Evening star., 1939-11-17
Wire Firms Mercer
By Voluntary Plan
Seen Possible
Action Would Solve
Problem Of Continuing
Federal Inquiry
BY WILLIAM ]. WHEATLEY.

"AAAAhM y. "HEA1LE1.
Merger Of the Western Union and
Postal Telegraph companies by q
voluntary plan, even before the
pending Senate investigation gets
under way, may be effected as the
solution Of this communication
problem, it was learned today.
While the Federal Comnnlnica-
tions Commission, the Department
OF Justice, Commerce and Labor and
Senator Burton K. Wheelers Senate
Committee are working up the data
in preparation for the investigation,
Senator Wheeler and administrative
officials were represented as holding
out hope that a plan could be
worked out for joint action which
would result in a single wire line
company.
The most vexing problem in con-
nection with the proposed merger
plan is that of the resultant increas-
ing Of unemployment However, it
was said that plan is being sought
whereby at least half of the $4,000
employees of Postal might be ab-
sorbed by Western Union or any
new corporation which nigh result
from the merger.
Senator Wheeler has indicated
that he would not consider any plan
which does not have administration
approval. The Department of JUS
tice was working on a scheme to
merge the companies by a consent
decree, but this proposal was halted
when the Senate authorized its in.
vestigation of the merger.
Funds May Be Needed.
If it finally becomes necessary to
go ahead with the probe, it may be
necessary for the Senate to provide
funds with which to collect the data
for an effective merger plan. The
Senate committee has been provided
with only $1,000 thus far. For this
reason Senator Wheeler appealed to
the Government departments con-
cerned for aid in collecting material.
The Federal Communications
Commission, being the regulating
agency of the communications sys-
| TENS, has been selected to collect
and coordinate the data in its DOS.
session and in the files of other de.
partments. A special committee of
the commissioners and the staff Of
the commission has been meeting
this week on the matter. Out Of
these meetings may come a rough
draft of a plan for a voluntary
merger of the companies. 1t is
known that some of the members
of the commission are definitely
against any merger which might
saddle one company with the LA.
bilities of the other, with the result
that the merged unit would get of
to bad financial start.
Fly Heads Committee.
The F. c. C.'s Merger Committee
Is headed by Chairman James Law
renee Fly and consists of Commits
sioner Norman S. Case, William ].
Dempsey, general counsel; James
a. AAS4AAASoy, doo2SGdlIL dl COulls
sci; William j. Norfleet, chief &C.
countant, and Robert M. Cooper.
The latter has just been transferred
to the communications body from
the Department of Justice, where
he has handled litigation involving
the wire companies and where the
consent decree merger plan was
born.
Edward Cooper, attorney, who is
directing the preparation of plans
for Senator Wheeler's committee,
said that the Senator will be par
ticipating in railroad legislation
conference about December Is, after
which he probably will be free to
take up the wire merger. In the
interim plan acceptable to the
companies and the Government
may be devised.