MERGER PROPOSALS.

Waikato Times, Volume 104, Issue 17447, 6 July 1928, Page 8

MERGER PROPOSALS.

:ff©UM O’CLOCK EDITION

I EMPIRE COMMUNICATIONS I : ' /

SOME RECOMMENDATIONS.

STATE AND PUBLIC SAFEGUARDED

(Bt Telegraph—Press Assn. —Copyright.) (Australian Press As3n. —United Service.) (Received July 6, 12.50 p.m.)

LONDON, July 5. According to an unofficial forecast the conference of Empire communications report recommends a combination of all cable and wireless communications throughout the Empire. It also recommends a plan which it is believed will secure uniformity of control and safeguard the interests of the State and public, and provide for future developments. It is proposed that one corporation shall operate both wireless and cables traffic, the Government haying a representation thereon and will hold the balance between wireless and cable interests. The corporation will include the following properties: Eastern and Associated Companies, Marconi and Associated Companies, Pacific Cable Board, British Post Office beam stations, and the Atlantic Cables, which will be leased to the new corporation. There will be a division between purely traffic operations and nonimperial interests, as it is felt the Government could not participate in manufacturing or extraneous undertakings. There will thus be two companies, with, in addition, an authority to advise on rates, expenditure, and new capital. An important proviso stipulates that the operating corporation will be entitled to a fair standard dividend, after which the profits wilt be equally divided between the State and the corporation. ' It is understood that the profitsharing arrangements have satisfied the viewpoint of the British Treasury, which favoured a sliding scale enabling a reduction of tolls as the profits increased, and at the same time giving the company every encouragement to maintain efficiency.