CROP OF AMENDMENTS ABOUT MERGER LOST

Sun (Auckland), Volume II, Issue 532, 8 December 1928, Page 1

CROP OF AMENDMENTS ABOUT MERGER LOST

KEEN ARGUMENT GOES ON STILL IN HOUSE OF COMMONS (Australian and 2?.Z. Press Association) (United Service) Reed. 11.45 a.m. LONDON F.riday. In the House of Commons, during the committee stage of the Imperial Telegraphs Bill, Mr. W. Wellock (Labour) moved an amendment fixing the price of the two Atlantic cables at £2,500,000. Ha complained that the price proposed represented one-fifth of the original outlay, whereas the Eastern was getting double its outlay and a dividend from the beam systems. The Postmaster-General, Sir W. Mit-ehell-Thompson, replied that the figures were grotesquely wrong; £450,000 for the Atlantic cable was a satisfactory bargain on their original cost of £1,058,000. Their prerent worth to the Government was a minus quantity, whereas under the merger scheme they would be made part of the world system. At 4J per cent, they would return the Government £21.375 a year, which was more than they earned before charging interest since 1922. Mr. Walter Baker (Labour) emphasised the differential treatment to private cables, which were being taken into the merger on a basis of their shareholding. For example, Marconis, with an Issued capital of £2,500,000, received new shares to the value of £17,350,000. They were parting with a valuable asset in the beam, against which the cables could not live. Mr. A. U. Alexander, as a protest, moved that progress be reported. This was negatived by 190 votes to 98, as was likewise an amendment to Mr. P. B. Malone’s new clause empowering the Government to rebuy the undertaking at the same price; the Post-master-General pointing out that they had power to resume control in wartime. Captain Wedgwood Benn’s proposal constituting an Imperial Advisory Committee with absolute control wa« negatived by 187 votes to 103. Commander J. M. Kenworthy (Labour) moved a new clause transferring the Pacific and other staffs to the new company on their existing condition, otherwise they to be compensated. Viscount Wolmer gave an assurance that nobody’s condition would be made worse under the transfer, the conditions of which were now being negotiated. The clause was negatived by 169 votes to 100. The debate was adjourned.