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Guide to the United States of America v. American Telephone & Telegraph, et al : legal documents, 1974-1982
Special Collections Mss Codex M0396  
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Table of contents What's This?

Table of Contents

Volume I

1974-1982 May 21

 

1974

 

Tab No. 1. Complaint Nov. 20

 

1975

 

Tab No. 2. Answer Feb. 4

 

Tab No. 3. Pretrial Order 2 of Judge J. C. Waddy ordering parties to brief jurisdictional issue Feb. 27

 

Tab No. 4. Pretrial Order 3 of Judge Waddy ordering parties to stay all discovery Feb. 27

 

1976

 

Tab No. 5. Memorandum opinion and order of Judge Waddy ruling that the court has jurisdiction of at least some aspects of the case Nov. 24

 

1977

 

Tab No. 6. Letter from Office of the Clerk of the United States Supreme Court to Harold S. Levy, Esq. of AT&T advising that the Supreme Court had denied defendants' petition for a writ of certiorari Jan. 25

 

1978

 

Tab No. 7. Order of Judge H. L. Greene advising that the case has been assigned to him and directing parties to file memoranda concerning the status and procedural posture of the case July 6

 

Tab No. 8. Opinion of Judge Greene concluding that the court has jurisdiction, setting up a procedure for discovery using statements of contention and proof as a vehicle to narrow and specify the issues in dispute, and resolving certain discovery disputes Sept. 11

 

Tab No. 9. Pretrial Order 12 ordering a schedule and procedure for discovery and other pretrial proceedings Sept. 11

 

1980

 

Tab No. 10. Pretrial Order 18 setting forth ground rules for the stipulation process and other pretrial matters and providing for written testimony Mar. 17

 

1981

 

Tab No. 11. Opinion of Judge V. P. Biunno construing the 1956 Final Judgment to permit AT&T to offer detariffed CPE and enhanced services through a fully-separated subsidiary, in compliance with the orders of the Federal Communications Commission in its Computer Inquiry II docket Sept. 3

 

Tab No. 12. Opinion denying defendants' motion to dismiss the complaint at close of the Government's case in chief but striking certain pricing and market contentions Sept. 11

 

1982

 

Tab No. 13. Stipulation of parties to proposed Modification of 1956 Final Judgment Jan. 8

 

Tab No. 14. Modification of 1956 Final Judgment as proposed by the parties Jan. 8

 

Tab No. 15. Plaintiff's motion to transfer the 1949 New Jersey suit to the District of Columbia Jan. 8

 

Tab No. 16. Defendants' notice that they join in plaintiff's motion for transfer Jan. 8

 

Tab No. 17. Stipulation of the parties for voluntary dismissal of the 1974 suit Jan. 8

 

Tab No. 18. Order by Judge Greene that the stipulation to dismiss the 1974 suit be lodged with the Clerk of the Court, and setting a hearing Jan. 8

 

Tab No. 19. Opinion of Judge Biunno entering the modified 1956 Final Judgment and withholding decision whether to transfer the cause to the District of Columbia Jan. 11

 

Tab No. 20. Transcript of hearing before Judge Greene Jan. 12

 

Tab No. 21. Judge Biunno's order transferring certain proceedings to the District of Columbia Jan. 14

 

Tab No. 22. Defendants' letter to Judge Greene requesting the court to conduct proceedings in keeping with the Tunney Act Jan. 18

 

Tab No. 23. Plaintiff's letter to Judge Greene indicating its desire that Tunney Act proceedings be conducted by the court Jan. 18

 

Tab No. 24. Judge Biunno's supplemental opinion setting forth conditions of transfer of the New Jersey cause to the District of Columbia Jan. 20

 

Tab No. 25. Judge Greene's order vacating Judge Biunno's entry of the Modification of the 1956 Final Judgment and setting forth procedures to be followed to determine if the Modified Final Judgment is in the public interest Jan. 21

 

Tab No. 26. Order of U.S. Court of Appeals (Third Circuit) dismissing as moot appeals from the New Jersey District Court's interpretation of the 1956 Final Judgment and ordering vacation of Judge Biunno's September 3, 1981 opinion construing the Final Judgment Feb. 2

 

