TWO GREAT GROUPS WILL CONTROL COMMUNICATIONS

Star (Christchurch), Issue 18466, 18 May 1928, Page 1

TWO GREAT GROUPS WILL CONTROL COMMUNICATIONS

RADIO-CABLE MERGER POOLS £110,000,000. (United Press Assn.—By Electric Telegraph. —Copyright.) (Received May 18, 9.30 a.m.) SDNEY, 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 the united control of cable and wireless communications. The dominating interest will be held by the Eastern Associated Companies. There will be a new “ holding ” company which will have a capital of about £55,000,000. It also is reported that there will be a merger between the Mackay and the Western Union interests in*the United States by the formation of an international communications 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 a working agreement, which is being formed between the 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-operation with a combined capital of £110,000.000, to control the international communications of the world.—Australian Press Association.