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Some Thoughts About Tomorrow 
A Brighter Light Is Born 

How Mountains Help Make Men 
Feeling Groovy— But Not From Rock 



January/ February 1970 

BELL 



telephone magazine 




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%A/e have felt fortunate, during most 
■ ■ of our dozen years with this busi- 
ness, to function from a corporate 
base which demanded, or at least per- 
mitted, a generous amount of travel 
about the land. One might say it is 
more meritorious to devote a career 
to one Bell company serving one state 
or one cluster of states. That, after ail, 
is where the service and the indices 
are. Weil, we worked in a Western 
Electric factory and in an operating 
phone company, and those times were 
indeed among the best ever. 

We are nonetheless grateful that our 
mission has been, for the most part, as 
it is now, to worl< toward System-wide 
purposes with aii branches of the busi- 
ness. In that way one is able to get out 
and see and feel what's happening. 
There is value in l<eeping abreast per- 
sonally, if peripherally, of ali the com- 
panies, in all the cities, and of Bell and 
other people who make the com- 
panies and the cities what they are. 

During 1969, we were in 12 or 13 
cities, usually on business but some- 
times with wife and kids in tow purely 
for pleasure. We were in some of the 
cities more than once. It was always 
enjoyable. ■. 

Yet, so much is wrong with the cities 
today, and so much is being writ- 
ten about these wrongs, that one feels 
almost subversive about admitting to 
a feeling of good cheer and brother- 
hood induced by, say, a walk along 
Manhattan's Central- Park Sowth- er- 
Fifth Avenue during a winter evening 
snowfall. Careless though it may sound 
to say it, such a stroll can be awfully 
good for the psyche. This is not to 
deny that blight exists a few blocks 
away. It is to say that while the cold, 
cruddy, crowded tenement buildings 
of Hell's Kitchen are part of the city, so 
is the invigorating, poetic, explicitly 
urban experience of a snowfall on 
Fifth Avenue; falling, as it does, with- 
out regard to race, creed or color. 

One may hesitate for the same rea- 
sons to tout the comforts of an eve- 
ning with friends in the picturesque 
townhouse neighborhood of Washing- 
ton known affectionately as "Foggy 
Bottom." One hesitates because, as 
everyone knows, robbers are running 
amok out there on the broad streets 
of the city. But if bandits are a com- 
mon side of the current D.C. scene, so 
is the gracious urban atmosphere of 
Foggy Bottom, to which one can walk 
from work and from most of the city's 
historic sites and parks. Foggy Bottom 
is an exclusively inner city thing. 

One may feel reluctant to emote 
over the impressive facilities of Ex- 



position Park in Los Angeles with its 
Coliseum— where we spent countless 
autumn boyhood Saturdays— the ad- 
jacent new sports center, the museums 
of natural history, and science and in- 
dustry. Why reluctance? Well, because 
nearby the Watts riots started the 
whole, tragic "Burn, Baby, Burn" se- 
quence of inner city race wars. Yet Ex- 
position Park is not just the property 
of the Establishment. It serves the 
whole community, every shade of cit- 
izen, for a hundred miles around. 

In like fashion, one could feel com- 
pelled to soft-pedal the awesome vistas 
seen from Seattle's Space Needle or 
San Francisco's Fairmont Towers, for 
not everyone frequents those places. 
But any restriction against customers 
is based on their inability to pay for 
what they consume, not on their 
church or color, and today more peo- 
ple than ever can afford to relax in 
those surroundings, if they want to. 
The convenience of such bistros, and 
the views they provide, are strictly 
central city achievements. That there 
are massive traffic jams near the Boe- 
ing plantjn Seattle or on the Golden 
Gate a't rush hour does not cancel the 
attributes of those cities. 

It is exciting, in Chicago, to sense 
I'jBisid.see the productive industrial pulse 
* and highly professional style of that 
big town. The crackerjack operating 
organization that represents the Bell 
System there typifies the city's talent 
and mighty capacities. Lake Michigan 
. i^z-ofceur^e^ -horribly polluted, and to 
some of this country's most promising 
youngsters the city, because of con- 
frontations during the Democratic 
convention there, embodies every- 
thing that's wrong in the world. But 
the positive contributions of Chicago 
are no less bright for its problems. 

The combination of commerce and 
culture which America's cities of- 
fer is impossible In any other environ- 
ment. Blue Ball, Pennsylvania, or Cut 'n 
Shoot, Texas, could not provide such 
options. If the same span of possibili- 
ties existed in Blue Ball, then Blue Ball 
wouldn't be Blue Ball. It would be a 
metropolis, and most of the Blue Ball- 
lans who live there now would live in 
its suburbs and come into town to 
work, to dine, to study, to see plays, 
to hear music, to shop. Along with 
those advantages, Blue Ball would 
have muggers, smog, traffic, bureauc- 
racy, ballooning taxes, protests, strikes, 
grousing commuters, and more surly 
waitresses and salesclerks than it prob- 
ably has now. 

The cities, despite their agonies, are 
still essential, inspiring, throbbing 



centers of creativity, industry, enter- 
tainment, education, athletics, hospi- 
tality. The point often overlooked in 
our eagerness to fix the cities is that 
they must be preserved and improved 
more because they are so fine, flaws 
and all, than because they aren't. It is 
not so much the need to make a bad 
thing good as it is to make a good 
thing better. By cutting the cancer out 
of a patient a surgeon doesn't enable 
a bad man to go on living. He gives 
his patient, who is probably a good 
man to begin with, new license to be- 
come an even better man— better in 
his business, or with his family, or on 
the links, or on the school bond com- 
mittee, or whatever it is he does and 
wants to do better. The cities are a 
lot like that. 

But cities alone can exasperate the 
soul. More than at any time since 
Man quit using vines as his favorite ve- 
hicles, he needs sagebrush to balance 
the urban milieu. Too much of 
Queens, Indianapolis, Hartford, Bir- 
mingham, Minneapolis or North Long 
Beach can wear a man down. He needs 
to get out in the brush now and then 
to restore his perspective. It doesn't 
have to be sagebrush. Man can receive 
the same tonic from pine forests, un- 
developed beaches, or the kind of 
mountain water Tahoe in California 
once was and the Alagash in Maine 
still is. The important thing is to get 
out and get in it every now and then. 
And a prerequisite to that is for gov- 
ernment and private groups to keep 
the remaining rustic parts of this land 
rustic, so that man can wander in them 
when he wants to. 

One reason we, personally, have al- 
ways enjoyed cities Is that we have 
spent as much time out of them as in 
them. In 1969, for example, we pad- 
dled down Pennsylvania's pristine 
Delaware River in a canoe, and on 
another occasion rode Utah's ram- 
bunctious Green River rapids In a rub- 
ber raft. We went on a sleighrlde in 
rural New Hampshire snow, pulled by 
puffing Percherons. Recently, back in 
our native West, we got up very early 
one morning and hiked far up into the 
sagebrush, mesquite and manzanita- 
covered hills of San Diego County, 
near the cowboy towns of Temecula 
and Aguanga, where coyotes and cac- 
tus still reign. If one has never breathed 
early air in such surroundings, one 
should. 

John Gardner said our society needs 
good plumbers and good philoso- 
phers. Plumbers and philosophers and 
their families and friends need good 
cities and good sagebrush. THH 



BELL 

telephone magazine 



I 



VOLUME 49 NUMBER 1 JANUARY/ FEBRUARY 1970 



2 This Business Tomorrow 

Four AT&T executives discuss the expected demands of the '70s 
and how the Bell System is preparing to meet them. 



12 Super Bowl, 1980 

by John B. Langer 

With the onslaught of electronic gadgetry, 
football becomes a game for the birds. 

14 Outward Bound: A Rugged Climb to Self-Discovery 

Often-gruelling Outward Bound courses are offering disadvantaged 

youths and business managers a chance to learn something 

about human nature and themselves. 

18 The Future Is Not Inevitable 

by John Kettle KANSAS CITY, MO. 

A writer-futurist observes that many popul|flyBM®sIjJ||BRAjRY 
the next 30 years ain't necessarily so. 

MAR 1 1 1970 

24 A Light Is Born 

by Marvin Elkoff 

A free-lance writer traces the genealogy of a new 
light source at Bell Laboratories. 




29 A Jazz Man Looks at Rock 
by Ira Gitler 

A long-time jazz fan asks the musical question, 
"What is this thing called rock?" 

33 Bell Reports 

A summary of significant developments in communications. 



Tim H. Henney, Editor 
Donald R. Woodford, Managing Editor 

A! Catalano, Art Director 
R. lames Kercheville, Assistant Editor 
Kenneth L. Bowers, Assistant Editor 

H. I. Romnes, Chairman of the Board 

Ben S. Gilmer, President 

John D. deButts, Vice Chairman 

Robert W. Ehrllch, Secretary 

John J. Scanlon, Treasurer 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y., 10007 212-393-8255 





THIS 

BUSINESS 

TOMORROW 



The turn of a decade is one of those 
divisions of the calendar that fit 
neatly upon the course of human 
affairs, affording nnen an opportunity 
to recall the past, appraise the 
present, and assess the future. Since 
it is especiallyatinne for looking 
ahead, BELLTelephone Magazine 
asked four of AT&T's vice presidents 
to connnnenton aspects of the70s 
astheywillaffecttheBellSystenn.On 
thefollowing pages are views, 
taken from a taped discussion, of 
HUBERT L. KERTZ, operations; 
KENNETH G. McKAY, engineering; 
WILLIAM C. MERCER, personnel; and 
WALTER W. STRALEY, environmental 
affairs, representing broadlythe 
areas of service, technology, 
people and environment. 



Mr. Kertz, what effects will new technology have on 
better service for the public? 

Mr. Kertz: In the future, electronic switching systems, 
for example, are going to provide our customers with 
a much more flexible service, and these systems will 
be easier to maintain. Beyond these, there'll be many 
other advances, such as automatic transmission test- 
ing sets, which are going to be a great help to the 
maintenance forces in improving the quality of service 
on our network, as well as keeping the network in 
shape to provide more and different services to our 
customers. All this is going to require the operating 
departments to gear up for these new technologies. 

Mr. McKay, how will the network be affected by new 
technologies in the seventies? 

Mr. McKay: The pace of innovation, both in develop- 
ment and manufacture, is so great that new tech- 
nology is permeating almost everything we are now 
doing. It is over four years now since we first intro- 
duced electronic switching in commercial service; 
this year we will have about 70 offices equipped for 
over 900,000 lines. We expect to have an entire family 
of electronic offices which will serve the full range 
of needs, from the very small to the largest offices. 
In transmission, there are some rather spectacular 
developments in long distance techniques which have 
resulted in steady reduction of long distance trans- 
mission costs. I see that trend continuing through 
the seventies. An important factor in this reduction 
is equipment for digital transmission, which is now 
being installed to serve shorter distances between 
central offices. As we go on through the seventies, I 
will expect more and more digital transmission 
through intermediate distances with larger-capacity 
systems, and then digital transmission on coaxial 
cable. Finally, in the latter part of the seventies, we 
expect to introduce digital transmission on wave- 
guides. Right now, we are beginning a field trial for a 
waveguide system which will be able to handle about 



a quarter of a million two-way voice circuits over a 
single system. We think that will meet much expected 
growth. 

As far as lasers are concerned, we have a good 
deal of work going on now, but it clearly requires the 
development of a whole new technology before we 
can use them effectively in the field. Consequently, 
I don't expect that lasers will be used broadly as a 
communications medium during the seventies. 

What I have been talking about is facilities to cover 
not only voice but data transmission, Picturephone® 
service and other forms of communication. First of 
all we have the more complex telephone, or "station 
set," which does more for you than what you have 
now. One excellent example is the Picturephone set, 
which provides both audio and video communica- 
tion. I can imagine other more complex forms too, 
which I expect would be developed some time during 
the seventies, but the kinds of special services the 
customer will get will depend not only on the station 
sets, but also on the functioning of the local central 
office, and this is the area where electronic switching 
plays a major role. The electronic memory in the cen- 
tral office can provide a number of special services 
readily, and I expect that others we have not yet 
thought of will come along. 

Mr. Mercer, how do these advancing technologies 
look to you over the next ten years in terms of jobs 
and training? 

Mr. Mercer: It seems that each of these new technol- 
ogies tends to be more complex. On the other hand, 
they are being designed so that many of the complex- 
ities as far as the individual installer and maintenance 
man is concerned have been eliminated through the 
use of plug-in units. In many instances these really 
reduce the demands made on a lot of people in terms 
of technical know-how. 

However, certain people will need to be better 
trained to understand the equipment, trace trouble. 




repair it, and so forth. On the other hand, much of 
the actual repair work can be done either at a factory 
location, or the plug-in unit can simply be replaced 
and the old unit thrown away. Nevertheless, we'll 
need to keep our plant forces trained, including sev- 
eral levels of supervision, so they will know how to 
maintain and deal with the highly complex central 
offices and new transmission techniques which even 
now are coming into being. 

I also expect that we will be hiring people who 
are well trained technically, either out of vocational 
schools, two-year technical schools, or whatever. I 
think we need to be alert for this kind of potential 
employee, but we must make sure just what each in- 
dividual job requirement is so that we do not put peo- 
ple in jobs that are really beneath their capabilities. 

What different skills will be required of our people 
in the future? 

Mr. Mercer: What we will need in the future is to 
raise the level of general technical knowledge in the 
whole employee organization. Toward this end, we 
have technical training for our craft forces, and we 
now have traffic engineers at our Lisle, Illinois, train- 
ing center who are going through courses on how to 
administer our dial central offices and how to plan 
for additions to them. In addition, we've started a 
training center in Atlanta for management people in 
the plant department to bring them up to date on 
new technology, and on how to better manage the 
job. We're also undertaking training in the commer- 
cial department in connection with forecasting and 
other aspects of the commercial management job. 

Will the ratio of management and nonmanagement 
people change in this process? 

Mr. Mercer: 1 would not think so for the immediate 
future. I do, however, see more specialized skills 
needed, not necessarily in the usual large organiza- 
tions such as plant, traffic or commercial, but in the 



newer, smaller groups such as the management sci- 
ences and market planning divisions at AT&T, and in 
expansion of other groups such as those working with 
economic and regulatory matters. 1 see new special- 
ists in engineering, and communications consultants 
or account managers who will be responsible for 
servicing large, complex systems for big customers. 
But as far as the mix of management and nonmanage- 
ment is concerned, I hope that with the improved 
technology, we could have a higher ratio of nonman- 
agement to supervisors as new techniques and oper- 
ating procedures develop. 

Mr. Straley, what effects do you see the environment 
having upon our business in the next decade? 

Mr. Straley: First, 1 think as far as the physical environ- 
ment is concerned, there is something significant 
going on which will affect not only our business but 
all businesses in the country generally. For the first 
time the environmental issue is becoming very rapidly 
a national issue. 1 read that, during the game between 
Stanford and Cal, one cheer that went up on the Berk- 
eley side was "Stop the war in Vietnam— clean up the 
environment, and beat Stanford"— in that order. 

The so-called youth movement is beginning to get 
concerned with problems of the physical environ- 
ment. Importantly, this "clean up the environment" 
issue is nonpartisan, and independent of whether or 
not we have Democrats or Republicans in national, 
state or local jobs for the next decade. The physical 
environment as such will be a national issue that 
crosses parties and crosses ages. I think that, for the 
first time, everybody is for it. I think that we as an 
enterprise are going to be intimately involved in a 
lot of physical environmental efforts that are being 
made. For example, the people in AT&T and out in 
the telephone companies, along with a lot of other 
industrialists and governmental agencies who use 
large vehicle fleets, are really going to be pressing for 
an improvement in exhaust emission control devices. 
1 think some important breakthroughs are also going 



to be made in the development of electric vehicles. 

More and more people are coming to understand 
that industry has made very rapid progress in water 
pollution control. The great need there is for bringing 
various overlapping governmental groups together 
into districts and metropolitan areas, regional areas 
and so forth to do something about public pollution 
of water. I think that Western Electric has done a good 
job of reducing factory water pollution, and of con- 
trolling air pollution by burning less sulfurous oils. 

The social environment is a different problem, it 
involves the shape, the structure of the cities; it in- 
volves the economic facts of life for the people who 
find themselves increasingly ghettoized there; it in- 
volves government, and here there is no universe of 
opinion. Government is struggling in a political sense 
with such matters as what taxpayer group shall sup- 
port the major expenditures. Sixty percent of the 
revenues of most of the big cities are taken up by 
education and welfare costs. In most of the rest of the 
world free public education is paid for by the central 
government. 

In the early seventies, we will increasingly hear the 
cry we are hearing now: that the states must pay for 
education and that the Federal government must pay 
for welfare. A tremendously important political argu- 
ment is going on: how and where to shift the burden 
of the costs of the cities. I do not believe this debate 
will be settled in the seventies. We in business suffer 
our most critical environmental effects through what 
happens to people inside the cities, and all of us are 
deeply involved in that human problem which affects 
service. That is why much of the emphasis in our new 
department of environmental affairs is on the human 
aspects of the environment. 

Do people have the i<ind of commitment they ought 
to have nowadays, and if not, is the trend going the 
wrong way? 

Mr. Straley: To generalize for a moment, I think we 
have two kinds of young people coming into the busi- 



ness. First, there are those who have been so spoiled 
as a result of the permissiveness of their parents and 
their environment over the past generation, the two 
decades in which they have been growing up, that 
they are disenchanted with everything. That may be 
an unfair generalization, but it is my opinion. They 
don't accept a commitment because they have not 
been asi<ed to by the post-war parentage that I also 
belong to. We all felt obliged to save the little mon- 
sters from ever being pushed to any kind of an impor- 
tant personal decision. We, the depression genera- 
tion, have said, in effect, "they will never have to go 
through that, it will all be easy for them," so they 
have never been pushed for any personal commit- 
ment of any kind. 

Then there is a much larger and a much more 
important group of youngsters in the cities who are 
the victims of big city high school training. We take 
them in very often for their first job. In this case, 
they are quite a different group. From their point of 
view, and generally it is true, nobody has kept any 
commitments to them. They really don't understand 
when people ask them to implement such terms as 
"the customer's needs are first in this office." They 
don't understand this because no one in the kind of 
environment they come from, including the white 
community if they happen to be black or brown, 
has ever said that to them and meant it, so they don't 
know what we mean. Hurdling this barrier of under- 
standing involves a very difficult process which we 
must master, and through which we must keep our 
commitment to them as employees. They then will 
begin to reciprocate. 

Mr. Kertz: There is no question about it. We certainly 
had, in past years, craftsmen and service representa- 
tives and operators who really had the customers' 
service requirements in mind, and I think most im- 
portantly too, they took a pride in the job they did. 
When the repairman fixed a case of trouble, he took 
satisfaction in doing the job right the first time. As 
Walt Straley says, we've got some people coming into 




the business who, for one reason or another, just 
don't have that attitude. We as management people 
have a real responsibility to help them acquire it. 

We have quite a few plans under way to help 
develop the right attitude. We have been working 
with the personnel department to improve the con- 
tent of the job through what we call the "work it- 
self" concept. That has really done wonders for the 
attitude of employees and for the service in general. 
We'll put it into effect in our operating departments 
as rapidly as we possibly can. 

Mr. Mercer: I think the very success we have had 
with the "work itself" program is an indication that 
basically people do get satisfaction out of accom- 
plishing a job when unnecessary restrictions are re- 
moved. This is a little different from what we did 
in the past, and I think this is part of the change 
we have to effect here. 

We recognize that up until 10 or 15 years ago, 
people were willing to take and do a job strictly on 
the basis of pat phrases and ways of responding to a 
given situation, while today they like freedom to try 
and work out their own problems in a way that makes 
them feel they are solving them. I hope we can de- 
velop a sense of commitment, a proprietary interest 
in the customer, not necessarily as the Bell System's 
customer, but as the individual employee's customer 
for whom he is personnally responsible. 

I think we could assign a man a piece of real 
estate — give an installer four square blocks, for in- 
stance, in a suburban area or a certain part of a city, 
where all the customers in that particular segment 
of geography are his customers. We started a trial 
like this in one of the companies, and it was amazing 
what one individual installer did. He went around 
on his own and rang door bells and introduced him- 
self to his customers and told them who he was, 
that he was the telephone man, and if they had any 
problems to call him and he would come and fix it. 
This is what I mean by proprietary interest in serving 
the customer. 




Mr. Kertz: Bill, I'll say it is a must that we lick this 
problem. Our customers have been getting better 
service each decade as we go along, but at the same 
time their expectations continue to go up. Service 
in general in the sixties has been better than it was 
in the fifties, and customers everywhere are going to 
expect service in the seventies to be consistently bet- 
ter than it was in the sixties. 

Mr. Mercer: Also, I think it helps if we can provide 
immediate feedback to our employees so they know 
that they either do well or do poorly. This has been 
proved in many of our trials and programs that are 
under way now. We have over 400 different pro- 
grams like this going currently, and I think we are 
going as fast as we can in this area. 

Mr. Straley: There are other things we can do. For 
example, young mothers with small children who 
have no place to leave them, are going to need a 
place. In my opinion, we have to take some leader- 
ship in seeing that this is done. If employees require 
education, job-oriented or not, we probably should 
do something about that, too. 

In the child care centers we need not just someone 
to take care of the children but also to start their 
educational process. Moreover, in the big urban cen- 
ters we need more management people who have a 
working-living "street" knowledge of many of the 
kids who are coming into the business. 

In a simple sense, as we employ more blacks, it 
means that we are going to have more black manage- 
ment on first and second levels than we have now. 
We need more people who understand the kind of 
employment market we have, what their values are, 
how they react to things, what they really want out 
of the job. We need more managers who understand 
them. 

Do you see an expanding involvement in the next 
decade with such organizations as the National Alli- 
ance of Businessmen and the Urban Coalition? 



Mr. Straley: This is hard to answer. As you know, 
the NAB is a Labor Department funded agency, for 
the most part privately managed. But it's co-managed 
with the Department of Labor to the extent that it 
continues to contribute to prejob remedial training. 
! am certain the Bell System will be an important 
user of that sort of thing, an important partner of 
that effort. 

The Urban Coalition is still another private com- 
munity effort to attempt to attack the proliferating 
problems of the city. 

The fact is that anyone who sets out to put all of 
the urban problems together in any fashion or in any 
kind of a coalesced effort is in for trouble because 
they are, in effect, redesigning the human being. 
There are so many things to take into consideration 
that we can't use the systems approach to the whole 
complex. 

I have hope, however, that we can begin to pick 
up piece parts, working with government task forces, 
joined by private enterprise. Jim Allen, Commissioner 
of Education, recently has announced that he wants 
to begin a nationwide campaign with private organ- 
izations to enable every child to read by the end of 
the seventies. By what standard I do not know, but 
to read, let's say, at the 10th or 11th grade achieve- 
ment level — read well enough to be effective in a 
reading environment or perhaps read well enough 
to want to read. Maybe that's a standard. 

Most educators try to make the whole child, and 
of course they fail miserably because the environ- 
ment is too tough for them. 

It may be that if we take what seem to be little 
pieces one at a time, and partnerships of local, state, 
federal, government, private operations of one kind 
or another, and approach each piece, we may make 
some real headway in the seventies. 

I think we must have priorities. I am hopeful that 
the Urban Coalition will pick out a priority list of three 
or four things; I think a major effort mounted in that 
way would show marked improvement in a ten-year 
period. 



Mr. Mercer, would you comment on labor relations 
in the next ten years? 

Mr. Mercer: There's going to be a continuing organ- 
izing effort on the part of the unions in an attempt 
to grow stronger and more powerful. This effort will 
center in trying to organize groups who are presently 
unorganized, as well as for large national unions to 
take over the smaller independents. In fact, some of 
the independents believe that perhaps they no 
longer can remain alive, and therefore choose to align 
themselves with a national union. I see this effort 
working more in the service industries, since unions 
have done as well as they can in manufacturing indus- 
tries. As the percentage of total manufacturing em- 
ployment goes down, the service side is going up. 

I certainly hope that there can be an improved 
atmosphere of a mutuality of interest, instead of the 
unions only trying to get this and that for their mem- 
bers. Certainly we will see no let-down on unions 
trying for improved wages and fringe benefits, but I 
hope that somehow we would get to the point where 
we both have primary interest in service to the cus- 
tomers, with other considerations being secondary. 
Perhaps we can also work more closely with the 
unions in other areas — in solving some of the prob- 
lems of our cities and society generally. 

Mr. Kertz, do you see any change in the measure- 
ment of our service performance? 

Mr. Kertz: Yes, very much so. We have gone quite 
deeply into service attitude measurement plans. We 
utilize questionnaires which we send to our cus- 
tomers and in effect ask them how they like specific 
kinds of service being provided. And we find that 
we have good correlation between the results of 
these questionnaires and our technical indicators. In 
the future we need to pursue both of these. What 
we really can use our technical indicators for is to 
better manage the business, and that is all they should 
be used for. They are a management tool. 



But when it comes to how the customer feels about 
service, we should depend upon what he says 
through the service attitude measurement plans. We 
are proceeding with that, and in the future we are 
going to expand it to include large business cus- 
tomers, PBXs and others. I fee! that it is one of the 
vehicles by which we are going to provide the cus- 
tomers in the seventies with the service they expect, 
and which, I assure you, we are going to bend every 
effort to see that they get. 

Mr. McKay, what would you say will be the long 
range effects of the increasing interconnection of 
systems and devices with the network in terms of 
technical quality? 

Mr. McKay: The thing we have been most concerned 
about, of course, is pollution of the network: that 
is, improperly maintained customer-owned devices 
producing electrical interference in the network. We 
have insisted upon safeguards, and I believe they 
are effective safeguards. These are interconnecting 
devices which we would interpose between the cus- 
tomer's system or device and the network. I think it 
is extremely important that they be required as a way 
of preventing all sorts of electrical interference from 
getting onto the network. 

With them, I am reasonably content that the net- 
work will operate effectively. And, those who want 
to own their own communications equipment or sys- 
tem will be able to interconnect safely with the net- 
work. 

Mr. Kertz: I would like to mention one thing that 
has to do with forecasting. Of course, this is a most 
important function, and the better the forecast the 
better we do business and the better service we 
provide our customers. We are aiming to raise the 
general technical knowledge of the people who do 
forecasting. To do this, we are developing plans and 
training courses that utilize computer techniques, 
working with Ken McKay's engineers and Bell Labora- 



10 



tories. These more sophisticated ways of forecasting 
demands for telephone service involve a lot more 
than just looking at household formations and where 
new buildings are going up and things like that. 
They involve such things as increased usage of the 
telephone, which in the last few years has taken some 
rather dramatic jumps, increases which of course 
require more equipment. 

Also, we are most interested in finding where the 
new demand is coming from: whether it's penetra- 
tion in a user market, second homes — and there is 
a lot of that, incidentally — or second lines in exist- 
ing homes, or just new family formations. To do 
this with the degree of sophistication we think we 
need in the seventies, we are calling upon the Labor- 
atories to help our forecasters by the use of new 
computer techniques. Early in 1970, we plan to have 
many of the forecasters in the operating companies 
come into Bell Laboratories to take training in these 
new techniques. 

Mr. McKay: We have been talking both about the 
rate of change of technology and also about educa- 
tion. If I may put these two together, I consider the 
question as to what happens to our own technically 
trained people as the technology moves faster and 
faster. Of course, those who are making it move, 
those who are on the crest of the leading wave, are 
themselves involved in what is a rather violent learn- 
ing process, and those of us with a technical base, 
who wish to be a part of the on-going technology, 
must also have a continuing learning process. This 
calls for continuing education on the part of our tech- 
nical people, or else they will become wedded to 
the things they learned when they were young and 
they will be left behind. 

Mr. Mercer: I think we need to encourage people, 
either on their own or through company sponsored 
programs, to go back for additional education, to take 
sabbaticals if you will. Also, to attract some of the 
brightest nontechnical college graduates today, per- 



haps we need to institute a liberal arts Master's pro- 
gram similar to the Laboratories and Western Electric 
technical Master's program. 

Mr. Straley: I might mention briefly the manpower 
laboratory that we expect to establish here in New 
York early in 1970. It will be a small operation set 
up between personnel, the operating departments, 
and our environmental affairs operation. We will 
have some systems research people going to work 
very quickly, inventorying all of the innovative things 
that are going on. 

Especially in the central city areas they will be study- 
ing the whole process— from recruiting to preemploy- 
ment training, to job training, to post-job training. 
Then they'll try to select the best of those ideas and 
programs, put them in an evaluation center under 
actual conditions, and seed them back out into the 
companies and follow their progress. 

We hope to find out how to motivate new em- 
ployees to accept service standards which are set by 
employers. In a sense we will have the first social sci- 
ence laboratory separate from the Labs, and some of 
the Bell Laboratories Behavioral Sciences people will 
be involved in it. Secondly, we'll aim to better utilize 
some of the really remarkable things which are spot- 
ted here and there. It's an interdepartmental effort, 
and we are eager to get it under way as soon as we 
possibly can. 

Mr. Kertz: The provision of good service is our num- 
ber one objective today, as always. We have a few 
trouble spots and those few are conspicuous. We are 
giving good service, however, in most parts of the 
country, and in some places it is better than it has 
ever been. But in the seventies we just have to give 
even better service. 

Mr. Mercer: I think part of the problem is our merely 
saying to our employees, "give good service." We've 
got to get to the point where each of us says, "/ am the 
one who is responsible for giving good service." D 



11 



by John B. Langer 



"Hello, all you vid-watchers. This is 
'Egg' Noggin with the 1980 Super Bowl 
game between those fabulous Vikings 
and the surprising Chiefs. 

"One change for this contest! To 
make room for extra fans, the end 
zone maxi-replay screens have been 
blacked out. But our network has ar- 

Mr. Langer, now dislricl director in Aber- 
deen, South Dafcota, tor the Internal Reve- 
nue Service, /s aho a free-lance writer 
specializing in humor. 



ranged to have all vid-read-backs, 
used by the officials to make deci- 
sions, shown on your screens at home. 
All other officiating devices will be 
operating as usual — the converted 
laser for offsides, the uni-radar scan- 
ner for procedural violations, and so 
forth .... 

"We're seconds from kickoff. There 
it goes. The Vikings' Eric Leafson has 
it in his end zone. He's out to the 10 
. . . down hard at the 23. 

"So it's first play from scrimmage 
for the Vikings. 'Pistol' Capp's in the 
quarterback slot. Tony Wash's at slide 
end. Ozzie at feinter . . . It's a straight 
through. 'Bull' Brawn made a little. 
The electromagneto down monitor 
up on the visiboard flashed it as plus- 
two/four, second and seven/six to go. 
Let's see, that's a gain of two and four- 
tenths of a yard. So on second down 



^ 



it's seven and six-tenths yards to go. 

"The Chiefs are in a three-storm, 
two-pull line with three mid-backers 
. . . Capp fades to left pocket. The pass 
is to Ozzie slotted out. He's got it at 
the sideline. The official's signaled a 
vid-read-back . . . There it is on your 
screen. The read-back shows it's 
complete! 

"Let me tell you, since they added 
that electron-circuit spray four years 
ago these read-backs have been life- 
savers. It takes 300 square centimeters 
of the spray on ball and player to make 
sufficient contact to complete the cir- 
cuit and show whether a player's in 
bounds. Certainly knocks out the 
guessing! 

"Magneto flashes first and 10, Vik- 
ings on the 49/four. Looks like a slant- 
go. Brawn. Magneto flashes neutral. 
No gain. Wait, the uni-radar caught 
Wash in motion . . .Chiefs are taking 
the play, though. No penalty. 

"Now it's the Vikings in a spread 
... A long one to Wash. Knocked 
down by Marcells. Capp's asking for a 
vid-read-back. This is the Vikings' first. 
This year, the teams are allowed 12 
read-backs where they feel a rules in- 
fraction has been missed. ... No inter- 
ference is showing, however .... 

"What a contest folks! Six minutes 
to go in the game. Chiefs on top 31-24. 
Vikings have a first on their 35/five . . . 
Capp throws from a mobile shed . . . 



It's complete to Wash! Magneto shows 
him out at the Chiefs 13/two. 

"Vid-grammer's signaling a com- 
mercial. So let's take a time out .... 

"Back to the Galaxadrome. Minutes 
left. Brawn sweeps! The laser-belt is 
flashing a score! Let's look at that on 
the subsurface goal line vid. There it 
is, by two inches. The ball outline is 
the green electron belt on your screen. 
White lines are players, of course. 

"Now for the point . . . Just nipped 
the static zone between the posts, but 
enough to turn them on. It's all tied 



up! 



There is an offside blinker but 



it's blue. Chiefs. 

"The teams are back downfield for 
the kickoff. Just a second! . . . George, 
what's happening? Didn't I see the 
Vikings' posts flash on? They've 
flashed again! Now the laser-belt is 
flashing a Chiefs touchdown . . . 
George, the sideline stripe flashed at 
the 20 . . . Fans, something's haywire 
. . . Another field goal! George, can 
you see anything down there? Looks 
like it's flying? Put our zoomer-isolect 
vid on it . . . Looks like a pigeon . . . 
He's through the Chiefs' static field 
again. Chalk up three more points for 
the pigeon. He's down on the goal line 
. . . Another touchdown. George, 
what's the pigeon got so far? What? 
Six field goals and . . . Folks, it's Vik- 
ings 31, Chiefs 31, and pigeon 39! 

"How'd he get in here? The en- 
trances are all air locks. There goes 
the laser-belt again. He must have 
something on him. The belt can only 




be activated by that special coating on 
the ball . . . Crowd's going wild. 
They're cheering the pigeon. Must be 
200 people on the field . . . police and 
... no one's touched that pigeon yet! 
. . . There he goes for three more . . . 
Hold it! He went through the static 
field but nothing happened! What's 
that, George? Oh, they've shut off the 
whole system . . . the whole automatic 
officiating system. 

"Yeah, George? They're going to try 
to finish the game without it? But, 
George, won't that mean the officials 
will have to make all kinds of judg- 
ments? . . . George says they're trying 
to find a piece of rope 10 yards long 
. . . What's that for, George? 

"Folks, it looks like they're going to 
do it! The teams are going back on 
the field . . . Let's see, where were we? 
Oh, yes. Vikings were going to kick 
off . . . George, what about offsides? 
How will they watch that? What's that 
official doing squatting down at the 
40? 

"George, can you see the pigeon? 
Where? Oh there. See him, folks, on 
the cross bar. Looks tired. Certainly 
should be. We have him with 63 points 
. . . and the Vikings and Chiefs to- 
gether have only 62! 

"Will they be able to use vid-read- 
backs, George? No . . . Folks, 1 don't 
know what we're in for, depending 
on those officials to make all those 
judgments. Guess we'll just have to 
settle for four minutes of . . . uh, prim- 
itive football . . . What's that, George? 
Back in the old days ... it was always 
a dog on the field . . . Well, guess 
that's the way it is . . . you just can't 
progress. . . ." _ D 




13 



A 



young high school teacher sits alone under a 
makeshift lean-to in the forest. He is there in volun- 
tary "exile." It is raining and cold. He has no food, 
nine or ten matches, a sleeping bag, a plastic sheet, 
the clothes he is wearing, a canteen of water and a 
pad and pencil. He is using the pad and pencil making 
entries in his journal .... 

"I sit here in the forest as if 1 am the only person 
in the world ... I am very swiftly struck by a heavy 
loneliness that seems to be a combination of all the 
loneliness I've felt in the past year. It is very painful 
... I imagine that if I cry at all while I'm here, this will 
be the cause— never hunger, nor cold .... 

"It's good to be alive this afternoon. It's not a feel- 
ing of ecstatic joy, but just a simple pleasure. . . . 
This has not been the profound self-confrontation I 
thought it would be. Rather it's been a settling down, 



a digesting and assimilation of all that I believe . . . 
I'm going to have to be more productive in all 1 under- 
take because life is too short to just sit on your tail 
and let it go by." 

This young teacher was camping "solo"— a three- 
day segment of his 26-day Outward Bound course 
in the mountains west of Denver. Though his expe- 
rience was deeply personal, it is not unlike those 
felt by others who have gone through the often- 
grueling Outward Bound courses— from the cold At- 
lantic waters off Hurricane Island, Maine, to the air- 
starved mountains and desert land of Mexico. 



o. 



utward Bound, as its participants learn, is 
many different things. 

For teachers who are willing to give it a month of 
their time, it is a rich source of self-revelation. 

For business managers and supervisors of compa- 
nies farsighted enough to recognize its worth, it is 
a chance to learn new human-relations skills. 




For the well-to-do youth who can pay his own 
way, it is a toughening, maturing experience. 

And for the disadvantaged youth who is lucky 
enough to get a scholarship or have a sponsor, it is 
often the first chance to achieve and succeed. 

Outward Bound has been teaching people about 
themselves since 1941. In that year British shipping 
magnate Lawrence Holt became puzzled by some 
strange fatality patterns among young seamen being 
lost to Hitler's submarine warfare. Older survivors of 
sinkings insisted that younger men were dying from 
sheer lack of will to live in the face of severe hard- 
ship. Holt turned to Kurt Hahn for help. Hahn was a 
distinguished German educator who had been exiled 
by Hitler. Holt and Hahn founded the first Outward 
Bound school in the Welsh port of Aberdovey. There 
they began training young men in survival tech- 
niques and a deeper spirit of tenacity. 

The "graduates" of these early Outward Bound 
courses came through the war's emergencies in pro- 
portionately much greater numbers than did others. 
The Outward Bound idea was launched. 

After the war, the Outward Bound program began 
to spread gradually. Schools were established in 



OUTWARD 
BOUND 




A 

Rugged 

«» J, 1 t Climb 

>V'* • to 

/ Self- Discovery 



Europe, Africa, Malaysia, Australia and New Zealand. 

In 1962, the program came to the United States. 
Josh Miner, an educator, helped found a school in 
the Rocky Mountains west of Denver. Within a few 
years, other schools were established in Oregon's 
Cascade Mountains, in the Great Smokies near Mor- 
ganton, N.C., in the Minnesota wilderness near the 
Canadian border, and on Hurricane Island ten miles 
off the coast of Maine. 

In addition, an Outward Bound type of center was 
established, under government impetus, in Puerto 
Rico— this for the training of Peace Corps candidates. 
And dozens of colleges, preparatory and high schools 
have adapted the Outward Bound idea to their cur- 
ricula, offering courses in concentrated weekend, 
holiday and summer-vacation versions. Courses are 
offered for both men and women. 

By 1969, the program's influence had even spread 
into such diverse areas as businesses and prisons. 

For example, the Jewel Box Corporation, of Ashe- 
ville, N.C., sends its young management trainees 
through Outward Bound courses, following the lead 
of more than 800 British business firms. And penal 
authorities of Massachusetts and British Columbia 
rely on Outward Bound-type activities for the reha- 
bilitation of youthful offenders. 

In the United States, Outward Bound is a non- 
profit corporation with national headquarters in An- 
dover, Mass. Its five schools— Northwest, Colorado, 
Minnesota, North Carolina and Hurricane Island— are 
largely autonomous. Details of the programs vary 
from school to school and each has branched out in 
different ways with its experimental efforts. 

The schools are supported by individual gifts, grants 
from foundations and companies, and by payments 
from students who can afford it. No applicant is ever 
turned away, however, because he lacks funds. 

The basic course in each of the schools is a 26-day 
endurance activity for young men, 17 or older (and 
in some cases, young women). Tuition is about $500 
for the 26-day period. 

On arrival at the schools, candidates are divided 



15 



into groups of eight to 12 people, deliberately varied 
in family and economic background, education, race 
and levels of past achievement and motivation. A pro- 
fessional Outward Bound instructor is assigned to 
each group. 

The 26-day program includes mountain climbing, 
hiking, sailing and river running, depending on the 
locality. In each of these activities, the candidates are 
purposely placed under conditions of stress. They are 
faced with unfamiliar, uncomfortable and often 
frightening tasks. They must then rely on their own 
resources and the resources of others in their group 
to complete these tasks. 

The climax of this 26-day course is a 72-hour 
"solo." Each candidate is turned loose in a wilderness 
area to be on his own: to live, to think, to forage for 
food or fast as he will. 



one who knows your faults and likes you anyway." 
The basic course for individuals is only one of many 
forms the Outward Bound idea is currently taking in 
the United States. 



T 

lhr( 



Ihroughout his course, the student is required to 
keep a journal, and from these journals have come 
personal insights and insights about the Outward 
Bound idea as a whole. Reactions vary all the way 
from intense self-criticism to euphoria. 

• "Just as the instructor said, we make our own ex- 
perience at Outward Bound. Whether we have wet 
feet or dry ones is up to us and the same is true in 
our lives. Starting with what we are given, we build 
our own set of experiences to make our own lives. 
Our fate is very much a result of our own work— or 
the lack of it." 

• "I have noticed many changes in myself. I remem- 
bered at one time if I was miserable 1 wanted every- 
one to be that way. But now it's different." 

• "I hope I can retain the spirit of adventure 1 gained, 
not always coming out on top, maybe failing a task, 
but nevertheless trying it." 

• "Something I learned on the river trip was that I 
could show anger, get really mad at another crew 
member for not pulling his weight, shout at him, and 
still like him— and have him still like me. 1 learned 
that you don't lose a friend that way. A friend is 



A, 



another— still in the early experimental stage— is 
a course for supervisors, foremen and managers in 
industry. Its purpose is to encourage such men, 
through the rigorous self-examination that Outward 
Bound courses seem to foster, to stretch their under- 
standing of human motivations and human conflicts 
—their own and their subordinates'— on the job. 

A recent example was a course conducted for man- 
agement and supervisory personnel of the Gates Rub- 
ber Company of Denver by the Colorado Outward 
Bound school. 

Because of the time of year and attractiveness of 
participants, the course was plotted in Mexico along 
the Sea of Cortez. It included, at least in a general 
way, the same activities that have proved so produc- 
tive in the basic courses for youth. But adjustments 
were made, of course, for the ages of the men (25 to 
35) and backgrounds (two years' college, on the aver- 
age) and their already demonstrated emotional and 
mental maturity. 

There were marathon runs, hikes across the desert, 
mountain climbs to 10,000 feet, sailing on the Sea of 
Cortez— and the lonely, self-revealing "solo." 

It's too early to tell what the long-term effects will 
be on these men and their jobs and on the welfare of 
the company that sponsored them, but the results 
look promising. Short-term, subjective reactions can 
be read from their journals and tape-recorded inter- 
views after their return. 

"Our daily discussions seem to be getting more 
and more interesting. Some of the group are still 
holding to their old ideas. Some seem to be changing 
while others have grasped a new meaning of things. 
Now I think I know why some never get any further 
than they do. Nothing seems to bother them. When 
you are a supervisor, certain things have got to bother 



16 



you. Those who do something about their feelings, 
the ones who are bothered, are usually the more 
imaginative individuals. 

"The accomplishments in the course were person-al 
confrontation, challenge, human relations, learning 
how to live with other guys, evaluating oneself and 
being able to accept oneself for what one is, knowing 
one's strong points and weak points, being able to 
communicate with people, development of trust in 
others. And growth. Personal growth." 



S 



'till another experimental activity of the Colorado 
Outward Bound school was a course conducted first 
in 1968 and repeated in 1969 for black and Mexican- 
American youth who had been unable to succeed in 
Denver's job market. 

Eleven young dropouts from schools and jobs 
were promised permanent work in several of Den- 
ver's industries if they would successfully complete 
the 26-day Outward Bound course in the high 
Rockies. The costs were to be borne by the sponsor- 
ing industries. 

Most of these young men had never been up in the 
mountains, even though they lived only a few miles 
away. Most knew nothing of climbing, hiking, camp- 
ing, even tying a knot. 

They were full of hostilities— toward their instruc- 
tors, whites, the establishment, toward the whole idea 
of self-imposed hardship. They had long records of 
failure and expected to fail again. 

All but three surprised themselves. One walked 
out, broken and discouraged, in the middle of the 
course. Two refused to complete parts of the course. 
The rest, though often terrified and exhausted, scaled 
sheer 100-foot cliffs, and climbed ice-covered moun- 
tains with 50-pound packs on their backs. At times, 
they rebelled and even fought, but when they found 
they had no alternative, they kept going. And they 
endured three racking days of solitude on "solo," 
though some of them had never been alone for more 
than a few hours in their lives before. 



Six of those who finished were offered jobs in in- 
dustry and took them. The other two were offered 
additional training. 

Four of the six still continue to hold their jobs, 
but their progress has been disappointing. Judging 
from their comments upon completing the course 
successfully, these young men undoubtedly felt at that 
moment the satisfaction of succeeding, some for the 
first time in their lives. But a gradual decline in their 
new-found confidence began when they returned to 
their old neighborhoods, their old leisure-time pat- 
terns and their former associates. Outward Bound 
has worked no permanent miracles; it has merely re- 
vealed potentials. 

One of the activities common to all five of the 
Outward Bound schools is a yearly program of 
courses for teachers and others who work with youth. 
These courses are usually scheduled during the sum- 
mer months. 



A, 



Jthough the courses are very much like the 
basic courses for youth, much greater emphasis is 
placed on discussion sessions and on the insights the 
individuals are drawing from their experiences. 

This entry in one of the journals offers a measure 
of results: 

"Ernest Hemingway once said it was a great pity 
that wars are so infrequent, because a man might go 
his whole life without finding out whether or not he 
was a coward, in a sense. Outward Bound creates 
wars— small, individual wars between what the student 
thinks he can do and what he is told to do. And some- 
where amid all the pain and fear and frustration, the 
student gets a chance to look at himself in a new light, 
to see just what he is really worth and what he is ca- 
pable of. He gets a chance to look into his soul. Out- 
ward Bound is not enjoyable; it is not meant to be. 
Only under the pressure of fear and pain does a per- 
son get the chance for such self-analysis. It is some- 
thing you can't find in the soft routine or ordinary 
existence. It is something very good." D 



17 



the 

future 

is not 

inevitable 




by John Kettle 



Six billion people, 20-hour work 
weeks, three pills a day For food— all 
in the year 2000? Not necessarily 
explains a writer-futurist who believes 
the future is what we make it. 



Almost everybody 1 know believes unquestioningly 
that there are going to be six billion people on earth 
in the year 2000. Some of them are even sure the 
population of North America is going to double by 
then. There are politicians and town planners and 
bureaucrats who know for a fact what it is they— and 
we— must at once start doing, so sure are they of what 
the world of the future is going to be like. 

Mr. Kettle, editor, newspaperman, film and theatre critic, is a 
member of the World Future Society and author of the forth- 
coming book, "Footnotes on the Future." 



Now all this is a peculiar new sort of confidence 
trick. Nobody knows how many people there are 
going to be on earth at the end of this month, let 
alone at the end of the century. There is no divine 
law that says cities will ever be domed, or under- 
ground, or suspended on vines from Jack's beanstalk. 
It is very unlikely that a single soul will ever try to 
live on three pills a day, and if some peptic misfor- 
tune caused me to do so temporarily, I would cer- 
tainly not love it. 

Yet in the past few years the press's taste for out- 
rageous dogmatic assertions has been whetted by 
growing numbers of people who think they have 
somehow grasped the future by the tail and can ride 
it. The professional futurists are not directly to blame; 
they qualify their cautious predictions to the hilt. 
Journalists and broadcasters prefer the amateurs, 
however, because they sound more positive. 

There are, of course, some certainties lurking in the 
gaudy mists of the future. One is that a number of 
rates of increase must decline at some fairly near 
point because they would explode natural law if they 
did not. The increase in human population will cease 
—in historical terms— soon; if it did not, the press of 
people would soon be so great that there would be 
no space to grow food, and soon thereafter people 
would make up a mass greater than that of the earth 
that harbors us, so that celestial mechanics would be 
disarranged and we should all plunge off course. The 
growth in the proportion of scientists in the popula- 
tion is such that before long all God's children would 
have to have white coats and microscopes to satisfy 
the growth curve. The proportion of the Gross Na- 
tional Product given to research and development 
is heading rapidly toward the point where it will, 
theoretically, exceed 100 percent. At the rate at which 
machine-borne man has been attaining new speed 
records (even before space-travel speeds were 
achieved), we would reach the speed of light in 57 
years— too soon to get that particular law repealed. 

Not only are some technologies rapidly running 
out of breathing space, but there are also in our midst 



18 



substituting 
numbers for 
imagination 




a number of trends, certainly more than three, each 
of which bids fair to consume more than a third of 
GNP if it goes on unhindered. For example, a real 
automation of education; air travel; computers; wel- 
fare spending. Simple competition for capital will 
slow or halt some of them. 

It would obviously be useful, interesting, and prof- 
itable to be able to foretell the future. All the people 
who have ever lived have thought so. They didn't go 
to Delphi or consult the haruspex to learn history. 
Twenty-five hundred years ago the Chinese military 
theorist Sun Tzu offered the view that "What enables 
the wise sovereign and the good general to strike and 
conquer, and achieve things beyond the reach of 
ordinary men, is foreknowledge." We do the thing 
in our own twentieth century way with computers 
instead of chicken's entrails, substituting numbers 
for imagination. 

A number of factors favored the development of 
professional futurism. At least until the dawn of the 
nineteenth century, and in many places until quite 
recently, people expected that things would stay as 
they were— and they did, or else changed by small 
regular steps. But gradually it became apparent that 
some phenomena, and with time a growing number 
of them, were increasing geometrically rather than 
arithmetically. A modern futurist expects population 
to grow by a steady annual percentage increase— to 
compound, to increase by larger leaps each year. In 
fact, the rate at which many dominant trends are 
changing in our day is so rapid that one feels the 
need for a guidebook to the future. Nothing less 
will escape obsolescence at the printer's. For instance, 
it is surely not by design that new expressways and 
airports are traffic-jammed the instant they open. 
What happens is that in the time from drafting board 
to the departure of the construction crews, traffic 
demand grows more rapidly than was anticipated. 
The designer in such high-change technologies as 
transportation and communications now requires a 
skillful projection to tell him what is likely to happen 
in the intervening years and the years after opening 



19 



3 pills 

a day 

instead of 

3 meals? 





day. It is three generations since people put up new 
buildings only when the old ones were ready to fall 
down. So futurism in our time is one way of trying 
to feel at home. One could even say that it is a way 
of trying to feel at home in the present. 

Another stimulant is intellectual perfectionism. We 
are mostly very good at it. Under the prodding of 
Operations Research men, business executives have 
learned how to quantify their hunches and say: "The 
probability that the market for paper dresses will 
grow at 10 percent a year for the next five years is 
50 percent, and the probability that it will grow at 
15 percent is 20 percent" (or some such figures). This 
is saying no more than "I reckon we're onto a fairly 
good thing with paper dresses," but the first comment 
can be put in a computer or a decision tree and the 
second cannot. It looks better when one is talking 
to the bank. Which came first, the futurist or the de- 
sire to snow the bank? 

This yearning for certainty in our daily doings, even 
when it is a spurious certainty that we achieve, is 
characteristic of our time. People say "there is a high 
probability that it will rain on the weekend" when 
they have done no frequency study and merely mean 
"I've got a feeling it's going to turn out rotten again." 
At the racetrack they expect assistance from the law 
of averages when it is really in the sole employ of 
the bookies. 

The idea of progress, itself a recent phenomenon, 
sustains and intensifies futurism. If you reckon in 
quantities, progress is all around us. We have more 
money and goods, and there are more of us. Recent 
increases in air-passenger miles performed by the 
world's airlines constitute a truly astonishing tech- 
nico-financial achievement which fully deserves the 
name of progress. All that is needed is agreement that 
it is an improvement to move so many more people 
so many more miles in a year. On that assumption, 
one needs a criterion for measuring the improvement. 
Only the average annual percentage increase — or 
some such concept as doubling time— will serve to 
describe the change. But once you have it, it is hard 



20 



subduing 
unruly 
nature 








to resist the temptation to say that it will happen 
again next year, and the next. After all, we believe 
in progress. 

A fourth factor that can be identified is Faustian- 
ism— a label suggested by the moment in Goethe's 
play in which Faust seeks to convert stagnant marsh 
and low-lying coastland into "Green, fertile fields . . . 
a land like Paradise." 

Synthesized polymers, nuclear reactors, hurricane 
seeding, and contraceptive pills show how far we 
have succeeded in subduing unruly nature. Mastery 
of the environment is as powerful an impulse for us 
as religion was in the middle ages. Futurism is some- 
times a desire to extend this mastery over as yet un- 
happened events, an intent to direct the aimless force 
of the unruly future. 

I take the unfashionable low-population side in 
discussions about future world population. The stand- 
ard position, and the most fully informed one, one 
ought to add, is that of the United Nations: 

Continuation of present trends gives 7.5 billion 
people in the year 2000: 

High variation 7.0 billion 

Medium variation 6.1 billion 

Low variation 5.4 billion 

Professor Donald Bogue of the University of Chicago 
has pointed out that the UN model for declining fer- 
tility has already been outmoded by events in large 
Western countries and small Eastern ones, where the 
birthrate has fallen quite a lot faster than the UN 
demographers expected, in Canada, the birthrate fell 
from 2.85 percent in 1954 to 1.77 percent in 1968— a 
rapid decline that followed a sharp, 17-year rise in 
birthrate and which started well before the introduc- 
tion of The Pill. At the same time the decline in the 
mortality rate was slow, so that the decline in the 
rate of natural increase was virtually as marked as 
in birthrate. If the world's present population were 
to follow the Canadian pattern of 1954-68 and then 
to stick at the 1968 figure, population at the end of 
the century would be around 5.25 billion. 

In the Soviet Union the birthrate has recently de- 



21 



don't 

plan on 

family 

planning? 



dined even more sharply, and has reached a lower 
level, than in Canada. Over the same period the Soviet 
death rate declined scarcely at all; today it is actually 
increasing. If the world were now to follow the Soviet 
pattern of the past 10 years and then stay at its 1967 
level of natural increase, world population in the year 
2000 would reach 5.1 billion. Since the rate of natural 
increase in Canada and the Soviet Union— as well as 
in other countries— is still declining, a figure of five 
billion people on earth on the eve of the 21st century 
might be a liberal estimate. 

At the same time, we are in no position to deny 
that many millions of couples during the next 30 years 
may decide they would like large families. The Rus- 
sians themselves may do so; their officials are wor- 
ried about the limitations on economic growth that 
a smaller population would impose. So are the 
French, who have shelved a law to permit the sale 
of female contraceptives. So are the Argentinians, 
whose government recently raised the state allow- 
ance for large families "to discourage birth control." 
So are the Tunisians, who have stopped the govern- 
ment-sponsored birth control program. And the In- 
dians, among the world's most fertile people, are 
resisting government family-planning programs in 
record numbers. Seven and a half billion may be a 
conservative estimate. 

So talk of six billion mouths to feed in the year 
2000 as a figure beyond dispute is ignorance or dem- 
agoguery, and maybe both. Nor do any of these fig- 
ures take account of the possibility of widespread 
plague, which in our time can spread round the world 
faster than doctors can hope to cure it, or global war, 
that patently thinkable possibility, or other forces that 
would rapidly reduce the world's population. 

If we decide that the future is not inevitable, it 
must affect our reaction to changes in the world 
around us. The increase in the smog index in major 
cities or in the phosphate content of rivers and lakes 
alerts us to the dangers of pollution and moves us— 
or should— to seek to remedy the causes. The best of 
the professional futurists have done well to remind us 




22 



a multitude 

of possible 

futures 



that we have to make the future. Olaf Helmer, a 
senior mathematician at the Rand Corporation, de- 
scribes the new attitude now developing: "The fu- 
ture," Helmer says, "is no longer viewed as unique, 
unforeseeable, and inevitable; there are instead— it 
is realized— a multitude of possible futures, with as- 
sociated probabilities that can be estimated and to 
some extent manipulated." 

It is true that five points on a line give no guarantee 
that the sixth will also fail on the line: that is where 
the amateurs have erred. But the line can suggest a 
cone of possible locations for Point Six, and by study 
it may be possible to declare the outer limits specif- 
ically less likely. It is still necessary to remind oneself 
that it is human motives, whether conscious or un- 
conscious, that are going to place that point in posi- 
tion, not the operation of algebra. 

Before the futurists, we were perhaps too inclined 
to take a fatalistic attitude toward the morrow— an 
attitude at once blithe (because the future was felt 
to be unknowable and therefore beyond human re- 
sponsibility) and despairing (because it was felt to 
be uncontrollable and therefore threatening). The 
futurists, when they first appeared, were thought by 
many people to be superhumanly knowing, even 
omnipotent; much as the first psychologists were 
expected to reveal all the secrets of the human psy- 
che. With a collective sigh of relief people aban- 
doned their blithe, despairing fatalism, flocked to 
what they supposed was the banner of powerful 
omniscience, and confidently looked around for the 
daily long-range future forecast. 

Both attitudes, which I have of course here carica- 
tured, seem to me to be wrong. The futurists have 
enabled us to recognize the value and potential of 
long-range planning, and are developing means of 
considerable subtlety for anticipating the context, 
and the consequences, of our plans. This does not 
mean— and the futurists do not say— that the future 
is now under new management. It does mean that 
we must assume today a larger responsibility for what 
happens to us and our children tomorrow. D 




23 




MNO 



TUV 







A Light Is Bom 

A new light source from 

Bell Laboratories is one 

of the youngest in a proliferating 

family of solid state devices. 

by Marvin Elkoff 



For some years now, many areas of science and tech- 
nology have been dependent on new materials; cer- 
tain areas of progress could not have been achieved 
without development of these new materials. 

Oneareaof modern science which has been at once 
fertile and spectacular is that of solid state physics. 
Ever since the discovery of the remarkable semicon- 
ductor qualities of silicon and germanium, and the 
development of transistor technology after 1948, re- 
searchers have been carrying on basic work in semi- 
conductors. New devices are now available which do 
things never before possible. They evolve from the 
natural course of fundamental research. They can also 
solve specific technological problems. 

As the level of sophistication grows, specialization 
grows with it. Men become trained to do "nothing 
but" grow, build, invent, discover new materials. 
Other men do "nothing but" develop ways to use, 
test and measure these materials. Others see certain 
general practical applications for them. Still others in- 
stitutionalize these applications, fashioning them into 
working devices for our communications systems. 

In this new sociology of scientific discovery, every 
new technological development that changes our 



Mr. Elkoff is a free-lance writer who has authored articles on a 
wide range of subjects in Esquire, Holiday, McCall's, Cosmopol- 
itan, True, and other national magazines. 



25 



lives, however slightly, has been preceded by a thou- 
sand and one discoveries by groups of men in differ- 
ent countries and different laboratories and different 
sections of the same laboratory. After all, there are 
more scientists alive and working today than have 
existed in ail previous history. Of the several large 
Bell Telephone Laboratories installations, the Murray 
Hill, N.J., lab alone employs about 2,000 technical 
people; of these, more than 650 have Ph.Ds. 

Look toward a new light 

A group of these scientists first began work in the 
late fifties on the electroluminescent possibilities of 
semiconductors. These involve the electrical excita- 
tion of the atomic structure of a material so that it 
produces light. 

The physics of luminescence consists of discovering 
and describing the mechanisms of this excitation; the 
chemistry consists of discovering which impurities in 
the semiconductor crystal are important in the physi- 
cal processes and determining how to add or remove 
them to produce luminescence of a particular type. 

When this basic research was going on in the late 
fifties and early sixties, scientists did not envisage a 
specific use for this electroluminescence. Work was 
still in the realm of fundamental research into the 
nature of semiconductors, with the understanding 
that the growing or building of new semiconductor 
compounds could be very important. 

There were a few men who, because of their bent 
and curiosity, were working in materials research to 
grow purer and purer crystals of gallium phosphide 
and to discover ways to make it a more efficient lumi- 
nescent material. As several Bell Labs people have 
pointed out, the ambience of the Labs, especially in 
this basic research, has the speculative and intellectu- 
ally open quality of a university research group. The 
people who work in these areas deal in fairly abstract 
issues, and thereby exist far from the seats of power; 
it's a long way from the discovery of a new form of 
hole-electron combination to the manufacture of 
millions of phones. 



By 1962 John Gait, who was then and is now di- 
rector of the solid state electronics laboratory, saw 
enough promise in gallium phosphide to make it 
more of an "official" project and organized two 
groups to work on it. One of these groups, headed by 
Carl Thurmond, was composed of people oriented to 
discovering the basic chemistry of the problem, and 
the other was oriented more toward physics, toward 
understanding how luminescence occurs. Mr. Gait 
brought in David G. Thomas, who was then involved 
in research on other semiconductors, to head the 
physics-oriented research. 

These two groups were, of course, very dependent 
on one another. It was a reciprocal relationship in 
which the chemists gave the physicists materials to 
work with, and the physicists by their measurements 
and tests gave information back to the chemists which 
helped them refine their work. 

Communication between the groups was crucial, 
and scientists involved in the project credit Bell Labs 
management with wisdom in the selection of men, 
the arrangement of jobs, the proper rewards; they 
also feel the scientists involved had an unusual rap- 
port and a sensitivity to each other's needs. 

It is of note that the reference material appended 
to a technical piece by Mr. Thomas in a British physics 
journal on Gallium Phosphide Electroluminescence 
shows that nine out of ten pieces on that subject were 
written after 1963. 

From research to application 

while increased effort was put into gallium phos- 
phide research, it was still a very small operation by 
Bell Labs standards. As many Bell Labs administrators 
have pointed out, there are scores of research projects 
in promising stages. But not every one can be backed 
fully. Management must place emphasis on what it 
thinks is the most promising of the promising. So, 
while the research people had started "pushing it at 
the device development area" in an attempt to elicit 
greater interest, the reaction from management was 
mainly one of "calm interest." What the research peo- 



26 



pie had by 1964 was, in their own haif-joi<ing words, 
"after all, just some crummy little crystals, with lights 
that weren't all that bright." But they, in their close- 
ness to the project, could begin to foresee the future. 
They were moving out of the realm of pure research 
toward some general application. They felt they were 
on to a genuinely new source of light with untold 
possibilities for visible display. They also felt that they 
could steadily increase the efficiency of the diodes 
so that they could produce a practical device, though 
at that point there was no readily apparent use the 
Bell Labs management could see for the new lights. 
So, while researchers had some interesting little 
diodes which could produce both red and green light 
—a significant advantage— the official reception was 
not yet overwhelming. 

it was not until two years later that there was a 
major transfer of effort. 

Interaction and action 

In looking back, the men involved in the develop- 
ment of the gallium phosphide diodes see four rea- 
sons for the 1966 change of direction, and one 
suspects this is a pattern in great industrial labs all 
over the world. First of all, researchers produced 
diodes of higher efficiency. Secondly, they, the re- 
search people, were constantly pressing the develop- 
ment people. Thirdly, there was a strategic sympo- 
sium held in 1966 to which leading Bell figures were 
invited, which analyzed the current state of gallium 
phosphide research; needless to say, it had a very 
optimistic ring to it. Fourth, the research people put 
together a Trimline® phone which had its buttons 
illuminated by a dozen diodes, and showed how little 
current was needed to light them: they had a con- 
crete, dramatic display. 

Sell the product 

In other words, as idea people seem to be learning 
in every sphere of life, ideas do not necessarily sell 
themselves. They must be sold. A bit of the promoter 
lives in everybody. But no idea can be sold unless 



its time has come. And two things had happened 
which made the gallium phosphide diode seem even 
more promising than it had two years before. These 
were development of silicon integrated circuit tech- 
nology, and the resulting electronic switching circuits. 
In the traditional multiline telephone, lines avail- 
able on the phone are selected by a mechanical 
switching and locking apparatus, the mechanical 
"keys," which appear as buttons across the base of 
the phone. Since all logic functions are wired into 
the telephone set, a bundle of 50 wires is required 
for every six-line set (200 for a 30-button switch- 
board). Services are assigned to individual buttons 
by the installer; the button corresponding to an active 
line is indicated by a light from an incandescent lamp, 
which consumes 400 milliwatts and is operated on 
local power. Now, with the electronic multiline 
phone system in which logic functions and power 
supply are contained remotely in central control 
equipment, nonlocking buttons will be used, with 
little or no movement and with electronic switching. 
Since logic functions are carried out in a distant cen- 
tral unit, the number of wires needed for each set 
can be reduced to only six; the services can be as- 
signed to a particular button from the central control 
unit. Since incandescent lamps now used require 
more power and operating voltage than the central 
unit can furnish, the new system would require solid 
state indicator lights, which operate on very low volt- 
age and miniscule current. 

The payoff in sight 

Moreover, aside from such inherent advantages of 
solid state devices, there is the advantage of compati- 
bility with the increasingly common tiny integrated 
circuits which operate at low voltages, low power 
levels, high speed, and are mounted directly on cir- 
cuit boards. The size, electrical performance and proc- 
essing technology of gallium phosphide diodes are 
compatible with these, while conventional light 
sources would present serious interface problems. 
Gallium phosphide now had an unbeatable parlay 



27 



going for it: inherent value, intellectual salesmanship, 
and "happy" circumstances. Bell Labs decided to 
mobilize a more intensive effort behind the effort 
to make the gallium phosphide diode increasingly 
efficient and, eventually, a manufacturable and com- 
mercially feasible product. It was moved into the 
development stage. 

Carl Thurmond, one of the men most intimately 
involved with the project in its materials research 
stage, moved over to the development end to super- 
vise this part of it. Later, David Thomas, who had 
played a vital role as leader of the physics-oriented 
part of gallium phosphide research, also moved over 
to the development area, and now has overall charge 
of this and a wide variety of other materials develop- 
ment projects. 

This was puzzling to an outside observer, who had 
already been impressed with the specialization of 
roles at Bell Labs. 

Closer to the world 

It was explained that the work of bringing gallium 
phosphide closer to a usable form was an extension 
and intensification of the experimentation that had 
been carried on, and therefore not, in this instance, 
a new specialty for the people involved. But it was a 
new psychological specialty for them. It is perhaps 
true that at a certain point in time the interest of many 
scientists shifts from pure research to research closer 
to technology itself, closer to the "world." Occasion- 
ally there may be something about pure research 
which makes the researcher feel that he is missing out 
on something else the world offers. 

Whatever the reason or combination of reasons, 
the push worked. 

Two basic things had happened. First, crystals of 
gallium phosphide had been produced of a purity 
and regularity that made them seem a manufacturing 
possibility. And second, they had a quantum effi- 
ciency of one percent, which was the minimum the 
researchers had been striving for. Assembly tech- 
niques were also advanced. In a multiline phone, for 



example, six diodes can be mounted by thermocom- 
pression bonding to a ceramic circuit board, and the 
reflectors for these diodes can all be contained in a 
single metalized cover plate. The resulting assembly 
is highly effective as an indicator light up to ten feet 
from the telephone at high levels of room light, using 
only five to 13 percent of the power now required 
for incandescent lamps. 

Diodes with the quantum efficiency of one percent 
are now being evaluated in an electronic telephone 
system at Mountain Bell in Phoenix, Arizona. These 
diodes, interestingly enough, are made at a pilot man- 
ufacturing setup in the Bell Labs itself, under the 
supervision, among others, of erstwhile researchers 
Thomas and Thurmond, which brings them a long 
way toward direct application of their basic work. At 
the same time. Bell Labs recently reported the pro- 
duction of diodes with greater than seven percent 
quantum efficiency. And it is, of course, the same 
research and development group responsible for this 
advance. Meanwhile, Western Electric, the manu- 
facturing arm of AT&T, and its labs have become ac- 
tively involved in research into the gallium phosphide 
diodes. So what had started with a few men working 
alone has now become a many-sided industrial opera- 
tion, with research operating at every step along the 
way, from basic crystal research to its functioning 
within a commercial phone system. 

Light up the future 

The heart of the problem which lies ahead poses 
the direct connection between basic research and 
manufacturing feasibility. For what the researchers 
must now develop is a crystal of such purity and such 
regular dimensions that 4,000 chips of .015 mil can be 
produced from one square inch of gallium phosphide 
—and at reasonable cost. If such a crystal can be pro- 
duced—and there seems little doubt that it can— the 
gallium phosphide diodes will become economically 
practical competitors of the tungsten bulb. 

Indeed— though this is far in the future— they theo- 
retically can become a new source of light. D 



28 



c 



JAZZ MAN 
W€¥S AT 



ole Porter once raised the musi- 
cal question, What Is This Thing 
Called Love? Today, a generation 
that grew up on his music — and 
that of Jerome Kern, George Gersh- 
win, and Rodgers and Hart — is 
asking, "What is this thing called 
rock?," a query as complex as 
Porter's in its own way. 

Above all other considerations 
rock is definitely the music of to- 
day's youth, and its importance to 
them is more social than musical. 
It is their milieu, or "scene" if you 
will, one that sets them apart from 
the values and attitudes of the 
adult, establishment world in a 
more emphatically schismatic 
manner than ever before. But if it is the music of 
youth, that doesn't mean that adults are not partici- 
pating in it, especially on a business level. 

This doesn't irritate me as much as the writers who 
keep trying to tell me how artistic rock is. True, the 
quality of rock has improved greatly since the days 
when Bill Haley gave us a kindergarten version of Joe 
Turner, but outside of the Beatles it hasn't offered 
anything substantial enough to turn the head of some- 
one with a more sophisticated listening background. 
I approach rock as I do any music, on its own terms, 
but I have been following jazz since I was nine years 
old and frankly admit that it has prejudiced my ear. 

In being aware of jazz for most of my life, I have 
also been drawn to other forms of what some now 
call "the black musical experience." If I want to get 
into some blues, I'm going to gravitate toward Sonny 
Boy Williamson or B. B. King before I listen to some 
kid from The Isle of White imitating a black man, 
sincere or skillful though the imitation may be. 



Mr. Ciller, associate editor of down beat since 1967, has written 
hundreds of album notes tor jazz records, produced the jazz in 
the Garden series at the Museum of Modern Art and authored 
three bool<s, one on "jazz Masters of the Forties." 




maSi 



bylraeitlcr 



Not that the interest in black music 
hasn't been a good thing. (It is 
ironic that it took groups of young 
Britons to awaken white America 
to its own black blues heritage.) 
Some performers, like Janis Joplin, 
feel that patterning themselves 
after black players and singers 
helps them to achieve a freer, per- 
sonal expression later on. This is 
trueof any musician, artist or writer 
—unless he is exceptional— who 
must first learn from exemplary 
models before going on to create 
something in his own image. And 
if someone wants to sing or play 
the blues, he definitely has to go 
to "Soulville" to find out what it's 
about. It's environmental, as proven by the natural, 
unpretentious authenticity of singer-pianist Mose 
Allison, a white man, raised in the Delta country 
around Tippo, Mississippi, who was deep into the 
blues long before the mod Britons crossed the pond. 
The mass of rock fans may overtly act and dress in 
today's "in" style, but the majority of them are still 
no hipper, as applied relatively within their contem- 
porary music scene, than the pop fans of yesteryear. 
Frank Zappa, den mother of the Mothers of inven- 
tion, doesn't hold their taste in very high esteem. In 
an October 1969 down beat interview, he said: 
"Those kids wouldn't know music if it came up and 
bit 'em. Especially in terms of a live concert where 
the main element is visual. Kids go to see their favorite 
acts, not to hear them. . . ." 

Rock has a pervasive beat and the audience re- 
sponds to it on a primal level. The excessive amplifi- 
cation of many groups succeeds in bending minds by 
hermetically sealing its own total environment inside 
the listener's head. The high decibel level often ob- 
literates the lyrics, which more often than not are 
superior to the simplistic melodies. In a culture where 
soup cans and giant papier-mache frankfurters have 



29 



been heralded as art, it is no surprise to see rock re- 
introducing the most simpering i<ind of banalities of 
the early 1950s as "oldies but goodies," with the im- 
plication that, with rock having reached a certain 
status, these early pieces are now "classics." 

Rock me eight to the bar 

Rock is a mixture of several musics. Originally it 
drew from rhythm and blues (now called "soul" mu- 
sic) and country and western. Later it added folk, 
baroque, jazz and anything else it could assimilate. 
Since its inception it has become a more unified, 
homogeneous expression within its own boundaries, 
despite the different forms with the various appella- 
tions such as acid rock, folk rock, etc. It has become 
the pop music of our society. If the Tony Bennetts 
and the Peggy Lees are performing and still earning 
good money, it is because they are working to another 
generation still very much alive, and represent the 
pop music of a well-remembered past. 

In the Swing Era, jazz was an important element in 
the big bands that dominated America's musical en- 
tertainment, but it would be erroneous to say that it 
was completely the popular music of this country. 
In the mid-1950s, before the advent of the Kingston 
Trio's packaged folk music, people like Dave Brubeck 
and Gerry Mulligan found acceptance among college 
students, but the real giants like Clifford Brown, 
Sonny Rollins and Miles Davis appealed to a relative 
minority— even among black people. (Davis is popular 
today because he has been a great, resourceful, at- 
tuned talent over a long period of time; white Amer- 
ica is more aware of black America; and black Amer- 
ica is discovering itself.) 

In the 1960s jazz— its new, younger players more 
committed to "free," non-chordal playing — lost a 
great part of its potential young following to rock. 
Jazz enjoyed its greatest popularity when it was dance 
music. The ideas that Lester Young was playing on 
his tenor saxophone were not the reason he was play- 
ing to full houses. It was the rhythm that the Count 
Basie band was laying down behind him. 



Some people in jazz have scoffed at the success 
of the rock group called Blood, Sweat and Tears, 
claiming that there is really nothing very musically 
daring or different about them. Others, citing the 
fact that they are utilizing horns (trumpet, trombone 
and alto saxophone) rather than the heavy guitar 
orientation of preceding rock groups, and incorpo- 
rating jazz techniques (several members were jazz 
players before they ventured into rock) are gladdened 
by their wide acceptance. 

Rock, for all its popularity, does not always make 
money. For every successful group there are hun- 
dreds of less-than-mediocre combos that have been 
able to tape at least one album in the record com- 
panies' relentless search for hits. Employing a scat- 
tershot approach, the executives figure that if they 
score with one hot group, it will surmount all the 
failures and then some. One major label proved this 
theory faulty and is reputed to have lost $4 million 
in one year. Whether the figure is accurate or not, 
it was definitely red ink, and heads rolled rather than 
rocked in the front office. 

Now hear this 

Electronically amplified instruments, especially 
guitars and keyboards, have been a very salient fea- 
ture of rock. With the use of attachments such as the 
Varitone and the Multivider, saxophones and trum- 
pets have been amplified and their voices duplicated 
both an octave above and one or two octaves below. 
They have even been made to sound like other instru- 
ments. This gimmickry with horns has occurred, oddly 
enough, mostly in jazz, though on a limited basis. 

One jazz group which features an infusion of rock 
attitudes and heavy amplification is the trio of drum- 
mer Tony Williams. He plays highly energetic drums, 
and his group mates play highly souped-up electric 
guitar and electric organ. A half hour of listening to 
them in a club one night almost accomplished what 
no rock group— even in the maelstrom of the Electric 
Circus— had done. That is, it deafened me. For at least 
one half hour after leaving the club my ears ached 



30 




31 



from the sheer volume of sound and high pitch. 

On the other hand, Williams' former employer, 
trumpeter Miles Davis, has made inventive use of an 
electric piano. While his music is not rock, it effec- 
tively combines feelings from the different musics of 
today. Many of the young black jazzmen, inspired 
by alto saxophonist Ornette Coleman and the late 
tenor saxophonist John Coltrane, don't want their 
music to be called jazz, a word they equate with 
"nigger." Just the fact that a man is black and he is 
playing a trumpet or saxophone, instruments histor- 
ically associated with jazz, does not mean he is nec- 
essarily playing jazz. Some have termed the expres- 
sions "New Black Music," and certainly many of the 
pieces played by saxophonist Pharoah Sanders, a 
disciple of Coltrane, with their religious-folk quality, 
are closer to an Afro-ethnic music than to jazz. 

A lot of young black people are buying Sanders' 
records, but thousands more are tuned in to James 
Brown, the number one record seller in the "soul" 
field. Where some Negro performers are big in the 
white pop market. Brown is almost exclusively the 
property of the black people. A dynamic singer and 
dancer, who also plays a driving, if uncomplicated, 
electric organ, he is king of a musical area from which 
rock draws much inspiration. 

The poet of now 

The black kids have their heroes and the white kids 
theirs. One of the latter is Bob Dylan, who emerged 
from the folk tradition of Woody Guthrie to the point 
where he now performs with electronically amplified 
rock backing. At first his fans objected to the new 
format and he was booed, but now he has reached 
new popularity, and the musicians who accompanied 
him, known as The Band, have made a strong impres- 
sion of their own in rock circles. While Dylan may 
not be the "poet" his greatest admirers call him, 
he is a man whose personal material, ranging through 
a variety of contemporary subjects, has been a major 
factor in his appeal. 

Today, youth is singing about racial prejudice, war. 



drugs, topics that were never Hit Parade material in 
the past. They are still singing about love, but with 
the June-moon syndrome far behind them. 

It all concerns their generation and the way it looks 
at life. The adult world may tune in but they are not 
the primary intended receivers. Janis Ian, whose best 
known song. Society's Child, deals with interracial 
teenage romance, has often been concerned with 
parental attitudes but it is about, not to, her elders 
she is talking. When Grace Slick sings her White Rab- 
bit with the Jefferson Airplane she is relating today's 
drug culture to Alice's Wonderland. Steve Stills with 
the Buffalo Springfield sings of youth versus the police 
in For What It's Worth. 

