WIRELESS AND CABLES.

Waikato Times, Volume 104, Issue 17581, 10 December 1928, Page 7

WIRELESS AND CABLES.

MERGER PROPOSAL. MEASURE IN COMMITTEE. LABOUR AMENDMENTS DERATED. (By Telegraph—Press Assn. —copyright.) (Australian Press Assn. —United service.) LONDON, Dec. 8. In committee on the Imperial Telegraphs Bill, Mr Wel lock (Labour, Stourbridge), moved an amendment fixing the price of the two Atlantic cables at £2,500,000. He complained (hat the price proposed represented one-fifth of the original outlay, whereas the Eastern Company was getting double its outlay and also a dividend from the Beams. The Postmaster-General (Sir W. Milchell-Thompson) replied that the figures were grotesquely wrong; £450,000 for the Atlaritic cable was a satisfactory bargain on the original cost of £1,08(5,000. Their present worth to the Government was a minus quantity, hut under the merger system they would he made part of a world system. At 4| per cent, they would return to the Government £21,375 per year, which was more than they earned before. Mr Walter Baker (Labour, Bristol), emphasised the differential treatment accorded private cables, which were being taken into the merger on the basis of their shareholding. For example, the Marconi Company’s issued capital was £2,500,000, yet it received new shares to the value of £17,350,000. They were parting with a valuable asset in the beam, against which cables could not live. When (he Postmaster-General refused [o disclose the price he had suggested at the Wireless Conference for the cables, Mr A. W. Alexander (Labour, Sheffield), as a protest moved to report progress, which was negatived j by 190 votes to 98. Likewise an amendment to Mr Malone’s new clause, empowering the Government to buy hack the undertakings at the same price, was negatived by IcSO voles to 98, the Post-master-General pointing out that he had power to resume control in war time.

Captain Wedgwood Bonn’s proposal consliluting an Imperial Advisory Committee with absolute control was negatived by 187 to 103. Commander Kenworthy (Labour, Hull), moved a new clause transferring the Pacific and other staffs to the new company on existing conditions, otherwise they would he compensated. \ Viscount Wolmer, the Assistant Postmaster-General 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 rejected'by 199 to 100. Further consideration of the Bill was adjourned.