American Telephone & Telegraph Co.has been trying to reach an 8% return on its invested capital for years,but it keeps getting cut off by a Washington operator: the Federal Communications Commission. Last week the FCC announced an annual $100 million reduction in long-distance telephone rates that will decrease A.T. & T.'s rate of return on interstate telephone operations from its present 7.9% to only 7% . A.T. & T.was obviously displeased. Chairman Frederick Kappel termed the reductions "out of step with the Government's efforts to encourage economic growth." But there is little doubt that subscribers will be happy to heed...
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