The Deal of the Century
Page 41
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