UTILITIES: Up Wages, Up Rates

Like many another employer whose labor costs have gone up, Western Union Telegraph Co. sought relief in higher prices (TIME, April 1). Last week the Federal Communications Commission gave Western Union what it wanted: a 10% overall rate increase, and the elimination of special cheap message services. The increase, said FCC, was an “emergency measure” for one year to keep Western Union from operating at a deficit of $1,000,000 a month, caused chiefly by a 21% increase in wages. Despite the emergency, FCC refused to let Western Union do away with the 20% discount it now gives the U.S. Government.