WIRELESS-CABLE MERGER

Taranaki Daily News, 10 December 1928, Page 9

WIRELESS-CABLE MERGER

LABOUR OBJECTION RAISED SEVERAL AMENDMENTS LOST DISCUSSION IN COMMONS By Telegrarii —Press Assn. —Copyright. Australian Press Association. United Service. London, Dec. 7. In the committee on the Imperial Telegraphs Bill, M. W. Wellock (Labour) moved an amendment fixing tho price of the two Atlantic cables at £2,500,000. He complained that the price proposed represented one-fifth of the original outlay, whereas the Eastern Company was getting double its outlay and the dividend from the beam systems. The Postmaster-General replied that the figures were grotesquely wrong. A price of £450,000 for the (Atlantic cables was a satisfactory bargain on the original cost of £1,080,000. Their present worth to the Government was a minus quantity. Under the merger

scheme they would be made part of a world system. At 4| per cent, they would return the Government £21,375 per year, which was more titan they earned before.

Mr. Walker Baker emphasised the differential treatment of the private cables, which were being taken into the merger on the basis of tbeir shareholding. For example, the Marconi issued capital was £2,500,000, and that company received new shares to the value of £17,350,000. They were parting with a valuable asset, the beam-, against which the cables could not live. When the Postmaster-General refused to disclose the price which he had suggested to the wireless conference for the cables, Mr. A. V. Alexander (Labour) as a protest, moved to report progress, which was negatived by 190 votes to 98. Likewise an amendment to Major Malone’s new clause, empowering the Government to re-buy the undertaking at the same price, was negatived by 180 votes to 98, the Postmaster-General pointing out that the Government had power to resume control in war time. Mr. Wedgwood Benn’s proposal constituting an Imperial advisory committee with absolute control was negatived by 187 votes to 103.

Lieut.-Commander the Hon. J. M. Kenworthy (Labour), moved a new clause transferring the Pacific and other staffs to the new company on existing conditions, otherwise they w T ere to be compensated. Viscount Wolmer gave an assurance that no one would find himself in a worse position under the new conditions in connection with which they were now negotiating. The clause was negatived by 1(19 votes to 190. Further consideration of the Bill was adjourned. United Service. London, Dec. 6. In the committee stage of the Bill, Mr. Samuel said the oppositionists overlooked > the fact that Britain was not a predominant partner in the Stateowned cables. The Dominions held 13-18ths of the Pacific cable. Britain could not brush aside the wishes of the partners holding the controlling interests. Mr. Amery, replying to Mr. C. G. Ammon (Labour), admitted that the Imperial Conference of 1911 and 1921 committed themse’v es to the principle of State-owned wireless stations throughout the Empire. At a later conference the Prime Minister of Australia had insisted that he must have full power to decide the method in which the Commonwealth would co-oper-ate. Within a few months Australia had shown that it did not desire a Stateowned system because it gave licenses to the Australian Amalgamated Wireless Company. Later the other Dominions committed themselves to private wireless companies. Other amendments were rejected, and the first three clauses of the Imperial Telegraph’s Bill were passed. The House then adjourned.