The Deal of the Century

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by Coll, Steve;


  Southern Pacific v. AT&T and, 376–377

  see also U.S. v. AT&T; U.S. v. AT&T trial

  Appeals Court, U.S., 337

  AT&T, see American Telephone & Telegraph Company

  AT&T Technologies, Inc., 371–372

  N. W. Ayer, 314

  Aylward, David, 295

  Baker, Howard, 218

  Baker, James A., III, 212, 223–224, 226, 228, 242

  at cabinet council meeting (July 27), 245–246

  Baldrige, Malcolm, 185–186, 189, 211–222, 242

  background and personality of, 215–216

  dismissal proposal of, 216–228, 230, 232, 254–255

  Meese and, 216–218

  Senate Bill 898 and, 244–245

  Barrett, Bill, 113–114, 119

  Basking Ridge Presidents’ Conference (1982), 319–321

  Baxter, William F., 177–189, 213, 225–231, 239–253, 308, 344

  in aftermath of settlement, 349, 355–356, 362

  appointed to succeed Litvack, 177–179, 184–185

  Cabinet Council and, 219–222, 242–248

  conservatism of, 181–182, 185

  finesse strategy of, 243, 252, 255, 265

  Greene’s dismissal opinion and, 265–266

  IBM case and, 316–317

  inter-intra split and, 297–299, 303–305, 312, 315–323, 325, 330–334, 349, 358–359

  Levine compared to, 304

  at NERA conference, 239–241

  personality of, 182–183

  post-settlement career of, 377–378

  Quagmire II and, 252–253, 297, 298

  Senate Bill 898 and, 242–246, 252, 254, 280

  Trienens and, 184–186, 297–299, 303, 309

  Weinberger’s letter to, 187, 212

  Beard, Dita, 245

  Beckel, Robert, 354

  Bell Bill (Consumer Communications Reform Act; CCRA), 92–102, 240

  consequences of, 101–102

  provisions of, 92

  terminal equipment and, 109–111, 272

  Bell Laboratories, 9, 10, 12, 216, 288, 290, 372

  controversy over role of, 271–272

  inter-intra split and, 274, 320–321

  Penzias and, 286, 287

  bellwether approach, 142–144, 151

  bills, telephone, 366–367

  Biunno, Vincent, 298, 326, 336–340, 359

  “Black Friday,” 148

  Block, Edward:

  at Basking Ridge Presidents’ Conference, 319–321

  inter-intra split and, 291–293, 307–308, 313–316, 332, 333, 335, 347, 348

  Block, John, 211

  Blumenfeld, Jeff, 164, 180–181, 331, 377

  bond issue, 67, 70

  bottleneck monopoly, 55–56, 67, 316

  Brown, Ann, 103, 308

  Brown, Charles L., 344, 369

  aftermath of settlement and, 347–353, 356

  AT&T changes under, 135–136

  background and personality of, 103–104

  at Basking Ridge Presidents’ Conference, 319–321

  Baxter and, 184–186

  Block’s meetings with, 291–293

  as blue team head, 103–104, 109–112, 135–137

  at board of directors’ meetings, 299–302

  Crimson Sky and, 173, 177, 178

  deButts compared to, 103–104

  as deButts’ successor, 112

  decision continuum of, 293

  Greene’s dismissal opinion and, 266, 267

  Hugel promoted by, 271

  inter-intra split and, 268–270, 274, 275, 279–280, 292–293, 296–302, 307–308, 309, 311, 312–313, 319–322, 325, 327, 330, 332–334

  at Key Largo Presidents’ Conference, 14, 103, 301

  leadership style of, 135, 277–278

  Ma Bell moniker hated by, 123

  Meese and, 211

  new realism of, 135–137, 140, 144, 145, 160

  as president of Illinois Bell, 14, 103, 121

  quick solution to U.S. vs. AT&T sought by, 122, 129, 136, 140, 144, 173, 212

  Reagan administration and, 212–213, 223–225

  salary of, 356

  Senate Bill 898 and, 261–262, 280, 294

  testimony of, 301–302

  Trienens and, 140, 144, 145, 147–149, 195

  at U.S. v. AT&T trial, 163, 301–302

  Wirth report and, 294–295

  Brownell, Herbert, Jr., 58–59

  Buchsbaum, Saul, 286

  Bush, George, 222, 224

  Business Week, 194

  Cabinet Council on Commerce and Trade, 217–223, 242–248

  California Public Utility Commission, 352

  capital contribution plan, 19–20

  Carr, Ronald, 253, 265–266, 336–340, 357, 377

  inter-intra split and, 303–306, 308, 309, 312, 315, 317–320, 322–323, 325–327, 358–359

