RADIO-CABLE TRUST

Hokitika Guardian, 9 July 1928, Page 2

RADIO-CABLE TRUST

BEAM STATIONS.

(United Service.)

LONDON, July 4

It is authoritatively stated that although the Conference recommends the operation of cable and wireless properties by a purely communications company, tlie Government will not be responsible directly or indirectly for the company or be financially interested therein.

All Government properties except beam stations which will be leased for a period of years will be sold outright to the new company, whose capital is 7ii the neighbourhood of thirty millions.

The present earnings of the various properties will constitute standard revenue, and any excess will be divided equally between the company and the public. - That is to say, for the reduction of rates.

The public’s interests will be protected by the creation of a consultative body, consisting of representatives of the different Governments, which will also control the rates and decide the allocation of profits and lowering of charges. The project will not affect the East-ern-Mareoni merger, but as the merger company holds shares of the cable and wireless companies, it will necessarily control communications of the company. It is expected, however, that the Boards of the two companies will he similar, ensuring uniformity of policy. The main idea underlying the scheme is to ensure the co-operation and co-ordination of the systems, which are really hot competitive, but complementary. Under a unified management, economies should be^seen red, unobtainable under the present haphazhard system. > The new company will be very strong financially, and will be able to undertake any form of development necessary.