GIANT CONCERNS

Hawera Star, Volume XLVII, 18 May 1928, Page 5

GIANT CONCERNS

TWO HUGE COMPANIES.,

WORLD’S COMMUNICATIONS.

FRIENDLY. CO-OPERATION

(UNITED PRESS ASSOCIATION—BY ELECTRIC

TELEGRAPH—COPYRIGHT.) (AUSTRALIAN PRESS ASSOCIATION.) Received May 18 10.20 a.m. SYDNEY, May 18. Information is now" available- in regard to the merger negotiations proceeding between the Eastern associated telegraph companies, the Marconi company and the .pacific Cable Board, for-united control of cable and wireless communication. The dominating interest will be held by the Eastern associated companies and there will be a new “holding” company which will have a capital of about £55,000,000. It is also reported that there will be a merger between Iviackay and the Western Union ’ interests in United States by the formation of the International Communications Company, which will have a capital of £55,000,coo.

The formation of these powerful holding companies is being brought about by the competition of the beam wireless stations and the working arrangement which is being formed between tlie Eastern associated companies and the United States companies will prevent any real competition in future. Briefly, it means the formation of two huge organisations administered under friendly co-opera-tion with a combined capital of £llO,GOO,IXJO to control, the international communications of the world.