MARCONIS ATTACKED

Sun (Auckland), Volume II, Issue 361, 23 May 1928, Page 13

MARCONIS ATTACKED

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STRONG TALK IN COMMONS “SCANDAL AND CORRUPTION” (United P.A. — By Telegraph — Copyright) (Australian P.A.—United Service) LONDON, Monday. In the House of Commons, Mr. W. J Baker, Bristol Labour member, raised a discussion on the Imperial beam. He detailed all the history of wire less since 1923, and said he understood the merger between the Marconi Company and the Eastern was calculated as an attempt to force the hands of the Government. They hoped to take-over the Post Office, wireless, and cable system, and control independent wireless and ca.ble companies in the Dominions. The fact was that the Marconi Company knew how great were the potential profits of the Government beam service. It understood that the Post Office service, although in its infancy, was already showing a handsome profit. The cable companies were frankly afraid of the success of the beam, and entered the merger as the only way of escaping competition. Mr. Baker objected to the Imperial wireless communications being handled by two groups, of which he alleged one had record of scandalous mismanagement If it were a fact that a decision had been reached in this matter by the Imperial wireless conference, then the Government had adopted a course which was fatal to the national interests, and the chief result of the conference had been to enrich share manipulators. “I want to submit to the House, calmly and quietly, that Marconi, the name of the illustrious inventor, stands definitely /or scandal and corruption. “It is lamentable that a scientific inventor should have his name abused, but the fact remains that the Government difficulties are due almost en tirely to the finan eial operations of Marcouis in the Dominions. The gravest possible charges are made in regard to Marconi operations In the Dominions. Dfs tinguished members of the House of Commons have said things 1 dare not repeat, unless there is proof, and I must leave the matter there. “The merger is a definite and calculated attempt to fotce the hands of the Government, and the attempt is accompanied by a treacherous threat I on the part of the companies to pay i out the shareholders, cease operations, and let the cables go derelict. “They threatened this because, after receiving generous Government assistance, ttiey were unable to compete with the Government beam service. The opposition’s great fear was that the recommendation had been agreed to by the conference, and that when the Dominion Governments acquiesced they have found the bargain concluded.” Mr. Baker concluded by asking the Government to say why the Secretary for Scotland, Sir John Gilmour, was asked to look after the Government’s interests. H© was conspicuous for his geniality and courtesy, but these were not weapons to meet an international gang. Sir Hamar Greenwood, Conservative member for Walthamstow, said he disagreed with Mr. Baker's conclusions in favour of State control which, in view of the lack of capital, made for under-development of a great experiment. The State-owned cables and beam wireless system had been excellent, but it was time they were transferred to private enterprise. This was the op- . portunity to make a good bargain on j a rising market. | Mr. C. G. Ammon, Labour member I for North Camberwell, said there seemed to be an atmosphere of corruption and wire-pulling about the wireless communication and cable companies, which was almost without parallel in the history of commerce. Captain lan Fraser, Conservative member for North St. Panchas, said the merger was a marriage of two entities, one of which oivned the best method of transmitting messages. The other owned the best method of collecting and handling messages. He said he believed those in favour of the nationalisation of this industry were serving a political doctrine rather than the needs of the country. REASSURING THE DOUBTERS Sir John Gilmour, speaking as chairman of the Wireless-Cables Conference, gave details of the progress of its inquiries. He said the problem was not easy to unravel. It involved considerable research. The conference had to consider the repercussion in Australia and in the other Dominions and colonies. The Government had accepted no responsibility for the merger, which was subject to satisfactory arrangements with the Governments of Britain and the Dominions and of India. All the possible reaction from the merger had been examined in detail by

the conference. Mr. Baker had expressed a fear that the House had been deprived of an Opportunity of considering the problem before the merger became un fait accompli. Consultations and communications were still proceeding. He could not say when they would be concluded. When the conference made its recommendations the British and the Dominion Governments would decide on their action and before any definite conclusions were taken the matter would b brought beforp the House. He hoped this would reassure the doubters.