WIRELESS AND CABLES.

New Zealand Herald, Volume LXV, Issue 19953, 23 May 1928, Page 11

WIRELESS AND CABLES.

FUTURE CONTROL ISSUE. ATTACK ON COMPANIES. DEBATE IN THE COMMONS. Australian Press Association —United Service (Received May 22, 5.5 p.m.) LONDON, May 21. A discussion on the wireless and cable services took place to-day in the House of Commons. Mr. W. J. Baker, Labour member for East Bristol, head of th,e research department Union of Post Office Workers, related the history of wireless since 1923. He said he understood the merger between the Marconi Company and the Eastern Extension Telegraph Company was a calculated attempt to force th-i hands of the Government. They hoped to take over the Post Office wireless and the cable system and to control the independent wireless and cable companies in the Dominions. The fact was that the Marconi Company knew how great were the potential profits of the Goverrvment's beam service. It was understood that the Post Office service, although it was in its infancy, was already showing a handsome profit. The cable companies were frankly afraid of the success of the beam wireless system and had entered the merger as the only way of escaping its competition. He objected to the Imperial wireless communications being handled by two groups, of which he alleged one had a record of scandalous mismanagement. Alleged Abuse of Marconi's Name. If ic was a fact that a decision had been reached in this matter by the Imperial Wireless-Cables Conference then the Government had adopted a course which was fatal to the national interests, and the chieLresult of the conference had been to enrich share manipulators. " I want to submit to the House calmly and quietly," proceeded Mr. Baker, " that Marconi, the name of the illustrious inventor of wireless, now stands definitely for scandal and corruption. It is lamentable that a scientific inventor should have his name abused, but the fact remains that the Government's difficulties are due almost entirely to the financial operations of the Marconi Company in the Dominions. The gravest possible charges are made in regard to that company's operations in the Dominions. " Distinguished members of the House of Commons have said things I dare not repeat unless there is proof, and I must leave the matter there. The merger is a definite, calculated attempt to force the hands of the Government and that attempt is accompanied by a treacherous threat on the part of the companies to pay out their shareholders, cease operations and let the cables go derelict. They have threatened this because, after having received generous Government assistance, they cannot compete with the Government's beam service." What the Opposition Fears. Mr. Baker said the great fear of the Opposition was that the recommendation I had been agreed to by the conference, and that when the Governments of the Dominions acquiesced they would find the bargain had been concluded. He asked the Government to say why the Secretary for Scotland, Sir John Gilmour, was asked to look after the Government's interests. Sir John was conspicuous for his geniality and courtesy, but these were not the weapons with which to meet an international gang." Sir Hamar Greenwood, Conservative member for Walthamstow, said he disagreed with Mr. Baker s conclusions in favour of State control which, in view of the lack of capital, made for underdevelopment of a great experiment. The State-owned cables and beam wireless system had been excellent, but it was time they were transferred to private enterprise. This was the opportunity to make a good bargain on a rising market. Mr. C. G. Ammon, Labour member for North Camberwell, said there seemed to be an atmosphere of corruption and wirepulling about the wireless communication and cable companies, which was almost ! without parallel in the history of commerce. Spokesman lor Conference. Captain lan Fraser, Conservative member for North St. Pancras, said the merger was a marriage of two entities, one of which owned the best method of transmitting messages. The other owned the best method of collecting and handling messages. He said he believed those in favour of the nationalisation of this industry were serving a political doctrine rather than the needs of the country. Sir John Gilmour, speaking as chairman of the Wireless-Cables Conference, gave details of .the progress of its inquiries. He said the"problem was not easy to unravel. It involved considerable research. The conference had to consider the repercussion in Australia and in the other Dominions and colonies. The Government had accepted no responsibility for the merger, which was subject to satisfactory arrangements with the Governments of Britain and the Dominions and of India. All the possible reaction from the merger had been examined in detail by the conference. Mr. Baker had expressed a fear that the House had been deprived of an opportunity of considering the problem before the merger became un fait accompli. Consultations and communications were still proceeding. He could not say when they would be concluded. When the conference made its recommedations the British and the Dominion Governments would decide on their action and before any definite conclusions were taken the matter would be brought before the House. He hoped this would reassure the doubters. „