  Carter, Jimmy, 127, 128, 145, 148, 186

  Carter administration, Commerce department in, 215

  Carterfone, 10–11, 44, 92, 104–105, 136

  North Carolina’s challenging of, 259

  Casey, Tom, 113–114, 119

  CCRA (Consumer Communications Reform Act), see Bell Bill

  Chesapeake & Potomac Telephone Co. of Virginia, 9

  Cincinnati Bell Telephone Co., 143, 144, 150, 151, 174, 270

  Civiletti, Benjamin, 146

  civil rights, 53, 125–128

  Clark, Ramsey, 126

  Clayton, Henry, 30–31

  Clayton Act (1914), 30, 151–152

  Clearwaters, Keith, 60–61, 65–70

  Commerce department, U.S., 211–228

  in Carter administration, 215

  inter-intra split and, 322

  National Telecommunications and Information Agency of, 141, 212–216

  Senate Bill 898 and, 243–246

  common carrier principle, 41

  Communications Act (1934), 28, 149, 225

  Communications Workers of America, 90

  competition, 10–15, 30

  AT&T disadvantages in, 107–108, 122

  Baxter’s views on, 182

  Brown’s views on, 277

  Carterfone decision and, 10–11, 44, 92, 104–105, 136, 259

  deButts’ views on, 34, 41–44, 85, 89–90, 96, 105–111, 122, 169, 170, 272, 273–274

  intercity services, 11–15, 22–24, 89–90, 264; see also MCI

  public opinion and, 79

  Strassburg’s views on, 46

  terminal equipment, 10–11, 15, 23–24, 104–111, 122, 135–136, 144, 169–170, 272, 288–290

  Computer Inquiry II, 294

  computers, 105, 144, 326, 327

  AT&T’s entry into, 372

  1956 consent decree and, 59, 60, 293–294

  Congress, U.S., 126, 315, 347–356

  AT&T lobbying of, 93–102, 110–111

  Bell Bill and, 93–100, 109–111

  corporate lobbying strategies in, 94–95

  deregulation trend in, 95–96

  Execunet and, 90–91

  MCI lobbying of, 28–35, 152, 370–371

  telephone regulatory functions of, 28

  Wunder in, 214, 216

  see also House of Representatives, U.S.; Senate, U.S.

  Connell, Gerald, 161–174, 189–203, 231–238, 241, 336

  Anderson compared to, 162–163

  background and personality of, 162

  Baxter and, 180–181

  at consent decree signing ceremony, 324–326

  continuance request and, 248–249

  cross-examination strategy of, 286–287

  inter-intra split and, 322–323, 324–326, 328, 330–331, 340–344

  McGowan’s testimony and, 200–203

  opening arguments of, 163–166

  Quagmire II and, 256

  retirement from government service of, 324–325, 377

  Saunders compared to, 162, 165, 167, 194, 195, 196, 262

  Saunders’ witness
list and, 282–284

  self-effacing style of, 190–191

  consent decree (1956), 77, 142, 149, 298, 327, 337–340

  computers and, 59, 60, 293–294

  consultants, telecommunications, 365

  Consumer Communications Reform Act (CCRA), see Bell Bill

  “consumer revolution,” 31

  consumers, effects of AT&T breakup on, 366–368

  Cook, George, 23, 25, 26

  copper wire technology, 12

  Court of General Sessions (District of Columbia), 126–127

  Cox, Archibald, 61

  Cox, Kenneth, 29, 48, 51, 205, 207

  Verveer’s conversations with, 55–56

  Crimson Sky (Justice-AT&T negotiations), 152–158, 164, 166, 171–179

  collapse of, 177–179, 184, 185

  revision of, 174–175

  crown jewel divestiture, 142–144, 151

  CSSA service, 47, 203, 207

  customer premises equipment, see terminal equipment

  Darman, Richard, 223–224

  DCA (Defense Communications Agency), 186–187, 322

  Deaver, Michael, 223–224

  deButts, John Dulany, 6–15, 70–71, 92–112, 170–171, 267

  AT&T accomplishments of, 111

  AT&T breakup and, 378–380

  background and personality of, 9

  Bell Bill and, 92–102

  Brown compared to, 103–104

  competition as viewed by, 34, 41–44, 85, 89–90, 96, 105–111, 122, 169, 170, 272, 273–274