Nonmusic, not music 

We have seen in 1969 the power and attraction of 
rock in the phenomenon of Woodstock, but the mass 
gathering of the clan again underlined the social, 
non-musical aspects. Robbie Robertson of The Band 
was quoted in Rolling Stone (December 13, 1969): 
"The event was not the music, the event was the peo- 
ple. We were like Muzak." 

As the 1970s unfurl, we have, on one hand, the 
Moog Synthesizer, an elaborate electronic network 
which can be programmed to reproduce an infinite 
variety of sounds, effects and rhythms, and which 
also can accommodate the input of other instruments 
and voices. On the other, there is The World's Great- 
est Jazzband, a collection of excellent, traditionally 
oriented musicians, assembled by millionaire patron 
of the arts Richard Gibson. In addition to playing 
classic jazz literature, the WGJ is attempting to inter- 
est both generations by rendering its own interpreta- 
tion of today's material. In between the Moog and 
these traditionalists lies a vast area in which many 
musics are crossing and melding. Rock is here to stay 
for a while, even if a cyclical movement brings an 
earlier form of jazz rushing back into the rapids of 
the contemporary mainstream. No one can accurately 
predict what or when shifts will occur, but, as Dylan 
has stated, "The times they are a-changin'." D 



32 



BELL 



reports 



Bubbles May Be New Breakthrough 

Magnetic bubbles, smaller than the 
diameter of a human hair, may open 
the door to far-reaching advances in 
computer technology and telephone 
switching by providing swift, compact 
and inexpensive storage and process- 
ing of data. 

Under development at Bell Tele- 
phone Laboratories, the bubbles are 
tiny cylindrical magnetic domains that 
can be formed in sheets of orthoferrite 
crystals, rare-earth iron oxides grown 
as crystals for the first time at the Labs. 

These domains are moved around 
at high speeds and in precise patterns 
to represent coded information, do 
computations and switch signals— all 
on a small chip of solid material. They 
can be propagated, erased and repli- 
cated, and their presence or absence 
is easily detected. Memory densities 
of about one million bits of informa- 
tion per square inch are possible. 

In present computer and communi- 
cations technology, connections be- 
tween electronic components are a 
major factor in costs, but in the new 
technology the logic component and 
storage component are one, with no 



interconnection needed. Moreover, 
the energy required to move or switch 
a bubble is only a fraction of that 
needed to switch a transistor. Data 
rates of three million bits per second 
have been demonstrated. 

Bell Labs scientists believe the bub- 
ble technology may stand today where 
transistor technology stood when it 
was announced at the Labs in 1948. 
Like the transistor then, magnetic bub- 
bles have great potential, but more 
time and hard work will be needed 
to make them practical. 

Closed Circuit TV in Living 3-D 

A live television transmission tech- 
nique devised at Bell Telephone Lab- 
oratories enables three-dimensional 
scenes in motion to be viewed without 
special glasses on some closed-circuit 
facilities. 

The 3-D scene is transmitted as a 
series of slightly different 2-D images 
that convey depth information. These 
images are combined at the receiving 
end of the system to reconstruct the 
original 3-D scene. 

Key to the new method is a pair of 
spherical mirrors, called varifocal mir- 
rors because they are made of flexible 
mylar which enables their centers to 
move rapidly in and out, from concave 
to convex shapes. 

Although the new technique re- 
quires several times more bandwidth 
than commercial television, it has po- 
tential applications for 3-D data trans- 
mission in specialized scientific and 
medical fields. 



DDT Out, Pollution Control In 

The Bell System has discontinued the 
use of DDT in the 10,000 gallons of 
insecticide it uses annually in company 
buildings and other facilities. Another 
chemical, pyrethrin, is substituted in 




In an attempt to alleviate reverberation 
which sometimes causes telephone confer- 
ence calls or speakerphone (hands-free) 
calls to sound as if they're being made in 
a barrel, BellTelephone Laboratories scien- 
tists are investigating acoustical factors im- 
portant in communications systems. Here 
two researchers have set up shop within a 
wooden structure inside an echoless test 
chamber at Murray Hill, NJ. 



the formula used in producing the 
System's standardized insecticide. 

Tests show that the new formula, 
which is slightly higher in cost, is often 
more effective than DDT and will be 
neither poisonous nor irritating to man 
when properly used. 

Other forms of pollution control 
and abatement are also under study 
by Bell System companies, particularly 
Western Electric, the manufacturing 
and supply unit. 

Western has begun waste treatment 
projects at eight locations, which, 
upon completion, will represent an 
investment of some $7 million. The 
company has also started two air pol- 
lution control projects that will cost 
about $4 million and, over the next 
five years, will spend some $10 million 
for water pollution control. D 



©ATgT 



American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

Washington, D.C. 
Permit No. 43083 



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March/April 1970 



The Patent— The Inventors' Invention 
Some Cities are More Equal 
Broadway and the Balance Sheet 
Voices Across the Generation Gap 
Shedding Light on Fiber Optics 



BELL 



telepHohe magazine 




AUTHORS IN THIS ISSUE 



Ron Abler ("What Makes Cities Impor- 
tant"), Assistant Professor of Geogra- 
phy at the Pennsylvania State Univer- 
sity since 1967, began life somewhat 
farther west, in Milwaukee. He lived 
there and in St. Paul, Minnesota until 
he moved to the Diamond State. He 
received his Ph.D in Geography from 
the University of Minnesota, in 1968. 
He has a wide general interest in the 
geography of intercommunications 
systems (postal and telephone), and 
has done much research in that field. 
His particular interest lies in studying 
the effects such systems will have on 
the spatial behavior of people and 
their settlement patterns in the future. 



Martin J. Sikora ("Progress Through 
Patents"), a native New Yorker, has 
been a professional journalist for 14 
years. Since November, 1967, he has 
been a member of the Financial News 
Section of the Philadelphia Inquirer. 
Prior to that he spent more than nine 
years covering politics with United 
Press International, first on the staff of 
the Harrisburg, Pa., Bureau and later as 
manager of the Trenton, N. J., Bureau. 
A 1956 graduate of New York Univer- 
sity, Mr. Sikora says that for years he 
has been interested in patents and the 
patent process, and so found research 
for the present article both congenial 
and fruitful. 



Richard W. Hall ("Business and the 
Box Office"), some time after being 
born in New York City, was graduated 
cum laude from Harvard College in 
1948. He has viewed the performing 
arts dilemma from both sides of the 
fence: as a playwright, as a film-maker, 
as a music critic for Musical Courier, 
and also as a public relations man in 
several large corporations, including 
Western Electric. He has published ar- 



ticles in such general magazines as 
Saturday Review, This Week, Nation's 
Business and The Village Voice, and 
has authored two books. How to Read 
the Bible and Putting Down Roots. 



Saul David ("The Lost Paradise and the 

New Liberation"), originated in Spring- 
field, Massachusetts, and some years 
later, following an artistic urge, at- 
tended the Rhode Island School of 
Design. Subsequently the U.S. Army 
took him on a four-year tour of the 
Middle East, which included stints on 
both Yank and Stars & Stripes. Back in 
civilian life, he worked in newspapers, 
radio, and with Bantam Books, which 
he left, after a 10 year tour, as Editorial 
Director. Then came Hollywood, 
where, he says, he was "hired and 
fired by Columbia, Warner Brothers, 
20th Century Fox, ABC and Universal 
Pictures — in that order." He produced 
Von Ryan's Express, Our Man Flint, 
Fantastic Voyage, In Like Flint, and the 
still-unreleased Skullduggery. His pres- 
ent major ambition is to be the first 
Hollywood archaeologist. 



Rita Fuhr ("The American Dream and 
the World Imperative"), who points 
out that she hasn't "really had time 
in my 21 years to build up a large 
biographical background," was born 
and raised in San Francisco and is now 
a junior at San Francisco State College, 
where she is majoring in English. 
Working there as an honor student on 
scholarship, she intends at the mo- 
ment ("it changes daily") to go on for 
her M.A. and teach at the college level. 
Her special interests include the dance, 
especially primitive jazz, and art— "1 
dig multi-media things." She now lives 
"in a crazy basement apartment with 
Merlin, my Texas desert turtle." 




Abler 




David 




BELL 

telephone magazine 



VOLUME 49 NUMBER 2 MARCH/APRIL 1970 

2 Progress Through Patents 

by Martin ). Sikora 

An old invention, the patent, continues to benefit innovators 
seeking new additions to our material good. 

10 What Makes Cities Important 
by Ron Abler 

Why some urban centers have become dominant over 
others suggests some intriguing possibilities for the future. 

16 Business and the Box Office 

by Richard W. Hall 

The unlikely coalition of business and the arts, 

vk'ith a dash of imagination, is offering new hope for 

cultural projects in financial straits. 

20 The American Dream and the World Imperative 
by Rita Fuhr 

Views of a 21-year-old college student. 

26 The Lost Paradise and the New Liberation 

by Saul David 

Comparison of two generations— by a middle-aged critic. 

30 New Path for a New Light 

A pictorial study of research with fiber optics 
as a possible transmission medium for laser beams. 

32 Bell Reports 

A summary of significant developments in communications. 



Tim H. Henney, Editor 
Donald R. Woodford, Managing Editor 

Al Catalano, Art Director 
R. lames Kercheville, Assistant Editor 
Robert A. Feinstein, Assistant Editor 



H. I. Romnes, Chairman of the Board and President 

John D. deButts, Vice Chairman 

Robert W. Ehrlich, Secretary 

John ). Scanlon, Treasurer 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y., 10007 212-393-8255 







^^* -^ • • « • • * 







- ' f 



'"./^./^f,'' 



y /P. 






Today's innovators, always seeking new 
additions to our material goods, benefit 
daily from an old invention— the patent. 

Man, the questing animal, always seeks to improve 
his condition by refining or improving past break- 
throughs, or striving to achieve new ones. The Indian 
who first waved a blanket over his fire or the African 
whose drum beat out the first long-distance message 
through the jungle, are as lost to the ages as the in- 
ventor of the wheel. But those nameless innovators' 
descendants in modern dress cannot only garner spe- 
cific credit for their inventive genius, but can also 
trace the bases of their accomplishments and use 
them to press ahead to new conquests. The enabling 
device— itself a brilliant invention— is the patent. 

Legally a patent grants its holder the exclusive right 
to use or license others to use his scientific achieve- 
ment for a limited period— for 17 years in the United 
States. It gives the inventor protection, the relative 
peace of mind that others cannot safely pirate and 
capitalize on his hard work. But in a scientific sense, 
the invention represents the light at the end of the 
long road of research and development. 

For inventions don't just happen. Despite the occa- 
sional happy accident or instant brainstorm, an in- 
vention usually is the conclusion of hard, painstaking 
work, using past achievements to score successes in 
untried territories. And the entire process starts with 
a definite goal in mind to fill a definite need. 

In effect, this sums up the innovative process of the 
Bell System, one of the foremost corporate partici- 
pants in the patent system. The Bell System in many 
ways owes its very inception to a patent— that granted 
Alexander Graham Bell for the telephone in 1876. As 
it has grown to operate the world's most extensive 
communications system, it has maintained a steady 
quest for ways to improve it. Herein lies the motivat- 
ing force behind the constant flow of scientific 
achievements from the System's varied components 
throughout its nearly a century of existence. 

In operation, the Bell System's innovative process 
is embodied in a chain of interaction focusing its 



considerable resources on the improvement of com- 
munications to meet the needs of an advancing man- 
kind. Thus Bell Laboratories, the System's research 
and development arm, develops new products; West- 
ern Electric manufactures many of them and the 
associated operating telephone companies use them. 

The entire process starts with a determination of 
need— need for a new product: a stronger one, a 
smaller one, a more efficient one, a more economical 
one. This need may be determined by Bell Labs or it 
may be handed up from the field. 

"Our operating companies study what people need 
and want," says Dr. William O. Baker, vice president 
for research and patents at Bell Labs. "These needs 
are very exactly translated into scientific and tech- 
nical terms." 

With the need defined. Bell Labs sets to work. 

Next link in the chain is Western Electric, which 
takes the Laboratories' development incorporating 
the invention and produces it economically for wide- 
spread use in the System. "We've got to find pro- 
cesses and apparatus for transforming laboratory prac- 
tices into commercially feasible techniques," says 
Herbert J. Winegar, Western's general patent attorney. 

Finally, there are the telephone companies who 
operate and maintain the finished products as part of 
the communications network. 

As measured by patents, this system has produced 
impressive results. Bell System personnel have re- 
corded over 30,000 United States patents, and more 
than 9,000 are still in effect. 

As might be expected. Bell Labs is the biggest pro- 
ducer of inventions, accounting for more than 6,400 
of the patents now in effect. The total, since its forma- 
tion in 1925 as a company jointly owned by AT&T 
and Western, is more than 14,000 United States pat- 
ents, or an average of approximately one for every 
working day of those 44 years. More than 2,300 un- 
expired United States patents are held by Western 
Electric — largely in the areas of production tech- 
niques and equipment. The operating companies— 
theoretically the users rather than the innovators- 
have contributed a number of patents also, chiefly 



Q/f^a/UhiQ^o/iAotay 






in the fields of service and operating improvements. 

More impressive than the sheer numbers is the 
revolutionary quality of the inventive output. From 
the Bell System have come basic inventions relating 
to transistors, talking pictures, high fidelity sound, 
laser devices, the solar cell, television, the communi- 
cations satellite and many more, plus their offshoots 
which have drastically changed the shape of com- 
munications. Many have contributed greatly to tech- 
nology only indirectly related to communications. 

But none of this would be possible without pro- 
viding the proper incentives for technical personnel 
or creating the proper environment for their work. 
Dr. Baker feels this is where Bell has a definite edge. 

"It's the heart of Bell Laboratories," he says. "It's 
our major trade secret. 

"We provide the opportunity to apply one's total 
and intense talent to a worthy aim— to socially signifi- 
cant national and international progress. It keeps 
these fellows going." 

Dr. Baker says Bell's research people basically are 
challenged to look for innovation in a system that 
merges "the most remote science with the aims of 
the Bell System." 

"Our whole theme is that these aims of systems 
operators, engineers and scientists are completely 
compatible and feed on each other," he says. "The 
dualism or schism which could be so disturbing— we 
don't find any basis for it." 

Utilizing this approach. Bell Laboratories conducts 
a relentless hunt to adapt exotic, often untried, sci- 
entific theories to practical use, and to continually 
fashion improvements. 

Dr. Baker cites the case of integrated circuitry and 
microelectronics, essentially outgrowths of the Bell 
Labs-developed transistor. The first rudimentary inte- 
grated circuits were Bell products. The science took 
another stride forward when Bell Labs came up with 
masking techniques for creating circuit patterns. Out 
of this came the beam lead technique, and other sub- 
sequent refinements which provide efficiency and 
reliability greater than that of much larger devices. 



In turn, the search led off in another direction— for 
better materials to do the job. One result has been 
development of new ceramic bases or substrates, and 
practical ways of making them in quantity. 

To Dr. Baker this illustrates the endless trail that 
science travels, the employment of one achievement 
to reach another. 

"The idea of a plateau in science is just nonsense," 
he says. "The vitality of this subject— the open-ended- 
ness and continuity — seems absolutely unlimited. 
There is no end, no tapering off in sight anywhere." 

Keeping the inventive process going means putting 
all possible resources and support behind the scien- 
tist. But it also means knowing where to gently call 
off a project that is heading up a blind alley. 

According to Dr. Baker, Bell Labs uses the "glassy 
eye treatment" when a project appears to be going 
sour. "We make it a community enterprise," he says. 
"The glassy eye is the most effective deterrent known. 
It's a tremendous help having a large enough com- 
munity to do this." 

Dr. Baker firmly supports the patent system, say- 
ing that patents exist to serve innovation and empha- 
size "merit rather than solely controlling innovation 
by just cost in dollars and cents. It would be very 
chaotic without such a system," he says. 

"It makes it possible for the private enterprise to 
be a little bit crazy, to take risks. There's a payoff 
when it's successful." 

Western Electric's Winegar, like most Bell System 
patent attorneys, a graduate engineer as well as a law- 
yer, thinks patents and inventions are fine but is 
more concerned with Western's traditional emphasis 
on "good engineering." 

"Most inventions are spin-offs of good engineer- 
ing," he says. "People in the process of trying to solve 
problems come up with inventions as by-products of 
their work. This is not a conscious effort to make in- 
vention; it is a conscious effort to solve a problem. 



The culmination of years of innovative effort, Picturephone* serv- 
ice is slated for the public in mid-1970. Western Electric's Indian- 
apolis Works prepares to assemble the new/ sets. 






Good engineering is what we're really after." 

For example, Mr. Winegar says the invention prob- 
ability is much higher in the "new arts area" than in 
a relatively "well-worked field" such as wire and 
cable manufacturing. Yet, he says, the man in wire 
and cable manufacturing may come up with a "superb 
engineering approach" which may not be patentable. 

But whether its work results in a patent or not. 
Western too must be continually striking out in new 
directions to develop new production techniques and 
refine old ones. Often it must be ready before Bell 
Labs has finished development of a new product. "We 
are given a charter that requires us to look out ahead," 
he says, "at what problems lie over the horizon. 

"We have to anticipate the manufacturing prob- 
lems of what Bell Labs has under consideration. We 
can't wait until the day Bell Labs comes up with it." 

Guided by this objective. Western maintains a 
major facility, the Western Electric Engineering Re- 
search Center at Princeton, N.J., which is devoted to 
research and development. 

However, work does not stop with the initial proc- 
ess and efforts continue to improve it, especially in 
the area of cost reduction. Mr. Winegar points out 
that each major Western facility has a group of engi- 
neers who work constantly on developing more eco- 
nomical production methods. He notes that, while 
rising copper prices exert a strong upward force on 
cable and wire costs. Western's prices for these prod- 
ucts have risen at only a fraction of the increase in 
the prices of other manufacturers. 

"Development is a continuing process," he says. 
"We are always looking for something better. Noth- 
ing is stagnant. Eventually, there may be no improve- 
ments needed in wire and cable but we just haven't 
reached that point. It seems as though someone is 
always coming up with something better." 

Norval S. Ewing, AT&T's general patent attorney, 
says the present trend within the operating compa- 
nies is to encourage their personnel to "work out 
for themselves the unique one-of-a-kind problems 
which do not have system-wide application instead 



of turning to Bell Labs. This should be the tendency," 
he says. "I feel there are many ingenious people 
around in this world. Invention often depends only 
on their exposure to a suitable problem and their 
incentive to solve it." 

This division of responsibility should not convey 
the impression that each of the three major compo- 
nents of the Bell System operates in its own vacuum, 
unmindful of the others' problems or requirements. 
On the contrary, major developments increasingly 
are becoming joint operations, involving two, and 
frequently, all three arms. Bell Labs, for example, now 
has a facility at each of Western's major manufactur- 
ing installations. 

But Mr. Winegar also notes that today's develop- 
ments are so rapid and so sophisticated that Bell Labs 
must always consider the commercial feasibility fac- 
tor of its products. In turn, Western's work may in- 
fluence Bell Labs' design of a product to make it more 
manufacturable. 

"You can't separate design functions from manu- 
facturing," he says. "They don't fit into neat little 
compartments any more." 

Similarly, within each organization there must be 
complete cooperation between the scientific and the 
non-technical personnel— particularly the patent at- 
torney. For it is the latter who ultimately determines 
whether the invention is enough of an advancement 
to warrant the filing of a patent application. 

"We maintain a close working relationship of at- 
torneys to clients," says Rudolph J. Guenther, Bell 
Labs'general patent attorney. 

Mr. Guenther's 84-man staff, all of whom have 
engineering degrees, including three Ph.D's, are de- 
ployed so that each area of Bell Labs has one or two 
attorneys permanently assigned to it. This permits the 
attorney to be available for consultation and provides 
the scientist a place to which he can bring his new 

Planning for the future is ttie essence of the task at Bell Labs. Here, 
a scientist studies key elements of a millimeter waveguide system, 
whicti, late in this decade, may transmit up to 250,000 messages- 
voice, TV, Picturepbone*, data-all at the same time. 




Photography: Dave Thomas 






development for immediate legal examination. 

Generally, a device may be deemed patentable if 
it is novel and not obvious to one skilled in the art 
to which it pertains. To determine this, the attorney 
conducts a thorough search of U.S. Patent Office files, 
including the scientific literature. 

Once past this hurdle, however, the new develop- 
ment must stand the test of whether it is economically 
important enough to warrant the sums that must be 
expended in the patenting procedure. While some 
are knocked out by this test, Mr. Guenther estimates 
that patents are obtained on 60 of every 100 new 
developments presented to one of his lawyers. 

Mr. Winegar says his lawyers listen to all inventive 
proposals from Western's technical people, turn some 
down immediately, but retain others for formal study 
of their patentability. Noting that Western, too, re- 
quires economic justification for its filings of patent 
applications, Mr. Winegar estimates that about one 
of every three developments put under formal scru- 
tiny reaches the patent office. 

"Our job is not to flood the U.S. Patent Office," 
he says. "We have obligations as lawyers to protect 
the public and the patent system from worthless 
patents." 

Still another dimension of the patent system is li- 
censing and cross-licensing, it is through this pro- 
cedure that innovative entities throughout the world 
exchange rights to use technical developments for the 
greater advancement of all concerned. 

The Final judgment of January 24, 1956, terminat- 
ing the Department of Justice's antitrust suit against 
Western and AT&T, requires that any applicant be 
licensed for any equipment under all existing and 
future U.S. patents of the Bell System. Patents issued 
prior to the judgment must be licensed royalty-free, 
and patents issued subsequently must be licensed at 
reasonable nondiscriminatory royalties. 



fat out in new technology is a recent Bell Labs discovery: tiny 
cylinder-shaped areas of magnetism formed by a strong magnetic 
field in certain materials. As an information-handling device, this 
may apply in communications and computer technology. 



Dr. Baker notes that one of the key reasons for 
supporting the patent system is that it "guarantees 
free disclosure." 

The Bell System is presently a party to about 1,100 
patent licensing agreements— 600 granting nonexclu- 
sive licenses under Bell System patents only, the re- 
mainder involving an exchange of nonexclusive 
patent licenses. The principal value to the Bell System 
is in insuring that it is free to use technology of others. 

The roster of companies involved in such agree- 
ments includes those both large and small, among 
them a "Who's Who" of the world's most scientifi- 
cally sophisticated enterprises. 

Mr. Winegar says the Bell System maintains a 
"strong international patent position" by filing with 
foreign governments as well as the U.S. to provide an 
additional basis for the exchange of licenses with 
foreign companies and governments. 

"It has given us through the years the assurance 
that we can put into the American telephone system 
the best technology available with a minimum of 
patent difficulty," he says. "They (other companies) 
invent things too." 

Mr. Guenther cites the transistor, which was un- 
veiled on a full-scale basis in the early 1950's and has 
gone on to revolutionize many industries, as an out- 
standing example of the benefits of making tech- 
nology available to the world promptly through the 
licensing of patents. 

All this points to a future of even sharper advance- 
ment than in the past and at a more rapid pace. 

Dr. Baker, for example, notes that development 
time on some of Bell Labs' most sophisticated prod- 
ucts has been cut to as short a period as from six 
months to a year. 

"We've done everything to compress that period," 
he says. "We've revolutionized the process. The com- 
bination of telecommunications progress and need 
always exceeds the pace of science and technology. 
We always seem to be a little bit behind. Which may 
be another way of saying that we shall probably never 
run out of things to invent." D 



What Makes 
Cities Important 

by Ron Abler 

Throughout history, people have lived in cities mainly 
out of necessity— to earn a living. Concurrently, the 
cities in vi'hich people lived were organized primarily 
to facilitate the activities of business and industry. 
The comfort, convenience and well-being of a city's 
residents were usually secondary considerations, 
overshadowed by the higher priorities of efficiency 
in business, industry and government. 

All of this may be changing. We may, in fact, be 
on the threshold of a significant break with man's 
urban past. The day may not be far off when elec- 
tronic media will permit us to have our urban cake 
and eat it too. Business and industry will be able to 
retain their efficiency, but not at some of the mone- 
tary, social and psychic costs which hit residents of 
today's high-density metropolitan areas. 

Certainly, such a far-reaching overhaul in this coun- 
try's living and working habits will not come over- 
night. A look, however, at the historical development 
of this country's urban centers and the reasons some 
have become more important than others suggests 
some intriguing possibilities for the future. 

Ask anyone today to name the most important city 
in the United States and he is almost sure to answer, 
with little hesitation. New York, or possibly Wash- 
ington, D.C. His reasons for answering so may be 
more reflex than conscious analysis, but the answers 
would be no less correct. The important question, 
however, is why have these cities gained their pre- 
eminence? 

Population size is almost universally equated with 
importance, and in most instances measuring popu- 
lation is an accurate way of assessing the more gen- 
eral importance of metropolitan areas. Because our 
cities are in competition with one another for busi- 
ness firms, manufacturing plants, educational institu- 
tions, government bureaus and the people these 
activities employ, population is a good surrogate 




10 




11 



measure of the relative importance of cities. 

in any era, the cities which are the best locations 
for the dominant economic activity attract more peo- 
ple and rise in importance. Conversely, cities which 
are good locations for activities out of step with 
the tempo of the times become less important. Their 
populations remain stable or decline as people seek 
the greater opportunities available elsewhere. Popu- 
lation provides a measure of importance, but it does 
not fully answer our questions: again, the main issue 
is not the number of people in a city but why they are 
there. The best way of answering the question is to 
find out what locations are the best places to carry 
on the kinds of activities which are dominant today. 
Until about 1840, the largest cities were great 
trading centers, and the importance of a city could 
best be evaluated by counting the goods which 
flowed into and out of its marketplaces. As manufac- 
turing became the dominant activity in our national 
economy, the largest cities were the centers which 
collected raw materials and sent out the greatest 
quantity of finished products. During the last 40 
years, services have become more important than 
manufacturing, and since 1950 information services 
have become the most important activities in the 
nation. Today, fortunes are made and society is man- 
aged on the basis of information and ideas. Our 
society cannot function without accurate and timely 
information, and our largest, most important cities 
are those which are major communication systems. 



Cities as idea interchanges 

To put it simply: cities are communication systems. 
They are functionally identical to intercommunica- 
tions media like the telephone and postal systems, 
because they make it possible for large numbers of 
people to have efficient access to each other's ideas 
and expertise. The decision makers clustered in large 
cities require data on the operations of the com- 
mercial, educational and governmental enterprises 
for which they are responsible. Thousands of em- 



ployees are required to gather, summarize and ana- 
lyze these data, and the same thousands of people 
disseminate the decisions and instructions produced 
by those at the top. Information and idea flows are 
the raw materials and finished products of the con- 
temporary metropolis, and the size and importance 
of a city is determined by the amounts and kinds of 
information flowing into and out of it, and by the 
way it is interconnected with other cities in the na- 
tional information flow network. 



Dominance and subordination 

Some cities are closely tied by large message flows, 
whereas others find it necessary to exchange infor- 
mation less frequently. To a large degree, the inten- 
sity of communication between two places is deter- 
mined by their size and the distance between them. 
We correctly expect that Atlanta and Miami will 
exchange more information than Atlanta and Den- 
ver, for example, because Atlanta and Miami have 
common regional interests. But in addition to being 
related to size and distance, information flows among 
cities are clearly also a response to relationships of 

The table below shows average daily telephone messages between 
the six largest cities in the nation. The highest number of outgoing 
calls in each row identifies the place to which the sending city is 
most closely tied for information ideas. Bold figures are used 
where the highest number represents messages flowing to a larger 
city, in which case the larger city would be the dominant location. 
Size can be measured either in terms of population or by messages 
generated (the totals listed in the right column of the table). 

To: 




New York 



Chicago 



Los Angeles 



Philadelphia 



Detroit 



San Francisco 



25,107 



11,841 



30,633 



7,623 



6,173 



21,105 10,484 27,359 7,790 5,320 72,058 



4,475 



3,991 



8,676 



1,869 



4,993 



1,353 



1,759 



15,767 



4,250 



1,305 



1,526 



513 



9,871 



1,755 



1,958 



456 



1,948 



16,616 



446 



349 



46,169 



35,992 



38,381 



19,933 



24,778 



12 



dominance and subordination between these cities. 
A study of the average daily telephone messages 
between the nation's six largest cities (see table) sup- 
ports the oft-stated generality that New York is the 
national communications and information capital. 
Chicago and Philadelphia, since they send their larg- 
est message volumes to New York, are direct subordi- 
nates of the primary center. Though Los Angeles 
interacts most intensely with San Francisco, the latter 
is the smaller of the two cities, thus the important 
linkage is that between Los Angeles and New York. 
Detroit on the other hand communicates most in- 
tensely with Chicago and is therefore directly sub- 
ordinate to Chicago and indirectly to New York. A 
similar analysis of the message flows among the na- 
tion's 30 largest metropolitan areas produces a 
somewhat broader picture of urban relationships. 
Most of the dominance relationships are what would 
be expected, except the surprising dominance of the 
Southern cities and Denver by New York rather than 
some other regional center. 

Management, information and expertise 

The 30-city view makes New York even more obvi- 
ously the national information center. Not only are 
Chicago and Los Angeles, the two secondary centers, 
subordinate to New York, the city also directly dom- 
inates numerous Eastern and Southern cities, as well 
as the Rocky Mountain metropolis. Chicago and Los 
Angeles dominate regional clusters of smaller cities, 
with the more solidly entrenched Chicago leading 
the sprawling California center in the number of cities 
subordinate to it. In the South, a regional clustering 
with Atlanta or Houston as a secondary center has 
not developed. Most of the cities of the South have 
joined the "Top 30 Club" only in the last several dec- 
ades, and regional linkages have not developed. 

Cities like New York, Chicago and Los Angeles 
became important information centers by a circularly 
casual process. Because they were places where im- 
portant information was abundant, they were attrac- 




tive locations for the management activities which 
required such information. The greater the number 
of management activities which clustered in these 
cities, the larger the amount of valuable information 
and expertise available there. Information centers 
create their own advantages, and it is difficult for 
lower level places to compete with those at the top. 
Because smaller places are relatively information- 
poor, they necessarily tend to remain that way, and 
cannot attract information-based activities. 

Activities which rely heavily upon information are 
highly concentrated in the largest metropolitan areas 
of the nation. Every year Fortune magazine compiles 
a list of the 500 domestic industrial corporations with 
the largest assets, and five additional lists which tab- 
ulate the top 50 banks, insurance companies, retail 
trade firms, transportation companies and utilities. 
Of these 750 concerns, 194 (25.9 per cent) have 



13 



chosen to locate their headquarters offices in the 
New York City area. The Chicago metropolitan region 
has been chosen by 72 firms (9.6 per cent), and Los 
Angeles contains 32 (4.3 per cent) headquarters 
offices. Together, the 30 largest metropolitan areas 
in the United States are the locations of the head- 
quarters of 563 (75 per cent) of the 750 enterprises 
on Fortune's lists. 

To manage these giant organizations, those at the 
top require access to accurate and up-to-date infor- 
mation on the operations of their firms. Because busi- 
ness activities are heavily dependent upon general 
economic and social health, they also need abundant 
data and professional advice concerning society and 
the economy. The concentration of management 
activities in large metropolitan centers reflects the 
amount of information and the number of skilled 
analysts available in such cities. Only 25 per cent of 
the organizations on Fortune's list can afford loca- 
tions outside our largest cities. To establish or retain 
their positions, most large firms feel they must locate 
their information-gathering and decision-making fa- 
cilities and personnel in large cities. 

Information for everyone 

Clearly, New York, Chicago and Los Angeles are 
the nation's most important cities. Certain people 
within them control tremendous amounts of wealth 
and productive capacity, and the decisions these peo- 
ple make on the basis of the information which flows 
into these centers affects us all, every day. There is, 
of course, one other very critical information center: 
Washington, D.C. Especially since the start of the 
economic depression of the 1930s, decisions made 
in Washington have had an ever- increasing impact 
upon the nation. In the 30-city study, however, Wash- 
ington did not appear as a high-ranking information 
center because much of the information flowing into 
and out of Washington is confidential. It moves 
through government operated channels, and thus is 
not included in the statistical analysis. Nonetheless, 
because of its unique position as the nation's capital. 




14 



Washington is an even more intensive communica- 
tions and information center than New York. 

As a city which attracts corporate headquarters 
offices, Washington's influence is almost nonexistent. 
Only 4 of the 750 firms in Fortune's survey have their 
headquarters there. On the other hand, the offices 
of a very large number of national organizations such 
as the National Education Association and the A. F. L.- 
C.I. O. are located in Washington. Because of their 
vital interests in legislative and regulatory decisions, 
such organizations must be well informed, and only 
in Washington can they adequately assess govern- 
mental trends and make their needs known to politi- 
cal decision makers. Because of its importance as the 
political information capital of the nation, Washing- 
ton, D.C., must be added to any list of today's most 
important cities. 

Corporate headquarters cluster in New York, Chi- 
cago and Los Angeles, and government and related 
activities are concentrated in Washington, D.C., be- 
cause communication is swift and important infor- 
mation is superabundant within such cities. 

But that is the picture today. What it may be tomor- 
row is quite a different story— not in terms of any 
decrease in communications channels in the cities, 
but in the increase of information availability else- 
where. Advances in information transmission may 
soon permit us to disperse information-gathering 
and decision-making activities away from metropol- 
itan centers, and electronic communications media 
will make all kinds of information equally abundant 
everywhere in the nation, if not everywhere in the 
world. When that occurs, the downtown areas of our 
metropolitan centers are sure to lose some of their 
locational advantages for management and govern- 
mental activities. 

It is hard to predict whether we will take advan- 
tage of future opportunities to disperse information- 
based activities. Although these are the most impor- 
tant occupations in most large cities today, cities are 
based on much more than communications efficien- 
cy. They are important cultural and social systems 



as well, and the technological possibility of dispersal 
does not guarantee that we will choose that option. 
But the possibility of living and working in the Rockies 
or on the Florida coast and at the same time being 
as well informed as if one were in Manhattan will be 
quite attractive to many people. 

Toward a new freedom 

If electronic media succeed in making information 
and intellectual expertise equally available every- 
where, a new set of places will become the most 
important locations in the national urban system. If 
information and ideas are ubiquitous, there is no 
longer a single best place for management activities. 
Every place is as good a location as every other. When 
they are no longer tied to the inhospitable climates 
of the North and East, people will increasingly be 
able to indulge their desires for pleasant surround- 
ings when making decisions about where they will 
work and live. The cities of the Northeast began to 
give ground in the face of more rapid growth on the 
part of the cities in the South and West after World 
War II. There are a number of reasons for this trend, 
but certainly one of the important factors is the wish 
of many people to live at lower densities in the attrac- 
tive physical environments available in these regions. 

At one time, cities were primarily places to trade; 
the places which were the best locations for collect- 
ing and distributing commodities prospered and be- 
came most important. Later, cities became places to 
produce goods, and those with access to raw mate- 
rial and markets for their products became dominant. 
Today large cities are the best places to produce 
ideas, and the locations in which information and 
ideas are most abundant are most important. Tomor- 
row, information activities, management and edu- 
cation will continue to be important but telecom- 
munications will free us— if we wish to be freed— 
from the high-density metropolitan existence we 
now find necessary. We are, for the first time in the 
history of cities, in a position to assure that the best 
places to live become our most important cities. D 



15 



For the past year there has been a great deal of pub- 
lic handwriting over the financial plight of our 
major performing arts groups. The Metropolitan Op- 
era, the Balanchine Ballet and some major orchestras 
have either faced strikes or just missed them. Deficit 
financing— of the kind that puts private companies 
and even national governments out of business— has 
soared. As one placard held by a Met picketer read, 
"It's time to pay the piper." Well— he's getting paid 
but no one is sure vi^ho's going to pick up the tab. 

It's logical that a great many home remedies have 
been announced. President Nixon, in early Decem- 
ber, asked Congress to double the funds available 



to the arts. In an unprecedented move in November, 
the presidents of 77 leading orchestras asked the fed- 
eral government for assistance. 

But neither prospect is encouraging. As a columnist 
observed in the N.Y. Times, "It is easier to get $54 mil- 
lion out of the House of Representatives for the Tai- 
wan Air Force than a dime for a theater company." 

Another remedy often suggested is increased sup- 
port by business— and here the litany is fairly stan- 
dard too. Producer Richard Barr {"\Nho's Afraid of 
Virginia Woolf?") last spring demanded that business 
give more money to arts groups. In recent years two 
major studies— by the Rockefeller Panel Report and 





Business 

and the 

Box Office 

Some new ideas 
for business support 
of our bankrupt 
performing arts. 



by 

Richard W. Hall 




the Twentieth Century Fund Study— have expressed 
pious hopes that corporate donations to the arts 
would expand. In fact, just about everybody is in favor 
of the idea except business. 

The truth is that businessmen have taken a hard 
look at the social return on their contribution dollar 
and have chosen to support projects that promise to 
improve the material side of existence. By and large 
they have not bought the argument that the arts are 
as vital to the country as good schools, an end to 
ghettos or the Boy Scouts. Most businessmen see 
nothing wrong with working to improve existence 
materially, since most of our national discontents 
seem rooted there. 

And yet, although the facts confute the expecta- 
tions, the diapason of demand swells on. Give a pro- 
ducer or impresario a podium and chances are he 
will use it to explore the stinginess of business. His 
remarks may get a good press, his mail may be terri- 
bly flattering, and he may be asked to give the same 
speech elsewhere. But as for altering the basic pattern 
of business support to the arts, he's wasting his breath. 

This is not to say it need always be so. But it will 
be until the boys in show biz revise some of their 
basic misconceptions and apply a fraction of their 
famous creativity to the problem. 

The fact is, business is not likely— now or ever— to 
make major donations to the arts unless it can be 
demonstrated that some benefits will be visible in 
their balance sheets. Well-intentioned but token sup- 
port will continue in the name of "corporate citizen- 
ship"— but any real marriage between business and 
the performing arts will have to wait on a closer mesh- 
ing of interests. Even such a handsome benefaction 
as Eastern Airlines' gift of a new Wagner Ring to the 
Metropolitan Opera is only an exception that proves 
the general rule. 

And yet— and yet. Business is perfectly willing to 
pay for services rendered, and the arts have much to 
offer. But so far there has been little hard bargaining 
between the two. Solicitors for arts groups are 
shunted to the Siberia of the public relations depart- 



ment, where they are kissed off with kind words and 
a small check. They have missed their real target— 
marketing— which is a key staff function. But it is only 
from the marketing/distribution boys that big-cash 
support will come. 

Innovation has always been the key to American 
marketing. A country where you can buy books in 
drugstores, milk in gas stations and where your bank 
sends you a packet of zinnia seeds every spring is 
obviously unhobbled by ancient traditions. 

For openers, let's try a very small innovation. 

The great American "free" offer has flowered in 
many places— on the backs of cereal boxes, in the 
public prints and over the airwaves. Just suppose 
that instead of sending away for a metal tray or a 
plastic clock, the buyer could write for two tickets 
to a show or a concert! 

Think of the advantages to both performing groups 
and business. The performance gets regular plugs as 
part of an advertising campaign. People hear about 
it whether or not they take advantage of the offer. 
Tickets distributed through the premium arrangement 
will increase audience sizes. 

On the business side, the novelty of the offering 
may provoke a good response. In urban centers, 
where there are well-heeled and sophisticated con- 
sumers, the quality of the respondents will be good. 
If a company has a class rather than a mass product 
to push, audience targeting should be excellent. 

Before skeptics start sharpening their knives on this 
scheme, consider the fact that it has already been 
tried and found successful. The Empire Savings Bank 
of New York, hardly a cultural rescue league, has 
offered new depositors ($10 or more in a new ac- 
count) free tickets to Off Broadway shows. The cam- 
paign started in 1969 and continues into 1970. A half- 
dozen shows have been offered and a bank spokes- 
man says they are "happy" with the response. The 
officiating medium in the affair is a classical music 
station— WNCN-FM which broadcasts the commer- 
cials, accepts listeners' checks, forwards them to the 
bank and mails a voucher to the listener, to be pre- 



17 



sented at the box office. A similar campaign has been 
run in Cleveland, featuring Zenith television dealers 
and the Cleveland Playhouse. 

Now let's move on to another innovation — the 
house production. 

The royal private citizenry 

In earlier centuries, many princely houses kept 
musicians or actors on hand to provide uplift on spe- 
cial occasions. The Comedie-Frangaise began life by 
royal decree and was given an annual grant. The 
Esterhazy estate in 18th century Hungary was a minia- 
ture Lincoln Center. The lucky heirs of this tradition 
have been outfits like the Royal Ballet of Great Britain 
and the Vienna State Opera, where the government 
has taken over where princely largess left off. 

In America, of course, we have neither princes nor 
government subsidy. The arts must depend on the 
private citizenry. And yet, the corporate principali- 
ties which prevail in mid-century America could make 
excellent use of performing arts groups for their state 
occasions. One has only to think of annual stock- 
holder meetings to realize that a little music or drama 
would do wonders to keep the audience awake. Sales 
conventions, new product kickoffs, press parties, 
plant dedications, trade fairs, recruiting drives— all 
these are state occasions when corporations must put 
on a show. Why not a "house" production— ready in 
the wings to entertain and enlighten whatever audi- 
ence is assembled? 

Before writing off the idea as harebrained, corpo- 
rate planners should consider last year's road-show 
triumph. By George, presented not by David Merrick 
or Sol Hurok but by TRW Inc., a big Cleveland-based 
electronics company. By George, a one-man show 
that scored on Broadway and in London, starred Max 
Adrian and was based on the life and works of Ber- 
nard Shaw. TRW toured the package on college cam- 
puses— 40 of them, where it was seen by 50,000 stu- 
dents—as part of its recruiting effort. Requests for 
stops at other campuses poured in and press-TV 



coverage was extensive. One TRW executive called 
it a "gold mine"— both in terms of publicity and re- 
cruiting results. Since then the company has been 
considering other shows. 

Extending the idea of a one-shot house production 
a little further brings us to the resident troupe, nour- 
ished and nurtured by a company over a longer 
period. Here we might (but don't yet) have the Gen- 
eral Electric Ballet, the Celanese Mime Theater, the 
IBM Children's Theater, the Boeing Repertory Work- 
shop. (One step in this direction was the Grace Line 
Steel Bandits, a steel band that played at corporate 
galas as well as at Lincoln Center and Town Hall in 
New York. It was disbanded in 1968, when some key 
players were drafted.) 

The arrangement has many advantages. For its 
money, a corporation would have first call on the 
group's services for its own live events and for TV 
specials. The corporate name would be part of the 
group's identity— a public relations plus. In exchange, 
the artists would be able to stop worrying about the 
sheriff and concentrate on their work. 

Now let's up the ante and consider the possibility 
of a corporate-sponsored Festival of the Arts. This 
is the kind of fiesta that Rheingold Brewery ran in 
New York's Central Park some summers ago— an af- 
fair that lasted several weeks and drew on talents 
from the world of serious, folk and jazz music. 

One object of many promotions is to lure cus- 
tomers into stores. There they check their lucky num- 
bers, ask for contest blanks, cash in ad coupons, and 
so forth. How much more rewarding it would be if a 
trip to a store exposed you not to a poster listing the 
winning digits, but to a pair of tickets to the local arts 
festival! If costs were too high for a giveaway, the 
tickets might be offered at a discount, or with a pur- 
chase. No matter how it is arranged, the tie-in with a 
local retailer is sure to build traffic for him. 

There are countless ways to merchandise an arts 
festival to pay off in sales— especially if the festival 
includes some rock groups. But however it's done, 
the principle remains the same. Business needs new 



18 



ideas for helping the arts and the impetus should 
come from both sides— from marketing men who 
appreciate show business and from artist-managers 
who understand the particular dynamics of history's 
first mass-market democracy. 

The principle may require a certain tolerance from 
purists who detest handholding between art and com- 
merce and who believe the arts should command 
reverence and cash without having to hustle for them. 
Before condemning the idea out of hand, however, 
they should remind themselves that there is no such 
thing as perfectly painless patronage. Every form of 
succor has some drawback. 

Pennies from Washington? 

Support by the nobility, for example, used to de- 
pend on an artist's family, personal appearance or 
talent for flattery. Wagner had little luck with patrons 
until he met up with mad King Ludwig of Bavaria- 
demonstrating that a patron had to be literally out 
of his mind to think Wagner was worth helping. Since 
the number of rich, demented music lovers was lim- 
ited at best, Wagner could consider himself fortunate. 

Patronage by government, on the other hand, ex- 
poses a man to bureaucratic procedures and insen- 
sitive officials. The groups on whom government cash 
fails to rain down tend to wither away— making the 
Ministry of Culture, in effect, the final arbiter of which 
groups shall live or die. 

In addition to the enterprises cited earlier and the 
many others not mentioned, the Bell System, through 
its operating telephone companies across the country, 
has implemented a concern for the plight of the per- 
forming arts with hard cash contributions. Support of 
such organizations as the Minneapolis Orchestral 
Association, the Denver Symphony, the Salt Lake City 
Symphony, the Cincinnati Symphony, the Seattle Sym- 
phony Endowment Fund, the Cleveland Symphony 
and the Center for Performing Arts in Milwaukee has 
accounted for about half of Bell System support of 
cultural activities over the past few years. H. I. 



Romnes, AT&T's Chairman, is a member of the Busi- 
ness Committee for the Arts, a national organization 
formed specifically to encourage business patronage 
of the arts. 

The itinerant symphony 

In the Midwest, the Illinois Arts Council is now 
raising money for what may well be a unique purpose. 
Its object is to send the Chicago Symphony to colleges 
throughout the state as a kind of peripatetic resident, 
visiting one or two in a year and staying long enough 
to not only allow students ample time for extended 
and concentrated listening, but also to enable music 
majors specializing in certain instruments to study 
with members of the orchestra who are practicing 
masters of those instruments. Illinois Bell Telephone 
Company, as a regular contributor to the Arts Council, ' 
is thus supporting, at least indirectly, this new effort 
to reach the young people from among whose ranks 
musicians of the future must be drawn. 

It might help, in closing, to put the financial needs 
of the lively arts in big-picture perspective. We are 
not talking about massive transfusions of cash. The 
deficit run up by 60 of our major orchestras in 1968- 
69 was $5 million; it will climb to $13 million by the 
end of the 1971-72 season. 

This may sound staggering at first, but not when 
you find a scale for it. As the president of the New 
York Philharmonic pointed out recently, one new 
highway interchange north of the city is costing $25 
million— and not a groan has been heard! That's about 
double the projected deficit for all our orchestras a 
year from now. 

If you stop to think about it, there is really no rea- 
son why live performances, with a few major excep- 
tions, could not go the way of the parlor stereopticon 
and tableaux vivants. The best way to avoid such loss 
is through a dose of creative innovation. There's really 
no limit to the wonders that can be accomplished if 
two natural allies— show business and industry— stop 
circling each other warily, and shake hands. D 



19 



a 21 -year-old 
collegian views 



The 
American 

Dream 

and the 

World 

Imperative 



by Rita Fuhr 

I grew up in a world that was clean and well-lit, 
homogenized and pasteurized, vaccinated against 
polio and tetanus, properly nourished and adequately 
schooled. It was a world of order and certainty and 
there were good people like parents and teachers 
to teach you the rules and show you the way to the 
Good Life. 

Had I been born 10 years earlier perhaps every- 
thing would have happened as planned. Maybe I 
would have been able to meet each new year con- 
fident that 1 indeed had a piece of the Good Life. 
But I wasn't born 10 years earlier. All of us who made 
our way into the world during the postwar baby 
boom were destined to see the end of this world of 
certainty. It saw us through to college age, and after 
that we were on our own. 

What's it like to know all the rules for a game 
that's no longer being played? What's it like to be 
a 21-year-old college student caught in the middle 
of a world that seems bent on its own destruction? 



One day you go to college and you find yourself 
one of 18,000 students attending classes on a huge, 
urban campus. You have one class in a lecture hall 
that holds 300 and another in a small classroom with 
the professor and 10 students sitting around a table 
having coffee. Football doesn't mean anything on 
this campus and graduation exercises are held in what 
usually serves as a livestock exhibition hall. You learn 
to remember your IBM computer sort number and 
you learn to be patient with forms in triplicate and 
computer errors that can erase your entire academic 
career with one wrong digit. You learn not to expect 
anything without having first to stand in line for it. 

Things happen to you that leave memories of a 
different sort than those your mother has of home- 
coming. One day you watch the riot squad march 
down a campus walk and station themselves on the 
library steps. You go through a picket line to class 
and your roommate and your English professor yell 
"Scab!" at you as you do. You receive a letter inform- 
ing you that any participation in student demonstra- 
tions will mean loss of your scholarship. You see 
people scared and hurt and bleeding. You see people 
angry and violent. Windows are broken, bricks 
thrown, chairs and tables overturned. You see three 
college presidents come and go in less than two se- 
mesters and you hear the college trustees laud what 
happened on your campus on a day you remember 
as Bloody Thursday. On somedaysyour muscles tense 
and your stomach begins to hurt as soon as you get 
near the campus. 

There are other things apart from school that you 
remember. Every day of your life in this age of instant 
communication, you live with what's happening in 
Vietnam, in Washington, D.C., in every ghetto, in 

Do we turn to revolution? That is probably 
the biggest question being tossed around. 

every neat suburb, on every college campus. Never 
before has man been able to know so much and hope 
for so little. And if you're young, you feel the weight 
of an approaching responsibility for a world that re- 



20 



fuses to act responsibly and you wonder again, what 
do I do now? 

There are three assassinations in living color and 
a war that consumes an incredible amount of money 
and men, some of whom, like a onetime boyfriend, 
don't come back. There's man on the moon and man 
in the ghetto. There's air pollution, over-population, 
hunger, poverty and a whole list of social ills that 
make reading the morning paper less than an enjoy- 
able task. And what you don't face everyday yourself, 
you see that night on the television at 6 o'clock and 
again at 10. And if you're young, you wonder, what 
do I do now? 

Do we turn to revolution? That is probably the 
biggest question being tossed around on all levels 
of American life. The young use it as a kind of pass- 
word among their peers. Newscasters analyze it in 
ominous tones. Blue-collar workers call it part of the 
"Red" threat. It is the axis concept of America at this 
time in our history. It affects us all differently but it 
affects us all. It contains the key to the rapidly closing 
doorof our survival. 

I learned early to believe in America. For a long 
time, the concept of America as a democratic prom- 
ised land held true in my mind. All of the historical 
color was familiar to me, just as it is familiar to 
every American school child. American history was 
a glorious technicolor extravaganza, resplendent with 
archetypal heroes regretting in appropriate oratori- 
cal fervor that they had but one life to give for their 
country. All this emphasis on idealism led, as was 
intended, to a vision of America as a concept rather 
than a reality. I, by college age, reached the inevitable 
point when it was no longer possible to reconcile the 
taught concept of America with the experienced real- 
ity of America. The confrontation of this inevitable 
paradox drives one to the necessity of consider- 
ing other possibilities of political action and social 
change. And so the "revolution" takes on a reality 
that the child's-history-of-America-complete-with- 
full-color-pictures never had. 

There is an undercurrent of seriousness in all the 



student concern in the revolutionary motif that can- 
not be chalked up to a hard core of malcontents in- 
volved in a grandiose Communist plot to undermine 
democracy or passed off as a highly evolved form of 
the panty raid. As well as the rhetoric, one finds a 
new consciousness of social problems on the gut 
level. Many of us attending campuses located in the 
middle of a sprawling urban mess live, not within 
the safe confines of a college dorm, but in the middle 
of lower-class or ghetto neighborhoods along with 
a lot of other people who can't afford high-cost 
housing either and not because they are going to 
college. Lots of people in our colleges today grew 
up in what Intro, to Sociology politely terms "the 
inner city" and have no reticence in disclosing just 
what they think about the American dream. There 
is the paradox of a youth, largely disillusioned with 
conventional channels of social change, who can still 
find some relevance in working within those same 
channels. You've got kids working with organizations 
like VISTA, actually opting for slum living and starva- 
tion wages in their quest for a kind of intense personal 
involvement with what is happening to America. Col- 
lege life, at least on large urban campuses, has be- 

I will admit, having experienced it myself, 
that a large crowd of people waving 
clenched fists and yelling "all power to the 
people" is a frightening thing. 

come a whole new trip, based not on homecoming 
dances and football games but on gut-level personal 
involvement with the pressing social problems of our 
environment. 

Because one has been able to make this personal 
application of Intro, to Sociology to what one is liv- 
ing in and experiencing every day, either personally 
or through the immediacy of the communication 
media, a new willingness to turn to previously un- 
tried ways of dealing with these problems begins 
to emerge. The revolution is a new tool, something 
youth has chosen in the face of what seems the gross 



21 



failure of the usual channels of social change. 

There is one aspect of this press for change that 
seems really to tap the hidden fears of America. Pop- 
ularly put, it is the concept of "all power to the peo- 
ple." I will admit, having experienced it myself, that 
a large crowd of people waving clenched fists and 
yelling "all power to the people" is a frightening 
thing. But it is strange that an idea which, in actuality, 
draws on what is supposed to be the traditional 

Actually, this concept of revolution is sim- 
ply a contemporary development and re- 
finement of the traditional Boston Tea Party 
kind of American revolutionary spirit. 

American consciousness of individualism can elicit 
such social paranoia. Has the idea of self-motivation 
become so foreign to us that we no longer are com- 
fortable in its presence? 

Actually, this concept of revolution is simply a 
contemporary development and refinement of the 
traditional Boston Tea Party kind of American revo- 
lutionary spirit. The fact that there was an American 
Revolution bears consideration by those who would 
put down revolutionary thought as un-American. 

A positive example within my own experiences of 
the "all power to the people" revolution is the devel- 
opment of the Black Students Union at San Francisco 
State. Started several years ago, it originated as both 
a kind of protective union for black students in a sea 
of white faces and as a means of establishing a liaison 
between the growing number of black college stu- 
dents and their communities. Black students knew it 
was vital that they not, by virtue of their college edu- 
cation and their experience in what was primarily a 
white institution, lose contact with their people and 
their culture. For a while the defensive aspect of the 
BSD was most evident but the campus struggles of 
last year seemed to provide the catalyst for the organ- 
ization's development into a strong source of racial 
and cultural identity for the black students on cam- 
pus and a cohesive ground from which the black 



students are able to articulate their needs and ideas. 
I think that the San Francisco State Black Students 
Union represents the kind of revolution that youth 
really wants and the kind of revolution I can accept. 

The idea of "all power to the people" demands 
we confront and acknowledge that somehow, some- 
where along the road to our international promi- 
nence as a nation and our own individual rush to 
grab a piece of this prominence, each of us lost to 
some degree our roles and rights as individuals in 
our society. In our haste to build a nation, in our fix- 
ation with the concept of the American dream, we 
surrendered ourselves to the bigness of the task. Now 
we find ourselves locked into a life pattern that serves 
the task and is subservient to the task. 

There is a remoteness that people feel between 
their individual lives and our decision-making insti- 
tutions. In this remoteness we find people who have 
had to resort to basically a blind, mindless faith in 
the American way. It becomes necessary to surrender 
completely to the structure you have created. You 
must believe in Vietnam, in the President, in the 
government, "my country right or wrong." 

Youth finds this kind of blind faith impossible, hav- 
ing grown up in a world where the only permanence 
is impermanence, where what we know today may 
well be meaningless tomorrow. We all know, as 
Dylan sings, that "the present now will later be past 
... the old road is rapidly aging." Change becomes 
the key word, perhaps the only word that has any 
validity for the future. 

The question becomes, what do I do now with 
what I see? I see modern man as an integral part of a 
technological, as well as sociopolitical, environment. 

I think we have been too slow in acknowledging 
our technology as the potential creative force behind 
modern life it can be, rather than as a pleasant but 
remote offshoot of the Industrial Revolution. We 
also have to deal with the fear that technology will 
reduce our lives to a state of programmed automa- 
tion. To many of us, the specter of Hal the computer 
outthinking his human creators is much too real a 



22 



possibility. Not even youth has been able to recon- 
cile themselves to a technological environment. Some 
youth, in the search for self-realization, have rejected 
all the trappings of a technological society. 

I do not think that because we are a part of a tech- 
nological society, we need necessarily to be a de- 
humanized, depersonalized society. Because we fear 
the changes technology demands we make in basic 
social constructs such as the work ethic, we relegate 
our technology to an enforced impotence. We em- 
brace technology only so far as it serves existing 

We ignore the lesson of a true technology 
—that it, in its best sense, functions always 
to continuously incorporate an ever-chang- 
ing reality. 

structures and concepts. But when technology begins 
demanding that we rethink the validity of tradition, 
we begin to run scared. We ignore the lesson of a true 
technology— that it, in its best sense, functions always 
to continuously incorporate an ever-changing reality. 
By helping us to live within the constant flux of con- 
temporary life, technology can humanize and make 
visible and less frightening the forces of change. 

There is an incredible beauty about a technology 
which can represent all the possible choices one has 
in dealing with reality and the continual conscious 
effort one must make to incorporate change into 
even the most basic life patterns. We must learn to 
apply, in a technological sense, the idea of working 
with all possibilities, all elements, all truth, all reality 
if we are to survive our expanded, intensified, mind- 
blowing environment. 

We live in a world that offers us no illusions about 
our role in society; we must either take the respon- 
sibility for what we have created or become the vic- 
tims of our own creation. Either we confront change 
or the dragon Change will devour us. We no longer 
have even Santayana's option of repeating the mis- 
takes of history, for we in this nuclear age risk elim- 
inating history altogether. 



I know a lot of people— the president of my college 
and the governor of my state, for example — who 
would much rather I concentrate on something safe 
like the good-looking guy in my junior seminar than 
on something as risky as the future of the world. But 
the future of the world happens to be my future too. 
I'm getting a little nervous now that we seem not to 
have made the world safe for democracy or even for 
ourselves after all. 

I do worry too much but mostly because a lot of 
people don't worry enough. A lot of people watch 
the news at 6 and again at 10 and feel nothing. A lot 
of people talk about Vietnam and poverty and air 
pollution in a strange, detached, uncaring way that 
seems more horrible to me than any college student 
calling a policeman a "pig." 

I care. I care so much about what happens in this 
crazy global village of ours that I find it incredibly 
ridiculous that I be expected to sublimate my con- 
cern for some very real problems to a tradition that 
happens to have been around longer than I. 

Our task is to see and to see what is, not 
what we want to see or what we have been 
told we should see there. 

Our world is an imperative. In order to answer that 
imperative, we must have a hard, clear vision of the 
reality of that world— a vision apart from an illusion- 
ary heritage or the concept of an improbable Amer- 
ican dream. Our task is to see and to see what is, not 
what we want to see or what we have been told we 
should see there. 

This vision does demand a revolution. But revolu- 
tion is neither an obscenity nor an epiphany but a 
fact of life. We are constantly a part of a world that 
is changing, moving, yes, revolving during every split 
second of time. The changes that wrench many of 
us are merely the natural movements of this revolv- 
ing life force. Our technology is no monster but 
merely the manifestation of this same life force. And 
we are no strangers in a strange land but creatures 
of the living revolution of an imperative world. D 



23 




=3l'nill l*IIIIB«iu...«^^: 



a middle-aged 
critic compares 



The Lost 
Paradise 
and the 
New 
Liberation 



by Saul David 

While having a wisdom tooth extracted during WW 
II, I was told by a U.S. Army dentist that his profes- 
sion depends on the human organism's inability to 
recall pain. This seems as rational a way as any to 
explain why we are so tireless in our rediscoveries of 
hedonism and communal joys. Every decade or so, 
we are roused and inflamed by the news that non- 
discriminate and odd-numbered sexual and social 
relationships are— like wow. Shock is appropriately 
noted among the shock prone, and another thrilling 
and profitable Liberation gets under way, shattering 
custom, ripping the mask from agreed-upon hypoc- 
risies and generally having a ball until embarrassment 
or even drearier consequences set in. Then Cavaliers 
become Roundheads and the knitting needles switch 
from tassles to shrouds without missing a click. 

The duration of the festival seems to depend on the 
arrival of consequences, in whatever form. The ex- 
traordinary power and spread of the present celebra- 



26 



tion— assuming it's not really millennial— can appar- 
ently be credited to the strength of the society set up 
by the hypocrites, a world in which unpleasant re- 
actions can be avoided and deferred for a very long 
time by a very large section of the revelers— the afflu- 
ent young and their wistful supporters. For them, the 
playpen stretches from sea to shining sea. 

A world ago, before television transformed all 
anger into Right, all passion into Virtue, the Old Left 
used to sell trial memberships by advertising what 
was called "free love"— a phrase which breathes the 
innocence of the time— and many of the compassion- 
ate-and-idealistic young were much attracted. A lot 
of people who had not really considered the socialist 
goal of sharing in the means of production had their 
eyes opened and the slogan "from each according 
to his capacity, unto each according to his need" took 
on a satisfying meaning. Although the girls were often 
more bourgeois than the slogans (the pill being more 
persuasive than the dialectic) and rarely even the pick 
of the litter, it was a powerful subtextual recruiting 
device. The combination was perfectly suited to the 

Joy unconfined gets to be joy unconfin- 
able, and the discipline needed to change 
the world is hard to maintain if the cru- 
saders are tapping their feet and waiting 
for the meeting to break up so they can 
pair off. 

needs of youth— the reformer's zeal combined with 
a license to License, the right to hate wrapped in 
slogans of moral superiority and compassion. No 
revolution cries out for Responsibility— Freedom is 
the slogan, but Freedom For is usually vague while 
Freedom From gets savagely specific. 

Still, the prime difficulty with Freedom, any variety, 
is that it's addictive and constantly needs more chains 
to break— otherwise. Freedom fighters run the risk 
of supporting some status quo. And since sexual cus- 
toms and taboos, like the urges they limit, are power- 



ful (if not necessarily rational) expressions of the way 
a society wants to see itself, an unbuckling of those 
customs tends to be an unbuckling of the whole 
works. Joy unconfined gets to be joy unconfinable 
and the discipline needed to change the world is hard 
to maintain if the crusaders are tapping their feet and 
waiting for the meeting to break up so they can pair 
off. 

So, sometime before WW II, the Party sensibly 
blew the whistle and the years of prophet sharing 
ended. The buttoned-up faithful who remained 
turned to the real business of idealism— killing people 
who don't see the light, telling specific lies for the 

It became clear that personal liberty and 
the doing of one's "own thing" (as youth 
and the Cosa Nostra have it) are incompat- 
ible with Utopian order and the uniformity 
of the Saved. 

general good and falsifying the record. Meanwhile, 
the moralizing didn't let up for a moment, not then, 
not through purge and war and occupation and fam- 
ine and the rest of it, convincing its victims often 
as not, and generally demonstrating that dreams are 
stronger than facts, no matter what Marx thought. It 
became clear that personal liberty and the doing of 
one's "own thing" (as youth and the Cosa Nostra have 
it) are incompatible with Utopian order and the uni- 
formity of the Saved. 

All this was such a short time ago that the very sons 
and daughters of that Lost Paradise are the heralds 
and champions of the new Liberation. Educated in 
the accusatory lingo of the social sciences and the 
quantitative logic of all mass movements, they are 
convinced that they have only to stop society's clock 
in order to control time itself— this time they've got 
the numbers and the "power of good," this time there 
will be no consequences. And their parents, agreeing 
nervously to things they had not quite imagined back 
in the days of cold water flats and manifestoes, are 



27 



searching themselves for guilts and, of course, finding 
them. 

Long before Freud or John Lennon, young people 
were embarrassed by adult imitations of their group 
frenzies. The sensation-greed of youth is matched 
only by the intensity of young revulsion from the idea 

The real horror of the Generation Gap is 
the look on a sixteen-year-old girl's face 
when her mother shows up in a mini-skirt, 
twitching her forty-year-old rump to a rock 
band. 

that their gross and unbeautiful elders should pre- 
tend to understand or share such mind-stopping 
pleasures. The real horror of the Generation Gap 
is the look on a sixteen-year-old girl's face when 
her mother shows up in a mini-skirt, twitching her 
forty-year-old rump to a rock band. Young people 
know enough about their own motives not to respect 
themselves or their friends too much, regardless of the 
slogans. They know. So the sight of their parents 
groveling before them tends to sicken and frighten 
them into frenzies of contempt and destruction. 

The residue of a political century seems to be a 
sour skepticism about every faith but youth worship. 
In an increasingly secular time, when personal fulfill- 
ment is held to be not only the goal but the right of 
every man and woman, what used to be called matur- 
ity has come to seem the expulsion from the garden. 
Not only "the system" but all systems have failed 
their promises, which were called justice but under- 
stood to be happiness; and the only total passion, 
unshadowed conviction and bottomless sexual vorac- 
ity in sight is a condition not of wisdom, but of youth. 
No wonder everyone wants it, no wonder it is the 
essential pitch of every sale, the justification for every 
wistful extravagance. 

Worshiped, admired, imitated and quoted, why 
would any young person want to join an adult world 
which greets every accusation with a confession and 



If he were to appear in a hairy and mod 
version, Peter Pan would be anointed. 

which has practically renounced its right to judge, let 
alone govern? What's to gain by growing up? If he 
were to appear in a hairy and mod version, Peter Pan 
would be anointed. 

The older generation, anxiously throwing human 
bridges across this Generation Gap is destined to fail 
as the young dig madly away at the far shore to keep 
the future distant. Of course, they have only stopped 
society's clock, not the whole process— and even from 
this side it's possible to see victims fall into the 
crevasse. It's hard to say what will happen as the leaves 
fall and nature remains reactionary. Perhaps suicide 
will remedy population growth. Probably not— prob- 
ably war will seem better than a confession of failure, 
as it always has— even to the enlightened. 

Meanwhile we are all in for a bad time. Mass higher 
education is coupling with othervast consuming blocs 
toward the creation of a new kind of society in which 
one fundamental law is being repealed— the law that 
he who pays the piper calls the tune. The democratic 
spread of the franchise combines with the lowering of 

Educators don't need to be trained in the 
virtues of the welfare state— they are its 
proudest embodiment. 

the voting age to place political control in the hands 
of the receivers of goods and services rather than the 
makers or the owners. What John Aldridge has called 
The Country of the Young is much more than an atti- 
tude, it Is a collection of city states which are already 
real contestants for political power. Educators don't 
need to be trained in the virtues of the welfare state— 
they are its proudest embodiment. They quite natu- 
rally embrace the notion of a meritocracy shot 
through with hard politics— they live in one. There is 
no outrage like that of a junior professor of some 
social science when challenged by some chamber of 
commerce type to prove he's not wasting the taxpay- 



28 



er's money. Outsiders are constantly baffled by the 
way universities in bloody turmoil seem to close 
ranks at the first sign of outside interference, but the 
Generation Gap inside the walls is not as deep as the 
moat outside. 

It must be a hard life for aging educational profes- 
sionals. Already, symbolic parricide is the main fea- 
ture of every campus disturbance, just as the standard 
demand for amnesty expresses not so much coward- 
ice as the blinding self-righteousness of the group. 
Say what you will, they know that you know you're 
wrong. The administrators are perfect parent-substi- 
tutes and their anxiety to please and to understand 

Probably Higher Education would secretly 
welcome a series of harsh and repressive 
laws to get them off the hook. 

must give savage pleasure to people for whom the 
goal of turmoil is the satisfaction of turmoil itself. But 
it is just as hard to stop making concessions as it is to 
stop demanding them. Probably Higher Education 
would secretly welcome a series of harsh and repres- 
sive laws to get them off the hook. But they can't 
admit any such heresy and so the digging and sand- 
bagging goes on. Student tribunals for faculty trans- 
gressions are perfectly predictable— with faculty bless- 
ings at the outset and confessions at the trials. 

If the young are against killing, why don't 
they burn their drivers licenses along with 
their draft cards? 

The young are probably liars and fakers, even as 
we were and are, but who cares? If it were possible 
to prove conclusively that their logic is absurd, their 
tastes barbaric and all their professions lies, what 
would be the use? If the young are loving, why don't 
their parents notice? If the young are against killing, 
why don't they burn their drivers licenses along with 
their draft cards? If the young are brave, why do they 



flee into drugs? If they reject their parents' vices, why 
do they cite them as bad examples to explain their 
own? The exercise is splenetic and pointless. In a 
more reasonable time it might be at least argued that 
the virtue of the child must reflect the uprightness of 
the parent— which would make the older generation 

Along with their catalog of sins goes the 
fact that these same people made an effort 
without precedent in history to be charita- 
ble to the defeated. 

the most upright group in history. But it doesn't play 
that way. The young are confessing to their virtues, 
the old to their sins. 

In a recent issue of a credit card magazine, a young 
draft avoider living in Canada is quoted as saying that 
his group are too uptight— after all, they have only to 
wait until the World War II generation dies off to in- 
herit the world and make it whole. To which a mem- 
ber of that generation can only add his hope that they 
won't push .... 

That wicked generation, tired and frightened at the 
relentless sharpness of the serpent's tooth, are the 
same people who, starting way behind, nevertheless 
beat off real tigers— the Nazis and the Fascists and the 
Imperial Japanese. Along with their catalog of sins 
goes the fact that these same people made an effort 
without precedent in history to be charitable to the 
defeated. These howling hypocrites were mostly born 
with the first airplane and before television, but the 
moon landing is certainly as much theirs as the Bomb 
—and the ghetto, which is everyone's. Admitting every 
fault, these wretches managed, in the space of an in- 
complete lifetime, and along with the killing, to over- 
throw all the world's empires, free more downtrod- 
den and feed and comfort more of the hungry and 
fearful than all the previous generations of mankind 
taken together. These are the dragons the young 
mean to slay. Frankenstein's monster is alive and tak- 
ing a post-graduate course in the humanities. D 



29 



New Path 
for a 
New Light 



Christmas decorations have been 
made of glass fibers like these— 
tiny filaments fine as a human hair 
and smaller— which conduct light 
as a pipe conducts water. This 
property, however, makes them 
useful for many more serious ap- 
plications. Researchers at Bell Tele- 
phone Laboratories are experi- 
menting with these gossamer 
strands of glass, known as fiber 
optics, as a possible transmission 
medium for the laser beam. 

Three main interests motivate 
the research: the use of laser-fiber 
optics in logic or switching ele- 
ments of computers, in the line 
from your house out to the main 
telephone line, and in long-dis- 
tance communications. 

One of the primary problems in 
transmitting any kind of signal over 
any distance is loss of energy along 
the way. Consequently, one of the 
primary aims of the research shown 
here is to reduce loss of light in 
the laser beam as it passes through 
the minute glass rod. At present, 
about half of the beam's energy is 
lost after traveling through six feet 
of fiber optic. Among many Bell 
Laboratories people working on 
related parts of the project is a 
group developing a new low-light- 
loss glass to improve efficiency of 
the system. Others investigate 
means of modulating, or imposing 
information on, the beam; of get- 
ting the laser light in and out of 
the fiber optic, and means of 
amplifying it at repeaters. D 




Bell 
Reports 



Bell System Story In '69: Growth 

Records in telephones added, calls 
handled, operating revenues, and 
earnings per share, were chalked up 
in 1969 by the Bell System. 

Some 4.7 million telephones were 
added to the Bell network, bringing 
the total to 92.7 million; about 19.5 
million overseas messages were han- 
dled compared to 15.5 million the 
preceding year; an average of 350 mil- 
lion calls were transmitted per busi- 
ness day, an increase of 29 million per 
day; and 6.3 billion long distance mes- 
sages were carried, a 12 percent gain. 
Data-Phone* data sets in service in- 
creased 56 percent to 131,000. 

The largest revenue increase in Bell 
System history— $1.6 billion— was re- 
corded, raising the total to $15.7 bil- 
lion. Earnings per share were $4, com- 
pared with $3.75 in 1968. 



U.S. Tops Telephone Talkers 

For the first time since 1951 the United 
States has outtalked Canada for the 
"Championship of Chat." 

Americans talked their way to the 
top by averaging 701 telephone con- 
versations per person in 1968, eight 
more each than their northern neigh- 
bors. To accomplish this, each U.S. cit- 
izen had to increase his oral output by 
33 conversations over the previous 
year. Iceland, which reported 632 tele- 
phone conversations for each man, 
woman, and child, was ranked as the 
world's third most talkative nation. 

The figures were reported recently 
in "The World's Telephones," annual 
review compiled by AT&T. They rep- 
resent totals as of January 1, 1969, be- 
cause it takes nearly a year to gather 
statistics from telephone companies 
around the world. 



Waveguide: 

A Pipe Dream Coming True 

A field trial of a 2-inch pipe capable 
of carrying 250,000 simultaneous tele- 
phone conversations has been put on 
the schedule for 1974 by Bell Tele- 
phone Laboratories. 

The hollow, copper-lined steel pipe 
—known as a waveguide— is part of an 
economical new communications sys- 
tem that figures prominently in the 
Bell System's program for meeting 
growth in long distance calling, data 
communications, and Picturephone® 
service during the next decade. 

The system will exploit the high in- 
formation-carrying capacities of little- 
used radio waves of short wavelength 
—called "millimeter" waves. These mil- 
limeter waves, carrying information 
coded in pulse form, will travel 
through buried circular waveguides. 



32 



These pulses travel great distances 
without losing much strength. This 
means they will have to be amplified 
or regenerated only once each 20 
miles. Signals on coaxial cable systems 
that are now in service must be ampli- 
fied every few miles. 

Before the field trial, several tech- 
nical procedures and certain equip- 
ment must be perfected. Techniques 
for the manufacture of straight lengths 
of uniform waveguide will be devel- 
oped by Western Electric. Methods 
also must be developed for burying it 
with minimum bending about four 
feet underground, and for installing it 
along gradual route bends. This is im- 
portant because imperfections in 
roundness or straightness decrease a 
waveguide's transmission efficiency. 

It is expected that commercial serv- 
ice using the new system will be initi- 
ated in the late 1970's. 



Picturephone8 Service To Start 

Beginning in July, Bell System cus- 
tomers in the Golden Triangle area of 
Pittsburgh will be the first in the world 
with exchange only Picturephone serv- 
ice. This will be the first commercial 
offering permitting customers to place 
Picturephone calls from their offices. 
Exchange service will be introduced 
in the downtown section of Chicago 
and an intercity Picturephone link will 
be established between Pittsburgh and 
Chicago in the second quarter of 1971. 
By 1973 the Bell System plans to have 
a Picturephone network linking more 
than a half dozen cities. 



Tuning in on the tiny electric signals emit- 
ted by muscles as they work is part of a 
Western Electric study aimed at improving 
the way employees do their jobs, and in- 
creasing their personal comfort at the same 
time. The approach to man/machine rela- 
tionships, called electromyography, is be- 
ing made with the participation of the 
University of Michigan department of in- 
dustrial engineering, under a Western Elec- 
tric Research grant. Direct reports of 
muscle fiber activity are made from the 
miniature radio transmitter pinned to this 
girl's sleeve to recording equipment as 
much as 100 feet away. These signals can 
show Western Electric engineers when her 
muscles are beginning to tire even before 
she is aware of fatigue. 




Business Service 
and Society 



On March 31, Ben S. Gilmer retired as president of AT&T, ending a career that 
began with Southern Bell nearly 44 years ago. After serving as Southern Bell's 
president, Mr. Gilmer came to AT&T in 1965 as executive vice president. He was 
named president in 1967. In the following excerpts, taken from speeches he made 
during his years at AT&T, Mr. Gilmer comments on this business and these times. 



Service dictates the shape of our or- 
ganization and the principles that 
guide its management. In our view, 
our responsibilities to employees and 
share owners do not limit or qualify 
our commitment to service. Rather 
they support and sustain it. Only so 
long as we maintain a highly compe- 
tent and highly motivated work force 
can we serve well. Only so long as we 
can achieve good earnings can we con- 
tinue to enhance our capability to 
serve better .... 

Testimony before the Federal Com- 
munications Commission, June 7, 1966 

In the business I am in, I can assure 
you it is not the earnings we have 
produced that I dwell on in retrospect, 
it is the service provided, the contribu- 
tion made by improving and expand- 
ing communications to all economic 
and social life. And if my associates 
and I have to give close attention to 
the problem of producing earnings 
today and tomorrow, this is not be- 
cause we look at profit as an end in 
itself, but because profit provides us 
the essential material means to an end 
which is to serve the future. 

Any business, any industry, just like 
any government and any school, not 
only can succeed — it can also decay. 
It can fail utterly. Every institution can 
fall to pieces. And in the last analysis, 
that is the great challenge to all man- 
agement. For we can only prevent de- 
cay by generating new drives to the 
future. We can only avoid falling back 
by moving ahead .... 
46th Grand Conclave, Kappa Sigma 
Fraternity, Atlanta, Georgia— Septem- 
ber 2, 1967 

The social problems we now face, the 
crisis of the cities, the need for better 
education— these demand understand- 
ing, yes, they demand goodwill, yes, 
but above and beyond these essentials 
they urgently demand action. 

. . . The action required must involve 
all elements in community and nation. 



It cannot be shunted onto government 
departments and ad hoc government 
organizations. Responsibility cannot 
be shifted from one section of the 
body politic to another .... 

I think it is absolutely essential that 
we in business make this effort a suc- 
cess, for there is no question that the 
good health and growth and creative 
vitality of private enterprise depend 
on the soundness and health of de- 
veloping urban life .... 

We must each of us appraise what 
we are best fitted to do and then pre- 
pare ourselves. Intelligent selection 
and solid preparation — these I would 
say are the essential precursors to ef- 
fective action. 

