Talking Machine Merger

Depression teaches humility, softens pride. For many years the two great talking machine companies of the world have wanted to merge, time & again they have refused to make minor concessions. But last week Wall Street was glad to hear that the long-rumored deal had come to pass: shortly Columbia and His Master's Voice will belong to one company.

His Master's Voice is the voice of Radio Corp. of America, which in 1929 bought Victor Talking Machine Co. Victor Talking controls big Gramophone Co., Ltd. of England, a world-wide distributor of talking machines, records, radios.

Gramophone's big rival is Columbia Graphophone Co., Ltd. which assumed control of Columbia Phonograph Co. Inc. of America when that company was formed in 1924 out of the wreckage of Columbia Graphophone Manufacturing Co. Columbia Graphophone also does a world-wide business; not least among its subsidiaries are Nipponophone Co., Ltd. of Japan and France's Compagnie Generale des Machines Parlantes.

By last week's plan, shareholders of Gramophone and Columbia Graphophone will be given stock in a new holding company.* As a bonus they will be given stock in Columbia Phonograph Co. Inc. of America which henceforth will apparently shift for itself. Dominant stockholder in the new company will be Radio Corp. of America, holding 30%, of the holding company's stock.

*Avid for business, last week the New York Produce Exchange started trading in the stock of this new company on a "no name yet" basis. For convenience sake traders called the company "Columbia Graphophone & Gramophone."

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