EMPIRE AIR SERVICE

Otago Witness, Issue 3556, 9 May 1922, Page 41

EMPIRE AIR SERVICE

CONNECTION WITH AUSTRALIA. SYDNEY, April 8. Details of file scheme for the establishment of an Empire airship service between Great Britain, India, and Australia have been received by the Prime Minister from Sir Joseph Cook, High Commissioner in London. The project makes provision for fhe construction of six new airships capable of carrying 100 passengers each. The financial proposals are outlined in the following message received from Sir Joseph Cook: A group, comprising Commander Burney, of Vickers Ltd., and the Shell Oil group has made the British Government an offer to take over airships, sheds, etc., build new ships, and provide a weekly service to Australia at fares under present mail steamer rates. The capital will be £1,800,000, at 6 per cent.,' plus £2,200,000 41- per cent, debentures, both’ free from British taxation. The syndicate proooses issuing £1,200,000 shares plus all debentures. It requires the British, Indian, and Australian Governments to guarantee interest on shares for ten years, and on debentures until redeemed, both being a contingent liability only. It is anticipated that the guarantee will operate only for the first few years of the company’s existence. The Australian base will be commenced immediately on the formation ox the company. The French Government is willing to erect complete air stations at Paris, Marseilles, and in Tunis and Algiers. The suggestion is subject to Parliamentary ratification. The guarantee (contingent liability) on shares and debentures will be a maximum of £40.000 per annum, but subscribers can also take up shares and debentures up to £200,000 or some -lesser amount.” ' The Prime Minister stated yesterdav that lip had not an opportunity of considering the matter himself 'or of submitting it to the Government. The suggestion was one wh'ch involved Parliamentary ratification, and if the Government approved of it the proposals would be submitted to Parliament in due course.