Canberra Times (ACT : 1926 - 1995), Saturday 28 July 1928, page 1


EMPIRE COMMUNICATIONS

CABLE AND WIRELESS MERGER REPORT OF IMPERIAL CONFERENCE HUGE COMPANY OF 30 MILLION POUNDS

The report of the Imperial Wireless and Cable Conference which was released by the Prime Minister's Department last night proposes a new scheme of control for Imperial cable and wireless communications

A fusion of the interests of the Eastern Eastern Extension and Western Telegraph Companies and the Marconi s Wireless Telegraph Company, and the formation therefrom of a Communications Company, is recommended

The latter organisation is guaranteed a standard net revenue of £1,865,000 from services, plus fifty per cent of all additional revenue The other fifty per cent is to be applied to reduce cable and radio rates

The control of interested Governments is secured by the constitution of an Imperial Advisory Committee which shall have sole power over rate increases and matters of general policy

The report states that the object of the Beam wireless service upon cable systems is that cattle undertaking operating between the constituents parts in the Empire would be unable to cont race on a paying, basis in the face of Jitrostricted . competition Pom Beam wireless. The Eastern and Associated Telegraph Companies would be, in

position to go into voluntary liquidation and dispose of their assets to the ugliest bidder, but there are indications that foreign enterprise" might be ready to seize an opportunity to acquire such part of the Eastern and Associated systems as could be transferred to a foreign purchaser. Owing, however, to lack of complete secrecy and corarmy, wireless is not yet in a position entirely to supersede cables. Cables, therefore, still possess, great value for the maintenance of, nupbb.vury com-, munications between the constituent parts of the Empire for commercial and stating he purposes. -ii "4 "'>' . ' The conference reviewed possible courses of action by the Governments concerned, including the proposal to amalgamate as far as possible in one undertaking all the cable- and wireless interests conducting the Communications

fotlwun the various parts of the

United Kingdom so is to secure the

unity of control and unity of election

By such fusion it said one of con hot and din (lion and tim continue in e of the c right system would iii set, in ed

lonoiiTiiMmuid la freckled and hismachine on to foreign competitors, most l(<cti\ol\ assisted while this should be a present of securing a iLiliution in

tin tell (I, i -I j > li i c lilies The Conference

believed that this was the li my chum of course vim, and improving His communication sent y e s of the Empire will-, out instilling, coast stations from the public funds Moans and measure I could he devised which will minister to the community concerned an effective si i cut it a reasonable cost '

To this end, the conference has recommended the formation of a merger company which will acquire, as, from April 1, last, all the ordinary shares of the Eastern, Eastern Extension, and Western Telegraph. Companies, and all the ordinary and preference shires and debentures (if any), of the Marconi

[ Wireless Telegraph Company.

The cable and Marconi groups have large investment interests and manufacturing interests respectively, which are not directly concerned with communication services, and span, entirely

."4l5áVate' jupnipnny^/.íijú^lHihVij: utility

lines, is proposed to conduct the business of the merger, in, so far as oom-' medications services arça'phcernud./n^h W 111' be known 'tis the Communications

Company, and to this organisation the cable and the Marconi's companies holdlit April 1, 1928, all their communication assets in exchange for shares. The Communications Company will, therefore, hold and the communication ascott 'of the cattle and merger companies, except in so far as these belong to the uliHiiliary companies, in which the cable and Marconi's Companies' hold-ing- is less than 100 per, cent. The oniiiiunieut.un!^ Company, will acquire

the holdings of the cable and merger companies in those communication come panics in which the cable and merge, companies' holding is less than 100 per cent. JVho Communications Company: will also acquire the Government cables and hold the lease of the British Post Office Hen in. The capital of the Communications Company is not, to exceed 130,000,000 at its inception. .

' TRANSFER OF GOVERNMENT

ASSETS.

The Communications Company, it is:. suggested, should take as from April 3 last, the Pacific Cable Board's cables the West Indian cables and wireless; system worked by the Pacific Cable Board, the Imperial Atlantic Cables

and' the case? of, the, Post- Ofjjcivhear»,,»

service on terms to be arranged.

The., beam service, it is recommended.

íáliotíur'b'e,1,'íeaseJ.for 23, years, at a rental of £250,000 per annum, and as from April 1, 1931. an addition equivalent, to 12 per cent on any increase in the company's profits from communications services above the standard

revenue.

The Communications Company is to undertake to meet the annual service of the outstanding debt on the Pacific Cable Board as on April 1 last, and to pay in addition a capital sum of £5,000 to the Pacific Cable Board, together with interest at five per cent as from April 1 last; to pay £30(1,lot for the West Indian cable and C l.r>(),00( for the Imperial, cables. The rents' payable by the Communications Company and the service of the Pacific Cable Board debt will be guard the cot" for the merger company.

DIRECTION AND MANAGEMENT

The board of directors of the mer-ger company. The communications, Ihr cattle and Marconi's companies will be identical. Two of the directors, one of whom shall be chairman of the corn'munications company, are to be more-sons approved by His Majesty's Government on the suggestion of the cable

companies. ' r '

A standard net revenue OF If 1,8(15,00f (exclusive of jioii-lefo'giaplUe Investment revenue) from the Communications Company's services is', to hostler to the purposes of the company. Of al

net revenue from the communication? service in excess of' that, sum, 50. per

cent will go to The company, and 50 percent, to the reduction of rates or such, other purposes as the advisory

committee may approve.

, ' (GOVERNMENT CONTROL.

J The ConiniunleiUion.s Company is to

consult in regard to questions of policy, including any alteration of rates an, advisory commit- co, which should include representatives of the Gov-suspends participating in this, conference, to whom representatives of other parts of the Empire may be added No increase of the rates prevailing at the date of the formation of the Communications Company to Kenmare, is cope with the assent of the advisory

committee.

As additional safeguards is to be, agreed, life report continues,, that the British control of all the companies

,miu/t,vhe guaranteed; that -(she Coy-, commoners íhay'assainie control of wish cable, and wireless systems in line of' war or other national emergency; and that the fighting service.s are, entitled

to' tlrtííld^and^work cattle for whales

stations for their own purposes, but not for commercial purposes.

The report concludes by saying that the scheme is designed to secure a common basis for the conduct of the telegraphic communications of the various parts of the Empire. The full benefits of the scheme can only be secured for the wholehearted corporation on the part of all the Governments concerned and of the

I undertakings conducting telegraphic communications throughout the Em

I pure.