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                            Before the
               FEDERAL COMMUNICATIONS COMMISSION
                    Washington, D.C.  20554
                                

In the Matter of                                  )
                                             )
THE WESTERN UNION TELEGRAPH COMPANY,              )
                                             )
Complainant,                                      )
                                             )
                    v.                       )    File No. E-89-76
     
                                             )
SOUTHWESTERN BELL TELEPHONE COMPANY,         )
                                             )
Defendant.                                        )
                              

In the Matter of                                  )
                                             )
THE WESTERN UNION TELEGRAPH COMPANY,              )
                                             )
Complainant,                                      )
                                             )
                    v.                       )    File No. E-89-81
                                             )
PACIFIC BELL,                                )
                                             )    
Defendant.                                        )
                                             
     
                              ORDER

   Adopted:  February 24, 1999;   Released:  February 24, 1999

By the Chief, Formal Complaints and Investigations Branch, Enforcement Division, Common
Carrier Bureau:

     1.   On January 27, 1989, The Western Union Telegraph Company, now known as New Valley
Corporation ("Western Union"), filed the above-captioned formal complaints against Southwestern Bell
Telephone Company and Pacific Bell, collectively SBC Communications Inc. ("SBC" or defendants). Western
Union alleged that defendants' rates for voice grade channel termination in effect from January l, 1987 through
December 31, 1988 were unjust and unreasonable to the extent that they reflected costs related to voice grade
performance and facility interface equipment.   Western Union further alleged that defendants' rates for metallic
channel terminations for the same period also were unjust and unreasonable, in violation of Section 201(b) of
the Communications Act of 1934, as amended, 47 U.S.C.  201(b), to the extent that they reflected costs
associated with circuit equipment, station equipment, and large PBXs.   SBC denied liability to Western Union
for any overcharges.

     2.   On  February 23, 1999, Western Union filed a motion to dismiss the complaints with prejudice. 
In support of its motion, Western Union states that all claims in the actions against defendants have been
settled, with defendants admitting no liability.   Western Union further states that the parties have agreed that
their settlement shall not be construed as an admission by either party regarding the merits of the allegations
set forth in the complaints.

     3.   We are satisfied that dismissal of the complaints will serve the public interest by promoting
the private resolution of disputes and eliminating the need for further litigation and the expenditure of further
time and resources of the parties and of this Commission.

     4.   Accordingly, IT IS ORDERED, pursuant to Sections 4(i), 4(j), and 208 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 208, and the authority delegated under
Sections 0.91 and 0.291 of the Commission's rules, 47 C.F.R.  0.91, 0.291, that Western Union's motion
to dismiss these complaints with prejudice IS GRANTED.

     5.   IT IS FURTHER ORDERED that the above-captioned complaints are hereby DISMISSED
WITH PREJUDICE and that these proceedings ARE TERMINATED.


                              FEDERAL COMMUNICATIONS COMMISSION



                              
                              Alexander P. Starr                 
                                   Chief, Formal Complaints           
                                                and Investigations Branch  
               
                                                  Enforcement Division
                              Common Carrier Bureau