RADIO-CABLE MERGER DAYLIGHT ROBBERY

Wanganui Chronicle, Volume 71, Issue 291, 8 December 1928, Page 7

RADIO-CABLE MERGER DAYLIGHT ROBBERY

LABOURITE’S CRITICISM ATTACK ON PAYMENT TO MARCONI COMPANY (By Telegraph—Per Press Assn.—Copyright) LONDON, Dec. 6. In the House of Commons, in the committee stage on the Imperial Telegraphs Bill, Mr Barker moved an amendment disallowing the Government approving the sale price of the Pacific cable with the object of vesting approval in the House of Commons. He pointed out that three per cent, interest on the outstanding debt was cheaper than the Communications Comapny could borrow in the open market. It was virtually a large gift to them. Cables which cost £7,134,000 were being handed over for £2,500,000. Even at the present market price, which was the result of the most terrible manipulation, the value of the Marconi undertaking was not equal to the £17,000,000 the Government proposed to let it have. The Government should insist on the Marconi value the value of the shares prior to the boom which was the result of information obtained from the Imperial Conference. Mr Wellock said it was nothing but daylight robbery. The companies came in to save their skins and not only did so, but skinned the Government and the people. The Postmaster-General said that Mr MacDonald’s statement that the Labour Ministry pushed on the beam system in the teeth of experts’ opposition was a perversion of history. The experts had accurately forecasted the effect of the working of the beam sys--I|'in. It was not a matter of one contract. At least five main agreements were needed. It was a new doctrine that the Government should have to get the permission of the House for the disposal of Government property. Mr Baker had not any right to impute corruption. Mr L. C. Amery said that Canada, one of the partners in the Pacific cable, first suggested that in view of wireless competition with the Pacific cable an Imperial conference should be called to coniscdr the whole question. The Bill embodied its unanimous report.

The amendment was negatived by 212 votes to 128. Mr Samuel said oppositionists overlooked the fact that Britain was not a predominant partner in State-owned cables. The Dominions held thirtconeithteenths of the Pacific cable. Britain could not brush aside the wishes of her partners holding controlling interests.

Mr Amery, in replying, admitted that the Imperial Conferences of 1911 and 1921 committed themselves to the principle of State-owned wireless stations throughout the Empire. At a later conference the Prime Minister of Australia insisted that they must have full power to decide the method in which the Commonwealth would cooperate. Within a few months Australia showed that she did not desire a State-owned system because she gave licenses to an Australian amalgamated wireless < mipany. Later other Dominions committed themselves, to private wireless companies.