CABLES AND WIRELESS

Poverty Bay Herald, Volume LXII, Issue 18632, 16 February 1935, Page 12

CABLES AND WIRELESS

CHEAPER RATES WANTED AUSTRALIA’S PROTEST , r „ , CAPETOWN, Feb., 6. Air. Delamore AlcCuy, chairman of-the Australian delegation to the Press Conference, made a strong plea for a campaign in favor of cheaper cable, and wireless rates for press purposes when the conference met- in its first- technical session, tlie subject of Imperial communications being under discussion. Afr. AlcCay made a strong attack on the capital structure and present positaou of. Imperial and International Communications, Limited, the great merger company Tormed in 1929 in order to meet the position of the cable companies caused by the competition of beam wireless.

Hie capital of the holding company, said Air iVlcCay, was fixed at £52.000,000, and cable-users, if tlrey did not actually have to put up those millions, were asked to maintain that amount of capital. Afore than £11.000.000 oi the iotat capital represented “goodwill and intangible assets.’’'

~ £ never read in the history books that- George Stephenson, Limited, was capitalised on the basis of the money mnk in stage coaches,” Afr. AlcCay

J-t was claimed that the merger was necessary to prevent foreign nations m seeking to control communicalons, and in order to maintain secret strategic channels ot communication. Mr McCay urged that the report of ioTf i ?? Committee appointed in 1931. should bo published, and that here should bo a further review of the position to bring the information up to date. Dealing with the question of the strategic value of cables, Air. AlcCay said that wireless engineers made dehinte claims about their Systems that t» toy could not be tapped, and that uie wireless could not' be cut. In so ar as the cables were required for srategic purposes, he contended, it. was grossly unfair to levy the cost on telegraph users. Air. AlcCay also asked why it should ( ost more to send i\ beam message Rom England to Australia than to other Dominions. The plant at both ends is substantially the same, he pointed out, and the running costs cannot- differ materially. The speaker urged the utilisation of the surpuis capacity of the present Empire telegraph communications bv the inauguration of a- low deferred press rale of one penny a word from Engand to Australia, and also between the Dominions'. Failing a scheme of this v * i' ii e n Sa,c ’ -Australian newspapers undoubtedly would turn to the air mans to supplement press telegrams.