WIRELESS CABLE MERGER

Taranaki Daily News, 23 May 1928, Page 9

WIRELESS CABLE MERGER

HOUSE MUST YET APPROVE ATTACK MADE ON MARCONI DISCUSSION IN COMMONS By Telegraph—Press Assn.—Copyright. Australian Press Association. United Service. London, May 21. In the House of Commons Mr. Baker Bristol (Labour) raised a discussion on the Imperial beam system. He detailed all the history of wireless since 1923 and said that he understood that the propsed merger between the Marconi Company and the Eastern Telegraph Company was a calculated attempt to force the hands of the Government. They hoped to take over the Post Office wireless 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 jotential profits of the Government beam service. It was understood that the Post Office service, although in its infancy, was already showing a handsome profit. The cable companies were frankly afraid of the success of the beam and entered the merger as the only way of escaping competition-

Mr. Baker objected to the Imperial wireless communications being handled by two groups, of which he alleged that one had a record of scandalous mismanagement. If it was a fact that decision had been reached in this matter by the Imperial Wireless Conference, then the Government had adopted a course which was fatal to the national interests, and the chief result cf the conference had been to enrich share manipulators. “I want to submit, to the House, calmly and quietly, that Marconi, the name of an illustrious inventor, 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 Marconi ill the Dominions. The greatest possible charges are made in regard to the Marconi operations in the Dominions. Distinguished members of the House of Sommons have said things I dare not repeat unless there is proof, and I must leave the matter there. "ATTEMPT TO FORCE GOVERNMENT” “The merger is a definite, calc..lated attempt to force the hands of the Government, and the attempt is accompanied by a treacherous threat on the part of the companies to pay out shareholders, cease operations and let the cables go derelict. They threatened this because, after receiving generous Govern ent assistance, they were unable to compete with the Government beam service.” The Opposition’s great fear was that the recommendation had been agreed to by the conference and that when Dominion Governments acquiesced they would have found the bargain concluded.

Mr. Baker concluded by asking the Government to say why the Secretary for Scotland was asked to look after the Government’s interests. Ho was conspicuous for geniality and courtesy, but these were not the weapons with which to meet an international gang. Sir Hamar Greenwood disagreed with Mr. Baker’s conclusion in favour of State control which, in view of lack lof capital, made for under develop- | rnent. The great experiment of Stateowned cables and beam system had been excellent, but it was time they were transferred to private enterprise. This was an opportunity to make a good bargain on a rising market. Mr. C. G. Ammon (Labour) said: “There seems to be an atmosphere of corruption and' wire-pulling about wireless communication and the cable companies which is almost without parallel in the history of commerce.” Captain lan Fraser (Conservative) said that the merger was the marriage of two titles, one of which owned the best method of transmitting messages and the other of which owned the best method of collecting and handling. He believed that those in favour of tho nationalisation of thia industry were serving a political doctrine rather than the needs of the country. INVESTIGATION BY CONFERENCE. Sir John Gilmour, speaking as chairman of the Cable Conference, detailed the progress of the inquiries. Ho pointed out that the problem was not easy to unravel. It involved considerable research. They had to consider the repercussion in Australia and the other Dominions and colonies. Tho Government accepted no responsibility for the merger, which was subject to B satisfactory arrangement with the Governments of Britain, the Dominions, and India.

All possible reaction from the" merger had been examined in detail by the conference. Sir John Gilmour added that Mr. Baker had expressed a fear that the House of Commons had been deprived of the opportunity of considering the problem before the merger became a fait accompli. Consultations and communications were still proceeding. He could not say when they would be concluded. When the conference made its reconrmendations the British and Dominion Governments would decide on action. Before any definite conclusions were taken the matter would be brought before the House of Commons. He hoped this would reassure doubters.

The Rt. Hon. Vernon Hartshorn (Labour) welcomed Sir John Gilmour’s announcement and the debate concluded.