Tab No. 27. Defendants' description of written or oral communications among the parties concerning the Modification of Final Judgment Feb. 5

 

Tab No. 28. Plaintiff's competitive impact statement Feb. 10

 

Tab No. 29. Brief of Federal Communications Commission as Amicus Curiae on proposed Modification of Final Judgment Apr. 20

 

Tab No. 30. Judge Greene's order granting extension of time for the plaintiff to file its comments and relief from publication requirements May 5

 

Tab No. 31. Public interest comments of plaintiff on proposed Modification of Final Judgment May 20

 

Tab No. 32. Public interest comments of defendants on proposed Modification of Final Judgment May 21

Volume II

1982 May 25 - Aug. 24

 

Tab No. 33. Judge Greene's memorandum setting up procedures for briefing and hearings relating to eight specific issues of concern to him in the public interest proceeding May 25

 

Tab No. 34. Defendants' brief in response to the court's May 25th memorandum June 14

 

Tab No. 35. Plaintiff's brief in response to the court's May 25th memorandum June 14

 

Tab No. 36. Judge Greene's memorandum scheduling the order of argument of the issues identified in his May 25th memorandum June 17

 

Tab No. 37. Reply brief of defendants June 24

 

Tab No. 38. Reply brief of plaintiff June 24

 

Tab No. 39. Judge Greene's opinion indicating that the proposed Decree would be approved by the court, provided that the parties agree to certain amendments Aug. 11

 

Tab No. 40. Plaintiff's memorandum consenting to amendments to the proposed Decree required by Judge Greene, but respectfully urging the court to consider modifying one of the required amendments Aug. 19

 

Tab No. 41. Defendants' reply memorandum consenting to the amendments to the proposed Decree required by Judge Greene Aug. 19

 

Tab No. 42. Memorandum of Judge Greene denying plaintiff's request that the court consider modifying one of the court's required amendments Aug. 23

 

Tab No. 43. Stipulation of the parties consenting to entry of Modification of Final Judgment and attached revised Modification of Final Judgment as entered by the court Aug. 24

 

Tab No. 44. Memorandum of plaintiff concerning its decision to accept the revised Decree Aug. 24

 

Tab No. 45. Order of Judge Greene that stipulation of dismissal previously lodged with Clerk be filed, and dismissing the 1974 case Aug. 24

SELECTED TESTIMONY

 

ISSUE: MARKET ANALYSIS

Scope and Content Note

This testimony concerned the nature, size and scope of the market for telecommunications equipment and the absence of monopoly power on the part of Western Electric. It showed that the Government's equipment market definitions and market share data were unsound, that telecommunications equipment is part of a broader information equipment market which is international in scope, and that this market is characterized by vigorous competition, low barriers to entry, substantial and successful new entry and growth, and declining market shares of Western.
NO., SUBJECT, NAME & TITLE AT TIME OF TESTIMONY, TRANSCRIPT PAGES OF RELATED ORAL TESTIMONY
 

1. Western Market Share Data

Scope and Content Note

Dale Jones
Western Electric
Director, Corporate Analysis
24853-82
 

2. Domestic Telecommunications Equipment Competition; Converging Technology

Scope and Content Note

John M. Nemecek
Western Electric
Executive Vice President, Corporate Staff, Government & Commercial Sales
 

3. Competition from Foreign-based Firms

Scope and Content Note

Hugo T. Ruberg
Western Electric
Vice President, Material & Account Management
 

4. Converging Technology; Common Use of Semiconductor Devices

Scope and Content Note

Ronald R. Ruebusch
Advanced Micro Devices, Inc.
Manager, Telecommunications Marketing
 

5. Progressive Integration of Communications and Data Processing

Scope and Content Note

Carl D. Southard
Carl D. Southard Associates
President
 

6. Converging Technology; Standardization of Manufacturing Processes, Machinery & Components

Scope and Content Note

Hobart A. Weaver
Western Electric
Director of Engineering, North Carolina Works
 

7. Equipment Market Definition and Market Power Issues

Scope and Content Note

J. Fred Weston
UCLA Graduate
School of Management Professor of Business Economics & Finance
24226-75
 

ISSUE: INTERCITY SERVICES

Scope and Content Note

Western's Vice President and General Counsel, formerly AT&T's Vice President, State Regulatory Matters, described AT&T's negotiations during 1973-1976 on terms and conditions under which facilities would be provided to other common carriers including Western Union, the specialized common carriers and the domestic satellite carriers. His testimony established that AT&T negotiated in good faith and with the objective of obtaining reasonable, nondiscriminatory and compensatory rates for the lease of Bell facilities, and not for the purpose of preventing or inhibiting competition from other carriers.
 

