WIRELESS CONTRACT.

Dominion, Volume 6, Issue 1654, 22 January 1913, Page 7

WIRELESS CONTRACT.

MARCONI COMPANY SEEKS RELEASE.

UNFAIRNESS ALLEGED,

By Telegraph—Press Ansoolation-Oopytirta

. London, January 20. Tho Marconi Company has written to the-Government requesting to bo released from its contract with tho General Post Offico owing to the oxpenso incurred by tho indefinite dolay iu ratifying tho contract, which is proving a serious detriment to the company. Complaint is also made of erroneous statements, professedly based on evidence given before tho committee, being reproduced in tho newspapers without an opportunity being given.' of refutation.

(Reo. January 21, 0.15 a.m.)

London, January 21. The Select Committee which is inquiring into the circumstances connected with the granting of the Marooni contract is continuing its investigations. Mr. Godfrey Isaacs,, president of the Marconi Company, in an interview, stated that Mr.. Marconi had repeatedly asked to be allowed to give evidence before the committee, but was not allowed to do so. Tho'company would not stand and he shot at in ' this fashion, sinco • contract prices and materials had increased by fifteen per cent. Following the company's request to be i allowed to withdraw from the contract, Marconi shares fell to 3 13-16 th, but recovered, and closed at 41. •

' The "Daily News" approves of the cancelling of tho contract. It states that the Imperial Defence Committee gavo the impulso in favour of an immediate Imperial system, and this the Post Office gravely. hampered. The strategio' arguments which had convinced the Defence. Committee were not impressive to laymen. If the contract were concelled it could be reviewed, and the, Government cculd see whether there was any real need for the.projected stations.

The contract with.,the- Marconi Company provides for the erection of a ,girdle of wireless stations at a cost of ■sEGO.OOO for each station, exclusive of site, foundations for machinery, and buildings, and the buildings themselves, while the terms further provide that the company shall receive 10 per cent, of the gross receipts of all tho long-distance stations erected for tho term of tho agreement, which is for 28 years from the date, of the completion of tho first six sta-

tions. .The Government has power to terminate tho agreement at the expiration of 18 years, but in that case they would cease to have the right'of-use of any of

tho companyV patented iptroooases or machinery. The contract for a period of years had to bo ratified, by Parliament.