS FOE POLICY.

CANADA'S INFLUENCE

RETIREMENT OF CHAIRMAN

[FROM OUR OWN CORRESPONDENT. J VANCOUVER, Nov. 3.

The Canadian press is generally jubilant over what is regarded as a crushing victory for the Prime Minister, Mr. Mackenzie) King, in the dispute regarding the duplication of the Pacific cable. Cartoonists depict Mr. Kmg returning from the Imperial Conference with a million dollars m his pocket, and the scalp of the chairman of the Pacific Cable Board, Sir William Mercer, hanging at his belt. Mr. King is nothing if he is not a good stage manager and producer. Therefore he staged his protest against the duplication at the time when one of the cable-laying vessels, the Dominia, was actually at Victoria, half a day's sail fram Bamfield, where the present cable comes ashore. Mr. King said, "I will not let you land the cable." Then the board gave in.

The dispute arose chiefly because Canada is not on the same terms, in the matter of revenue from the cable, as the other partners on the Pacific littoral, Australia and New Zealand. They own their own talegraph services, and draw approximately Is revenue for each cable sent. Canada draws nothing. Her people have had no experience of the State owning such public utilities. The Canadian writers near IVfr. King in London say he has secured the retirement of the fthairman of the Pacific Cable Board, Sir William Mercer, who has been a member since its inauguration a quarter of a century ago, and chairman since 1923. They credit him also with securing a promise that a million dollars will be paid to Canada from profits of the next three years, as a solatium for the action of the board in appropriating Canada's claimed share of the accrued surpluses to the duplication work, in the face of the opposition of both her members on the board

Mr. King is also credited with securing an amendment of the personnel of the board, reducing Great Britain's representation from three to two, thus making it equai to that of Australia and Canada, each of which has two members, New Zealand having one He is also credited with the decision that the chairman should be chosen by the board, not by the British Treasury; that he should be persona grata with the three Dominion Governments; and that he should be paid at least £IOOO a year. Apparently, from accounts to hand to now, the spoils of victory are all Mr. Mackenzie King's.