We are, however, the largest em- 
ployers in the nation, outside of gov- 
ernment, and in the course of employ- 
ing and training several million people 
through the years we have begun to 
learn something ourselves about prob- 
lems in education. 

Hence it is in these specific areas 
of education and employment that we 
believe we can make our own effort 
most useful .... 

Brotherhood Dinner, National Confer- 
ence of Christians and lews, Denver, 
Colorado— December 6, 1967 

Business teaches a stern lesson: the 
consequence of attempting too much, 
like the consequence of doing too lit- 
tle, is failure. Finding what is right is 
an arduous process of matching needs 
with resources, of rigorously assigning 
priorities that distinguish between 
what must be done, what can be done 
and what had best be scheduled for 
tomorrow. 

The lesson applies as well on the 
scale of our society. Youth, I know, is 
impatient of delays. But the prompt- 
ings of the most urgent social con- 
science provide no warrant for abdi- 
cating what is the hardest duty of the 
responsible citizen, distinguishing be- 
tween what we wish for and what we 
can reasonably achieve. 
Commencement Address at University 



of Tennessee, Knoxville, Tennessee— 
June 9, 1968 

Today's world, stubbornly complex as 
it is and growing more so, will exact 
a hard discipline from those who seri- 
ously hope to have a hand in changing 
it. In short, it will take competence. 

What satisfactions will derive from 
accepting the challenge of acquiring 
that competence will not include the 
satisfactions of self-dramatization. 

Those . . . who do accept that chal- 
lenge will be in fact the true revolu- 
tionaries — with a better warrant to 
that term than those (among the 
young) who have appropriated it for 
themselves .... 

Commencement Address, University 
of Georgia— June 7, 1969 

Is there room in The Establishment 
—in my own business, for example— 
for adventure? If I say, yes there is, I 
must also remind myself that we have 
a continuing obligation to ask our- 
selves, is there room enough? We must 
and we do because our future depends 
in the final analysis on an asset that 
appears nowhere on our balance 
sheet, the innovative capacity of our 
people, their ability to sense and re- 
spond to society's new demands, their 
ability not merely to react to change 
but to lead it. 
Ibid 

No matter how talented and innova- 
tive our engineers and scientists, no 
matter how much efficiency and 
know-how we exhibit in our produc- 
tion processes, and no matter how 
many dollars we pour into construc- 
tion programs— it is our consideration 
for the individual customer— his needs, 
his desires, his right to be treated 
courteously — that will count for most 
in the long run. It is his opinion of us, 
not our opinion of ourselves, that will 
determine our success or failure. 
44th General Assembly, Telephone 
Pioneers of America, Minneapolis, 
Minnesota— September 23, 1969 



©AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

Washington, D.C. 
Permit No. 43083 



klSsAs'tny^pfl? LIBRARY 



KANSAS CITY 



MO 



64106 



Youth isn't educated to work. 
Youth doesn't need to work. 
Which is it? 



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May /June 1970 



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Bombs, Business and 
Reasonable Men 

Several years ago, when black citizens 
started following Dr. King and others 
into the fronts of public buses and 
into better public schools in the South, 
one's neighbors were fond of saying, 
in the North, "I've always been for 
Colored People, but now, with all 
these demands, I'm turning against 
them." One who did not say that was 
the president of Western Electric. 
Instead, he went to Washington as one 
of the first U.S. industrialists to 
endorse President Kennedy's Plans 
for Progress, which committed a 
business to equality in hiring people. 
Asked to comment then on his 
vanguard role, the president of 
Western Electric said, simply, "because 
it's right." 

Today there are newer and probably 
equally urgentsocial forces demanding 
accountability from business and 
industry. As some 3,000 outraged 




youngsters screamed and scuffled with 
mounted police outside the conven- 
tion hall at AT&T's annual meeting in 
Cleveland, the same former Western 
Electric president talked of defense 
contracts, pollution control and 
consumerism with the same head-on 
earnestness he'd brought years earlier 
to the effort for equality in employ- 
ment. He skirted no edges, passed no 
bucks. He didn't have to. "These 
issues," he said, "will test our capacity 
to govern ourselves and to live 
together as reasonable men." And 
he spoke, with the conviction of one 
who was there when it started, about 
jobs and minorities. 

Even More Punch 

Ten years ago nonwhite employment 
in Bell companies totaled 29,000, 
he said, and today there are 100,000 
nonwhite people in this business. 
Of 311 ,000 people hired last year, 22 
per cent were black. Said the former 
Western Electric president, "We have 
committed ourselves to do our part 
in the nation's effort to overcome the 
effects of generations of discrimination 
and hopelessness. . . ." 

It sounded like his same old line, 
and it was. And it carried even more 
punch. For one thing, the promise has 
been and is being kept. For another, 
the former president of Western 
Electric, who had signed for one 
company when he helped launch the 
Plans for Progress, now talked for 
many, because in Cleveland he spoke 
as chairman and president of AT&T, 
representing one million Bell System 
employees. 

A Feeling for the People 

This business has been fortunate to 
have had during the last crucial 
decade, and to have now in its top 
mix, an ample representation of 
manager-humanists- men who, 
together with imposing credentials 
in such fields as finance, engineering 




and operations, have in their bj 

a feeling for "the people." (ThI 

to suggest that there is a Bell Sli 

officer out there somewhere v! 

doesn't like people. If there is,l 

it for us to discuss it here!) Wej 

talking about those men whos 

human interests transcend the 

legendary and genuine concei 

managers in this business to s« 

communications public. Man; 

humanists are, in addition, re( 

people who are sometimes hij 

or hairier, or less organized oii 

or younger than we are, and v! 

are collectively more controv; 

than, say, the Telephone Pion 

manager-humanists are men \ 

while they have a warm placej 

Pioneering, also think the bla 

young, the critical academic!; 

different-than-we-are people 

expressing ideas we ought to 

Because of such men, and i 

over the protests of other go( 

with other good jobs, this bu 

frequently has responded qu 

other, smaller, seemingly mo 

businesses to the social force 



e prodding and pressing for 
vers. How many firms, large or 
II, have a group akin to AT&T's 
president-led Environmental 
Irs division, or the broader and 
er Human Affairs organization, 
Jed by an executive vice president? 

1 creation of such departments 
lis corporation, if not quite the 
• '. (>r to all problems everywhere, 

ns at least a more rational and 
t( eful move than techniques being 
» loyed today by some of those who 
Id bring the "power structure" 
; knees. 



easingly Tragic Results 

stunningly beautiful city of Seattle, 
nstance, has suffered more than 
ombings and countless bomb 

5 since the start of 1970. Not all 
It le bombs have been directed 
ig 1st the city's bankers and brokers 
in businessmen, but most of them 
la . In a mounting number of 
:a 3US communities around the 
:ot)try, bottle throwing and property 
)e|-uction seem to have replaced 
in sh and math as basic curricula, 

increasingly tragic results. 

cause we, personally, are essen- 

a live-and-let-live sort of being, 
ir aybe because we are just too 
ii y-washy to have worked up a 
,0 I vengeance over the rambunc- 
iojnessof youth, we have tended to 
i(| the under-30 offense and the 
'v|30 defense with about equal 
n' |jnts of empathy over the last few 
-e>t. Similarly, our own earlier 
ebnal reaction to the blacks' 
aiaaign for seats in restaurants 
ia|"it's about time." 
ji |day, however, we reluctantly 
>r as yet only intermittently) find 
.u ?lves feeling, "I've always been 
Jnekids, but now, with all the 

ionce " It's a disturbing shift of 

■ff'tion to admit. But parts of bodies 
-yi ! out of a Greenwich Village 

nued on inside back cover) 



BELL 

telephone magazine 



VOLUME 49 NUMBER 3 



MAY/JUNE 1970 



2 From School to Work 
by August C. Bolino 

The educational system needs a realistic overhaul if it is to equip 
students for the world of work. 

8 Poverty and Plenty: 

Young Americans at Work and Elsewhere 

by Edwin Harwood 

In the most robust economy anywhere, a startling number of 
employable youths stay unemployed. Why? Because they can afford it. 

14 The Priorities of Innovation 
by George C. Dacey 

What factors come first when innovators compete to develop an idea? 
How do you pick the right breakthrough to back? 

18 Who Gets Promoted? 
by Don Fyffe 

A Southwestern Bell man writes about the characteristics and 
credentials most likely to gain a rug on the floor and a title on the door. 

22 The Better To Grow On 

A photo spread of people active in corporate history's 
biggest money-raising venture. 

24 A Booming Technology or 
A Better Environment: Can We Have Both? 

by Morris Tanenbaum 

If we will show more concern for the future than we have shown 

in the past, technology can thrive and at the same time 

help cure the earth of its ills. 

30 Bell Reports 

A summary of significant developments in communications. 

32 Business Service and Society 

Excerpts from talks by Bell System officers. 

Tim Harriman Henney, Editor 

Al Catalano, Art Director 

Robert A. Feinstein, Assistant Editor 

Donald K. Smith, Assistant Editor 



H. I. Romnes, Chairman of the Board and President 

|ohn D. deButts, Vice Chairman 

Robert W. Ehrlich, Secretary 

John J. Scanlon, Treasurer 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212-393-8255 




FROM 
SCHOOL 

TO 
WORK 

by August C. Bolino 



p 

A en 



, ersistently high unemployment rates for American 
youth have cast doubt on the adequacy of those in- 
stitutions which are supposed to make easy the transi- 
tion from school to wori<. In spite of the creation of 
a number of Federal education and training programs, 
unemployment rates for teen-age youth have re- 
mained at unsatisfactorily high levels throughout a 
long period of sustained economic growth. It appears 
they will continue to rise as current anti-inflationary 
policies slow economic activity generally. 

These trends are paradoxical. The United States 
keeps more persons in school longer than any other 
nation, yet unemployment rates among our youth 
are much higher than in any other industrial nation. 

The President's Advisory Council on Vocational 
Education in its 1968 report, "The Bridge Between 

Mr. Bolino, an Associate Professor of Economics at Cathoiic Uni- 
versity, Wasl^ington, D.C., is an auttiority on manpower problems. 
He has held key personnel posts in both government and industry. 



Man and His Work," stated, "in a world where the 
distance between the experiences of childhood, ado- 
lescence, and adulthood and between school and 
work continually widens, the school must reach for- 
ward to assist the student across the gaps just as the 
labor market institutions must reach back to assist in 
the transition. It is not enough to dump the school 
leaver into a labor market pool. The school along with 
the rest of society must provide them a ladder, and 
perhaps help them to climb it." A number of related 
changes have caused this widening of the gap be- 
tween school and work. 

Technological change has created a rising demand 
for employees with relatively higher levels of educa- 
tion and skill and has correspondingly diminished 
employment opportunities for the unskilled in the 
U.S. Recently, ours has become the only major nation 
in the world which has more persons engaged in 
service-producing than goods-producing industries 



The Bell System 
and the Schools 

The Bell System has long been involved 
in public education. 

Traditionally, this involvement has had 
four basic objectives: (1) to help recruit 
new employees; (2) to create goodwill 



among teachers, students, administrators, 
politicians and the public; (3) to assist in 
special subjects by providing teaching 
aids requested by educators; (4) to foster 
proper telephone usage. 

Traditionally, these objectives were— 
and still are— met by a variety of activities 



such as teletraining programs, aid: 
high school science, films, bookl 
speakers and demonstrations, contr 
tions of money and equipment, w 
study programs and the sponsorint 
vocational courses. 

A few years ago the Bell System be 
a new kind of involvement: a com 



and in white-collar than in blue-collar occupations. 
As a result, we have manpower shortages in occupa- 
tional categories which require a great amount of 
education and training. 

Unqualified young persons who look for jobs are 
victims of what Professor Charles Killingsworth of 
Michigan State University calls a "twist" in employ- 
ment patterns. Automation, technological change 
and changing tastes, he says, have twisted the demand 
for labor from the nontechnical to the technical. This 
means that the poor, who are uneducated, are in a 
bind. In the past, they might have worked themselves 
up the occupational ladder by doing unskilled labor; 
today, much of this work is mechanized. 

There will be no reversal of this trend toward a 
more technically oriented society in the United 
States. Future requirements in the service-producing 
sector (trade, finance, government, transportation 
and utilities) will show the most rapid gains in em- 
ployment in 1975 and 1980. Shortages will continue 
in administrative, technical service, medical, manu- 
facturing and construction occupations. For most of 
these jobs, employers are demanding (and getting) 
persons with education beyond high school. 

Professor Killingsworth states that we must in- 
crease educational levels to reduce unemployment 
caused by this twist. 

"Vocational education still appears to suffer 
most in quantity and quality . . . ." 

The declared purpose of the Vocational Educa- 
tion Act of 1963 was to provide persons of all ages 
with ready access to high-quality vocational training 
or retraining which would enhance their opportuni- 
ties for gainful employment, and which would be 
suited to their needs, interest and ability. The second 
main objective of the Act was to offer more educa- 
tion for youth with special needs. 

Five years after the Act's passage, the Advisory 
Council on Vocational Education could still say that 



"vocational education still appears to suffer most in 
quantity and quality for those who need it most." 
It attributed the deficient vocational offerings of sub- 
urban high schools to the mistaken assumption that 
all students will pursue a four-year college degree. 
It stressed that existing vocational systems largely ig- 
nored the needs of women and of persons with 
"academic, socioeconomic and other handicaps." 
These findings continue to hold true today. 

"Long-range, fundamental reforms are nec- 
essary if public schools are to succeed . . . ." 

Elementary and secondary schools in the United 
States need to be reorganized to create a curriculum 
in which vocational and academic education are 
linked organically and reinforce each other. Some 
authorities have proposed that occupational educa- 
tion should be a part of the schooling of all students. 
They stress, correctly, that occupational orientation 
should be provided at the earliest possible time in a 
child's formal education. This will require a sharp 
break with traditional educational patterns. 

Marvin Feldman of the Ford Foundation has said, 
". . . vocational education is not a separate discipline 
and cannot be treated in the same way we approach 
mathematics, English or the physical sciences. It is, 
rather, an approach to the disciplines and the learn- 
ing process which, properly used, could reconstruct 
the American educational system for greater rele- 
vance of general education and a renascence of lib- 
eral-arts studies." 

U. S. Commissioner of Education James Allen says 
long-range, fundamental reforms are necessary if 
public schools are to succeed in their greatest tasks, 
especially in the teaching of urban youth. He favors 
tailoring instruction in the central city to the student, 
not to the school. This might mean that some pupils 
would spend as many as 10 or 12 hours a day in 
school, rather than the conventional six, while others 
might be assigned to a work program outside of the 



merit to help advance urban education. 
In making this commitment, it established 
some new educational objectives: 

1. To motivate young people to remain 
in school. 

2. To provide orientation to the busi- 
ness world. 



3. To help students upgrade scholastic 
and related skills. 

4. To help school systems in the develop- 
ment and enrichment of curricula. 

5. To support legislation designed to 
provide aid to urban education. 

Alter the summer riots of 7967 the Bell 
System entered into a brand-new kind of 



relationship with public education when 
Michigan Bell became a "partner" of the 
Detroit Board of Education in the opera- 
tion of Northern High School. Michigan 
Bell's lead was followed a month later by 
Chrysler Corporation when it entered a 



school for most of the day. Still others might pursue 
independent study in libraries, museums or elsewhere 
and report to a school only two or three hours a week. 

''Vocational schools are still the dumping 
I ground for unwanted pupils . . . ." 

But change comes hard in education, as witnessed 
by New York City's great difficulties in high school 
reorganization. In 1965, the New York City Board of 
Education decided to combine academic and voca- 
tional studies in comprehensive high schools that 
would "improve education and enhance integration." 
Vocational educators opposed the comprehensive 
schools as a watering down and fragmentation of 
occupational education. Proponents of the compre- 
hensive high schools charge that vocational schools 
are still the dumping ground for unwanted pupils. 
They point out that five years ago, when the com- 
bined plan was proposed, blacks and Puerto Ricans 
made up 48 per cent of the enrollment in vocational 
schools, whereas today they make up over 60 per cent 
of the enrollment. 

In addition, there is an economic aspect which is 
largely ignored: the per-pupil cost of vocational 
schools is considerably higher than that of academic 
schools. For 1967 the figures for New York City were 
$1,766 compared with $1,164. The proponents of 
change contend there is no justification for this 
spread in costs because the vocational system is not 
meeting the needs of disadvantaged students. 

Vocational education is passed up by increasing 
numbers of students because a college degree has 
become the most acceptable way to a white-collar 
occupation— which most students' parents desire if 
not the youngsters themselves. Adding force to this 
thrust is the fact that there are now many more ways 
of financing a college education than formerly, in- 
cluding numerous private and Federal scholarships. 

Many young people are misled into believing that 
college is the only way to be a success. High school 
students are not being told of job opportunities that 



are available to properly educated men and women 
who have no college degree. As a result, private indus- 
try spends very large sums of money on training pro- 
grams that teach aspects of work that could and 
should be taught in the schools. Some businessmen 
blame the failure of the schools to teach vocational 
aspects of life on poor communications between edu- 
cators and industrial firms. Some businessmen claim 
that school guidance counselors are left unprepared 
by their own college experience to discuss the world 
of work as it really is in industry and, therefore, chan- 
nel students indiscriminately into college. 

"Too many students fall victim to a 'white- 
collar complex' " 

More and better counseling is required to properly 
bridge the school-work gap. Eighty per cent of school 
dropouts have never had any job counseling; only 
56 per cent of high school graduates have. There are 
no counselors in 13 per cent of the nation's secondary 
schools and only one state— Massachusetts— meets the 
U. S. Office of Education standard of one counselor 
to every 300 students. 

It is estimated that as many as 80 per cent of today's 
high school sophomores are uncertain about what 
courses they should choose in their last two years of 
high school. When they arrive at this juncture, it is 
often late to select a straight vocational program at a 
technical school. Left to their own devices, too many 
students fall victim to a "white-collar complex" that 
allows them to set entirely unrealistic job goals for 
themselves. Poor students, two or three grades below 
national achievement levels, invariably propose that 
they would like to be pediatricians or lawyers. When 
this happens, we are left with no other possible ver- 
dict than that they received either very poor counsel- 
ing or no counseling at all. 

There are many sources of better counseling. Some 
educators suggest that teachers be trained to give 
elementary job guidance. Others claim that parents, 
provided with adequate job information, can best 



partnership with another Detroit high 
school. Shortly thereafter, the Wisconsin 
Telephone Company and Illinois Bell 
established similar relationships. 

Since then new partnerships have been 
springing up all across the nation. Many 
of these involve corporations outside the 



Bell System, but at least 19 partnerships 
have been initiated by Bell affiliates. 

There are sound business reasons for 
this iiind of involvement. Urban schools 
are a prime source of employees. In the 
next decade the Bell System will hire 
nearly 2 million people — about half of 



them the products of big city high schc 
Business has a big economic int( 
in schools. At present tax rates, more i 
half a billion dollars a year of Bell Sys 
taxes go to the support of public ed, 
tion below college level. 



communicate it to their children. For this approach 
to work, it would be necessary to convince parents 
that life as a good auto mechanic is more satisfying 
than life as a frustrated engineer. 

"Employment need not be related directly to 
the field of study." 

Since the 1950s, many educators have realized that 
high school education along traditional lines has little 
value for several groups of students. For those with 
no interest or no ability in higher education, college 
preparatory courses are confusing and irrelevant. For 
those not of the middle class, middle-class norms and 
white-collar values can be strange and boring. For 
some, education is expensive and they would rather 
be earning income to assist family maintenance. 

The work-study program of the Vocational Educa- 
tion Act of 1963 aids some of the above students, 
it is essentially a program of financial assistance for 
needy vocational students aged 15 to 20 years. Em- 
ployment of up to 15 hours a week is provided after 
school hours, generally in some public agency. The 
employment need not be related directly to the field 
of study. Federal funds (up to 80 per cent) are used to 
compensate the states that employ these students in 
order to keep them in school. These funds are avail- 
able for secondary and post-secondary students, if 
they are in an occupational curriculum and not work- 
ing toward a baccalaureate degree. The schools 
counsel and advise the students of their options. 

Ideally, vocational education should combine for- 
mal instruction with learning on the job. Cooperative 
education provides such a combination by extending 
vocational instruction into job-related employment. 
Students alternate between school and work. This 
alternation can be daily, with students in class one 
half day and on the job the other half, or it can be 
blocked, with the students in school for a solid week 
or a solid quarter and then on the job for an equal 
time in successive periods. 



Cooperative education students must receive the 
minimum wage, although they may receive only 75 
per cent of the minimum for any period in which they 
work under a learner's permit, a U.S. Labor Depart- 
ment device which takes into account the extended 
training required for the physically handicapped. Stu- 
dents generally do not combine work and study in 
excess of 40 hours a week; in most cases they work 
28 hours a week— 20 hours a week from Monday 
to Friday and eight hours on Saturday. Employers 
participating in this program pay the students' wages, 
but Federal funds (up to 100 per cent) are available 
to reimburse them for any added training costs in- 
curred because the students' productivity is low. 

'The part-time cooperative education plan is 
undoubtedly one of the best in the field. . . ." 

First applied to collegiate engineering, cooperative 
education has been adapted to high school vocational 
programs with some success. Inexplicably, it has 
rarely been used in junior colleges, although they ap- 
pear to offer excellent opportunities for this program. 

The part-time cooperative education plan is un- 
doubtedly one of the best in the field of vocational 
education. It yields high placement records, high em- 
ployment stability and high job satisfaction. It trains 
students very quickly and is popular with them. It 
may be too popular. Many more students apply than 
can be accepted in these cooperative plans. For this 
reason the Federal government is providing grants to 
encourage school and college administrators, busi- 
nessmen and educators to increase their participation 
in cooperative education. 

Cooperative education has been especially success- 
ful in the field of retailing because stores have always 
hired part-time workers for peak periods such as the 
Christmas shopping season, but manpower directors 
of leading corporations are coming to see its advan- 
tages. It gives their personnel departments a far better 
opportunity to study and assess students and helps 
build up a pool of prospective workers who are 



All businesses, including the Bell Sys- 
tem, are interested in getting a better 
educated job applicant. There is growing 
evidence that it will take more and more 
time, money and manpower to train new 
employees because graduates of urban 
high schools are deficient in reading, 
writing and arithmetic. 



So far, few signs of innovation have 
been seen within the partnership move- 
ment. Some partnerships are old relation- 
ships with new labels. Small work-study 
projects and other traditional forms of 
industry-education cooperation seem to 
prevail. But most of the partnerships are 
new and they may provide an atmosphere 



in which genuine innovation will occur. 
Whatever the approach — and it varies 
from company to company— all partner- 
ships have the same end in view: to help 
students understand the direct relation- 
ship between what happens to them in 
school and what will happen to them 
when they enter the world of business. 



knowledgeable about their companies before they 
commit themselves to full-time work. 

A number of corporations have discovered that by 
opening up their own schools they can provide addi- 
tional educational opportunities to youths, increase 
specialized manpower supplies arid make a profit in 
so doing. In the last decade many industrial giants 
either absorbed existing vocational-technical schools 
or opened new ones. For example, Crowell Collier 
and Macmillan earns about 20 per cent of its profits 
from schools such as the La Salle Extension University, 
Berlitz Language Schools and the Katharine Gibbs 
Schools. International Telephone and Telegraph Cor- 
poration entered the education industry in 1966 when 
it acquired Howard W. Sams, Inc., a publishing com- 
pany in Indianapolis. Many conglomerates have made 
similar acquisitions. ITT now has 33 schools that train 
students in technical fields, business, trade and fash- 
ion. U. S. Industries began its school business a few 
years ago by acquiring two secretarial schools in Cali- 
fornia—has operated profitably with these schools— 
and is investing in new facilities to meet demand. 

"We must learn to design programs without 
regard for administrative conveniences. . . ." 

Another suggestion for easing a youngster's transi- 
tion from classroom to job would be to place the 
secondary schools on a year-round schedule, thereby 
enabling them to graduate classes three or four times 
per year. This would eliminate the job crush in June 
and would relieve the U.S. Employment Offices of 
the nearly impossible task of placing thousands of 
would-be workers in a few weeks. One official of the 
U. S. Office of Education has said, "We must learn 
to design programs without regard for the conven- 
tional administrative (but not educational) conve- 
niences of quarters, semesters, six-week or nine-week 
terms, Carnegie units and quarter-hour and semester- 
hour formulas. We must learn to design differentiated 
curricula so that persons may exit at any time for 
employment or may progress to advanced school 



work without regard for the school calendar or the 
college catalogue." 

The United States Chamber of Commerce has sug- 
gested that one of the ways to lower barriers for first 
employment of youth would be to authorize special 
wage scales for inexperienced persons. Differentials 
between youth and adult wages are common in 
Europe, where they have been used for many years. 
In Belgium, for instance, collective bargaining agree- 
ments provide for lower wages for persons under 21 
years of age. The wages vary according to age, sex, 
skill, industry and cost of living. 

'Subsidies would be paid only to employers 
who provide new jobs." 

The Chamber of Commerce also recommends an 
outright payroll assistance payment to employers 
who provide new jobs for unskilled young people at 
the stated Federal minimum wage. The Chamber rea- 
sons that many persons are not hired at the minimum 
wage because they are not worth that wage in terms 
of their productivity. The subsidies would be paid 
only to employers who provide new jobs. No subsidy 
would be paid to employers who would hire youths 
to replace or compete with labor now employed at 
minimum wage rates. 

According to the Chamber, the plan would be rela- 
tively inexpensive, especially if compared with relief 
or welfare costs. For example, if a subsidy of 50 cents 
per hour was granted to a million teen-agers who 
worked a 40 hour week, the total bill would be $1 
billion annually, but a portion of this would be re- 
turned to the nation in income tax receipts. There 
already exists some precedent for such an idea in the 
sheltered workshops and learner's permits for the 
handicapped. Labor unions, however, are very much 
against this type of subsidy. As one union executive 
said in closed hearings of the U.S. Civil Rights Com- 
mission, "We can't see spending 100 years putting 
a floor on wages and then having a bunch of social 
workers blithely tear it down." D 



) 





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■^-k*r 



Poverty 

and 
Plenty 

Young Americans at Work and Elsewhere 



by Edwin Harwood 



Al Smith, some of us may remember, did very well for 
himself in the politics of New York State 50 years 
ago despite a childhood of great poverty. 

Al Smith had to abandon his studies at 12, when 
his father died. He had contributed what he earned 
as a newsboy to his family even before his father's 
death. Now he had to work in earnest, in a man's job, 
if such could be found. By his midteens he was help- 
ing to support his mother as a laborer in an oil factory 
at $8 a week. Then he found a job in New York's 
Fulton Fish Market. The 12-hour workday started at 
4 A.M. and paid $12 a week. 

Al Smith was an atypical lad. He made it to the top 
in a field that was every bit as competitive and indi- 
vidualistic as the business enterprise of that era. But 
his experience as a teen-ager was common. Family 
tragedies like his own forced many teen-agers to take 
over part or all of the burden of supporting parents 

Mr. Harwood, an Assistant Professor of Anthropology and So- 
ciology at Rice University, Houston, Texas, says he is probably 
the only sociology graduate of the University of Chicago who 
entered a liberal and left a confirmed conservative. Research for 
his Ph.D. and work with the Youth Corps got him interested in 
the economic adjustment of young people. 



and younger brothers and sisters, before they could 
establish their own households. The motive for hard 
work at a tender age was not a soul-straightening 
Protestant Ethic. Al Smith was no Protestant. Instead, 
it was simple economic necessity that, building on 
the affection most boys felt for their families, called 
conscience to duty as an accessory. 

Many blue-collar workers earned too little in the 
best of times to provide adequately for their families. 
Workers fell ill more frequently and more seriously 
than today. Unemployment and disability insurance 
did not exist, nor for that matter did Social Security, 
or company pension and hospitalization plans. Add 
the fact that many parents died before their youngest 
children matured and we have all we need to com- 
plete the picture: 19th-century poverty, though it 
ruined many families beyond repair, nonetheless 
muscled many boys into an early manhood. 

This comes out clearly in an investigation of child 
labor reported by the Bureau of Labor in 1904. In 
that study, youths over 16 were found contributing 
their earnings to their families in a majority of the 
families with working children. Indeed, young men 



old enough to be voters were often still supporting 
their parents and younger siblings. The report goes on 
to point out that though child labor laws existed in 
many states, age restrictions could be waived for very 
young children under 12 if they had to work to sup- 
port a widowed mother or disabled father. 

No Soft Sentiments 

In textile factories, these children worked 55 to 60 
hours a week for three to five dollars a week. In New 
York City, many of the youngsters employed by the 
telegraph and messenger services were under 14. 
They worked 10 hours a day, six days a week. News- 
boys in New York reported to the circulation bosses 
on Park Row at 4 P.M. for a 14-hour day that netted 
three dollars a week. Those orphaned or abandoned— 
as many educated people assumed, by parents who 
had fallen victim to the grogshops— could pay six 
cents a day for room and board at the Newsboys' 
Lodging House. Others were shipped by the Chil- 
dren's Aid Society to Western farmers who worked 
them from sunup to sundown. 

The tough times did not give rise to soft sentiments. 
Elite opinion was heavily conservative. Many edu- 
cated people believed the poor remained poor be- 
cause of individual moral and biological failings: 
sloth, drunkenness or inherited defects. The idea that 
society was deficient in certain respects, that public 
health, welfare and educational facilities were inade- 
quate, or jobs lacking, or that many jobs did not pay 
enough to support a satisfactory standard of living 
for working families hardly registered on the social 
conscience of that era. 

Perhaps we should say these conditions could not 
be allowed to matter to the 19th-century social con- 
science, because government lacked the wherewithal 
to act on them. To have proclaimed a War on Poverty 
then with the resources available to government at 
the time would have been dangerous folly. Only our 
economy's rising industrial productivity over the years 
could ameliorate the poverty of many urban working- 



class families, and this could only be an achievement 
of business, not government. 

Of course we all know things are better today. 
Those who have drawn our attention to the problems 
of urban poverty in the last decade— joblessness, slum 
housing, rats, roaches and other urban ills— cannot 
deny the evidence of great economic progress since 
Al Smith's time, nor have very many done so. On the 
other hand, those who have helped to turn elite or 
"establishment" thinking in the direction of greater 
social concern— and I include not just the sociologists 
and free-lance militants in the Poverty War's prae- 
torian guard but influential business and political 
leaders as well— failed in their diagnosis of some of 
our problems. Let us consider youth "joblessness," as 
it came to be called. Young adults, it was argued, were 
unemployed in large numbers during the past decade 
for reasons of poverty and the lack of jobs. 

Riots Better Than Letters 

However, the facts say something else. First, we had 
very high rates of teen-age "joblessness" and no small 
trouble with youth during the 1960s. But consider: 
as business picked up rapidly in the 1960s, the nation 
had less joblessness and more money to spend on 
more goods than at any previous time in its history. 
Unemployment dropped as dramatically among black 
men as it did among whites, and the younger and 
better-educated blacks were advancing into jobs of 
which their parents never dreamed. More young 
people were going to school and staying longer, at a 
time when part-time jobs, the very jobs youths in 
school seek, had a faster rate of growth than full-time 
jobs, though the latter also grew rapidly. Despite this 
prosperity,society had to put up with much gaff and 
destructive behavior from young people. 

Many a businessman, hard pressed for workers, 
could well wonder where young people got the time 
and money both to stay out of the labor force and 
raise a ruckus in the streets. Our newscasters believed 
they were "telling it like it is" when they kept inform- 



10 



ing us that ghetto youths were becoming restive be- 
cause of joblessness. They added what seemed at the 
time a sophisticated but was in facta dangerous item: 
that street rioting might well serve for the poor the 
same function letters to congressmen serve for mid- 
dle-class Americans. 

The statistics appeared to support their view of 
this particular urban problem. During the 1960s, 
teen-age unemployment increased despite the dra- 
matic decline in the rate for the U.S. as a whole 
Among teen-agers 16 to 19 years old in the labor force 
in 1969, almost 13 per cent were unemployed. This 
was four times the national unemployment rate. 
Teen-agers in big city neighborhoods where, accord- 
ing to Bureau of Labor statistics, poverty was most 
concentrated, experienced much higher unemploy- 
ment. A survey of six large metropolitan areas during 
1968-69 showed teen-age unemployment ranging 
from 25 per cent in the ghetto neighborhoods of New 
York to 36 per cent in Detroit's low-income districts. 




Crash government programs that would provide 
youths subsidized jobs and training— the Neighbor- 
hood Youth Corps and Job Corps were the most im- 
portant—seemed fully justified. 



Statistics Are Deceiving 

But the question remains: how many youths des- 
perately need jobs and the cash that jobs provide, but 
are unable to find work? We know that many young 
people do not seriously seek jobs in the same way 
adult household heads do. Take the case of a young 
man still in school who wants a part-time job com- 
patible with his classroom hours and accessible from 
the standpoint of travel time. If he does not find a 
job meeting his special conditions, he will be counted 
unemployed if the canvasser knocks on his door dur- 
ing one of the surveys carried out by the Current 
Population Survey every month in 50,000 U.S. house- 
holds. Failing to get the right part-time job, he con- 
tinues to live with his folks and go to school. He just 
puts off buying the accessories he wants for his car. 

An unemployed man with a family to support is a 
very different matter. Yet the Bureau of Labor Statis- 
tics makes no distinction between the two sorts of 
unemployment. Edward Kalachek, a labor economist, 
says that youths had no more difficulty getting jobs 
than adults in the sixties. Their higher unemployment 
actually reflected their higher rates both of initial 
entry and of reentry into the labor force, which was 
three times that of adult workers. Mr. Kalachek notes: 

"Youths, who in earlier periods would have entered 
the labor market on a full-time basis in their mid- 
teens, were now likely to enter and reenter several 
times during their school careers, each time running 
the risk of exposure to unemployment." 

Another labor force expert, Hugh Folk, tells us that 
if the new entrants and reentrants were excluded 
from the teen-age head count, the unemployment 
rate of the "permanent" youth labor force would be 
much closer to the national rate. A simple analogy 
illustrates the point. Consider the behavior of adults 



11 



and children occupying seats on a passenger train. 
The children get restless and move frequently about 
the car, first occupying one seat and then another. 
The adults remain fixed to the seats they took when 
they boarded. At any given time the conductor is apt 
to find more children than adults out of the seats and 
in the aisles, not because of insufficient accommoda- 
tions but because the children are hopping about to 
find a better vantage point, satisfy their curiosity 
about what's down the aisle, or make a new friend. 
Representative of today's teen-ager out of work is 
the boy who leaves his job at the gas station because 
friends lure him off on a long weekend to the beach. 
He returns home, scouts around for a new job and is 
unemployed in the interval. 

Jobs Not That Important 

Since his parents provide him with room and board 
in any case, his search is casual. After all, he works 
only to earn money for "extras." His former boss 
would prefer not to hire him back because experience 
convinces the boss that youths are unsteady workers. 
But the city's tight labor market gives no choice. 
Older married men cannot afford to work for the 
$1.75 an hour the boss can afford to pay. This boy's 
work discipline is lax because he is under no com- 
pelling need to make a serious commitment to the 
labor force. He does not support a family. 

I believe this is the typical unemployed youth even 
among the poor. He has been liberated by our so- 
ciety's greatly increased living standard to come and 
go between jobs, school, and street corner associa- 
tions as he chooses. A great number of such youths 
behaving in the same way helps account for the high 
rate of youth "joblessness." 

While I was researching Houston's Neighborhood 
Youth Corps, a program that provided jobs and cash 
to needy youngsters, the counseling staff complained 
about boys who had just "taken off" from work be- 
cause a friend needed help fixing up a hot rod or 
"the gang" had decided to take a joy ride to visit 



friends in a neighboring state. Such behavior hardly 
convinced me that their poverty was of the kind 
prevalent in Al Smith's day. Many boys frankly told 
the counselors they could make more money in a 
job they'd heard about in the private sector and 
were dropping out of the program for that reason. 

Just Enough to Get By 

My findings were not unique. In other cities social 
scientists who researched the Neighborhood Youth 
Corps also found participants absent from the pro- 
grams. Their conclusions were similar to my own: 
boys who wanted steady work could find jobs paying 
more than the work training programs subsidized 
by the Federal Government. Many apparently only 
needed enough cash to "get by," and had no com- 
pelling reason for a full-time job. 

What is the difference between the job situation 
faced by teen-agers 100 years ago and those of our 
present time? We know that 70 years ago most mar- 
riages were ended by the death of one partner before 
the marriage of their last child, while today most 
parents can continue to support not only themselves 
but their adolescent children as well. This silent so- 
cial revolution is significant because it means that 
more youths can simultaneously study longer and 
enjoy more leisure, and when they work they can 
spend much of what they earn on themselves. 

Even though those youth we call "low-income" 
have not yet graduated to such expensive pastimes 
as surfing, sky-diving or skiing, they are able to find 
both the time and the money for hot rodding, car 
accessories, transistor radios, rock and soul concerts 
and a multitude of other youth-directed consumer 
goods and services. They have these things because 
we are richer and healthier as a nation. More parents 
are still self-supporting when their children reach 
adolescence. Even among those parents who are de- 
pendent, the main burden of their welfare falls in- 
creasingly on the state rather than on their children. 
When today's young person establishes his own 



12 




family, he finally makes the serious commitment to 
afull-timejob. 

The sharp drop in the unemployment of young 
adults by their midtwenties, even in urban poverty 
neighborhoods, suggests that the above interpretation 
of teen-age "joblessness" is a reasonable one, and 
that lack of jobs is not. It suggests that poverty war- 
riors in the 1960s should have heeded the complaints 
of many businessmen, who had their ears as close to 
the ground as anyone else. Business needed but often 
couldn't find enough young workers in the tight labor 
markets of their cities. 

Efforts Well Meant 

All the many government efforts of the last decade 
to eliminate unemployment were well meant, and no 
doubt some were fully justified by the circumstances. 
There were even some youths who had to leave 



school to support parents. Some proportion of those 
"jobless" ghetto youths really could not find full- 
time jobs even with much searching. And there were, 
of course, unemployed adult men caught in declining 
regions like Appalachia or in obsolete occupations, 
who needed jobs and new skills. 

Guilt Muddles Thinking 

Yet, only our mea culpas over the poor and the 
minorities can explain tolerance for muddled think- 
ing of the kind that caught my eye recently. One of 
the contributors to a collection of papers on unem- 
ployment had sought out minority youths to learn 
how they were faring. in the prosperous sixties. When 
a 19-year-old told about his failure to get a gas station 
job, the writer asked the lad if he thought the color 
of his skin had anything to do with being rejected. 
The youth replied no, he suspected it was because 
of the ornamental ring he wore in one ear. Well, why 
didn't he get rid of the ring, the interviewer asked. To 
which the 19-year-old replied, "because the earring 
is me, man, that shows who I am." 

The author gave this as an example of how "in the 
absence of an occupation, young people must seek 
other means of establishing their identity." Not only 
does the author's explanation reverse cause and effect 
here, but he seems totally unaware of the irresponsi- 
bility implicit in the youth's statement. If the young 
man had a desperate need to work we could hardly 
credit the excuse he gave. 

Today we have the resources to help our disad- 
vantaged youths to an extent not at all conceivable in 
Al Smith's day. But this does not justify trying to make 
a case for social action on a false premise— that youths 
we call poor today are jobless primarily for reasons 
of poverty, or circumstances similar to those faced by 
Al Smith and his peers, as the popular catchphrase 
"hard core" suggests. On the contrary, it is not the 
failure of our economy but its very success in creating 
more leisure, money and longevity, that explains the 
persistence of high levels of teen-age joblessness. D 



13 




Innovation is a "buzz-word" today. In both the 
popular and technical press we find with increas- 
ing frequency such topics as "What Is Innova- 
tion?," "The Impact of Innovation on Society," "How 
to Manage the Process of Innovation," "Innovation 
and the Money Market," and even "The Love-life of 
Innovators." 

In all of these articles we are told whether, when, 
where and how to innovate, but little attention 
seems to have been paid to what to innovate. This 
important and intensely practical question is probably 
the most difficult of all to answer. 

The manager of a technical enterprise who is trying 
to decide how to allocate his technical resources 
among various proposed projects finds himself con- 
fronted with an array of complex questions. 

Mr. Dacey, a Vice President of Bell Telephone Laboratories, 
Holmdel, N.I., is responsible lor customer equipment, trans- 
mission media and electronic power systems development. He 
joined the technical staff at Bell Labs in 1951 after receiving a 
Ph.D. in physics from the California Institute of Technology. 



Is it technically feasible? What will the develop- 
ment cost? Will people want it? Will it be socially 
desirable? In view of all these imponderables it is 
surprising that the rate of technical innovation re- 
mains so high. 

Let us examine the tools and methods which the 
technical manager has to help him answer the ques- 
tion of what to innovate. He might start by asking a 
question: "where do new technical ideas come 
from?" The answer— from people. After all, every 
scientist, engineer, manager is a consumer. He is able 
to ask himself, "What would I like to have if it were 
possible technically?" The technical manager is given 
many suggestions by the marketing department, and 
even his friends, wife, and children. Out of these he 
must select a project which seems both desirable and 
technically feasible. 

With this variety of subjective inputs the ability to 
objectively judge technical feasibility is perhaps the 
single most important talent an innovator needs. Every 



14 




prominent technical organization is flooded with 
"inventions" from would-be inventors. 

One such invention reached my desk recently 
sounding something like this: "My invention is a tele- 
phone which displays the number you have dialed. 
It has a little window at the top of the telephone with 
numbers behind it. As you dial your number it comes 
up behind the window. Then, after you have made 
sure the numberis right, you push a sortof littlebutton 
down at the bottom of the telephone and the number 
is automatically dialed." The amazing thing is that the 
person who made the suggestion seriously thought he 
had made an invention. He had coped with the ques- 
tion what to innovate, but had no idea how to make 
the gadget work. 

Other basic questions that must be answered about 
what to innovate are: 

Is the product needed or desired? Is the basic 
science known? Can it be made economically? 

For example, in 1877, a year after Bell invented the 



telephone, a picture depicting "see-the-person-while- 
you-talk"— a forerunner of Picturephone® service- 
was shown at the Paris World's Fair. Even then, the 
device was desired. It couldn't be made then, but 
could have been manufactured at high cost in the 
1930s or '40s. It's only in the past few years that 
Picturephone service came into the realm of technical 
plus economic feasibility. 

New products and services, however, are not the 
sole province in which to innovate. There are many 
existing products that can be made to do more and 
can be manufactured more cheaply. 

Take the basic telephone handset. Over the past 
70 years it has changed drastically in both function 
and design. This has been done to make it a better 
functioning instrument, make it more attractive look- 
ing or manufacture it at a more economical cost. 
Each was a result of innovation. 

Sometimes the question of "what to innovate" is 
answered by the natural development of a new tech- 



15 



nology. A classic example is the transistor. In ad- 
dition to its own success it has helped to stimulate 
the development of solid-state science, resulting in 
many additional devices. A departure from existing 
technology can also lead to innovation. The applica- 
tion at Bell Labs of transistor-like technology to mag- 
netic materials instead of to semiconductors, for 
example, has led to a new technology called magnetic 
bubbles. A piece of magnetic material, one inch 
square by one-thousandth of an inch thick, may some- 
day store a million bits of binary information for use 
in telephone switching equipment and computers. 

Few innovations just happened, either in the "ga- 
rage" lab or the highly sophisticated laboratory. They 
came about because they were needed and the inno- 
vator believed they could happen. 

An example of need giving rise to innovation in 
transmission technology is millimeter waveguide. 
During the 1980s telephone transmission needs will 
be double what present facilities can offer. In the late 
1930s, a group of Bell Labs scientists headed by 
George Southworth first found the answer. : 

These men started working with millimeter wave- 
guide with the idea that someday it could be an eco- 
nomical and efficient method of transmitting com- 
munications. They periodically worked on their idea 
through the years. Only recently has the economics 
of the situation justified the full-scale development 
of this new communications system. 

Seeing the Need 

The system focuses on a buried pipe about the size 
of a man's wrist which will someday carry a quarter 
of a million simultaneous telephone conversations. 
This system will help meet expected growth in long- 
distance calling and data communications service 
through the 1980s. 

As this example shows, innovation can sometimes 
have a long "incubation" period. And what about 
the post 1980s? Today more than a hundred scientists 
and engineers at Bell Labs are working with lasers 
as a far-future communications medium. 



Estimates of technical feasibility by an experienced 
engineer or technical manager may be highly reliable. 
Nevertheless, as in the case of the waveguide and 
laser examples, a large amount of development effort 
must frequently be committed before a feasible 
model is in hand. It is very desirable, therefore, to 
obtain an estimate of user acceptance of a product 
before committing substantial amounts of money and 
manpower to it. In recent years the field of user pref- 
erence studies has grown to answer such questions. 

For instance, in 1958, J. E. Karlin and his co-workers 
at Bell Laboratories developed a simulation laboratory 
called SIBYL— named after the sibylline oracles cred- 
ited by the Romans with being able to foresee the 
future. An early use of SIBYL was to study user re- 
action to voice dialing. 

Human Being In the System 

To make a call a user speaks the desired number 
into his telephone, whereupon a machine in the 
central office recognizes the desired digits and com- 
pletes the call. A machine which can do this is even 
today beyond the state of technical art. 

SIBYL was, however, able to simulate such a ma- 
chine by using a human being in the system. An oper- 
ator—acting like a machine— remained silent, listened 
to the number spoken and then dialed it with a 
speeded up finger dial. 

A group of people used this "dialing machine" 
alternating between voice and finger dialing at week- 
ly intervals. The system was used for some months 
until the people were no longer conscious of partici- 
pating in an experiment. The group was questioned 
before and after the experiments. A poll of the group 
before the experiment showed that most preferred 
finger dialing to voice dialing, because of self-con- 
sciousness in talking to a machine. 

Actual experience with voice-dialing revealed that 
the participants did not develop feelings of strange- 
ness in talking to a machine. In fact, those who stut- 
tered had much less difficulty communicating with 
what they thought to be a machine than with a live 



16 



operator. This is more evidence that stuttering is a 
social rather than a physiological phenomenon. 

Another new tool in the user preference area is 
"Multidimensional scaling." Introduced by R. N. 
Sheppard and J. D. Carrol! of Bell Labs, this method 
mathematically organizes such data as market surveys, 
customer polls and other service or product aspects 
to give it meaning. It appears that this may be a power- 
ful technique in putting the analyses of large masses 
of subjective data on a more scientific basis. 

The time comes, after the alternatives have been 
examined, the surveys and the analyses completed 
and the early technical feasibility established when a 
full-scale development must be launched. The ques- 
tions now are: Did the project succeed? And should 
large-scale manufacture be initiated? 

Where the new development is a replacement for 
an existing one, the economic criteria for success are 
usually apparent. The project was initiated in the first 
place because it promised to be cheaper, or less costly 
to maintain, or to have a longer life or some other 
economic advantage. 

Was It Worth It? 

In those cases where a development represents 
something totally new, it is common in the Bell Sys- 
tem to hold a "market trial" of a new product before 
committing it to large-scale manufacture. For exam- 
ple, in the case of the Trimline® dial-in-handset tele- 
phone, thousands of models were constructed in a 
pilot manufacturing line and introduced to service 
in two selected cities. The results showed that people 
from both average and affluent areas liked the tele- 
phone and were willing to buy it at a reasonable 
price. It was then possible to predict the probable 
usage of the phone on a nationwide basis. 

I have been emphasizing so far the more quantita- 
tive and objective aspects of the decision whether or 
not to undertake a new project. These questions are 
difficult enough, but the social aspects are even more 
imponderable. When one attempts to face the ques- 
tion as to whether a new product or service will add 



to or detract from the quality of life or the environ- 
ment, one rapidly becomes entangled in personal, 
political and social philosophies. I can, accordingly, 
only give my own viewpoint. In my opinion, the pref- 
erences of people, that is, the checks and balances of 
the marketplace — imperfect though these may be— 
are the best guide we have for social desirability. 

After Innovation, Then What? 

In the first place, the social consequences of a new 
development are largely unpredictable. Henry Ford, 
when he was considering the mass production of 
automobiles, had no way of knowing the way in 
which life would be transformed by inexpensive, 
readily available automotive transportation. If he had 
thought about air pollution, traffic deaths and the like, 
he might have decided to give up the whole idea. On 
the other hand, had he foreseen the possibilities of 
suburban living, family vacation trips and the like, he 
might have been doubly enthusiastic. 

The vast changes which the automobile has 
wrought upon our society have come about because 
people wanted automobiles and bought them in large 
quantities, and are still doing so. Society will evolve 
in desirable directions, in my opinion, provided that 
people are given a wide range of choice and the true 
facts about new developments to the extent that it is 
possible to know them. 

Such a pluralistic approach, of course, is inefficient 
because, in order to have a wide range of choice, 
many projects must be offered and some will fail. 
Until our predictive powers are vastly better than they 
are today, however, I see no alternative. The planned 
society may represent an efficient use of human re- 
sources. If, however, the plan is wrong, or goes astray, 
we may have very efficiently manufactured a hell 
rather than a heaven. 

We must have faith in the basic intelligence of 
human beings. If people are offered a wide range of 
choice and are informed about the potential side 
effects of new things, in my opinion they will choose 
wisely and well. D 



17 



Who Gets Promoted? 



by Don Fyffe 



Who are the corporate promotables? 
Why are they promotable? What 
qualities do they possess? How high in 
the corporate structure can they rise 
with what qualities? Is promotability an 
accurate measurement of managerial 
ability? Or is it only a statistical 
measurement of personal 
advancement? 

Promotability is the universal yardstick by which the 
value — real or assumed — of an individual to his com- 
pany is measured. Most managers assume that pro- 
motability is based on such objective criteria as 
dedication, loyalty, technical knowledge and hard 
work. Yet if these are valid assumptions, how can we 
account for the opportunism so evident in many suc- 
cessful executives? Is self-interest a necessary ingre- 
dient for success? Should we consider the opportu- 
nistic group activities that exist in most organizations? 
Can we conclude that promotability is based on valid 
methods of measurement? These are some of the 
questions executives ask as they face the age-old 
problem of selecting employees for advancement. 

When the various managerial approaches and per- 
sonalities of typical executives are classified, their 
effectiveness can be objectively evaluated. Our anal- 
ysis has produced five basic classifications of pro- 
motable managers. 

We suggest that the reader evaluate his managerial 
personality by selecting the statement which is most 
descriptive of himself. 

1. I think I owe my company my loyalty and best 
efforts. I believe my primary responsibility is to do 

Mr. Fyfle is a Division Commercial Supervisor for Southwestern 
Bell, Lubbock, Texas. The Corporate Promotables, a book he co- 
authored with Sexton Adams, Associate Professor of Management, 
North Texas State University, was published late last year. 



the best possible job I can in the best interests of my 
company. I devote myself to hard work to ensure that 
my company's objectives are met. 

2. I think I owe my company my loyalty and best 
efforts. I believe my primary responsibility is to lead 
my people in meeting our objectives, insisting that 
they meet them, and following up to see that we are 
successful. I devote my energies to obtaining or ex- 
ceeding the results my company expects. 

3. I think I owe my company my loyalty and best 
efforts. I believe my primary responsibility is in ob- 
taining the best possible performance, and I've found 
that to do this you sometimes have to be just a little 
bit smarter and provide a little better leadership than 
others are capable of providing. I devote my energies 
to analyzing the opportunities in my company for 
outstanding contributions and leading my people to 
superior performance. 

4. I think I owe my company my loyalty and best 
efforts. I believe my primary responsibility is in pro- 
viding an environment that is conducive to coopera- 
tive effort and that will permit my people to meet 
company objectives. I devote my energies to leading 
my people through harmonious efforts to ensure that 
my company's objectives are met. 

5. I think I owe my company my loyalty and best 
efforts. I believe my primary responsibility is in pro- 
viding the leadership required to obtain the best pos- 
sible performance through motivated people con- 
sistent with fair treatment. I devote my energies to 
constructive planning, development of managerial 
talent and guidance of my people. 

The Technician 

Number One describes the Technician. He is com- 
pany oriented and his approach is based on hard 
work, technical knowledge, experience and loyalty. 
He thinks in terms of what is good for the company. 
He is often found in the staff organization. 

The Technician is common in all companies, and 
we might question whether an organization could 



18 



^A 






operate effectively without these workers. Their 
efforts are usually directed toward work, often hard 
work, and they seldom attempt to develop them- 
selves for promotability after employment, although 
college-graduate Technicians are common. 

The term Technician is used as a personality type 
rather than as a definition of those people engaged 
in highly technical work such as chemistry or physics. 
Those so engaged may fall in any of the classifications. 

The following comment illustrates the Technician's 
philosophy: 

"I really dislike to see the way some people take 
advantage of the company, doing as little as they 
can. We're all in here to work; or we're supposed 
to be. I don't mind doing my share, but I think every- 
body else ought to, too. At least I don't have to back 
up to get my paycheck. I earn mine." 

Probably his most significant trait is his general 
unwillingness to adapt himself to his organization's 
expectations or requirements for promotability. He 
does not attempt to adjust to the informal system of 
operations but usually prefers a straightforward and 
"by-the-book" approach. He normally has limited 
ambition and is unwilling to make the sacrifices re- 
quired for promotability. 

For these reasons the Technician is seldom found 
above the second level of line organizations and 
third-level operational staff assignments. Some Tech- 
nicians reach the third level in staff organizations 
because of the need for stable, intelligent and highly 
skilled staff managers. 

The Dictator 

Number Two is the Dictator. The Dictator steps 
on toes, is aggressive, drives his people, is interested 
only in production, may be inventive, shows initiative, 
and his image is of one who fights to win and, per- 
haps rightly or wrongly, wins. He stands on his results 
and may be credited with results not actually attained. 
People seldom want to work for him. However, he is 
often a successful manager. 

The Dictator is interested in results, and his per- 
sonal philosophy is directed almost entirely to obtain- 



ing the results expected or those he thinks are ex- 
pected from higher management. He is ambitious 
and competitive and uses the results he obtains as 
a method of advancing in the organization. 

The Dictator is sometimes prone to get results he 
knows are not in the best interests of his company, 
and in extreme cases he may be somewhat uncon- 
cerned about the methods. These results are, how- 
ever, believed to be in his own best interests. He 
develops a reputation for action, for taking the initi- 
ative, which sometimes relieves his boss of the re- 
sponsibility of personal involvement. 

The Opportunist 

Number Three describes the Opportunist. He is 
usually intelligent and at least superficially person- 
able. He is almost completely self-oriented, and re- 
sults attained for the company are in his own best 
interest, in extreme examples, his ethics may be 
questionable. He is often quite adept and conse- 
quently promotable. 

The Opportunist is found at the third and higher 
levels of management. He is in the lower levels, too, 
but is more difficult to detect there since his oppor- 
tunism must be disguised if he is to survive. Those 
who display an appreciable amount of opportunism 
at the lower levels are usually separated from the 
company, both as a result of detection by higher man- 
agement and by failure to get the desired results from 
their people, who tend to oppose their efforts. Con- 
sequently, the Opportunists who survive the lower 
levels are the more perceptive and able individuals. 
At the third and higher levels, the Opportunist usu- 
ally progresses as rapidly as the Executives, Dictators 
and Noncontroversial Conformists. 

The Opportunist's proclivity for self-perpetuation 
is evident in these comments: 

"Bill has been in trouble off and on ever since he 
quit working for... (the Opportunist). He was held 
back a time or two, demoted once and almost fired 
the way I hear it. Then... (the Opportunist) comes 
back at a higher level and first thing you know Bill 
starts getting promoted again, bang, bang, bang, and 



20 



now he's the number two man. Figure that one out." 

The Noncontroverslal Conformist 

Number Four indicates a Noncontroversial Con- 
formist. He is a friendly, likable, conforming, warm, 
intelligent, socially adept individual. He does not 
crusade for better management and often gets credit 
for abilities he doesn't always use or perhaps possess. 
He seldom sticks his neck out and consequently stays 
out of trouble. People normally like to work for him 
since he lets them produce. Therefore, he is usually 
successful as a manager. He is often highly pro- 
motable. 

This classification is appropriate for a large per- 
centage of upper-management people, especially in 
those large firms with less than total objectivity. 

The Executive 

The manager who fits in the fifth classification is 
the Executive. His self-interest is constructive, and he 
is sincerely interested in the company. He is not a 
Dictator or Opportunist and may resemble a Non- 
controversial Conformist except that he does some- 
thing. He is the most successful and productive man- 
ager. He usually displays a flexible approach designed 
to meet the requirements of the specific conditions. 

The Executive has a flexible leadership style. He 
considers the most appropriate managerial approach 
under given circumstances, the employees to whom 
it is directed, and appropriate timing. He relies on 
democratic methods but reserves the final decision 
for himself. He works through motivated people and 
promotes conditions that integrate high productiv- 
ity and high morale through team action. 

There are varying degrees of ability within any 
classification. For example, a Technician or a Dictator 
may be highly skilled or he may have lesser talents. 
A highly skilled Dictator may be more effective than 
an average Executive. 

An Executive may act as a Dictator for a temporary 
period if the condition requires this approach. He will 
sometimes initially take a dictatorial approach when 
assigned to an operation requiring immediate cor- 



rection. After correction, he reverts to more demo- 
cratic methods. 

Here are some factors affecting promotability: 

PERCEPTIVITY The official or stated policy and the 
actual expectancy are often conflicting. Loyalty and 
hard work, for example, may be stated requirements, 
but opportunistic self-interest may be rewarded. Per- 
ceptive and ambitious managers adapt to the informal 
organizational expectancies. 

THE PERSONAL IMAGE Showmanship is often essential. 
The image a person projects is often more important 
than his actual capabilities. It is the image, not the 
man, that is judged in terms of accomplishment and 
promotability. 

HORIZONTAL AND VERTICAL CLIQUES In all compa- 
nies, employees tend to form cliques both among 
peers and among managers at different levels. These 
meet social needs and further individual self-interest 
through group relationships. In companies with less 
than total objectivity, the promotability is much 
greater for clique members. 

SOCIONEPOTISM Socionepotism is group oriented 
and contributes to promotability. It is directly related 
to opportunistic cliques since it is the interpersonal 
relationship of members which provides the impetus 
for nepotism. Members perpetuate themselves in 
their own image through selection of new members 
whom they have promoted. 

ADOPTIVE NEPOTISM This usually involves individuals 
rather than groups and results from the natural incli- 
nation to assist one's friends. Self-perpetuation 
through adoptive nepotism may result from the selec- 
tion and training of a replacement, in which case it 
is normally the individual's operational philosophy 
that is perpetuated. 

Basic to promotability is a sound balance between 
self-interest and company interest. Ability, flexibility, 
the perception to determine actual corporate expec- 
tancies, and adaptability are the prime considerations 
of promotability— in any organization. O 



21 



The Better 
To Grow On 



The photographs on these two pages show some of 
the key people involved in corporate history's biggest 
financial venture. AT&T offered its 3.1 million owners 
30-year debentures with warrants to purchase nearly 
31.5 million shares of company stock. The goal: to 
raise over $1.5 billion dollars with which to build 
and improve communications facilities and services 
through 1970. A billion and a half dollars is a lot of 
money. It is more money, in fact, than 36 of the 50 
state governments spend in a year. 

By presenting 35 rights (one right for each AT&T 
share owned) and $100, a share owner received a $100 
principal amount debenture, which has an interest 




22 



rate of 8% per cent. Each $100 debenture came with 
two warrants, each entitling the holder to purchase 
for $52 a common share of AT&T stock any time be- 
tween Nov. 15, 1970 and May 15, 1975. The rights to 
purchase debentures expired May 18. As BTM went 
to press, indications were that subscriptions to the 
offering — about 50 per cent of which were by pres- 
ent share owners— totaled 98 per cent of the issue. 
The remaining two per cent was to go on sale at a 
later date. 

The logistics and organization behind the offering 
were staggering. Some 4,000 people, both Bell and 
non-Bell, at 23 locations throughout the nation were 




involved in the preparation, processing of paperwork 
and the handling of share owner inquiries. Mailing 
costs for the 270 tons of material processed chiefly 
at AT&T's Raritan River Center in New Jersey came to 
about $1 million. 

In addition, toll-free telephone information centers 
were set up in Chicago; Columbia, S.C; Orlando, 
Fla.; Philadelphia; Boston; Sacramento; New York 
City; White Plains and Hempstead, N.Y. 

A hub of activity during the offering was the AT&T 
headquarters lobby at 195 Broadway, New York 
(below), where share owners and those there to help 
them met to transact business. 

In the left photo, three of those responsible for 
the massive financing operation accepted BTM's in- 
vitation to strike what the editors thought an appro- 
priately symbolic pose at capitalism's crossroads- 
Broad near Wall Street. From the left, John J. Scanlon, 
AT&T Vice President and Treasurer; John D. deButts, 
AT&T Vice Chairman; and Robert N. Flint, AT&T 
Assistant Treasurer-Financial Division. In the back- 
ground is the New York Stock Exchange, where the 
debentures, warrants and rights were traded. D 




23 






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A 
Booming 

Technology 



A 
Better 

Environment 



Can We 
Have 

Both? 



by Morris Tanenbaum 



Although, from a pedantic point of view, technologi- 
cal innovation began in the Stone Age, it is only in the 
past few hundred years that man has developed the 
ability to use technology to make major changes in 
his environment, and only in the last century that this 
control has gained global proportions. 

Today there is little question that many of the 
dominant physical characteristics of the modern 
world are the direct result of technology. Thus, tech- 
nological innovation is a major determinant of man's 
environment, and I use the term environment in its 
broadest sense, reflecting not only the physical sphere 
but the social, political and economic as well. 

In addition, today the quality of our environment is 
a matter of increasing attention and concern in the 
public's mind. And, as the realization grows that 
technology is the dominant tool in man's ability to 
change his environment, public attention focuses on 
technology and the technologist in a manner which 
is new and unfamiliar in its intensity and direction. 

This new attention creates new problems for the 
generators and managers of technological innovation. 
It produces fundamental changes in the boundary 
conditions which have guided innovation in the past. 
It creates new criteria against which innovation is 
judged. And these new criteria are different in funda- 
mental ways. 

Technological innovation is the novel application 
of physical knowledge and technique to make pre- 

Mr. Tanenbaum is a Western Electric General Manager in Engi- 
neering and has been with the Bell System since 1952, when he 
received a Ph.D. in physical chemistry from Princeton University. 
He has been granted several patents as a result of his work in 
semiconductors and magnetic materials and is a noted authority 
in solid -state physics. 



25 



"Even the most jaundiced critic 
of technological abuses and 
excesses would be unwilling to 
forego technology's contri- 
butions altogether." 



"Ofcourse,onesolution to the problems 
of misapplication of technology is to 
decide thatwe've had sufficienttechno- 
logicalchangeand halt or substantially 
retard future technological innovation," 



meditated changes in the physical aspects of the 
environment. 

By any measure, technological innovation in this 
sense has been one of man's most important and 
successful social inventions. Over the centuries we 
have developed a complex system of institutions and 
methodologies for probing and understanding physi- 
cal phenomena, for developing this understanding 
into useful artifacts and systems, and for evolving 
social, political and economic methods for distribut- 
ing and applying the products of technological inno- 
vation to major sections of society. Indeed, our sys- 
tems for producing technological innovation are one 
of the principal successes of western civilization. 

There are many measures of this success. The per- 
vasiveness of technology throughout our everyday life 
is objective evidence of how successful technological 
innovation has been in gaining society's acceptance. 
In addition, an opinion survey of the willingness of 
individuals to forego past or future fruits of technol- 
ogy would show that relinquishing past benefits is 
essentially unthinkable and that the average person's 
future expectations are even greater than the benefits 
which he experiences today. 

Even the most jaundiced critic of technological 
abuses and excesses would be unwilling to forego 
technology's contributions altogether. Those most 
concerned about the population explosion would be 
very reluctant to give up modern medical care. Those 
most concerned about water pollution would be 
loath to trade today's crop yields for ancient agricul- 
tural methods, or surrender the water closet for the 
privy. Those most concerned about the automobile's 
part in air pollution would be unhappy to return to 
the horse and buggy days. 

However, the fact that we can identify major prob- 
lems such as the population explosion and water and 
air pollution, suggests that all is not well with man's 
use of technological innovation— that there are tech- 
nological abuses and excesses that are matters of 



growing concern in an increasing number of minds. 

Man's ability to affect his environment has grown 
to the point where he can produce massive changes 
on a global scale. And in some cases the changes 
could be irreversibly damaging. Nuclear war is an 
obvious example, but there are more subtle possi- 
bilities of great concern. For example, a straightfor- 
ward prediction of our power requirements for the 
1980s indicates that with present technological trends 
about 25 per cent of the total surface water in the 
United States will pass through the cooling coils 
of our power generating plants. Without sufficient 
knowledge and foresight this could produce a signifi- 
cant change in the steady state temperature of our 
surface waters, with effects on biology and climate 
which are not readily predictable. 

These hazards are not confined to political boun- 
daries. As we increase the chemical and thermal 
pollution burdens of the atmosphere and the oceans, 
the problems become of international concern. We 
are reaching the point today when we must carefully 
think through the broader and longer-range con- 
sequences of our actions to change the environment 
in which we live, so as to assure that the changes 
which we produce are, indeed, the changes that we 
desire for the future. 

Of course, one solution to the problems of the 
misapplication of technology is to decide that we've 
had sufficient technological change and to halt or 
substantially retard future technological innovation. 
To my mind— as a consumer as well as a producer of 
technological innovation— this is a completely un- 
acceptable alternative. 

Many of our present social and environmental 
problems such as under-employment, air and water 
pollution, can be corrected with the help of tech- 
nology. Indeed, much of the basic knowledge and 
technology required is now available. What is lacking 
is the economic and political means to stimulate its 
further development and application. 



26 



"It is more accurate to say that 
in the management of our 
affairs we have too often been 
bad workmen and lii<e all bad 
workmen we blame our tools." 



'Because of practical limits in our 
economic and technological resources, 
emphasis on one area such as defense 
denies emphasis in other areas such as 
housing and transportation." 



If we wish to continue to solve mankind's problems, 
I predict there will be an increasing pace of techno- 
logical advance in our future. However, it is also in- 
creasingly clear that this advance must be made with 
more care and forethought than in the past. 

There are those who despair of our ability to guide 
technology. It is not uncommon to hear warnings that 
man has been enslaved by his technical creations and 
that he has lost the power to control his technological 
Frankensteins. These fears can be placed in perspec- 
tive by remembering that although technology has 
created unprecedented power, the technology itself 
is only a tool. Sir Peter Medawar expressed this clearly 
in his Presidential address to the British Association 
for the Advancement of Science. He said, "There is, 
of course, a sense in which science and technology 
can be arraigned for devising new instruments of 
world warfare, but there is another and more impor- 
tant sense in which it is the height of folly to blame 
the weapon for the crime. I think it is more accurate 
to say that in the management of our affairs we have 
too often been bad workmen and like all bad work- 
men we blame our tools." 

Obviously, technology in itself does not possess the 
ethical qualities of "good" or "bad." It is only in man's 
application of technology that these qualities arise. 
Determining how technology will be used has its 
technical aspects. However, it also has its economic, 
political and moral aspects. Thus, the decisions which 
guide innovation must reflect the viewpoints of many 
segments of society. The technologist and the entre- 
preneur play a critical role, but they cannot function 
alone in today's technology-dominated world. 

The pace and complexity of our national growth 
call for modifications in the ways in which we estab- 
lish standards and set priorities to guide the systems 
which generate technological innovation. Technology 
has become too important for us to ignore and its 
future growth too essential for us to deny the most 
careful and considered judgments. 



Of course, these matters have not been ignored. 
In certain major areas, such as defense and space 
technologies, there has been essentially complete 
control by our society's chosen instrument of public 
interest, the Federal government. In other areas such 
as foods, drugs, communications, power and trans- 
portation, special public agencies have been estab- 
lished which seek to assure that the public interest is 
dominant in technological evolution and application. 

However, as technology becomes more pervasive, 
conflicts in priorities arise. Because of practical limits 
in our economic and technological resources, em- 
phasis on one area such as defense denies emphasis 
in other areas such as housing and transportation. 
Because our natural resources such as water are lim- 
ited, pollution by agricultural chemicals interacts with 
urban pollution, industrial pollution and the thermal 
pollution of power plants. We begin to realize that 
our past mechanisms for guiding technology were 
similarly limited in their focus of attention and have 
not been structured to react to this impinging of 
interests. 

Simultaneously we realize the tremendous new 
complexity that these interactions have created. The 
ubiquity of technology creates a universal interest 
in its effects. This greatly complicates the tasks of 
assuring that all importantly affected people— both 
clients and creators, as it were— are heard and con- 
tribute to the decisions that determine the paths of 
technological innovation. 

We cannot overlook the fact that the systems that 
create and apply new technology are complex and 
include many segments of society. They include the 
university laboratory and the retail marketplace, the 
international tariff systems and the municipal licens- 
ing agencies, the financial stockholder and the in- 
dustrial employee. 

These innovation-generating systems have evolved 
to accommodate themselves to the environment in 
which they must function. Indeed, just as there is a 



27 



"All Bell companies have been 
purchasing their motor vehicles 
equipped with devices that minimize 
the emission of carbon compounds." 



"System companies are abreast of 
other leading U.S. businesses 
and industries in contributing to 
environment improvement. Some 
System companies are, of 
course, more abreast than others.' 



complex ecology of man as a biological creature in 
his physical environment, there is also a complex 
ecology of technological innovation in its intellectual, 
social, political and economic environment. 

Significant changes in any part of this ecological 
system can have substantial effects on its input re- 
quirements and on its output. The limnologist knows 
that a change in the temperature of lake water can 
cause some biological species to disappear and others 
to flourish. Similarly, a change in market taste, in 
capital availability, in basic university research or in 
government regulation can emphasize one direction 



of technological innovation, perhaps at the expense 
of another. We must be aware that there are hazards 
as we develop new guides for technology. 

The implications of these changes are vital, partic- 
ularly in the developing affluence of our society. 
Today as man's age-old problems of food and shelter 
are disappearing from the conscious concern of the 
majority of our citizens, we are beginning to develop 
new definitions of the quality of our environment and 
life. We are beginning to suggest that we might accept 
some decrease in the rate of growth of our material 
abundance in order to retain and restore some of our 



What 
We're 
Doing 

All Bell System companies are involved with air pollution 
control. Some companies also have taken steps to reduce 
noise pollution. In addition, Bell Laboratories and Western 
Electric are investigating water and radiation pollution, and 
environmental control. 

For Better Air 

The Bell System is the world's largest private auto fleet 
owner. Since 1968, all Bell companies have been purchasing 
their company motor vehicles equipped with devices that 
minimize the emission of carbon compounds. These 
changes were introduced by the companies a year before 
Federal regulations became effective. In all cases, new 
vehicles being ordered by the companies are being 
equipped with emission-control devices. 

All companies using fuel oil for heating have switched 
to a lower sulfur content oil. Some companies have also 
installed air washing and/or filtering systems on exhaust 
stacks. In those few cases where companies use coal for 
heating, plans are under way for conversion either to low 
sulfur fuel oil or gas. Companies with building incinerators 
have either shut them down or are phasing them out. 

For Better Water 

Some companies using water for their cooling systems 
have ensured that polluted water will not escape. As a pre- 



caution they have added inert chemical compounds that 
reduce scale, algae and sludge. At Bell Labs, water used in 
research projects is passed through a treatment facility 
which renders it safe before it enters the public waste 
disposal system. 

Western Electric's Merrimack Valley Works has its own 
sanitary and industrial waste treatment facility— the largest 
in Massachusetts. The company has constructed facilities 
or developed plans for clean water facilities in Phoenix, 
Shreveport, Dallas, Denver and Atlanta. W.E.'s Indianapolis 
Works has carried out extensive testing of commercially 
available air fume scrubbers. As a result, Nassau Smelting, 
a W.E. subsidiary on Staten Island, N.Y., has reduced par- 
ticles escaping from its stacks to an extremely low level. 

For Less Noise 

Some companies are making internal noise measurements. 
A few Bell companies have installed carpeting, drapes and 
acoustical ceilings in central offices not only to enhance 
working conditions but to reduce noise levels. In several 
other companies, emergency generators have been 
equipped with baffles and silencers on air intakes and 
exhausts. 

In general, Bell System companies are abreast of other 
leading U.S. businesses and industries in contributing to 
environment improvement. Some System companies are, 
of course, more abreast than others. Many opportunities 
remain for increased System participation in the urgent and 
increasing environment-control effort. 



28 



"Fortunately, it is within 
the power of present technology 
to reverse these changes if 
we are willing to pay the costs." 




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natural inheritance, such as our water resources, our 
forests, the purity of our air. 

In the eyes of many,our concern is overdue. It can 
be demonstrated that in important areas we have al- 
ready caused undesirable changes in the condition of 
some of our lakes and rivers, our woodlands and 
atmospheres. Fortunately, it is within the power of 
present technology to reverse these changes if we are 
willing to pay the costs. However, we must also solve 
the social and political problems of determining what 
price we are willing to pay and, of particular impor- 
tance, how these costs should be distributed. 

Important as our current problems are, however, 
our major problems lie in the future. As our concepts 
of the quality of life continue to evolve, technological 
innovation will continue to be the principal tool for 
providing the material abundance necessary to im- 
plement changes in that quality. In the past this tech- 
nological innovation in our society has been guided 
most effectively by economic imperatives associated 
with short-range economic rewards for innovators 
which were granted by a relatively free and individ- 
ualistic market. Such imperatives will no longer serve. 

Today there are new and crucial questions: 

Will small modifications in our present guides be 
adequate to encourage technological innovation in 
the directions that we wish for the future? 

If not, what new kinds of guides will be required? 

How will these new guides be developed? 

And how will the new guides interact with the 
established ecology of technological innovation? 

To a large degree these questions place the prover- 
bial cart before the horse. One cannot intelligently 
devise guides until one has determined goals. 

We must first derive a consensus position on 
priorities. When that is accomplished, we must de- 
velop guides to lead technology toward these priori- 
ties in a thoughtful way. Guided by wise men, tech- 
nological innovation will continue achieving a social 
milieu of increasing material abundance and ex- 
panded individual freedom and choice. Q 



29 



Bell 
Reports 



Hideaways Doomed to Extinction 

Looking for some out-of-the-way spot 
where you can be incommunicado? 
Don't make it the Admiralty islands, 
Nauru or Bougainville, nor the Ellice 
Islands, Saipan, the Gilbert Islands, 
New Ireland or the Chatham Islands. 

These places are among many re- 
mote locations which are now part of 
the Bell System overseas communica- 
tions network. Nearly a dozen such 
hideaways were added in 1969. 

Nauru (pop. 6,000), for instance, is 
one of the most recent to join the net- 
work. One of the world's smallest na- 
tions, Nauru is 1,300 miles northeast 
of Australia and about 30 miles south 
of the equator. Your mother-in-law 
can reach you there for a day rate of 
$12 for the initial three minutes. 

In 1927, overseas communications 
consisted of a single circuit between 
New York City and London. Today 
more than 200 countries and territo- 
ries are within reach of 97 per cent of 
the world's telephones. 



Air Flow System Aids Patients 

A highly effective weapon in the bat- 
tle against leukemia may result from 
a special air flow system devised for 
industry by the Sandia Corporation, a 
subsidiary of Western Electric. 

Medical personnel at the University 
of Texas' M.D. Anderson Hospital and 
Tumor Institute in Houston are using 
two "laminar flow cleanrooms" to pro- 
vide an environment to guard leukemia 
patients against infection. 

Laminar flow is an air system used 
in industry to keep tiny components 
free from contamination. At Anderson 
Hospital laminar flowcleanroomshave 
a wall of high-efficiency filters at the 
head of each bed. Air coming through 
the filters is distributed in parallel lines 



of flow across the room and then 
moved up to the ceiling and passed 
through return air ducts so the pro- 
cedure can be repeated. Movement of 
air is barely perceptible. 

Contamination-free environment is 
critical because two-thirds of all leu- 
kemia deaths are caused by infection 
rather than by the spread of the dis- 
ease itself. In 29 clinical trials con- 
ducted at the hospital, 86 per cent of 
the acute leukemia patients treated in 
the cleanrooms survived, compared to 
50 per cent in the non-protective units. 

A hospital in Albuquerque, New 
Mexico, has applied laminar flow prin- 
ciples in surgery. Hospitals in Seattle, 
Wash.; Ann Arbor, Mich.; Bethesda, 
Md.; and the Bronx, N.Y., are also ap- 
plying the technique to some aspect 
of their operations. 



Research Grants Continued 

AT&T will continue to offer post- 
doctoral research grants in public util- 
ity economics, reserving neither own- 
ership nor publication rights to the 
independent research which is sup- 
ported by the grants. 

The grant program, begun last year, 
is intended to encourage the develop- 
ment of a broader and deeper body 
of knowledge in the subject. 

Grantees are chosen on the scholar- 
ly merit of their research proposals by 
an academic review board comprised 
of three distinguished economists: 
William J. Baumol, of Princeton; Otto 
Eckstein, of Harvard; and Alfred E. 
Kahn, of Cornell. 