8. Intercity Services

Scope and Content Note

George V. Cook
Western Electric
Vice President and General Counsel
20661-759
 

ISSUE: PROCUREMENT

Scope and Content Note

The Government alleged that general trade suppliers were prevented or inhibited from selling their products to the Bell System by a variety of anticompetitive practices by Bell affecting the development, marketing and procurement of telecommunications equipment, thereby creating and maintaining a monopoly for Western in the supply of equipment to the Bell operating companies. The Government sought to prove its procurement case by certain alleged general practices and by numerous discrete episodes in which it claimed that Bell operating companies purchased particular Western equipment and declined to purchase, or purchased only temporarily, general trade equipment which purportedly was better and lower priced than the Western equipment. The following witnesses testified concerning a number of these alleged general practices and episodes, establishing that the Government's perception of the matters addressed was incorrect, that the development, marketing and procurement of the Western products in question reflected no anticompetitive intent or unreasonable bias and did not have the consequences alleged by the Government, and that the actions of the Bell System were reasonable in the particular circumstances presented.
 

9. PBX

Scope and Content Note

Guy Accettura
Western Electric
Senior Executive Vice President
15024-62
 

10. Line Cards

Scope and Content Note

Harry J. Christensen
New York Telephone Co.
Supervising Engineer, Technical Assistance, Stations
14700-18
 

11. 5A CDO

Scope and Content Note

Robert P. Clagett
Western Electric
General Manager, Research & Development
15293-337
 

12. Line Cards

Scope and Content Note

William F. Cronan
Southern New England
Telephone Company Manager, Installation and Repair
14675-85
 

13. Digital Carrier

Scope and Content Note

William R. Day
New York Telephone Co.
Division Staff Manager, Capital Program
15736-58
 

14. 5A CDO; No. 3 Crossbar

Scope and Content Note

Randall W. Downing
Bell Telephone
Laboratories, Inc. Director-Suburban, Rural & Common Development Laboratory
15426-42
 

15. 5A CDO

Scope and Content Note

Jack D. Elliott
Northwestern Bell
Division Staff Manager - Retired
15365-95
 

16. Intellectual Property Matters

Scope and Content Note

Paul M. Enlow
AT&T, General Patent Attorney
17556-73
 

17. No. 3 Crossbar

Scope and Content Note

Robert W. Folker
Northwestern Bell
Staff Manager-EDP Mechanization Planning
15396-413
 

18. 5A CDO

Scope and Content Note

Edward Goldstein
AT&T, Assistant
Financial Officer
15186-240
 

19. Line Cards

Scope and Content Note

Patrick H. Gorman
Bell Telephone
Laboratories, Inc. Supervisor, Special Communications Group
14606-76
 

20. Long Haul Microwave

Scope and Content Note

John T. Holland
Pacific Northwest Bell
Staff Engineer
15911-49
 

21. Digital Carrier Equipment

Scope and Content Note

Edward R. Inghrim
AT&T, Assistant
Engineering Manager
16485-545
 

22. Analog Microwave Equipment; 5A CDO; Digital Carrier

Scope and Content Note

Wayland H. Lanning
Mountain States Telephone and Telegraph Company
Assistant Vice President Network Engineering
15785-812
 

23. Data Modems

Scope and Content Note

Leslie M. Munford
Western Electric
Director of Sales, National Accounts and AT&T Long Lines
14803-41
 

24. Purchasing

Scope and Content Note

John L. O'Marra
Teletype Corporation
Vice President & General Manager
12250-69; 12493-538
 

25. Transfer Keys

Scope and Content Note

Merton B. Purvis
Bell Telephone
Laboratories, Inc. Department Head, Electromechanical Components
14538-602
 

