Unchased Rainbow

Long has the Senate Interstate Commerce Committee considered the repeal of a law which commands that there must always be competition in the declining U. S. telegraph industry. Last January it got the opinion of the Federal Communications Commission: that Western Union and Postal Telegraph ought to merge, that there is not enough business to support both, especially Postal. The Senate did nothing.

Same month Postal came out of reorganization with a new capital structure, a new president (TIME, Feb. 12). Like all competent telegraph men, new President Chinlund was in favor of eventual merger too. "But," said he, "I don't believe in chasing rainbows." In his head were plans for mechanizing, cutting costs, more competition with Western Union.

Last week the merger rainbow, unchased by President Chinlund, unchased by the Senate, receded a little farther into the sky. RFC (with no objections from FCC) lent Postal $5,000,000, for seven years. Purpose: to help President Chinlund mechanize, cut costs, compete.

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