Solid-State Lamps to Glow 
In Telephones of the Future 

Synthetically-grown gallium phos- 
phide crystal lamps that can emit light 




"When you hear the tone . . . ."is a familiar 
phrase heard by millions of people in areas 
served by Bell System telephone compa- 
nies. That time is kept correct by the Crystal 
Clock at the Bell Labs facility in Murray 
Hill , N.j. A system of four crystal oscilla- 
tors ensures that the time is accurate to 
one billionth of a second, or to within one 
second every three years. And even the 
Crystal Clock is monitored 24 hours a day 
against the cesium beam clock at the 
National Bureau of Standards in Washing- 
ton, D.C., vv/i/ch is accurate to one hun- 
dred billionth of a second. 

continuously for about 10 years are 
being developed at Bell Telephone 
Laboratories for use as indicator lights 
in future telephones and switchboards. 

Gallium phosphide is a transparent 
solid material that resembles amber. 
A suitably prepared crystal of it— no 
larger than the head of a pin— will give 
off red or green light with almost no 
heat when a small electric current is 
passed through it. 

The new lamps are expected to be 
much more reliable, efficient and eco- 
nomical than the incandescent lamps 
now used which require higher power 
and have a much shorter life— 10,000 
hours compared to 100,000 hours of 
continuous use. 



"Continuing Education" Attracts 3,500 

Almost half of Bell Telephone Labora- 
tories professional and technical staff 
—about 3,500 scientists and engineers 
—are taking part in a "back-to-school" 
program— without leaving their jobs. 



30 



Students from 11 different Bell Labs 
locations are enrolled in "Continuing 
Education Program" courses offered 
by Bell Labs during normal working 
hours to encourage its professionals 
to keep pace with rapid technological 
advances. The new program makes it 
possible for scientists and engineers 
to continue their technical education, 
on a strictly voluntary basis, through- 
out their careers. The program is of- 
fered by Bell Labs in addition to its 
financial support of university study 
by employees. 

"Continuing Education" is one of 
the nation's largest graduate programs 
in engineering and the physical sci- 
ences. Most of the courses are being 
taught by Bell Labs specialists, but pro- 
fessors from nearby universities also 
teach a few of them. 

About 100 different courses are of- 
fered in six major disciplines. The 
fields of study are materials and de- 



This young lady is focusing on the future 
a two-inch pipe, no wider than a telescope, 
that will some day carry a quarter million 
telephone conversations. She is reflected in 
the mirrored outer wall of Bell Telephone 
Laboratories at Holmdel, N.]., where much 
work on the system— known as waveguide 
-is done. The copper-lined steel pipe, 
when buried underground, will guide high 
frequency radio waves carrying voice, data, 
TV and Picturephone'^ signals. A field trial 
is scheduled in New jersey in 1974. 




vices, systems engineering and mathe- 
matics, computer science, physical 
design, switching and transmission. 



Are the Days of the Meter Man 
Numbered? 

Some time in the future it is possible 
that your electric, water and gas 
meters will be read automatically 
through your telephone without ring- 
ing your phone or tying up your line. 

A trial to determine the feasibility 
of such a system is now being con- 
ducted by Bell Telephone Laboratories 
involving some 150 homes in Holm- 
del, N.J., being served by New Jersey 
Bell. Participating are a water com- 
pany, a power company and a gas 
company— all using meters and data- 
encoding equipment which they have 
chosen themselves. 

The system will allow the utility 
companies to gather electrically en- 
coded information from meters in sub- 
scribers' homes and transmit it through 
telephone lines to their data collection 
centers, where it will be put into com- 
puters for record and billing purposes. 
The entire process will take only a 
few seconds. 

The Holmdel Laboratory of Bell Labs 
devised some of the special experi- 
mental equipment being used in the 
trial. Other utilities and Bell Tele- 
phone companies will take part in 
trials later in the year in other parts of 
the country. AT&T is coordinating the 
trials and studying the economic fac- 
tors involved. 



"Strong Box" Phone Foils Thieves 

The Bell System's effort to reduce coin 
telephone larcenies continues to show 
encouraging results. 

Recent figures indicate that in 1969 



there were 22,810 larcenies as op- 
posed to 33,530 in 1968 and 47,090 in 
1967. Cash loss and plant damage re- 
sulting from larcenies were halved from 
the high of more than $1 million in 
the first quarter of 1968. 

Bell System security people attrib- 
ute the decrease in larcenies to the 
growing use of the new "strong box" 
coin telephone and the new coin box 
lock designed for it. The lock can also 
be installed on older model phones. 
Both were developed at Bell Tele- 
phone Laboratories. 

At the end of 1969, Western Elec- 
tric had shipped 800,000 new locks 
and 300,000 "strong box" coin tele- 
phones to Bell Telephone companies. 



Datrex Links Teletype to Computer 

The Bell System has developed and is 
offering a new data communications 
service which allows lower-cost and 
more efficient access to time-sharing 
computers for large numbers of tele- 
typewriters. 

Called Datrex, the new service elim- 
inates the need for direct linkage be- 
tween the teletypewriter terminal and 
the computer, which is uneconomical 
when the teletypewriter is not in 
steady use. Instead, up to 128 teletype- 
writers located within a three-mile ra- 
dius can be connected to a concen- 
trator, which can be tied to the com- 
puter by up to 32 trunk lines. 

Datrex automatically lets the tele- 
typewriter wait for the first available 
opening in the event that all main 
lines into the computer are in use. 

The new service should make it 
economically possible for greater use 
of time-shared computers by, for ex- 
ample, various departments in sepa- 
rate buildings on a university campus, 
an industrial complex, or various busi- 
nesses in a large office building. D 



31 



Business Service 
and Society 

Excerpts from recent talks by Bell System officers 



"I know you hear it said by some these 
days that some telephone people 
don't care much about service any 
more, and that indeed there is even 
a lack of simple courtesy on the part 
of some telephone people who relate 
to the public. 

"You also hear it said that some of 
our people are not as confident as 
they used to be and have deep reser- 
vations about the future because con- 
ditions, methods and philosophies are 
changing so swiftly and dramatically 
in our industry. 

"I can't deny that some of these 
reports are true, but I do believe that 
such examples are very much the ex- 
ception rather than the rule. I think 
the important thing is that the great 
majority of Bell System people are 
committed to giving our customers a 
full measure of service, and are con- 
fident their business is best equipped 
to do the job. 

"As I see it, our biggest challenge 
in the Seventies will be to attract, train, 
develop and keep people who are mo- 
tivated and dedicated to our service 
ideals." 

". . . we face a far different chal- 
lenge today in managing young peo- 
ple—inside and outside management— 
than we did 10 years ago. People to- 
day—or at least a great number of them 
—simply have a different perception of 
society and its institutions and disci- 
plines than they did before." 

"The people we serve are changing, 
too. They are better educated, more 
affluent, more sophisticated and more 
demanding. Over the years they have 
learned— and we have taught them— to 
expect nothing but the best from the 
Bell System. And anything short of 
that is bound to disappoint them." 

Angus 5. Alston, 

President— Southwestern Bell 

(From a talk given while he was 

Executive Vice President-AT&T) 



32 



"Certainly we can applaud the ideals 
of our youth. But at the same time we 
must explain the economic facts of 
life— something we apparently have 
not done very well. For too long, busi- 
nessmen—preoccupied with their own 
affairs— have permitted the gap separ- 
ating business and education to 
widen." 

". . . business must do a better job of 
informing the public about the work- 
ings of the free enterprise system. 
However, the kind of widely shared 
public confidence so necessary in our 
system is not won just by words. More 
fundamentally, it is earned through 
our performance." 

"We know that the system in this 
country was designed to give business 
an unusual degree of freedom— and, 
with that freedom comes an unusual 
degree of responsibility— a responsibil- 
ity not only to turn out the goods and 
services which are the outward sym- 
bols of our progress, but a responsi- 
bility to work to achieve the less tangi- 
ble advances which add to creating a 
better way of life for our people." 

Jerome W. Hull, 
President— Pacific Tel & Tel 



@ 



". . . is there discrimination in busi- 
ness? Yes! Against women? Yes! 
Against Blacks? Yes! Against the young, 
the old? Yes! Against many ethnic 
and religious groups? Yes! It's not the 
illegal kind of discrimination. It's not 
intentional. It grows out of ignorance 
and uncertainty. 

"I'm sure we can discover enough 
reasons to explain why we have prej- 
udices. But if we just admit it and let 
it go at that, we've only done half the 
job .... 

"We all agree discrimination is 



wrong. And we . . . have sent this 
word down the line. Well, it's going 
to take more than good intentions. It 
means listening, looking and acting: 
listening to employees who may be 
legitimate victims of discrimination in- 
tentional or otherwise; looking within 
our . . . companies to actively encour- 
age the hiring and promoting of indi- 
viduals without regard to their race, 
religion or sex; acting to discover the 
little closets of hidden prejudice and 
airing them out. 

". . . it means getting the word down 
to everyone, most of all to the super- 
visor or personnel interviewer who 
says, 'Don't worry about me. I don't 
discriminate. 1 have no prejudices 
whatsoever.'" 

lack B. Gable, 
Vice President— Illinois Bell 



@ 



"Perhaps instead of worrying about 
how to suppress the youth revolution, 
we should be worrying about how to 
sustain it. And I am not talking here 
about those few who practice violence 
and destruction. 5(r/ct enforcement of 
the law is the only answer there. But 
the concerned, dissatisfied young, ach- 
ing for some relevance, searching for 
answers, can perform a service by 
shaking us out of our complacency. 
I'd like to have more of them in my I 
business. We need more of them in 
our society. 

"I think we can get more of these 
kinds of young people to work with 
us, constructively, if we can convince 
them that we are as concerned about 
our social problems as they are." 

lohn D. deButts, 
Vice Chairman of the Board— AT&T 



>ntinued from page 1) 

rvn house because careless kids 
;re apparently wrapping bombs is 
sconcerting, too. 

nerica Is No Algiers 

jspite the convictions of so many 
ungsters, few leaders of American 
siness share the political and 
ilosophlcal stance of your everyday 
ird Reich SS career colonel. 
iwever, even the sympathetic 
jsinessman-father who has thought 
ough the pot issue, for example, 
p decided that pot should be 
alized because it is less lethal 
n gin, is not going to lend his 
npassion, talent, money and vote 
\ movement in which bombs 
iplant debate, legislation and 
onal physical demonstration. It is 
; that bombs finally made their 
ody point for the Algerians against 
French, and that some young 
erican "revolutionists" consider 
impressive film, "The Battle of 
iers," their training manual. But 
erica is no Algiers. The people 
' 1 jobs in business, government, 
I cation and law enforcement here 
t not an uninvited minority con- 
: ium from another nation imposing 
"(nselves upon the majority of 
.ves. 

pe irrational, l-hate-you-more- 
i|i-you-hate-me approach to making 
-erica more loving cannot work, 
rror by whites or blacks, young- 
:if or octogenarians, gets much 
1 eof a grip than it now has on our 
SDnal neck, those perpetrating 
1 error will find the supportive 
I ons who lend their clout to causes 
I Jiet ways (and they are not 
i matically the same "Silent 
'')rity" of media fame) erasing 
• names from the list of faithful. 
> hey have not been brought up 
1 ombs, and they don't want their 
1 Iren to be. They have been willing 
ange, and to help initiate change, 



but they won't budge an inch for a 
fire bomb. 

Both Good and Bad 

This country, of course, is not as 
terrible as the noisiest Weathermen 
and Black Panthers say it is. Nor is this 
country as nifty as many self-satisfied 
businessmen, politicians, generals 
and admirals maintain. This country 
is judged largely from each individ- 
ual's own perspective, and so this 
country is both good and bad. As Louis 
Banks of Fortune magazine surmised, 
one's age has a lot to do with the 
viewpoint. 

Discussing the disparate views of 
youth and their parents toward 
Our Way Of Life, he wrote: "We saw 
the successful competitors, and 
gloried in the fact that opportunity 
was never so widespread nor reward 
so swift; they saw the fathers who 
came home, dejected, disillusioned, 
distracted, and— in most cases— devoid 
of any spiritual resources. We saw 
the triumph of technology in jet flight, 
convenience foods and the moon 
shot; they saw its degradation and 
defeat— sometimes firsthand— in a far 
country called Vietnam. We saw the 
gross national product; they saw the 
gross national by-product— of mindless 
urbanization, environmental pollu- 
tion and the whole wasteland of 
public dereliction." 

Work Out the Future 

Mr. Banks invited youth to come and 
help its elders find new values to 
replace the historic national obsession 
with a bigger CNP and damn 
the consequences. Said he, "In our 
search for reconciliation we can 
at least start with the fact that the 
business system is a formula for 
combining brains and machines to 
yield more goods for less work, and 
this is hardly an ignoble goal. In a 
collective sense, it offers up 
abundant resources that can be used 




as amelioratively and adventurously 
as youthful hands would use them." 

Mr. Banks is right. The people in 
charge of things and those who aren't 
must harmonize their goals and work 
out the future together. To do that, 
the kids— not just the ambitious 
B-school students and the solid 
fraternity men but the others, the 
forerunners who are often more 
critical and more original— must know 
that business leaders also seek to 
restore quality to life. Concurrently, 
those of us in business must not shun 
a thoughtful youngster just because 
his pants happen to be shaped like 
Popeye's. 

We grew up on Popeye movies and 
know for a fact that with a can of 
spinach at just the right time, Popeye 
could become a powerful force for 
good. So can angry kids and angry 
blacks. The 1970s would appear to be 
just the right time. But the spinach 
with which to help fashion a finer life 
is not in bottles, bricks and bombs. 
It is, among other places, in business. 
It is in abundance in this Bell System. 
It is in reasonable men. D 



©AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

Washington, D.C. 
Permit No. 43083 



Moving? Changes of address for persons on 
the Bell Telephone Magazine complimentary 
list should be brought to the attention of the 
Circulation Manager, Bell Telephone Magazine, 
Room 826, American Telephone & Telegraph 
Company, 195 Broadway, New York, N.Y. 10007. 
Please include the mailing label from this issue. 



001600605681 91??13159999 
LIBRARIAN PERIDOICAL DEPT 
KANSAS CITY PUB LIBRARY 



KANSAS CITY 



MO 



64106 




July/August 1970 



Engineers yesterday, 
artists today, 
creators always: 
innovation abides 
at West Street. 



BELL 

telephone magazine 




Can a Company 
Magazine be Both 
Right and Read? 

"Blessed be tellers— ihey are the moni- 
tors, they are also the comforters, and 
they are the only true heart-talkers." 
—D. G. Mitchell • Reveries of a 
Bachelor -1850 

We have never solicited letters from 
the nearly 100,000 Bell System and 
non-Bell "opinion leaders" who re- 
ceive this magazine. Yet we are grate- 
ful, after each issue, to receive a 
thoughtful cross section of comments 
from readers. We hear from students 
and senators, corporate presidents and 
private citizens, judges and journalists, 
bankers, lawyers, educators and a lot 
of people who work for this big busi- 
ness in every part of the land. We hear 
mostly cheers and some jeers and we 
welcome both with, well, almost equal 
graciousness. We do not pretend to 
gauge the total success or failure of 
this journal by the number or content 
of such communications. But letters 
do help us feel the public pulse. And 
letters do help maintain a healthy staff 
morale. And those things probably 
help us do a belter job. 

A quick glance over our shoulder at 
the last year's output shows that cer- 
tain stories have inspired a dispropor- 
tionate amount of reader reaction. 
Two that did were Edward deBono's 
piece on lateral thinking, and Norman 
Cousins's ideas about the need for 
more rationality and less bombs among 
men, in the July/August 1969 issue. 

The two-part report by Daniel 
Yankelovich about youth and business 
in the September/ October and No- 
vember/December issues drew a rec- 
ord number of reprint requests and 
many comments on the articles them- 
selves. Two other pieces in the latter 




issue also stimulated letters— the one 
on consumerism by the Nixon Admin- 
istration's Virginia Knauer, and the 
piece about moving employees from 
the city to the country by AT&T's Don 
Woodford. The story on Colorado's 
Outward Bound School in the January/ 
February 1970 issue is another that 
attracted several letters, most of them 
wanting more data on the program. 
We put them in touch. 

Passionate and Partisan 

The comments on 
con tempo ra ry 
America by Miss 
Rita Fuhr of San 
Francisco State 
College and film 
maker Saul David 
brought a greater 
number of pas- 
sionate, partisan ^ 
letters than any 
article in the last year. Here are some 
typical positive reactions: 

"... I would like to read it [the 
David article] or distribute it to an 
audience of thousands. It says so much 
in a beautiful style that it deserves the 
widest possible distribution."— from a 
corporation head in Ohio. 

". . . thanks for giving her wider 
voice . . . read alongside this morning's 
story of Kent State University, Miss 
Fuhr's plea rings terribly loud and 
clear. . . ."—from a newspaper editor in 
Connecticut. 

"Is it possible to obtain reprints of 
these two articles?"- from (he librarian 
at Kent State University. 

Where Do You Get 
Those Writers? 

Not all reactions were positive: ". . . his 
glib and flippant writing has earned a 
few tears from me . . . when one is in- 
volved politically with all the honest 
dedication that one can lay claim to. 



this kindof commentary brings notl 
but helpless sadness."— from a col 
student in New York City. 

"... I do not know where you 
those writers and 1 do not remen 
everything being so dumb wh( 
worked for the telephone comp 
. . ."—from a housewife in Califoi 

Readers aren't the only ones ' 
sometimes disagree with BTM's 
thors. As often as not the editors, 
differ with the ideas of the author: 
select. Nor do the opinions expre 
in BTM articles always jibe with tl 
of the top managers of this busii 
or of its board of directors. Sub 
and writers are picked by the edi 
because of their pertinence to I' 
phenomenal business and to thes' 
credible times, not because somtj 
up there says, "Go write somelj 
complimentary about the compj 
That would be neither right nor 

To the contrary, the men who 
this business permit the editors ar 
usual degree of autonomy. Wil 
of course, comes a satisfying sha 
responsibility— the freedom to b 
fective and the freedom to fail, 
result, the magazine is what it is 
think it's right. We know it's reat 

A Rationale for Readers { 

Every now and then someone 
dares his dismay not just with o 
our authors but with the editori 
with the Bell System for publi 
a particular piece. In such case 
reader usually feels the philoso 
espoused are inconsistent with 
business policies. We have a rati 
for such critics. It is that our pu 
is not to direct thinking but to 5 
late it on issues of concern to th' 
poration and to the individuals 

We try to show that this busir s 
a contemporary organization, on h 
is innovative in spirit and actioi W 
try to portray this business as a lA 



:ommunications service, science, 
art of management and in meeting 
increasingly complex needs of so- 
f. We try to further the manage- 
it objectives of this business by 
ecting its character and its integ- 
,to influential people. And we try 
eflect the best interests of this 
ness in a readable, credible way. 

se Things Are Here 

" may not be the best word, for 
task is not as difficult as might be 
•ined. Unlike some less fortunate 
ilic relations practitioners, our 
ge is not to make silk purses from 
'f' ears. There is a great deal here 
which to work, many resources 
) which to draw, countless accom- 
ments in which to share. Unless 
i|s simply convinced that corpora- 
) are bad, that they are in fact the 
^odiment of all the evil awash to- 
;' n American life (such sentiments 
Eiot unknown among BTM's cam- 
I readers), one needn't search far 
rcharacter, integrity, innovation, 
ii tific progress and concern for 
f's. Those things are here. They 
e ere in this business and they are 
:i we hope, in these pages, 
^lether we succeed in reflecting 
e)est interests of this business to 
iiudience is hard to measure. But 
!r again, we receive enough letters 
JDlimenting the business, as well as 
enagazine, to make us feel the 
f( is worthwhile. The following 
c t comments are representative: 

. the provocative nature of the 
a:zine is certainly a tribute to the 
ir\:rd thinking of your corporation." 
'm a professor in Connecticut. 
" . it is refreshing to see the mod- 
■n inkingof your company reflected 
1 1 II Telephone Magazine."— from a 
3v^ ^aper editor in Florida. 

. a company which approaches 
or, lued on inside bac/c cover.) 



BELL 

telephone magazine 



VOLUME 49 NUMBER 4 



JULY/AUGUST 1970 



Parnassus on the Hudson 2 

by Don Woodford 

The historic first home of Bell Telephone Laboratories, site of 

scientific inventions spanning recordings to radar, starts an appropriately 

innovative new life as home and workshop for artists. 

Who Speaks for the Silent Majority? 10 

by Herbert G. Klein 

"Action need not be violent to be interesting," and more journalists 
should know it, according to President Nixon's old friend and 
advisor who is now Director of Communications at the White House. 

To Communicate Is the Beginning 14 

by H. I. Romnes 

A different kind of commencement address. 

Understanding the Gap Makers 20 

by Donald H. Van Lenten 

Gaps abound, but gaps are only differences escalated beyond reason. 
If people want to bridge them, they can be bridged. 

Business Service and Society 25 

Excerpts from talks by Bell System officers. 

How the Cities Solved Their Transportation 

Problems— A Fable 26 

by Wilfred Owen 

Urbanites rescue themselves from the edge of disaster in the nick 

of time then laugh at how stupid they've been. But not everyone laughs. 

Let's See Now 30 

A photo feature of people making Picturephones® at the 
Western Electric Company's Indianapolis Works. 

Bell Reports 32 

A summary of significant developments in communications. 



H. I. Romnes, Chairman of the Board 
and President 

John D. deButts, Vice Chairman 

Robert W. Ehriich, Secretary 

John J. Scanlon, Treasurer 



Tim Harriman Henney, Editor 
A! Cataiano, Art Director 
Robert A. Feinstein, Assistant Editor 
Donald K. Smith, Assistant Editor 



@ 



Pubhshed by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212-393-8255 




Parnassus 
on the 
Hudson 



by 

Don Woodford 



An old building in New York, fountain- 
head of invention as Bell Laboratories' 
first home, continues its creative life 
as an experiment in housing for artists. 



One rainy Tuesday afternoon last spring, an old 
building on Manhattan's lower west side began a 
new life, in a city where the razing of almost any- 
thing over 50 years old sustains a daily cacophony 
of demolition, this renaissance of a structure whose 
foundations were sunk in 1896 is itself remarkable. 

The nature of the rebirth is even more remarkable, 
and was signified appropriately by a rechristening. 
New York's Mayor John V. Lindsay, sheltered from 
the gray drizzle beneath an orange-and-white-striped 
canopy, delivered brief remarks which formally dedi- 
cated Westbeth. His dedication officially identified 
Westbeth as the first FHA-sponsored artists' housing 
facility in this country and the largest of its kind in the 
world. One of the speakers on the program referred 

Mr. Woodford, formerly managing editor of BTM, has had a long- 
standing interest in science generally, and particularly in the work 
and history of Bell Telephone Laboratories. He is the editor of a 
new publication, The Bell System and the Environment. 




w 




^^0^ 

A 



i»i 




to it as "this great peculiar lump of a building." One 
other speaker vouchsafed a nod to its original identity 
as the home of Bell Telephone Laboratories. 

Westbeth was conceived because the lot of the 
artist in New York, as in most other cities, is a hard 
one. Many practitioners of the graphic arts — painters, 
photographers, film makers — as well as sculptors and 
dancers, need the kind of working space best pro- 
vided by large loft-studios. Such airy, high-ceilinged 
rooms, preferably including living quarters, are either 
outlawed by most city occupancy codes or are be- 
yond the reach of the average middle-income artist. 

The dilemma of this creative segment of society 
has not escaped the notice of the National Council 
on the Arts. About three years ago, when availability 
of the old building complex at 463 West Street was 
announced, the Council and the J. M. Kaplan Fund 
joined in contributing $750,000 each as seed money 
to prime the financial pump. In July 1967, the Bell 
Laboratories building was bought for $2.5 million, 
and in September the nonprofit Westbeth Corpora- 
tion was created to remodel and operate it. L. Dixon 
Bain Jr., formerly of Western Electric's and AT&T's 
Public Relations departments, was appointed admin- 
istrative officer; and young, talented. New York archi- 
tect Richard Meier, was commissioned to convert 
now-empty laboratories and offices into studios. The 
balance of the total of $13 million of financing for 
purchase and renovation came from the FHA. 

Cut and stretch 

The project was completed in an astonishing and 
hectic two years, during which much red tape was 
cut and some rules were stretched. The cutting and 
stretching boiled down to a balancing act between 
the minimum size for dwelling units specified by the 
FHA and the minimum space needed by the artists 
for whom the idea of Westbeth was conceived. A 
working compromise finally produced 383 living- 
studio units ranging in size from about 600 square 
feet to over 1,300, and in rent from $110 for single 
occupancy to $190 for those with children. 



And there are lots of children. On dedication day 
what seemed hundreds of them, all apparently of 
about the same size, swarmed among the adult resi- 
dents and guests, happily ignoring the ceremonies 
and protected from the weather only by clutches of 
brightly colored balloons labeled "Westbeth." 

Old beginnings for a new age 

children being much alike, those who ran through 
the corridors and rooms of 463 West Street one De- 
cember night in 1966 paid little more attention to the 
grown-up goings-on than did their counterparts in 
today's artists' colony at Westbeth. The occasion, 
however, was quite different, for on that night more 
than 900 people came to bid their private and collec- 
tive farewells to a building where many had spent 
their Bell System careers. When James B. Fisk, presi- 
dent of Bell Telephone Laboratories, spoke to them 
he remarked, "Many of you here this evening remem- 
ber Bell Laboratories from the day it was founded. 
A few of you, as youngsters, saw them driving the 
piles that have held the building up for 70 years and 
will continue as the foundation for whatever enter- 
prise takes it over." 

Actually, the first home of Bell Laboratories could 
just as well have been called Westbeth 75 years ago, 
when Western Electric spent $119,000 to buy land for 
its manufacturing shop occupying part of the block 
bounded by West, Bethune — hence the new name — 
Washington and Bank Streets, a section of New York 
later described by an historian as "part of the tattered 
fringe of old Greenwich Village." After existing build- 
ings were razed, wooden pilings were sunk into what 
a couple of centuries earlier had been Hudson River 
mud at the edge of green farmland. By April of 1897, 
steel framework was rising for the first two main sec- 
tions of Western's 13-story plant; by June the girders 
were sheathed in buff-colored brick. Terra-cotta trim 
outside and maple flooring inside gradually com- 
pleted what then was considered the best standard 
factory construction. 

Although there was nothing novel about the build- 




ing itself to give any hint of the startling things that 
were to come from it, prophetically it was first occu- 
pied at the beginning of a new age. The plant at 463 
West Street, which eventually produced inventions 
that changed the world, was opened only eight years 
after Edison invented the incandescent light, and only 
five years after New York City's first central power 
station started supplying electricity commercially. 
Electric power, in fact, was scarcely out of its experi- 
mental womb when machines began turning at 463. 
While cable, switchboards and other telephone 
paraphernalia were manufactured there for years. 
Western Electric's engineering department — at the 
same time and in the same building — was soon func- 
tioning as inventor and developer. With the telephone 
long out of the laboratory and on the way to becom- 
ing a national necessity, that research and develop- 
ment function garnered momentum from the needs 
of a growing communications system. 

Radio, records and radar 

And, directly because of those needs, new things 
started happening — things which brought fledgling 
scientific disciplines out of the laboratory and put 
them to work for the common man. In the early 1900's 
the long distance telephone had gone about as far as 
it could with the techniques engineers then had for 
amplifying the human voice. In 1906, Lee De Forest, 
an independent experimenter, produced the world's 
first electron tube, called the audion, acclaimed the 
most important invention of the first quarter of this 
century. While the audion was excellent as a detector 
of radio signals, in its original form it could not be 
used as a power amplifier. But Harold Arnold, then 
Western's director of research, saw its possibilities. 
Working from basic research done by university sci- 
entists on electrons and their movements, he de- 
signed and fashioned the first high-vacuum tube at 
463 West Street in 1912. Arnold's invention provided 
the stability and control needed for an amplifier, and 
enabled the telephone to cross the continent in 1915. 

Just a year later, at the building on West Street, 



Edward Wente demonstrated his condenser micro- 
phone, which became the "mike" of early radio, and, 
with the vacuum tube amplifier, helped produce 
electrically cut recordings and eventually sound mo- 
tion pictures. In 1919, Lloyd Espenschied, working at 
463 on a radio altimeter for airplanes, developed the 
principle of what later became known as radar. 

The silver screen gets its voice 

inventions are frequently piggyback phenomena, 
with one new achievement riding on the shoulders 
of one or more predecessors. During the 1920's at 
463 West Street, Henry C. Harrison, using the con- 
denser mike and vacuum tube amplifier, designed 
an electromechanical recorder for cutting masters 
from which records could later be pressed. Those 
records for the first time carried all the important 
components of the music; but they could not be 
properly reproduced until Harrison developed his 
acoustic phonograph. Then, the critical auditors at 
Bell Laboratories heard reproductions "which ap- 
proached the original rendition in quality." The 
"Orthophonic Phonograph" was announced publicly 
in October 1925, by the Victor Talking Machine 
Company, which had been licensed under Western 
Electric patents to make it. 

Meanwhile, this new means of recording sound 
was spawning another whole new industry. For more 
than 10 years, at 463 West Street, Western's engi- 
neers had been working to realize a dream as old as 
Edison's invention of the motion picture: sound mov- 
ies. They gradually defeated formidable technical 
demons in recording sound that was synchronized 
with action as it was photographed, and, in the spring 
of 1923, Western Electric's first real "talkies" were 
made at 463. Before long, Hollywood executives and 
financial men arrived to view those experimental 
short subjects in an improvised projection room. 
Among them was Sam Warner, one of four Warner 
brothers, who immediately recognized that the turn- 
ing point in the movie industry had come. He wired 
brother Harry: "Go to the Western Electric Company 



and see what I consider the greatest thing in the 
world." Harry came, saw, and agreed. So did a few 
stars of the still-silent screen, who suddenly started to 
worry more about their voices than their profiles. 

Western Electric's engineers at 463 West Street, 
fully as aware as were the Warners of the talkies' 
commercial possibilities, had licensed one Walter J. 
Rich of New York to form a company to exploit sound 
films. Warner Brothers soon joined Rich to found 
the Vitaphone Corporation, which, by the summer of 
1925, had elaborate plans for a complete program of 
sound pictures for the opening of the new Warner 
Theater on Broadway. Heading the bill was John 
Barrymore, playing the title role in "Don Juan." The 
doors opened for the premiere on August 6, 1926— 
and the silent movie became obsolete overnight. 

"You ain't heard nothin' yet!" 

The rest of Hollywood's movie industry did not 
capitulate quite so quickly. In October 1927, Al Jol- 
son secured a unique niche in acting archives as he 
sang and talked in Warner Brothers' "The jazz Singer." 
Then, as one contemporary critic remarked, the lid 
was off. Although the film wasn't 100 per cent "talkie," 
it revealed once and for all the shape of a new enter- 
tainment medium and sounded the first notes of the 
death knell of vaudeville, the movie orchestra, thea- 
ter organ and the lone piano player in the pit. Movie 
producers and theater owners alike scrambled fran- 
tically to escape from the trap of silent obsolescence, 
with the result that Western formed a subsidiary. 
Electrical Research Products Incorporated — ERPI — 
to engineer and handle all studio and theater instal- 
lations. For many years, thousands of films carried 
the line "Western Electric Microphonic Recording" 
among their title credits. And it all came out of Room 
1109 at 463 West Street. 

While this furor was in the making. Western Elec- 
tric's research laboratories and part of AT&T's engi- 
neering department had been consolidated on the 
first day of 1925 to form Bell Telephone Laboratories, 
Inc. With the creation of a formal research and devel- 



I 




opment entity for the Bell System, the stream of inno- 
vation flowing from 463 quickened. In 1927, a few 
months before Al Jolson shouted an unrehearsed but 
prophetic line from the screen, "You ain't heard 
nothin' yet!" the public saw the first demonstration 
of television by wire from Washington, D.C., to Bell 
Labs on West Street when Herbert Hoover, then Sec- 
retary of Commerce, talked with AT&T president, Wal- 
ter Gifford. And, in that same year, shortly before 
Charles Lindbergh piloted the Spirit of St. Louis from 
New York to Paris and flew into history as the Lone 
Eagle, another kind of world-shrinking process began 
when radiotelephone service developed at 463 West 
Street first spanned the Atlantic from New York to 
London on a regular commercial basis. 

Many of the people who worked at 463 spanned the 
Hudson River via ferryboat from New Jersey on a reg- 
ular daily basis. One of these, a young man named 
Harold S. Black, for years had pondered a problem: 
how to rid amplifiers of distortion which accumulates 



as telephone lines lengthen over long distances. One 
morning in the late 1920's, while enjoying the river 
breeze on his way to work, he suddenly saw the 
answer in one of those flashes of clarity that some- 
times reward men who labor entirely with their minds. 
Sketching rapidly on a page of his morning paper ac- 
cidentally left blank by the press, he roughed in the 
principle known as negative feedback. This may sound 
an esoteric concept to the average nontechnical cit- 
izen, who doesn't know — and doesn't need to know 
— that Harold Black's invention helped make possible 
the high-fidelity music any citizen can now hear in 
his own living room. It has also become indispensable 
in today's proliferation of automation and in the con- 
trol of guided missiles and space vehicles. 

About a year after Harold Black's epochal ferryboat 
ride, old rooms in 463 were echoing to the new sound 
of something called "hill-and-dale" recording. Sci- 
entists were experimenting with grooves cut vertically 
in the record, rather than laterally. From these they 



obtained better fidelity to the original sound than 
was possible from the best of existing records. Hili- 
and-dale discs turned at a slower speed, and this, 
coupled with narrower grooves, meant a longer play- 
ing time. There was also less surface noise — that 
plague of the old lacquer records — because Bell Labs 
was using a new nonabrasive material called cellulose 
acetate, a kind of plastic. The terms LP and hi-fi and 
stereo and vinyl hadn't yet entered our mundane 
vocabulary, but the basic work that finally led to 
modern long-playing high-fidelity records was being 
done then and there. The Bell Labs men at 463 even 
discussed the advantages of an elliptical stylus about 
40 years before that elegant little device appeared on 
the market as the preferred means of playing stereo 
records— which, incidentally, combine vertical and 
lateral tracks in the same record groove. 

Fiddles on the left, drums on the right 

Sound has always been at the core of the Labora- 
tories' mission, and it was simply logical that its con- 
tinuing experiments in recorded music should evoke 
the fervent participation of the practicing musical 
community. During the early 1930's, Leopold Stokow- 
ski — whom one Bell Labs man then described as 
"half musician and half engineer" — often came to 
463 to work with Labs engineers on recordings of his 
Philadelphia Orchestra. Violinist Jascha Heifetz, too, 
came to record and listen, and said that for the first 
time he heard himself as his audience heard him, in- 
cluding "squeaks and scratches I never knew I made!" 

Musicians and engineers alike were well aware, 
although for somewhat different reasons, that most 
people have two ears and, therefore, that sound re- 
corded through one microphone and played back 
through one loudspeaker lacked the illusion of com- 
plete reality. In 1934, about 25 years before "stereo" 
became a commercial shibboleth. Bell Labs men at 
West Street perfected a stereophonic transmission 
system employing three channels which bestowed 
the missing dimension on recorded music with what 
one listener said was magical effect. 



Another kind of magic was performed during the 
middle 1930's when the Laboratories first demon- 
strated color television at 463 West Street. And, at 
about the same time, the ancestor of the nine o'clock 
movie, the Late Show and Late-Late Show made its 
debut at 463 when films were first televised. 

Experiment without end 

Naturally, not every innovation generated by the 
creative colony at Bell Labs shines with the glamour 
of talking movies, hi-fi and TV. But many have gone 
at least as far into the fabric of our society and some 
are fully as well known. One Monday morning in 
1937, for example, mathematician George Stibitz 
walked into his office on West Street carrying a home- 
made breadboard contraption fashioned of metal 
strips from old tobacco tins, flashlight bulbs, batteries 
and discarded telephone relays. Not many of his 
colleagues who watched him demonstrate the appa- 
ratus knew they were looking at the prototype of the 
digital computer. The results of his weekend activity 
soon flowered into a formal project at the Labs, and, 
in 1939, produced the first operating electrical digital 
computer using binary number notation. 

Few inventions then or now really partake of the 
classic image immortalizing the lone genius in his 
attic hatching miracles in incandescent inspiration. 
Even so, individual men do achieve breakthroughs 
that momentarily invoke that image. Most of what 
comes from Bell Laboratories, or from any other in- 
dustrial research organization, in terms of sheer quan- 
tity, is the product of many minds laboring in concert. 
But it is remarkable that so many single intellects at 
Bell Labs can be identified as having opened new 
doors on the future. 

If the creative act in science is occasionally solitary, 
it is almost always so in art. Poems are not written, 
nor symphonies composed, nor pictures painted, nor 
figures cast in enduring bronze, by task forces. The 
making of a sonnet or a statue is an elemental and 
private process. It rarely has any built-in assurance 
of pragmatic success, unless it is done under contract 



or on commission. The man who applies pigment to 
canvas does not i<now, and may not live to i<now, 
whether that wori< born in passionate conviction will 
be dealt with kindly by time and the critics, one day 
to be sought by collectors or enshrined in the Mu- 
seum of Modern Art. 

But he must have a place to work. If science can 
change the human condition, art can mirror it. At 
the rechristening of 463 West Street, Joan K. David- 
son, a daughter of Jacob Kaplan and Westbeth's pres- 
ident, spoke of the arts as primary evidence of man's 
rise from primeval savagery. She concluded, "Let us 
hope that Westbeth can sustain this reminder of a 
civilized society." 

If there is more hope than certainty in that invoca- 
tion, it may be partly because Westbeth is, in a sense, 
an experiment. The founders of Western Electric, 
back in the 19th century, perhaps had somewhat the 
same feeling when they described their new com- 
pany as "a small venture into a new field of industry 
and science." Although Westbeth is the largest effort 
of its kind in the world, it is also a small venture into 
the new field of adequate housing and working space 
for artists — small, that is, in relation to the total artist 
community. But it is large in purpose, and to that 
extent, at least, seems certain to succeed. 

The Westbeth idea 

Success indeed was immanent in the project from 
its inception, for there were 10 applicants for every 
one of the planned quarters. On opening day, there 
was a waiting list of 1,000; a fact which, if it does 
nothing else, attests to the need for decent, reason- 
able — and legal — artists' housing. The Westbeth idea 
of renovating large structures that have outlived their 
original usefulness could well be propagated else- 
where, either with a similar relaxing of some FHA 
room-count rules or through other forms of financing. 

Whatever the approach to such future enterprises 
may be, Westbeth leaves some questions open. The 
playwright doesn't need much space in which to peck 
at his typewriter, but what of the sculptor who tackles 



a two-ton block of marble? Or the painter who's been 
commissioned to do a mural? Or the choreographer 
who designs a new ballet? At Westbeth there is studio 
space for the choreographer, now rented by dancer 
Merce Cunningham. There is theater space for film 
and drama. There are ground-floor galleries for per- 
manent display of the residents' work. There is a large, 
communal studio for sculptors, complete with hoist 
and a floor originally designed to support Western 
Electric's cable presses. 

No Sunday artists 

The questions are, as resident-photographer Ann 
Douglass sees them: What kind of communal spirit 
will evolve? How will sculptors who "work large," for 
example, take to chiseling and modeling and casting 
in one huge community studio? Will Westbeth sus- 
tain a real avant-garde or could it become an old-age 
home for lazy creators? 

The latter possibility seems remote, since applicants 
(who came from all over the United States) had to 
have incomes under established maximums, had to 
furnish references from peers in their respective fields, 
and had to prove they were not Sunday artists. The 
dilettante or the amateur may visit Westbeth, but he 
may not live there. An historian, chronicling the past 
of 463 West Street in 1925, remarked rather plain- 
tively, "Of late years Greenwich Village has gained 
a largely undeserved reputation as the haunt of pseu- 
do-artists, would-be poets, freethinkers, and such- 
like persons." Whatever the present-day reputation of 
the Village may be, there are no spurious creators in 
Westbeth. They are serious, practicing artists as their 
predecessors were serious, practicing engineers. 

Those antecedents, however, are of small concern 
to Westbeth's inhabitants, for the time there is now, 
and that is probably as it should be. One artist, inter- 
viewed recently in his new quarters, was asked if he 
knew anything about the history of the place. 

"Oh, yeah," said he, pulling an earlobe just visible 
above his beard, "it used to be Bell Laboratories. I 
think they tested something here." D 



by Herbert G.Klein 



Are the nation's news media ignoring the ideas of most of its citizens? 
The Director of Communications for the Nixon Administration says they are. 



Who Speaks 

for the 

Silent Majority? 

"A popular Government, without popular informa- 
tion, or the means of acquiring it, is but a Prologue 
to a Farce or a Tragedy; or perhaps both." 

This statement by James Madison is as applicable 
today as it was when it was made 200 years ago. 
The American system is dependent on an informed 
electorate making informed decisions, and thus, it 
is dependent also on a free flow of information. 

There is no question but that today we have vastly 
improved our technical ability to communicate. 

Television beams into our living rooms the pictures 
and sounds of man's first step on the moon. 

Satellite transmission of action photography has 
made Vietnam the most thoroughly covered, and the 
most intimately understood, war in history. It has 
become common to see men shot and wounded or 
killed almost as soon as the event takes place. 

Radio gives us instant news. And newspaper tech- 
niques, at a standstill for so many years, now are 
geared to the seventies with high-speed presses, 
color and electronic typesetting. 

Two questions can be raised legitimately, however: 
Has our knowledge increased in comparison to these 
gains in technology? Do we communicate better? 

It is obvious that we have our shortcomings. Even 
communication within a family today seems more 
difficult than in past generations. Government, along 
with the media, must question how to reach the 
young. And how do you communicate fully with the 
black community, the Mexican-Americans or even 
the old and retired? 

Over the years, the major issue concerning Govern- 



Herbert C. Klein is the former editor of ttie San Diego Union, ttte 
morning newspaper whicfi serves tiiat city. He is a long-time 
friend and press advisor to President Richard M. Nixon. His present 
post is Director of Communications in the Nixon Administration. 



ment information has been whether it has been ac- 
cessible and credible. Before the enactment of the 
Freedom of Information Act in 1967, Government 
agencies had sweeping and unwarranted discretion 
to withhold information from the public in the 
"public interest." 

All too often, the term "public interest" was used 
as an excuse for covering up irregularities or mistakes. 
The Freedom of Information Act requires that infor- 
mation may only be withheld under nine specific 
exemptions and places on the Government agency 
the burden of proving withholding to be necessary. 

Another key aspect of the law is a provision for 
court procedure through which the public can ob- 
tain information wrongfully withheld. 

The Freedom of Information Act has helped make 
Government information accessible. Yet, no matter 
how well drafted, legislation to protect the public's 
right to know is not self-executing. The President 
must provide the leadership. 

When he took office. President Nixon pledged "an 
open Administration, open to ideas from the people 
and open in its communication with the people." 

President Nixon has a deep confidence in the 
American people's ability to deal with the truth and 
believes that if you tell the American people the 
hard truth, they will make the right decision. He has 
pledged "to tell the American people ail I can— not 
only what they need to know, but what they have a 
right to know." 

He made good the pledge with his candid reports 
on Vietnam and the attacks against enemy sanctuaries 
in Cambodia. 

There has been much discussion of credibility, the 
credibility of Government statements and the credi- 
bility of the press. Belief in the credibility of both is 
essential to a free Government. 

On the question of Government credibility, the 
President has recognized the problem as critical and 
directed policy to remedy it. I believe he is succeed- 
ing. The basic premise of the Nixon Administration is 
not to promise what cannot be reasonably delivered. 

The policy and goal of openness is set by the 



11 



We must make certain that we recognize the differences between opinion and fact. 



President. Published in-depth polls have shown that 
the candor of his reports to the American public 
through televised statements and press conferences 
has led to a reawakening of public confidence. 

The President alone cannot carry the entire burden 
for credibility, however. During the first months of 
this Administration, we have sought to broaden the 
base of information through my office as Director of 
Communications, through the work of the President's 
capable press secretary, Ronald L. Ziegler, and 
through the executive branch leaders. 

The President is seeking to take the Government 
to the people, sending more of his Cabinet out of 
Washington to communicate with the broad spec- 
trum of the American public through dialogue, 
speeches and other public appearances. 

How is. the press meeting the challenge to com- 
municate? Basically, 1 give it good marks. 

A high degree of professionalism is characteristic 
of American journalism today. This professionalism 
must be continually developed, because today's 
world— in any field from science to government, from 
sports to education— is increasingly technical. We will 
have intelligent and strong Government only as long 
as we have citizens who understand its problems. 
And they will have that understanding only as long 
as there are reporters with the skills to present the 
facts and the objective background and the interpre- 
tation that is needed. 

There has been much discussion of interpretative 
reporting. I believe it is essential in both broadcast 
and print media, it should be recognized, however, 
that as we depend more and more on this analytical 
help, the responsibility for objectivity on the part of 
the analysts becomes vastly more important. 

Interpretation, background and editorials, in print 
and broadcast, have a powerful role which should be 
encouraged. As we grow in these fields, however, we. 
also should view that power with caution. We must 
make certain we recognize and label the differences 
between opinion and fact. We have "truth-in-pack- 
aging" and "truth-in-lending"; we could do with 
more truth in editorializing. 



Vice President Agnew's recent comments have pin- 
pointed some of the dangers. His timing was good, 
and I believe that the resultant discussion has been 
healthy for Government and for the media. It has 
caused both to reexamine the means of education. 

Basically, I see two major weaknesses in communi- 
cations today, one governmental and the other within 
the media. 

On the governmental side, no one has developed 
an effective modern technique for in-depth, two-way 
communication. 

Government is learning how to get more facts to 
the American people, effectively. It is not progressing 
equally in its ability to understand the responses of 
the American people. 

There are, however, some acceptable means of 
listening to the people. The White House last year 
received more than three million letters and tele- 
grams from Americans. This is the largest volume in 
history, illustrating their desire to communicate. 

Much can be learned from mail in this volume 
because it represents a cross section, not just the 
letters from the directed few. The President sees a 
representation of this mail. Key staff members see 
much of it. The effort is made to answer all of it. 

Two-way communication can be developed also 
by checking with congressmen who are close to their 
constituents, by paying more attention to the ques- 
tions officials are asked on their visits to various parts 
of the country than to what they are being told, by 
examining the content of editorials and by various 
studies— including polls. 

We have experimented with "listening post" tap- 
ing operations, recording interviews with people for 
condensation at some later time. 

We have tried film on a few occasions. 

All of these techniques give some insight into what 
the public is saying. But not enough. 

The one major vacuum I see in reporting by the 
media is their coverage of the "silent majority." 

The media have not developed a readable tech- 
nique for gaining understanding of this majority 
section of the public. It is easy to pass this off by 



12 



The news media should examine the question of whether they are too shallow too often. 



saying that the very silence of the majority means 
there is no news from it. 

The news media should examine the question of 
whether they are too shallow too often, reporting the 
obvious instead of digging beneath the surface. They 
should be concerned with whether they are really 
chronicling what goes on in the nation if they fail to 
report and probe the thoughts and actions of the 
majority in either the black or the white community. 
For a good reporter, action need not be violent to be 
interesting. 

When there is a demonstration or a riot on campus, 
those normally quoted are from the minority who 
have led the disorder. But shouldn't we also know 
about the students who made the decision not to 
participate? They are intelligent. They are articulate. 
What are their views? 

When we neglect the silent majority in the black 
community, how can we pretend to understand the 
feelings of those who in the long run will be most 
likely to lead their neglected brothers to greater 
progress, economically and socially? Who under- 
stands the man who didn't participate in the Watts 
or Detroit riots, or the black, small-business man, or 
the silent black teacher? 

Years back, many newspapers attempted to provide 
a forum for the views of the silent majority by running 
"voice of the people" columns. Most of those have 
been abandoned. Perhaps they became dull. If so, the 
fault seems more likely to have been the technique 
than the subject. Who says people don't make in- 
teresting news? 

When Vice President Agnew challenged the net- 
works to self-examination for bias, many broadcast 
officials were surprised at the volume of agreement 
and at the high education level of the formerly silent 
thousands who wrote protests. The measure of their 
surprise would indicate that ratings and readership 
studies do not provide real insight into the thoughts 
of the average viewer and reader. 

The reaction of the silent majority to the major 
events of 1969, as illustrated by White House mail, 
frequently differs from the opinion of many of the 



nation's leading opinion leaders. 

Today there is great interest in listening to the 
young, in seeking to understand them and in paying 
heed to the ideas of even the anarchists of both left 
and right, who are long on turmoil and short on 
answers to problems. 

The young today are the best educated generation 
in all history, and they do have ideas worth examin- 
ing and sometimes accepting. In the complex world 
of today, the old answers we have been giving for 30 
years are more often than not inadequate. 

But when we read the news today, or watch tele- 
vision, the young ideas we learn of are more likely 
to be those of the anarchists than those of the real 
thought leaders. Are we adequately reporting the 
ideas of the silent, thinking majority on the campus? 
What are their views on racial discord, poverty, war 
or the environment? 

The views of both sides in the campus confronta- 
tion are necessary if we are to be able to analyze the 
unanswered question: Who will govern this country 
in the next generation — the informed or the unin- 
formed, today's college anarchists or today's more 
reasonable students? 

One of the greatest challenges to freedom today 
comes not from Government but from campus revo- 
lutionaries and anarchists who unlawfully disrupt our 
campuses, storm our streets and are intolerant of any 
voices but their own. 

Not long ago. President Nixon presented eight 
Medals of Freedom, the highest of civilian awards, to 
seven newspapermen and one newspaperwoman for 
their contributions to this country. Most of those 
honored had served 50 years or more in the news- 
paper profession. Their experience added up to over 
400 years, more than twice the years this country has 
existed. The singling out of these writers for a free- 
dom award pinpoints the importance of great report- 
ing and great communications to a free country. 

The need for such reporting was great in the ear- 
liest days of our Republic. It is even greater as this 
nation enters into the decade of the seventies and 
nears the observance of its 200th anniversary. D 



13 



TO 
QOMMUNICATE 

ISTHE 
BEGINNING 



A candid statement of concern by the man who heads AT&T. Delivered 

originally as the commencement address at St. Louis University in June, 

it is reprinted here in full, a precedent for BTM, because the editors 

feel it fits. More than that, it is needed. What follows is a reasoned, 

seasoned, perhaps surprising view of today's turmoil, with a 

declaration that this, too, shall be resolved — people willing. 

by H. 1. Romnes 



Last February, when 1 first received the University's 
invitation to speak at your commencement, I confess 
I was surprised, in my reply to Father Reinert, I sur- 
mised that there would probably not be many busi- 
nessmen speaking at commencements this year— and 
events have borne me out. Among all my business 
acquaintances, I— as far as I know— am the only one. 
As the events of the Spring unfolded and the news 



14 



came in of more and more unnerving campus con- 
frontations, I couldn't help but ask myself, "Why me?" 
For the first time in my life I fully understood the 
sentiments of the fellow in Abraham Lincoln's story 

Mr. Romnes is Chairman of the Board and President of the 
American Telephone and Telegraph Company. He started his Bell 
System career in the summer of 1927 as a station installer and 
construction-crew member with the Wisconsin Telephone Com- 
pany. He is a past president of Western Electric. 



that you have all heard so many times before— the 
fellow who was tarred and feathered and run out of 
town on a rail and who, when asked how it felt, 
replied that if it weren't for the honor of the thing, 
he'd just as soon walk. 

A great many things have happened since last Feb- 
ruary. But even then it had been apparent for some 
time that a great many students have grown wary of 
business— and particularly big business. They appear 
to view the corporation as the embodiment of an 
Establishment that puts property and profit above 
human values, that somehow conspires to sustain a 
wretched and degrading war and stands in the way 
of an urgent reordering of our national priorities. 

But back in February it was beginning to appear 
that the war was actually being wound down. And 
there was at least the beginning of hope that Amer- 
icans, shocked by the news pictures of that demol- 
ished townhouse on West 11th Street in New York, 
might begin to ask themselves, "What are we doing 
to each other?" and seek more reasoned ways to solve 
their differences. 

Then came a series of events that set us back. 

The Administration's decision to send American 
troops into Cambodia, however earnestly intended 
it was as a move to save lives and shorten the war, 
appeared to a great many young people— and some 
not so young— as an escalation of the war and they 
reacted in numbers and with a degree of outrage that 
startled the nation. 

Then four students died at Kent State — and two 
more at Jackson State. And six black people died in 
Augusta. 

Across the nation colleges closed down— some for 
days, some for weeks. And some are still closed. 

These have been strange and troubling times— and 
I, along with a great many other people, have found 
myself experiencing unaccustomed events, thinking 
unaccustomed thoughts. 

For example, a few weeks back I found myself con- 
ducting AT&T's Annual Meeting in Cleveland while 
two or three thousand young people marched in pro- 



test outside, shouting their opposition to the war and 
our alleged complicity in it. 

On your own campus, a number of your classmates 
took issue with my selection as your commencement 
speaker. In their view I was not a speaker appropriate 
to the times or a fit symbol of the aspirations of your 
generation. It is not for me to say that they are wrong. 
I would only ask you to grant that it might just be 
possible that a businessman, whether his views match 
yours or not, might be quite as concerned, quite as 
anguished over the events of the past few weeks as 
any of you. 

In recent weeks I have received a great many let- 
ters, mostly from students and some of them deeply 
moving letters, asking me to speak out against the 
war in Vietnam. I have tried to answer every one of 
those letters. And it may surprise some of you who 
have the impression that business is comprised of 
people of absolutely identical views that just a little 
over two weeks ago I found myself in earnest and 
extended discussion with a group of AT&T man- 
agement employees who had written to me urging 
me to make a statement of concern about our coun- 
try's course. 

I am afraid that in neither instance— either in my 
letters to the students who had written to me or in my 
discussion with our own employees— were my an- 
swers fully satisfactory. I can only tell you what I told 
them— and that is that whatever I might say about the 
war would be inevitably construed as the views of 
the business I head and that— on matters that are be- 
yond our competence as a corporation — I do not 
believe I have the right to make such a commitment. 
The Bell System does— after all— employ nearly a mil- 
lion people and it is owned by more than three million 
— and I think it can safely be assumed that these 
people hold views about the war that are quite as 
various as those of Americans generally. By what right 
could I speak for them? 

Furthermore, as a citizen, I would be seriously wor- 
ried about the imbalance in our national decision- 
making process that might develop if corporations 



15 



exercised their influence— their alleged "power"— in 
political matters that are properly the business of the 
general body of citizens to decide. 

"Crisis" is a word that I am most 
reluctant to use, even to describe so 
perilous a passage in our history as the 
present one.... 

whether the urgency of the times permits my cor- 
respondents to heed— or even hear— these observa- 
tions, I do not know. What I do know is that these 
discussions, distracting and demanding as they are, 
are not an empty exercise. For if there is a virtue in 
times of stress like these, it is that they force us to 
examine previously unexamined assumptions and test 
the reasonableness of what we have all too comfort- 
ably taken for granted. The questions I have been ex- 
ploring with my young correspondents are not easy 
questions. They are at one and the same time political 
questions, economic questions and ethical questions. 
They force us to re-examine the role of the individual 
in relation to the institution of which he is a part. 
And— what is most discomfiting of all— they force us 
to re-examine our own motivations as well. I know 
that this kind of re-examination has been going on 
with a great deal of intensity on university campuses 
these days. I thought it might interest you to know 
that it is going on in business as well. 

We hear a lot these days about the "crisis" in our 
society, about divisions so deep— between young and 
old, black and white, rich and poor— that they are 
almost beyond healing. "Crisis" is a word that I am 
most reluctant to use, even to describe so perilous a 
passage in our history as the present one— first of all 
because we have had so many "crises" in recent years 
that turned out to be simply problems and, second, 
because, however much the word might satisfy our 
own yearning for a unique place in history, it implies 
that somehow events have gone beyond our capacity 
to manage them. This 1 don't believe has happened 




16 



and— what is more— 1 don't believe we are going to let 
it happen. 

There are a good many aspects of the current scene 
that I confess I just don't understand. 

I do not understand, for example, how it can be 
believed that — in whatever cause they're used — 
shouted obscenities and mindless vandalism bring 
anything but discredit to that cause. 

I do not understand how understanding is served 
by burning books or banks— or by flaunting the Viet- 
cong flag while desecrating our own. 

And 1 do not understand what it is that our society 
has done to some of its sons and daughters— very few, 
I am sure, but so often described as among the gen- 
tlest and brightest of your generation— that drives 
them to seek peace with the tactics of terror. 

At the same time, I must tell you that I do not 
understand the members of my own generation who 

We had better begin to ask ourselves 
what is happening to our country 
before it is too late. 

characterize— indeed stigmatize— yours on the basis 
of the actions of a tiny minority among you. 

Nor do I understand those of my contemporaries 
who appear to equate dissent with disloyalty while 
at the same time they claim exclusive title to the 
badge of patriotism for themselves. 

Finally, 1 do not understand those, whatever banner 
they march under, who use it as an excuse to vent 
their spite against ideas not their own, people unlike 
themselves. 

What I do understand, however, is what every 
American must understand by now— and that is that 
we are a deeply troubled and divided country and 
that we had better begin to ask ourselves what is 
happening to our country before it is too late. We 
need—! think— if I may offer a modest prescription- 
three things. 

We need to restore confidence in our ability to 
solve our own problems. In short, we need confi- 



dence in ourselves— and in each other. 

We need, I think, to restore some measure of ra- 
tionality to the processes by which Americans make 
up their minds on great issues and on small. And we 
need to communicate. 

A new generation is demanding- 
sometimes stridently-a voice in the 
shaping of the world it will inherit. 

Let me say just a few words about each of these 
needs. 

For me, confidence that we can and conviction that 
we shall surmount our present difficulties comes 
from the reminder that this is not the first time in 
our history that we have been a deeply divided coun- 
try. In my recollection, if not in yours, there has been 
violence in our streets before — and angry people 
watched by soldiers with bared bayonets. I am think- 
ing of the 1930's when there seemed no answer but 
despair to the ever-mounting toll of lost jobs, lost 
farms, lost people. And there seemed no prospect 
either of resolving the sometimes bloody confronta- 
tions between management and labor. Then as now 
events seemed to be taking their own inexorable 
course and it appeared we had lost control of our 
own destinies. Yet somehow we found our way 
through— not by luck but because Americans had in 
that period, as I believe they have today, the will and 
the wit to renew their institutions— indeed to invent 
some new ones to match the challenge of the times. 

There is one other lesson in that half-forgotten 
experience. Perhaps it is only a sentimental memory 
on the part of those of us who were young at the 
time, but somehow Americans seemed to grow closer 
together in those days and, when they were over, we 
were a stronger people as a consequence. 

Once again American institutions are being chal- 
lenged—this time not by the destitute but by the 
young. A new generation is demanding— sometimes 
stridently— a voice in the shaping of the world it will 
inherit. As I read it, the question that you put to us is 



17 



simply this: does the institutional framework of our 
society— this thing you call the Establishment— have 
the resilience to respond to the new needs of the 
times or are its purposes so limited, its processes so 
rigid that it cannot meet the needs of the more hu- 
mane society to which you aspire? 

The question, you must admit, is an arrogant one. 
But I happen to believe that you are in earnest. 1 

What I would like to suggest is that 
there are limits to passion, however 
noble the cause that inspires it. 

believe that you do in fact intend to change the 
world. 

But what kind of a world that will be is going to 
depend in large measure on how you go about it. 
What I would like to suggest is that there are limits 
to passion, however noble the cause that inspires it. 
Sooner or later, when the last demonstration is done 
and the shouting is over, someone is going to have to 
apply himself to the hard tasks of building the new 
and better world you want. Someone is going to have 
to write the new constitutions that will open our 
institutions to the larger measure of shared decision 
making that your generation so clearly demands. 
Someone is going to have to devise the new tech- 
nology it will surely take to mend the ravages of the 
old. Someone is going to have to address himself 
concretely to the task of matching our outmoded pat- 
terns of local government to the needs of a society 
whose problems do not stop at the town line. And 
someone is going to have to face the thankless task 
of reckoning the cost of what we want to do— and 
somebody is going to have to figure out who pays. 

Obviously these tasks are going to take a great 
many somebodies. What I mean to suggest by this 
recital is simply that the achievement of your genera- 
tion's aims, much as they depend on the conviction 
with which you pursue them, will depend even more 
on the plain down-to-earth competence you bring to 



The quality of our society will 
increasingly depend on the quality of 
its individual components.... 

the job. Developing that competence is lonely work, 
but how well you do it will determine, not merely 
your own satisfactions in life, but what your genera- 
tion will have to show to its posterity when it comes 
your turn to make commencement addresses. 

Through all of our country's history thus far, the 
individual has been the fundamental unit of value 
in our society— and I for one am not ready to grant 
that population growth or the massive scale of our 
problems have made the notion obsolete. Indeed, I 
would suggest that the opposite is true — that the 
quality of our society will increasingly depend on the 
quality of its individual components— the skills and 
energy that each of us brings to his chosen field of 
endeavor, the sense of responsibility that each of us 
brings to the tasks of citizenship. 

Tomorrow's world, if we build it well, is going to 
be built, not in our streets, but in our town halls and 
city halls and in the corridors and meeting rooms of 
the Federal Government. It is going to be built in our 
schools and in our neighborhoods. And it is going 
to be built in business. 

It is not my purpose here to recommend that any 

It is business that will provide the 
central testing ground of our ability 
to work together in dignity and 
mutual respect. 

of you, if you have chosen otherwise, seek business 
careers. It will not surprise you, though, that I believe 
that business will in fact provide opportunities to 
shape the future as great or greater than some other 
pursuits that currently appear to offer more of the 
satisfactions of self-dramatization. In large measure 



18 



the resources we can apply to our social objectives 
and the opportunities our society will afford its 
people are going to depend on the performance of 
American business. And it is business, I believe, that 
will provide the central testing ground of our ability 
—the ability of all Americans— to work together in 
dignity and mutual respect. 

But whatever path you choose in life, 1 hope you 
come to share what 1 deeply believe— and that is that 
what one man does— or does not do— even in a nation 

We appear to have lost the capacity to 
listen to each other with a decent 
respect for one another's opinion. 

of 200 million people, a world of three billion people 
—can in fact make a difference. I recognize that I 
cannot urge this conviction on you without at the 
same time recognizing that those of us who are called 
leaders, if we would really lead, have a responsibility 
to do all we can to make sure that what I say is true, 
that our institutions do in fact provide freedom and 
scope for personal initiative and individual accom- 
plishment. 

And so what I have been saying comes down at last 
to a very simple injunction, perhaps too simple for 
an intellectual occasion like this one: Do a good job— 
and whatever you do, do it as well as you know how 
—as if the future of the world depended on it. Because 
it does. 

Finally, let us communicate. Over the past year or 
so, my company has run a series of ads, illustrated 
with enigmatic figures in a strange and desolate land- 
scape and bearing only these words: "To communi- 
cate is the beginning of understanding." I confess 
that when I first saw these ads I wasn't very enthusias- 
tic about them. But somehow— if we can judge from 
the letters we have received from colleges all across 
the country— they spoke eloquently to a great many 
members of your generation. They said, your letters 
told us, something that desperately needs to be said— 



and 1 hope that, if we agree on nothing else, we can 
at least agree on that. 

For surely, there is no more disturbing aspect of 
our times than that we appear to have lost the ca- 
pacity to listen to each other with a decent respect 
for one another's opinions. Isn't it about time we 
restored some civility to public discourse? Isn't it 
about time that we abandoned slogans and in their 
stead addressed ourselves to the more constructive, 
if sometimes more painful, process of applying our 
rational faculties to the search for the right answers 
to society's problems— answers that, if they follow 
the pattern of the past, may never be fully satisfactory 
to anybody but that in the end may turn out to be 
best for everybody. And isn't it about time we stopped 
seeing each other as stereotypes and began seeing 
each other once again as individual human beings, 
all of us sharing the same human predicament, but 
each with his own hopes and anxieties, each with his 
own unique contribution to make in this world? 

There is a risk that in seeking to change 
others, we may be changed ourselves. 

Perhaps a good place to begin would be to get rid 
of the notion that all the regiments of the concerned 
are ranged on the same side of age-30 and all the 
complacent and corrupt on the other. And should we 
not go on from there until at last we in this country 
no longer see each other simply as young or old, 
black or white, rich or poor, right or wrong but as 
particular human beings, each with ideas, feelings 
and aspirations to be judged not by their source but 
on their merits. 

There are, of course, risks to communications. 
There is the risk that in the process we might discover 
that the world is a little more complicated than it 
seemed. There is the risk that we might discover 
frailties in our most firmly held convictions. And, 
finally, there is the risk that in seeking to change 
others, we may be changed ourselves. I think that 
these are risks worth running and I hope you do, too. D 



19 




The word "gap" came into prominence during, 
the 1960 Presidential campaign, when John F 
Kennedy accused the incumbent ^.op ii hlirfin ~" 
ministration of having ignored an in vidiou s "missHe 
gap" between the United States and^ 
The fact that it didn't exist seems,'paradoxic_ 
have given "gap" a parasitic hold on our languateT^ 

Gaps abound. Credibility gaps yawn between pol- 
iticians and their constituents, generation gaps divide 
parents and children, communications gaps frustrate 
understanding, value gaps distinguish haves from 
have-nots and whites from blacks and culture gaps 
aggravate tensions between East and West. The tech- 
nological gap, product of still another imponderable, 
the "brain drain," has European businessmen wring- 
ing their hands. Life-style gaps pit Depression-raised 
parents against children of the affluent society. And 
now, according to experts who mine nuggets from 
this inexhaustible lode of misunderstanding, we have 
the ultimate gap: the gap gap, which separates my 
perception of a particular gap from yours. 

There's humor here, to be sure, but it's curdled 
somewhat by the knowledge that many people be- 
lieve, without examination, in the existence of those 
gaps, just as thousands of intelligent voters thought 
that "missile gap" described a very real weakness in 
America's defense system. 

Political scientists claim that even without a missile 
gap, one had to be invented in 1960. That's not to say 
that John F. Kennedy didn't believe in the missile gap 
when he exploited it as a campaign issue; in fact, 
shortly after his election, he admitted that he'd been 
misled by inconclusive data, badly analyzed. But 
a slogan was needed, and the missile gap was waiting 
to be converted into political fodder. 

We seem to live in an age of "overkill," an age 
when "tough-minded" men have "gut" reactions, an 
age gloomily reminiscent of 19th-century Germany, 
where philosophical romanticists preached the higher 
validity of feeling and emotion over the "cold" de- 
tachment of reason and logic. 

And people who believe— who have been conned 
into believing-that raw emotion is somehow purer 
or more relevant than reason are people not unsus- 
ceptible to the nihilistic "logic" implicit in a remark 




Mr. Van lenlen islntormaiion SAamger-Public Affairs Information 
at AT&T and tias been witti the Bell System for 10 years. A native 
of New Jersey, he has worked in the employee and press informa- 
tion, and public affairs groups at Bell Laboratories, New jersey 
Bell Telephone Company and AT&T's Long Lines Department. 



1 




P* 



^m 








Under- 
standing 
the Gap 

MaJsers 



Gaps are special-interest projects 
conceived by people in pursuit 
of power.Their existence is an 
affront to the intelligence and 
maturity of man.They deny the 
quality of reasonableness as a 
human characteristic, breaking 
down every difference into 
questions that demand a "yes" 
or "no"— never a "maybe." 



by Donald H.Tiaui Lenten 



21 




made by one of Hitler's early admirers: "When I hear 
the word culture, I draw my revolver." 

The culture and texture of life are undermined by 
gaps that separate parents from children, whites from 
blacks and students from teachers. That's true, wheth- 
er the gaps exist or not— it's only necessary for un- 
critical people to believe they exist, and, out of that 
belief, the gaps will evolve, wide and very real. 

Perhaps, as some people argue, we've been delib- 
erately seduced into accepting the whole semantic 
stew of unbridgeable gaps. The language of the se- 
ducers is simple — it is the overkill jargon of pitchmen, 
sloganeers and counterrevolutionaries posing as sav- 
iours; devoid for the most part of anaiyzable content, 
its target is not the mind, but the gullet and the groin. 
What end does it have in view? 

Power, it would seem. 

Righteous intolerance, calculated affronts to human 
dignity, rhetoric studded with obscenities, half-truths, 
historical distortions— the whole mindless (intention- 
ally so) cycle of supertaunts translates almost every 
form of human discourse across the gaps into ex- 
changes of snarls and accusations. 

In the political arena alone, as sociologist Daniel 
Bell said, such mindlessness can lead to the vulgar- 
ization of politics: "For if politics is seen as a case of 
either/or, one needs rhetoric that is simplified and 
does not admit of complication and compromise." 

The experience of one student at an Eastern uni- 
versity typifies the tendency among some antiwar 
demonstrators, for example, to oversimplify efforts to 
end the war in Vietnam. 



^keo 



eople have a right," he 
said, "almost a responsibility, to make their opinions 
known. I don't think this demonstration (the Novem- 
ber 15, 1969 march on Washington, D.C.) is anarchic. 
But I think there's a difference between making your 
opinion known and forcing it on others." 



And what was the response to his reasonableness, 
his refusal to talk in "either/or" terms? 

He was told by militants "Either [you're] for the 
war or against it. If you're against it, you protest. . . ." 

Five people were arrested in New York City for a 
series of bombings allegedly designed to demonstrate 
the bombers' disenchantment with "Establishment" 
policies. A friend of the accused had this to say: 

"Whether we like it or not, bombings are becom- 
ing a way of life in this country . . . some people, 
frustrated by long years of organizing and protesting, 
have begun bombing corporations and institutions 
which perpetuate and profit from the war . . . every 
American 'normally outraged' by the war is a poten- 
tial saboteur." 



E 



ither/or. Either you see it my 
way, either you capitulate to my nonnegotiable de- 
mands, or I blow up your buildings. Anything goes. 

Do you object to busing black children into your 
school district? Follow the example of white suprema- 
cists in a small Southern town: Wait until the bus is 
fully loaded, then tip it over. 

Long hair distresses you? Follow the leader: Organ- 
ize a band of spirited vigilantes, as some members 
of a Northern community did, and cut off any hair 
that offends you. 

Or, if you're really ambitious — whether you're a 
racist, a Yippie, a member of the White Citizens Coun- 
cil, a Black Panther, a John Bircher or a dedicated 
militant (left or right) — follow the "recipe for vio- 
lence" that political science Professor Aaron Wildav- 
sky of the University of California sees, with despair, 
bubbling on public and private burners throughout 
the country: 

"Promise a lot, deliver a little. Lead people to be- 
lieve that they will be much better off, but let there 
be no dramatic improvement. Try a variety of small 
programs, each interesting but marginal in impact 



22 



and severely underfinanced. Avoid any attempted 
solution remotely comparable in size to the dimen- 
sions of the problem you are trying to solve. Have 
middle-class civil servants hire upper-class students 
to use lower-class Negroes as a battering ram against 
the existing local political systems. Then complain 
that people are going around disrupting things, and 
chastise local politicians for not cooperating with 
those out to do them in. Get some poor people in- 
volved in local decision making, only to discover that 
there is not enough at stake to be worth bothering 
about. Feel guilty about what has happened to black 
people. Tell them you are surprised they have not 
revolted before; express shock and dismay when they 
follow your advice. Go in for a little force, just enough 
to anger, not enough to discourage. Feel guilty again; 
say you are surprised that worse has not happened. 
Alternate with a little suppression. Mix well, apply 
a match and run." 



T 



raditionally in the United 
States, political differences have been translated into 
economic terms to avoid self-destructive (either/or) 
confrontations between opposing ideologies. 

Andrew Jackson's reconstruction of American de- 
mocracy along populist lines, for example, took the 
form of an attack on the privately controlled Bank of 
America; Federal and state regulation of natural mo- 
nopolies, a form of socialization implicit in demo- 
cratic principles, has always been advanced as a 
measure to protect consumers and to conserve vital 
resources; Franklin D. Roosevelt's strengthening of 
Federal control over stock exchange practices was 
accepted as necessary to maintain public confidence 
in a business community shaken by the Depression. 

Only once in our history have ideologies dom- 
inated the field: the Civil War. And we still bear the 
scars of that conflict. Civil War literature is studded 
with abstractions. On the one hand, the anti-segrega- 



tionists damned the South as a perverted culture 
based entirely on slavery, and, on the other hand, the 
slaveholders cited Biblical and historical justifications 
for the South's "peculiar institution." America's racial 
problems were not solved at Appomattox; the rancor 
of ideology frustrates their solution today. 

Ideologies are sometimes gross prejudices or grand 
deceptions posing as ideals, and the degree of preju- 
dice or deception is directly proportional to the in- 
tolerance and nonnegotiability of the language used 
to express them. 



I 



in his essay, "The Age of Over- 
kill," Benjamin DeMott imagines himself looking back 
on the 1960's from the gentler perspective of the 21st 
century. He quotes people who did not admit of com- 
plication or compromise and who characterized their 
time: 

"The decade's steady hounding of people 'over 
thirty' was led, for the most part, by public entertain- 
ers, 'rock groups' and the like. Beatle Harrison spoke 
against 'all those old fools who are governing us and 
. . . bombing us and doin' all that.' . . . James Baldwin, 
the novelist and essayist, spoke authentic 'overkill' 
whenever he appeared in public. (The author of 
"Another Country" was given to describing his coun- 
try as the 'Fourth Reich')... Susan Sontag, a writer well 
known in that day, was no less fiercely ignorant in her 
essays on history and race: 'The white race is the 
cancer of history,' she said flatly. 'It is the white race 
and it alone— its ideologies and inventions— which 
eradicates autonomous civilization wherever it 
spreads, which has upset the ecological balance of 
the planet, which now threatens the very existence of 
life itself." 

Given that sort of leadership— and, one should add 
parenthetically, the undeniable excesses and stupidi- 
ties, if only accidental, of certain"Establishment" life- 
styles— DeMott continues, "Youth inevitably respond- 



23 



ed with explosions of its own . . . and the result was 
that by the end of the sixties, the entire articulate 
Anglo-American community — young, middle-aged 
and aged people alike— was transformed into a mon- 
ster-chorus of damnation dealers. . . ." 

Many feel it is time to resign from that monster- 
chorus of damnation dealers. Slogans debase the hu- 
man relationships they pretend to describe. Genera- 
tion gap, ethnic gap, culture gap, value gap, the entire 
string of fierce ignorances contribute nothing to 
human knowledge and understanding. At best, they 
either offer the ersatz comfort of an "explanation" 
or lead to that even more subtle comfort, submissive 
despair. And, at worst, they are indiscriminate cate- 
gorizations, cheap labels which, as the Danish philos- 
opher Kierkegaard observed, deny the existence of 
the people labeled. 



6 



aps are differences esca- 
lated beyond reason. There are differences between 
generations, between races, between cultures, be- 
tween political parties, but they are not congenital— 
they are differences of perception, a matter of history 
rather than biology. 

Why do people allow themselves to be huckstered 
into despair (or inertia) over these differences by 
manipulators whose goal is power and control? 

Jean Piaget, a pioneer in child psychology, may 
have provided a clue in his book, "Language and 
Thought of the Child": 

"In verbal intercourse, it would seem that chil- 
dren do not understand each other any better than 
they understand us. The same phenomenon occurs 
between them and us: the words spoken are not 
thought of from the point of view of the person 
spoken to, and the latter instead of taking them at 
their face value, selects them according to his own 
interest, and distorts them in favor of previously 
formed conceptions. . . . This phenomenon occurs, it 
is true, among adults. But these have had at least 
some practice in argument or conversation, and they 



know their faults. They make an effort to understand 
and be understood, unless distrust or anger reduces 
them to a childish state, because experience has 
shown them the appalling density of the human mind. 
Children have no suspicion of this. 

"They think that they both understand and are 
understood." 

There is distrust and anger in America today, and 
several sociologists believe that many of us have been 
reduced to a "childish state" and have forfeited, or 
at least placed in escrow, our experience of the 
"appalling density" of the human mind. 

For example, a recent film on youth has one young 
man saying, "You (the over 30's) can't climb into my 
frame of reference and I can't climb into yours." 

Statements like these deny the fundamental com- 
monality underlying all human perception, the con- 
tinuous filament of "dailiness" that runs through all 
human experience, past and present, and they ignore 
the sense of community that is indispensable even 
to full realization. Their acceptance as "truths" is 
symptomatic of moral and intellectual laziness, an 
aversion to conscious thought and effort, an easy in- 
clination to live with slogans an'd labels because they 
offer cheap "either/or" answers to hard questions. 

In "The Uses of the Past," historian Herbert Muller 
said: "Whatever higher faculties man may have— of 
feeling, intuition, in vision, trance or ecstasy— can be 
trusted only after they have been interpreted and 
judged by reason. Otherwise, anything goes: the 
visions of Buddha, Christ, Mohammed, Marx, Whit- 
man, Nietzsche, and Hitler are on the same footing; 
and what goes best is apt to be blind unreason or 
brute force. No product of social intercourse is more 
precious than reasonableness, or more essential to 
attaining and sharing the goods of life. . . ." 

The whole argument for liberty, for freedom, for 
self-realization, for democracy, rests on Pascal's dic- 
tum that thought makes the whole dignity of man, and 
that the effort to thinl< well is the basic morality. 

