Evening star., 1943-09-28
Western Union-PostaI
National Merger Plan
Gets Fec Approval

ES the Associated Press.
The Federal Communications
Commission today approved mer-
ger of the Western Union and
Postal Telegraph companies in a
move designed to give the Nation
one vast telegraph system -
Western Union-that can oper-
ate efficiently and economically.
FCC's action climaxed years of
study by Congress and Government
agencies. Both wire companies sought
the merger after long and hotly-
waged business battle.
The approval order, last step
needed for the firms to be merged.
contemplates two-year integration
period for the far-fiung holdings of
each system.
The commission found that in this
case a monopoly would be a good
thing and would eliminate useless
paralleling' of facilities and opera
tions. 1t also would avoid "wasteful
expenditures of resources and man.
power" and on the whole would
protect "the interests of the public
The order was drawn by Chairman
James L. Fly, Commissioners Paul
A. Walker, Norman S. Case, T. A. M.
Craven and Ray c. Wakefield, with
Commissioner c. j. Durr dissenting.
Mr., Durr contended the public
interest will not be met" by the
combine and that the telegraph in
dustry would fail to keep in step
with telephone and air mail after
the war, because 1t would be without
the stimulus OF competition.
The financial conditions of the
two wire networks indicate a mer-
ger, the commission asserted. Postal
now is losing $7,000,0 900 a wear
Western Union showed a loss for
1888, and while its position has been
improved since by abnormal war
time business, "the return of nor
mai conditions may again result in
operating losses with a duplicate
system in the domestic telegram
industry" FEC said.
western Union has pledged to
absorb Postal's 10000 EMPLOYEES re-
tanning their seniority rights as if
they always had worked for the
merged company and, In addition
applying Western Unions pension
plan terms to them. Moreover the
order said, the wages of the ab-
sorbed workers are to be raised IN
the generally higher" levels of
Western Union.
The merger will furnish oppor-
tunities for solving one of the most
acute problems in the industry
the maintenance of an adeouate
and stable labor force" the report
declared.
All to Have Jobs.
Inadequacies in the labor force
have been responsible for excessive
overtime, increasing absenteeism
and decreased efficiency and pro-
ductivity."
FEC said that under the plans
agreed on there will be no need to
crop any of the combined so A00,
empieyes because of the merger D
Mr.. DUR, Ii, his dissent fo,Ind ~ *
fault with the merger, but contend
ed that the. proposed plan wolrld5
freeze into the telegraph, Industry
an the obsolescence of methods and
thinking which have long character
lied its operations.
The majority order also criticized
the methods of both companies. de-.
ciaring they had failed to speed sup
service and lower prices to meet the
competition OF the telephone and
airmail.
Asked to Improve Service.
FEC said Western Union will be
expected. after the merger is COM
pleted, to submit "a comprehensive
plan for converting its existing. fa-
cilities into a modern, efficient and
Nationwide communications system
capable of effectively competing with
other communications services"
Western Union was ordered to
diyest itself of it's international op-
erations, combining itself to domestic
trade and distributing it's interna-
tonal business to established car
riers now in that field. Western
Union now has cable links with the
Caribbean area. South America, the
West Indies, Canada, Newfoundland,
the British Isles and the Azores.