Empire Links to be Cheaper and Unified

Sun (Auckland), Volume II, Issue 418, 28 July 1928, Page 9

Empire Links to be Cheaper and Unified

WIRELESS AND CABLES REPORT ON MERGER (THE SUN'S Parliamentary Reporter*) WELLINGTON, Friday. After an exhaustive study of Empire cable and wireless communication, the Imperial Conference upon these two questions has devised a scheme for placing the service upon a common basis, and increasing the standard to a high degree of rapidity, cheapness and efficiency. TIIE report was released by the Prime Minister this evening, but the Government has not yet intimated its attitude toward the recommendations. The report, which has to be discussed by other Goven throughout the Empire, provides for the formation of a merger company to acquire from April 1 last all the ordinary shares of the Eastern, the Eastern Extension and the Western Telegraph Companies, and all the ordinary and preference shares and debentures (if any) of the Marconi Wireless Telegraph Company. m _ There is also to be formed a communications company to hold all the communications assets of the cable and the Marconi companies, and to acquire the Government cables and hold a lease of the Post Office beam. The capital of the communications company is not exceed at its inception £ 30,000 .o(jb. The communications company to take over as from April 1, 1928. the Pacific Cable Board’s cables, the West Indian cable and the*wireless system worked by the Pacific Cable Board, the Imperial Atlantic cables and the lease of the Post Office beam service (including provision for the transfer to the company of the existing staffs), on terms to be arranged. The board of directors of the merger company, the communications company, the cable and the Marconi companies will be identical. Two of the directors, one of whom shall be chairman of the communications company, to b© approved by the Government. The purpose of the identity of the boards is to secure unity of direction of the policy throughout the undertaking. Fifty per cent. of revenue over £1,865,000 is to be devoted to reduction in rates or extension of services. The formation of an advisory committee fro mthe Governments participating in the conference, to confer upon questions of policy, the Imperial Advisory Committee to be given absolute power in regard to any proposed increase to existing rates zAd allocation of funds which become available for rate reduction. To ensure success, the report says, the scheme must be unified and th» ful Ibenefits of it can only be secured by whole-hearted co-operation on the part of all the Governments concerned and of the undertaking* conducting telegraphic communications throughout the jfhipire.