, 1935-01-14
WASHINGTON
BY George Durno

recommend to Congress that legis-
lation be passed permitting the
Western Union and Postal Tele-
graph to merge. Domestic trans
mission services Of the same ma
ture which belong TO American
Telephone g. Telegraph and the
radio companies also would be in
Guided.
Two stumbling blocks appear in
the way Of such a combine.
First. the Communications .'om-
mission plans to suggest that 1t
have final say as to how the con-
solidation should be effected.
Secondly, Western Union isn't
ut all keen OF the idea.
Last year a merger bill went
through the House but was block
ed in the Senate by former SeDa-
tor Dill Of Washington. The mea-
sure was backed by international
Telephone g. Telegraph, which
controls Postal.
Western Union has been show
ing a profit-although its COMPETE
tors say it did SO by dipping into
the reserve-while !. T. & t. and
Postal have been running into the
red.
Company books show further
that II per cent of the operating
expense Of a telegraph company
goes into payrolls. The western
Union pays approximately 80 per
cent higher wages than Postal.
Should there be a merger, Western
Union would have TO take on Pos
tails employees at the prevailing w
u. rate or cut pay OF their own
workers to correspond with the
Postal scale. 1t is almost q certain
ty that any merger permitted oy
the government would Involve
maintaining all wage-earners IN
their jobs.
Assimilation The Communi-
cations Commission was supposed
TO make recommendations 10 con-
greSs on telegraph. radio and tele-
phone by February ]. More time
will be asked 70 look into the te-
.lephOne system.
This inquiry has the commission
all on edge. President Roosevelt
in his annual message to congress,
announced his intention OF vipliig
out the evil features OF hololhe
companies. A. r. e. +. is the lar
pest holding company in the world
Questionnaires we're sent Out 70
all the operating phone compailss'
Between them they spent about a
million dollars compiling the ans
wers-which arrived at the COM
missions offices in s or D pack
ing cases, and which WEAKENED
strong backs In course u delivery.
After this mas Of data has
been assimiIated FEC viii mold
open hearings. Chances are bright
that any evil features Of A. Il
& r. will be handled apart from
other holding compani s. The
phone company has oesucoup
stockholders.
OptionaI-Senator Burt Wheeler
of Montana. as chairman OF the
Senate Interstate Committee, plans
10 summon all members OF the
Communications Commission ana
INQUIRE into their fitness TO hold
office before recommending their
APPOINTMENTS be confirmed. One o.
the questions Wheeler plans 10
ask IS whether any Commissioner
holds stock in any telephone. te-
legraph or radio company. ne
probably will not turn up any
thing in this connection.
The Commission plans TO recon-
mend a status quo for BROADCAST
ing. There may be q supplemental
suggestion that the b~roadcasters
and the educational, religious n
labor organizations get together
voluntarily and agree on a SET
number Of hours for such pro-
rams over the air. 1t will not be
proposed as a mandatory PROPOSE
ton.
CorralIed ~ Senator Joe Guffey
of Pennsylvania has adopted the
old Boies Penrose idea OF IRON
handed rule-the difference being
only that Guffey Is controlling
Democrats.
The other day Pennsylvania rs
democratic congressman held q
caucus on a minor matter. During
the session Rep. Harry l.. Haines'
Of the 22nd District, produced q
petition for the appointment OF
Rep. william M. Berlin, OF the
18th district. on the all-powerful
Rules Committee Of the House.
Haines got 10 signatures.
Guffey heard about it and let
out an awful roar. Most Of the IL
congressman scrambled about 10
get their names removed from the
petition. Il was all a mistake.