COMPANY MEETING
CABLE AND WIRELESS, LIMITED
(The Operating Company)
FOUR MAJOR STEPS IN 12 MONTHS MR. EDWARD WILSHAW'S REVIEW
THE tenth ordinary general meeting of Cable and Wireless, Limited (the operating company), was held on May 9th at the registered office, Electra House, Victoria Embankment, W.C. 2. Mr. Edward Wilshaw, J.P. (Chairman and Managing Director), said: My Lords and Gentlemen: The results of the working of the company during 1938 show what is, in all the circumstances of that year, a very satisfactory profit of just over one million pounds. This is f,z5o,000 less than the profit in the previous year, when £300,000 was set aside to provide for the effect of the Empire flat rate scheme. It nas not been necessary to draw on this reserve to meet the dividend now proposed. The dividend re- commended is 3i per cent., as against 31 per cent. paid last year, a difference of only £75,000. The lower profit is mainly due to two causes, the reduction of rates on the introduction of the Empire flat rate scheme, and the contraction of world trade caused by disturbed international conditions. To gain a proper perspective, however, it would be well to look back to the years 1931 and 1932, when the profits were £75,000 and £80,000 respectively as against the kr,000,000 this year. The expenses show a reduction of £210,000 which is reflected in practically every item. There is a slight increase in working expenses at stations, due to the opening of a new station and the acquisition of wireless installations at Hong Kong, both of which should be regarded as revenue producing. The cost of maintenance of cables shows an' increase of £4o,coo, but this is necessarily a varying figure.
INCREASING EMPIRE TRAFFIC
The Empire flat rate was a big step designed to facilitate and develop Empire communications. Despite the fact that the intro- duction of the flat rate coincided with the beginning of a period of trade depression, it was followed immediately by an increase in the volume of Empire traffic practically everywhere, and this continued during a period when the volume of non-Empire traffic was falling. There seem, therefore, to be reasonable grounds for the belief that the flat rate scheme had the effect of diminish- ing the effect of trade conditions on Empire traffic, and it may be hoped that this in turn will diminish the effect of general world conditions on Empire trade.
EMPIRE FLAT RATE
Since the close of last year a further step has been taken by the introduction of a reduced Empire flat rate for Press traffic, which came into force on April 15th last.
These measures should help to stimulate those businesses and news activities which we already serve. There remains, however, the need to develop new sources of traffic which shall render us less sharply subject than heretofore to the effect of those reces- sions of world trade over which we can have no control, and in this connection the further step taken last week in introducing a cheap social message and introducing it by means of a free day was a phenomenal success. The number of messages sent between any two parts of the Empire widely ,exceeded our expectations. In fact, what we really expected was 100,000 messages and what really happened was about 300,000 messages. By this means we feel we have started to educate the public to the facility for cheap and simple means of communication with their friends and rela- tives in other parts of the Empire. Further, it should bring the component parts of the British Commonwealth of Nations nearer together and knit them more closely.
WIDER FACILITIES
It is of course vital that the development of our service should keep pace with the wider facilities we are affording. Last Sep- tember the company offered to install emergency wireless tele- graphy and teleehony sets at all cable stations within the Empire within its jurisdiction and where no wireless telegraphy or tele- phony existed. The equipment was also designed to communi- cate with ships at sea and aircraft. The company informed the Government that it was prepared to install these sets at its own cost and for use in case of emergency, provided the company was permitted to use them commercially.
GOVERNMENT CO-OPERATION
The relations with the Departments of his Majesty's Government and the Administrations overseas are of a most cordial and co- operative character, as also are the relations with our associated companies overseas. • The account that I have been able to give of the past year shows clearly, I think, that the company has taken the strain of distracted world conditions with its inevitable effect on the trade and commerce whose service is our main source of revenue. That we have in such circumstances been able to achieve such results is surely something which gives us ground for optimism for the future so long, of course, as we are not content to rest on our oars but seek every opportunity to push forward with an enter- prise tempered with businesslike caution, and if, as we all hope, a returning confidence brings brighter times, the effect, on the solid basis we have now built, must show a welcome increase in the company's profits. The report and accounts were adopted and the dividend was approved.
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