[* Rufus Isaacs' son mentions a theory held by some (though he thinks there are strong arguments against it) that Rufus' silence was due to instructions from the Prime Minister, Mr. Asquith, who was not anxious to have the connection of Lloyd George with the matter disclosed, "fearing that his personal unpopularity would lead to such an exacerbation of the attacks that the prestige of the whole Government might be seriously impaired." (Rufus Isaacs, First Marquess of Reading, pp. 248-9.)]
On October 29 the names were announced of the members appointed to the promised Committee of Enquiry. As usual they represented the various parties in proportion to their numbers in the House. The Liberals were in office, supported by Irish Nationalists and Labour Members: 9 members of the Committee (including the Chairman) were from these parties; 6 were Conservatives. One might have expected that the careful evasions in the House would have meant only a brief respite for the Ministers who had been so economical of the truth. They would appear before the Committee and then the whole thing would emerge. But though the Committee was appointed at the end of October and met three times most weeks thereafter, five months went by and no Minister was called. The plain fact is that Mr. Samuel's department, the Post Office, slanted the enquiry in a different direction right at the start by putting in evidence a confidential Blue Book and suggesting that Sir Alexander King, secretary to the Post Office, be heard first.
On the question of the goodness or badness of the contract itself, the Committee uncovered much that was interesting. It emerged that the Poulsen System had offered to erect stations at a cost of about £36,000 less per station than the Marconi, and that the Admiralty itself had estimated a cost, if they were undertaking the work, about the same as the Poulsen offer. But, by a confusion as to whether their figure did or did not include freight charges, the Admiralty estimate had been put down at £10,000 higher than it was! Nor was this the only confusion. When Sir Alexander King spoke of "concessions" made to the Government by the Marconi Company, he admitted under cross-questioning that there was no written record of these concessions. He spoke of various vitally important conversations and was not able to produce a Minute. Letters referred to were found to have been lost from the Post Office files.
Further, it appeared that while most rigid tests were to be required of the other systems, the Marconi people had been constantly taken almost on their own word alone. "Mr. Isaacs and Mr. Marconi both told us," said Sir Alexander King at one point, when asked whether he had had technical advice on a point of working.
"You will excuse me," said Mr. Harold Smith, "if for the moment I ignore the opinion of Mr. Marconi and Mr. Isaacs. I ask you who was the expert who gave you this information."
Then too as to the terms. The Government had proposed 3% on the gross takings. Godfrey Isaacs had held out for 10%, and got it. Moreover, the royalty was to be paid as long as a single Marconi patent was in use at the stations. Considering that by the Patents Act the Government had the legal right to take over any invention while paying reasonable compensation, the provision which gave so high a royalty to the Marconi Company was severely criticised. Again the right was given to the Marconi Company to advise on any fresh invention that should be offered to the Post Office—which meant that any invention made by their rivals was entirely at their mercy.
Naturally enough the question was pressed home whether the Post Office had really sought the advice of its own technical experts. It transpired that a technical sub-committee had been called once, and had recommended a further investigation of the Poulsen System. The report of this sub-committee had been shelved, and the members never summoned for a second meeting.
Early in January 1913, the Parliamentary Committee (against the advice of Herbert Samuel) asked for a special sub-committee of experts to go into the merits of the various wireless systems and report within three months at latest. It is not surprising that the New Witness commented on this as "a surrender of the most decided type, for it proposes to do what Samuel himself clearly ought to have done before he entered into the contract."
The report of this technical sub-committee showed that there had been a good deal of exaggeration in the first attack by the New Witness on the worth of the Marconi System. If one single system was to be used, it was the only one capable of carrying out the Government's requirements. But the sub-committee held that as wireless was in a state of rapid development, it would be better not to be tied to any one system. And they added that while the nature of the contract itself was not within their terms of reference, they must not be held to approve it.
From its examination of the contract, the Committee passed on to examine journalists and others as to the rumours against Ministers. And still the Ministers were not called.