The Guardian And Evening Star, with, which is incorporated the West Coast Times. MONDAY, AUGUST 6, 1928. AN EMPIRE MONOPOLY.

Hokitika Guardian, 6 August 1928, Page 2

The Guardian And Evening Star, with, which is incorporated the West Coast Times. MONDAY, AUGUST 6, 1928. AN EMPIRE MONOPOLY.

Some time ago, what is known as the Imperial Wireless arid Cables Conference set out to consider the cable services and other means of communication throughout the Empire. The principal reason for this investigation was the competition of beam wireless with the cable companies, and the probability that it will prove even more dangerous to its rivals in the future than in the past. The upshot of the discussion is a report, now circulated, which recommends the creation of a merger or combine to take over the main British cable lines, including Eastern Extension, and Pacific, and also the Marconi Wireless Company, and to run them in conjunction as a private commercial enterprise. In the House of Representatives on Friday, Mr Coates, Prime Minister, outlined the. proposal, and stated that the Government had accepted the agreement on behalf of the Dominion along with all other parts of the Empire, including India and the Irish Free State. New Zealand has a financial interest in the Pacific or All Red Cable, which was laid down by Great Britain, but to which the'Dominion lias contributed towards maintenance and loss, the proportion being one-ninth of the cost. The amount New Zealand lias paid l in is likely to be recovered when the company takes over the Pacific cable along with the other British lines contemplated. The essential part of the agreement is that the new company which will enjoy an Empire monopoly, is not to derive a greater dividend than six

per cent, and any increased profits over that percentage is to go in rebating transmission charges. The need or cause for this important agreement is the rivalry of wireless over cable communications. In many ways the wireless hns outstripped the cable service, but the latter has one advantage in regard to secrecy which the former lacks. For defensive and commercial purposes, therefore, the cables have great national advantages, which in the general interests of the Empire should t>e retained even at some sacrifice. It is of course a great departure from accepted conditions to find governments ready to hand over such important public, services to a private-

concern. But in the changing course of events, and in the interests of all parts of the Empire, the step appears essential. In the House of Commons, and also in the New Zealand House of Representatives, the voice of Labour was raised against the scheme. This week there is to be a full dress debate in the Wellington Chamber on the

adoption of the report, when we may expect to hear a good deal against the creation of a monopoly for the alleged capitalist who has to finance these great undertakings. On the other hand, as might have been expected, the opponents of State control at Home approve emphatically of the conference’s decision. The “Times” in particular maintains that' unity of control is essential to the success of the cable and wireless companies, and it expound the traditional British view that the element of private enterprise is indispensable for administrative efficiency. Other important London dailies also approve and at the same time question the attitude of the Labour members regarding the new Em-

pirc scheme. Some of the radical papers side with Labour, however. The “Manchester Guardian” expresses doubts about the safeguards by which the public interests are supposed to be protected against the demand for dividends, and there are manifest dangers involved in this prospect that cannot safely bo ignored. But if it is only a matter of safeguards, tliat objection should be overcome. Wireless ot course is in its initial stages, and it is perhaps well that the matter is being grasped betimes. Its possibilities are enormous, and on that account the Imperial authorities were wise to move at a stage when the best terms could be made. It is altogether satisfactory that the all-Britisli colour of the scheme is to be retained, and it is a matter of special gratification to note that all parts of the Empire are ready to subscribe to the new arrangement affecting the cable-wireless merger.