Private Lines
About Private Line

Private Line covers what has occurred, is occurring, and will ocurr in telecommunications. Since communication technology constantly changes, you can expect new content posted regularly.

Consider this site an authoritative resource. Its moderators have successful careers in the telecommunications industry. Utilize the content and send comments. As a site about communicating, conversation is encouraged.

Writers

Thomas Farely

Tom has produced privateline.com since 1995. He is now a freelance technology writer who contributes regularly to the site.

His knowledge of telecommunications has served, most notably, the American Heritage Invention and Technology Magazine and The History Channel.
His interview on Alexander Graham Bell will air on the History Channel the end of 2006.

Ken Schmidt

Ken is a licensed attorney who has worked in the tower industry for seven years. He has managed the development of broadcast towers nationwide and developed and built cell towers.

He has been quoted in newspapers and magazines on issues regarding cell towers and has spoke at industry and non-industry conferences on cell tower related issues.

He is recognized as an expert on cell tower leases and due diligence processes for tower acquisitions.

« From J.R. Snyder Jr. | | Follow on from Australia and the fourth grade »

November 10, 2004

Posted by Tom Farley & Mark van der Hoek at 04:15 PM

AT&T owned a railroad?

From Don Kimberlin (internal link)

The day I started work at AT&T in Fort Lauderdale, Florida, my personal induction was by Henry G. Pettit, one of the nicest people I ever worked for. Henry had been a US Navy radioman on board a four-stack destroyer in WWI, and eventually wound up working at AT&T's east coast overseas HF radio operations, transferring to Florida when that site opened up a couple of decades later.

He exposed to me his personal opinion that Bell did "whatever it wanted," and got the government to rubber-stamp it, then telling the public it was "The Law" that required them to operate as they did.

I have found out that Henry was right.

At any rate, he told me that the Bell even "owned a railroad" at that date in 1962.

I later found out that Henry was correct. However, his was that typical employee doctrinaire sort of knowledge of a selected portion of the facts.

In later years, I found out that Illinois Bell at Chicago, in the monopolistic fashion of the early Bell (pre-1913 antitrust settlement) era, had purchased a "merchants' railway" that ran in tunnels under the buildings of downtown Chicago, ostensibly to deliver coal and merchandise among the center city buildings.

What the Bell historians had neglected to include in the story was that the railway had been built by a competing phone company, to evade the monopoly on placing telephone cables in the streets; a monopoly established by close Illinois Bell relations with the rather openly corrupt Chicago city government officials.

To close that gap on their monopoly, Illinois Bell got Western Electric to purchase the railway, and thus deny the potential competitors from using its tunnels for telephone cables.

And so the railway was "owned by AT&T" for some decades.

The twist came a half century or more later, when Western Electric, perhaps suffering from corporate senile dementia, sold the railway, which had been inoperative for some years.

However, the people who purchased it without Ma Bell recognizing them, was the Chicago Fiber Optic Corporation, the first of the many local fiber optic companies to emerge in the fiber era.

That once again gave a Bell competitor the selfsame tunnels to use to beat Ma Bell at her own game in Chicago.

The first market Chicago Fiber Optic found was to provide broadband connectivity between the various interstate Bell competitors at Chicago -- Sprint, MCI and such -- thus making Chicago perhaps the first major inland interchange point between Bell's interstate competitors.

I find that a rather interesting example of how corporations create, then lose, their competitive stance.

Don Kimberlin (internal link)

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Human Verification:

Article Index

Recent Posts

Powered by
Movable Type 3.2