  “decision to decide” of, 39–43, 193

  FX lines and, 24, 49–52, 90

  Hi/Lo pricing announced by, 22

  at Key Largo meeting, 6–15, 39

  McGowan’s meeting with, 21–27, 49–50, 368

  political agenda of, 90–100

  retirement of, 103, 111–112, 135, 378

  Saunders and, 77, 78

  Strassburg and, 43–44, 46–47, 48, 52

  testimony of, 262

  U.S. v. AT&T and, 77, 262

  deButts, Trudie, 378

  DeCair, Tom, 334

  “December 21st draft,” see “Modification of Final Judgment”

  Defense Communications Agency (DCA), 186–187, 322

  Defense department, U.S., 186–187, 217–219, 226

  Denvir, Jim, 164, 172–174, 176, 177, 331, 337, 377

  Baxter and, 180–181

  as Connell’s successor, 324–325

  deregulation, national trend toward, 95–96

  Dewey, Ballantine, Bushby, Palmer & Wood, 77

  divestiture, 288

  Baxter’s views on, 240–241, 252

  crown jewel, 142–144, 151

  Greene and, 278, 279

  price effects of, 349–351

  punitive, 289

  Robinson plan for, 141–144, 150–151

  see also inter-intra split

  Eisenhower, Dwight D., 58

  Reagan compared to, 230–231

  electronic publishing, 360–361

  Energy Department, U.S., 218

  Ervin, Sam, 64

  “essential facilities” doctrine, 20–21

  Exchange Network Facilities for Interstate Access (ENFIA) agreement, 275–276, 369–370

  Execunet, 83–91, 93, 96, 109, 129, 203, 276

  FCC and, 83–90, 95

  in Saunders’ opening argument, 169–170

  Favretto, Richard, 176

  Federal Communications Commission (FCC), 10–14, 24, 371

  AT&T breakup and, 373, 374

  Carterfone decision of, 10–11, 44, 92, 104–105, 136, 259

  Common Carrier Bureau of, 44–48, 50–52, 83–85, 87–89, 193, 215

  Computer Inquiry II at, 294

  deButts’ criticism of, 42, 44, 48

  Execunet controversy and, 83–90, 95

  FX controversy and, 47–52

  MCI and, 12, 13, 17–19, 48–52

  MCI antitrust suit and, 21, 28–29

  MCI created by, 11, 19, 25, 38, 78, 89

  Specialized Common Carriers of, 50, 205–206

  state regulators’ rivalry with, 41, 258–260

  telephone network regulated by, 28, 37, 78

  U.S. v. AT&T and, 78–82

  Western Electric investigated by, 60

  Federal Emergency Management Agency, 218

  Federal Rules of Civil Procedure, 130

  Fielding, Fred, 322

  First Amendment, 361

  Fitch, Luin, 152, 174

  Flexner, Don, 139, 145

  Ford, Gerald, 61, 64, 65, 71

  Fox, John, 110

  FX service, 24, 47–52, 83, 88, 129, 193, 203, 207, 276

  description of, 48–49

  Hinchman’s views on, 83–84

  in Saunders’ opening argument, 169–170

  Garlinghouse, Mark, 65–68, 70, 77, 136–137, 140

  in MCI-AT&T negotiations, 19–20

  Strassburg and, 48

  Geller, Henry, 215

  Gergen, David, 223–224, 245

  Gifford, Walter, 40, 41

  Goeken, Jack, 20, 21, 204

  Goldwater, Barry, 353

  Grady, Judge, 206–207

  Greene, Harold H., 123–131, 136, 153–160

  Anderson and, 129, 130–131

  AT&T reorganization plan and, 362–363

  background of, 124–127, 216, 260

  celebrity witnesses and, 282–287, 312

  continuance request and, 246–251, 256

  Crimson Sky and, 153–158, 172–173, 177

  cross-examination by, 258–260, 288

  dismissal proposals and, 232–234, 262, 263–264

  inter-intra split and, 325, 326–330, 336–344

  as “liberal activist judge,” 127–128, 216, 240

  “lodged” strategy of, 328–330

  opinion on motion to dismiss of, 262–265, 290

  Richey compared to, 376, 377

  Robinson’s criticism of, 363

  Saunders and, 128–131, 171, 179, 216, 232–233, 235, 237, 240, 256–260, 277, 282–290, 340–344

  Saunders’ challenge to, 264–265, 266

  Saunders’ witness list and, 282–285, 312

  Tunney Act proceedings and, 356, 358–364

  U.S. v. AT&T settlement and, 356–364

  U.S. v. AT&T trial and, 139, 149, 155–159, 163–174, 190–210, 216, 231–238, 246–251, 256–265, 278–279, 282–290, 300

