COMMUNICATIONS COMBINE

Taranaki Daily News, 19 May 1928, Page 15

COMMUNICATIONS COMBINE

WIRELESS AND CABLE CONTROL. TWO HUGE COMPANIES PROPOSED. By Telegraph—Press Assn. —Copyright. Australian Press Association. Sydney, May 18. Information is now available in regard to the merger negotiations proceeding between the Eastern and Associated Telegraph Companies, the Marconi Company and the Pacific Cable Board for united control of cable and wireless communications. The dominating interest will be held by the Eastern and Associated Companies. 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 the Mackay and Western Union inte.ests in he United States by the formation of an International Commuications Company, which will have a capital of £55,000,000. 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 the Eastern and Associated Companies and the United States Companies wiil prevent any real competition in future. Briefly, it means the formation of two huge organisations administered under friendly co-operation with a combined capital' of £110,000,000 to control the international communication of the world.