The Waterbury Democrat., 1943-09-28

the past 19 years notwithstanding the developments which have taken place in the telegraph art" and de. clared that 12 more years will be devoted to integration of a system now conceded to be obsolete" He said no assurance was given that there would be any speed-up of to-. days highly unsatisfactory" Tele. graph service and added:
 Service to BOOkies
 The record is replete with evidence as to the extensive use being made of circuits, equipment and manpower for the operation and maintenance of service devoted to the dissemination of race.track information to 'bookies" as custom CTS of so-called publishing houses" :"
 The commission as c whole ex- pressed concern with "the failure of the management of Western Union to make specific plans for speed and price standards to meet compe- tition of the telephone and airmail,' ,' and warned that within one year 1t would expect Q comprehensive plan for conversion into "a modern, efficient nationwide communica- tions system capable of effectively competing with other communica- tions services"
 Under the merger, Western Union must also make plans to end the in- ternational phase of it's operations, which includes several transatlantic cables and others connecting with Central and South America, and re- port it's final program for this term. ination at the end of year.
 Book Value
 The $70,924, ,234 book value of Pos- tai will be added to the $324, ,l85 ,S08 book value of Western Union to make Q merged company worth $395 110,042 book value-the worth the concern places on itself.
 All the stock of both companies will be called in, and Western Union stockholders will get l,045, ,276 shares of class A stock of the merged company while former postal stock holders will get 306,125 shares of class B stock. Holders of class B stock may convert their shares into class A certificates after one rate at the rate of five shares of B for three of A. Voting power is at the same ratio of five to three.
 Postal employees are to receive the generally higher wages paid to Vest ern Union Workers and Western Union has given assurance that it will make every effort to retain all employees of both companies.
 Seniority Rights
 Seniority rights of workers are to be merged so that service records will be considered irrespective of former employer. and the Western Union pension plan will be applied to all former Postal employees.
 The EGG said Postal Telegraph now is operating at loss of approx imately $T.0O0,0O0 8 year, and has had to be financed with a total of almost SIS. .O00, 900 from the recon struction Finance Corporation so far. Western Union assumed this It. apility m the merger.
 Western Union estimated that it would make a profit before taxes of q, ,27o, 900 from the Postal facilities, and in addition would gain e2,lOO.- 900 annually by saving in the train ing of operators. and by the eiemin- ination of competitive practices and overtime pay.
 Steps in the consolidation will he: First the linking of all Western Un- ion and Postal offices in 60 large cities; second, elimination Of bos branch offices: third. contamination Of operations in main offices and the elimination of duplicate mas ehinery; finally, the consolidation of 65e duplicate offices.
 4 basic principle Of the plap is that there is to be no diminniion ol service to ans place presently served ey either company.
 Wilmington. Del, Sept. as-fUpl "A federal court action to enioin Postal Telegraph. Inc, from Is pro- posed merger BIth Western unian. was on ne today in dlsiFict court. 4 postal stoekholdeF charged dlss eFtmination against holders of pre- feFHed shares,
 sidney ooiaman, 0g Msw HnEk. holder ~ SO shares ~ postal HTes fe1Tnd. gafa ksa1 ha EnG enfiIiea io e1sh N41IfsI'a N'4 H|