And human history, if only because man has en- 
dured, seems to substantiate the notion that there is 
no gap, real or imagined, that cannot be bridged by 
people willing to make that effort. D 



24 



Business Service 
and Society 



Excerpts from recent talks by Bell System officers 



"Today, my company, Western Elec- 
tric, has some two and a half billion 
dollars of assets. If, somehow, we were 
able to liquidate these assets, we could 
give to every man, woman and child 
in the United States about $12.50. Per- 
haps we wouldn't divide it evenly— 
but, let's say, give every poor person 
$100. In a week or so, the situation 
would be much the same as before 
except some 200,000 Western Electric 
employees would be out of work; 
about 48,000 other businesses that sell 
us things would lose some two billion 
dollars worth of business a year; they, 
in turn, would contribute perhaps an- 
other 200,000 people to the unem- 
ployment rolls; the government would 
lose a quarter of a billion dollars a 
year in taxes; and, of course, the coun- 
try's primary source of equipment to 
fill growing communications needs 
would be gone, with consequences 
too chaotic to speculate on. 

"The point of this rather farfetched 
hypothesis is, of course, that it is the 
dynamic, the vital, characteristic of any 
business enterprise which gives it the 
capability to contribute to the eco- 
nomic well-being of the nation and its 
people. It is the circular, compound- 
ing effect of imagination, innovation 
and investment which creates jobs— 
which provide buying power— which 
expands demand — which encourages 
further innovation. And these are the 
characteristics of business enterprise . . . 
[being called] on to attack the prob- 
lem of poverty— a problem which, in 
my judgment, no amount of govern- 
ment subsidy, or relief, or negative 
income taxes can permanently solve." 

Philip E. Hogin, Executive Vice 
President— Western Electric Company 



"Science can now begin to take us 
where we will know enough about 
. human expression, about the relations 
between seeing and writing and speak- 
ing and listening, so that we can make 
systems for the consumer that extend 
his personality, fit his moods, and pre- 
serve the variety of his perception. The 
crucial feature here is that the system 
is guided by the human nature of com- 
munication, not by what great leap we 
can make with electromagnetic waves, 
relaying signals through satellites, or 
globe-girdling cables. 

"The Picturephone® set, for ex- 
ample . . . can pick up and transmit an 
image of the speaker's face ... in the 
individual's own home rather than in 
the unnatural environment of a pre- 
cisely illuminated studio. 

"Developments such as this strongly 
contradict those who say that science 
has sold us out, and that we have had 
imposed on us a disjointed series of 
facilities, such as Nader-like monster 
automobiles, phosphate-foaming de- 
tergents, thalidomide soothers, or all- 
black-and-busy-signaling telephones. 

"But we must, in the future, be able 
to show more fully how new systems 
fit human function. In fact, the wide- 
spread criticism of reckless material- 
ism may be related to our failure to 
combine the individual components 
of innovation and merchandising into 
really satisfying systems. We need to 
approach new systems through more 
definitive studies of human nature, in 
which the relation of the organic sys- 
tem to styles, designs, transport, cloth- 
ing, foods, entertainment, and above 
all, education is more fully revealed." 

William O. Baker 

Vice President— Bell Laboratories 



"I think we must assign number one 
priority to giving greater considera- 
tion to the social and psychological 
implications of our technological ef- 
forts. We must think beyond the old 
concept of planned obsolescence and 
make more products that will last be- 
yond their warranty period. We must 
build new machines and devise new 
techniques to operate efficiently and 
at reasonable costs without adding to 
the pollution of our environment. We 
must take steps to assure the success 
of minority businessmen. We must an- 
alyze our service policies for possible 
discriminatory implications— or appli- 
cations. We must, as a society, stop 
providing disproportionate benefits to 
one group of people — whether they 
are motorists, home owners or busi- 
nessmen—at the expense of other and 
generally less advantaged groups. 

"But, most important, we have to 
recognize that 'the system' is being 
challenged . . . that we are being chal- 
lenged. And our answer to this chal- 
lenge must be our readiness and ability 
to anticipate the social needs of our 
customers and to give these needs our 
utmost attention in research and de- 
velopment programs and in marketing 
and sales efforts. 

"In practical terms, we have to sort 
out the many possibilities open to us 
and choose the ones that have a high 
social value. I am not saying that we 
ought to discard sound business judg- 
ment and become philanthropic or- 
ganizations. . . . we should assess the 
human effects of our decisions. Hu- 
man dignity must become a prime in- 
put in our decision-making processes." 

Zane E. Barnes 

President— Pacific Northwest Bell 



25 




There once was a nation of 200 million 
people that was the most powerful 
country in ail the world. At the na- 
tional level the inhabitants were very 
rich, but at the local level they often 
turned out to be quite poor. And as 
luck would have it, they ail lived at 
the local level. 

Seventy per cent of the population 
was crowded into 1 per cent of the 
land, which they called cities. One- 
fifth of the city people were the vic- 
tims of poverty. Many of them lived in 
slums where housing was unfit for liv- 
ing, schools unfit for learning, the air 
unfit for breathing and grass and trees 
were a novelty. To top it off, they were 
always stuck in traffic. 

Now the leaders of the people de- 
cided that what the urbanites needed 
most were expressways to get the rich 
through the blighted areas faster, and 
subways to keep the poor from seeing 
how bad things were on the surface. 

But the cities continued to grow 
uglier and the frustrations greater, and 
while the people were moving more, 
they were liking it less. And there were 
riots in the street. 

Now the trouble with the urbanites 



was that they never caught up with the 
problems because they were always 
caught up in the symptoms. Traffic 
congestion was one of them. The rea- 
son for traffic congestion was basically 
that too many people were crowding 
into too little space, and without the 
semblance of community plans. In 
addition, the cities had old-fashioned 
streets never designed to move traffic, 
and lined on both sides with parked 
cars to make sure they didn't. The ur- 
banites left no open space to balance 
off the built-up areas that generated 
traffic, and they put their housing as 
far as possible from the places people 
worked. So the possibility of getting 
a job was often missed by the impossi- 
bility of getting anywhere near it. 

The commuting problem was com- 
pounded by an ancient tribal custom. 
People with light complexions worked 
close in and lived way out, while 
people with dark complexions were 
expected to work way out and live 
close in. As a result, the urbanites were 
always trying to get from where they 
shouldn't be to where they shouldn't 
have to go, and they all tried to get 
there at the same time. 



Mr. Owen is a senior fellow at the Brookings Institution and is a graduate of Harvard 
University. He has served as an advisor to a number of government agencies in this 
country and abroad. He has published numerous articles on transportation problems 
and policies. The above story was originally delivered as a speech at an Urban America 
Conference in Washington, D.C. 



26 



o 



m 



.UPTOg 



Now there were certain wise men 
in that country who saw that the so- 
called transportation problem was 
really part of the larger problem of 
urban design. The basic trouble, said 
the wise men, is not how badly people 
move, but how bleakly they live. What 
we need are trees, grass and fresh air, 
decent houses and schools and con- 
venient recreation. People should be 
able to spend their time enjoying the 
city instead of spending their money 
escaping it. 

When the leaders of the country 
heard this, they decided to put one 
man in charge of cities full time, just 
as the nation had a man at the top to 
worry about fighting the enemy. This 
was a good idea, because the enemy 
turned out to be in the cities, and the 
cities were a lot closer to home. 

The chief urban worrier lost no time 
doing the things that cost the least and 
showed up the best. The obvious first 
step was to clear the streets of vehicles 
that were parking, double-parking or 
cruising in the hope of parking. These 
vehicles were destroying whatever 
transportation capacity there was, and 
they were making neighborhoods look 
like assembly lines. Never had so 
much space been used to help so few 
at the expense of so many. 

The answer was the Off-Street Park- 
ing and Playground Act, which made 
loans to finance attractive multilevel 
garages in cities agreeing to ban park- 



ing on the streets. Service stations 
were included within these structures 
to help pay the bill, and play space 
was provided on the roofs. The effect 
was to double street capacity, reduce 
congestion, improve safety, decrease 
noise, make room for curbside plant- 
ings and increase the livability of 
neighborhoods. Traffic conditions 
were improved 25 per cent and the 
scenery 100 per cent. 

The second step was to take the 
rush out of the rush hour. The Stag- 
gered Hours Act offered tax conces- 
sions to all companies willing to 
schedule worker arrivals after 9 
o'clock. The size of the tax rebate in- 
creased for each quarter hour beyond 
9 o'clock. Cities were able to compen- 
sate for the reduction in taxes by the 
reduction in congestion and the re- 
sulting lower cost of providing neces- 
sary highways and public transit. 

The rush hour was further tamed by 
charging half price for a transit ride or 
a parking space after 10 o'clock. Em- 
ployers and workers had long resisted 
staggering work hours on the grounds 
that this would decrease productivity, 
disturb sleeping habits, destroy car 
pools, disrupt dinner and undermine 
the family structure. But all it did was 
reduce congestion. 

The next step was to close the gap 
between home and work by letting 
people of all colors live where they 
wanted to. This restored the nation's 



#^ 



B, 



■y^ 



■'•^ej 



27 





/M 



image as well as the function of the 
central city. For now the center could 
provide the cultural and entertainment 
focus and the specialized activities for 
all the people of the metropolis. 

The next legislation was the Transit 
Riders Protection Act of 1970, de- 
signed to pay homage to those brave 
people of the nation who rode in pub- 
lic conveyances. Street networks were 
designed for buses only, and buses 
were built that were quiet and sweet 
smelling and that people could get 
into. It was stipulated that riders should 
be told where the bus was going, and 
when the next was coming. Metropoli- 
tan area transit was scheduled by com- 
puter and the whole works displayed 
electronically at each stop. The rev- 
enues of all transport media were 
pooled to pay the bill for development 
of regional road, rail and air transpor- 
tation systems. 

But the emancipation of transit rid- 
ers caused ferment among pedestrians, 
who were the lowest caste of all the 
urbanites. Under the banner "Walkers 
of the World Unite!" they vowed to 
get the city back on its feet by getting 
the people back on theirs. "If we can 
walk in space," they said, "why can't 
we have space to walk in?" They built 
shopping plazas and campus-type 
neighborhoods, they air-conditioned 
the sidewalks, and they introduced 
benches, protective covering and ge- 
raniums. Small electric cars were made 



available on the pedestrian malls for 
people who liked the idea of walking 
but refused to become involved. 

The next step was sheer genius. 
Since much of the money available to 
improve the cities was earmarked for 
highways, highways were located 
where they would clear out slums and 
blight, and they were used to protect 
and insulate neighborhoods and in- 
dustrial parks. Elevated highways were 
banned. For the people knew that 
when highways were elevated, neigh- 
borhoods were depressed, but when 
highways were depressed, neighbor- 
hoods were elevated. 

In the interests of fair play, the next 
step was to make urban renewal 
money available to help build high- 
ways. This money was a supplemen- 
tary fund to pay the additional costs 
of better landscaping, of building 
roadside parks and of locating the 
highways where they cost more but 
looked better. So in the end, transpor- 
tation contributed to urban renewal, 
and urban renewal contributed to bet- 
ter transportation. 

The Bureau of the Budget was ec- 
static. Instead of costing too much, 
the whole program cost nothing. For 
in the end the value of the redesigned 
cities was many times the value of the 
slums, and human values had been 
multiplied by a more noble environ- 
ment and by millions of jobs in urban 
reconstruction. 




??!»«!«?■ 



■^ « 






^.^ 



28 





But it came to pass that while the 
old cities were being rebuilt, the urban 
population continued to grow and 
sprawl, and the slums were being 
transported to the suburbs. The whole 
countryside was becoming a shambles 
of billboards, banners, beer parlors 
and barbecued beefburgers. Another 
hundred million city dwellers would, 
in one generation, demand more new 
accommodations than had been built 
in all the nation's history. 

Then the top man in charge of cities 
began to look around at the 99 per 
cent of the country that was hardly 
being used. There were places where 
the climate was cool, the mountains 
high and the recreation opportunities 
good, both winter and summer; and 
there were places that had industrial 
potentials, research capabilities, re- 
source endowments and not too many 
people. And, in an age of air transport 
and satellite communications, these 
places that were once peripheral were 
now practically convenient. 

So the people selected a thousand 
locations where new cities should be 
built or existing small towns enlarged. 
It was the purpose of this "national 
plan for cities" not only to preserve 
sites for urban settlement, but to pre- 
serve surrounding areas in forest and 
farm, and in state and national parks. 
Then joint public-private corporations 
designed and built the planned com- 
munities that were pleasant to live in 




and easy to move around in. 

When the urbanites saw the spark- 
ling new towns and the beauty of the 
restored cities, they could hardly be- 
lieve their eyes. Now they saw it was 
possible to be urbanized and civilized 
as well as motorized and mechanized. 
For they had learned three basic rules 
for solving urban problems; 

1. The principal problem of cities is 
not how to move, but how to live. 

2. Improving the conditions of living 
can do more than anything else to re- 
duce the need for moving. 

3. But providing transportation is not 
just a matter of getting things moved, 
it is a major means of improving the 
urban environment. 

Looked at in this way, transporta- 
tion has ceased to be a problem, be- 
cause technology and systems tech- 
niques have made it a solution. 

Then the urbanites burst into laugh- 
ter to think how stupid they had been, 
and they thanked all the people in 
public and private life whose efforts 
had made the urban revolution pos- 
sible. And they called themselves the 
Grateful Society. 

But there were some urbanites who 
refused to laugh or even to be grate- 
ful, and they stood around in small 
groups shaking their heads and won- 
dering. "If our country is so rich," they 
said, "why were the cities so poor?" 
And to this day, no one has been able 
to answer that question. D 




*r 






29 



Let's See Now 



On July 1, the Bell System opened a 
new era in communications when Bell 
of Pennsylvania cut into operation the 
world's first commercial Picturephone® 
service in downtown Pittsburgh. The 
see-as-you-talk service initially in- 
volved 33 sets and eight business cus- 
tomers in the Golden Triangle area. 

An inaugural call from Pittsburgh 
Mayor Peter Flaherty to John D. 
Harper, board chairman of the Alu- 
minum Company of America, opened 
with, "Good morning, John, you're 
looking well. . . ." Appropriately, the 
conversation closed with, "Here's 
looking at you." 

By 1975, most major cities will be 
part of the nationwide Picturephone 
network with nearly 100,000 sets in 
operation. 

The photographs on these two 
pages show Western Electric people in 
Indianapolis assembling the sets. D 







30 




jjgr,_ 




31 



Bell 
Reports 



More Cable Goes Sight Unseen 

The Bell System is plowing right along 
in the effort to place more of its facili- 
ties underground. 

In 1969, some 745,000 of 925,000 
new construction sites in Bell operat- 
ing territory were served with new 
buried distribution facilities. Another 
180,300 locations, formerly served by 
aerial cable, were converted to buried 
distribution cable. This represents a 
7 per cent gain over 1968. 

Significant gains were also reported 
in the placement of duct miles of un- 
derground conduit, which rose 72 per 
cent from 12,494 miles in 1968 to 
21,505 miles last year. It is estimated 
that Bell companies will place another 
29,000 duct miles of underground 
conduit this year. 

Despite the Bell System's effort to 
place more of its plant underground, 
there are still some places where phys- 
ical and economic considerations dic- 
tate the use of aerial facilities. Aerial 
cable still comprises 57 per cent of the 
Bell System's total existing cable. 



Say 'Hello,' Mr. Computer 

Machines that speak have been fea- 
tured in many science-fiction films 
and stories. Until now no such ma- 
chine has actually existed. But Bell 
Laboratories engineers have taught a 
computer to talk. 

Nearly natural- sounding synthetic 
speech can be produced directly and 
automatically from ordinary English 
text. It's done by a computer that Bell 
researchers have programmed with 
mathematical approximations to the 
shapes and motions the human vocal 
tract assumes when uttering common 
sounds and common sequences. 

In their experiments, passages are 
typed and sent to the computer from 



a teletypewriter. The computer ana- 
lyzes the sentences, assigns stress and 
timing to each word, and finds a pho- 
netic description of each word from 
its dictionary. Mathematical descrip- 
tions of vocal-tract motions are com- 
puted. These descriptions are used to 
generate electrical speech signals 
which may be heard over a loud- 
speaker or telephone. The typed sen- 
tence is stored for future use. 

Possible uses for the new system 
could be in automatic information 
services which now generate "voice" 
answers from prerecorded tapes, or 
in systems requiring the storage of 
large amounts of data in textual form. 



Who Owns AT&T? 

AT&T has more than 3 million owners, 
which makes it the most widely held 
security in the world. 

Seventy-one per cent of its 549 mil- 
lion shares now outstanding are held 
by some 2.7 million investors in indi- 
vidual or joint accounts. The next larg- 



est category of shareholder is fiduciary 
accounts — estates and trusts — which 
number 300,000 but which control 
only about 3 per cent of the shares 
outstanding. 

Institutions — banks, mutual funds, 
pension funds and insurance compa- 
nies—are big investors in AT&T, and in 
the past two years have increased their 
holdings from 18 to 22 per cent of 
shares outstanding. 

Brokers and security dealers are the 
remaining large group of AT&T own- 
ers. They hold the company's stock in 
"street name" for thousands of indi- 
vidual investors. These holdings total 
about 4 per cent of AT&T's shares. 

Almost anywhere you go you will 
find someone who is an owner of 
AT&T-in each of the 50 United States, 
in all U.S. possessions and in 128 for- 
eign countries and territories. But the 
owners of nearly half of AT&T's shares 
outstanding reside in just four states: 
618,000 New Yorkers hold 144 million 
shares; 281,000 New Jerseyites hold 42 
million shares; 237,000 Californians 
own 40 million shares, and 245,000 
lllinoisans have 39 million shares. Dj 




A ball that can be heard provides blind children enjoyment and the motivation to move 
freely and sell-confidently in a variety of games. The Audio Ball is the brainchild of Ina 
Guyer, a Mountain Bell employee, and was developed after six years' experimentation by , 
(he Colorado-Wyoming chapter of the Telephone Pioneers. The ball, which looks like a ' 
regular Softball, emits a constant beeping noise from a battery-operated sound chamber 
buried deep in its protective stuffing. It is rugged enough to withstand being thrown , 
against a concrete wall at full force by an adult male. Audio Balls are being made by 17 
Pioneer chapters in the United States and Canada for blind children in their areas. 



32 



onlinued from page 1) 

)me of our country's most pressing 
j-oblems with the objectivity and at 
le intellectual level reflected in these 
ritings has my respect and admira- 
pn."—from a power company official 
I Illinois. 

"... I would like tc take this oppor- 

nity to compliment you and your 
impany on a job well done."— from a 

arketing manager in Pennsylvania. 

"The magazine ... is outstanding 

id Bell Telephone can be proud of 
; sponsorship of so excellent a pub- 

lation."— from an oil company exec- 

I've in New York. 

"I wish to compliment you . . . as 
'!// as the American Telephone and 

legraph Company, for publishing 

IS fine magazine "—from a banker 

ilCalifornia. 



Jigators at the Window 

ost missives we receive are serious. 
1 1 every now and then a letter ar- 
res that is not profound and not 
irtisan. it is merely fun to get. Here, 
(■ instance, is an excerpt from a note 
fm Mrs. Dorothy E. Mathews, who 
ens and operates a nursery school in 
Idford, Indiana: 

"After the family has read Bell Mag- 
; ne, I take it to the schoolroom. I 
oose a page, I have my children 
Sited on the floor, and for one min- 
i! they study the picture. Then each 
c Id describes what it looks like to 
1^1. I impress upon them there is no 
V3ng answer, and encourage each 
c Id to 'see' something in the picture, 
''er each child has shared his idea, 

i I <plain, as much as they can absorb, 
a)ut what the picture really is, and 

■ V laugh about some of our ideas. . . ." 

; he full-page, color photo Mrs. 

, ^ thews wrote us about was from the 
'"^rch/April issue, and showed a se- 
r Js Bell Labs scientist conducting a 
5 isitive experiment with glow- 




ing, gossamer 
strands of glass 
called fiber op- 
tics. Not all of r 
Mrs. Mathews's 
scholars saw it 
that way. Among 
the descriptions: 

"Half a butterfly's wing"— "A high- 
heeled shoe"— "Man sitting on a 
candle" — "Man, a little red, trying to 
see if his head is on fire"— And, "An 
alligator looking in the window." 

Alligators, indeed, Mrs. Mathews! 

To Bangalore and Beyond 

Should some reader suspect for even 
a second that Bell Telephone Maga- 
zine is read only by Hoosiers in the 
American heartland, that we lack a 
truly international style and cosmopol- 
itan clientele, let us cite some of the 
cities, villages and hamlets on our regu- 
lar mailing list. Not unexpectedly, 
we're read by one or more people in 
most of the population centers in Can- 
ada, Mexico, South America and 
Europe. But BTM is also mailed to a 
galaxy of destinations whose labels 
might well provide the text of a geog- 
raphy book by Dr. Seuss. 

For example, we go to Ndola, Zam- 
bia, and to Suva in Fiji. They get us in 
Durban, South Africa, and in Banga- 
lore, India. Accra, Ghana, is on our list, 
as are Addis Ababa in Ethiopia, and 
Mbabane, Swaziland. We also go to 
Port Louis on the Indian Ocean island 
of Maurititius. 

And that's not all. Were Bogart alive 
today, one might imagine him scan- 
ning his copy of BTM under whirring 
fans in a white linen suit in a palm 
frond bar in Port Moresby, New 
Guinea; in British North Borneo; in 
Shanghai, Malta, Madagascar, Ran- 
goon, Bombay, Calcutta or Gibraltar, 
for BTM goes to opinion leaders in 
those places, too. While we have no 



hard evidence that the magazine has 
influenced international economic 
and social policies, BTM nonetheless 
reaches readers in such active foreign 
centers as Cairo, Jerusalem, Saigon, 
Peiping, Istanbul, Havana, Budapest, 
Prague, Karachi, Bucharest, and Mos- 
cow (both Russia and Idaho). And we 
also go, with a flourish, to the shores 
of Tripoli. 

Think, Talk and Act Positively 

Can a company magazine be both 
right and read? Can it pull together 
information of such relevance, orig- 
inality and balance that readers feel 
that "this organization is sound, this 
organization is moving ahead, this 
organization is leading in ways and 
things that count, this organization is 
the very best of its kind, anywhere?" 
Can a company magazine vie success- 
fully in the information explosion of 
commercial media, the trade press, 
memos, meetings, movies, books and 
TV for the precious time of busy 
people? Can it move them to think, talk 
and act positively toward a business? 

Mr. H. W. Froehlich, general man- 
ager of the Diamond State Telephone 
Company, a Bell partner, thinks so. 
Because he feels this publication is 
right, he sends it to Delaware's Con- 
gressional delegation, to the Governor, 
and to his company's directors. Sub- 
sequent correspondence and conver- 
sation have convinced Mr. Froehlich 
that the publication is read. 

"You frequently offer an abundance 
of material which can be used in help- 
ing to shape attitudes and to deal with 
our changing customers and employ- 
ees," Mr. Froehlich wrote BTM. Then 
he said, ". . . our magazine does make 
an impact." 

"Our" magazine. Nicer words were 
never written. At least not by a com- 
pany manager about his company's 
magazine. D 



@AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

Washington, D.C. 
Permit No. 43083 



Moving? Changes of address for persons on 
the Bell Telephone Magazine complimentary 
list should be brought to the attention of the 
Circulation Manager, Bell Telephone Magazine, 
Room 826, American Telephone & Telegraph 
Company, 195 Broadway, New York, N.Y. 10007. 
Please include the mailing label from this issue. 



001600605681 ,,013313159999 
LIBRARIAN PtRIOOICAL DEPT 
KANSAS CITY PUB LIBRARY 



KANSAS CITY 



MO 



64106 



.•^■■^ 



How Technology Helps 
Them Heal and Teach 

More Females and Less 
Formality for Business 



September/October 1970 

BELL 



""telephone magazine 




At Work In Maine 
And Minnesota 

A recent issue of a Bell Telephone Lab- 
oratories publication reported that 
Alton C. Dickieson, long a vice presi- 
dent of that esteemed organization at 
Murray Hill, New Jersey, is retiring to 
a new home he's named Sky Moun- 
tain Ranch, in Arizona. As is the alto- 
gether appropriate custom when a Bell 
System company bids adieu to one of 
its stars, he was asked to comment on 
his past and on his plans. 

Said Dickieson, among other things, 
"what really impresses me is that I've 
always enjoyed the people, the work 
and everything about it." 

Such thoughts were perfectly suited 
to the occasion and to the man. For 
Dickieson was himself a mainspring in 
one of the most inspiring people proj- 
ects the Bell System or any business 
enterprise has ever organized. 

Eight years ago Alton Dickieson had 
the overall responsibility for the Tel- 
star® communications satellite experi- 
ment. He gathered together from all 
over the Bell System one of the most 
astounding assortments of scientists, 
engineers and technicians assembled 
anywhere up to that time. In a non- 
stop, 21 -month effort they designed 
and produced the first active commu- 
nications satellite capable of two-way 
telephony and television transmission, 
a 380-ton horn antenna and associated 
computer complex in Maine, and a 
similarly imposing collection of instru- 
ments in France. 

The test came on June 9, 1962, deep 
in the crisp pine forests of upper 
Maine. Most men go up there to catch 
big fish. Dickieson and his men did 
too, in a way. But their task was more 
akin to Ahab's pursuit of the great 
white whale than to some city dude's 
search for Rangeley Lakes Cass. As the 



satellite, fired from Florida, arched 
overhead on its way around the earth 
that evening, the big horn a half mile 
down the lane "turned like a ballet 
dancer," caught it, and Dickieson's 
men in the control room made his- 
tory before the critical ears and eyes 
of much of the world. 

Much was written about Telstar, at 
the time — about the economic system, 
the business organization behind the 
venture, and the many men who made 
it work. And properly so. For it isn't 
often that the public and the press 
have the opportunity to see so many 
really outstanding people pulling to- 
gether against such odds, people such 
as those coolly manning the control 
apparatus at the space station on that 
day in those verdant woods, and to 
watch them bring off a miracle there. 

Every Bell System man and woman, 
in spirit, was in the bunker with them 
when the historic contact was made. 
Each of us stumbled out of the com- 
plex with them when the first experi- 
ment ended, heard and felt the 
whoops of joy, the claps and thumps 
and exuberant shouts. There was noth- 
ing calm, collected and cool about 
that team then. They made so much 
triumphant clatter coming out of that 
control building they must have fright- 
ened moose for miles around. 

As Alton Dickieson has said, in a 
masterful understatement, "it was a 
unique experience." 

There have been other extraor- 
dinary events in which this Bell System 
has had a hand over the last few years. 
For epic drama and achievement, there 
were the first words from the moon, 
in July of last year — "Houston — 
Tranquility Base here — the Eagle has 
landed." And the subsequent tele- 
phone call from the President to the 
three men who made the trip, and 
who took the call on the moon. It had 
been a long while since any feat had 



lifted the nation as that flight did, ; 
communications permitted the ear 
bound majority of us to share the 
perience. 

A few years ago, another Bell ! 
tem unit, put together from ev 
company in every part of the cour 
— different yet so similar to the Tel 
team— fashioned a special network 
tween the White House in Washing 
and the executive mansions and st, 
houses around the nation. In C( 
memoration of the 100 millionth t 
phone, the President held a simt 
neous conversation with 10 goveri 
as the chief executives of the oi 
states listened in on the wire. The 
work was so flawless, so infallible 
technologically perfect that some 
lookers found themselves awestruc 
the ceremony progressed fromi 
Cabinet Room to the capital citie; 

Yet, to some who have servecj 
many a mighty communications fj; 
ect, there was never an event in w 
the emotions ran so high, in which 
feat was so fantastic from a comrr 
cations viewpoint, where the pe 
were quite so superb as they wer 
that great day in Maine. 

One tends to forget, of course 
cause in itself the performance 
not qualify as news, that the same 
men and women who made T(|t 
work eight years ago, and many, r| 
thousands like them, have been dj< 
oping, operating and improving! I 
country's communications net\ 
right along, day by day and every 
before that singular event and 
since. A reminder of this occurre 
cently when a colleague returned 'i 
a summer-long Bell System semir i 
Minnesota. 

"What did you think of your a< c 
ates in the session?" he was ask( 

"There was not an average la 
among them," he said. "They wei th 
brightest, most competent groi c 



eople that I've ever seen." 

They were, it seems, yet another 

bam of Telstar types— still with us, still 

laking modern miracles, or prepar- 

ig to, just as original, as inventive, as 

ble as the achievers who wrought 

jch wonders in the woods in Maine. 

I The man who spent the summer in 

Minnesota and the man who asked 

im about his associates in the semi- 

ar have been friends for two decades. 

r many of those years they have 

en Bell System employees and 

irough those Bell System years their 

iendship appears not to have just en- 

jred but to have grown and ripened, 

so many seem to do in this business. 

!t it is just as obvious that many 

xupations, many companies, cause 

ich serious strains among men that 

ice strong personal ties are often 

■eparably ruptured. 

This is not to disclaim those pres- 

Ves in Bell System work and life that 

St a man's sensitivity and durability. 

lere are tensions, conflicts, competi- 

'6 situations, deadlines and demands 

!re that make a man face up to him- 

If and to his associates and show, 

er the long run, what he can and 

nnot accomplish. But the service 

notion and operation of this busi- 

•ss appear to bind men together 

her than pull them apart. It has quite 

ot to do with the purpose, the mis- 

)n, the precepts of the enterprise it- 

f. People take on the tone of the 

als toward which they work. If those 

als are quality goals, the people rise 

1 rnatch them. 

Robert Frost wrote that good fences 
like good neighbors. For our pur- 
ises here, it might be said that a 
sod business makes good friends, 
'd, conversely, good friends make 
;;ood business. That's what Alton C. 
l:kieson meant, we suspect, when 
I said, "I've enjoyed the people, the 
^rk and everything about it." D 



BELL 

telephone magazine 



VOLUME 49 NUiVIBER 5 



SEPTEMBER/ OCTOBER 1970 



Call the Doctor! 
by Carter F. Henderson 

A health care specialist reports on some critical contributions of 
new communications to modern medicine. 

Who Should Participate? 
by John J. Scanlon 

A more personal, less rigid management modus operandi will evolve 
as business broadens its goals for the new decade. 



Liberty for Women 12 

by Susan Brownmiller 

A journalist-feminist recalls some grim experiences in the male-run 
world of industry and forecasts a fairer shake for females 
from here on out. 



Teachers and Technology — 

An Impotent but Promising Partnership 21 

by Sterling M. McMurrin 

The former U.S. Commissioner of Education urges new attitudes 
on the part of teachers, bureaucrats and businessmen so that schools 
can meet the needs of students. 



Bell Reports 26 

A summary of significant developments in communications. 

You've Come a Long Way, Baby 28 

A four-page photo feature of people at work in a 
Western Electric factory. 



Business Service and Society 32 

Excerpts from talks by Bell System officers. 



H. I. Romnes, Chairman of the Board 
and President 

John D. deButts, Vice Chairman 

Robert W. Ehrlich, Secretary 

John J. Scanlon, Treasurer 



Tim Harriman Henney, Editor 
Al Catalano, Art Director 
Robert A. Feinstein, Assistant Editor 
Donald K. Smith, Assistant Editor 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212-393-8255 



CALL 

THE 
DOCTOR! 

As the supply of physicians and surgeons lags, 
bold new uses of communications 
help meet the nation's burgeoning medical needs 



by 
Carter F. Henderson 



A young Claremont, N.H., mother, home after deliver- 
ing a baby, complained to her family doctor that she 
easily became fatigued and seemed to be having great 
difficulty caring for the child. In addition, she was 
depressed and had expressed thoughts about suicide 
to her husband. 

Mr. Henderson is a management consultant who specializes in 
health care. He directs medical services at the Preventive Medi- 
cine Institute-Strang Clinic in New York. A graduate of the Whar- 
ton School of Finance and Commerce at the University of Penn- 
sylvania, he was formerly London bureau chief of the Wall Street 
Journal and manager of public affairs at IBM. 



The family doctor, after an examination, ruled out 
major physical causes for her symptoms of fatigue and 
then made a telephone call. 

A short time later, the young mother was in a small 
television studio at Claremont Hospital being inter- 
viewed by a psychiatrist 20 miles away at Dartmouth 
College's Hitchcock Medical Center in Hanover. The 
family doctor watched the interview in a room adjoin- 
ing the hospital's television studio. 

The young mother was convinced by the psychia- 
trist that suicide was not the answer and the psychia- 








o 







-^1 






trist further reassured her by discussing tentative 
plans for immediate psychiatric care. Following the 
interview, the family doctor and the psychiatrist, via 
the same closed circuit television system, reviewed 
the patient's problems and concurred on both med- 
ical and psychiatric treatment. 

A medical-sociological team at the Hitchcock Med- 
ical Center has been operating the 24-hour consul- 
tation service between Claremont and Hanover for 
nearly three years under a grant from the National 
institute of Mental Health. It was the nation's first 
community-based closed circuit television and its 
primary objective is to enable family physicians to 
care for patients with emotional problems without 
sending them away from their homes and communi- 
ties. The television consultation service is one of many 
examples of how modern medicine is suddenly and 
dramatically rediscovering the power of communica- 
tions and the telephone network in the nation's un- 
ceasing quest for good health. 

Since its invention nearly a century ago, the tele- 
phone has been an integral part of health care, as any- 
one knows who has ever raced for the phone in a 
medical e.mergency. It might even be argued that the 
first words spoken over the telephone — "Mr. Watson, 
come here, I want you !" — were prompted by a medi- 
cal emergency: Alexander Graham Bell's fear that the 
battery acid he had just spilled on himself might burn 
his skin. (It didn't.) 

Computers Join Network 

Today, however, totally new ways of using the tele- 
phone to improve our medical delivery system are 
being developed throughout the country. Kidney 
transplant candidates are being selected, brain dam- 
age and thyroid disease are being diagnosed, hearts 
are being examined, respiratory diseases are being 
detected, doctors are being educated and lives are 
being saved — with the aid of the telephone system. 

University of Wisconsin Medical Center cardiolo- 
gists, for instance, recently announced a system to en- 



able every hospital in the state to use the telephone 
and computer facilities for electrocardiogram (EKG) 
analysis of heart disease. The system initially will read 
EKG measurements phoned in by technicians, and 
later accept data transmitted directly without human 
intervention. A computer will examine the EKG for 
each of the many types of cardiac disorders, record 
any abnormalities it detects and finally print out a 
simplified report containing patient and EKG data, 
diagnoses and suggestions for additional tests. 

Cardiacs and Communications 

Lee Hospital in Johnstown, Pa., has just set up 
what it calls an "electrocardiograph network" which 
will permit heart patients to receive immediate treat- 
ment at night, on weekends or on holidays when 
there are no cardiologists on duty. The network con- 
sists of the hospital's four heart specialists who take 
turns at being "on call" in their homes during these 
periods. The duty physician has an EKG machine in 
his house which is connected to the hospital by tele- 
phone. Emergency EKG's are transmitted to the doc- 
tor at home who reads them and immediately tele- 
phones the hospital to discuss the patient's care with 
a physician or registered nurse. 

Diagnosing thyroid disease has always been a dif- 
ficult and time-consuming job. The thyroid is a small 
butterfly-shaped gland which straddles the Adam's 
apple, and its job is to accumulate the body's scarce 
supply of iodine and synthesize it into a hormone 
known as thyroxin. An insufficient supply of thyroxin 
causes the body's machinery to slow down. Too much 
thyroxin causes physiological overactivity that can 
lead to severe strains on vital organs. 

A computer at the University of Florida Medical 
Center can now detect most thyroid conditions with 
great accuracy in the space of a heartbeat. Informa- 
tion on a suspected thyroid patient is keyed into a 
typewriter-like terminal and carried by telephone 
line to a data processing machine located across the 
campus at the university's computer center. The com- 



puter compares the patient's condition with known 
diagnostic findings on 2,000 thyroid cases. And three 
minutes later a complete report is printed out on the 
terminal, listing diagnostic probabilities and a con- 
clusion. Thyroid reports are made for the medical 
center's own patients, and for patients at a Veterans 
Administration Hospital some miles away. 

Up until a short while ago, residents of Magic 
Valley, Utah, who were suffering from brain damage 
or nerve impairment had to travel 240 miles to Salt 
Lake City to be examined by a neurologist. To elim- 
inate this journey and the risk to patients that goes 
with it. Dr. Donald Bennett, assistant professor of neu- 
rology at the University of Utah, has set up a "Tele- 
medicine" system which makes it possible for these 
individuals to be examined by telephone. 

The patient's electroencephalogram (EEC) is trans- 
mitted from the Magic Valley Memorial Hospital, and 
then transmitted over ordinary telephone lines to Dr. 
Bennett in Salt Lake City, who reads and interprets 
it. If a medical problem is uncovered, Dr. Bennett 
phones the patient's physician in Magic Valley, con- 
sults with him on the patient's medical history and 
then works out a diagnosis which might be anything 
from a migraine headache to cancer of the brain. 

Telephones Aid Transplants 

Another recent advance is a computer communi- 
cations network that within seconds will determine 
which patients are most suitable for kidney trans- 
plants among candidates available. "Since no more 
than six hours can elapse between removal of a kidney 
and completion of the transplant operation, the time 
factor is a critical one," said Dr. Robert K. Ausman, 
deputy director of the Florida Regional Medical Pro- 
gram. "With the computer system," he added, "the 
physician can match a kidney against hundreds of 
potential recipients in seconds, compared with the 
10 to 12 tissue matches an hour that are possible with 
conventional manual methods." 

The fastest-growing new killer in America is a lung- 



ravaging disease called emphysema which causes a 
deterioration of the lung's tiny air sacs. This makes 
it increasingly difficult for the person to exhale, causes 
stale air to build up in his lungs and makes him gasp 
for breath. Early diagnosis of this incurable disease 
is vitally important if it is to be controlled. 

LungTests Via Long Distance 

Now a simple lung function test for emphysema 
and other respiratory diseases such as chronic bron- 
chitis has been developed which can instantly detect 
these killers, and can be given to people in remote 
communities via long-distance telephone lines. The 
University of Nebraska Medical Center in Omaha and 
the Latter Day Saints Hospital in Salt Lake City offer 
these examinations. The Latter Day Saints Hospital 
recently staged a "health fair" in several communities 
some 60 miles away in the Kamas Valley, Utah, in 
which nearly 300 people were checked for emphy- 
sema. The presence or absence of emphysema was 
determined by a spirometer which measures the vol- 
ume and rate of air leaving a person's lungs. This data 
was transmitted over telephone lines to the hospital's 
computer center where it was compared with normal 
exhalation volumes for persons of the individual's 
age, height, weight, sex and other variables. The com- 
puter instantly calculated the extent of the damage 
from emphysema, if any, and relayed the results back 
to Kamas by telephone within two seconds — com- 
pared to hours or weeks using prior methods. No 
agonizing waiting period was necessary before get- 
ting the results, and the residents of the Kamas Valley 
either walked away free of worry, or if emphysema 
had been detected, at least encouraged by the knowl- 
edge that treatment to control the disease could be- 
gin immediately. 

An even more dramatic use of the telephone can 
save people from all manner of accidental tragedies. 
Medic-Alert Foundation of Turlock, Calif., for exam- 
ple, supplies each of its 325,000 members with a metal 
identification bracelet with the number to call for a 



computerized file on his medical history. "A few 
months ago," recalled one of Medic-Alert's members 
who suffers from diabetes, "1 was visiting a group of 
friends when I went into an insulin reaction. I be- 
came very wild and violent and ran out on the lawn 
just as a police patrol cardroveby. The police thought 
I was intoxicated and were going to take me to the 
station. My friend could not convince them that I was 
a diabetic and needed medical treatment until he 
remembered my Medic-Alert identification which he 
showed to the police who immediately phoned for 
my medical history and took me to the hospital." 
Laugh-ln's Dan Rowan wears a Medic-Alert bracelet 
to inform others about his diabetic condition, as does 
the New York Mets' Manager, Gil Hodges, because of 
a heart problem. 

While the telephone system is directly improving 
medical treatment for the patient, it's also helping 
him by bringing new sources of medical knowledge 
to his physician. Physicians have a Herculean task of 
keeping up with the explosion of new medical knowl- 
edge which is growing so fast that today's medical 
school graduate may find that 75 to 90 per cent of his 
observational and treatment armamentarium has be- 
come obsolete by the time he's 45. 

To cope with this problem Ohio State University's 
College of Medicine, under a grant from the U.S. De- 
partment of Health, Education, and Welfare, launched 
a program of computer-based medical instruction to 
help physicians and other health professionals in re- 
mote communities keep abreast of new develop- 
ments in medicine. 

Updated Information Handy 

Computer terminals were installed in four outlying 
Ohio hospitals and linked via telephone lines to a 
computer at the College of Medicine. Physicians 
working at these hospitals can use the system to re- 
ceive the latest information about medications and 
treatments available for a particular disease, or to take 
refresher courses in their area of specialty. The sys- 



tem will also offer specific courses of instruction to 
nurses, physical therapists, dietitians and other health 
professionals. Each participant proceeds at his own 
pace, and is guided to correct answers if necessary. 

Here is a typical exchange which might take place 
between doctor and computer: 

Computer: Erythroblastosis fetalis is a hemolytic 
disease caused by the incompatibility between the 
blood groups of the mother and child. The RH factor 
is the most important cause of most such incompati- 
bilities. What must be the RH factor of both the 
mother and father before such incompatibility can 
take place? 

Doctor: Mother RH negative; father RH positive. 

Computer: Correct. If the mother is RH positive and 
the fetus is RH negative, incompatibility can develop. 
If the fetus and mother are both RH positive, both RH 
negative, or the fetus is RH negative and the mother is 
RH positive, no incompatibility will arise. Since this 
incompatibility will not arise until the mother is sen- 
sitized (so that she makes antibodiesagainst her fetus), 
when does the incompatibility usually occur? 

Doctor: In the second or third pregnancy with an 
RH positive baby. 

Computer: Correct. In order to sensitize the mother 
it usually takes one or two pregnancies with an RH 
positive fetus, or a transfusion with RH positive blood. 
In other words, the disease usually occurs with two 
or more pregnancies. 

"One of the traditional problems of medicine," said 
Dr. Lloyd Evans, of Ohio State, "has been the time 
required to disseminate new medical developments 
and techniques to practicing physicians. This system 
should do a great deal to relieve that problem." 

Another pioneering approach to continuing edu- 
cation for physicians is developing in a number of 
states. The Wisconsin Regional Medical Program 
offers the state's doctors over 350 different tele- 
phone lectures to refresh and update their knowledge 
on subjects such as allergy, blood and lymphatics, 
cancer, gynecology and obstetrics. These 5- to 6-min- 
ute taped lectures by leading medical authorities also 



cover the emergencies including cardiac shock, l<id- 
ney failure, pulmonary edema, anemia, penicillin al- 
lergy, bee-stings and even aspirin poisoning. A similar 
lecture bank at the University of Missouri Medical 
Center in Columbia, Mo., offers 500 telephone lec- 
tures on a wide range of subjects 24 hours a day, 7 
days a week. "Ultimately," said Charles Sargent, assis- 
tant director of the program, "we plan to increase the 
number of taped lectures to 5,000." 

Easy Access to Experts 

One of the most impressive examples of advanced 
medical communications occurred earlier this year 
in Davas, Switzerland, when 2,000 doctors attending 
the 18th International Congress .for Postgraduate 
Medical Instruction were linked by closed-circuit 
television with the National Aeronautics and Space 
Administration's facilities in Houston and San An- 
tonio, Texas. The doctors saw American specialists dis- 
cussing the latest developments in early cancer detec- 
tion and the relationship of space medicine research 
to everyday medical practice. The "Medicine from 
Continent to Continent" program, using satellites for 
relaying the live telecast to theater-sized screens in 
Europe, was sponsored by the CIBA Corporation of 
Switzerland, and seen simultaneously by 25,000 addi- 
tional physicians in 10 other Swiss, West German and 
Austrian cities. 

One exciting new development which goes a step 
beyond pure medical education is a new system that 
allows pediatricians to privately consult with a board 
of the nation's most distinguished authorities in chil- 
dren's diseases any time of the day or night without 
ever leaving their offices. The experts are men such 
as a professor of pediatrics at the University of Penn- 
sylvania Hospital, and the physician-in-chief at Phila- 
delphia's Children's Hospital, whose knowledge and 
experience in diagnosing congenital and acquired 
diseases in children is contained in the memory bank 
of a computer system introduced last year. 

These experts constantly update the data in the 



computer's memory bank to reflect important new 
things they've learned in their daily practice of pedi- 
atrics. Physicians connected to the system can now 
examine sick children brought to them, and key their 
findings (i.e., elevated temperature, systolic heart mur- 
mur, etc.) into a teletypewriter terminal which relays 
them to the computer over telephone lines. The com- 
puter compares these observations with those stored 
in its memory, and responds with a printed listing of 
diseases or syndromes which the experts have de- 
cided are compatible with the examining physician's 
findings on the child's condition. 

One interesting advantage of a computer-assisted 
diagnosis system is that it may help protect physicians 
who are sued by their patients. Something like one 
out of seven physicians is being sued these days, and 
the doctor's position would be strengthened if he 
could show that he had "consulted" with experts. 

All of these important new ways of advancing the 
dissemination of medical knowledge will free the 
physician to practice medicine on a much higher 
plane than he can today. These communications- 
based networks will undoubtedly spawn whole new 
fields of life-giving medical expertise, as happened 
with the electrocardiograph. In the meantime, these 
new uses of the telephone network are helping to re- 
lieve the current shortage of physicians by extending 
the individual doctor's scope and reach. 

New Era in Medicine 

where is all of this new medical technology lead- 
ing? Part of the future is discernible in the experi- 
mental programs at the National Institute of Health's 
Division of Computer Research and Technology in 
Bethesda, Md. Much of this work utilizes the regular 
12-key push-button telephone which Dr. Arnold W. 
Pratt, director of the division, believes will provide 
the cheapest and most efficient way to plug the na- 
tion's physicians into the growing number of medical 
communications services being made available to 
them. Some of the division's programs were described 



in the journal of the American Medical Association 
by Scott I. Allen, M.D., of the division's computer 
systems laboratory. 

One of these programs, for example, can help a 
physician diagnose a patient's symptoms, while an- 
other prescribes the proper medication and treat- 
ment. Suppose a seriously burned baby was rushed 
to an emergency clinic. The doctor could pick up the 
telephone and punch in coded information on the 
baby's size and weight, along with how much of its 
body was burned. Seconds later he would get back 
treatment advice including proper quantities of saline 
and dextrose solutions, blood transfusion require- 
ments and the need for tetanus shots. Precious time 
saved on working out these elaborate calculations 
could save the infant's life. 

Dr. Pratt and his associates have developed a proto- 
type system which will shortly enable physicians from 
anywhere in the country to receive computer-assisted 
diagnosis data on a wide variety of diseases, as well 
as information on drug compatibility and toxicity, by 
simply pushing buttons on their telephones. Answers 
to the doctors' questions will be delivered by the new 
system's automatic voice response unit. 

The contribution which the telephone system, the 
computer and other advanced instruments can make 
to the practice of medicine is profound in its impli- 
cations. There will be problems, of course. These 
systems are costly, and medical care in America is 
already too expensive and becoming more so. Phy- 
sicians responsible for the care and preservation of 
human life do not rush to embrace untried new de- 
velopments of any kind. And there is still a question 
as to whether the suppliers of these new medical 
services could meet the demand for them if they sud- 
denly caught on within the medical community. 

But these problems must and will be overcome 
because today's society simply cannot accept the old 
ways of practicing medicine. New medical knowledge 
is growing too fast. The supply of physicians is grow- 
ing too slowly. And a rising population is demanding 
better medical care. D 




Who Should Participate? 

Corporate spokesmen have been writing and talking 
about "The Management of Change" ever since, prob- 
ably, the first rustic entrepreneur sold the first crude 
wheel to a less opportunistic and footsore fellow 
primitive. But rarely, if ever, in the history of com- 
merce has a decade dawned with so many new de- 
mands from so many different directions upon the 
once relatively insulated institution of Big Business. 
If 1970 can be interpreted as a microcosm and a har- 
binger of the decade it introduced, then it is likely to 
be a tough 10 years for many business organizations. 
Indeed, such industries as aerospace and securities 
have already suffered mightily in this, the lead-off 
year of the seventies. 

With new pressures — from women's liberation to 
ecological accountability — being brought to bear 
upon business, alert corporations are tooling up for 
these new times. The conventional profit incentive 
remains, as it always must. But the goals of business 
are broadening. The conventional values are 
changing. 

To accomplish new goals and honor new values, 
and so continue to grow and to contribute its prod- 
ucts, services and jobs. Big Business will be doing 
things differently from here on out. Looking the pro- 
testing, promising, precedent-setting Seventies 
squarely in the eye, a senior AT&T officer predicts 
some significant shifts in business management in 
the years ahead. 



No one can specifically predict what changes 
will take place in basic corporate philosophy 
and objectives. However, we already have 
witnessed growing trends by business management 
in becoming increasingly more responsive to the 
needs of society. The recent commitment by busi- 
nesses to provide work opportunities for the previ- 



by John J. Scanlon 

ously unemployable is one example. Others include 
today's corporate concern in consumerism, anti-pol- 
lution and women's rights. 

With this responsiveness, however, corporations 
and society face a challenge: that of melding those 
groups— ranging from welfare recipients to graduate 
students— who are demanding a greater participa- 
tion in decision making with those who traditionally 
have played the major role in our policy making. The 
latter are generally thought to be experienced and 
highly knowledgeable about the present technolog- 
ical, economic, social and political factors involved. 

The corporate structure also has been changing be- 
cause of this responsiveness. It seems fairly certain 
that participatory management will grow and — as a 
result — there will be a lessening of authoritarian 
action by management. Corporations, in effect, will 
be more open — more like large social organizations 
than militaristic institutions — as they attempt to re- 
spond more effectively to community pressures. 
These pressures, in part, have resulted from manage- 
ment's failure to adequately judge the depth and sig- 
nificance of public opinion on certain issues. 

Hopefully, new management techniques will help 
provide more reliable indicators of the ramifications 
of corporate actions. The ability to gather more ac- 
curate and meaningful data, and the knowledge to 
process that data against a series of variables, will 
provide management with a range of options that 
would otherwise not be possible. Such possibilities, 
however, may tend to centralize decision making 
unless management makes a concerted effort to re- 
main close to the society in which it operates. Efforts 
toward greater contact and interplay of ideas among 
leadership of various public and private institutions 
are among the things that will be basic. 

Mr. Scanlon is vice president and treasurer of American Tele- 
phone and Telegraph Co. and has been with the Bell System 
since 1925. He is a director ol several organizations, including 
The Chesapeake and Potomac Telephone Company of West Vir- 
ginia, The Southern New England Telephone Co. and The United 
States Life Insurance Co. He is a trustee ol the Dry Dock Savings 
Bank in New York, and chairman of the advisory committee on 
finance of the Harvard University Graduate School of Business. 



Within the corporation, it seems apparent that we 
must move gradually toward organizational forms 
that will: 

Give employees at all levels more personal com- 
mand over the shape and pace of their own work. 
(We have, in many cases, so over-specialized or frac- 
tionalized jobs that many individuals cannot identify 
with a whole job and, therefore, no longer take per- 
sonal interest and pride in their performance.) 

Provide more informal working environments, with 
a reduced sense of hierarchy. (To the extent possible, 
work units should be more project-oriented — and 
structured more to the human scale — so that the in- 
dividual can retain a voice in priorities and direction.) 

In addition, management should think seriously 
about how leadership can be developed to function 
effectively in the face of today's pressures and fast- 
paced change. As Melvin Anshen, professor at Colum- 
bia's Graduate School of Business said, tomorrow it 
may well be "more important to make correct deci- 
sions about the direction, training and implemen- 
tation of change than to maintain a high level of 
efficiency in administering steady-state operations." 

The next decade will also see changes in the man- 
agement of the major functional areas of business. 
There already is evidence that the traditional bound- 
aries which were somewhat arbitrarily assigned to 
various departments are diminishing. The increased 
use of the systems approach to problem solving, the 
refinement of operations, research and the growth of 
the number of systems analysts are all examples of 
how once nearly sacred departmental boundaries 
have withered away. 

Redefinition Continues 

The future is likely to see the manager of these 
major functional areas as a person with proven ability 
to break across artificial barriers among disciplines 
and professions. His or her ability to manage the in- 
tellectual resources of others could well assume over- 
whelming importance in the years ahead. And, in- 
stead of becoming more specialized, higher levels of 
management must be developed and organized to 
deal with matters in a broader context. Some busi- 
nesses already have combined personnel, public re- 



lations and environmental affairs groups together be- 
cause of the close interactions needed to bring about 
solutions to perplexing problems. Likewise, engineer- 
ing, marketing and production or operations depart- 
ments are being consolidated in an effort to achieve 
coordination and cooperation. I'm sure business or- 
ganizations will continue this process of continual 
redefinition of the roles of various departments. 

Impersonalization of large institutions, including 
corporations, is one of the critical problems we face 
today. We see it dramatized in many forms: 

The rise of student radicalism and the alienation of 
youth; 

The demand for equal rights and liberation by 
women; 

The growth of the black nationalism movement 
with all its "Black Pride" ramifications, and 

The continual changing composition of individuals 
and groups who one day are united on one issue and 
on the next day are at loggerheads on another. 

New Insights Are Required 

It is evident that the employee will seek greater 
personal identification within the framework of his 
organization. Self-pride in what he does during his 
working hours will be more important than the ac- 
complishments of the organization or institution as a 
whole. Already we see a diminishing of loyalties to 
the business. Instead — and especially for the highly 
trained — we can expect individuals to have a greater 
loyalty to their own discipline, whether it be a trade 
or a profession, than to the organization. It is through 
such an association that individuals will acquire the 
"community of interest" that they seek. 

There also are indications that new insights are 
needed if we as managers are to engage effectively 
the best energies of young people who seem less con- 
cerned with money, status or authority. This also, as 
I mentioned earlier, would logically call for an in- 
crease in participatory management, if we are to tap 
the better-trained resources that higher education is 
delivering to the business community. But it does not 
follow that everyone, therefore, has earned his right 
to participate in establishing goals and priorities, as 
well as in determining the means of reaching those 



10 



objectives without having first demonstrated his 
competence. 

The question comes to, "Who should participate?" 
The answer perhaps should be, "Everyone — or every 
element of society — to the extent of his ability." 

More and Better Planning Needed 

There is no question but that business will be held 
even more accountable for the effects of its actions 
than it has been in the past. But instead of being held 
accountable to just one group — stockholders, for 
example — business will have to demonstrate its ac- 
countability to several institutions at once. 

It is likely that business will be faced with am- 
biguities, with conflicting measures of success. What 
might be a responsible action for one group would be 
deemed an irresponsible act by others. It's also gen- 
erally recognized that we don't know enough about 
the potential impact of our actions, and especially 
how new technology is going to change our life-style. 

What is even more perplexing is that we don't 
know how we would like it to alter our lives. 

The predicament in which we find ourselves leads 
us to goals and objectives and the question of how 
business will accommodate its views and proposals to 
the societal needs of the seventies and eighties. 

In a social sense, the word "planning" has some 
ugly connotations but it is obvious that, as society 
grows in complexity, more and better forms of plan- 
ning will become necessary. And no one institution or 
organization — whether it be the government, the uni- 
versity or the business community — can establish 
priorities by itself. In both goal-setting and develop- 
ing plans for implementation, it will be necessary to 
obtain the cooperation and coordination of segments 
of government, education and industry. Problems as- 
sociated with urbanization, for example, involve a 
large amount of interaction between public and pri- 
vate organizations. So do problems related to trans- 
portation, health and education. Increasingly, such 
problems will call for business managers who can 
skillfully bring together experts of government and 
education into the planning stages. And we may very 
well see a growth in the number of individuals who — 
during the course of their careers — hold responsible 



positions in the various segments of our society. 

It is undoubtedly clear that corporations will, to 
an even greater degree than at present, have to iden- 
tify their goals with those of the society in which they 
operate. This will require that business leaders es- 
tablish such goals mutually with various sectors of 
that society. 

The problems of the magnitude that business and 
society face will not be solved overnight, and — in all 
probability — the decisions reached by corporations 
in approaching them will not come as lightning bolts, 
but in small increments along the way. 

In attacking these problems business should start 
with the premise that a monolithic business view or 
approach to the issues is not only undesirable but also 
unattainable. Such an approach could lead to an "au- 
tomatic" response on many questions. This would 
serve neither the business community nor the broad 
public interest. Corporations will be better served in 
shaping goals to the public interest by speaking out 
on sensitive issues, by participating to a greater de- 
gree in the political process (in its best sense) and by 
giving attention to the diversity of views so as to de- 
termine the best course for the community or nation. 

Business Must Keep Informed 

Another pitfall that must be avoided is the possi- 
bility of applying our best knowledge and resources 
to the attempted resolution of social problems with- 
out clearly defined goals to justify — and evaluate — 
the investment. 

We must recognize that business is not necessarily 
endowed with divine wisdom in matters of national 
interest, particularly in social areas. 

And we must recognize that if business is to be 
more effective in shaping national goals, it must as- 
sume the responsibility to keep itself informed by 
staying abreast of emerging societal trends. 

In the final analysis, the only basis for an organiza- 
tion's authority in terms of national goals and priori- 
ties lies in performance . . . not only in economic or 
technological areas, but in its total conduct as an in- 
stitution and in its responsiveness to society. The con- 
cept of corporate responsibility — and public ac- 
countability — has broadened considerably. D 



11 




when a male college graduate applies for a job in industry 
he's given an aptitude test. When a female with a degree applies, 
she's given a typing test. A radical feminist declares it's time 
to call a halt to such inequities and forecasts some major changes 
ahead in the relationship between women and big business. 



12 




by Susan Brownmiller 



Some friends of mine and I, encouraged and inspired 
by the women's liberation movement, have been 
thinking of late that the way we'd really like to spend 
the next decade of our lives is in the creation and 
publication of a slick, mass circulation, feminist 
women's magazine. Not only is there a need for our 
product (the philosophy of the existing women's mag- 
azines runs counter to feminism) but, to judge from 
the growing acceptance of feminist ideology, the mar- 



ket is expanding daily. And who is better equipped 
to fill this new need but ourselves? 

Tentatively reaching out into our wide circle of 
acquaintances for topflight womanpower to fill the 
key slots in our proposed corporate hierarchy — truly 
feminist, ours is to be an all-woman venture — we 

Susan Brownmiller is d professional journalist with experience in 
TV and the print media. She frequently writes on politics and so- 
cial problems. She is a member of the New York Radical Feminists. 



13 



made an unhappy yet sadly realistic discovery. 

We had no shortage at all on the editorial side. 
Indeed, our nameless magazine is prematurely wal- 
lowing in editors, copy chiefs, art directors, illus- 
trators, journalists, poets and proofreaders. It also 
boasts a loyal stable of fledgling, though undeniably 
talented, writers willing to work for practically noth- 
ing and who, it appears, have been waiting all their 
lives for just such an opportunity. But while sheaves 
of unsolicited poetry — some good, some not so 
good — find their fragile way into my mailbox with 
engaging persistence (the supply of poetry, alas, has 
always exceeded demand), our determined, hard-core 
nucleus is still minus the critical personnel that can 
make the magazine work. 

Fulfillment found in the arts 

Where is the womanpower on the business side of 
our venture? Where are our eager sales and circula- 
tion managers, our advertising reps, our cost account- 
ants, our "money women" — those who have capital 
to invest or those who know how to raise it? If they 
exist at all, they have not yet made themselves known 
to us. Our project may die aborning for want of 
women who (1) like, and (2) have experience in the 
world of business. 

Practical business experience and a solid enthusi- 
asm for the same are two things that most women 
lack. The former has been systematically denied to us 
by convention; the latter has been sociologically bred 
out of us by the same convention. Shut out of prac- 
tically all financially rewarding and meaningful jobs 
at the managerial and executive level, most of us of 
the female sex have vested business with both cold 
mystery and a kind of tawdriness that we consider, 
in our feminine way, to be rather beneath our dignity. 

It is no accident that an ambitious, career-oriented 
woman (the strictures of our society have allowed 
but a few of these to flourish) almost without excep- 
tion looks to the arts for her fulfillment, seldom to 
the business world. From early childhood a young 
girl is allowed to develop her verbal skills, but not 



beyond the point at which she might become "seri- 
ous" about them, because verbal ability, after all, is 
considered cultured. But mathematical ability, spatial 
relations and shrewdness are considered verboten — 
unfeminine, if you will. 

Competition, the backbone of the business world, 
has long been considered a masculine aptitude. To 
make a "deal," and to wring from that deal highly 
satisfactory terms, must, I am certain, be a delightful, 
gratifying experience. What power one must feel, 
what unalloyed pleasure! Not for women, however, 
are such pleasures encouraged. 

Although I am enough aware of the way the world 
turns to recognize that men achieve real pleasure 
from the actual process of making large sums of 
money (a revelation that came to me secondhand 
when, as a working journalist, it fell to me to inter- 
view on assignment a couple of captains of industry), 
I have yet to meet a woman, either on the job or off, 
who admitted to a similar hankering. (Yes, they do 
exist. Mary Wells, the very successful advertising ex- 
ecutive, comes quickly to mind. I should like to meet 
her some day, I think she may have a lot to tell me.) 

Making money must even be a lot more fun than 
spending money, and making and spending one's 
own money must be a truly giddy experience. Even 
the archetypal female spender of our age, the re- 
doubtable Jacqueline Kennedy Onassis, is missing out 
on half the fun! 

No inherently masculine jobs 

The equation of Money=Power=Masculinity has 
been a preoccupation of the women's liberation 
movement. The implications are staggering. We in 
the movement are pretty much in agreement that 
masculinity, like femininity, is nothing but a well- 
nurtured myth, like Santa Claus. Deductive logic has 
proven to our satisfaction that there is nothing inher- 
ently masculine about any job, from jockey at Aque- 
duct to President of the United States, although there 
are those who would have us believe so. (As I write 
this, a judge of the Federal District Court has just 



14 



ruled that there is nothing inherently masculine about 
McSorley's Old Ale House in New York, either, and 
I suppose it follows for the Harvard and Yale Clubs, 
too, which have barred my sisters and me from lunch- 
eon meetings in their well-appointed rooms.) 

Typewriters dropped in our laps 

Jockeys may not have secretaries, but presidents 
of governments and corporations do, not to mention 
insurance salesmen and junior executives, and there 
is nothing inherently feminine about secretarial work, 
either. In 18th- and 19th-century London all clerks 
were men (remember Bob Cratchit, Tiny Tim's 
father?). And when the typewriter was.fi rst introduced, 
men said it was too complex a machine for women 
to handle. But when they discovered that typing was 
drudgery and women could be induced to do the 
work for less money, the men graciously dropped the 
Smith-Coronas in our laps. 

It takes nothing more than a couple of nights of 
consciousness-raising in a women's liberation group 
to discover that it has been in men's interest, but 
against the interests of women, to keep us believing 
that success, ambition, a good job, high pay, etc., 
were strictly within the masculine province and there- 
fore unfeminine. The fear of losing femininity is the 
most powerful weapon society uses against its 
women, and I intend to write a book about that one 
day soon. I'll let someone else write the companion 
book about masculinity. 

The competitive instinct, that necessary lubricant 
which keeps the wheels of free enterprise spin- 
ning, has been encouraged as a virtue in men in the 
same degree that it has been discouraged in women. 
Women are encouraged to compete for men, but 
never with them — and woe to the woman who seeks 
to break that Gentlemen's Agreement. Worse than 
being called a mutant of her own sex, she is accused 
of seeking to unsey her competitor. How odd it is that 
a nation that professes to value rugged individualism 
and holds competition and free enterprise as dear as 
the flag should seek to deny such opportunity to 



women. In searching for answers to this situation, we 
in the women's movement can only conclude that 
the reasons are twofold — ego and economics. 

To start with the obvious, the matter of equal pay 
for equal work, we have only to cast a jaundiced eye 
at the statistics reported by the U.S. Department of 
Commerce. Across the board, in offices and facto- 
ries, women earn an average of $3,000 a year less 
than men for performing exactly the same work, and 
the gap is widening according to the yearly surveys. 
Women clerical workers earn 67 per cent of what 
men earn; women managers and proprietors earn 54 
per cent of what their male counterparts receive for 
their labors; and saleswomen, the most discrimi- 
nated-against group of female employees, earn 41 
per cent of what their fellow salesmen receive. 

Double standard in paychecks 

Twenty-two million women are employed full time 
in this country. By doing a little simple arithmetic we 
can show that, since each woman is paid $3,000 less 
per year than her male equivalent, American industry 
owes us an aggregate of $66 billion a year. Highly 
profitable, isn't it, having a cheap labor force at one's 
disposal? Should we talk about reparations? 

It's no good throwing up the argument that men 
have families to support and women don't, because 
people are supposedly paid for the value of the labor 
they perform and not for the number of dependents 
they claim on their income tax. A significant 2.7 mil- 
lion women in the work force are husbandless heads 
of families. Not surprisingly, considering how drasti- 
cally underpaid women are, one-third of the families 
headed by working women live below the poverty 
line, which is pegged by the Census Bureau at $3,725 
for a four-member family. (The inability of a woman 
to pull in a decent living wage is a cogent argument 
for marriage, as it turns out.) 

The issues of equal pay for equal work and what 
constitutes sexual discrimination are matters that the 
Equal Employment Opportunity Commission has be- 
gun to tackle, aided and abetted by alert women who 



15 



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are aware of their rights. Thanks to Title Vil of the 
Civil Rights Act, the E.E.O.C. has received a mandate 
to move on women's rights, but enforcement proce- 
dures have not yet been granted. In the past few years, 
however, several landmark court cases initiated by 
women have begun to establish badly needed prec- 
edents. The National Organization of Women 
(NOW) forced the august New York Times to inte- 
grate its help-wanted columns, a major feat in the 
composing room and a boon to female job seekers 
interested in employment more remunerative and 
rewarding than the catchall "Gal Friday." 

Two recent cases won at the Court of Appeals level 
—a tribute to the observation that discrimination dies 
hard— have dealt a telling blow to that blatant bit of 
discrimination cloaked in false chivalry, "protective" 
legislation. In Bowe v. Colgate-Palmolive and in 
Weeks v. Southern Bell Telephone and Telegraph, 
women sued successfully and won the right to per- 
form jobs which required the occasional lifting of 30- 
pound weights, a privilege from which they were 
formerly "protected" by state law. (No state legisla- 
ture ever passed a law forbidding them to lift and 
carry a 30-pound child.) And in New York City, a 
group of female employees at Con Edison won a 
ruling in a state hearing after the company arbitrarily 
set its retirement age at 62 for women and 65 for men. 

Mother or worker- not both 

A case that many of us are eagerly watching is that 
of Mrs. Ida Phillips v. the Martin Marietta Company, 
which the Supreme Court has promised to hear in its 
October session. Mrs. Phillips, a mother of seven, 
was working as a waitress in Orlando, Fla., when she 
read an advertisement in the newspapers that the 
local Martin Marietta plant was ready to hire 100 new 
assembly trainees. The pay and the hours would be 
considerably better than at her waitress job. Dashing 
down to the company's employment office, Mrs. Phil- 
lips was told that she would not be considered be- 
cause she had a child of preschool age. The E.E.O.C. 
ruled in her favor, but Martin Marietta refused to 



budge. That was more than six years ago. Mrs. Phillips 
still works as a waitress. The Government has filed 
an amicus curiae brief in her behalf. 

Discrimination against women always employs psy- 
chological weaponry. Underlying Martin Marietta's 
intransigence, you see, is the unspoken belief that 
Mrs. Phillips couldn't be a good mother if she worked 
at the plant, or that she couldn't be a good assembly 
trainee if she had a child of preschool age to worry 
over. (The child, by the way, went to a local day care 
center.) No one kept Mr. Phillips from a job because 
of his preschool-age child. 

Keep them in their place 

Psychological weaponry is designed to keep 
women in their "place," and that means in the home 
and out of the job market, except when there is a 
sudden need for workers, as during World War 11. 
(Remember the glamour of Rosie the Riveter?) And 
millions of women are encouraged to work part time 
on the theory that part-time work does not interfere 
with home maintenance and child care. They do not 
realize that their part-time work is a great boon to 
corporations, saving them untold millions in fringe 
benefits they would have to extend to full-time 
workers. These working women are so bamboozled 
they think they're lucky to get the fringe-benefitless 
part-time employment. 

I think that women, like blacks, have an abiding 
belief in their own inferiority. They have bought the 
notion, carefully nurtured by men, that because they 
are women they are less valuable human beings, 
somehow less competent. It is a rare woman who 
manages to develop a healthy ego— a prime requisite 
for success in business. Ego in women, unless re- 
stricted to appearance— and then it is called vanity- 
is considered unbecoming. 

A few years ago, 1 was employed at Newsweek 
Magazine as a researcher in the National Affairs De- 
partment and entertained fond hopes of one day 
writing for the magazine. After all, young men less 
qualified than 1 were offered tryouts quite regularly. 



18 



But I was rudely acquainted with the facts of life by 
an insensitive shop steward who blithely told me, 
"Don't you know you girls are hired here to work 
two years and then go off and get married?" I hadn't 
known that. It was a shattering revelation. 

When my two years were up and I had received 
neither a writer's tryout nor a proposal of marriage 
from any quarter, I felt it incumbent upon me not to 
embarrass the magazine any longer, so I quit. 

'\bure pretty lucky for a woman' 

Finding television more hospitable to my knock 
at the door, two years later, after a period of appren- 
ticeship in Philadelphia, I was back in New York, gain- 
fully employed as a TV newswriter for A.B.C. Achiev- 
ing status as a real writer, at long last, did wonders for 
my ego. But hardly a day went by without some fellow 
newswriter saying to me, "You're pretty lucky for a 
woman, to be earning $12,000 a year." As men earn- 
ing a similar $12,000, they did not consider them- 
selves "lucky" at all. Indeed, each considered himself 
to be grossly underpaid and undervalued by the com- 
pany, and had his eye on a producer's job at the very 
least. But I, as a woman, was expected to give daily 
thanks for such heavenly blessing. 

At a spring conference of professional women, held 
at N.Y.U. Law School's Vanderbilt Hall, woman after 
woman got up to report on the psychological discrim- 
ination she had suffered in her chosen field. A woman 
architect was asked on a job interview, "Are you 
really serious about your career?" A woman engineer, 
married and childless, was asked out of the blue in 
the course of her interview, "Do you take the pill?" 
Flustered at the invasion of privacy, she terminated 
the interview by leaving the office. 

It is comments such as these that convince women 
that, at best, they are barely tolerated in the working 
world when they seek to approach it on an equal 
footing with men. Feeling like usurpers, and treated 
as such, how can they turn in an optimum perform- 
ance? How can they dare to try for a higher position? 

As I write these words I remember— painfully— that 



each time I walked into a TV newsroom to begin a 
job, all motion stopped and all heads turned toward 
me as I rolled the paper into my typewriter. Had these 
guys never seen a woman at a typewriter before? 

Whites only, men only, women only 

And then I remember the occasions when, on as- 
signment for The New York Times Magazine, 1 had 
luncheon interviews with men who would suggest 
that we meet at the Harvard or Yale Club. Arriving 
early, I would be swept with undue haste to the tiny 
alcove known as the "woman's waiting room," like 
a carrier of some communicable disease. It usually 
took half the interview for me to recover my equilib- 
rium. 

I have a friend, a lawyer with a prestigious Wall 
Street firm, who was the only member of her firm 
not invited to a special business luncheon at one of 
these collegiate alumni clubs because the dining ■ 
room did not allow the "contaminating" presence of 
women. (Actually, she was invited, and then dis- 
invited with a "You understand, hah, hah. . . .") Whites 
only; men only: conventions of exclusion that damage 
human performance and inspire deep insecurity and 
alienation. 

Most men, I believe, are simply not comfortable 
in the company of women unless the relationship has 
the balance of power clearly delineated, as with sec- 
retaries and wives. And I would venture the proposi- 
tion that the secretary-boss relationship in the office 
is a good deal easier for most businessmen to cope 
with than the marital relationship at home, because 
who gives the orders and who does the bidding, and 
at what salary, is explicitly defined, at work. It goes 
against the human grain to accept subservience 
gladly, but that is the lot of the office secretary, who 
is often as well-educated as her boss, as intelligent 
and as competent. No matter how hard she works at 
her job, which is most often the highest position open 
to her in the company, she can never advance beyond 
her routinized work, except to become secretary to 
a more successful boss. 



19 



When the women's liberation movement reaches 
into the very fabric of American corporate life, the 
classic American secretary, loyal, devoted, efficient 
and glamorous to boot, will be as difficult to come 
by as the classic American domestic worker, and for 
the same reasons. 

The new feminism will force other changes as well 
in big business. 

One of the most consistent demands of the 
women's liberation movement is for the establish- 
ment of day care centers on the premises of offices 
and factories for the preschool-age children of com- 
pany employees. The way the women's movement 
sees it, the facilities ought to be paid for by manage- 
ment but run cooperatively by the parents concerned. 
Universal child care centers are the only way that the 
majority of young mothers may be able to get out of 
the house, and getting out of the house and into the 
larger mainstream of life is precisely what young 
mothers will be demanding. 

Please, no special programs 

We will also be seeing a concerted demand by 
women employees for the inclusion of a host of fringe 
benefits— women's benefits— in company health in- 
surance plans: paid maternity leaves and abortion 
coverage for both married and single women (why 
not?). Blue Cross of Greater New York moved swiftly 
and sensibly in this direction in July when the State's 
new liberal abortion law went into effect. (Was it only 
five years ago that I faced employment applications 
that dared to pry, "Have you ever had an illegal oper- 
ation, and if so, when?"?) 

One consideration that the women's movement is 
not asking, please note, is the establishment of special 
remedial training programs for the female sex similar 
to the rash of guilt-inspired programs set up by corpo- 
rations for minority group members and the hard- 
core unemployed. Our situation is different from the 
black experience in this regard. Unlike blacks, white 
women have not been denied an equal education, 



except at the vocational trade school level (and we 
intend to work on that). We have merely been denied 
the opportunity to put our acquired skills and knowl- 
edge to good use. 

We ask only that existing training programs, junior 
executive trainee spots and open-ended jobs be open 
to all women, black and white, who apply to any com- 
pany. The old truism, "When a male college graduate 
applies for a job, he is given an aptitude test; when 
a female college graduate applies, she is given a typ- 
ing test," must become an outdated principle. 

Can men stand it? 

Will Big Business be able to adjust to the demands 
of the women's liberation movement? A lot, of 
course, depends on men. Men are used to being in 
charge, and history has shown that those in power 
seldom give up their power without a struggle. It's not 
that we expect to replace men with our own female 
supremacist hierarchy, but we do expect that men 
will have to move over or step aside to give us room. 

A mediocre man, and business is full of them on 
the middle-management level, will suffer the pinch 
most sharply. No longer will he be assured of a com- 
fortable berth in the corporate structure, with private 
office, smiling secretary and a tribute of respect from 
the female filing clerks and typing pool. He stands 
to be passed over or displaced ("shot down" is the 
phrase I've heard men use) by topflight women on 
their way up, and he will be under continual assault 
from equally mediocre women who are perhaps a 
shade more aggressive, more sociable or better con- 
nected. Mediocre women have a right to equal treat- 
ment, too! 

The burdens of adjustment will fall on men. We 
women are ready, willing and able to move forward, 
and we have been for some time. If we step on your 
toes, don't expect us to say "pardon." The anger is 
boiling over in us. We've been watching our step for 
too long. We're putting our own interests up front 
at long last. D 



20 



Teachers 

and 

Technology 



An 

Impotent 

but 

Promising 

Partnership 



by 

Sterling M. McMurrin 




Electronic and 

other technological 

innovations, long 

established in industry, 

are still in the horse- 

and-buggy days at 

school. With so much 

potential to improve 

education, what's 

holding things up? 



Technology has been in the classroom for a long time. 
Picture projectors are nothing new, nor are simple 
communication and amplification systems. Records 
and audio tapes are common. But for the most part 
instruction proceeds with the original tools— books, 
pencil, paper and chalk. 

The new and more sophisticated electronic tech- 
nology that has come cautiously upon the educa- 
tional scene over the last two decades could radically 
transform the character of instruction and revolution- 
Mr. McMurrin is E. E. Ericksen Distiriguished Professor and Dean 
of the Graduate Schiool in t/ie University of Utah. He was United 
States Commissioner of Education in tfie Administration of Presi- 
dent lot)n F. Kennedy. He is chairman of the Federal Commission 
on Instructional Technology and directed the project on innova- 
tion in education of the Committee for Economic Development. 



ize its effectiveness. It could, that is, if we don't repeat 
the mistakes of the past, and if education, industry 
and government can form the partnership necessary 
to exploit the possibilities. This is a large task and its 
success depends on some fundamental changes in 
our habitual ways of treating educational problems. 
By the "new" technology, I mean such instruments 
as television, instructional programs, computers and 
electronic systems of information storage and 
retrieval. This technology also includes such tele- 
communications techniques as the Bell System's hol- 
ography, which converts computer data into three- 
dimensional graphs and pictures. When viewed 
against the possibilities offered by these instruments, 
it is apparent that technologically today's schools are 



21 



just emerging from the horse-and-buggy age. 

The signs, fortunately, indicate that education is 
beginning to move on the technological front. Over 
the next two decades, schools may enter the "new 
era" and begin to reap the benefits already enjoyed 
by such industries as transportation and communica- 
tions. Those benefits, we may hope, will include the 
capacity of the schools to bring all children to at least 
minimal standards of verbal and mathematical com- 
petence. Technology might enable educators to raise 
the quality of instruction in those cognitive areas per- 
taining to knowledge and knowing, and also in mat- 
ters pertaining to the affective life — emotions, pas- 
sions, moral and aesthetic sensibilities. 