26. Line Cards

Scope and Content Note

John A. Rauzon
Pacific Telephone &
Telegraph Company Purchasing Manager, General Trade Products
15964-87
 

27. Equipment Procurement; PBX

Scope and Content Note

Gordon T. Ray
New York Telephone Co.
Assistant Vice President-Network Data Systems & Engineering Support
15084-103
 

28. 5A CDO

Scope and Content Note

John F. Rettig
Bell Telephone
Laboratories, Inc. Supervisor-Automatic Billing Systems
15345-64
 

29. Information Flow to BOCs

Scope and Content Note

Claude B. Sharp
AT&T, Assistant Vice
President, Network Services
17600-42
 

30. Interface Specifications; Information Flow to USITA

Scope and Content Note

Casimir S. Skrzypczak
AT&T, Director-Fundamental
Network Planning
17649-86
 

31. PBX

Scope and Content Note

Stanley G. Student
Western Electric
Director, Network Services, Material & Account Management Division
15062-80
 

32. Transfer Keys

Scope and Content Note

Robert A. Swanson
AT&T, District Manager,
Depreciation & Economic Analysis
 

33. 5A CDO

Scope and Content Note

Timothy J. Twomey
New England Telephone & Telegraph Company
Division Manager, Network Planning
15413-26
 

34. ACD; EADAS; ESS

Scope and Content Note

Frank S. Vigilante
AT&T, Assistant Vice
President, Business Marketing
 

35. 5A CDO; No. 3 Crossbar

Scope and Content Note

Frank E. Wollensack
Southern New England
Telephone Company General Manager, Operations Plans
15247-92
Volume VOLUME I

ISSUE: STRUCTURE AND PERFORMANCE

Scope and Content Note

The imperatives underlying Bell System structure, Bell System performance and the adverse consequences of divestiture were established by looking at those matter from every available perspective.
A. Bell System executives described the structure of the Bell System, the reasons for that structure, the roles of the various Bell System units, the Bell System's performance and the adverse consequences of divestiture.
No.
TRANSCRIPT PAGES OF RELATED ORAL TESTIMONY
 

AT&T

 

36. Morris Tanenbaum Executive Vice President

Scope and Content Note

14168-324
 

37. Irwin Dorros Assistant Vice President, Network Planning

Scope and Content Note

21574-659
 

38. Casimir S. Skrzypczak Director-Fundamental Network Planning

Scope and Content Note

23798-908
 

BELL TELEPHONE LABORATORIES, INC.

 

39. Ian Ross President

Scope and Content Note

11412-562
 

40. Solomon J. Buchsbaum Executive Vice President

Scope and Content Note

15995-16061
 

41. Arno Penzias Executive Director-Research

Scope and Content Note

16129-51
 

WESTERN ELECTRIC

 

42. Donald E. Procknow President

Scope and Content Note

16061-94
 

43. Eugene J. Eckel Vice President, Manufacturing-Electronic Components

Scope and Content Note

16176-98
 

44. John T. O'Neill Vice President, Bell Sales

Scope and Content Note

16198-235
 

45. Robert P. Clagett General Manager, Research and Development

Scope and Content Note

16158-75
 

46. Henry S. Pino General Manager, Corporate Analysis

Scope and Content Note

17925-41
 

47. Frederick J. Cofer Director, Corporate Analysis

Scope and Content Note

16357-417
 

BELL OPERATING COMPANIES

 

48. William Mobraaten President Bell Telephone Company of Pennsylvania

Scope and Content Note

14325-401
Volume VOLUME II

 

B. Expert witnesses described studies of the Bell System innovation process and the productivity and efficiency of Bell and Western.

 

49. Malcolm Schwartz Booz Allen & Hamilton Vice President

Scope and Content Note

18750-929
 

50. John W. Kendrick George Washington University Professor of Economics

Scope and Content Note

16310-56
 

51. Laurits R. Christensen University of Wisconsin Professor of Economics

Scope and Content Note

19349-97
 

52. William F. Pounds Massachusetts Institute of Technology Professor of Management and Former Dean

Scope and Content Note

16447-76
 

53. Pat A. Loconto Touche Ross & Co. Principal

Scope and Content Note

16280-309
 

C. Leaders of industrial research and development testified about the importance of Bell System integration to the progress of technology and United States technological strength.

