British Oversea Airways The derails of the British Overseas Airways
Bill, which in effect creates a new public corporation to conduct the British oversea air enterprises formerly managed by Imperial Airways and British Airways respectively, have come in for some severe criticism, although the principle of the Bill is almost universally recognised to be sound. The develop- ment of British oversea air services is too clearly a matter of public importance to be left in the control of private interests. But the payment of compensation to shareholders in Imperial Airways at the rate of 32s. 9d. a share, when the market price of the shares before the terms of the Bill were published was 25s. 3d., seems very hard to justify. Sir Kingsley Wood's retort that the price paid was a payment for services rendered does not bear examination, for if that principle were applied to every acquisition of a concern or of land no basis of compensation, assessable in ordinary economic terms, would be left at all. Shareholders, quite property, buy shares in order to draw dividends, not to promote a public service. Incidentally it was significant that the night of the debate in the House was also the night of the arrival of the American ' Yankee Clipper '—the British having failed to start a weekly service from this side.
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