  Wooten testimony and, 258–260

  Greenwood, Bill, 335

  Haig, Alexander, 64, 283

  Harris, Larry, 232

  in MCI-AT&T negotiations, 19–20, 36–39

  Verveer’s conversations with, 55–56

  Harris, Lou, 307, 367

  Hart, Philip A., 29–35, 42, 60

  Hart-Scott-Rodino antitrust law, 30

  Heig, Frederick, 285

  Hellerman, Gerald, 34

  Hershey, Loren, 317–320

  Hi/Lo pricing, 22–24

  Hilsman, William J., 186

  Hinchman, Walter, 83–85, 89, 144, 365, 373

  Hooks, Benjamin, 285, 287

  Hough, Richard, 11, 12

  House of Representatives, U.S., 93, 110, 352

  Antitrust Subcommittee of, 59

  Commerce Committee of, 354

  Communications Subcommittee of, 97–99, 101, 102, 149

  Judiciary Committee of, 128

  Telecommunications Subcommittee of, 261–262

  H.R. 5158, 353–354, 356

  Hugel, Charles, 352–353

  Bell Labs as viewed by, 271–272

  blackboard of, 268–273, 281, 295

  promotion of, 271

  IBM, 108

  Baxter’s connection to, 377–378

  Justice suit against, 116, 117, 128, 131, 316–317, 334

  MCI’s strategic alliance with, 371

  Illinois Bell Telephone Co., 9, 14, 142

  Industrial Reorganization Act, 30–32

  intercity s
ervices, competition of, 11–15, 22–24, 89–90, 264; see also MCI

  interconnection agreements:

  Crimson Sky and, 176–177

  ENFIA, 275–276, 369–370

  MCI-AT&T interim, 36–39

  U.S. v. AT&T and, 150–151

  inter-intra split, 268–281, 292–293, 296–344

  aftermath of, 347–380

  announcement of, 329–335

  AT&T board of directors and, 300–302

  Block’s publicity campaign and, 291–293, 307–308, 313–316, 332, 333, 335, 347, 348

  compromise in, 315–316

  Congress and, 347–356

  deButts’ views on, 378–380

  economics of, 270, 273–274

  future views of, 365

  Harris poll on, 308

  “lodging” of document in, 328–330

  national security and, 271–272

  origin and description of, 269–270

  settlement decree of, see

  “Modification of Final Judgment”; “Modified Final Judgment”

  Tunney Act proceedings and, 356, 358–364

  Jackson, C. W., 36–39

  Japan, 216

  as competitor of Western Electric, 111, 122, 289

  Jenner & Block, 194, 202

  Joint Chiefs of Staff, 187

  Jones, James K., 31

  Joskow, Jules, 239–241

  judges, motions, 329–330

  Justice department, U.S., 54–82

  Antitrust division of, 21, 30, 54–62, 65–71, 73–82; see also U.S. v. AT&T; U.S. v. AT&T trial

  Civil Rights division of, 53, 125–127

  Clearwaters’ investigation in, 60–61, 65–70

  generational clash in, 54

  IBM suit of, 116, 117, 128, 131, 316–317, 334

  Office of Professional Responsibility of, 378

  Relief Task Force in, 139, 145, 151, 176

  Verveer investigation in, 56, 59–61, 67, 79, 113–114, 117, 192

  Kauper, Thomas, 59–61, 65–70, 77

  Kennedy, Edward M., 31

  Kennedy, John F., 168

  Kennedy, Robert F., 125–126, 127, 167

  Kenney, Peter, 140–141, 164, 172–174, 200, 231, 253, 331, 377

  Baxter and, 180–181

  Verveer compared to, 140

  Key Largo Presidents’ Conference (1972), 5–15, 22, 39, 103, 192, 301

  Kilpatric, Jim, 172, 174, 262, 306, 325

  King, Martin Luther, 126

  Kingsbury Commitment, 58

  Kissinger, Henry, 64

  Kristol, Irving, 373, 374

  Kroll, Leon, 68

  Levine, Richard, 253, 365

  inter-intra split and, 304–306, 312, 315–317, 322, 325, 330

  Levy, Harold, 119–122

  Litton Industries, 131, 236

  Litvack, Sanford, 145–158, 269

  Anderson’s successor chosen by, 162–163

  Crimson Sky and, 152–158, 173–179, 185

  litigation experience of, 183

  in return to private practice, 175, 178–179

 

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