 

54. Pierre R. Aigrain Thomas-Brandt & Thomson CSF General Manager, Science & Technology

Scope and Content Note

23917-46
 

55. Edward E. David, Jr. Exxon Research & Engineering Co. President

Scope and Content Note

19098-206
 

56. David Packard Hewlett-Packard Co. Chairman of the Board

Scope and Content Note

19616-45
 

57. Simon Ramo Former Vice Chairman of Board of TRW

 

58. Arthur L. Schawlow Stanford University Professor of Physics

 

59. Charles H. Townes University of California Professor of Physics

 

D. The benefits of Bell's integrated structure were established by comparisons with other arrangements.

 

National Institutes of Health

 

60. Paul R. Lawrence Harvard Graduate School of Business Professor of Organizational Behavior

Scope and Content Note

19552-615
 

Defense Department Procurement

 

61. Austin W. Betts Retired Lt. General, U.S. Army

Scope and Content Note

19048-85
 

Electric Utility Industry

 

62. Bruce C. Netschert National Economic Research Associates Vice President

Scope and Content Note

20401-23
 

63. Joseph C. Swidler Former Chairman of Federal Power Commission and New York State Public Service Commission

Scope and Content Note

19512-28; 19653-59
 

Air Transportation/Aircraft Industries

 

64. Nathan Rosenberg Stanford University Professor of Economics

Scope and Content Note

19970-20015
 

Foreign Telecommunications Systems

 

65. Carlo Cerutti STET (Italian Telephone Holding Company) Vice Chairman of the Board

Scope and Content Note

23768-89
 

66. Jean de Grandpre Bell Canada Chairman and Chief Executive Officer

Scope and Content Note

24800-26
 

67. Torsten A. Larsson Swedish Telecommunications Administration Deputy Director General

Scope and Content Note

23741-56
 

68. Juan M. Rebollo Castrillo CTNE (Spanish National Telephone Company) Director General

 

69. Sir William Ryland British Post Office Retired Chairman & Chief Executive

Volume VOLUME III

 

E. An expert testified regarding his study of the business history of AT&T.

 

70. James P. Baughman Former Harvard University Professor of Business Administration

Scope and Content Note

23545-601
 

F. Leading economic experts described the economic imperatives underlying Bell System integration and presented evidence of its performance.

 

71. Otto Eckstein Harvard University Professor of Economics Data Resources, Inc. Chairman

Scope and Content Note

24283-367
 

72. William D. Nordhaus Yale University Professor of Economics

Scope and Content Note

19397-511
 

73. Almarin Phillips University of Pennsylvania Professor of Economics

Scope and Content Note

19206-349
 

74. Robert S. Olley University of Saskatchewan Professor of Economics

Scope and Content Note

19878-956
 

75. David J. Teece Stanford University Professor of Economics

 

76. Lester C. Thurow Massachusetts Institute of Technology Professor of Management & Economics

Scope and Content Note

24400-40
 

G. Authoritative members of the defense community testified as to the importance of the Bell System's integrated structure for national security.

 

77. Harold Brown Former Secretary of Defense

Scope and Content Note

24655-89
 

78. Gerald P. Dinneen Former Assistant Secretary of Defense

Scope and Content Note

24509-50
 

79. Lee M. Paschall Retired Lt. General, U.S. Air Force

Scope and Content Note

19659-713
 

80. Eugene G. Fubini Consultant

Scope and Content Note

24492-508
 

H. Leading authorities testified as to the importance of Bell System integration to the United States' position in international trade, including effects on domestic employment.

 

81. Robert S. Ingersoll Former Ambassador to Japan and Deputy Secretary of State

Scope and Content Note

23756-67
 

82. Philip M. Klutznick Former Secretary of Commerce

Scope and Content Note

24471-89
 

83. Harald B. Malmgren Consultant

Scope and Content Note

24187-226
 

84. George McGovern Former U.S. Senator from South Dakota and Candidate for President

Scope and Content Note

24689-702
 

85. Leonard Woodcock Former President United Auto Workers and Ambassador to People's Republic of China

Scope and Content Note

24448-71