But the conditions and responsi- 
bilities of education now demand 
a large investment in innovations 
that v^ill be adventurous 



Education must succeed in its share of the pressing 
task of bringing the disadvantaged into the main- 
stream of American life. At the same time the schools 
must satisfy the demands which we properly make 
upon them to improve the quality of personal and 
social life generally. To achieve this dual objective, 
educators cannot continue to do the same old thing 
in the same old way. 

There is much in the traditional educational prac- 
tice that must be preserved. An example is the ideal 
of personal rather than mechanical relationships be- 
tween teacher and student. But the conditions and 
responsibilities of education now demand a large 
investment in innovation that will be adventurous 
enough to discover and exploit every possible instruc- 
tional value that is latent in the technical instruments 
which are now available or will become available in 
the future. More than anything else, what is needed 
is a disposition on the part of educators to try the 



new that is promising as well as preserve the old 
that is proved. 

Instructional technology involves more than simply 
the mechanical and electronic instruments that may 
be employed as means for the achievement of class- 
room or laboratory goals. The entire complex of ele- 
ments which enter into the instructional process is 
involved; from the teacher, methods and materials 
employed by him, to the architectural pattern of the 
school as it affects the character and effectiveness of 
learning. Much of the failure that attended past uses 
of conventional audiovisual aids resulted from their 
employment as gadgets. They were employed to aug- 
ment the teacher's efforts in his role as a dispenser 
of information — a kind of frosting added to but not 




22 



integrated into the basic instructional effort. 

The effective use of both conventional and new 
technologies depends in large measure on the devel- 
opment of instructional systems that relate all ele- 
ments of technology in such a way that they become 
integral to one another, to the subject matter at hand, 
and to the teacher and his long-range purposes and 
short-range goals. Unless this is done, and done far 
more effectively than in the past or at present, the 
schools will continue to fail to adequately exploit the 
potential values of technology. 

The development of such instructional systems in- 
volves updating and, in many instances, radically re- 
forming teacher education to produce a generation 
of instructors competent to succeed in the new for- 




mat of instruction. It requires differentiated instruc- 
tional personnel and functions, including technicians 
and paraprofessionals as assistants, which in turn 
require differentiated preparation and pay scales. It 
calls for instructional resource centers and the tech- 
nical competence to use them effectively. And it 
means a closer involvement of schools with homes, 
including in countless cases the education of parents 
in order to achieve the kind of home environment 
and cooperation essential to school success. 

The schools should begin now to prepare for the 
not too distant time when our communications tech- 
nology will more adequately relate learning in the 
home to learning in the school. Already it is apparent 
that audio and video tapes as well as records will shut- 
tle between the school and home as books do now. 
Telephonic connections between the home, school, 
library, regional and central knowledge banks and 
educational program centers may eventually be as 
common as telephone contacts between teenagers. 

There has not yet appeared an 
adequate corps of producers 



The development of "hardware" has far outdis- 
tanced the development of "software" — programs 
and materials — available for use with the instructional 
equipment. Indeed, this is one of the causes of recent 
failures in the field and of the present caution found 
in many educators. The shortage of program materials 
is due in large part to the lack of funds available for 
producing a product for which there is not a guar- 
anteed market. Also, even with limited cooperation 
between education and industry, there has not yet ap- 
peared an adequate corps of competent producers. 
The software shortage will not be overcome until 
there is a massive national effort, with adequate fi- 
nancing from commercial and governmental sources, 
to tap the educational possibilities of both the new 
and conventional technologies. 



23 



The comparative success on the hardware side re- 
sults from large industrial research and development 
resources, including an abundance of competent 
scientists and engineers in the appropriate fields. 
Another reason is that instruments developed for 
other purposes are often simply adapted, albeit some- 
times unsuccessfully, to instructional uses. 

The production of instructional materials for use 
with, say, television or computers, involves bringing 
the methods and techniques of learning into effective 
relations with the curriculum. And the design of the 
curriculum includes a comprehension of available 
and relevant knowledge and a grasp of the long-range 
purposes of education, as well as the immediate goals 
of instruction. Decisions on course materials cannot 
be made in indifference to the methods and technical 
means of learning and teaching, as ends cannot be 
realistically determined independently of the means 

It would be a grave misfortune if 
the field of instructional technology 
were to advance without purposes 



of achieving them. Therefore, the job of generating 
materials must involve an effective working arrange- 
ment with media and communications technicians, 
teaching experts, specialists in the art of learning 
(especially educational psychologists, anthropologists 
and sociologists), subject matter experts and educa- 
tional philosophers. 

To say the least, this means large-scale teamwork 
and a command of experimental and developmental 
resources as well as access to essential research find- 
ings. The funding necessary to such an enterprise is 
beyond the capability of single school districts, single 
universities, or even of many individual states. Only 
a nationwide approach is likely to succeed. 

It would be a grave misfortune if the field of in- 
structional technology were to advance without a 



serious effort to define the large purposes of educa- 
tion and the related proximate goals of instruction. 
The price of neglect at this point could be, first, the 
failure to develop techniques capable of yielding the 
desired results, and second, the failure to define pur- 
poses and goals in accordance with genuinely humane 



As presently structured, education 
is a labor intensive industry, so 
economies may sometimes occur 



ends. This last point is important, for any society 
which functions with an advanced technology runs 
the risk of eventual domination by that technology, 
if the society is careless. 

Needed is an investment of talent and energy in 
the problem of values commensurate with the invest- 
ment in technological inventiveness and technical 
development. More attention must be given to edu- 
cational purposes and the objectives of instruction. 

The introduction of technical instruments into the 
school should not be motivated primarily by an inter- 
est in fiscal economies, but rather by the expected 
increase in educational effectiveness. As presently 
structured, education is a labor intensive industry, so 
economies may sometimes occur. At other times, 
however, the technology may be more expensive. 
Thefuture in this regard depends upon such matters 
as the impact on price of mass production, the devel- 
opment of simple and less expensive instruments to 
do work now done by those adapted from nonin- 
structional fields, and the possibilities of personnel 
deployment to effect savings. But if genuine advances 
in education are to be made by way of technology, 
the approach should be in terms of the quality and 
effectiveness of instruction first, with this weighed 
against the actual costs. Most research and experi- 
mental programs may be expected to be expensive. 

One of the values of technology in the school is 



24 



that it frees the teacher's time to enable him to devote 
more attention to the interests and needs of the in- 
dividual student. This is usually possible if the teacher 
has proper technical assistance. At the same time, 
most of the instructional instruments themselves can 
be employed by the teacher and student to individ- 
ualize the student's program. In many ways, through 
the use of video and audio tapes, computerized pro- 
grams, and telephonic communications systems, the 
student's studies can not only be tailored to his per- 
sonal needs and interests but can also be pursued at 
his own rate and convenience. The benefits apply 
equally to students in elementary, high school, col- 
lege, graduate or professional school. It is in this 
power of individualizing instruction that technology 
should pay off most effectively. It is here that tech- 
nology should play its largest role not only in improv- 
ing the quality of instruction but in achieving some 
measure of educational equality. 

Numerous other values of technology can be iden- 
tified. These include moving pictures, television and 
telephones to bring the great teachers and great 
thinkers of the world into any classroom; visual tech- 
niques to provide close-ups of scientific demonstra- 
tions; programmed computers to enable the student 
to perform at a keyboard and screen the experimental 
operations belonging to a science laboratory. Special- 
ized equipment now available for the handicapped, 
in some instances, works wonders in achieving what 
was impossible by any other means. Noncommercial 



Properly structured, technology 
should help to humanize classrooms 



television is proving to have remarkable capacity to 
capture the interest of the preschool child in prepar- 
ing him for more effective schooling. 

There are obvious problems to be encountered in 
instructional technology. No one wants to dehuman- 



ize the classroom by preventing or destroying genu- 
ine personal relations among students and between 
teacher and students or by permitting machines to 
determine the goals to be pursued. Properly struc- 
tured, where the teacher is the master of the ma- 
chines, where the machines function as slave devices 
in the service of both teacher and students, technol- 
ogy should help to humanize classrooms. Today these 



Those business managers who enter 
the education industry should 
recognize the large responsibility 



classrooms often are not as personal as both educa- 
tors and public like to believe. 

There has been some tendency for school districts 
to acquire expensive equipment which they are ill 
prepared to use competently. They are sometimes 
victims of their own erring judgment, and sometimes 
victims of irresponsible but highly effective sales rhet- 
oric. There is evidence now, however, that the 
schools are becoming more sophisticated in their 
investments, and business more responsible in its 
marketing approach. Those business managers who 
enter the education industry should recognize the 
large burden of public responsibility which rests on 
them to pursue their profits only by contributing to 
the genuine improvement of education. 

The successful application of technology to the 
classroom, with the improved teaching and learning 
resulting from such a union, is clearly needed. 
Whether education will, in fact, benefit from tech- 
nological aids as business and government have bene- 
fited depends entirely on education, business and 
government. If they are willing to work together as 
responsible partners in an essentially civic venture, 
there are no bounds to the benefits technology can 
bring to the school. D 



25 



Bell 
Reports 



Ceramics with a "Memory" 

Bell Laboratories scientists are inves- 
tigating the properties of a ferroelec- 
tric ceramic "sandwich" through 
which information can be projected 
on a screen like a slide, but which has 
the added capability of being elec- 
tronically erasable and allowing new 
information to be added. 

Called ferpics (ferroelectric ceramic 
picture devices), their development 
was first announced by Sandia Corpo- 
ration. Ferpics images can be viewed 
directly by placing light-polarizing 
sheets over them, or on a screen by 
employing a standard projection sys- 
tem using polarized light. 

Bell Labs is exploring the device in 
hopes of obtaining low-cost, efficient, 
solid-state information displays with 
features not now available in display 
systems. 

TWX Service Sale Approved 

The Federal Communications Com- 
mission has cleared the way for the 
final sale of the Bell System's TWX 
(teletypewriter exchange) service to 
Western Union for payment of about 
$85 million. The transaction had been 
discussed by the two companies as 
early as 1943. 

Under terms agreed to by the 
parties. Western Union will acquire 
some 42,000 teletypewriters and asso- 
ciated central office equipment. 

Not included in the sale are about 
100,000 teletypewriters used by Bell 
companies for private line services. 
AT&T will continue to handle Data- 
Phone'* and various private line ser- 
vices carrying both voice and data 
communications. 

Annual revenue from TWX service 
—which carries about 50 million mes- 
sages yearly — amounted to approxi- 
mately $80 million for AT&T, about 



one-half of one per cent of total rev- 
enue. AT&T will retain 40 per cent 
of this revenue as it continues to sup- 
ply facilities to transmit and switch 
TWX service. 

Telephone Supermarket Opens 

In a 12- to 18-month trial, some 2,000 
high-rise apartment dwellers in the 
suburban Florida community of Hal- 
landale will be able to select tele- 
phones in a "phone center" in the 
same way they select food from the 
local supermarket. 

Because the customers in the trial 
area live in prewired dwellings they 
can pick a phone of their choice from 
the phone center, carry it home and 
plug it into "jack" outlets. 

This will permit customer orders to 




Al Bell Laboratories, Andrew Dienes and 
Charles V. Shank demonstrate the range 
of colors— from near ultraviolet to yellow 
-that can be created from a new dye laser 
called an excip/ex laser. Devised by Dienes, 
Shank, and Anthony M. Trozzolo, the new 
laser may become an ideal laboratory 
tool lor investigating the interaction of 
light with various forms of matter. 



be filled in minutes, at lower cost and 
only after the customer has seen and 
tried the telephone he or she desires. 
Other "supermarket" trials are 
scheduled in Milwaukee later this year 
and in Phoenix in the near future. The 
Milwaukee trial will involve garden 
apartments; the Phoenix test will be in 
a development of one-family houses. 

A Novel Conversion 

A New York telephone exchange be- 
came famous when it was used as the 
title of a famous novel by John O'Hara 
in 1935. Years later, the novel became 
an equally famous motion picture 
which earned its female lead her first 
Academy Award. 

Know the exchange? It's Butterfield 
8, which has been serving residents of 
Manhattan's upper East Side since 
1926. 

On June 27, Butterfield 8 achieved 
yet another measure of fame when it 
was converted to electronic switching. 
The new equipment, which is part of 
the New York Telephone Company's 
multi-billion dollar expansion and im- 
provement program, can handle some 
20,000 lines with a future capacity 
to double that. 

The Academy Award-winning ac- 
tress? Elizabeth Taylor, of course. 

W. E. Manufactures Antiques 

Western Electric, which makes mil- 
lions of sophisticated micro-minia- 
turized solid-state components for the 
Bell System each year, is also busily 
engaged in turning out some 175,000 
vintage design electron tubes annually. 
Not intended for museum collec- 
tions, these old designs — in 74 
varieties — are made to fit equipment 
dating back as far as World War I. 
Most of this early-design communica- 
tions equipment is in operation in 



26 



rural parts of the United States and in 
countries such as India and Australia. 
Why should a manufacturing 
company known for its progress in 
producing some of the world's most 
sophisticated electronic components 
bother with vintage tubes? Because, 
the company says, it has a reputation 
for service to live up to and it is not 
about to abandon purchasers who re- 
lied on its early products. 

Aluminum Cable System Ready 

AT&T engineers. Bell Labs scientists 
and Western Electric supply and man- 
ufacturing experts have reached the 
point where they can offer Bell tele- 
phone companies a new field-tested 
aluminum cable system — at a price 
considerably less than existing copper 
systems. 

The newly developed aluminum 
cable system involves a specially man- 
ufactured wire, a greatly improved 
sheath, new splicing methods and it 
employs polyethylene as an insulating 
material. 

During the past decade events have 
doubled the price of copper. Demand 
has been continuing to rise, and cop- 
per traders anticipate no appreciable 
price break. 

In view of this, the Bell System has 
had under way for some time a project 
to develop a viable alternative for 
some of the 260,000 tons of copper 
the System uses annually. The new 
system is the result of that effort. 



From out of the Past 

A telephone system first produced 88 
years ago is helping struggling Mkar 
Christian Hospital survive in the grass- 
lands of the Jos Plateau in Nigeria. 

The hospital, which is stretched out 
for a mile along a dirt road, needed 



a communications system to replace 
its antiquated messenger system which 
was wasting staff time when lives were 
at stake. The problem: no power and 
no funds. 

Bell System engineers at Western 
Electric's Hawthorne Works in Chi- 
cago, members of Hawthorne's Medi- 
cal Equipment Development Club, an 
organization that devotes personal 
time to solving medical engineering 
problems, heard about the problem 
and found the answer. They reached 
back to the first telephone made by 
Western Electric for the Bell System — 
the magneto phone. 

The phone's crank activates an inner 
magneto and produces an electrical 
surge that rings the other phones in 
the system. Batteries provide the 
power for voice transmission. The sys- 
tem, ideal for Mkar because of its low 
power needs and ease of installation 
and maintenance, has been operating 
successfully since early this year. 



Employee Overcomes Disability 

James Laurence Caldwell is living 
proof that the human spirit, through 
all its failings, is indomitable. 

In 1962, Caldwell was 25 years old, 
a big, handsome man looking forward 
to a career in mechanical engineering. 
Then one day an outdoor barbecue 
grill exploded as he was lighting it. 
While recovering from the accident, 
other medical complications set in, 
resulting in his being blind for life and 
unable to walk again. 

Today, Caldwell is a computer pro- 
grammer at C&P Telephone Company 
group headquarters in Washington, 
D.C. He is happily married and has 
been selected as the National Rehabil- 
itant representing 2.5 million disabled 
Americans helped by the Rehabilita- 
tion Services Administration of the 




Mr. Caldwell 

Department of Health, Education, and 
Welfare. 

The award signifies Caldwell's 
determination to overcome blindness 
and paralysis and typifies the courage 
of handicapped people who fight their 
way back to a normal life. 

New Pacemaker Uses Heart Power 

An experimental pacemaker that gen- 
erates electrical signals from the en- 
ergy produced by changes in blood 
pressure is under development at Bell 
Laboratories. 

The new device offers hope that the 
thousands of people who have pace- 
makers implanted in their bodies may 
be able to avoid the need for periodic 
surgical replacement of the batteries 
that power conventional types. 

The new pacemaker utilizes piezo- 
electric discs, which produce electric- 
ity when subjected to pressure. 
Although its feasibility has been dem- 
onstrated, more work must be done 
before it can be tested on humans. 



27 



You've Come A Long Way, Baby 





A factory, by definition, is a 
building or buildings in which 
things are manufactured. 
Whether the people in them 
produced textiles in Providence, 
automobiles in Detroit or steel 
beams in Birmingham, the build- 
ings seemed, until fairly recent 
times, synonymous with sweat, 
grease, grayness and grime. Sim- 
ilarly, the early environments in 
which telephones and associ- 
ated communications equip- 
ment were constructed were not 
the sort of settings to induce 
handsprings of happiness from 
today's industrial designer. 

But if yesterday's factory 
milieu was one of drudge and 
dreariness, today's is a kaleido- 
scope of cleanliness and color. 

The photos on these and the 
next two pages show Bell System 
people making telephones at 
Western Electric's Indianapolis 
Works. The big plant is no longer 
among the company's newest. 
But because of the many, multi- 
hued instruments in production 
there, and the fresh, zesty look 
of the ladies on the job, the Indi- 
anapolis style remains represen- 
tative of factory life in W. E. — 
busy, bright, beautiful. D 




29 






30 




r 



"9^ ■.>%;^ 




Business Service 
and Society 

Excerpts from recent talks by Bell System officers 



"Telephone people are different. We 
are set apart from the generality of 
people by a calling with an unusual 
purpose. Our corporate intent is 
unique. We deal not with a product 
but with a service. And the service we 
offer the public is not trivial or just 
convenient. It is vital. It is no exaggera- 
tion to say that communication is one 
of the highest human values and that 
the telephone business is its hand- 
maiden. 

So it ought to be easy to unite be- 
hind the goals and objectives of our 
business. We're not selling machines 
or equipment. We're not selling soap 
flakes or razor blades. We're furnish- 
ing communication — intelligent ex- 
change of ideas and ideals between 
person and person. 

A current series of our advertise- 
ments has this theme: Communication 
is the beginning of understanding. 

Understanding is the power that can 
control modern technology. It is the 
power that can give our world back to 
people. 

I'm proud— as I'm sure you are— to 
be part of a business that has a high 
purpose and a determination to under- 
stand and act in the interest of the in- 
dividual." c. L Brown 
President— Illinois Bell 

". . . In reaching a million employees, 
the Bell System has created well over 
100,000 new jobs in the past five 
years compared with 7,000 during the 
previous five years. Additional hun- 
dreds of thousands of persons have 
been interviewed overthissameperiod 
in the search for sufficient numbers 
of qualified people. 

About half of all new employees live 
in big cities, many of them in inner- 
city areas. And we will continue to 
reach into the inner city for a good 
share of our new employees. 

During the Seventies, the Bell System 



will hire many thousands of people. 
As these new employees join ourranks, 
the age balance will swing more and 
more toward youth. 

. . . The needs of our fellow citi- 
zens—particularly those of the central 
cities — have never been so urgent. 
Poverty, ignorance and racial preju- 
dice beget more poverty, ignorance 
and prejudice. And so the cycle goes. 
And along the way, other problems 
foment— such as crime, drug addiction 
and a wholesale copping out on life. 

. . . Today, we hear a lot of talk about 
the generation gap. But we don't hear 
very much talk aimed at bridging that 
gap. We may be side-by-side with 
young people on the elevator, in the 
company cafeteria, or on the job. But 
if we don't learn to talk with young 
people on a person-to-person basis— 
rather than as someone in the hierarchy 
talking to a novice— then we will never 
bridge that gap. 

... In this business of ours, in which 
providing excellent service is not easy 
under the best conditions, we don't 
have room for gaps of any description, 
be they generation gaps, communica- 
tion gaps, or equipment gaps. 

It seems to me that some of the dif- 
ficulty in communicating with young 
people stems not so much from the 
difference in our years as from a fun- 
damental difference in our experi- 
ences. Our young people were reared 
on generous portions of television. And 
for many of them, their only diet defi- 
ciency was in responsibility. 

. . . That 'dear Depression' of ours, 
as our young people call it, was rough. 
But it strengthened us. And we needed 
that strength through World War II 
and for the tremendous Bell System 
service drive following the war. 

We are people who have brought 
this great industry of ours to its pres- 
ent level of excellence. . . . And we 
have reason to take pride in that 



. . . But consider the work which is 
yet to be done. 

While we Pioneers have worked 
hard in the inner cities of some large 
urban areas, in others we have scarcely 
soiled our hands— have yet to make a 
meaningful contribution. 

Consider also the growing menace 
of drug addiction. How many Pioneer 
programs do you know of which deal 
effectively with this problem in the 
areas of preventative education, coun- 
seling or rehabilitation? 

And what of the menace of pollu- 
tion—the fouling of our air, our water- 
ways? Can't Pioneers help through 
clean-up projects and through pro- 
grams of education? 

You may ask— How can we do it all? 

Obviously we can't. But we can do 
very much more than we are now do- 
ing—particularly by marshalling the ef- 
forts of our younger employees as well 
as those of all Telephone Pioneers. 

. . . Throughout the Fifties and the 
Sixties, government, business, labor, 
the church and a long list of commu- 
nity organizations failed to resolve the 
problems besetting our cities. 

These problems have become so 
serious that we can fail to resolve them 
no longer. The Seventies must be dif- 
ferent. . . ." Robert D. Lilley 
Executive Vice President— AT&T 

"Our immediate task ... is one of 
renewal— a renewal not only of our 
cities and our landscape, but the re- 
newal of that dream we inherit with 
our citizenship— the dream of a land 
where a man enjoys his unalienable 
right to life, liberty and the pursuit 
of happiness. 

Can we do that? Can we, for exam- 
ple, guarantee the right to life in a land 
that is suffocating under layers of foul, 
polluted air? Can we guarantee liberty 
in a land where blacks and Indians and 
Spanish-speaking people— citizens all— 



32 



are still denied full and free access to 
opportunity? Can we guarantee equal 
individual freedom to pursue happi- 
ness, given the inequities in education, 
in employment, in housing, in the 
courts and elsewhere? 

This, I think, is what we have to de- 
cide. And we can either elect to renew 
the dream, or forget it. But let us not 
lie to ourselves anymore. We have had 
a surfeit of big words. What is needed 
now are big deeds and, above all, a big 
dream. 

This is what the young are saying to 
us: 'Give us a vision. Give us a dream.' 

And I think we must. For a people 
without a dream are a people on the 
high road to dissolution, degeneracy 
and despair. The greatest nation will 
always be the one with the greatest 
dream. And I believe that the Ameri- 
can dream is greatest still. But we have 
drifted from it a long, long way. We 
must get back to it; we must revive 
it and make it real. Either that, or we 
must stop pretending that it is still our 
dream. . . ." 

Alfred W. Van Sinderen 

President—Southern New England 

Telephone 

"Consider that in the year 1969, 
Pacific Telephone's employee force 
grew by some 6,000 people. To gain 
those 6,000 people, we interviewed 
some 300,000 and, taking turnover 
into account, actually hired about 
30,000. 

When you're talking in terms of 
such numbers, it becomes easier to 
understand that occasionally there is 
a slip. 

Like the Directory Assistance oper- 
ator, for example, who was asked for 
a number for 'Theater Arts.' 

There was a pause while she 
searched the records. Back she came 
regretfully: 'I am sorry, but I can't find 
a number for Theodore Arts.' 



'No, no, no!' the customer shouted, 
'I want Theater Arts. THEATER ARTS!' 

'Well,' the employee answered, 
badly shaken by the irate customer, 'I 
didn't know you spelled Theodore 
T-H-E-A-T-E-R.' 

And once in a while one of our men 
can cause a problem. 

An angry woman called a manager 
and complained about the language 
used by a foreman while he was work- 
ing in her backyard. 

'Why, I never heard such terrible 
swearing,' she said. 

The boss promised to investigate 
and sent for the profane foreman. 

'Well, boss,' he said, 'I was a little 
upset when that new cable splicer 
spilled hot lead on me from the over- 
head line.' 

'Oh, I see,' the foreman replied. 
'Tell me, what did you say?' 

'All I said was: Oh, pshaw! Son, you 
are spilling that hot lead, and most of 
it is going down my neck.' 

Needless to say, it was good to hear 
that the foreman had acted with such 
calmness, courtesy and restraint." 

Jerome W. Hull 
President—Pacific Telephone 

"If industry has caused some of our 
environmental problems today — and 
I think we'd be kidding ourselves to 
say it didn't-it's a result of our efforts 
to respond to the demands of the pub- 
lic. Historically, I believe, the public 
has asked only one thing of business: 
Create a higher standard of living, with 
better and cheaper products and with 
more pay for its employees. None 
seemed to care much about what hap- 
pened to the environment. 

There's no question that we in the 
United States have an unparalleled 
standard of living, and much of the 
success of our country can be traced 
to inventive and dedicated business- 
men. There's also no question, unfor- 
tunately, that this has been achieved 



to some extent at the expense of our 
national resources and has deprived 
us of some of our human needs and 
rewards. 

Now the public is saying they have 
a second priority. In addition to a good 
standard of living, they want to pre- 
serve and improve the quality of life. 
And they seem to be willing to give up 
a little of the first to get more of the 
second. In effect, that's what will have 
to happen. 

. . . Businessmen working under our 
system can find the answers to envi- 
ronmental problems when they are 
asked to. There's no question that we 
are now being asked to. 

The technology to control the efflu- 
ent that comes from manufacturing the 
goods and services that people need 
is being developed quickly. Already 
new plants are being built which 
promise to eliminate the pollution tra- 
ditionally associated with their proc- 
esses. I think you'll see that very soon, 
more and more industries will be able 
to pull themselves into the 'clean' 
column. 

There's a real advantage waiting for 
the growing area which has someone 
keeping up to date on the progress of 
the industries which are learning to 
bring their pollution under control. 
These industries will be in demand as 
'clean' industries, and they can be a 
major asset to the areas which are able 
to get them. 

Many cities courted disaster— then 
found themselves in a shotgun wed- 
ding with it— because they had no plan 
for growth. They sprang up helter- 
skelter, then woke up to find massive 
transportation, water, sewage and 
every other kind of problem imagin- 
able. Woe to the city planners who 
started 10 years too late to bail the city 
out. ..." D 

R. K. Timothy 
President— Mountain Bell 



©AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N. Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

Washington, D.C. 
Permit No. 43083 



Moving? Changes of address for persons on 
ihe licit Telephone Mjf-azine complimentary 
list should be brought to the attention of the 
Circulation Manager, Hell Telephone Magazine, 
Room 826, American Telephone & Telegraph 
Company, 195 Broadway, New York, N.Y. 10007. 
Please include the mailing label from this issue. 



Printed in U.S.A. 



-\f' 



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001600605681 013313159999 

LIBRARIAN PERIODICAL DEPT 
KANSAS CITY PUB LIBRARY 



KANSAS CITY 



MO 



64106 






Blind Youngsters Run Track, 
Thanks to American Voluntarism 



November/ December 1970 

BELL 



telephone magazine 



■■■>ttMj^a^jt35Wi)5a^^.3;j^,Tifi^giyj^^ 



it'^tllLlAU^&^Sl^UEt'^ '> 









Making 
The Image 
Real 



An unedited 
exchange of letters 
between a customer 
in Phoenix and an 
AT&T officer in New York, 
which says much about 
the people and 
the policies 
of this business 



Mr. H. I. Romnes, President 
American Telephone & Telegraph 
Corporation 
195 Broadway 
NewYorl<,N.Y. 10007 

August 26, 1970 

Dear Mr. Romnes: 

As a stockholder and sometime critic 
of AT&T, I thought you might enjoy 
an unabashed love letter concerning 
three of your Phoenix, Arizona, 
employees: Marketing Staff Supervisor 
George B. McCarn, Employment 
Manager M.J. Lathrop and Mrs. Audrey 
Lane in the Personnel Department. 

When my husband and I received 
our letter telling us that Mr. McCarn 
would be visiting us as your repre- 
sentative, I must say I felt a little 
apprehensive for him, for I had been 
adding to a little list of areas wherein 
I felt AT&T should do better. High 
on the list was the hiring of the 
disadvantaged. But your Mr. McCarn 
has a talent for disarming critical 
stockholders, and after his visit we 
felt AT&T was making progress in all 
the areas that concerned us. 

Of course, it's one thing to project 
a good image; it's another to make 
the image real. A few weeks later, 
Mr. McCarn's goodwill image was 
tested. Over the years I've been 
working with a remarkable Negro 
lady, Mrs. Jessie Jacobs, who, in 
addition to her own children, has 
adopted or helped raise about 20 
others - all the while working as a 
domestic. Uneducated herself, she is 
determined that all these children 
who have capability will go to college. 
(One child is mentally retarded, 
but Mrs. Jacobs has done wonders 
here, too.) In addition, she has two 
Brownie groups, heads her church- 
school primary department and is 
on the board of several Negro civic 
groups. But best of all, she believes 
that bridges can be built between 



black and white communities if 
enough people try — a belief that has 
been rather cruelly challenged of late. 
At any rate, when I learned that two 
of her girls, Ella Listenbee and Amelia 
Jones, needed jobs to complete their 
college education, I called Mr. McCart 
The girls were eminently qualified. 
Amelia had four years of college, 
lacking only her practice-teaching 
credits, and Ella, just 17, had finished 
one college semester and two semes- 
ters of the Upward Bound program. 

Mr. McCarn did not fail me. Shortly 
I was talking to Mr. Lathrop, who 
couldn't have been pleasanter or ; 
evidenced greater interest. He told i 
me to have Mrs. Jacobs make ■ 

appointments for the girls with 
Mrs. Audrey Lane. Here I have only ; 
Mrs. Jacobs' testimony, and 1 mustsai 
that was ecstatic. As far as Mrs. Jacob, 
is concerned, Mrs. Lane is, without 
exception, the nicest person she ever 
met - courteous, thoughtful, alto- 
gether charming, Amelia went to wo 
within the next few days, and my 
reports are that she is doing very we! 
loves her job and is considering ma 
ing AT&T, not teaching, her career. E' 
will see Mrs. Lane in early Septembei 
when part-time employees are hired 
and has great expectation of working 
while she attends Phoenix College. 
But my gratitude is for more than 
the girls - there I think both they am 
AT&T stand to gain. What these thre 
Mr. McCarn, Mr. Lathrop and Mrs. 
Lane, did to rekindle the faith of om 
very courageous black woman mear 
everything to me — and, in a small 
part, I think, to our country. In a woi 
the Ketchams are very glad that 
Mr. McCarn came to call for AT&T 
Sincerely, 

Blanch B. Ketcham 

cc: Mr. R. K. Timothy, President 

Mountain Bell 

931 -14th Street 

Denver, Colorado 80202 



rs. Philip W. Ketcham 
i29 West Wiishire Drive 
loenix, Arizona 85007 

September 3, 1970 

ibrMrs. Ketcham: 

Frankly, neither Mr. Romnes, nor 
;y of us at AT&T, receives a great 
liny love letters. I do wish to reply to 
> urs, because I find it gratifying. 

We have for years now pursued 
colicy of equal employment oppor- 
tiity throughout the country and have 
it it was being successfully imple- 
rmted.Butyetyou so frequently read 
ti hear the comment that high-level 
1 licy may be fine, but it is frequently 
rt adhered to when you look further 
c wn in the organization. 

That is why it is so gratifying to 
k:)W that in Phoenix, Arizona, 
^s. Lane, Mr. McCarn and Mr. 
Lhrop really know what "Affirmative 
/'ion" is all about and that they take 
ii leasantly and expeditiously. 

'our comment on the hiring of the 
d advantaged prompts me to think 
tit you would be interested in know- 
ii thatasof June 30, 1970, there were 
1 ?75 Bell System employees 
e ployed under the National Alliance 
lusinessmen program for hiring the 
d idvantaged. This was 136 percent 
he commitment the companies had 
rf Je to NAB. It is also pleasing to us 
tl our retention rate is appreciably 
a ve that experienced in the total 
n onal program. 

«'hen I read about a Mrs. Jacobs 
ai our three Phoenix employees, and 
a anch Ketcham and her concern, I 
f( feel better about our country. 

lank you again for a most 
hi twarming letter. It was gracious 
01 3u also to send a copy to 
M Timothy. 

Sincerely, 
RertD. Lilley 
p :utive Vice President 
'Ir. Timothy 



BELL 

telephone magazine 



VOLUME 49 NUMBER 6 



NOVEMBER/DECEMBER 1970 



Corporate Accountability— 
To Whom and for What? 

by Richard Borwick 

An authoritative compendium of Washington-based personalities 
and pressures dedicated to broadening the goals of big business, 
with recommendations as to how business might best respond. 



Voluntarism Is an American Habit 

by David R. Maxey 

Volunteers rush in where government and private enterprise 
sometimes fear to tread, and society benefits because they do. 



A Telephone Boutique 16 

A photo feature of an experimental marketing venture in Florida 
where customers pick phones, like cereal, off the shelf. 



To Manage Tomorrow 20 

by Henry M. Boettinger 

A report on corporate planning, both good and bad, with some 
colorful analogies to military planners, good and bad, and why 
the good ones, corporate or military, usually win. 



The Bell System's Role in 

Data Communications 26 

by William M. Eilinghaus 

Data communications is blood brother to voice communications, 

and Bell companies stand ready, willing and able to serve both needs best. 



Bell Reports 

On the inside back cover, a summary of significant developments 
in communications. 



H. I. Romnes, Chairman of the Board 
and President 

)ohn D. deButts, Vice Chairman 

Robert W. Ehrlich, Secretary 

John J. Scanlon, Treasurer 



Tim Henney, Editor 

Al Catalano, Art Director 

Donald R. Woodford, Managing Editor 

Robert A. Feinstein, Associate Editor 

Marco Gilliam, Associate Editor 



@ 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212-393-8255 



V" 



f 



i 



1 



^«* 






'^ RICH GET 

RICHER 

' HE POOR 

'U£n 



Corporate 
Accountability 



"lb Whom? 
For What? 

by 

Richard Berwick 



Recently in our office someone circulated a cartoon from the New 
Yorker magazine. It depicted an annual meeting of obviously happy 
shareholders. 

The management was beaming. With that beautiful profit curve in 
the background, the company's chief executive was telling stock- 
holders: 




"And though in 1969, as in previous years, your company had to contend with spiraling 
labor costs, exorbitant interest rates and unconscionable government interference, man- 
agement was able once more, through a combination of deceptive marketing prac- 
tices, false advertising and price fixing, to show a profit which, in all modesty, can only 
be called excessive." Drawings by Lorenz; © 1970 The New Yorker Magazine, Inc. 



However outrageous this profile may seem, it appears to be a reason- 
able likeness of how a growing number of activist groups in our society 
view the corporate system. Whether their concern is with business 
practices per se or with broader issues such as poverty or war, these 
activists are attempting, through force of public opinion and moral 
suasion, to make American corporations account publicly for more 
than their profits and losses — to account in addition for the social 
consequences of ttieir business. 

In a phrase, we have come to call this the "corporate accountability" 



movement. Let's look at its nature, scope and impli- 
cations for the business community. 

The term "corporate accountability" is not an ele- 
gant expression. I didn't invent it. Moreover, it prob- 
ably conveys different nuances of meaning. 

To clarify the subject a bit further, I am not going 
to discuss "corporate social responsibility," another 
phrase much in vogue. To my mind, at least, there is 
a difference. "Corporate responsibility" raises the 
question of the ultimate function of a business corpo- 
ration — particularly, what are its obligations to so- 
ciety as a whole, extending beyond mere economic 
behavior? Corporate accountability involves the out- 
side pressures upon a firm to justify its social impact 
and how the company should respond. 

Making General Motors responsible 

With this preliminary effort to indicate our course 
through these metaphysical thickets, let me first intro- 
duce the cast in the morality plays we are witnessing. 

Holding center stage is a Washington-based organ- 
ization known as the Project for Corporate Responsi- 
bility. It has its ideological roots in Ralph Nader and 
Saul Alinsky. The project's first, and so far its most 
spectacular effort, is the Campaign to Make General 
Motors Responsible. 

Armed with 12 shares of CM stock and an initial 
kitty of $10,000, the young team of Nader followers 
making up Campaign CM launched a highly publi- 
cized nationwide appeal for support of several reso- 
lutions—all aimed at actions directly related to the 
business of Genera! Motors. These resolutions in- 
cluded the following: 

• Establish a shareholders' committee — appointed 
jointly by the CM corporation. Campaign GM and the 
United Auto Workers — to review the social conse- 
quences of GM's activities. 

Richard Berwick is vice president ot Newmyer Associates, a Wash- 
ington, D.C.-based public relations consulting lirm whose clients 
include some of the country's most successful business organiza- 
tions. He is a former newspaperman. 



* Add three public representatives to the GM board. 

* Amend the corporate charter to forbid GM to 
engage in any activity that is inconsistent with the 
public interest. 

* Make solid commitments to develop mass trans- 
portation; produce a crash-proof, pollution-free car; 
make good on warranties, and improve health and 
working conditions of its employees and minority 
group hiring. 

The campaign won support 

The campaigners won the right to place the first 
two issues before GM shareholders. While the Estab- 
lishment generally and predictably held firm against 
this assault, the campaign won support from a num- 
ber of prominent foundations, church groups and 
universities. It forced many other trustees to face up 
to some hard issues. 

And at least in the minds of some, the campaign 
succeeded all too well in profiling GM as authoritarian 
and hostile to outside influences. Not perhaps be- 
cause GM is so distinctively wicked, but because to 
some, this is the nature of large corporations. 

Coast-to-coast inquiries 

The Project for Corporate Responsibility is now 
broadening its target. Some firms — including West- 
ern Electric — have just received from this organiza- 
tion a tough, detailed questionnaire on all litigation 
brought against them by public agencies since 1965. 
Apparently the inquiry is directed to 100 leading 
corporations in the United States. 

Meanwhile, Mr. Nader and his Center for the Study 
of Responsive Law, in the manner of Colonel Sanders 
and his Kentucky Fried Chicken, have set up fran- 
chises all over the country. Nader-franchised investi- 
gations, now under way, are probing the lending and 
investment policies of the First National City Bank of 
New York and its director interlocks with other cor- 
porations; the relationship of Du Pont to the State of 



Delaware; the impact of Rand Corporation and other 
thini< tanks on federal agencies; the paper and pulp 
industry in Maine; pollution of the Savannah River in 
Georgia; use and abuse of land in California; pricing, 
grade labeling and promotional techniques of super- 
markets, and so on. Returning to one of his first loves, 
Mr. Nader also is conducting his own investigation 
of General Motors. 

His investigation of the Federal Trade Commission 
aroused that agency from years of deep slumber— and 
as a result, it has been fundamentally reorganized. 

Challenge to the legal profession 

His probe of ICC demonstrated the solicitude of 
this regulatory commission for the railroads. He has 
initiated a probe of the antitrust division, presum- 
ably to determine among other things why the Justice 
Department has not sought to break up GM. And he 
will dispatch his forces to reconnoiter the National 
Institute of Health and also to examine the quality 
of medical care. 

Mr. Nader has picketed an outstanding Washing- 
ton law office because it is defending a polluter. He 
has made an incursion into Dean Acheson's law firm 
to ascertain its influence on government officials. In 
doing so, he has challenged the legal profession to 
rise above the narrow confines of the law and to take 
into account the social implications of legal advice 
it renders to American business enterprises. 

Another Mother for Peace 

Another current venture in the movement to hold 
corporations accountable for their social impact is 
the Council on Economic Priorities. The council de- 
scribes itself as the "socially concerned Dun and 
Bradstreet." With an office in Washington and field 
representatives in New York, it has mailed a question- 
naire to some 100 companies, asking for detailed in- 
formation about pollution, hiring practices, foreign 
investments and defense contracts. This is followed 



by attempted visits to corporate executive offices. Like 
Nader's Raiders, the council has a certain arrogance 
in its manner of talking to its intended corporate vic- 
tims. The same tendency toward an absolutist con- 
cept of ethical and social values is present. 

The same assumption of moral superiority exists. 
The council presumes to pass judgments on individual 
company performance and renders such judgments 
in publications and pamphlets mailed to investors, 
employees and some segments of the general public. 

Another well-meaning group seeks to apply eco- 
nomic power to achieve social goals. This is Project 
Equality, which promotes equal employment prac- 
tices among suppliers of equipment to churches. The 
project has Ford Foundation backing and strong inter- 
faith support among Catholic, Protestant and Jewish 
organizations. Its end product is a list of companies 
whose employment practices have met the tests set 
forth by Project Equality, often after inspections and 
interviews by project personnel. Cooperating 
churches agree not to purchase from firms that fail to 
meet the organization's standards. 

Less influential, perhaps, are the groups seeking an 
end of hostilities in Indochina by threat of pressures 
on major companies. Typical is the Committee for 
Economic Action to End the War, headquartered at 
Cornell University. Several months ago, they pro- 
posed a boycott of one company's products unless 
that company publicly condemned the war in Viet- 
nam and Cambodia. An antiwar group in Beverly 
Hills, Calif., known as Another Mother for Peace and 
claiming some 150,000 members, lobbies in Washing- 
ton, conducts letter-writing campaigns, runs ads and 
distributes peace medallions and bumper stickers. 
The group sponsors boycotts of goods produced by 
defense contractors. 

Shareholders should help decide 

Even the courts seem to have joined the corporate 
accountability movement. I refer to a case brought by 
the Medical Committee for Human Rights, a stock- 



holder in the Dow Chemical Company. The U.S. 
Court of Appeals recently held that the Securities and 
Exchange Commission and Dow were wrong in pre- 
venting Dow stockholders from voting on whether 
that company should get out of the napalm business. 
The court's opinion contained a statement that is of 
particular interest to management people. The court 
said in essence that Dow pursued a line of business 
that produced little profit and risked impairment of 
public relations and employee recruiting. The court 
noted that management considered this course to be 
morally and politically desirable — but emphasized 
that management is no better qualified than the share- 
holders to make this kind of judgment. The court 
deplored "management's patently illegitimate claim 
of power to treat modern corporations with their 
vast resources as personal satrapies implementing 
personal, political or moral predilections." In effect, 
this means that when a corporation's business is moti- 
vated more by social considerations than expectation 
of profit, shareholders have a right to participate in 
that decision. 

A strong kinship among activists 

Here is what other major corporations were up 
against on the annual meeting circuit last spring: 

Gulf Oil encountered three protest groups in Pitts- 
burgh — the Quakers American Friends Service Com- 
mittee, the Gulf Action Project and a citizens-church 
organization. 

IBM and the Chase Manhattan Bank encountered 
the Business Executives Movement Against the War, 
a national organization. 

United Aircraft faced the Anti-Aircraft Conspiracy 
in Hartford. 

This is only a partial review of the myriad citizen 
movements challenging corporations to account for 
the social consequences of their actions. Let me turn 
to some interpretation of the deeper roots and long- 
range significance of these efforts. 

No task holds more pitfalls than that of sorting out 



the reciprocal and complex relationship of events, 
trends and ideas underlying these movements. I make 
no pretense of being able to do this. But I suggest we 
begin with recognition of a strong kinship among 
most activist movements that agitate our society. We 
are witnessing a many-sided revolt of individuals 
against the impersonal forces and institutions that 
dominate their lives. 

The revolt is not new 

Young people, blacks, the poor, intellectuals, blue- 
collar workers and others are venting their frustra- 
tions over circumstances and events they do not like, 
but over which they feel they have been unable to 
exercise any decisive influence. In this atmosphere, 
the individual, instead of finding freedom, feels 
crushed by external forces. 

He feels at the mercy of vast institutions — the 
government, the corporation, the university. A few 
would include capitalism, itself. All seem to impinge 
upon freedom of personal expression and the quality 
of life. Psychologist Kenneth Keniston blames the 
alienation of many of today's brightest youth on their 
inability to meet the demands of the ego in contem- 
porary society. 

The very structure of society is regarded as a threat 
to their individuality. It is cold, impersonal, techno- 
logical, dehumanizing. This sense of a lack of appreci- 
ation of human values may be one thread that under- 
lies protest movements against war; pollution; 
mistreatment of consumers; lack of democracy in our 
political processes, educational institutions and cor- 
porations. Whatever merit such criticism may have is 
confounded by the fact that youthful apostles of 
change are not clear in their own minds as to which 
factors are being condemned for which social and 
cultural consequences. Our critics are loathe to sort 
out causes and effects with precision, to qualify their 
judgments or to express them in empirically measur- 
able terms. Nor are they clear on how to prevent the 
abuses they deplore. 



This revolt may have flowered overnight, but at 
least on the intellectual plane it is a familiar article. 
John Stuart Mill over a century ago said: "I confess 
I am not charmed with the ideal of life held out by 
those who think that the norma! state of human be- 
ings is that of struggling to get on; that the trampling, 
crushing, elbowing and treading on each other's 
heels are the most desirable lot of humankind." 

Americans are unhappy 

Eric Hoffer, the longshoreman-philosopher, has 
written that "where people toil from sunrise to sunset 
for a bare living, they nurse no grievances and dream 
no dreams." In past eras, man was fundamentally 
oriented to economic scarcity and thus to insecurity, 
fear and self-centeredness. Accordingly, there was 
then no general support for reforms dealing with the 
consequences of abundance, with questions of qual- 
ity versus quantity or with the moral and ethical con- 
tent of economic decision making. 

Thus the new reform movement results partly from 
the discovery that general affluence is no cure-all. 
Indeed, it frustrates many to observe we have ample 
total resources to do what needs to be done, but we 
seem to know not how to do it. Americans in the 
decade of the 1970's are remarkably unhappy people 
when measured against people of other cultures or 
Americans of other generations. 

There has been a tendency in some circles to shrug 
off these movements as ideological fads; I think that 
is an error. Consumerism and environmentalism have 
struck a powerfully responsive chord, as seen by the 
sudden, remarkable grip these issues have among 
politicians around the country. 



More loyalty than the flag 

Consumerism has usurped the sanctity attributed 
to Motherhood, which is no longer in such good re- 
pute. Environmentalism commands more loyalty than 
the flag. And the assault on the Defense Establishment 



is led by some of the most respected leaders in the 
Senate of the United States. 

Yet it was not so long ago that the consumer move- 
ment was rather like the Salvation Army — a retreat 
for a handful of the unworldly. Environmentalism was 
considered scarcely relevant unless one had a per- 
sonal stake in the Hell's Canyon Dam or some other 
direct intrusion on nature. A vote against ABM would 
have been considered unpatriotic. 

Yet these are all mass movements, rooted firmly in 
the attitudes and concerns of millions of Americans. 
Thus, even after the emotion of the environmental 
teach-ins has dissipated, antipollution action has 
great appeal in both Congress and the White House. 

Not so the corporate accountability drive. At this 
stage at least, it is essentially an elite movement di- 
rected by serious and well-disciplined young men 
and women of keen intelligence, largely the children 
of rich and influential parents. Significantly, most of 
its leaders determine to work within the system. They 
are neither Maoists nor Marxists. They seek not to 
abolish our economic and political organizations, but 
to make them more responsive. Yet, the corporate ac- 
countability movement has a limited constituency. 

National corporate commission 

Lacking mass appeal, corporate accountability has 
not yet shown signs it will develop into such a com- 
pelling political force as Consumerism and Environ- 
mentalism have proven to be. 

Senators Muskie and Eagleton have proposed a bill 
that would prevent corporate managements from ex- 
cluding in their proxy statements stockholder pro- 
posals dealing with "economic, political, racial, reli- 
gious or similar issues" unless the matter is wholly 
beyond corporate control. 

So far, it seems this bill has attracted more attention 
from corporate executive suites than from key con- 
gressmen and their committee staffs. I see no serious 
consideration of this bill in Congress this year. 

Senator Magnuson, chairman of the commerce 



committee, is reported to be weighing sponsorship 
of a bill creating a national commission on corporate 
responsibility. The commission would examine cor- 
porate impingement on society and issue a code of 
corporate social responsibility. So far this proposal 
also has been received with apathy. Such indifference 
reflects the fact that, in the past decade, we have wit- 
nessed not a breakdown but an increase in the ability 
of the political system to give meaningful direction to 
our complex society. 

Two views of the movement 

I suspect some energy harnessed by the corporate 
accountability movement comes from passions 
loosed in our country as result of the war in Vietnam. 
Thus some may anticipate that the agitation for cor- 
porate accountability will decline when the war ends. 
They feel all backers of Campaign CM and all who 
subscribe to the "socially concerned Dun & Brad- 
street" are not necessarily signed on for the long haul. 
In my view, there is an equal prospect that, after the 
war, basic discontents will be directed in some other 
form toward corporations. 

In any event, my hunch is that corporate account- 
ability is not likely to attract broad political support 
or to generate significant legislative prescriptions. 

This does not indicate we should dismiss the matter 
lightly. While the issue may not confront corporations 
so acutely in the legislative arena, corporations may 
well face an increasing array of difficult challenges 
at annual meetings, in proxy statements and in ques- 
tionnaires and investigations from private rather than 
governmental sources. It will be more a public rela- 
tions problem than a political problem. 

From this perspective there are two views of the 
corporate accountability movement: a threat and a 
wake-up signal. 

No doubt many businessmen regard the idea as 
Marxism in Love Beads, the leading edge of an assault 
on the American Way of Life. What is surprising is the 
number of businessmen willing to listen and talk to 



individuals and groups who raise disturbing questions. 

I don't know of a single major corporation that has 
yet responded to a demand for information — no mat- 
ter how self-righteously phrased — with the response 
that I would have expected to hear, namely: "It's 
none of your damn business, sonnyboy." 

Is it because our corporate executives are so re- 
sponsive these days to public relations? Is it because 
they recognize instinctively that corporate defiance 
is not likely to be popular? Or is it because they har- 
bor reservations about what business is doing in the 
social arena of America? 

The answer, I suspect, is YES to all three. Many 
businessmen have responded to the corporate ac- 
countability movement as a wake-up signal, and this 
certainly is encouraging. 

What constitutes good care? 

In bygone days, businessmen were comforted by 
Adam Smith's theory that in pursuing maximum profit 
they were led, as if by "an invisible hand," to serve 
society's interests. Today, many businessmen are not 
sure the answer is that simple. The old beatitudes of 
private enterprise and the assumed benefits of profits 
no longer appear to be persuasive dogma. 

I don't know of anyone who has yet enunciated a 
coherent philosophy of corporate social responsibil- 
ity. Somehow the rationale sounds like either a con- 
temporary noblesse oblige or a slightly swinging 
version of the Charlie Wilson doctrine — if we take 
good care of society in the short run, society will take 
good care of us in the long run. But in these days, 
what constitutes "good care"? 

The real challenge, I suggest, is that the corporate 
accountability movement compels us to strive for 
modern and persuasive formulations of the essence 
of what a business corporation is and how it can best 
serve the society that creates and sustains it. Both the 
standards and the idiom of corporate life are always 
changing. We need to say and do things so as to get 
inside the vibrations of our times. O 






llabit 



BY 

DAVID R.MAXEY 



"Never volunteer for anything," is a typical bit of American advice 

that Americans choose to ignore. And that's good for the nation. There are 

in the United States 69 million individuals who may have in their willing 

hands the answers to some of our most pressing national problems. 



It is a small sickness to feel anonymous. Too many of 
us do. There have been bales of writings over the last 
25 years teaching us that the uniqueness of an individ- 
ual man is being buried by bigness— big government, 
big labor, big business. 

Our political debate often takes the form of a dis- 
cussion about whether government should tackle 
some social problem, or whether the solution would 
be better left to private enterprise. While that argu- 
ment goes on, so do our national troubles. 

We can sit in our living rooms and hear much more 
than we want to know about racial tension, crumbling 
cities, poverty, pollution and all the other spectres 
that haunt us. No wonder, then, that the evening 
newspaper occasionally gets slammed down on the 



Mr. Maxey is a native of Boise, Idaho, now residing in New York. 
He is a graduate of the University of Idaho and the IHarvard Busi- 
ness School. He has held various posts with Look magazine and 
is now Co-Managing Editor of Look. 



living room floor with this cry: "But what can / do?" 
We might seek the answer by referring to a report 
on America by a Frenchman. Writing about us in the 
1830's, Alexis de Tocqueville, one of the keenest ob- 
servers of Americana who ever lived, delivered 
"Democracy in America." Here's a sliver from it: 
"Americans of all ages . . . constantly form associa- 
tions ... of a thousand kinds ... to give entertain- 
ments, to found seminaries, to build inns, to construct 
churches, to diffuse books, to send missionaries to 
the antipodes ... to found hospitals, prisons and 
schools." 

After noting that phenomenon, Tocqueville de- 
clared his esteem: "I have often admired the extreme 
skill with which the inhabitants of the United States 
succeed in proposing a common object for the exer- 
tions of a great many men and inducing them volun- 
tarily to pursue it." 

Tocqueville was talking about more than a neigh- 



borhood bamraising. He was talking about a prin- 
ciple of our way of life. Voluntarism is an American 
habit. The Red Cross alone marshals 2.3 million vol- 
unteers. Last year, Dr. George Gallup announced that 
69 million adults had said they were willing to donate 
themselves to solve problems in their own commu- 
nities. And although most economists treat volunteer 
work as if it weren't worth money, one Department 
of Labor study estimates that by 1980, Americans will 
be contributing as much as $30 billion in hours of 
free work in their communities. 

Seeing the size of the voluntary work force, Richard 
Cornuelle, in his 1965 book, "Reclaiming the Ameri- 
can Dream," broke loose from the popular notion 
that society is divided into only two segments, gov- 
ernment and private enterprise. He took inventory 
of the organizations that would not fit neatly into 
those categories and worked up this partial list: 6,000 
private foundations; 18,000 business associations; 131 
labor unions; 320,000 churches, and 100,000 private 
welfare groups. Mr. Cornuelle labeled his list the 
"Independent Sector." He saw it as larger and poten- 
tially more effective than the government bureaucracy 
his fellow conservatives were fond of cursing. 

Mr. Cornuelle's unearthing of the Independent 
Sector means we may be on the verge of getting over 
the standard liberal-conservative shouting match 
about whether government or private enterprise is 
the font of our national well-being. The Independent 
Sector appears to be ground on which both groups 
can walk comfortably. 

It beats welfare checks 

Take, for example, Zita Potts of Crothersville, Ind. 
She is a 64-year-old widow who gets by on $2,000 a 
year, so she has more than a nodding acquaintance 
with poverty. Working with VISTA volunteers (from 
the government), and with the staff of the Community 
Action Program in Columbus, Ind. (government, 
foundations and private enterprise), Mrs. Potts helped 
low-income women form a sewing cooperative. 



Working when they can, the women run up ties, uni- 
forms, tote bags, dolls and other items to sell. If their 
products catch on with consumers, the members of 
the Stitch & Quilt Association will come to own their 
own business. That's private enterprise, and it beats 
welfare checks for these proud women. Zita Potts, 
herself, working for satisfaction, is a one-woman 
addition to Cornuelle's Independent Sector. 

Examples of Independent Sector action surface 
behind just about every headline that gives us bad 
news. Citizens in Fresno, Calif., did more than moan 
about drug abuse. They have the FACTS Foundation 
Youth Service Center going for them. Volunteers, 
many of them college students or former drug users, 
counsel youngsters that drug abuse is a bad trip. 

Meals-On-Wheels 

Amicus, Inc., is a Minneapolis, Minn., project that 
matches a volunteer with a prison inmate. They cor- 
respond and visit, and when the inmate leaves prison, 
his volunteer friend helps with jobs and housing. The 
purpose: to cut recidivism. 

It is still true in America that some people don't 
get enough of the right kind of food. Meals-On- 
Wheels of Leon, Iowa, fights that problem with 
church volunteers who deliver one hot meal a day to 
shut-ins and low-income old people, at low cost. 

It is almost an axiom that "the poor pay more." 
Without sufficient money for handling day-to-day ex- 
penses in an orderly manner, low-income families 
often plunge into expensive debt that propels them 
further downhill. In Phoenix, Ariz., Family Debt 
Counselors is trying to break that spiral by scheduling 
evening meetings with trained volunteers for families 
who need money-management advice. 

Richard Nixon, then candidate Nixon, began to talk 
about voluntarism in an October, 1968, radio speech. 
He described the malaise that the feeling of insignifi- 
cance causes: "As government has strained to do 
more, our people have felt constrained to do less. The 
more the federal government has tried to solve all 



10 



I 




Indiana Bell Telephone 
people devised a way for blind 
boys at Indiana Stale School 
for the Deaf to run races. 
Contestants grasp a wooden 
spool running on a cable 
strung between poles— 
and away they go. 




i 






11 



The 

"Spirit of Service" 
Wori<s After Work 




Above: Telephone Pioneers in Portland, Me., run Olympic games tor retarded children. 
Below, left: Young volunteers help entertain Vietnam veterans hospitalized in San Fran- 
cisco. Right: Pioneer tutors a child in one ol San Francisco's inner city schools. 




The "Spirit of Service" is an integral part 
Bell System tradition. It is so strong thai 
Bell System people choose not to turn 
when they go home at the end of the v\ 
day. These highly motivated people c 
their energies into volunteer action of 
kinds, producing a dividend in dollars anc 
benefiting the entire nation. 

Thousands of telephone people evei 
make a valuable contribution to their con 
ties by giving their time and cash to the 
raising efforts of United Fund, United / 
Community Chest and Red Cross cam 
Thousands of others serve as volunteers i 
munity-service projects sponsored by tl 
vice organizations to which they belon; 

Some telephone people serve as voli 
in Scouting; as advisers to Junior Achiev 
projects; as youth leaders in community q 
churches and synagogues; as hospital aid! 
as voluntary firemen and auxiliary police. | 
collect clothing or eyeglasses for the di^ 
taged, or toys that they'll recondition lj 
tribution to needy children. Operators arj 
phone people often pitch in to man th 
phones for fund-raising telethons. 

Some Bell System employees hav€ 
leaves of absence to devote their full 



our problems, the more it has seemed to fail. Public 
programs are attacked by the very people for whom 
they were created. And our young people, our most 
precious resource, are disillusioned as well as dis- 
affected by results." 

In his own drive toward the Democratic nomina- 
tion, Robert Kennedy struck similar themes. Secretary 
of Housing and Urban Development George Romney, 
a Republican, has pointed out the similarities be- 



tween the Nixon and Kennedy themes, to show how 
little the voluntary idea has to do with politics. 

No need to rob gas stations 

Mr. Romney has a full charter to talk about volun- 
tarism. He was putting volunteers to work in Michigan 
even before he became governor. He pushed citizens 
into a searching examination of Detroit schools. They 



* 



12 



teer action in VISTA or the Peace Corps. 
;er number devote part of their after-work 
i to direct attacks on local community 
ems. In one community, Bell System peo- 
ork as volunteer aides in a Head Start pro- 
helping prepare disadvantaged children 
ndergarten. In an Eastern central city area, 
lone people promoted, equipped and as- 
the operation of a day care center for the 
en of welfare mothers who work or attend 
I. In many communities, Bell System vol- 
rs serve as tutors for underprivileged chil- 

System people volunteer for all manner 
jects: they engineer "ditty bag" drives for 
oops in Vietnam; they teach courses in 
, electricity and other vocational skills for 
Jucationally and economically deprived; 
ley are active members of organizations 
g with drug addiction, race relations, em- 
' ent, housing and other urban problems, 
nng the most active volunteers in the Bell 
ii are the Telephone Pioneers of America, 
I anization of more than 339,000 active and 
*l telephone people with more than 21 
■ )f service. 

i /-five thousand of these community- 
id people now engage in Pioneer-spon- 




Lelt, above: Volunteers help with the Talking Book program in Oklahoma City. Lett, 
below: Life Member Telephone Pioneers test children for Lazy Eye alfliction for Head 
Start program in Socorro, N.M. Right: Pioneers, serving as substitute parents at an Okla- 
homa City inner city school PTA, fit indigent children with new shoes. 



came up with 182 new ideas and helped sell the 
people of Detroit on a bond issue and tax increase 
to implement them. 

Mr. Romney has other stories to make his point for 
voluntary action. At the White House in 1969, he told 
about a sociology professor at Michigan State Uni- 
versity who had been watching a low-income school 
district in Pontiac, Mich. Many of the students, the 
professor observed, were headed for delinquency. He 



asked for volunteers at Michigan State, and 350 col- 
lege students showed up for the first meeting. They 
plunged into a program for tutoring the young in 
reading and arithmetic. Implicit in their work: The 
child who learns more and stays in school won't need 
to find self-esteem in robbing gas stations. 

Catching up with the professor's volunteer tutoring 
program after it had been under way for a year, Mr. 
Romney helped spread the idea across Michigan. 



13 



sored community-service activities, and 16,000 
nonmember telephone employees and family 
members join with them. In one year's time 
this group contributed 963,890 hours of volun- 
teer effort in thousands of communities in the 
United States and Canada. 

Telephone Pioneers participate in more than 
700 kinds of volunteer projects. They are a 
familiar sight in children's hospital wards, at 
community blood bank donation centers and 
anywhere else a community agency may be at 
work. 

Telephone Pioneers work with the sick, the 
disadvantaged, the lonely, the retarded, the 
handicapped and almost anyone who needs 
help. They are involved in raising funds for many 
organizations and agencies, in a continuing 
"talking book" project for the sightless, and in 
projects to collect, recondition and distribute 
toys for disadvantaged children. 

The Bell System now has more than a million 
employees. Many of them have the volunteer 
habit, although it is impossible to know exactly 
how many. They work for a variety of causes. 
Their viewpoints differ. But they all have a com- 
mon goal: to serve — to make life bigger, better 
and more meaningful for somebody else. 




Above: Pioneers help care for children at an inner city Day Care Center 
in Newark, N. I. Below: Pioneers lend their telephone expertise to screen- 
ing preschool children lor hearing difficulties at Socorro, N.M. 




Eventually, 13,000 college students were working with 
35,000 elementary school children. 

Michigan is not unique. One-to-one tutoring is 
nationally becoming one of the most popular ways 
to volunteer. College students, with their urge for 
immediate involvement and results, get both when 
they sit down with a younger child. Once regular 
teachers get over the idea that nonprofessionals might 
bungle the job, they savor the relaxation of demands 
on their own crowded schedules. Some educators 



believe college students break through faster with 
their young students, just because they don't appear 
to them like "adults." 

During his successful campaign for election. Presi- 
dent Nixon often raised the voluntary idea. So did 
Mr. Romney in his campaign speeches for Mr. Nixon. 
With the election won, the new administration began 
to hunt an approach to encouraging voluntarism 
throughout the nation. 

There were hurdles. Labor leaders worried that too 



14 



much emphasis on voluntarism would hold down the 
supply of union jobs. There were comments that the 
administration might seize on voluntarism as an ex- 
cuse for the government to back out on its own social 
obligations and programs. Voluntarism wasn't pre- 
cisely a new idea, so leaders of the voluntary organi- 
zations that already existed expressed worry that the 
government was about to become involved in what 
had always been a private activity. 

For more than a year, Mr. Romney and Mr. Cornu- 
elle worked with Max Fisher, Detroit philanthropist 
and the President's Special Consultant on Voluntary 
Action, toward an administration approach to volun- 
tarism. Mr. Romney and Mr. Fisher sat through long 
sessions with representatives of more than 250 organ- 
izations, listening to their ideas and their worries. 

Out of those sessions, plus talk within the adminis- 
tration, grew the President's Program for Voluntary 
Action. It has two branches. Mr. Romney heads the 
Cabinet Committee on Voluntary Action and the 
Office of Voluntary Action (O.V.A.) within his own 
department. O.V.A. surveyed federal programs to find 
out how volunteers were being used, if at all, and 
how they might be used better. 

Ideas from data bank 

Outside the Government, Charles (Bud) Wilkinson, 
known best for his football coaching, heads the Na- 
tional Center for Voluntary Action. The N.C.V.A. has 
a blue-ribbon board of directors, numbering more 
than 100, headed by Henry Ford II. Financing for the 
center is accepted only in $100,000 lots, a concession 
to other voluntary organizations, whose leaders 
feared that their own donations, mostly small, would 
stop coming with the establishment of N.C.V.A. 

The National Center's first action was to prepare 
a data bank. Throwing out questionnaires to citizens 
in local communities, the N.C.V.A. chronicled the 
methodology of successful voluntary programs. 

Interested citizens can write for guidance on their 
own programs and get ideas back from the data bank. 



N.C.V.A. also is exploring the statutory and regu- 
latory barriers to the use of volunteers by the federal 
government. With a few exceptions, like the Office 
of Economic Opportunity and the Veterans Adminis- 
tration, most government agencies are not able to 
use volunteers legally. But an effort will be made to 
untangle such legal questions as this one: If the gov- 
ernment loans a car to an unpaid volunteer to get 
to his place of voluntary work, whose liability insur- 
ance applies — the government's or the driver's? 

We are not just being nice 

The Nixon Administration — and indeed all of us — 
must learn much more about voluntarism. Tocque- 
villetold us correctly enough that we are great joiners, 
and that we do volunteer in great numbers. But why? 

One study points out that most of us say we vol- 
unteer for humanitarian reasons. But the study sug- 
gests we are not just being nice. We volunteer also 
because we have more leisure, our boss told us to get 
involved in community activities, we are lonely and 
want to meet new people or we may have a chance 
to learn new skills useful in our regular job. Social 
status is also a great motivator in many towns, with 
status varying according to the cause or campaign. 

The President has acknowledged something im- 
portant in talking about recognizing, "the small, 
splendid efforts that never make the pages of the 
national journal." He has acknowledged the danger 
in large voluntary organizations' becoming institu- 
tions, as much concerned with continuing to exist as 
with the problems they were organized to solve. 
"Small, splendid efforts" are more likely to go out 
of business happily because the job is finished. 

The President and his advisers have been properly 
cautious about claiming that voluntarism will solve 
every American problem. But if involvement in trying 
to solve problems means that a volunteer gets a bet- 
ter vision of himself, then voluntarism may pay a 
double dividend. We may solve some problems, and 
may wind up with fewer angry, alienated citizens. D 



15 




A Telephone Boutique 

The scenes on these and the next two pages were 
photographed in a unique new boutique a few miles 
north of Miami, Florida. Called the PhoneCenter, it 
represents a totally new approach to providing 
service for residence customers — in this case, 
those living in a cluster of sunny new high-rise apart- 
ment buildings in Hollywood-Hailandale area. 

The PhoneCenter, run by Southern Bell, features 
attractive displays of telephones in many colors and 
models — all "portable." Customers browse among 
the phones, make their selections, have their orders 
filled on the spot, then take the instruments home 
and plug them in for instant service. The PhoneCenter 
customer also gets a substantial reduction in the 




one-time charges for establishing service. 

Opened in July, the PhoneCenter is scheduled for 
a run of a year to 18 months to test this new AT&T 
marketing concept. The Center is on the street floor 
of a new apartment complex, next to a pharmacy 
and in among other shops and offices. The 
handsome showroom is staffed by Commercial and 
Plant Department people who work together to 
serve customers in the trial area. 

Said one pretty service representative about her 
present job, "It's just great here. We hope we stay 
open forever." If customer response is any gauge, 
the citizens of Hallandale-Hollywood agree. 
Declared one brightly-clad matron as she picked a 
pair of matching Trimlines, "You know, this place 
is fantastic!" D 






19 



TO MANAGE TOMORROW 




When we say that "Manage- 
ment is an art," what does 
this banal statement imply? 
A contrast to science first comes to 
mind. The physical or social scientist 
concerns himself with analysis of 
things or events, while the artist is 
primarily involved with synthesis of 
materials, human efforts and ideas. 

Modern managers are far closer in 
temperament to men like Michelan- 
gelo, Da Vinci and Rubens than to the 

Mr. Boettinger, head of AT&T's Manage- 
ment Science Division, tias written widely 
on techniques of corporate planning. This 
article is drawn from a series of lectures 
given recently by Mr. Boettinger at the in- 
vitation of the British Institute of Manage- 
ment in London and Manchester. 



giants in the history of science. They 
observe the world, conceive visions of 
how it can be changed, gather people 
and resources, develop deployment 
strategies and inspire their followers 
to turn their visions into reality. 

All these factors emphasize the fu- 
ture. However, the past of any signif- 
icant organization has its claims, and 
the manager's task is to take that past 
success and its traditions into the fu- 
ture, sometimes keeping to the old 
course, but more often readjusting or 
altering the navigational instructions 
he gives his crew. He cannot be satis- 
fied with precise records of the past 
as purported by accounting state- 
ments. Regardless of their status as 
ends in themselves to the accountant, 
to the manager they are only check- 
points on a voyage into the future. At 
every point he has options and deci- 
sions to make that will determine 
what future reports will tell. To this 
extent he is akin to an artist at work 
on a gigantic fresco, which he will not 
complete in his lifetime, but on which 
each day's activity will influence the 
final product. 

Planning is thinking ahead with a 
view to action, beginning from the 
base of where you are — which is often 
difficult to determine — and laying out 
alternative tracks that can be traversed 
to get where you want, which is ex- 
tremely difficult to determine. Some 
assume that planning consists solely 
of setting the goals, aims or objectives 
and turning these over to lesser men 
to achieve, often accompanied by Nel- 
sonian postures like "The company 
expects every man to do his duty." 

This kind of "planning" leads to fan- 
tasy, ridicule and failure. Serious plans 
live on a hard line that separates 
dreamy aspiration from the harsh 
world of reality. They try to resolve 
thorny questions or dilemmas that 
arise when hope for the future exerts 
a drag on the present. They do so by 



decision, communication of that deci- 
sion to all hands, and adjustment of 
The Plan as unforeseen events occur. 
The Plan is not a blueprint for building 
construction, but more a design for 
attack. Two statements by Field Mar- 
shal von Moltke illustrate the wisdom 
corporate planners must acquire: "No 
plan can survive contact with the bat- 
tle," and "Whatever can be misunder- 
stood, will be misunderstood." Such 
insights describe a process, not a proj- 
ect, something flexible rather than 
rigid, demanding involvement to a 
greater or lesser extent of every person 
in the organization. 

The process begins by acquiring in 
some way what we can call 
"aims." Aims can spring from 
inheritance, rational calculation, di- 
vine revelation, irritation, shrewd dis- 
cernment of opportunity, fear, love, 
dissatisfaction or any other shock to 
the mind. They are essentially visions, 
in the non-pathological sense, of de- 
sired future states. They are also the 
sine qua non of the planning process. 

Resistance from managers to the 
idea of planning, when traced to its 
source, often comes from an emotional 
reluctance to re-examine the premises 
of their business and to make their 
purposes explicit. This is understand- 
able since it is a painful process and 
creates as much trouble as Socrates 
caused in Athens by his infernal ques- 
tions. Those who engage in planning 
take similar chances, for they must 
make nuisances of themselves if they 
are good at their jobs. A "popular 
planner" is a contradiction in terms. 

Assume that by some process an aim 
is embraced. Until the next step oc- 
curs, the aim remains merely sterile 
aspiration. When the aim is shared by 
men of action, implementation (that 
barbarous word) begins. Here is where 
resources of personnel, money, plants, 
equipment, advertising and all the 
other weapons in the management 



20 



arsenal are wheeled into action. Their 
disposition, timing and amounts 
should be related to the overall aim 
of the organization if the management 
process is to be characterized as ra- 
tional. Implementation, however, re- 
quires that men must make assump- 
tions about the infinitude of variables 
at work in order to make the decisions 
required. In most businesses these as- 
sumptions are seldom appreciated and 
less often articulated. When this is the 
case, nasty surprises occur. However, 
in error lies the core linkage of day- 
to-day supervision and management 
planning. Error, in this sense, means a 
discrepancy between what one wanted 
to happen and what actually happened 
because what had been assumed to be 
constant is actually variable. 

Error, once detected by some 
measurement system, leads di- 
rectly to an operation called 
"correction," and here we return to 
the implementers. The presence of a 
discrepancy between what they in- 
tended and what they got sounds the 
bugle for action. Sometimes, when the 
error is negative, i.e., things turn out 
better than expected, they should rush 
forward to exploit the unexpected 
opening. When the error is positive 
(things turn out worse) they may 
have to fall back and regroup for coun- 
terattack. But the correction mode al- 
most always poses a dilemma that can 
cause a man of affairs to freeze with 
indecision. Hamlet knew well the 
mood: "And thus the native hue of 
resolution is sicklied o'er with the pale 
cast of thought." 

The dilemma arises because imple- 
mentation and/or the aims are candi- 
dates for correction. Some managers 
show symptoms close to neurosis 
when placed in this spot, unable to 
decide, perhaps making half-hearted 
attempts to correct everything simul- 
taneously, or refusing to believe the 
error message. Others always assume 



by Henry M. Boettinger 

that an aim received from on high can 
never be wrong, that the fault must lie 
in themselves and the people in their 
charge. They resolve the dilemma by 
throwing everything in sight into re- 
newed operational assaults. Historians 
are often kind to such people, and the 
annals of most nations are littered with 
their heroic exploits. They represent a 
romantic approach to management. Its 
danger lies in its aura of manly appeal 
and a distorted view that it takes of 
blind faith, obedience and loyalty. 

Other men assume their personal 
execution can never be wrong, and 
the roots of failure must always be 
found in faulty selection of aims. They 
usually can be identified by their in- 
sistence that they have absolutely no 
responsibility for the selection of aims. 
"Tell me what you want, and I will do 
my best, but I can't promise anything," 
is the motto on their banners. 

Some hierarchical structures make 
questioning of an impossible aim quite 
dangerous and introduce so much re- 
luctance to do so that top manage- 
ment, deafened by silence, may not 
suspect that they have sent people on 
fools' errands until the roof falls in. In 
the past, such silence merely pro- 
duced inconvenience, embarrassment 
and losses. Today it can be suicidal. 

We see many failures today in 
all areas of life by good, ex- 
perienced and intelligent 
men who, in another age, would have 
been brilliant successes. They are vic- 
tims of the quickened pace of change, 
which outstripped theirability tocope. 
They must pay the price of dragging 
carcasses of dead policies into their 
future. Thorstein Veblen, a maverick 
American economist, observed that 
"Immutable conduct and progres- 
sively changing conditions result in a 
logical muddle." It is difficult to quar- 
rel with this if you assume things were 
in step at the start. 
Corporate planning's reason for 



"No plan can survive 

contact with the battle" 

— which is why any 

serious enterprise must 

plan flexibly for an 

uncertain future 



Resistance from managers 

to the idea of planning, 

when traced to its source, 

often comes from 

an emotional reluctance 

to re-examine the 

premises of their 

business and to make 

their purposes explicit 



21 



Corporate planning, 
rightly understood, is 
th-e prime test of 
top management 



Good organizations 
keep their planning taut 
and smart by scanning 
widely for new 
possibilities. Others act 
as though they inherited 
guns rusted solidly 
in place 



Business enterprise is 
the one institution 
of society dedicated to 
the idea of change 



existence begins with Veblen's state- 
ment: It tries to assess changing condi- 
tions and prescribe alternative courses 
of conduct matched to them. 

This is difficult enough to do for an 
individual, but when attempted for 
all individuals who compose an organ- 
ization, it is a task worthy of the best 
of men. Corporate planning, rightly 
understood, is the prime test of top 
management. It is also its prime tool 
of leadership. Real planning can only 
be a serious activity if the top men in 
command want it, support it, demand 
it and form their judgment by its proc- 
esses and imperatives. 

Planning is the one task for which 
they cannot delegate their re- 
sponsibility. Those who try the 
easy road of delegation do their plan- 
ning staff men a disservice. These ex- 
perts have been condemned to pro- 
duce sterile documents whose value 
is solely decorative. They are removed 
from shelves only to answer question- 
naires from outsiders. Subordinate 
managers soon realize that top man- 
agement's lip service to planning im- 
plies neither penalties nor rewards for 
participation in the planning experts' 
games. In this case, those willing to 
talk with the alleged planner are those 
least able to help his work survive. 
There is no way to use planning atti- 
tudes, techniques and methods if top 
leadership does not want them, be- 
cause all the support structure of infor- 
mation, communication and decision 
rules will be either missing or easily 
sabotaged by anyone who dislikes a 
planning staff recommendation. 

Placing such aberrations aside, let's 
examine how a top management that 
is serious about planning can proceed 
and what burdens it must assume. As 
with field guns, corporate aiming con- 
sists of two movements, one sweeping 
the horizontal plane (azimuth), the 
other moving up and down (setting 
the range). The horizontal movement 



consists of examining the spectrum of 
possible markets for the organization 
and selecting a sector for serious prob- 
able effort. The range movement con- 
sists of how far one intends to pene- 
trate that sector. It usually is measured 
by "share of the market" criteria for 
businesses and churches, by scales of 
eminence for colleges and by relative 
size for defense establishments. 

Good organizations keep their 
planning taut and smart by 
scanning widely for new pos- 
sibilities. Others act as though they 
inherited guns rusted solidly in place, 
trained forever on a target selected 
long ago. All their management energy 
goes into mere drill, or traditional op- 
erations, and none into target selec- 
tion. When the targets constantly jig- 
gle and disappear, or new ones spring 
up nearby, the gunners experience 
frustration. When some new targets 
are lively enough to begin firing on the 
old guns, panic ensues after initial 
rage at their impoliteness. 

