BRITISH CONTROL

Wanganui Chronicle, Volume 71, Issue 177, 28 July 1928, Page 7

BRITISH CONTROL

EMPIRE COMMUNICATIONS CABLE AND WIRELESS [ Per Press Association ] WELLINGTON, July 27. The Prime Minister (the Rt. Hon. J. G. Coates) to-night released for publication a summary of the report of the Imperial Wireless and Ca-oles Conference. No information can yet be made available as to the attitude of the New Zealand Government pending the decision of all the other Governments concerned, but a statement on the subject will be made in the House of Representatives in the course. The report covers eight clos.ely typed pages and ends with the recommendations of the Conference. These are:— The merger company to be formed will acquire, as from April 1, 1928, all ordinary shares of the Eastern, Eastern Extension and Western Telegraph companies and all ordinary and preference shares and debentures (if any) of the Marconi Wireless Telegraph Company, and there will also be forme J a Communications Company to which the cable and Marconi companies will sell as at April .1, 1928, all their communication assets in exchange for shares. The Communications Company will therefore hold all communication assets of the cable and Marconi companies, except in so Tar as these belong to subsidiary companies in which the cable ami Marconi companies’ holding is less than 100 per cent. The Communications Company will acquire the holding of the cable and Marconi compani.es in those communication companies in which the cable and Marconi companies’ holding is less than 100 per cent, and will also acquire Government cables and hold a 1 *ase of the Post Office beam. The capital of the Communications Co. is not to exc.eed at its inception £30,000,000. The Communications Company to take over, as from April J, 1928, the Pacific Cable Board’s cables, the West Indian Cable and the wireless system worked by the Pacific Cable Board, Imperial Atlantic Cables and a lease of the. Post Office beam service (including provision for the transfer to the company of existing staffs on terms to be arranged), the ucain service to be leased for 25 years at a rental of (a) a basic sum of £250,000'a year; (b) as from April 1, J 931, an addition equivalent to 12 per cent on any inciease in the companies’ profits (from communications services) above standard revenue, a payment of £60,000 to be paid in such manner as may be agreed.

A standard net revenue of £1,865,000 (exclusive of non-telegraphic investment revenue) from the services to be fixed to the purposes of the company, all net revenue from communications servi6.es in excess of that sum to go, 50 per cent .to the company and 50 per cent, to the reduction cf rates or such other purposes as the advisory committee may approve.

No increase of rates prevailing at the date of formation of the Communications Company to be made, except with the assent of the advisory committee.

It is to be agreed: (a) That Britsih control of all companies must be guaranteed; (b) that the Governments may assume control of the cable and wireless systems in time of war or other national emergency; (c) that fighting services are entitled to build and work cable or wireless stations for their own purposes, but not lor commercial purposes. The Post Office in London will reserve the right to conduct the external telephonic services of Great Britain but will agree with the company on the terms on which it. will have the right to use the company’s wireless stations or portions thereof for telephone purposes.