The eighth ordinary general meeting of Cable and Wireless (Holding) Ltd, was held last Month at Southern House, London, E.C.
Mr. J. C. Denison-Pender (the Governor) said that it was a source of much satisfaction: to observe the improvement which had taken place during the last few months in the monthly traffic index figure of the operating company, but that represented only a portion of the receipts of the Holding company. He was glad to say that the various Governments of the Empire recognized that the time had arrived for a re-examination of the original "Charter" under which the company worked, and discussions had been taking place for some time past.
Continuing, Mr. Denison-Pender said: I now come to the scheme which the directors have put forward for a cappiat reconstruction. At the outset let me remind you of the conditions- which have made such a scheme necessary.
It is essential to appreciate that since the time of the merger the whole position as regards inier-national communications has radically changed. When the cable and wireless services were brought together it was assumed that competition would be eliminated and that, by a rationalization of the services, all the benefits of unified control would be derived and the communication services of the Empire consolidated with mutual benefit to all concerned.
There are several factors which have produced changed conditions.
Firstly, the opening of additional¥ direct wireless services operated or subsidised in various cases by the Governments concerned solely with a view to national prestige and irrespective of profitable operation.
Secondly, the increase in competition resulting from the fast developing airmail services. 4 Thirdly, of course, there was the unprecedented world depression.
Again, for various causes, the profits which it was hoped would be derived from the activities of Marconi's Wireless Telegraph Company have not materialized.
The authorised capital of the holding company was originally £53,700,- 000. This was reduced in 1935 to £47,246,593 by the repayment of £6,453.407 of the 5% per cent, Preference stock.
If you approve of the dividend of 5% per cent. on this stock, recor-mended - by' your directors, e dividend will still be 21 months in arrear, amounting to a gross sum of £1,613,784. The financial position of the company, unfortunately, has not permitted of the payment of any dividend whatsoever on the "A" and "B" Ordinary stocks. The actual amounts available from time to time for distribution to the Preference stockholders, if spread over the whole of the company's capital, represent a return between 1% and 2% per cent. only.
Text read from the printed page and cleaned; old type leaves the occasional error.