Yet business enterprise is the one 
institution of society dedicated to the 
idea of change. It institutionalizes 
change, a paradox. This is why plan- 
ning is so important in modern busi- 
ness. If one does not expect to have 
to change in the face of an uncertain 
future, no planning at all is needed. 
It is no accident that other institutions 
have embraced the techniques — but 
not necessarily the processes — of 
business management planning. The 
reason is that they are experiencing 
unprecedented change and are eager 
to look to the one institution where 
change has been both its nature and 
its driving force. 

The principle used in horizontal 
scanning for opportunities is extreme- 
ly important for a planning-oriented 
leader. In selecting the scanning prin- 
ciple, severe constraints demand the 
most clearheaded appraisal of an 
organization's abilities. This appraisal 



22 



must be purged of all modesty and 
wishfulness. Lower level people in an 
organization usually are prone to 
underestimate its overall strengths, but 
top-level people are highly biased 
toward overestimation of strengths. 
They also tend to minimize weak- 
nesses and assume that "a little tight- 
ening up" or a "return to fundamen- 
tals" will put everything right. This 
attitude seldom does much harm in 
day-to-day administration, but it can 
be fatal for strategic decisions. 

Here I should explain my view of 
the difference between strate- 
gic and tactical plans, since 
these terms will reappear. Strategic 
decisions and plans have longer ef- 
fects; are difficult to reverse; affect 
more functions; are broad in scope; 
set goals and broad selection of means, 
and use the longest period worth con- 
sidering. Tactical decisions are narrow 
in scope; find the best specific means 
to achieve specific goals, and use the 
shortest period worth considering. 

These are all relative terms and vary 
in business and industry. In dress man- 
ufacturing, strategic plans reach out 
six months and in timber operations, 
a hundred years. Even so, the classifi- 
cations are not meaningless in a spe- 
cific organizational context. Decisions 
made by a top management that dele- 
gates operational administrative 
authority are almost always strategic, 
even though such decisions may be 
made quickly. Strategic decisions turn 
the whole ship, and while every man 
on it may still go about his assigned 
duties, sooner or later they are all 
affected if they remain on board. 

A cynical observation sometimes 
heard by military staffs states: "Lieu- 
tenant colonels work on strategy be- 
cause field marshals love tactics." This 
canard was undoubtedly coined by a 
lieutenant colonel, but it does contain 
a core of truth for those unfortunate 
organizations where operational my- 



opia is habitually an endemic disease. 

Thus, selection of aims is a strategic 
decision. After vigorous appraisal of 
the organization's abilities, the search 
for possible coupling of those abilities 
to markets for them can be narrowed 
by the scanning principle allowed by 
those abilities. When an opportunity 
is discerned, the objectives for con- 
centrated effort can be stated. This 
involves a painful process known to 
experienced strategists as "adjusting 
ends to your means." Objectives are 
more specific than aims, but less spe- 
cific than goals. The setting of goals 
leads to the implementation stage of 
the planning process. 

With specific goals in hand, the 
strategic assumptions known, the skills 
of operations managers and specialists 
are now required. Their task is to sug- 
gest several practical, alternative 
methods for reaching the goals and 
the resources required for each alter- 
native. Organizational structures, per- 
sonnel, finance, technology, equip- 
ment, marketing effort, legal issues, 
measurement systems and time frames 
should be made explicit for final judg- 
ment of the best approach. All must 
understand what this effort is: a sys- 
tematic assembly of a mass of inter- 
related decisions that will be set in 
train in the future. They must take the 
process seriously and not as so much 
waste of time. 

The best way for top management 
to show its seriousness is to allow 
key sponsors of various alterna- 
tives to present their ideas in 
person. Few men of action can convey 
their passion and thought in the sti- 
fling straitjacket of a formal report. If 
they are forced to, many brilliant ideas 
will never be heard by top manage- 
ment. Here is where a competent staff 
of planning experts can fill the gap, if 
they are good at organizing the ideas 
of their insightful but inarticulate col- 
leagues. Also, the planning staff saves 



In dress manufacturing, 

strategic plans reach 

out six months and in 

timber operations, a 

hundred years 



Strategic decisions turn 

the whole ship,and while 

every man on it may still 

go about his assigned 

duties, sooner or later 

they are all going 

to be affected if they 

remain on board 



23 



One of the best 
services of a planning 
group is to have 
available some solutions 
lying in wait for the 
right problem. More 
than one planner's 
reputation is due to 
a good memory for 
ideas others forgot 



Organizational 
measurements are 
dynamic forces; they 
inject power into the 
administrative process 



all the rejected alternatives, and as 
they go on the shelves, a repository of 
good but untimely ideas grows. 

One of the best services of a 
planning group is to have 
available some solutions lying 
in wait for the right problem. Con- 
ditions can change quickly, and if the 
assumptions made at the time of deci- 
sion are not realized, retrieval of some 
ideas from rejected approaches that 
were not right for the time often can 
save the day. More than one planner's 
reputation is due to a good memory 
for ideas others forgot. As George Ber- 
nard Shaw said: "When you use an 
idea from one man, we call that pla- 
giarism; when you use ideas from a 
dozen, that is known as research." 
Planners, like good intelligence men, 
are usually good researchers. 

Implementation should not be al- 
lowed to begin without specification 
of the information system that will 
measure and report what is actually 
happening. As the strategic decision 
and its implementation cut their way 
through the world of men and events, 
methods for detecting and communi- 
cating the inevitable discrepancy be- 
tween intention and realization must 
be planned in advance and well known 
to all involved. 

I believe that neglect of this crucial 
area in the control process accounts 
for more failure than is necessary. 
When it is not paid any attention at all, 
the entire planning process is mean- 
ingless, since the system goes com- 
pletely out of control and is finally 
pulled up only by exhaustion of re- 
sources available. Those organizations 
we call "well managed" or "rapidly 
responsive" have one thing in com- 
mon: a measurement system closely 
tailored to their objectives. 

Organizational measurements are 
completely different from measure- 
ments in the physical sciences. In sci- 
ence, one tries to minimize the effect 



of the measuring devices on the sys- 
tem or factor being measured. The 
goal is to keep the measurement com- 
pletely neutral. Organizational mea- 
surements can never do this, and good 
ones don't even try. Such measure- 
ments are dynamic forces. They inject 
power into the administrative process, 
because they shape the behavior of 
those who will incur censure or re- 
ceive accolades based on the meter 
readings observed by their masters. 
Nothing in management practice 
could possibly be less neutral. 

^^management aphorism says, 
/ % "You get what you measure." 
/ \ This is a homely expression of 
great common sense and implies a 
compliment to higher management: 
'They are smart people up there. They 
must know what they want. They tell 
me what they want and what they are 
interested in by asking me to report 
certain information up the line. They 
also send down questions about some 
of the report items. I assume that other 
information I have, which they don't 
ask for, makes no difference to their 
judgment of me and my people. I am 
no fool, therefore I spend my time on 
what they pay attention to." 

The attitude underlying such an ex- 
pression gives the planning leader his 
best chance to couple his plan to the 
daily life of his organization's people. 
They may not understand all the nu- 
ances of the grand strategy, but they 
understand the recording angel who 
has been given her instructions for 
weighing their individual worth. 
Sometimes conflicting measurements 
are placed on a system with no advice 
for their resolution and balance by 
subordinate managers. There is no bet- 
ter way to demoralize a work force or 
to sabotage a plan. Tacking an extra- 
neous, conflicting measurement onto 
an information system is a favorite 
stratagem of anti-planners. Good plan- 
ners should be as alert for them as 



24 



sappers should be for enemy mines. 
Consider the "correction" phase of 
planning. Also assume that a good 
measure of performance, related to 
goals, is operating. Here the planner 
faces his most demanding work. If he 
has not anticipated the possible condi- 
tions he is setting up for his subordi- 
nate managers, they will be trans- 
formed into moody Danes when the 
measurements flow. The planner must 
have produced some decision rules to 
help the manager judge whether to 
intervene directly in the implementa- 
tion stages or to report that the aims, 
objectives or goals are unrealistic. 
Since these are expressions of top 
management's will, only top manage- 
ment can approve the decision rules 
that can cause them to be ques- 
tioned, relaxed or modified. 

Repetitive decision rules are called 
procedures, and it is a rare or- 
.ganization that is aware of all 
the old and irrelevant decisions fos- 
silized in those venerable binders 
found on every desk. Keeping proce- 
dures up-to-date is a labor even Sisy- 
phus would shirk, but adherence to 
obsolete decision rules produces ma- 
terial for tragic and comic plays. A 
planner usually needs to create new 
procedures if the plan is to be more 
than an updated reprise of an old plan. 
A plan changes things, puts people in 
novel situations and raises anxieties 
everywhere. The price paid for a 
chance to wreak this constructive 
havoc consists of procedures matched 
to the changed environment top man- 
agement is trying to create. If they 
think the price unfair, they do not 
know their business. Lack of a good 
procedure to deal with contingencies 
is an embarrassment to the planning 
staff. To the people trying to cope 
with the consequences of their lofti- 
ness, it is a disaster. 

There is a tacit assumption to the 
planning process: superb, two-way 



communication among the various 
groups. Organizational charts display 
the anatomy of a business, operations 
transform resources and constitute its 
physiology. The inertial forces of hu- 
man nature furnish the endocrine sys- 
tem, which resists change. The com- 
munications links are the nervous 
system. The planning process demands 
a finely adjusted nervous system, 
which both couples it to its outer en- 
vironment and keeps its internal 
organs functioning in harmony. It is 
interesting that the first faults to sur- 
face, when an organization decides to 
embrace the planning process seri- 
ously, are communications problems. 
More writing, investigation, studies 
and theories have been produced in 
criticizing and analyzing this area of 
management than in any other. 

Yet, dissatisfaction with results re- 
mains at a high level. I believe one of 
the reasons to be a lack of attention 
to the imperatives of the planning pro- 
cess, which causes communications 
problems. The will to plan assumes 
the will to communicate. I believe it 
far more likely that those symptoms 
of organizational malaise called "com- 
munications problems" will disappear 
when the disease causing them is 
treated. We use pejorative terms for 
those who treat symptoms, though 
they may indeed have large followings 
of desperate patients. 

The basic disease to treat is simi- 
lar to what physicians call a de- 
ficiency disease. In the practice 
of management the deficiency is that 
of the planning process. Planning is 
not an easy medicine to take. But 
the harsh training to which it disci- 
plines the minds of managers toughens 
an organization for successful engage- 
ments in an uncertain future. 

"What is the value of planning?" 
the practical man may ask. My answer 
can be only another question: "What 
is the value of health?" D 



A plan changes things, 

puts people in novel 

situations and raises 

anxieties everywhere 



The planning 

process demands 

a finely adjusted 

nervous system 



The first faults 

to surface, when 

an organization 

embraces the planning 

process seriously, 

are communications 

problems 



25 



The 

Bell System's 

Role In 

Data Communications 



by 

William M.Ellinghaus 

The Bell System has been involved with computers 
for a long, long time. The very first electrically oper- 
ated digital computers were built at Bell Laboratories 
some 30 years ago, and all modern computers are 
based on the solid-state technology developed at Bell 
Telephone Laboratories. 

We're also large computer users, with more than 
a thousand general-purpose computers in operation. 
As such, we have learned something about their po- 
tential and the importance of communication in real- 
izing that potential. 

It seems to me, though, that there are a number 
of links between the information processing and 
communications industries beyond the obvious need 
for one computer to communicate with another. 

We share, for example, some of the same technol- 
ogy, and that technology is changing rapidly. 

Both industries operate in markets in which cus- 
tomer requirements also are changing rapidly. 

And both industries have a far-reaching impact 
upon most aspects of human activity. 

And so we are locked together. While there may 
be occasional uncertainties, as there are in all success- 
ful marriages, I assure you that the marriage of com- 
puters and communications is one that is going to last. 

The seventies will be a period when Americans 
will increasingly rely on communications to help 
manage their businesses, their institutions and their 
homes, and a period, I might add, during which the 
same can be said for computers. There is a "revolu- 



Mr. EHinghaus became president of the New York Telephone 
Company on September 1, 1970. Previously he was executive vice 
president of AT&T, in charge of rate planning and government 
relations. A native of Baltimore, he is a director of the Ball Corpo- 
ration, the Indiana Bell Telephone Company and the I. C. Penney 
Company. This article is taken from a speech Mr. EHinghaus de- 
livered in September to the Association for Computing Machinery. 





* i 



26 




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^ommimBm^st 



27 



tion" in communications tai<ing place today. Chang- 
ing technology and changing customer requirements 
have helped bring about that revolution, of course. 
But more important has been the impact both have 
had on the structure of the communications industry. 
It is the interaction of these elements that not only 
sets the pace of change in the communications in- 
dustry but brings about as well some of the uncer- 
tainties that — to some observers — seem to cloud my 
industry's future. 

It is to some of these uncertainties that I would 
like to address myself today, because the role of the 
communications common carriers — and the Bell Sys- 
tem in particular — in serving data communications 
users is one of these uncertainties. My purpose here 
today is to leave no question about our desire and 
determination to serve data users just as well as we 
know how — and that we do in fact know how. 

Let's talk first about the capacity of the Bell System's 
switched network now and in the years ahead. 

A fourfold increase 

in the past 10 years, the circuit miles in the nation- 
wide switched network have tripled. Today that net- 
work includes some 650 million miles of telephone 
circuits. In the next 10 years, we foresee a fourfold 
increase. This expansion will not consist of more and 
more of the same, but will incorporate facilities that 
are in the laboratory today, and promise vastly in- 
creased capacity — at lower and lower costs as the 
decade unfolds. Domestic communications satellites 
linked with our terrestrial network figure prominently 
in our plans for the future, as do millimeter wave- 
guide systems and even lasers. 

Bell Laboratories has announced a breakthrough 
in laser technology that may bring the day of laser 
communications ever closer. 

Existing transmission technology is also undergoing 
dramatic change. For example, we have recently 
doubled the circuit capacity of our major microwave 



systems from 6,000 circuits to approximately 12,000 
voice circuits per route. This is four times the capacity 
of most microwave systems that were in service at 
the beginning of the sixties. 

We also have been able to use high-capacity coaxial 
cable systems for more of our long distance routes. 
Multi-coaxial cables in use since 1967 provide 32,400 
two-way telephone circuits in a single cable. Today's 
technology, however, will permit the Bell System to 
increase the capacity of these existing systems to 
81,000 circuits and at the same time put into service 
new coaxial systems with a capacity of 90,000 circuits. 

Digital transmission 

Later in the decade, we will begin installing new 
underground waveguide systems, which will provide 
approximately 250,000 two-way voice circuits within 
a single two-inch diameter pipe. 

Expanding the capacity of the network is essential 
if we are to meet the growth in communications that 
we forecast for the seventies. But we are also well into 
introduction of new transmission techniques, the 
most important being digital transmission. 

A major portion of our short-haul carrier facilities 
today employ a digital system. Our long-haul systems 
can be either digital or analog, and we will be con- 
verting more and more of these systems to digital. 
As for some of our future facilities — the waveguide 
system, for example — they will be entirely digital. 

Digital transmission is important among other 
things because of its application in data communica- 
tions — currently the fastest growing aspect of our 
business. But digital transmission also can be used 
for voice and video messages as well as data, and we 
plan to use it for various kinds of services just as we 
do our analog facilities. This is as it should be. As 
long as we are providing the kind of service cus- 
tomers need at the lowest possible cost, it should ^ 
not make any difference as to what kind of facilities 
are being employed. 



28 



We are, therefore, planning increasing use of dig- 
ital facilities within our telecommunications network 
wherever they are appropriate. 

60-clty network 

We will have, by the middle of this decade, a digital 
network in operation serving approximately 60 major 
cities. Like our other networks, this new network will 
be functionally discrete but physically integrated into 
the existing nationwide network. It will use long-haul 
digital carrier systems operating over both microwave 
channels and coaxial cable and will provide a variety 
of data speeds, including something in every speed 
range that equipment manufacturers say they will 
want or need over the next decade. Call completion 
times — and that includes dialing, switching and ring- 
ing — will be only a few seconds. Ultimately we ex- 
pect to have these setup times under one second. 
For a typical call, error performance on this network 
should be in the range of no more than one error in 
10 million bits. We plan to have this data network in 
operation on a private line basis by early 1974. 

Network is here now 

We have yet another digital network under way that 
also should help meet existing and future data needs. 
The expansion of PICTUREPHONE* service will in- 
volve a high-speed digital transmission system that 
can carry data as well as face-to-face communications. 
We'll have such facilities working next year with an 
eight-city network in operation by 1973, providing 
data speeds at the rate of 1.3 megabits per second. 
But data users don't have to wait until 1975 or 1980 
to put the world's largest information network to 
work. That network is here now, ready to be used for 
transmitting any form of information anywhere and 
anytime. Furthermore, it is a network that is con- 
stantly being modified and expanded as needs change 
and demand grows. 



But can the Bell System meet that demand? I raise 
this question in full awareness that you know as well 
as I that there have been instances where we have not. 
I do not need to remind you, for example, that New 
York is one place where demand soared beyond any- 
one's expectations. Our estimates predicted strong 
growth, but we simply did not anticipate the increase 
in demand that actually materialized. 

I personally feel New York Telephone has done a 
tremendous job in its efforts to make matters right. 
A truly massive construction program — more than 
$1.7 billion in 1969 and 1970 — is under way to pro- 
vide new facilities. Thousands of new people have 
been hired to help handle the continuing heavy de- 
mand for service. 

Data: a $2 billion market 

1 hope, in my new capacity, to help build on the 
solid groundwork already provided until we are out 
of the woods in every exchange. 

1 do not want to minimize the problems some of 
our customers have encountered in New York and 
elsewhere, but it is nevertheless a fact that for most 
of the country and for the vast majority of Bell System 
customers, service has been good. 

In the data field — and I single it out because it is 
an area where we have not been immune from criti- 
cism — we have also been able to meet the demand 
in most instances. Where we have fallen down from 
a service standpoint, it is not — as some people have 
intimated — because of a lack of interest in the data 
market. Currently, data communications account for 
about $450 million of our revenues. By 1980, it is 
estimated it will account for roughly $2 billion of our 
revenues. It is, as you can see, an extremely important 
portion of our business and one that we are deter- 
mined to serve well. 

For example, we have made available about 75 dif- 
ferent types of data sets with some 20 speeds of 
operation ranging from 150 to one-half million bits 



29 



per second. Late last month we introduced yet 
another data set, a low-speed model that carries a 
monthly charge that is less than half the rate of earlier 
low-speed sets. 

For customers who wish to provide their own mo- 
dems, we have provided a variety of data access ar- 
rangements that permit customer-owned equipment 
to be interconnected with our switched network. 

We also have steadily increased data speeds feasi- 
ble on our network. Before the end of the year, our 
direct dialed network will be able to handle 4,800 bits 
per second, while private line voice channels will 
accommodate 10,800 bits per second. For ultrahigh 
speed data needs, we have trial service between four 
major cities, which provides a switched 50-kilobit- 
per-second transmission rate. 

Tenfold improvement 

We are doing other things in the data field, which 
mean better service for our data customers. We have, 
for example, in the last decade made a tenfold im- 
provement in the quality of our transmission paths 
to minimize noise that can affect the error rate of data 
systems. Better performance also is being obtained 
through use of automatic data test centers, dedicated 
maintenance and installation forces, and generally 
improved methods and procedures for servicing our 
many data customers. 

We think we have a pretty good idea of what the 
needs of the data market are — but we're not going 
to rely exclusively on our own evaluations. We have 
nearing completion the most extensive, most detailed 
study of the data market ever made. It is a massive 
effort to discern what the market will require in the 
next decade and what we have to do to meet the 
needs of that market. 

In addition, we have under way a field survey of 
how we can further improve service to data users. 
This survey, along with the market study, will be in- 
valuable in planning future directions of our data 



communications offerings. In summary on this point, 
let me say we recognize that we haven't always been 
on top of the job in serving our data customers. We've 
missed some dates, and there are cases of trouble we 
haven't cleared fast enough. We're not satisfied with 
our performance — but we are bound and determined 
they will be. 

Data user must cooperate 

Serving the data market, however, is not a one-way 
street. It requires the close cooperation of the data 
user and the telephone company. Since we may not 
always have central office facilities available to handle 
a last minute request for data service, we have been 
urging our customers to give us enough time so we 
can plan to meet their data needs. We are also work- 
ing closely with other companies — designers and 
planners of data systems. 

Since we are in the data communications business 
and not the data systems or data processing business, 
we look upon the suppliers of processing equipment 
as partners in supplying service to the customer. We 
are trying to make our communications as flexible 
and responsive as possible to the needs of the users, 
but it is important that the planners of data systems 
make communications an integral part of their sys- 
tems planning from the start. 

While demand has followed technology, both have 
contributed to another aspect of the communications 
revolution. Since the mid-sixties, there has been in- 
creasing discussion of the role of competition in pro- 
viding communications services. A number of regula- 
tory decisions have been addressed to this point, 
including the Carterfone decision. 

That case led to a liberalization of our tariffs that 
permits more interconnection of customer-provided 
communications devices and sharing of our facilities 
among customers. We think these changes are good 
because they will stimulate use of the nationwide 
telecommunications network while at the same time 



30 




31 



providing more options to our customers and more 
business for the manufacturers of communications 
terminal equipment. 

It should be recognized, however, that these tariff 
modifications came about after careful examination 
and consideration of the merits of the changes by all 
interested parties. A similar process is, in our opinion, 
called for with regard to other proposals now before 
the FCC. I am referring, of course, to the proliferation 
of proposals for the establishment of transmission 
systems — in some cases in competition with each 
other — that would parallel routes already served by 
existing common carrier systems. 

Not everybody wins 

With communications technology so widely avail- 
able and the market for communications services so 
extensive, it is not surprising that the communications 
field should become increasingly competitive. There 
are, however, some important questions about the 
role of competition in communications, which must 
be answered if we are to fulfill the promise and po- 
tential of this vital resource. 

Among other things, it should be recognized that 
competition means that not everybody wins. It would 
be unfortunate, it seems to me, were the door to be 
opened to competition in the absence of an under- 
standing that the same ground rules apply to all play- 
ers, including the existing common carriers. 

As far as the Bell System is concerned, we are not 
seeking "protection" from competition. The Bell Sys- 
tem is a highly competitive outfit, and I don't think 
anybody need worry about our ability to take care of 
ourselves in fast company. 

More fundamentally, we sincerely believe, along 
with most other Americans, that where competition 
will serve the public better, as in most instances it 
does, it ought to be encouraged. At the same time, we 
believe quite strongly that the questions of whether 
and where and how competition in communications 



will be permitted ought to be resolved — not with a 
view to preserving the status quo on the one hand or 
on the other creating competition for competition's 
sake — but in the light of the consequences to the 
users of communications services. 



Bell can play either way 

Let no one pretend that the answers to these ques- 
tions are easy. What, for example, will be the impact 
of competition in intercity transmission on the com- 
mon carriers' system of nationwide average pricing? 
And what will be the consequences if the common 
carriers were to charge different rates for calls of the 
same distance, as surely they must be permitted to 
do if competition is to be real competition? 

The Bell System can play it either way. (If we aren't 
allowed to, then it's not competition — it's market 
splitting.) But we think that before we abandon the 
system of average pricing that has worked so well 
over the years, all parties must consider the impact on 
the using public. Would competition serve the broad 
public interest or would it, for example, work to the 
disadvantage of smaller towns and less heavily popu- 
lated states? Would we in the long run be denying the 
public at large the economies of scale that are de- 
rived from shared use of common facilities? 

These are the kind of questions that we think must 
be asked and objectively answered. For our part, we 
are willing to stand by decisions that reflect the pub- 
lic's best interests. 

To conclude, I hope my remarks have demon- 
strated to you both our understanding of — and com- 
mitment to — the links that bind together computers 
and communications. And I hope, too, they have 
demonstrated that the Bell System is very much in 
earnest in its determination to meet the needs of data 
communications users, competitively or otherwise. 
In our network and our technology, we have, we 
think, the resources it will take to do a good job. And 
in our people we have the skills — and the will. D 



32 



Bell 
Reports 



AT&T Proposes System 
Of Domestic Satellites 

Two 10,800-circuit satellites in geo- 
stationary orbit and five earth-stations 
would be added to the Bell System's 
nationwide communications network 
under a plan proposed by AT&T. The 
domestic satellite system would carry 
long distance and Picturephone® calls, 
data services and TV programming. 

AT&T estimates its total investment 
for the system at $64.9 million and its 
annual operating costs at $46.6 million. 

The Communications Satellite Cor- 
poration (Comsat) has agreed to fur- 
nish and operate the two satellites for 
AT&T's use. The second satellite would 
be a backup facility for the primary 
satellite, although it could be used for 
occasional and peak-load service 
when needed. 

The proposed system would supple- 
ment existing microwave radio and 
coaxial cable systems and would add 
an extra dimension of diversity to the 
communications network to ensure 
continuity of service. It would be ca- 
pable of serving Alaska as well as the 
continental United States. 

AT&T estimates the system could be 
operational 30 months after authori- 
zation by the Federal Communications 
Commission. 



Sixth Transatlantic Cable Proposed 

AT&T has filed with the Federal Com- 
munications Commission an applica- 
tion to construct a sixth transatlantic 
cable, citing a 43 per cent increase in 
calling between the United States and 
Europe over a period of only 12 
months. 

The proposed cable would have a 
capacity of 825 voice circuits and 
would extend from Green Hill, R.I., to 
Penmarch, France. It would be con- 



nected by land facilities to Germany. 

The proposed new cable would pro- 
vide needed circuits to Europe, the 
Middle East and parts of Africa. In 
addition, it could serve the Indian 
Ocean area by extension through Euro- 
pean earth stations to the Indian 
Ocean satellite. In its filing AT&T 
stressed need for proper balance be- 
tween cable and satellite facilities to 
assure the public of reliable and eco- 
nomical service. 

The new cable would be con- 
structed, owned and maintained by 
AT&T, the French Ministry of Posts 
and Telecommunications and the 
Deutsche Bundepost in Germany. 



Bell Laboratory Scientists 
Devise Tiny Laser 

A new laser, smaller than a grain of 
sand and capable of operating on or- 
dinary flashlight batteries, has been 
developed by Bell Laboratories scien- 
tists. Such lasers may some day speed 




Brent Sheets, a 6-year-old from Crawslords- 
ville, Ind., demonstrates the child-size arti- 
ficial larynx developed for him by Bell Sys- 
tem engineers. An adult-size artificial larynx 
was made lighter by putting the batteries 
in a separate pack and smaller so it would 
fit under his chin and into his tiny hand. 
The device enabled the youngster to talk 
while recovering from injured vocal cords. 



the transmission of voice, data and 
other information signals in high-ca- 
pacity communications systems. 

The new semiconductor device 
operates continuously at room tem- 
perature, something that earlier semi- 
conductor lasers could do for only 
fractions of a second at a time, limit- 
ing their message-carrying potential. 

With additional development, the 
new device may eventually be able to 
produce a single high-frequency light 
beam capable of transmitting hun- 
dreds of thousands of telephone calls, 
TV signals or data messages. 

When remaining technical prob- 
lems are eliminated, the newtypeof 
laser should be no larger than a pen 
light or cigarette lighter, cost a few 
dollars at most and be capable of pro- 
viding a lifetime of service. 



Laser Beam Carries 
Billion Bits a Second 

Recent advances in new types of high- 
speed electronic circuits by Bell Tele- 
phone Laboratories scientists have 
made it possible to transmit one bil- 
lion bits of information (a gigabit) per 
second over a laser beam. This is four 
to five times the capability of previous 
methods and equivalent to transmit- 
ting 200 books per second, or a library 
of 50,000 volumes in about eight 
minutes. 

Devised by Gerard White for use 
in optical communication systems, the 
new circuits are a significant step 
toward utilizing the large message- 
carrying capacity of lasers. 

A communication system using 
laser light offers the prospect of car- 
rying telephone calls, data messages, 
television and Picturephone® signals 
simultaneously in bundles perhaps 
10,000 times larger than now possible 
with microwaves. D 



@AT&T 



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195 Broadway, New York, N, Y. 10007 



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001600605681 ,,„0133131 59999 f 
LIBRARIAN PERIDOICAL DEPT 
KANSAS CITY PUB LIBRARY 



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Printed in II I A 



)rk Itself, page 1 
Jood in the Gaps, page 10 
Concept Into Service, page 14 
Technology Tomorrow, page 20 
Need for New Rates, page 26 
Bell Reports, page 32 



ev^r . 



January/February 1971 

BELL 




eiei 



re magazine 




"They Really Want to Do a Good Job if Well Let 'em.../' 



The Age of the Industrial Revolution, 
with its assembly lines and fragmented 
tasks, built the greatest corporations 
and nations the world has ever known. 
What is left of that age today is a flux 
of tried and proven traditions and 
anachronisms that are struggling for 
survival against a new age that nobody 
knows quite how to label. The Com- 
puter Age. The Space Age. The Age 
of Aquarius. The Age of Youth Rebel- 
lion. The Age of the Greening of 
America. Regardless of how one at- 
tempts to name this period of runaway 
technology and worldwide icon- 
oclasm, one idea rises above every- 
thing else and shouts to the observer: 
"This is what it's all about!" 

What it's all about is the worth and 
dignity of the individual. 

"Directory Assistance." 

"I want the number of Acme Hard- 
ware." 

"If you care to make a note of the 
number, sir, it's listed in your directory 
as 553-1212." 

Click! 

"Directory Assistance." 

"Yeah, I want the number of Harold 
K. Smith." 

"If you care to make a note of the 
number, sir, it's listed in your directory 
as 555-1217." 

Click! 

"Directory Assistance . ..." 

And so it goes, day in, day out, week 
in, week out. The operator in New 
York, the auto worker in Detroit, the 
telephone repairman in New Orleans, 
the aircraft worker in Los Angeles are 
long tired of performing the same 
monotonous tasks. Many younger ones 
— and some older ones — are thinking 
alike: "This is for losers. I'm going to 
get a job someplace else." Force loss 
figures in the Bell System alone — in 
Plant, Traffic, Commercial and Market- 
ing — show they're doing just that. 
They're leaving. But they're leaving 
what used to be known as one of the 



world's best employers. The paradox 
is that the Bell System still is one of 
the world's best. 

To re-emphasize that fact, this busi- 
ness is leading the way in develop- 
ment of a concept designed to enrich 
jobs at all levels in all departments. 
The concept is known as Work Itself. 
There is nothing new about Work 
Itself. As its practitioners will tell you: 
"It's nothing more than good manage- 
ment — running the job the way it 
should have been run all along." 

Alfred W. Van Sinderen, president 
of Southern New England Telephone 
Company and a proponent of Work 
Itself, defines the concept: 

"It's a planned, continued effort, 
managed from the top, on a company- 
wide basis, to provide satisfying jobs 
for employes and to increase the com- 
pany's effectiveness and health." 

Van Sinderen has appointed an ad 
hoc committee of cabinet members 
and lower level managers to analyze 
Work Itself and recommend where 
and how it is to be expanded in SNET 
operations. Like others involved with 
the concept, the committee empha- 
sizes Work Itself is designed primarily 
for job enrichment. If any other prim- 
ary goal is sought. Work Itself will fail. 

"The purpose of Work Itself is not 
to increase productivity," says Van 
Sinderen. "The purpose is to give a 
man or woman more responsibility ac- 
cording to individual ability and will- 
ingness to take on greater responsi- 
bility. If Work Itself is properly 
applied, the result will be decreased 
turnover because of greater job satis- 
faction. A by-product can be increased 
productivity." 

SNET Business Office Manager Ger- 
trude Edwards of New Haven typifies 
the subtle yet revolutionary restructur- 
ing that Work Itself can engender: "I 
had to change completely, and that 
wasn't easy. I was a boss type. At first 
I had the feeling I was losing control 



of my people and the job. But gradu- 
ally there came this realization that we 
were attacking problems better than 
before. Slowdown in turnover seemed 
to be a direct result. Morale went up 
noticeably. The reps were thinking the 
job through better, and their growth 
potential became more apparent. My 
first line supervisors did less checking 
and had more time to supervise and 
take personal interest in the reps. 
We're really customer-oriented now. 
And our results didn't slide, because 
the reps are more concerned for the 
customer than we ever thought they 
were. If we went back to the old way 
of managing, I'd probably have to ask 
for a transfer. I couldn't take that tur- 
moil and the force losses, which I 
know would return . . . ." 

How does Work Itself work? What 
does it cost? What are the problems 
and obstacles? What will it not do? A 
visit to four locations — Indianapolis, 
Dallas, New Orleans and New Haven 
— answered these questions and some 
others with a few shocks along the 
way. Each location has been involved 
with Work Itself for a little over a year. 




New Orleans installer Emmett Bealer and 
his foreman, L. J. Holmes, check signals as 
a new day gets under way. 



by Marco Gilliam 



INDIANAPOLIS: Paul Weakley, 
genera! personnel supervisor at Indi- 
ana Bell, says: 

"There are three myths in our busi- 
ness. One says there's no room for 
failure or error. Another says you can't 
try anything new. And the third says 
you must know all that's going on in 
your shop." Weakley is known as a 
"key man" in implementation of Work 
Itself. He was trained by the personnel 
group at AT&T headed by Dr. Robert 
N. Ford, father of the Work Itself con- 
cept in the Bell System. 

As Weakley explains operation of 
the concept, you first take a look at 
the work, itself. In Directory Compila- 
tion, Indiana Bell had 16 girls perform- 
ing 21 tasks in producing a directory. 
"So we set out to see how we could 
improve the job. We had 'greenlight' 
sessions, where everyone involved 
with the job was encouraged to air 
their criticisms and their ideas. And 
we listened to them. We ended up 
with a different work module. Instead 
of 16 girls doing one book, we had 
one girl doing one book with nobody 
checking her work," said Weakley. 

Bill Evans, district marketing super- 
visor, explained how once the new 
work module was formed, the biggest 
problem involved training the girls 
selected to do the work. "We finally 
decided to turn them loose on their 
own for three weeks and let them trajn 
themselves by observing and talking 
with the other girls on the job. Once 
they demonstrated they were ready, 
we stayed out of their way but within 
calling distance if they needed help." 

The directories the Indiana Bell 
clerks compiled were small city books, 
but the girls were responsible for both 
white and yellow pages, including Na- 
tional Yellow Pages Service and bill- 
ing. With nobody checking their work, 
here were the results: two perfect 
books, one without billing errors. The 
other books had lower error rates than 




previous books. Today eight girls in 
the Indianapolis office are compiling 
four books each every year. Force 
losses in the office are down. 

"This thing is based on trust," says 
Evans. "We trust them to do the job, 
and they trust us not to nail them if 
they take a risk or make a mistake. 
Once that two-way trust is developed, 
you're on your way. Without it, you 
can't even get started." 

When asked what she doesn't like 
about the Work Itself concept, one of 
the utility clerks replied after some 
thought: "I go home from work ab- 
solutely exhausted. But I'll have to say 



my husband and I both were pretty 
proud when I brought my finished 
book home with a note of commenda- 
tion from my boss." Would she return 
to the fragmented work concept of 
directory compilation? "No," was her 
immediate reply. 

DALLAS: The problems of growth 
challenge Southwestern Bell to per- 
petuate the kind of telephone service 
Dallasites are used to — the best. 

General Traffic Manager Bill Hoff- 
mann sees Work Itself as a useful tool 
in doing the job. He illustrates his be- 
lief in the concept by recalling a recent 
visit to an old friend who is chief 



Floyd Bernard, South Central Bell state plant person- 
nel supervisor, left, makes a point in Work Itself 
workshop. Center: Bernard, "key man" for Work It- 
self in New Orleans, draws out ideas in "greenlight" 
session. Assignment foreman Charles Kenney, below, 
discusses his work and its problems with I. D. 
Howard, Ir., general operations manager. New 
Orleans. Bottom: Repair foreman Cerald Wade dis- 
cusses success of Work Itself motivational techniques. 




operator in a small town near Dallas: 
"We were standing there in the unit, 
chatting about the old days, and I was 
looking at the board, which had may- 
be 15 or 20 positions. And I said, 'What 
does an operator here do when she 
wants a drink of water?' My friend 
gave me a quizzical glance. So I asked 
her to take me, step by step, through 
the process. 

"'Well,' she said, 'the operator sig- 
nals the service assistant and asks per- 
mission to get a drink. The S.A. gives 
her permission, the operator unplugs 
her headset, takes it off, goes to the 
water fountain, gets her drink of water 



and returns at once to the board.' 

" 'Now, Mary,' I said, 'you have two 
grandchildren, about 6 and 7, don't 
you?' 

"'That's right,' she said. 

"'What do they do at home when 
they want a drink of water?' 

"'They go get it,' she said. 

"'You mean they don't ask their 
mother or daddy or you if they can?' 

" 'Why, no. Now wait a minute here! 
There's a difference. We're running a 
business. We can't just let people get 
up when they feel like it and go to the 
water fountain.' 

"About that time the service assist- 



ant said: 'You know, whenever they 
ask me for permission, I always give it. 
They don't ask unless they know they 
can be spared.'" 

Hoffmann continued. "I asked them 
about emergency relief and the pro- 
cedure followed to get an aspirin, and 
the more we talked, the more the chief 
and her associates began to see poten- 
tial in a more liberal procedure. So 
they relaxed some rules, and trips to 
the water fountain and the rest room 
and the medicine cabinet declined." 

All of which calls to mind Bob Ford's 
so-called "Fourth Law," which says: 
"People need certain kinds of relief 



less when they're allowed to have it ." 

Bill Hoffmann explained one of the 
first hurdles faced in starting Work 
Itself in Dallas. As in the case of SNET's 
Gertrude Edwards, "We had to change 
me," he admitted. "I was too set in 
my ways. I had to become more at- 
tuned to new values. People express 
themselves differently on the job to- 
day. The paycheck isn't as important 
to them. What is most important is 
that they want to do a good job. 

"We have found in our exit inter- 
views that operators are quitting be- 
cause, as they put it, 'Good operators 
quickly become nobodies! That is, 
they're taken for granted, nobody no- 
tices them, they don't get enough at- 
tention or recognition. This is a terri- 
ble indictment of our department." 

Hoffmann insists unless the right 
climate is created for Work Itself, it 
won't work. Trust is needed, up and 
down the lines of organization. Work 
Itself cannot be forced on anybody, 
management or nonmanagement. It 
has to take hold gradually, naturally, 
with quiet, persistent encouragement. 
"Your people have to know you mean 
it when you say to them, '1 want you 
to take hold of your job and run it, 
manage it, take some risks, try some- 
thing new, listen to your own sub- 
ordinates,'" he says. 

Work Itself in some ways seems to 
ease the job of the supervisor while 
simultaneously toughening the task. 
"Take gum chewing, for example," 
says Hoffmann. "It's easy to set a 
blanket rule that forbids gum chewing 
among operators. But it's another story 
to say this operator can chew gum 
on the job, and that one can't. The 
new rule allows an operator to chew 
gum as long as it doesn't interfere with 
service. Many can do it, but others 
can't, and the supervisor must decide 
on each individual. Just don't believe 
it if somebody says Work Itself is loose, 
permissive management. It isn't." 



Bill Hoffmann believes there are 
basically two types of people who will 
have a hard time adapting to Work 
Itself — the person who cannot dele- 
gate and trust his subordinates to run 
the job, and the person who won't ac- 
cept more responsibility. There are, 
of course, plenty of such people 
around. How did these types evolve? 
"Partly because of conventional man- 
agement," thinks Hoffmann. "Every 
practice and procedure has been 
spelled out for them, and they have 
been encouraged to check with their 
supervisor before making any deci- 
sions or new moves." 

Weldon Meers, division traffic su- 
perintendent, Dallas South, says: "One 
of the greatest things about this con- 
cept is that it completely destroys level 
consciousness. A stranger could walk 
into a Work Itself greenlight session 
and he couldn't tell the general traffic 
manager from a first line supervisor. 
The district people run these sessions. 
Once we let them know we mean 
business with Work Itself, they be- 
come its most enthusiastic supporters. 
They're the ones who make it work. 
And they're running the job." 

Meers and Ben Miller, key man for 
the Dallas Work Itself, led a tour of 
two operator units testing the concept. 

Initial shock: The scene was one of 
operators seated in a variety of pos- 
tures, many in slacks, some chewing 
gum, talking with each other, visiting 
the water fountain. An occasional 
sound of quiet laughter accentuated 
a pervasive air of pleasantness. 

Subsequent shock: The results of 
Work Itself in Dallas Traffic. To quote 
Budd Reinhold, vice president — per- 
sonnel for Southwestern Bell: "The 
service indices in the four achieving 
(Work Itself) offices for April-Novem- 
ber, 1969, were compared to the same 
period in 1968 (before Work Itself). 
Each office raised its index one point 
during the period. There was no ser- 



vice slippage in those offices as a re- 
sult of the trial. The operators' pro- 
ductivity in the toll achieving offices 
increased 9 per cent in the eight- 
month period over the same period in 
1968. During this same period, the toll 
control offices (those without Work 
Itself) improved 6 per cent. The di- 
rectory assistance office having Work 
Itself improved its productivity 9 per 
cent during this period, while the di- 
rectory assistance office that did not 
have Work Itself dropped 1 per cent. 

"Putting this improvement in the 
Work Itself offices on an annual basis, 
a $56,000 savings would have resulted 
in the control offices alone, had they 
obtained the same rate of improve- 
ment" said Reinhold. "If all offices in 
the Dallas Area had been able to use 
Work Itself to improve operator pro- 
ductivity at the rate these four offices 
were able to do, an annual savings of 
$370,000 would have occurred," he 
said. Reinhold pointed out another 
impressive statistic: 

The achieving offices lost 46 fewer 
operators in the eight-month trial 
period than the control group. That's 
69 people on an annual basis, for an 
annual savings, according to Reinhold, 
of $69,000. If the trend in the loss rate 
in all offices in the Dallas Area had 
been the same as in the four achiev- 
ing offices, a savings of $460,000 
would have been accomplished. 

Reinhold pointed out the increased 
productivity, as indicated in calls per 
hour handled by each operator, was 
probably related to improvement in 
force losses, therefore the two savings 
figures should not be combined. He 
noted an increase in the number of 
written commendations received in 
the achieving offices. 

Another shock was generated in 
conversation with a pert group chief 
operator in a Work Itself unit. She 
explained how each operator is ap- 
proached individually "to see how her 



own particular job can be enriched." 
Said the group chief: "Sometimes they 
come to us and say, 'You tcnow, my 
girlfriend is keeping her own attend- 
ance report. I'd like to try it.' Well, 
we say, 'Let's not talk about your girl- 
friend. Let's talk about you. Do you 
think you can do it without interfer- 
ing with the service you give the cus- 
tomer? Can you do it accurately?' If 
she says she can, and she has demon- 
strated good ability and attitude on 
the board, we let her try it. We've 
found when an operator keeps her 
own attendance report, she usually 
apologizes for an absence or tardiness 
and promises to improve. And she usu- 
ally does. Some of them even keep 
their own records on numbers of calls 
handled, or board loads. And they 
start competing with themselves — 
each girl with herself — to improve. 
We even have our own index score 
sheets where an operator can rate her- 
self daily and weekly on productivity, 
attendance, manner — the whole job — 
and come up with an overall perform- 
ance score." 

"Do you check on their figures, such 
as attendance?" 

"Not always, no." 

"Aren't you afraid some might tend 
to fib a little?" 

"Certainly not! Why should they?" 

NEW ORLEANS: South Central Bell in 
New Orleans has taken the Work Itself 
bull by the horns, while many watch 
from a respectable distance. They've 
installed the concept in the Plant De- 
partment. And it's working. This is the 
department with the most people, the 
most indices and measurements, the 
most controls. And this is where Work 
Itself may well be needed most. 

J. D. Howard, Jr., general operations 
manager in New Orleans, lays it on 
the line with Southern charm and suc- 
cinctness: "With Work Itself, we run 
the system — it doesn't run us." The 




Above, Installation foreman L. I. Holmes gives stack 
of service orders to Installer Emmett Bealer, who will 
then be on his own for the rest of the day. Below, 
top: Bealer needles boss for "sending me out on a 
rainy day again." Below, bottom: Final checkout of 
truck supplies. Right: Day's first installation job. 





key man to Work Itself in New Orleans 
is Floyd Bernard, state plant personnel 
supervisor. Like key men in other com- 
panies, he ran the greenlight sessions 
for first level plant supervisors. Unlike 
other departments, plant did not at- 
tempt to apply Work Itself to craft 
people until first level supervisors and 
above had it in operation. Although 
Bernard is an ombudsman-coordinator 
of sorts, he takes an active part mainly 
when called upon for objective ad- 
vice or for interviewing participants. 

"One of the things we've done," he 
says, "is extend the greenlight sessions 
from two to three days. We need the 
extra time in order to greenlight the 
foreman's job as we do the craft job. 
We initially held two separate green- 
light sessions, and each group came 
up with a list of job problems and pos- 
sible solutions. 

"There was 75 per cent agreement 
between the two lists. One list was 
composed by foremen and the other, 
by their supervisors. That really made 
some people sit up and take notice, 
because for the first time the people 
who know the job best had been moti- 
vated to discuss their work and sug- 
gest improvements. The agreement 
between the two groups substantiated 
their suggestions. It's amazing what 
happens when you get people to stop 
thinking out of bell-shaped heads." 

Repair Foreman Gerald Wade is an 
old hand at both craft and first line 
management in New Orleans: "My 
people tend to thank me for this im- 
proved work situation. They don't 
know anything about Work Itself as a 
formal effort, because we haven't 
talked to them about what it is. But 
what they don't realize — and I've got 
to make them realize — is that it's this 
company, not me, that's made this 
possible. 

"For example, we have a repairman 
on our force who'd come in, and we'd 
give him a couple of repair orders, and 



he'd go out and work them and then 
work three or four more a day. He did 
the usual amount of complaining over 
the years, and so when we got Work 
Itself going, I asked him how he 
thought he could make his job better. 
Now we give him a stack of orders in 
the morning and a Bellboy* in case 
we have to call him for some emer- 
gency — and we turn him loose. He 
works between 20 and 25 orders a day 
now, and he doesn't have to go back 
and rework hardly any. He maps his 
own route and calls ahead to make 
sure the customer is going to be on 
the premises. And now he's asking for 
more work. He told me the other day 
this is the first time in his life that he's 
been treated like an individual." 

Assignment Foreman Charley Ken- 
ney was asked what his reaction would 
be if Work Itself were stopped. "Well, 
they could stop support of the con- 
cept, but nobody could ever stop me 
from running my job the way I've 
learned to run it and to take care of 
my people the way I've learned to. I 
know my people better, and they 
know me better. We work things out 
together and do the job better. Why 
should anybody want to stop some- 
thing like Work Itself?" 

The Plant people in New Orleans 
feel the first payoff from Work Itself 
comes in decreased force losses. 
Morale improvement is discernible. 
Improved productivity is more slowly 
realized, although in some work 
groups results are exciting. For exam- 
ple, in 1969 in the New Orleans West 
Bank Installation Croup, there were 
four resignations. Operating accord- 
ing to Work Itself, there had been one 
resignation in the group as of Novem- 
ber 1, 1970. Sales results in the group 
for July, 1970, were 370 per cent above 
January's results — a division record. 

About 70 craftsmen are included in 
the group, and of those only a few 
have had Work Itself items introduced 




"Sometimes I get more orders worked in rainy 
— I move faster between the truck and ttie work 
. . . I just don't like wet clothes . . . I like the job 
mean, they let me work the orders in the way I tl 
give the best service . . A wall phone would lo 
here, and it'd save you running to the bedroom. Yi 
you never heard of an extension phone? . . . I usi 
ahead to let the customer know I'm coming ar 
sure the customer is going to be there. 'Course, 
hard time doing that when the customer is wa 
new service . . . Don't get me wrong. I don't a/w 
my lunch this way. Sometimes, though, if a job 
longer or I can see a way to work an extra order 
I'll grab a takeout sandwich and stick with the 





to their jobs. "But," says Plant person- 
nel man Floyd Bernard, "all craft em- 
ployes were indirectly affected 
because of their foremen's greenlight 
involvement in the program and sub- 
sequently improved management. You 
have to consider this is a long-range 
program. We'll have more greenlight 
and follow-up sessions that will result 
in other ways of enriching the job for 
both craft and management." 

Greenlighted items, if agreed to by 
those to whom they're offered, are 
tried out gradually, on an individual- 
by-individual basis with regular feed- 
back through immediate supervisors 
and Work Itself key men to see how 
they're working out. Here is where the 
key man is invaluable, because of his 
objectivity and alien identity, which 
elicit information of greater depth and 
candor than a supervisor could ever 
hope of gleaning. 

In New Orleans, they hold special 
hope for Work Itself as an incentive 
to the young. One Plant supervisor 
expressed this view: 

"Back when I came with the com- 
pany, when a fellow was given a task 
to do, he did it and didn't ask why. I 
knew I'd better do my job, or I'd get 
rapped. I did my job and got paid for 
it and promoted. But with these young 
people today, you don't just tell them, 
'Do this here job, son, or you'll get 
rapped,' cause they'll tell you right off, 
'Go on and rap me. I'll go to work for 
somebody else.' And they will. Even 
with jobs as tight as they are, some of 
these youngsters had just as soon take 
a walk as look at you. They'll pump 
gas and live in a tent in the park just to 
prove they're free and independent. 
But the hell of it is, they really want 
to do a good job if we'll let 'em. . . ." 

NEW HAVEN: If Work Itself were early 
Christianity, Fran Jessey, Southern New 
England Telephone's coordinator for 
the concept, would be John the Bap- 




"With a secretary like that, Mr. Tate, I'd 
say this office needs a Trimline phone. 
'Course, I'll put the plain ole black one 
in, if you really want it . . . Well, they 
bought the Trimline. The least I can do is 
fix the Call Director while I'm here . . . The 
best part of the day. No more orders. See 
you in the morning." 




tist: "The problem is, people lose indi- 
viduality in the Bell System. We get 
brainwashed, locked into tradition. 
Work Itself helps break traditions that 
no longer serve us. Now what we need 
to assure success of this concept is 
team building. There is no lasting fea- 
ture of Work Itself if key supporters 
leave. So we need to build teams 
throughout the company, have pri- 
vate — very private — leveling sessions 
with plenty of candid talk between 
one another aimed at getting at prob- 
lems caused by inhibitors. 

"But right now I'd say our trust level 
is low. We're afraid to talk candidly 
with one another, and this is unfortu- 
nate, because the key word in this 
concept is trust. So we have to build 
trust as we build teams." 

Southern New England Telephone 
introduced Work Itself through a strat- 
egy different from that of other com- 
panies. Instead of injecting the con- 
cept vertically and working toward a 
lateral contagion, SNET did the reverse. 
For example. Southwestern Bell sought 
out an area where the concept was 
welcome — or could be made wel- 
come — from department head level 
through first line management. The 
company is now introducing the 
demonstrated concept in other depart- 
ments and areas. SNET people intro- 
duced Work Itself to various depart- 
ments throughout the company where 
they found acceptance at a particular 
level or series of levels. Further lateral 
expansion is under way, but the SNET 
people are betting their main effort on 
the concept's growth up and down the 
lines of organization. 

"We're convinced that for our own 
company, this is the best way to do 
it," says Jim Rourke, SNET education 
supervisor. "Admittedly, this makes it 
more of a challenge to the manager 
who has to take risks and let his peo- 
ple take risks, perhaps without full sup- 



port from above. But it's working out, 
because how can you argue with re- 
sults? The district-sized group is a nat- 
ural for Work Itself to get a foothold, 
and in my opinion the people in a dis- 
trict that has the concept in operation 
derive more management develop- 
ment from it than they do from our 
conventional classroom training." 

SNET people involved with Work 
Itself agree the time is ripe for a 
change in basic management style. 
Today's employe population attitudes 
and the need for increased produc- 
tiveness demand it. President Van Sin- 
deren wants at least one Work Itself 
activity "in every division man's back- 
yard by next year. We need it, because 
we need more long-range planning, 
and we need to translate objectives 
into short-range goals. Work Itself is a 
tool to be used in this translation," he 
says. "We need to revise and revitalize 
our objective-setting process. And we 
must manage our business with people 
goals. If we don't improve people, we 
won't produce any results. Maybe a 
better name for this concept would 
be People Themselves." 

While Work Itself has been concen- 
trated on line management positions 
and craft, some staff people around 
the Bell System have been introduced 
to the concept. As an example, Wis- 
consin Bell Public Relations has green- 
lighted a number of its jobs, including 
preparation of employe information 
material and writing of external news 
releases. Staff experiments also are un- 
der way at AT&T Headquarters. 

At Indianapolis, Dallas, New Orleans 
and New Haven the cost of imple- 
menting Work Itself was the same: 
much time, virtually no money. The 
toughest part of getting started was 
breaking away from the day-to-day 
job, which meant turning the business 
over to sub-district or acting first line 
supervisors for a day or two. But with 



development of the concept in each 
work group, more time for greenlight 
sessions became available, and first 
line supervisors and craft people dem- 
onstrated ever more effectively that 
they could, indeed, tend the store 
while the boss was out. As recognition 
for job excellence, nonmanagement 
employes have been honored as busi- 
ness office supervisor or group chief 
operator for a day. 

Some developed an interest in man- 
agement, while others, though they 
enjoyed acting as supervisors for a 
few hours, found they preferred their 
regular jobs. Almost all demonstrated 
they could handle the challenge, at 
least for awhile. This method of rec- 
ognition for a job well done proved 
helpful in enabling supervisors to at- 
tend greenlight sessions to discuss fur- 
ther work improvements. Experience 
shows that the payoff from Work It- 
self can have a snowballing effect. 

Work Itself experts emphasize the 
concept cannot be put into operation 
on an impulsive or informal basis. It 
requires weeks of planning, selling and 
development of a favorable atmos- 
phere. Above all it requires the pres- 
ence of a trained key man to run the 
workshops and help with followup 
items such as feedback from employes, 
exit interviews and subsequent green- 
light sessions. Improper implementa- 
tion of the concept, or even proper 
implementation with the wrong goals, 
all but guarantees failure. 

"The supervisor who really cares 
about his people," says one division 
head, "is going to have relatively easy 
sledding with Work Itself. You have 
to ask yourself, do you care about 
your people or only your own career? 
The simple truth is, if you take proper 
care of your people, they'll take care 
of you. Look at the Bell System. What 
is it? Just a network? No. It's people. 
They are the whole ball game." D 



Finding 

the 

Good 
in 

the 

Gaps 

by Robert D. Lilley 



Even among the more sober- 
minded observers of modern 
youth, there is considerable dis- 
agreement as to just what has pro- 
duced the differentness that adults 
perceive in their offspring today. Inter- 
pretations range all the way from com- 
plex psychological theories through 
"fear of the bomb" to simply the "bad 
influence of TV." 

For example, the Cox Commission 
Report on the student movement at 
Columbia University concluded that: 
"The present generation of young 
people in our universities is the best 
informed, the most intelligent and the 
most idealistic this country has ever 
known." 

But William V. Shannon, a member 
of the editorial board of the New 
York Times, feels that today's college 
youth are "ignorant of university 
ideals," "emotionally disturbed and 
prone to violence," or they are "polit- 
ical totalitarians." 

On the other hand, Robert Kennedy 
felt: "Not since the founding of the 
Republic . . . has there been a young 
generation of Americans brighter, bet- 
ter educated or more highly motivated 
than the present one." 

And yet the mass media — the tele- 
vision networks and the weekly news 



The author is an executive vice president 
and a director of AT&T. He is a fornner 
president of New jersey Bell, and a former 
vice president of Western Electric. Mr. Lil- 
ley holds three degrees from Columbia, 
and honorary degrees from Rutgers and 
the Newarl< College of Engineering. He is 
a trustee or director of numerous organiza- 
tions, including Columbia University, The 
Chase Manhattan Bank, R. H. Macy Co., 
and the Pacific and Pacific Northwest Bell 
telephone companies. In 1967, while head- 
ing New jersey Bell, he served as chairman 
of the Governor's Select Commission to 
Study Civil Disorder. 



10 



magazines in particular — have fre- 
quently pictured the modern young 
person as violent, irrational and anti- 
democratic. 

We are bombarded, then, with a 
multitude of conflicting views and 
opinions. But for all the controversy, 
we can at least begin to dimly discern 
what has wrought the change in 
American youth, what has caused so 
many of them to reject the values and 
life-styles of their elders, and, most 
important, what needs to be done to 
restore understanding. 

That opinion is based in part on a 
number of studies conducted by the 
Bell System over the past two to three 
years, but even more so on the fact 
that those who are best trained in the 
psychology of modern youth are tend- 
ing more to concur in their views as to 
the root causes of the Generation Gap. 
The work of men like Yale University 
psychiatrist Kenneth Keniston, Dr. 
Bruno Bettelheim of the University of 
Chicago and Anthony G. Athos of the 
Harvard Business School — to name 
only three — has shed considerable 
light on the problem, not only as it 
confronts parents and teachers, but 
also as to the ways in which it will in- 
creasingly affect the conduct of busi- 
ness. It is helpful to summarize some 
of their key findings and concepts. 

First, the matter of upbringing. 

These experts — Dr. Keniston, in 
particular — point out that grandpar- 
ents of today's 20 -to 30-year-olds gen- 
erally were born around the turn of the 
century. "They were," Keniston writes, 
"the heirs of a Victorian tradition as 
yet unaffected by the value revolu- 
tions of the 20th century, and they 
reared their own children in families 
that emphasized respect, control of 
impulse, obedience to authority, and 
traditional values of hard work, de- 



ferred gratification and self-restraint." 
But their children, the parents of 
today's youth, were influenced out- 
side their families by a variety of pro- 
gressive, liberal and even psychoana- 
lytic ideas that contrasted sharply with 
the values of the Victorian Age. More- 
over, during the 1930's, they were ex- 
posed to or involved with ideas of the 
New Deal, and sometimes to more 
radical interpretations of man, society 
and history. 

Revert to childhood 

Major changes in values, when they 
occur in a single generation, are likely 
to be far from complete. To have 
grown up in a family where unques- 
tioning obedience to parents was ex- 
pected, but to rear one's own children 
in an atmosphere of "democratic per- 
missiveness," requires a change of 
values more total and comprehensive 
than most adults can achieve. There is 
a constant tendency to revert to prac- 
tices of one's childhood. The genera- 
tion who fathered today's youth are 
products of the Great Depression, 
products of an experience that tended 
to reinforce the Victorian necessities 
for hard work, deferred gratification 
and self-restraint; the importance 
above all else of getting and holding 
a steady job, of achieving security, of 
acquiring material possessions. 

Thus, this generation's children are 
likely to sense a discrepancy between 
their parents' avowed values and pa- 
rental basic instincts. A special credi- 
bility gap has opened between the 
generations. "Our parents," so many 
of today's young people are saying, 
"are hypocrites. They don't practice 
what they preach." 

Keniston points out, for example, 
that perceptions of parental hypocrisy 
occur today with regard to racial, reli- 



gious and political matters. How many 
of us, he asks, support racial and reli- 
gious equality in principle, but become 
violently upset when our children as- 
sociate intimately with someone from 
another race or religion? How many 
of us support in principle the cause 
of political freedom, but oppose our 
children's involvement in controver- 
sial issues lest they "jeopardize their 
records" or "ruin their later careers"? 
Today's youth seem to be saying, in 
effect: "I will not think as my parents 
thought but as they told me to think. 
1 will not live as they lived but as they 
told me to live." 

What the older generation has done, 
the psychologists feel, is to create its 
own critics on a mass basis— that is, to 
create an ever-larger group of young 
people who take the highest values of 
society as their own, who internalize 
these values and identify them with 
their own best selves — and who are 
willing to struggle to implement them. 

The problem, then, stems not so 
much from the difference in our years 
as from a fundamental difference in 
our times. Our life experiences, as the 
parental generation, have been so radi- 
cally different from those of our chil- 
dren that it should not really surprise 
anyone that our viewpoints and per- 
sonal philosophies are also different. 
But there is an additional factor that 
helps account for the differentness of 
today's young people. I refer, of 
course, to the headlong pace of the 
ubiquitous social and technological 
change of the past three decades. 

Inherit a new world 

The world has changed more in the 
lifetimes of our children than in many 
previous centuries. They have wit- 
nessed, among many changes, a great 
upsurge in striving of minority groups 



11 



for social and economic equality; an 
epidemic of international conflicts; 
the steadily increasing role of govern- 
ment in all our lives. They have been 
privy also to the first glimpses of man's 
ultimate control over his environment; 
unleashing of thermonuclear forces; 
extension of the electron to virtually 
every human activity; probings into 
the secrets of life; a reaching out to 
the moon and the planets. 

Our young people are inheriting, 
then, an unbelievably exciting, but 
also a new kind of world — a world 
that is wholly different from thatwhich 
an older generation has known. Is it 
any wonder that communication be- 
tween us is difficult? The wonder is 
that we communicate as well as we do. 

Yet I think there are ways to bring 
us closer together. Whatever the dis- 
tance between us, there is a bridge 
that can bring meaning and purpose 
to our dialogue if we both will try for 
it, if we both will understand that 
forces beyond our control have al- 
tered the traditional relationship be- 
tween us. I suspect, moreover, that we 
of the older generation will have to 
take the initiative in constructing that 
bridge. To explain why, let us refer 
once again to the research findings of 
people like Keniston, Bettelheim and 
Athos, especially as they apply to the 
needs of business and industry. Here, 
in summary, is what the findings seem 
to indicate. 

Drop out or hang in 

Although neither hippies nor mili- 
tant radicals are "representative" of 
the midstream 80 to 90 per cent of 
young people from whom business 
and industry must draw their future 
leaders, it is these fringe groups that 
are helping to give the younger gen- 



eration its distinctive mood and shap- 
ing its thinking. We should recognize 
that hippies and radicals ~ or "revolu- 
tionaries," as they now like to call 
themselves — are in some ways similar 
and in some ways vastly different. They 
are similar in that both are in strong 
reaction to the so-called establish- 
ment, and in that both seek alterna- 
tives to the institutions of middle-class 
life. They are different in that hippies 
have dropped out of society, while 
the radicals have not. Far from drop- 
ping out, the radicals are determined 
to change and redeem society. 

The flexible generation 

But for all the differences, the two 
groups share a number of attitudes, 
attributes and opinions that they have 
managed to impress upon their more 
conventionally-minded contempo- 
raries. There are six in particular. 

First, today's youth display a special 
personal and psychological "open- 
ness." That is, they are far more flex- 
ible than previous generations, far 
more willing to experiment with new 
life-styles, and far less committed to 
traditional ways of doing things. As 
just one consequence of this open- 
ness, we are finding that their con- 
cepts of their personal future and their 
lifework are ever more hazily defined. 
Hence, they are more inclined than 
were their elders to shop around, to 
move from job to job and from firm 
to firm before settling down to a per- 
manent career. As a corollary, they are 
less interested in security and making 
money than in having an opportunity 
to do challenging work, to serve man- 
kind and to be creative. 

Second, young people view them- 
selves primarily as members of a gen- 
eration rather than of a cross-genera- 



tional society. They identify with their 
contemporaries as a group and look 
upon their elders almost as a different 
specie. There is a feeling of psycho- 
logical disconnection from previous 
generations, their life situations and 
ideologies. The older ideologies are 
thought of as exhausted or irrelevant. 

The quality of l-thou 

Third, today's youth care most deep- 
ly about the creation of loving, inti- 
mate, open and trusting relationships 
between small groups of people. The 
ultimate measure of a person's life is 
felt to be the quality of his personal 
relationships. The greatest sin is to be 
unable or unwilling to relate to others 
in a face-to-face, I-thou situation. 

Fourth, modern young people have 
a strong capacity for involvement and 
identification with those who are 
superficially alien: the peasant in Viet- 
nam, the poor in America, the non- 
white, the deprived and deformed. 
Racial barriers are minimized or non- 
existent, and the ultimate expression of 
unity between races — courtship and 
marriage — is considered basically nat- 
ural and normal by a larger proportion 
of the young. 

Fifth, the depersonalization of life 
as expressed in commercialism, career- 
ism, bureaucratization and the com- 
plex organization of modern institu- 
tions — business, in particular — seems 
intolerable to today's young people, 
who seek to create new forms of as- 
sociation and action to oppose the 
technologism of our day. However, it 
is not the material but the spiritual 
consequences of technology that 
youth opposes. They adamantly reject 
contamination of life by what they 
consider the spurious values of tech- 
nological organization and production. 



12 



Last, young people today are com- 
mitted to a search for forms of organi- 
zation and action where decision mak- 
ing Is collective, where arguments are 
resolved by "talking them out," where 
self-examination, interpersonal criti- 
cism and group decision making are 
fused. The objective is to create new 
styles of life and new types of organi- 
zation that humanize rather than de- 
humanize, that activate and strengthen 
the participants rather than undermine 
or weaken them. 

The impact of the future 

These attitudes and attributes are 
not all bad, by any means. Indeed, 
many, if not most, are admirable. But 
there can be no question that they will, 
in time, have an unsettling effect on 
those institutions of modern life that 
are unable or unwilling to accept the 
consequence of change. 

The impact of changing youth atti- 
tudes already is being felt in the busi- 
ness world. But, for all the problems 
we are experiencing today, there is 
every reason to believe that they will 
be vastly multiplied in the years ahead. 
For example, what will be the effect 
upon business of employing larger 
numbers of young managers who 
identify strongly with their contempo- 
raries as a group and consider their 
elders to be hypocrites? Who tend to 
demand face-to-face relationships and 
even confrontation with the leaders 
of the business establishment? Who 
consider commercialism, careerism, 
bureaucratization and the complex 
organization of business intolerable? 
Who oppose the bigness, stratification 
and hierarchical structure of business 
and industry? And who feel that the 
best way of securing change is by 
demonstrating one's personal convic- 



tions in the strongest way possible? 

There are those who feel that most 
young people will modify their views 
once they get out into the "real world" 
and face the realities of making a liv- 
ing and raising families. Perhaps they 
will. But there were those, also, who 
felt that the young labor activists of 
the 1920's and 1930's eventually would 
modify their views — or, alternatively, 
that they could be beaten into sub- 
mission. But, of course, it didn't turn 
out that way. It would seem only pru- 
dent, therefore, to assume that the 
changing attitudes of young people 
will indeed have a profound influence 
on the future of American business 
and to take steps now to see to it that 
the influence is for the better rather 
than for the worse. The natural ques- 
tion is, "But what steps?" 

The new human relations 

I think the best way to attempt an 
answer is to describe briefly some of 
the steps the Bell System is taking. 

An initial step was creation of the 
job I now hold. Its significance lies 
in the fact that, for the first time, 
we have combined under a single 
executive vice president, who is also 
a member of the AT&T board, all those 
functional organizations that are con- 
cerned directly with human relations. 
They include, among others, the Per- 
sonnel, Information and Environmen- 
tal Affairs departments, the latter being 
a relatively new organization. 

AT&T took this step for a number 
of reasons. But none carried greater 
weight than the growing recognition 
that the changing attitudes of younger 
employees, including especially 
young management people, call for 
priority attention at the highest levels 
of the business. It is the intention to 



scrutinize every aspect of Bell System 
operations, and indeed every job as- 
signment, in an effort to assure that 
they are attractive to young people 
entering the business world, that they 
provide the broadest possible scope 
for individual initiative and creativity, 
and that they provide effective outlets 
for expression of diverse views and 
opinions with respect to the conduct 
of our day-to-day operations. 

Listen to the young 

AT&T's managers are asking them- 
selves some hard questions. How 
meaningful are the early task assign- 
ments and work experiences that the 
business provides? What are the re- 
wards for exceptional performance? 
What challenges are presented? How 
well do the company's underlying 
values correspond with those that to- 
day's young people consider impor- 
tant? What opportunities are offered 
for service to the community at large? 
To what extent is individual achieve- 
ment retarded by outmoded practices 
and tradition? How can we provide 
lower levels of management with a 
larger role in decision making? 

We are, in short, carefully reexam- 
ining our job assignments, our man- 
agement practices, and indeed our en- 
tire operating philosophy, in the spe- 
cific light of what young people are 
telling us about their perceptions of 
business and its role in society. 

It is too early to say what will come 
of all this effort. The important fact 
is that the Bell System, the country's 
largest employer outside of govern- 
ment, considers the changing attitudes 
of young people to be a matter of 
utmost importance. Finding ways to 
adjust to those attitudes is, for us, a 
top priority undertaking. D 



13 



Flexibility of Bell System organization and directed research help move an 
innovation from idea in the laboratory to reality in the telephone network 



From Concept 
Into Service 



Innovation, in the context of the in- 
dustrial community, is not just the 
discovery of new phenomena, nor the 
development of new products or 
manufacturing techniques, nor the 
creation of new markets, but is, rather, 
all of these things acting together to- 
ward a common goal. Jack A. Morton, 
vice president in charge of electronics 
technology at Bell Telephone Labora- 
tories, describes it as "a people proc- 
ess with a purpose." 

Twelve years ago, the editors of 
Fortune magazine commented: "The 
preeminent discovery of the 20th 
century is the power of organized 
scientific research. In the Western 
world this discovery was made not by 
the universities, nor by governments, 
but by private industry . . . The indus- 
trial enterprise that has carried out this 
mobilization most brilliantly in the 
U.S. — and indeed in the world — is 
Bell Telephone Laboratories, Inc." 

By 1958, when this Fortune article 
appeared, technological and scientific 
achievements — born in the basic re- 
search of Bell Laboratories and carried 
forward to production by the Western 
Electric Company — had earned the 
Bell System a unique reputation for 
innovative accomplishment. 

The achievements of its scientists 
and engineers were known throughout 
the world. They had twice won the 



Nobel Prize: for demonstrating the 
wave nature of matter (1937) and for 
the discovery of the transistor effect 
(1956). They had conceived informa- 
tion theory; developed the basic 
structure of network broadcasting; 
pioneered sound motion pictures; 
created the new science of radio as- 
tronomy; developed and built the first 
electrical, digital computer; fathered 
the first public demonstration of tele- 
vision; given the world hi-fi sound 
reproduction; introduced microwave 
radio and coaxial cable systems; and 
developed principles that would open 
the way to worldwide communication 
by satellite. 

Problems without counterpart 

The concept of system engineering 
had been largely generated in Bell 
Laboratories and Western Electric to 
help assure the rapid and efficient 
introduction of new technology into 
the nationwide communications net- 
work. That concept was later applied 
to many of the nation's military pro- 
grams, including its first operational 
guided missile system, Nike Ajax, for 
which Western Electric was prime 
contractor. And, the Bell System has 
provided the United States with what 
is still the world's best communica- 
tions service, at less than half the cost 
of that in most other nations. 

To its unabashed accolade for Bell 
Laboratories, Fortune added: "The job 
of creating the modern telephone sys- 
tem has required the solution of prob- 
lems of such deep complexity that they 
have had no counterpart in any other 
industry. . . ." The problems, however, 
were solved with astonishing rapidity. 



Less than four decades, for example, 
separated the invention of the tele- 
phone from the inauguration of coast- 
to-coast telephone service in 1915. 
Only two decades separated this prim- 
itive system, which could carry but a 
single conversation on a pair of open 
wires, from the development of coax- 
ial systems able to provide 480 two- 
way telephone circuits over a pair of 
tubes. A few years later, microwave 
systems, which had been under devel- 
opment since as early as 1940, were 
transmitting over 600 separate conver- 
sations on a radio beam. And by the 
mid-1950's, the voice-carrying ca- 
pacity of existing systems had been 
multiplied into the thousands. 

Between 1915 and 1958, AT&T and 
Western Electric spent more than $1.5 
billion on research and development. 
This works out to about seven per cent 
of the total plant investment of the 
entire Bell System at the end of this 
period. And yet, in spite of the huge 
costs involved, telephone service was 
becoming, in real terms, less and less 
costly for the American consumer. In 
1940, the average telephone user 
worked six hours to pay for one month 
of local residence service. By 1958, 
despite the spiraling inflation that had 
characterized the intervening years, he 
worked only half as long to pay for 
service that had become far more reli- 
able, efficient and versatile. 

Innovative leadership 

In the years since, in the explosive 
"post-Sputnik" era, which has wit- 
nessed so vast a proliferation of sci- 
entific and engineering endeavor both 
here and abroad, the Bell System has 



14 



>Mr 



ITW'^: 




/ I I 



J**, • 



r^M^ 



,u.m* 



continued in its innovative leadership. 
Efforts to produce the transistor relia- 
bly and economically led to the sci- 
ence of microelectronics, which, in the 
1960's, resulted in the development of 
integrated circuitry. Western Electric's 
invention of continuous processes for 
the manufacture of so-called "thin 
films" was an essential step toward 
broad scale application of this new 
microelectronics technology. 

Bell scientists also shared in the in- 
vention of the laser, which they expect 
to find wide application in communi- 
cations, scientific research, medicine, 
the shaping of metals, and the expan- 
sion of computer memories. A single 
laser beam may one day carry tele- 
phone calls, data messages and tele- 
vision signals in bundles 10,000 times 
larger than are now possible with 
microwave systems. The first industrial 
application of the laser was achieved 
by Western Electric, which in 1966 be- 
gan to use its beam to pierce diamond 
dies used for wire-drawing. 

The key: organizational flexibility 

Over the past dozen years. Bell sci- 
entists and engineers have developed 
a broad variety of new products and 
services. Among them are over-the- 
horizon radio relay systems, permitting 
telephone transmission over water, or 
over inaccessible terrain, to points 
beyond the curvature of the earth; the 
electronic Artificial Larynx; Centrex 
service, bringing new dimensions of 
speed, convenience and versatility to 
business customers; the world's first 
international communications satellite, 
TELSTAR; Touch-Tone® calling, intro- 
ducing pushbutton "dialing" through 
electronic tones, and opening the way 
to a variety of wholly new services, 
including access to computers and pri- 
vate data transmission; Picturephone® 
service, enabling the user to "see 
while he talks"; the first commercial 
electronic switching system for home 



and business customers; transistorized 
undersea cables, providing over 800 
voice circuits, five times the capacity 
of the most efficient previous design; 
the first commercial digital transmis- 
sion system employing pulse code 
modulation techniques; increasingly 
efficient microwave radio systems and 
a coaxial cable system which can carry 
32,400 simultaneous conversations; di- 
rect dialing of overseas phone calls; 
and various data devices to transmit 
information from computers and other 
business machines, including a data 
set which enables widely separated 
hospitals, doctors and medical re- 
search centers to transmit electrocar- 
diograms over regular telephone lines. 

These are but a few of the hundreds 
of recent Bell System innovations that 
have contributed greatly to the ad- 
vancement of communications and to 
the scientific and technical capabili- 
ties of other industries as well. 

Perhaps the most important factor 
contributing to this kind of accom- 
plishment has been an organizational 
flexibility that permits free and con- 
stant interaction between the various 
units of the Bell System and between 
groups of specialists within these units. 
Any part of the System, any unit or 
organization, can be the originator of 
an idea to be passed along and de- 
veloped by any of the others — or by 
several working together. 

Response to the public's needs 

The basic structure of the System, 
integrating research, manufacture and 
operations, is designed to be respon- 
sive to the enterprise's fundamental 
objective: ever-improving, low-cost 
service. It makes possible the quality 
and compatibility needed to operate 
a nationwide network, and helps as- 
sure a coordinated response to the 
public's needs, along with a common 
sense of responsibility for service im- 
provement. 



Often the inspiration for an im- 
provement comes from AT&T or the 
operating companies which are con- 
stantly assessing the present and future 
needs of telephone customers. New 
ideas can — and often do — spring 
from Western Electric's search for im- 
proved techniques of manufacture and 
supply. And, of course, the Bell Sys- 
tem's creative core is Bell Telephone 
Laboratories. 

A functional dissection of the Lab- 
oratories yields three major categories 
of endeavor: research, development 
and systems engineering. While these 
approximately coincide with the for- 
mal organizational structure, there is 
elasticity and functional overlap for 
ideas to flow freely across the bound- 
aries. This interaction is basic to an 
effective, integrated innovative effort. 
It is carefully nurtured through geo- 
graphic deployment, permitting close 
association between personnel of the 
Labs and Western Electric, through en- 
lightened and aggressive recruiting 
policies, and interchange of personnel 
between the various divisions. 

Good science is relevant 

In relation to the Laboratories' total 
technical effort on behalf of the Bell 
System, research constitutes about 16 
per cent. Over half of the professional 
scientists and engineers here are as- 
signed to reconnoiter the frontiers of 
the physical sciences, seeking new 
knowledge and new understanding; 
the remainder work in such fields as 
mathematics, statistics, economics, 
learning theory, acoustics, vision, 
switching and transmission. 

The fundamental purpose of such 
research is to extend and broaden the 
science of communications. This in- 
cludes discovery, invention, and the 
building of experimental devices and 
systems. It frequently means delving 
into areas which, on the surface, may 
seem far removed from the essentials 



16 



of any communications technology. 
According to Labs President James B. 
Fisk, "Our fundamental belief is that 
there is no difference between good 
science and good science relevant to 
our business. Among a thousand sci- 
entific problems, a hundred or so will 
be interesting, but only one or two 
will be truly rewarding — both to the 
world of science and to us. What we 
try to provide is an atmosphere that 
makes selecting the one or two in a 
thousand a matter of individual re- 
sponsibility. . . ." 

It is largely as a consequence of this 
approach — this cultivation of an at- 
mosphere of freedom and individual 
responsibility — that Bell researchers 
have been able to make so many first- 
rank contributions, not only to the 
field of communications, but to sci- 
ence and technology as a whole. 

