BEAM & CABLES

Wairarapa Age, 23 May 1928, Page 3

BEAM & CABLES

MARCONI COMPANY ATTACKED BY LABOUR M.P. BITTER CRITICISM IN HOUSE OF COMMONS. ATTEMPT TO FORCE HANDS OF GOVERNMENT. United Press Association.—By Electric Telegraph—Copyright. LONDON, May 21. In the House of Commons, Mr. W. I. Baker (Labour member for Bristol) raised a discussion on the Imperial beam question. He detailed the history of wireless since 1923, and said that he understood that the merger between the Marconi Company and the Eastern Company was a calculated attempt to force the hands of the Government. They hoped to take over the Post Office wireless and cable system and to control the independent wireless and cable companies in the Dominions. The fact was, he said, that the Marconi Company knew how great the potential profits of the Government beam service were. He understood that the Post Office service, although in its infancy, was already showing a most 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 Imperial wireless communications being handed over to two groups, of which •no had a record of scandalous mismanagement. If it was a fact that a decision had ben 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 of the conference had been to enrich share manipulators. “CALMLY AND QUIETLY. - ’ “I want to submit to this House, calmly and quietly,” he said, ’‘■‘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's. In the dominions Ithe gravest possible charges are made in regard to the Marconi operations. Distinguished members of the House of Commons have said things I dare not repeat, unless I have proof. I must leave the matter there. The merger is a definite, calculated 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 their shareholders, cease operations, and let the cables go derelict. They threatened this because, after receiving generous Government assistance, they were unable to compete with the Government’s beam service.”

The Opposition’s great fear was that a recommendation had been agreed to by the conference, and that when the Dominion Governments acquiesced it would be found that a bargain had been concluded. Mr. Baker coded by asking the Government to say why the Secretary for Scotland had been asked to look after the Government’s interests. He was conspicuous for his geniality and courtesy, but these were not the weapons with which to meet an international gang. CHANCE OF GOOD BARGAIN. Sir Hamar Greenwood (Con.) disagreed with Mr. Baker’s conclusions in favour of State control, which, in view of the lack of capital, made for underdevelopment. The great experiment of State-owned cables and the 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 (Lab.): “There seems to be an atmosphere of corruption and wire-pulling about wireless communication and the cable companies almost without parallel in the history of commerce.” Captain lan Fraser (Con.) said that the merger was the marriage of two entities, one of whom owhed the best method of transmitting messages, and the other the best method of collecting and handling. He believed those in favour of nationalisation of this industry were serving a political doctrine rather than the needs of the country. Sir John Gilmour (Con.) speaking as chairman of the Cable Conference, detailed the progress of the inquiries,’ and 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. The Government had no responsibility for the merger, which was subject to a satisfactory arrangement with the Governments of Britain, the Dominions a ” d India. All the possible reaction of the merger had been examined in detail by the conference. HOUSE TO BE CONSULTED. Sir John Gilmour added that Mr. Baker had expressed the fear that the House of Commons would be deprived °I the opportunity of considering the problem, before the merger was a fait tccompli. Consultations and communeations were still proceeding, and he could not say when they would be concluded. When the conference made its recommendations the British and Dominion Governments would decide on the action to be taken. Before any deli nite conclusions were taken the matter would be brought before the House of Commons. He hoped that this would reassure doubters. Mr. Vernon Hartshorn (Lab.) welcomed Sir John Gilmour’s announcement, and the debate was concluded.—• (Australian Press Association.—Unitecl Service.)