The largest of the Laboratories' three 
functional divisions is that devoted to 
the actual design and development of 
new components, products and sys- 
tems. This accounts for over 74 per 
cent of the Labs' total effort; for here- 
in lies the core of the organization's 
reason for being: the exploitation of 
new technological resources in oper- 
ating systems. 

Economy through ingenuity 

From the reservoir of basic and ap- 
plied research, development engineers 
select the technology to best yield 
designs that are reliable, economical, 
useful, and can be manufactured effi- 
ciently. While cost criteria are among 
the more compelling of these consid- 
erations, economy of design must be 
achieved through ingenuity rather than 
by taking short-cuts — for the design 
must also be aimed at long, trouble- 
free service. Thus great effort goes 
into developing components with ex- 
tremely low failure rates, and assem- 
bling them into systems in which 
single failures will not interrupt ser- 



vice. In all this, the ability to transfer 
ideas easily across organizational and 
corporate boundaries is a vital asset. 

Over 2300 of the Laboratories' engi- 
neers and technicians are located in 
branch labs in or near Western Elec- 
tric's manufacturing centers. Organi- 
zationally, these people belong to Bell 
Laboratories; but spatially — and, to a 
degree, functionally — they are strong- 
ly linked to their associates in Western 
Electric. Because of this, design for 
best performance and reliability can 
be balanced on a day-to-day basis 
against design for minimum cost of 
manufacture. 

This close interaction and coupling 
of specialties has become increasingly 
important with the swift advance of 
communications technology. Permit- 
ting a rapid interchange of ideas and 
information, it assures optimum results 
in terms of the quality, economy and 
compatibility of finished products; 
and, because it allows production 
planning and the final stages of design 
work to take place concurrently, it 
greatly accelerates the total process. 
For example, before the establishment 
of the branch labs in the mid-1950's, 
the time between the final design and 
actual production of a standard tele- 
phone was about 27 months. Today, 
far more complex instruments — such 
as the new Trimline® telephone— move 
from design to production in less than 
a third of that time. 

To anticipate tomorrow 

Sharing mutual respect, common 
vocabularies and interests, and a de- 
sire to resolve mutual problems effi- 
ciently, the WE-Bell Labs teams at 
the manufacturing centers contribute 
immeasurably to the effectiveness of 
the System's innovative efforts. 

The systems engineering concept 
provides for testing each proposed in- 
novation against a number of standard 
criteria. The new product, system or 



service must have a useful purpose 
and meet a real need of the business 
and its customers. That is, it must pro- 
vide capacity for an entirely new ser- 
vice or at least enhance the function 
of existing equipment. It should also 
be flexible enough in design for effi- 
cient response to needs and new tech- 
nologies of the future. For example, 
the "stored program" concept in elec- 
tronic switching and the "pulse code 
modulation" techniques embodied in 
today's digital transmission systems 
promise flexibility to meet foreseeable 
increases in communications traffic as 
well as growing customer demand for 
new varieties of service, particularly 
data transmission and Picturephone. 

In short, the innovation should be 
geared to meet the needs of tomorrow, 
so far as they can be anticipated, as 
well as the needs of today. 

The risk in commitment 

The proposed innovation must of 
course be practical from a financial 
standpoint. And unless a compelling 
need dictates otherwise, it should not 
result in increased costs. Preferably, it 
should provide for an immediate or 
long-term reduction in costs to the 
business and its customers. 

Cost considerations are especially 
important in this era of accelerating 
technology and customer demands. 
Effective use of the innovation entails 
quick and decisive commitments of 
money, as well as scarce and valuable 
manpower. This in turn implies a high 
degree of risk; for commitments often 
must be made in situations where 
there is little or no reliable experience 
or empirical data. Obviously, these 
risks cannot be undertaken unless the 
potential benefits — to both the busi- 
ness and its customers — are sufficient 
to justify them. 

The new technology must provide 
service at least as good as that already 
existing and preferably, some distinct 



17 



performance improvement. 

Because of the great complexity of 
the communications network, per- 
formance and reliability requirements 
are stringent. The network is com- 
posed of more than 110 million tele- 
phones, along with television and data 
facilities, which all connect flexibly 
through the thousands of switching 
offices that blanket the nation. Super- 
imposed on and connecting to these 
are long distance transmission and 
switching facilities making the whole 
an integrated entity. 

No downtime allowed 

Made up of over a trillion compo- 
nents, the network is, in effect, a great 
computer-like machine that depends 
on the quality and reliability of its in- 
dividual parts. Since the network can- 
not anticipate just who is going to call 
whom and when, it must stand ready 
to provide any combination of some 
five million-billion possible intercon- 
nections when a call is made. An ordi- 
nary call within a city involves the 
operation of about 1200 relays alone. 
If just one should fail, the call would 
not get through. 

Telephone switching equipment 
provides a good illustration of the or- 
der of quality and reliability required. 
It must operate around-the-clock, day 
in and day out, for year after year — 
and with no "downtime" for repairs. 
While computer people speak of fail- 
ure or downtime in terms of hours or 
even days, telephone people speak of 
momentary failure of switching equip- 
ment in terms of a decade or a life- 
time. The new electronic switching 
systems may use as many as a million 
components, each designed and pro- 
duced for reliability against failure that 
is hundreds to thousands of times 
greater than that expected of similar 
electronic components used in most 
consumer products. 

Again, because of the nature and 



complexity of the network, all of the 
pieces, parts and components added 
to the system must be mutually com- 
patible, capable of working harmoni- 
ously together. A relay in California 
must respond unerringly to pulses 
from Virginia which may have gone 
through thousands of electron tubes, 
transistors, or other devices on their 
journey — and which have been kept 
free of the cumulative distortions of 
cables, wires, or microwave channels. 
Every new and improved item of 
equipment, every new service, must 
operate effectively with what already 
exists; and what exists today must be 
fully compatible with what will come 
tomorrow if millions of dollars' worth 
of equipment is not to become obso- 
lete too soon. The present rapid intro- 
duction of Touch-Tone calling and 
electronic switching — to cite but two 
examples — would not otherwise be 
possible. 

Techniques and facilities for pro- 
ducing enough of the new equipment 
at reasonable cost must either exist 
already or lie within the practical 
development limits of manufacturing 
technology. Meeting this criterion is 
by no means a simple matter today. 
The sophisticated new products and 
systems emerging from communica- 
tions science require the development 
of equally sophisticated production 
processes — a task that is often as com- 
plex and as technically demanding as 
the product innovation itself. 

New methods for new products 

For example, products such as inte- 
grated circuits and undersea amplifiers 
have required the development of 
dozens of new materials, a vast array 
of new manufacturing techniques, and 
production facilities that are radically 
different from those of the past. In- 
creasingly, Western Electric facilities 
look more like laboratories — or even 
surgical rooms — than anything one 



usually associates with the word fac- 
tory. At the company's Indianapolis 
Works, integrated circuits are assem- 
bled under microscopes in manufac- 
turing space kept ultra-clean to avoid 
contamination of the circuits by par- 
ticles of dust. The area is, in fact, 
90,000 times as free of dust as the out- 
side atmosphere. A dust content of 
thousands or even millions of particles 
per cubic foot is not unusual in a well- 
kept household, but only 100 particles 
per cubic foot are permissible where 
these very tiny and delicate compo- 
nents are made. 

In this and many other instances, 
Western Electric engineers have had 
to create fundamental changes in the 
manufacturing environment, to devel- 
op radical new approaches to the art 
of production. There seems little ques- 
tion that the pace of communications 
progress would be retarded if they 
could not find imaginative and ingen- 
ious solutions to the problems posed 
by today's advancing technology. 

Planning: a shared responsibility 

Products embodying new technol- 
ogy must be easy to operate and main- 
tain by the telephone companies. This 
requirement is especially important 
and challenging in large systems such 
as the No. 1 Electronic Switching Sys- 
tem. Here much of the development 
work was devoted to making it easily 
serviceable. As it finally emerged, the 
system is able to diagnose its own 
troubles and advise maintenance men, 
via teletypewriter, of its difficulty. 

Clearly, detailed planning is an es- 
sential part of the innovative process. 
And planning is a shared responsibility, 
calling on the talents and resources of 
every Bell organization. A major part 
of this responsibility, however, falls 
upon the Engineering Department of 
AT&T and Bell Laboratories' System 
Engineering division. 

It is the systems engineer, more than 



18 



anyone else, who looks at the total 
process of innovation, who matches 
problems with potential solutions, 
translates these into specific propos- 
als, and catalyzes the work of the Bell 
System's research, development and 
manufacturing specialists. For this rea- 
son the systems engineer tends most 
often to be a former specialist, with 
experience in several areas of science 
and technology, who has broadened 
his knowledge to include one or more 
other disciplines such as economics, 
marketing, sociology or psychology. 
With the important task of building 
information bridges connecting social 
and economic needs to scientific pos- 
sibilities, he is essential in the Bell Sys- 
tem effort to give its customers new 
and better products and services. 

Hold down the cost 

The critical nature of the role played 
by Western Electric in the innovative 
process cannot be overemphasized. It 
is, in fact, among the more important 
criteria by which Western Electric's 
Bell System partners measure the com- 
pany's performance. Certainly many 
of the Bell System's scientific and tech- 
nological breakthroughs would have 
remained laboratory curiosities had it 
not been for Western Electric's ability 
to translate them into working hard- 
ware at reasonable costs. 

To augment that ability. Western 
Electric established, in 1958, a unique 
Engineering Research Center near 
Princeton, New Jersey. Broadly, the 
Center looks for new ways of making 
things, while Bell Laboratories looks 
for new things to make. In its brief 
history, ERC has made an impressive 
number of outstanding contributions 
to the art (increasingly, the "science") 
of manufacture. 

Equally important is the fact that 
Western Electric has been able to hold 
down the cost of its products and ser- 
vices, while at the same time advanc- 



ing their quality and reliability. At the 
end of 1969 its price level for products 
of its own manufacture was 2 per cent 
lower than it was at the beginning of 
1950, despite a 63 per cent increase 
in material costs and a 138 per cent 
increase in wages and salaries. 

Many factors influence the pace of 
Bell System innovation. First, there is 
the need to maintain the confidence 
of telephone users and the Federal, 
state and local regulatory bodies that 
represent them. There are pressures of 
competition and of rising customer 
expectations. And there is the ever- 
present need to maintain earnings in 
the face of rising costs. 

It is, of course, the Bell System's 
operating units — the telephone com- 
panies and the Long Lines department 
of AT&T, which provides interstate 
and international services — who feel 
these pressures most directly. It is they 
who are closest to the American con- 
sumer; it is they who must answer to 
him for the quality, economy and ver- 
satility of service; and it is conse- 
quently they who provide much of the 
stimulus for service improvement. 

The ideal new product 

The pressure for innovation from 
the operating units is evident in its 
influence on Western Electric's oper- 
ations. From any manufacturer's point 
of view, the ideal new product is one 
that grows in production volume at a 
gradual pace — allowing time for train- 
ing and re-training personnel and for 
maintaining a reasonable schedule of 
capital expenditures. Eventually, the 
volume should reach a level warrant- 
ing extensive mechanization of pro- 
duction and, having done so, continue 
indefinitely with only minor fluctua- 
tions. There should be few if any 
changes in the design of products after 
they have gone into manufacture, and 
design tolerances should permit the 
most economical production. 



In the Bell System, however, the 
manufacturer's needs are subordinate 
to those of the telephone companies 
and their customers. New products, 
designs and systems are introduced 
whenever they promise service or 
economic advantages to the user, and 
with little regard for the problems, 
financial or otherwise, imposed on 
Western Electric. 

The customer comes first 

For example, for several years, much 
long distance transmission was pro- 
vided by microwave systems with a 
capacity of about 600 voice channels. 
When a higher capacity was needed. 
Bell Laboratories developed an im- 
proved system and Western Electric 
set up extensive — and expensive — 
facilities to manufacture it. Then, un- 
expectedly, engineers discovered 
means for doubling the capacity of the 
older system in a way that would save 
money for the telephone companies 
and ultimately, for their customers. It 
was decided, therefore, that manufac- 
ture of the new system should be held 
back, even though this would create 
a sudden excess of production facil- 
ities at Western Electric and impose 
an unforeseen financial burden on it. 
The needs of the customer came first. 

Such disruptions of Western Electric 
operations are by no means infrequent 
or unusual. It very often happens that 
the company has scarcely solved the 
problems of manufacturing a product 
or system, when something better 
comes along to replace it, cutting into 
existing or forecasted production 
schedules and commitments. 

Thus, while the operating units of 
the Bell System are innovative in them- 
selves, their dedication to the task of 
providing top-quality, ever-improving 
service also has considerable impact 
on the Bell System's total process of 
innovation and on the long-range 
planning of the enterprise. D 



19 



Technology is concerned primarily with physical processes, 

but it also will affect the way organizations 

are managed in the future 

Technology Tomorrow: Impact and Implications 

by Henry M. Boettinger 



To discuss "the" future of technology may not be the 
most arrogant act imaginable, but it comes high on 
the list. Perhaps only a combination of fool, visionary 
and fanatic would presume to predict "the" actual 
configuration of technology that we and our descend- 
ants will be using — or enduring — to carry on the 
world's work. Future historians will find steady em- 
ployment in tracing the pattern of our responses, 
both errors and triumphs, to the explosive forces set 
off by that marriage of knowledge to practical work 
we call technology. 

Peter Drucker suggests to those of a deterministic 
cast of mind that they look at the headlines of a news- 
paper and try to identitfy those events that could have 
been predicted 10 years before. I have done this with 
issues of The New York Times, and confess I could 
not identify one that looked certain a decade ago. 

First, even though individual technological events 
are unpredictable, one can discern forces shaping 



As director of Management Sciences at AT&T, Mr. Boettinger 
works daily with problems inherent in managing a business heav- 
ily dependent on technological innovation. This article is drawn 
from the last ot a series of four lectures delivered recently by 
Mr. Boettinger in London and Manchester. It follows his study of 
tomorrow's managers featured in the previous issue of Bell Tele- 
phone Magazine. 



probable future developments that will affect the af- 
fairs of organizations and persons. Even if they de- 
plore such developments, reasonable men should 
select strategies that, at least, prevent severe harm 
to their enterprises, or, more hopefully, let them har- 
ness these forces to positive causes and purposes. 

Second, unless one is content to let his people 
career from crisis to crisis, a leader must make judg- 
ments, based on cool appraisal of the possibilities 
awaiting them, considerably ahead of the actual im- 
pact of events. Such judgments will suffer error in 
detail, but most organizational arrangements geared 
to the general forces at work will adapt better than 
those that insist no bridge be acknowledged to exist 
until the leader puts his own feet upon it. Of course, 
one cannot cross a bridge until he comes to it, but 
sensible men do look at maps, or send out scouts, 
before they deploy large numbers of their followers 
into unknown territory. 

This article is essentially a personal "intelligence 
estimate" produced for consideration by those 
charged with leading people into that unknown ter- 
ritory we call the future. My sources include scholars, 
engineers, managers, scientists, politicians, sociolo- 
gists, historians, psychologists and "lesser breeds 
without the law." I am sure that half of them are 



20 



wrong, but I do not know which half. Only events 
themselves can sort them out. 

Statisticians distinguish two types of error, which 
they call, with singular lack of imagination, "errors 
of the first class" and "errors of the second class." 
Stripped of pedantry, these are: 

First Class: assuming true something that is false. 

Second Class: assuming false something that is true. 

All of us are trained from childhood to avoid errors 
of the first class: "Do not accept a statement as true 
unless there is overwhelming evidence for it." Prac- 
tical men often use this expression to describe them- 
selves: "I'm from Missouri," which means, "You have 
to show me." Leaders seldom make errors of the first 
class. However, the greater their skill in avoiding de- 
cisions without sufficient evidence, the more prone 
they are to make errors of the second class. They will 
treat as false something that may be true, but for 
which there is not yet sufficient proof to remove all 
doubt. When dealing with the future, the leader must 
be especially on guard against this kind of error. His 
experience and habits of a lifetime will furnish more 
protection than he needs from errors of the first class. 

Most persons have a tendency to think of technol- 
ogy as a collection of inventions spun off from sci- 
ence. Some technology — the glamorous part — does 
come this way, but technology is far more than this. 
The definitive history of technology, published in five 
volumes by Oxford, produced in Britain, and edited 
by Charles Singer, chronicles what technologies really 
are: bodies of skills, knowledge and procedures for 
making, using and doing useful things. 



Practical application of knowledge 

Technology concerns itself primarily with tech- 
niques applicable to physical and biological pro- 
cesses, in contrast to social and psychological pro- 
cesses. Some current anxieties may cause technology 
to take greater account of its social and psychological 
effects, but technologists see themselves as men ex- 
pert in accomplishing recognized purposes. How 



these purposes are arrived at and agreed on come 
from outside their frame of reference. They also dis- 
tinguish their activity from science, which strives for 
acquisition of knowledge, while they strive for prac- 
tical application of knowledge to meaningful tasks. 
I have used two words, "useful" and "meaningful," 
admittedly in a vague way. Let me give them more 
precision, since different societies decide whether 
something is "useful" or "meaningful" by different 
tests. In societies like those of England and America, 
a useful task is one that people are willing to pay for, 
either as individuals (in purchases) or collectively (in 
government expenditures). In other societies, the 
term useful describes what some official needs to 
achieve his purposes. This point often is overlooked 
by Westerners of provincial outlook, who assume 
other people are irrational if they do not immediately 
embrace a new discovery or technique. What tech- 
nological changes occur, how they are used and the 
reverberations they cause are influenced by all major 
features of a society. Thus, if one sets out to forecast 
probable technological development in a specific 
society, he should look at the demands for goods and 
services deemed useful by that society, and should 
consider its overall goals. 



Societies welcome three things 

There are some features of most advanced societies 
that will result in certain categories of demand. These 
are: 1) food, shelter, clothing; 2) energy, transporta- 
tion, education; 3) communication, medicine, de- 
fense; 4) art, entertainment, charity. In The Age of 
Discontinuity, Mr. Drucker states that all societies, no 
matter what their stage of economic development, 
welcome three things: better education for their chil- 
dren; increased mobility, and better health services. 
These basic needs will remain stable, but the specific 
goods, products and services required to satisfy them 
will constantly change and will require changing 
technologies. 

Since total resources are limited, the matching of 



21 



potential demand to possible costs forges the link 
between marketing and technology, which character- 
izes modern business. When that link is not strong, 
both areas suffer, either by getting in each other's 
way, or by blaming one another for failure to deliver 
expected volumes or low costs. Organizations that 
insist on widely separating marketing and technology 
jurisdictions leave a gap through which wiser com- 
petitors will penetrate with everything they have. 

Regardless of how clean an organization chart may 
look, with its neatly bounded boxes, no enterprise 
serious about its prosperity can afford to respect those 
boundaries. Why not? Because we are entering, or 
are now in, an age when three characteristics will 
increasingly predominate. Sociologist Alvin Toffler 
calls these novelty, diversity and transience. Notice 
how these collide with ideas of old industrialism that 
strove for standardization and long product life. 

Turned Marx upside down 

Our predecessors were intelligent men, and their 
success with mass production of universal products 
and services built the base from which we can take 
off anew. The economics of the technology available 
to them and the markets hungry for the flood of 
standard amenities called for maximum exploitation 
of economies of scale. They inverted Marx, trying for 
higher profits by lowering costs, expanding volume 
with lower prices and so on to the limits set by the 
sensitivities of costs to volume, and volume to price. 

Henry Ford epitomized his idea of marketing's in- 
fluence on management in his statement, "You can 
have a car in any color you want so long as it's black." 
He was not about to disrupt his humming assembly 
lines by catering to the foolish whims and fancies of 
people who did not know what was good for them. 

The transition stage from that day to the present 
saw the emergence of market research along demo- 
graphic lines. The population was sorted into various 
pigeonholes, in which the people assigned were as- 
sumed to be homogeneous in their habits, life styles 



and needs. A typical research statement for a product 
design might have been: "Primary market: mother of 
2.7 children, college graduate, age 27-35, middle in- 
come, suburban." This approach, still valid and flour- 
ishing in many areas of business, tries to keep the 
attractive features of the old industrialism (large, 
standard volumes) and yet adapt to changes in the 
social structure (pinpointed design features). 

New management emphasis 

This period witnessed the technological explosions 
of the past two decades, and created new manage- 
ment emphasis on interlocking relationships among 
appropriate technology, product design variations, 
distribution channels, service facilities and advertis- 
ing. A worldwide increase in population gave the 
process additional impetus. Demands for government 
services (primarily defense) funneled enormous re- 
sources to exotic technological fields. The infrastruc- 
ture of roads, housing, schools and municipal services 
kept demand strong for the older lines of business. 

Inside the perimeter of technology, which sup- 
ported this demand, great shifts and substitutions oc- 
curred. Solid-state physics applications, beginning 
with the transistor, metamorphosed the electronics 
industry and let the computer make its all-pervasive 
incursions into almost every area of human activity. 

Air travel; oxygen processes in steelmaking; trans- 
fer machines and numerical control in manufacturing; 
containerization; higher temperatures; pressures and 
voltages in electric power; plastics; electronic switch- 
ing, satellite, cable and microwave systems; printing; 
nuclear energy; petrochemicals; synthetic fibers; 
foods; television; pipelines; pharmaceuticals; ferti- 
lizers, and a new understanding of the nature and 
properties of all materials have transformed the way 
we see, do and use things, and conduct our lives. 

Some organizations have foundered, but others 
have ridden the crests of the waves caused by the 
successive shocks of these innovations. There have 
been few areas of slack water anywhere, much less 



22 



safe harbors, for any organization of significance. 

Concurrent with these technologies, rooted in the 
physical sciences, have come technologies developed 
from study of the organization of people and their 
work. New arrangements designed to enhance the 
psychological and social environment created by the 
organization are being experimented with, embraced, 
rejected and modified every day. The current em- 
phasis seems focused on viewing the work force as 
persons, not so many hands. The entire field is in 
ferment, and we will need several years to separate 
froth from wine. 

In short, no one engaged in satisfying the basic 
needs listed earlier has been insulated from the im- 
pact of both these aspects of technology. But some 
of the post-dated bills for this technological thrust are 
now coming due. The early murmurs of ecologists 
have reached the crescendo stage, and future inno- 
vations will have to meet more rigorous tests of their 
potential benefits versus potential injury. 

There is some evidence that life cycles of specific 
products and services are shortening. A "generation" 
in electric power plants was 40 years; a computer 
generation now is six years. This accounts for part of 
the characteristic Mr. Toffler calls "transience." The 
remainder is accounted for by a weakening of our 
individual roots in time and place, where more people 
move about, making and breaking social and com- 
munity relationships in ways unknown to our parents. 



The quest for sense of self 

Novelty in everything is prized, perhaps too much, 
as an end in itself. This may reflect simply restlessness 
and dissatisfaction, but 1 believe it actually reflects 
the quest for individuality and "sense of self" so 
dominant today as a reaction to our industrialized 
society. Yet it is a powerful force, and marketing men 
who ignore it will mislead their technological breth- 
ren into building plant and equipment so inflexible 
as to become white elephants — which are always 
expensive and hard to get rid of. 



Diversity seems to be the direct antithesis of stan- 
dardization, but is more subtle. If you look at specta- 
tors of a parade, you almost never will find two 
dressed exactly alike. Yet, most wear clothes pro- 
duced by assembly-line methods. Here we have a clue 
as to how the economies of mass production can sat- 
isfy a personal yearning for being different. Each 
module can be mass-produced, but assembly of the 
final product can be directed by the customer him- 
self. Byzantine mosaics are each a distinct work of art, 
but the little squares and triangles of colored glass 
and stone are nearly identical. 

''Build yourself a Mustang" 

One of the most successful advertising campaigns 
in this country exploited — or demanded — a flexible 
technological arrangement for making cars: "Build 
yourself a Mustang." Each prospective purchaser was 
seen as an individual person, not as a group of people, 
and the cars were sold as are custom-made suits by 
bespoke tailors. Marketing and technology both will 
have to live with the new emphasis on the "custom" 
aspects of customers. This will cause severe mental 
wrenching for many technical people, and the re- 
quired adaptation will greatly influence the tech- 
nology they can use. 

In the past such discontinuities in performance 
criteria have brought forward new technology, often 
in industries different from those experiencing the 
old demand. New industries, using new technologies, 
have habitually made their main entrances by offering 
lower priced or better quality substitutes for a vener- 
able product or service: aircraft for ships and rail- 
ways; plastics for metal and wood; paper for glass; 
aluminum for steel; nylon for silk, etc. I believe that 
the emerging preference for transience, novelty and 
diversity will cause continuation and intensification 
of that experience. New technology is the cutting 
edge of the knife that slices the "cake of custom," if 
we use Bagehot's metaphor for tradition. How well 
that knife cuts, and how deep, depends on the mar- 



23 



keting intelligence that guides the blade. 

We can also expect new technology to cope with 
the deleterious effects of old technologies. Pollution 
control and environmental rehabilitation demands 
will call into being, or make feasible, a whole new 
set of entrepreneurial and technical opportunities. In 
the fifties and sixties, any corporate name ending in 
"— onics" became the darling of our stock markets. 
Future sweethearts probably will have "environment" 
for their middle name. 



Technology heading for inventory 

I have heard it wryly observed that, "We have more 
technology than we know how to use properly." That 
may be so, but 1 do not see the pace of development 
slackening while we work off the inventory. If any- 
thing, it will be the other way — more and more 
technology that we don't know how to use properly 
heading for inventory. Yet, some of that inventory 
of knowledge sits waiting, patient but alert, for an 
idea whose time has not yet come. One example of 
this was a radio receiver technique, invented at Bell 
Telephone Laboratories in 1936, which had to wait 
for the communications satellite before it became the 
indispensable link for Telstar feasibility in 1962. 

Another feature of technology will predominate: 
emphasis on performance of a system of components, 
rather than on the components themselves, consid- 
ered and developed as isolated artifacts. Component 
emphasis has brought us to a marvelous plateau, 
whether applied to the human cell, microcircuits, 
vacuum tubes, metal crystals, magnetic cores or what- 
ever. But great possibilities now lurk in imaginative 
assembly and arrangement for interaction of this 
highly developed componentry. Our parallel with the 
mosaicist will hold even more strongly in the future. 
The technological designer will experience an expan- 
sion of his freedom known heretofore only by in- 
dividual artists. The possibilities are truly incalculable, 
especially when one sees them as designs to match 
the diverse demands of what William O. Baker, vice 



president of Bell Telephone Laboratories, calls 
"human-oriented, market-oriented technologies." 

What effects can such things have on the individual 
manager? Before attempting to answer that, consider 
how managers now relate their activities in two major 
domains, the human and the technological. 

Assume that we can agree on some measure of 
effectiveness for a working group. For our purposes 
any measure will do. Individuals in the group experi- 
ence something we all feel, but find difficult to define. 
Call this tension. Language takes note of this with 
phrases like "a slack operation" or "a taut ship" to 
describe the overall organizational condition. What is 
the relationship between effectiveness and tension? 



Effectiveness requires tension 

Maximum effectiveness requires people in an or- 
ganization to feel some positive, complex sense of 
pressure, obligation, responsibility, accountability, 
pride, etc. — all of the ingredients that produce ten- 
sion. But if tension is increased beyond the optimum, 
by using all methods known to leaders of men since 
the pharaohs, effectiveness will decline. Similarly, if 
organizational tension is reduced from the optimum, 
effectiveness also will decline. A discernible slackness 
will begin to pervade the organization. Those whom 
we call great leaders or managers instinctively strive 
for the optimum, sometimes relaxing, sometimes 
goading their people, making small changes as ex- 
ternal forces beyond their control add or subtract 
from the total tension their people experience. 

Consider now the relationship between effective- 
ness and technological capability available to an or- 
ganization. The same sort of relationship seems to 
prevail there between techniques (or tools) and over- 
all performance. We can find extremes where the 
tools are too deficient for optimum performance, or 
they are too powerful (and thus wasteful) for the job 
in hand. At a midpoint we have the right tool for the 
job. Digging the Panama Canal with spades and 
wheelbarrows epitomizes the first extreme, while 



24 



gardening with a bulldozer illustrates the second. 

Middle managers can often make do with the tools 
they are given, but their leaders ought not be misled 
by such heroic underlings. Such leaders have con- 
demned their organizations to suboptimal perform- 
ance — which usually means "at higher costs than 
need be." Competitors who do optimize the relation- 
ship between effectiveness and technological capa- 
bility can set a blistering pace for their less enlight- 
ened rivals. 

In the real world situation, a manager must balance 
effectiveness, human tension and technological ca- 
pability. All these relationships must be tended by 
supervision if overall optimal effectiveness is desired. 
If a brilliant technologist makes optimal provision of 
tools to an inept manager, he has wasted his time. If 
an ideal manager has been furnished the wrong pro- 
cesses or equipment, his people cannot catch rivals 
who have skilled technologists looking after their 
interests. One can compensate for bad technology, 
to some extent, with great leadership, and for poor 
leadership with superb technology. But peak per- 
formance seldom can be achieved without peaks in 
both domains — human and technical. 



Constant reorganization 

Managers unwilling to face the implications of this 
harsh analysis may seek to counter the shocks from a 
changing environment in other ways. One of the most 
attractive, but dangerous, is constant structural re- 
organization. This is not a new response. Consider 
this excerpt, written in 66 A.D., by Petronius Arbiter: 

"We trained hard — but it seemed that every time 
we were beginning to form up into teams, we would 
be reorganized. I was to learn that later in life we 
tend to meet any new situation by reorganizing, and 
a wonderful method it can be for creating the illu- 
sion of progress while producing confusion, ineffi- 
ciency and demoralization." 

Organization design is too important to be given a 
counterpunching assignment. It should be guided by 



marketing intelligence, technological understanding 
and sociological awareness. To design the organiza- 
tion well is probably the most demanding task top 
management can attempt. 

When it is done poorly, or left to evolve in random 
ways, adaptation to future events will have an unreal 
quality, like driving a car by looking only in the rear- 
view mirror, or steering a ship by correcting its wake. 



A flood of sensory data 

In the relevant future, organizations and individuals 
will experience a flood of sensory data and informa- 
tion. Their ability to think through — and about — 
this information in order to discern patterns of op- 
portunity and potential harm will be taxed to its limits. 
Decisions and choices will be required in greater 
numbers, and will be more varied and far-reaching in 
a world demanding novelty, transience and diversity 
for its desired qualities of life and the products 
needed to support myriad life styles. 

These stimuli may overload an individual, an or- 
ganization or nation, pushing tensions to intolerable 
levels. If that happens, the symptoms observed will 
be similar in all three entities. They probably will fol- 
low a pattern seen in nervous breakdowns, the stages 
of which in sequence are: confusion, anxiety, irrita- 
bility, apathy and emotional withdrawal. The future 
holds such dangers, but it also offers challenges 
which, if met well, may let this next period be one of 
the golden ages of man. The outcome is uncertain, but 
that only adds to its zest for those who would carry 
us forward. 

As one of our Broadway denizens, Damon Runyon, 
once advised, "The race may not be always to the 
swift, nor the battle to the strong, but that's the horse 
to bet on." 

Future management of human-oriented, market- 
oriented technologies will be a rigorous contest. Yet, 
I believe it is one that can bring out the best in each 
of us. If so, that kind of contest, unlike wars, could be 
one in which everybody wins. D 



25 



The Need 

for 

New Rates 



On November 20, 1970, AT&T asked the Federal 
Communications Commission for the first general 
increase in interstate long distance rates since 1953. 
AT&T Vice Chairman John D. deButts said at that 
time: "The increases in rates— designed to boost inter- 
state revenue by 6 per cent — are essential. They will 
help sustain the Bell System's extensive service im- 
provement programs and meet new dimensions of 
growth and demand for communications in the '70s." 

In its filing, the company asked that the new rates 
— expected to produce about $386 million in addi- 
tional revenue — become effective in January, 1971. 

Eighteen years have passed since the last general 
increase in interstate message telephone rates. In 
fact, interstate rates have been repeatedly reduced 
in this period. While the Consumer Price Index has 
risen about 47 per cent since 1953, interstate message 
rates have had a net decrease of between $450 mil- 
lion and $500 million. Jurisdictional sharing changes, 
which shifted revenue requirements from intrastate 
to interstate operations, totaled between $300 million 
and $400 million. These adjustments, and one of 
January 1, 1971, represent an annual savings to com- 
munications users of about $1.4 billion. 

This 18-year history of declining interstate rates 
was accomplished primarily by Bell innovations in 
technology and management which enabled the Sys- 
tem to cope with surging demand for service while. 



at the same time, cutting back the cost of providing 
it. For example, mechanization programs first con- 
verted all manual service to dial, then were extended 
to introduce Direct Distance Dialing almost every- 
where; Network Management Centers were devel- 
oped to make more efficient use of equipment in 
relation to traffic patterns, peak calling loads and 
other variables; and higher-capacity cable, together 
with microwave and carrier installations, multiplied 
the number of messages able to travel simultaneously 
along the same communications channels, reducing 
operating and construction costs. 

Such improvements helped to offset rising costs such 
as the higher wages that must be paid today to attract 
and hold competent people, the higher interest rates 
on large amounts of debt capital, and the generally 
higher prices from which the Bell System is no more 
immune than any other business. The System's ability 
to keep ahead of rising costs continued through the 
pre-1965 period, when inflation was 2 to 3 per cent 
per year. Since then, however, the rate of inflation has 
risen sharply, averaging almost 6 per cent for the 
years 1969 and 1970. 

On January 1 of last year, interstate rates were cut 
by $150 million, in accordance with a decision 
reached with the FCC in the interstate earnings re- 
view in the fall of 1969. At that time, the view of most 
economists was that business activity in 1970 would 



26 








^ 




remain at a high level, while the rate of inflation 
would decrease and interest rates ease somewhat. 

But things didn't turn out that way. General busi- 
ness growth slackened and inflation continued at a 
rate of almost 6 per cent. The growth rate of interstate 
messages went down from 13.2 per cent in 1969 to 
about 10 per cent for the first 11 months of 1970-this 
despite the fact that rate reductions such as that of 
January, 1970, tend normally to stimulate growth. 
Total interstate revenue growth was only about 6 per 
cent for the first 11 months of 1970, whereas the 
annual increase in the previous four years ranged 
from 9.8 to 16.1 per cent. 

As a consequence of all this — and of other factors, 
too — earnings on interstate service did not rise to an 
expected 8.5 per cent range. Instead they declined 
from 8.14 in 1969 to around 7.4 per cent. 

Building and the impact of inflation 

While growth rates of interstate messages and rev- 
enues are down, the Bell System's expenses and costs 
are up sharply. The business has mounted the largest 
program of service improvement in history, a pro- 
gram requiring huge amounts of capital in an infla- 
tionary period that has seen interest rates climb to 
record highs — as high as 9.43 per cent for Bell Com- 
pany debentures. 

Operating expenses reflect the impact of both ex- 
panded service effort and inflation on materials, sup- 
plies and wages— including those of added employes. 
At the same time, construction expenditures to meet 
current and future service needs were a record $7 
billion in 1970 for the Bell System as a whole — more 
than $1 billion over 1969. More startling, roughly 
$1.3 billion of that 1970 construction investment can 
be attributed to the impact of inflation since 1965. 
Also, the average cost of new debt capital has risen to 
nearly9percent — almost double what it was in 1965. 

In short, 1970 expenses for interstate service grew 
faster than revenues. This has led to inadequate earn- 
ings, even taking into account such factors as the 




28 



t 



below: New York Telephone building engineer studies 
(ruction job in Manhattan, part of a massive Bell System 
iing program. Below, top: Western Electric process tester 
ks production of new wire at Baltimore Works, which 
i/j'es telephone companies with materials to provide new 
ce. Bottom: Cable splicer's helper at Indianapolis 
hole site represents part of Indiana Bell's continuing 
ram to expand and improve service. 





surtax reduction, the intensive expense control efforts 
of the Bell System, and the continued availability from 
Western Electric of equipment prices well below that 
of other manufacturers. 

Billions for construction 

To meet service demands during the 1970s, the 
Bell System must continue to mount large construc- 
tion programs with capital requirements that will total 
in the tens of billions over the next decade. About 
half of this capital currently comes from such internal 
sources as reinvestment earnings and depreciation, 
although the proportion available from within the 
business is declining. The remainder ($4.1 billion in 
1970 and about $4.0 billion this year), must come 
from external financing. This outside capital has been 
raised, since 1964, from new debt issues — including 
last year's AT&T debenture offering of $1.6 billion. 
But there are reasonable limits to the amount of debt 
that ought to be incurred. AT&T's debt ratio now is 
nearly 44 per cent, and is expected to move above 
48 per cent by the end of this year if the company 
continues to finance through debt offerings. 

Improved earnings: the primary need 

In the near future, the Bell System must begin to 
attract new equity as well as debt capital. However, 
equity investors cannot be expected to risk their sav- 
ings unless the potential return in dividends and 
market price combined holds some promise of being 
greater than the return on debt securities. At the pres- 
ent time, considering current earnings, an equity 
offering probably would not win a favorable recep- 
tion from investors if the terms were favorable to 
existing share owners. 

For one thing, the market price of AT&T stock has 
declined in each of the last six years — from a high of 
$75 a share in 1965 to the low-to-middle 40's regis- 
tered last year. For another, AT&T stock is now selling 
close to its book value. Equity offerings under these 



29 



Below : More microwave facilities have been constructed at 
Apaclie Junction, Ariz., where these Long Lines men worl< to 
assure quality transmission. Below, left: Long Distance operators in 
Pittsburgh help handle growing volume of domestic and overseas 
calls. Below, right: New England Telephone man in Taunton, 
IVIass., worl<s on computer-like Long Distance operator 
console, designed to help speed handling of calls. 






30 



conditions obviously would dilute the value of the 
stock. In addition, over half of AT&T's present share 
owners paid more for their stock than it is worth 
today on the market. 

Clearly, improved earnings are essential to attract 
the new equity capital required for construction pro- 
grams. With today's economic conditions, overall 
earnings of at least 9.5 per cent are necessary if the 
Bell System is to meet its commitment to good service 
now and in the future. 

Rate adjustments the only answer 

Projected earnings on interstate operations — as- 
suming gradually improving business conditions and 
some easing of inflation, coupled with tight internal 
expense control — will fall far short of the 9.5 per cent 
required. Interstate earnings for this year, taking into 
account the impact of the $130 million separations 
change that took effect on January 1, are estimated 
at only 7.5 per cent or less. 

With that earnings projection in view, it is obvious 
that rate adjustments are required to produce the 
$130 million in added revenue requirements trans- 
ferred to interstate operations (which, of course, re- 
duces revenue requirements on exchange and intra- 
state long distance service by an equivalent amount), 
and to increase earnings to a level of 9.5 per cent. The 
total amount of revenues produced by the contem- 
plated rate adjustments would represent a 6 per cent 
increase in overall interstate revenues. This amount, 
coupled with cost savings due to anticipated changed 
calling patterns, would produce the required return 
of 9.5 per cent. 

"This is the level we and our financial advisors feel 
is needed to attract investors and to meet future fi- 
nancial requirements," said John deButts. 

The rate adjustments currently under consideration 
would not be "across-the-board," but would be ap- 
plied with the aim of saving operating costs as well 
as increasing revenues. The increase would be cen- 
tered on person-to-person and other operator- 



handled calls — which are, of course, more costly to 
provide. Increases in calls dialed direct would be 
limited to business hours and would be no more than 
about three cents a minute. Moreover, some inter- 
state messages would cost the same or less after the 
adjustments. 

The rate changes would be aimed at increasing the 
productivity of service operations by reducing the 
number of operator-handled calls— person-to-person, 
collect, third-number, credit card, etc. — and by 
spreading calling volumes across the less heavily-used 
hours to flatten out peak calling loads and provide 
more efficient use of the switched network. 

The changes would be cost-related, bringing rates 
more closely in line with the actual costs of the service 
being provided. Consumers would pay, for example, 
a more equitable portion of the expenses incurred 
on calls requiring operator assistance. On the other 
hand, rates would not increase — and in some cases 
would be lower — on interstate calls dialed without 
operator assistance during evenings, nights and 
weekends. 

To sustain the good record 

The individual consumer actually could avoid any 
increase — and perhaps save money — by dialing his 
own long distance calls during low-rate hours. The 
choice would be his. And this option would be of 
particular significance to the residence customer. 

The Bell System record of providing communica- 
tions service is a very good one indeed. The quality 
and reliability of interstate service has been going up 
while rates have been going down — for 18 years. Now 
this business finds itself in a situation where, for the 
first time in a very long time, increased rates are 
needed to sustain service of the kind it is asked to 
deliver and wants to deliver. But the rate adjustments 
contemplated will be moderate: With their approval 
and inauguration, the cost to long distance users still 
would be 14 per cent below the levels prevailing 18 
years ago in 1953. O 



31 



Bell 
Reports 



Manhole Module Makes Splicer's 
Work Easier 

A new development in motor vehicles 
that will help to make the telephone 
cable splicer's work a little easier is a 
truck equipped with an underground 
splicer's module, containing its own 
power and ventilation sources. 

Known as the "manhole module 
truck," the self-contained unit elim- 
inates much of the time and equip- 
ment needed to repair and service 
underground cable. Since the power 
and ventilation units are located in the 
truck, the familiar propane tanks and 
other paraphernalia needed at the 
manhole site will be unnecessary. 

It now takes two splicers approxi- 
mately an hour apiece to set up at a 
job. Plant experts figure that use of the 
module will enable one man to set up 
in just 15 minutes. He has only to re- 
move the ventilating hose from the 
back of the truck and drop it down 
the manhole and go to work. 

The module was developed and in- 
troduced in Denver by Mountain Bell. 



Laser Pen Device Draws Electronic 
Circuit Patterns 

A new machine developed by Bell 
Laboratories engineers makes use of a 
laser to draw patterns for tiny inte- 
grated circuits far more intricate than 
previously possible. These circuits are 
required for a wide variety of tele- 
phone equipment and services. 

The Primary Pattern Generator, as 
it is called, employs a photographic 
plate on a moving table; an argon 
laser; modulators and lenses to con- 
trol the laser beams, and a 10-sided 
mirror, rotating on air bearings, to re- 
flect the laser beam and expose se- 
lected portions of the photographic 
plate. Its accuracy is such that it can 



produce the equivalent of a mile-long 
straight line with less than five-six- 
teenths of an inch deviation. 

To attain such precision. It is nec- 
essary to operate the Primary Pattern 
Generator in a controlled-environment 
chamber, where the temperature is 
maintained within one-quarter degree 
Fahrenheit and each cubic foot of air 
contains fewer than 100 dust particles 
larger than one micron. 

The new machine is so fast that it 
takes only 12 minutes to complete a 
highly sophisticated circuit mask 
which formerly required more than 12 
hours of machine time. 

The device will be used in the pro- 
duction of photolithographic masks 
to be used by the Western Electric 
Company to produce Integrated cir- 
cuits for Bell System equipment. 



Alfred Zacharias of Bell Laboratories Opti- 
cal Device Department stiows a complex 
integrated circuit mask produced in min- 
utes by the new Primary Pattern Generator 
at the rear. The device, which employs a 
laser and a rotating 10-sided mirror, draws 
the intricate patterns many times faster 
than previous equipment. 




The Operator Is a Basso 

In the beginning. Bell System operators 
were men. But then the ladies, led by 
Miss Emma Nutt, arrived at the switch- 
boards, and they have been a "no- 
man's land" ever since. 

Now the men are making a come- 
back of sorts at the boards. For exam- 
ple, Steve Miller and Larry O'Meara, 
Roswell, N. M., high school seniors, 
are working at the long distance board 
for Mountain Bell as part of a distribu- 
tive education program. The young 
men are the first males ever to work 
as operators In New Mexico. 

They and six senior girls work part 
time under the program during the 
school year and full time during sum- 
mer vacations. They may become full- 
time employes after graduation, as 
have many other students. 

Women's lib take note! 

Picturephone* Service on Trial 
By President Nixon's Staff 

In a test of Picturephone service's use- 
fulness within an organization. The 
Chesapeake & Potomac Telephone 
Company has installed 10 sets in se- 
lected White House offices and In the 
nearby Executive Office Building. The 
trial is expected to run until April. 

Picturephone service has been avail- 
able within a downtown Pittsburgh 
exchange since July 1970 and on an 
internally-switched basis in Chicago 
since December 1970. 

Internally-switched Picturephone 
service will be available in New York 
in the second quarter of 1971. Long 
distance service between Chicago and 
Pittsburgh will begin in the second 
quarter of 1971. Exchange service will 
be available in Chicago and Washing- 
ton, D.C., in the second quarter of 
this year, and in New York City (Man- 
hattan) by year's end. 



32 




Cheryl Wilson, left, "talks" to Phyllis Levi 
during the first regular subscriber tele- 
phone call using Code-Corn. The call, be- 
tween the girls' homes in Columbus, Ohio, 
ended Bell System field trials that began 
almost five years ago. Code-Corn sets 
enable the deaf and blind to tap out 
messages over regular telephone lines. 



Phones for the Deaf and Blind 

It was a desire to teach the deaf to 
speak that brought Alexander Graham 
Bell to America more than a century 
ago. Now the deaf and the blind are 
able to speak over the phone, though 
not with their voices. 

Ohio Bell recently installed, for two 
young ladies in Columbus, the first two 
Code-Corn sets for regular subscriber 
use in the Bell System. The sets— which 
contain a light, a sending key and a 
vibrating disc — enable the blind or 
deaf to tap out messages in code. 

An ordinary telephone converts 
speech into electrical impulses that 
are transmitted and reconverted to 
speech at the receiver, but the Code- 
Corn converts transmitted signals into 
flashes of light and vibrations of the 
disc or sensor pad. A deaf person 
watches the flashes of light; a deaf and 
blind person feels the vibrations of the 



disc. The key is employed to transmit. 

The Code-Corn set was developed 
by the Bell Laboratories Indianapolis 
lab and is now being produced by 
Western Electric in Indianapolis. The 
suggested subscriber cost for the set, 
which is now available on order, is $3 
a month, plus the regular charge for 
telephone service. 

Another way the Bell System helps 
bring telephone service to the deaf is 
through its program of donating sur- 
plus teletypewriters to the deaf under 
an agreement with the Alexander 
Graham Bell Association for the Deaf. 
These machines, used in conjunction 
with a telephone and an acoustic 
coupler developed by a deaf California 
scientist, enable the deaf to call any 
person with similar equipment and ex- 
change messages. 

The telephone handset rests in the 
coupler, which changes signals from 
the teletypewriter into sound, and 
back again. The rates are the same as 
for any local or long distance call. 



Sky View Aids Waveguide 

A 113-year-old technique may prove 
to be the one practical surveying 
method needed to help lay the com- 



munications pipeline of tomorrow. 

Aerial photography — which French 
photographer Gaspard Felix Tourna- 
chon first got off the ground in 1858 
— is being tested by the Long Lines 
Department of AT&T in Indiana as a 
means of super-accurately surveying 
waveguide routes. 

An 80-mile coaxial cable route is 
being surveyed by photogrammetry — 
3-D aerial photography — which will 
be much less expensive than conven- 
tional surveying. 

Waveguide — a pipeline of copper- 
lined steel about the diameter of a 
person's wrist — will some day carry 
more than 250,000 telephone conver- 
sations simultaneously or handle a mix 
of telephone calls, data transmission 
and Picturephone® service as well. Its 
operation demands a completely level 
trench, since its signals are sent in 
"millimeter" waves that lose strength 
in going around curves. Imperfections 
in roundness also cut efficiency. 

Photogrammetry shows the most 
level ground for hundreds of feet at 
a time, without measuring every few 
feet or so as would be required by 
ground-level surveying. Infrared pho- 
tography is being used on a 20-mile 
stretch to pick out variations in the 
soil that will be encountered. D 



BELL 

telephone magazine 



VOLUME 50 NUMBER 1 



JANUARY/FEBRUARY 1971 



H. I. Romnes, Chairman of the Board and President 
John D. deButts, Vice Chairman 
Robert W. Ehrlich, Secretary 
John J. Scanlon, Treasurer 



Tim Henney, Editor 

Al Catalano, Art Director 

Donald R. Woodford, Managing Editor 

Robert A. Feinstein, Associate Editor 

Marco Gilliam, Associate Editor 



@ 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10017 212 393-8255 



©AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N. Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

Washington, D.C. 
Permit No. 43083 



Moving? Changes of address for persons on 
Ihe Bell Jolcphonc Maf;azine complimentary 
list should be brought to the attention of the 
Circulation Manager, Bell Telephone Magazine, 
Room 417, American Telephone & Telegraph 
Company, 195 Broadway, Now York, N.Y. 10007. 
Please include the mailing label from this issue. 



Printed in U.S.A. 



klSirs'uT?''f'B°LlBRARY 



KANSAS CITY 



MO 



64106 



^i^'^ 

^ 



Spirit of Service, page 1 

Talking At or With, page 4 y, 

President's Man, page 11 

Mothers of Invention, page 17 

Third Revolution, page 24 

Hot Lines, page 27 

Meeting A Commitme;*tlpaee 30 



March/April 1971 



APR 1319?! 



BELL 

telephone magazine 




Painting: The Spirit of Service, by Ernest Ham- 
lin Baker. Photo: Linemen Lee C. Boyles (on 
cover) and Kenneth Olson jr. (below) of Cook, 
Minn. Photographed by Vincent Nanfra. 




T- 



I 









The Greek philosopher Heraclitus observed: 
"All is flux; nothing is stationary." Look at a 
tree, a river or a person —they're not the same 
today as they were yesterday, just as they 
v^on't be the same tomorrow. Yet, they will 
still be Tree, River, Man or Woman. One mil- 
lion men and women comprise the Bell Sys- 
tem, an entity that continues in a state of 
change. Equipment is changing, from electro- 
mechanical switch to Electronic Switching 
System, from wire on a pole to buried cable 
and microwave and satellite signals in the 
sky. And, more significant, people are chang- 
ing. Bell people today as a whole are younger, 
they question more, they expect more, they 
move about more than did earlier genera- 
tions. Yet, at the center of this flux is an un- 
dercurrent not unlike that of a river— running 
deep and strong, changing yet remaining the 
same. It is the Spirit of Service, depicted on 
our cover, the opposite page and two follow- 



ing pages, as it was nearly 30 years ago and 
as it is today. At left is Ernest Hamlin Baker's 
painting. The Spirit of 5erv/ce, showing Line- 
man Angus MacDonaid patrolling an open 
wire in a blizzard. The painting done for 
AT&T commemorates efforts of a small crew 
to keep open the only long distance circuits 
between Boston and New York during the 
Blizzard of '88. The cover photo, which con- 
tinues onto the opposite page, captured the 
same spirit in two linemen at work near Cook, 
Minn. Appearing on the following pages are 
three other paintings done for AT&T, show- 
ing another lineman, an operator and a ser- 
vice representative, contrasted by photo- 
graphs of their modern counterparts. The 
breadth and depth of the Bell System per- 
haps is best measured in its faces, not circuit 
miles or call volumes. The man on the pole, 
the woman with the answer, the voice with 
a smile — that's where the spirit is. 






X 

I' 




\ 







Paintings, top to bottom: The Telephone 
Operator, by Richard Brown; The Service 
Representative, by Vuk Vuchinich; The 
Telephone Lineman, by Norman Rockwell. 
Photos: Cable Splicer Carl Face in Mon- 
terey, Calif., Operator Karen Kusek in Pitts- 
burgh and Service Representative Sylvia 
McClendon in Jacksonville Beach, Fla. Pho- 
tographed by lay Maisel. 



TALKINGATORTALKING\ 




H7BYJOHNA.HOWLAND 




Successful communications to and 
among corporate employees cannot 
be a duty delegated to an individual or 
an organization with a fancy title and 
then forgotten. Employee information 
is everyone's job, and when it isn't, the 
consequences can be formidable. 



Within the greatest communications organization in 
the world we are hurt and puzzled by a seeming 
communications failure — the problem of talking with 
our employees. By all odds, with the media and 
money at our command, we of all companies should 
be the case history of successful internal communica- 
tions. No other business has so much communication 
paraphernalia, technology and expertise at its com- 
mand, and probably no other business spends so 
much time, thought and money filling pipelines of 
corporate communications media. 

Yet, as we look around us, as we study the effect 
of this plethora of information, as we dip our toe 
into the chilly waters of employee attitudes and mo- 
rale, the evidence is frighteningiy consistent that — 
as is the case with every other large organization — 
there is a big difference between information and 
communication. Our employee body — at all levels 
— seems, if we can believe the multitude of research 
at our disposal, more confused, more misinformed, 
more distrustful, more alienated than ever. Further- 
more, as we have grown in size, in numbers of people 



Mr. Howland is Publications Director at AT&T. He entered New 
Jersey Bell from the advertising business in 1953 and prior to bis 
present job served as a field information director — a liaison func- 
tion betvt/een AT&T and the associated Bell companies— on public 
relations matters. For eight years previous, as advertising manager 
in charge of television, he was responsible for The Bell Telephone 
Hour, the Bell System Science Series and other corporate broad- 
cast efforts. He is a graduate of Brown University. 



and in complexity of work, this communications gap 
has geometrically widened. 

The fact that we are, perhaps, no worse off than 
any other comparable organization (perhaps even 
better) is small comfort. In a corporation of more than 
a million population, such a gap can be destructive. 
We should perhaps replace the omnipresent job 
safety plaque that says, "No Job Is So Important and 
No Service Is So Urgent . . ." with one that reads, 
"Communicate or Perish." 

Within the Bell System we collectively spend sev- 
eral millions of dollars for employee information 
through company magazines, employee newspapers, 
management and employee bulletins, films, CCTV, 
booklets, discussions and other orientation programs. 

Tons of paper, miles of film and tape — all magni- 
tudes—all shapes — all sizes — all telling the company 
story — each giving off its own bit of light. All are 
edited or produced by competent, knowledgeable 
and professional information people — all working 
hard (and not necessarily by divine right) on what 
each feels best for his company. 

But what of the collective impact? 

Confusion in communications 

Dr. Napoleon N. Vaughn, president of Urban 
Market Developers, Inc., Philadelphia, recently re- 
searched attitudes of employees — mainly minorities 
but with all employees as a bench mark — toward in- 
ternal information media. This qualitative study in- 
dicated that most employees— black or white— derive 
little from employee information that they feel is use- 
ful in their jobs and careers. 

Vaughn describes our employee communication 
problem this way: 

"The American Telephone and Telegraph Company 
is the largest communications system in the world, 
and yet its internal organization suffers outright con- 
fusion in the communications area. The irony of the 
individual employee isolated within the massive sys- 
tem is everywhere apparent. Workers are saturated 



with the minutiae of their own jobs, while knowledge 
of related positions and responsibilities is kept in 
shrouded secrecy. No direct line is open, so the em- 
ployee is marooned on an island of limited access. 
The prevailing situation is characterized by cynical 
resignation. No personal consideration is really ex- 
pected in a network that is too powerful to be chal- 
lenged from within." 

Black employees at Bell, says Vaughn, feel they are 
the last ones to know anything. They are forced to 
move outside of conventional channels of informa- 
tion and turn to their own communications network, 
the grapevine, which they recognize as unreliable 
but better than nothing. According to Vaughn, white 
employees who were surveyed showed little more 
love for company publications. 

Hardly a measure of success 

This and other surveys indicate that many em- 
ployees, especially those in nonmanagement and 
lower management positions, either ignore or at best 
scan their company bulletins, newspapers and maga- 
zines. Perhaps this is due to a second problem in the 
dimension of information versus communication, 
which employee information people do not discount 
— the question as to whether formal employee infor- 
mation channels (controlled, not free, media) can 
effectively communicate. 

To be sure, after spending this time and money, 
something must be coming out of all this effort. And 
of course something is. A lot of material is real and is 
helpful to the employee or manager. But sometimes 
it seems that the best that can be said for most of our 
employee information activity is that it keeps a lot of 
people employed, and it doesn't seem to do any 
harm. Hardly a measure of success. 

Yet every study taken reinforces the theory that 
the employee wants to know. If the wind is right and 
the moon in favorable phase, he just might listen 
and even believe. But to answer the question as to 
why we seem to fail in our efforts to communicate, 



we must first, like Alice, ask, "Would you tell me, 
please, which way .1 ought to go from here?" To which 
the Cheshire Cat replied, "That depends a good deal 
on where you want to get to." 

Why do we try to communicate within the em- 
ployee body in the first place? A recent conference 
of Bell System employee information managers tried 
to answer that rather unsettling question this way: 

"Through formal, organized programs, we try to 
communicate with employees in order to promote 
the welfare and usefulness of the business as a corpo- 
rate enterprise and to promote the welfare and use- 
fulness of employees in the business." 

To build support and understanding 

Within this broad, overall objective, what are some 
specific reasons why we try to communicate with em- 
ployees? The information managers said it was to 
build support and understanding for company and 
System goals of providing good service, staying so- 
cially viable, technically innovative and financially 
sound. They also agreed, or almost agreed, that we try 
to communicate in order to make employees effec- 
tive spokesmen for the business in explaining changes 

- ANC, DDD, EDDD, etc. - and in defending policy 

— need for deposits, reasonableness of rates, etc. 
Another reason is to increase employee effectiveness 
and performance through improved safety, sales ex- 
pense control, housekeeping and productivity. Em- 
ployee information also should attempt to make the 
business more aware of and responsive to employee 
needs and desires by serving as a pipeline up to man- 
agement as well as a pipeline down to employees. 
Information channels should serve to satisfy employee 
needs and desires to be informed on items of interest; 
to feel "in" on company activities, and to feel their 
efforts are worthwhile and appreciated. Finally, the 
managers agreed, information activities should strive 
to make implementation of basic business changes ac- 
ceptable and possible by providing employees with 
knowledge they must have to effect the changes, e.g.. 



building moves, benefit changes and work situation 
changes such as new hours, etc. 

Whether or not this rationale is adequate, I leave 
to your own judgment, for I suspect that top, middle 
and first level management and the body politic all 
might have different definitions geared to their own 
vantage point and needs. 

But "purpose" is a tough proposition — one of 
those words that force thinking through. 

Simplistically, the purpose of any communications 
program is, indeed, in support of the purposes of the 
business, itself. 

But purpose is double-edged. What of the em- 
ployee? What is on his mind? What of his purpose? 

I'm not sure that we know, or that any of our survey 
takers yet know, or for that matter that even the em- 
ployee, himself, knows. 

There is no average employee 

But we do know this: "Employee" too often con- 
notes one amorphous mass to us. And yet we know 
there is no average employee. He is a conglomerate, 
an aggregate— functionally, professionally, ethnically, 
educationally — a company of individual people. We 
have failed in reaching these people probably be- 
cause the efforts we exert are spent in a something- 
for-everyone approach that probably fails to satisfy 
anybody. The need is to communicate locally, per- 
sonally and pertinently to the person; not to the 
impersonal employee. 

We know about the faceless "they" who run this 
company — the shadowy forces that skulk behind all 
management decisions — the "they" who in their 
perversity ruin otherwise sound plans. No one can 
ever, of course, pin "they" down. But as an example 
of this they syndrome, we need only look at a recent 
management attitude pilot study conducted by re- 
searcher Stanley Peterfreund for AT&T: 

"There's no evidence that management people 
have a consistent awareness of what company goals 
are, where the company is headed or how they fit 



into the overall scheme. There's a view that top exec- 
utives and those below them speak a different lan- 
guage, that each is tuned in to something quite differ- 
ent. Some feel their top executives don't have an 
accurate picture of the field because the information 
being fed to them is often watered down. 

Little contact with executives 

"At a more fundamental level, there are examples 
of information breakdowns that have operational 
consequences. 'It's not,' said some respondents to the 
survey, 'that [we] are resistant to change. It's the 
company, top management or the system that's slow 
and ponderous in innovating.'" . . . (They!) "'Man- 
agers have so little direct contact with their top exec- 
utives that they really don't know what the executives 
are thinking, what their plans are.'" 

Our employee information media are only one di- 
mension, and a not too satisfactory dimension at best, 
in this process of communication — a process that in- 
cludes such intangibles as climate, trust, credibility, 
integrity, access, personal relationships, levels and 
other factors. We must keep in mind that our media 
in their communications dimensions frequently have 
little relationship to what the employee wants to 
know or even needs to know just to do his job. 

Information vs. communication 

Furthermore, whether anything is put out through 
formal media or not, communication quite obviously 
is going on — implicitly. Silence communicates, visual 
impressions communicate, experiences communicate 
as do the environment and supervision with which 
every one of us works. 

And this is where you — not I as an employee 
information practitioner — come in. 

Peterfreund, who for more than 15 years has 
worked closely with the Bell System, as well as many 
other large clients in this area of employee commu- 
nications, has said continuously that communications 



cannot take place unless every manager supports 
the maintenance of a positive communications cli- 
mate. By that he means developing a working envi- 
ronment in which every employee has access to the 
information he needs and wants. An environment in 
which, when management had something to say, it 
would be heard and believed. When employees had 
something to say, there would be somebody listen- 
ing; not because the book said management should 
listen, but because what was being said was poten- 
tially of value and because the person who was com- 
municating was an important member of the com- 
pany, with a contribution to make. Peterfreund points 
out, and I suspect he is right, that because each com- 
pany has a staff group responsible for employee 
information — at least theoretically experts in their 
field, putting out technically fine publications, films, 
presentations and the like — that the rest of manage- 
ment falls into the trap of assuming that the job of 
communications is being done just because we're 
there — producing information, but not necessarily 
producing communications. 

job-related information 

Peterfreund has learned in virtually every study he 
has been associated with, whether for the Bell Sys- 
tem or others: "If people feel well informed, their 
attitudes on every score tend to be better. Their inter- 
est starts high and is maintained at a high level until 
they become demotivated and frustrated. 

"Their primary interest is in job-related informa- 
tion — in a very personal sense. They are concerned 
with their job, their department, their growth and 
advancement opportunities, the results of their work, 
how well they're doing." 

Peterfreund continues: 

"And it's here that communications most often 
break down — right on the job, itself — where the 
consequences are tangible. Where new practices and 
procedures aren't adequately explained. Where dis- 
cipline is substituted for constructive corrective com- 



munication. Where barriers to productivity — and 
waste — go uncorrected (and often undetected). 
Where the supervisor has no time (and sometimes no 
interest) in listening, in getting feedback. We find 
plenty of 'company information' — social news, peri- 
pheral subjects, etc. — but a neglect of the commun- 
ication about the guts of the work, itself." 

Communication is no more important than in times 
such as these, when job economies, rigid cost control 
and cost reductions are sought. "Yet," according to 
Peterfreund, "it's at times like these that communica- 
tion is often curtailed, rather than expanded. Unless 
there is a mutuality of objectives, you're not going to 
get the benefit of your employees' ability to contrib- 
ute to these objectives. They start off wanting to, but 
wind up frustrated and rejected." 

If it's propaganda^ so be it 

In large part, because there are too many in man- 
agement who assume employees are opposed to com- 
pany objectives, we communicate, I fear, accordingly. 
It is almost inevitable that the prophecy becomes 
fulfilled in these circumstances. 

Communication is important because unless peo- 
ple know the company objectives, they can't associ- 
ate them with their own. If conveying the company 
viewpoint is "propaganda," so be it. We shouldn't 
apologize for it. We should just do it well. 

Communication is important because it's essentia! 
to the management of change. Without facts, under- 
standing and acceptance, efforts to change are 
doomed to failure. Without well-directed communi- 
cation, there isn't a chance. 

Communication is important because without a 
communion, a sharing of ideas with others in a mood 
of mutuality, the gaps will never be bridged. The 
polarization that seems to plague the Bell System 
today will only become more pronounced. 

So it boils down to this: Communication is your 
— the individual supervisor's — job more than mine 
or that of my colleagues. 



You are the one who must articulate company 
objectives and develop communications channels 
that both satisfy management's desire to have its 
goals known and fulfill the employee's needs as well 
as his desires to know. 

It's your payoff 

it isyour job tofostera climate in which employees 
at every level feel well informed. 

It is your job to know what's going on, what peo- 
ple think is really happening "down there." 

No small order, but it's your payoff. 

Some 15 years ago William H. Whyte wrote a 
series of articles for Fortune magazine called "Is 
Anybody Listening?" which dealt with this and other 
communications problems. He said: "Only with trust 
can there be any real communication, and until that 
trust is achieved, the techniques and gadgetry of com- 
munication are so much wasted effort. Study after 
study has pointed to the same moral: If management 
does not enjoy confidence, it has itself to blame. 
Either its policies have not been such as to be proof 
against animadversions or, more frequently, it does 
not realize that resentment and suspicion exist at all. 
It is easy for management to overlook this suspicion, 
for it will feel that company policies do not warrant 
any. They may not. But because of an absence of real 
communication, the present executives may be un- 
aware of the fact that a stereotype born of policies 
long since past is still haunting their shop." 

It may be reassuring to be reminded by that 15- 
year-old article that our predecessors were no wiser 
than we. But it also indicates we have not learned 
much in the intervening years. 

And I would suspect that by his reference to "man- 
agement," Whyte did not mean "they." 

"If the people around you are spiteful and callous, 
and will not hear you," wrote Dostoevski in The 
Brotliers Karamazov, "fall down before them and beg 
their forgiveness; for in truth you are to blame for 
their not wanting to hear you." D 




Illustration: Jerry McConnell 



10 



President's Man 




It's been six months since Dr. Edward 
David moved from Bell Laboratories' 
Murray Hill headquarters to Washing- 
ton's Executive Office Building as 
the President's Science Adviser. 
How is he doing? What has he done? 

by Howard D. Criswell Jr. 

In Washington, the popular view is that President 
Nixon wanted Bell Labs' Dr. Edward E. David Jr. to sit 
at his right hand as Science Adviser to bring to gov- 
ernment a pragmatic, technical approach in a day 
when science and technology are under attack and 
their problems seem to threaten the land. 

If this reasoning is true, the President got what he 
bargained for. Dr. David, an engineer with a doctor 
of science degree, had been solving problems at Bell 
Labs for 20 years, the last five as executive director 
of the Communication Principles Division. No sooner 
had he arrived last Sept. 14 than Dr. David was called 
upon to start solving the thorny, practical problems 
of the fiscal 1972 budget. 

"We have a tremendous priorities problem," Dr. 
David observed in his high-ceiling suite in the Execu- 
tive Office Building. "There's always the question of 
how to use the money available. However, the main 
problem we face is the morale of the technical and 
scientific community." 

To improve this poor morale, he believes the Ad- 



Howard Criswell is a Washington, D.C.-based freelance writer 
who spent 13 years with the Associated Press. He served as a 
speech writer for NASA and as associate editor of a Washington 
science and research newsletter. 



11 



ministration "has to bring science into relation with 
national goals. The nation must depend upon science 
and technology to solve its problems and reach its 
goals. We have to do this," he emphasized. 

In the forefront are environmental problems, to be 
faced primarily by the newly established Environ- 
mental Protection Agency. "We've taken components 
from Health, Education and Welfare, the Atomic 
Energy Commission, and Interior," Dr. David ob- 
served, "and put them together to reach the goals." 

Inflation takes its toll 

"However, not all Government research and devel- 
opment is going to solve environmental problems. 
The money's not all going to practical problem solv- 
ing, either. There's a great deal of money spent by 
agencies that still goes to basic research." 

As for the financial plight of colleges, universities 
and medical schools caused by research cuts in recent 
years, Dr. David believes the situation is not now as 
bad as it once was. "In fiscal 1970," he pointed out, 
"there was 8 per cent more money appropriated than 
in the previous year. Unfortunately, inflation has con- 
tinued to take its toll. Aside from the financial 
troubles, the big problem is the morale of the tech- 
nical community. I see timidity and caution and a 
lack of courage among people who a few years ago 
would have been at the front of things. This attitude 
has been reinforced by a number of things beginning 
with rejection of a rational approach to life by stu- 
dents and other people." 

After World War II, he noted, science and tech- 
nology were considered the fair-haired of Govern- 
ment spending. "Almost anything done in the name 
of research was acceptable." Now the pendulum of 
public opinion has swung the other way. Dr. David 
believes. "Today, the big problem is rejection by 
society of science and technology. The feeling in 
many quarters is that technology and science have 
caused many of society's ills. This is a rejection of 
contributions that science and engineering are mak- 



ing. We used to be heroes, and now we're villains." 
Dr. David believes it is not fair for society to point 
an accusing finger at science and technology. "So- 
ciety, itself, had a strong role in the application, but 
science and technology have been picked as the 
whipping boys." He believes once the relationship 
of science to society is understood by the nation, 
once their goals are together, the solutions to the 
problems — including the priority problem of morale 
— will be that much nearer. 

One long-range major goal will be a continuing 
search for a clean source of energy, which Dr. David 
foresees as an achievement of the 1980's. However, 
he acknowledges that the Administration is not ready 
to embrace this as a targeted goal. He added: "The 
need for clean air must be made explicit with certain 
fiscal caveats. An open-ended goal, for example, 
might be irresponsible in the fiscal sense." 

Millions for clean air 

Toward the goal of clean air, he noted the Govern- 
ment already is spending millions of dollars yearly. 
This includes $200 million for a breeder reactor pro- 
gram to better utilize uranium in nuclear power 
plants and make its use commercially feasible. 
Another $100 million is being spent annually on such 
items as fusion research and attempts to remove sul- 
phuric oxide from fuels used in commercial power. 

He noted if this spending is continued, the total 
for the nineteen-seventies will exceed $3 billion. 

Dr. David's offices are adjacent to the White House 
in the Executive Office Building, which is the Old 
State Department Building, a 100-year-old Washing- 
ton landmark. The President's Science Adviser has 
quarters in the extreme south end of the second floor 
near the Vice President's office. Within the high-ceil- 
ing room. Dr. David is comfortable and at ease. 

One of the first things he moved into the corner 
room was a lighted display case, some five feet high 
by six feet long. This he filled with his mineral and 
paleontology collection, which he noted with some 



12 



pride "is pretty good for a private collection. I like 
Washington," he said with relish, "it's very stimulat- 
ing. And Government service is much more demand- 
ing than I had expected. I find it quite agreeable." 
The Davids settled into a Washington house and 
enrolled their 14-year-old daughter in school, while 
he attacked a job that has been praised, criticized 
and often misunderstood. 

A shift in priorities 

Just what are the functions of a Presidential Science 
Adviser? Dr. David took over after a particularly try- 
ing period that saw significant cuts in spending and 
changes in direction. In the final two years of the 
Johnson Administration, budget cutbacks in science 
began to be felt. When President Nixon took office, 
he began a shift in priorities as well as further cuts in 
basic, untargeted research money in favor of using 
Government money to solve scientific and techno- 
logical problems affecting the nation. 

Many Washington lobbying groups felt Dr. Lee 
DuBridge, whom the President appointed when he 
first took office, did not have a strong enough voice 
as Science Adviser and was not getting the point 
across that budget cuts were causing problems. This 
was particularly true of the effect the cuts had on the 
already hard-pressed medical schools whose opera- 
tion depended upon research money, most of it 
awarded through the National Institute of Health. 

Dr. Philip Handler, the Duke University biochemist 
who is president of the National Academy of Sci- 
ences, believes each Presidential Science Adviser 
"must decide for himself his real responsibility." 

As the N.A.S. president. Dr. Handler is the nation's 
No. 1 science spokesman. In his opinion, the Presi- 
dential Science Adviser is not, as many scientific so- 
cieties and groups believe, supposed to function as 
a White House representative of the scientific com- 
munity to further their causes. 

Of course. Dr. David, as other Science Advisers be- 
fore him, is a member of the N.A.S. and thus privy to 



most, if not all, of the scientific problems of the day. 

In Dr. Handler's opinion, the President's Science 
Adviser is first of all "the President's man 24 hours 
a day. His primary responsibility is to see that the 
vast technical apparatus of the United States is uti- 
lized to reach the President's goals. 

"He's not there to frustrate the President," Dr. 
Handler continued. "He's there to see that the Presi- 
dent's goals are achieved." 

Another aspect of the Science Adviser's job that 
Dr. Handler considers important is its invisibleness. 
"What the public hears are the decisions about to be 
made by the President, the Department of Defense 
or perhaps the Commerce Department," he noted. 
"The work of the Science Adviser that went into the 
decision goes unnoticed." 

Because he is an inner member of the President's 
team. Dr. David cannot with propriety discuss his 
role in decisions. Since being piped aboard. Dr. 
David mainly has been involved in discussions that 
concern Government spending of money for science 
in the fiscal 1972 budget. 

Science budget increase 

There was a surprise when the President's 1972 
budget was released, for it contained a 9.3 per cent 
increase for science and research. Proposed increases 
are earmarked for hard-pressed universities, medical 
schools and the National Science Foundation, among 
others. N. S. F. was scheduled for a $100 million in- 
crease, and another $100 million was earmarked for 
biomedical research. 

Despite Dr. David's behind-the-scenes role, many 
of the proposed increases were generally attributed 
to the strong case he presented the Office of Man- 
agement and Budget. 

Dr. David sees his role as Presidential Science Ad- 
viser "to provide the President with the best advice 
on science and technical subjects. 

"I see the President about once a week. He's ex- 
tremely interested in the state of science and technol- 



13 



ogy. He knows you can't start a broad new health pro- 
gram without technical and scientific components." 

Dr. David brought a new image to the Adviser's 
position with his almost boyish appearance. His pre- 
decessor, Dr. DuBridge, the former Caltech president, 
was the personification of the elder adviser sitting at 
the right hand of the leader. Kindly and almost gentle 
in his patience with Congress, the white-haired Dr. 
DuBridge brought the best of scientific and academic 
credentials to the job. 

Dr. DuBridge's term was busy, filled with the emer- 
gence of pressing problems of large magnitude, many 
caused by the new Administration's spending re- 
straints. One such problem was the plight of medical 
schools. When Federal research was cut, nearly every 
medical school felt the pinch at a time when society 
in general was complaining about the lack of physi- 
cians and a breakdown in health care in many areas. 
Because of the financial restraints, the Administration 
was forced to make choices, many of them unpopu- 
lar with groups of institutions that found themselves 
left out. At any rate, this is but one example of the 
frustrations of the job, which must mix scientific ex- 
pertise with the cold, hard facts of living within polit- 
ical bounds with Administration goals in the fore- 
sight. 

Dr. DuBridge announced he was simply retiring 
from the demanding position that brought him to 
testify before Congressional committees 16 times dur- 
ing a 14-month period. Many of these appearances 
were long and protracted sessions in which he was 
asked questions that touched on nearly every phase 
of science and technology. The Congressional ap- 
pearances were in addition to many long meetings 
with the Office of Manpower and Budget and con- 
ferences with experts on environment, space sci- 
ence and technology, national security, air traffic 
control, communications policy, life sciences energy, 
education research and development, academic sci- 
ence, international science cooperation and others. 

The President's Science Adviser is a prime candi- 
date as speaker for many scientific and technological 



groups. To this harried atmosphere. Dr. David 
brought a relaxed attitude and an ability to face the 
grind physically. At 46, he still looks like an under- 
graduate, friendly and wise beyond his years, al- 
though it has been 26 years since he was graduated 
from Georgia Tech. He followed that with a master 
of science (1947) and a doctor of science (1950), both 
from Massachusetts Institute of Technology. 

Naturally, he has inherited all the problems that 
faced Dr. DuBridge. He began right off with long 
meetings with budget officials over distribution of 
science's share of the fiscal pie. 

The intricacies of budgeteering 

Insiders have reported that in his meetings with 
Casper Weinberger, head of the Office of Manpower 
and Budget, Dr. David has been impressive with his 
knowledge and ability to pick up the intricacies of 
budgeteering, that never-ending Government game. 

Since he took office he has talked privately with 
several senators and congressmen, appeared before 
the House Government Operations Committee and 
made two or three speeches in which he said he 
"kept a low profile." While he has been busy, such 
activities have been only warm-ups for the months 
ahead when the Administration must present its 
budget case and programs to Congress, particularly 
to appropriations committees. 

Dr. David feels his job is not only to respond to 
Presidential requests, but to offer suggestions to initi- 
ate directions and programs. One such area he is 
suited to plug meaningfully is the use of computers in 
education, a subject on which he is considered an 
expert. With Dr. J. G. Truxal of the Polytechnic Insti- 
tute of Brooklyn, Dr. David is co-author of "The Man 
Made World," a course taught in 400 high schools 
and several colleges. The course teaches use of the 
computer as a tool, simulating the real world. 

"The advantage is that the student can gain insight 
into problems without direct experience. For exam- 
ple, in teaching about epidemics, population growth 



14 



or traffic patterns, the computer is a useful tool. A 
computer is not really awesome. It is possible to teach 
on any level a great deal about computers and how 
they work," Dr. David explained. 

Dr. David pointed out that the executive director 
of Bell Labs' Research Communication Science Divi- 
sion, Dr. John R. Pierce, as a member of the Presi- 
dent's Scientific Advisory Committee (P.S.A.C), 
headed a panel in 1966 that reported on potential use 
of computers in schools and colleges. The time may 
be ripe now. Dr. David observed, to propose that the 
President have the report updated. 

As the President's Science Adviser, Dr. David also 
doubles as the head of the Office of Science and 
Technology. Actually, the dual positions are one. 

When the Russians launched the first earth-orbiting 
sputnik in 1957, the late President Eisenhower real- 
ized there was a lack of scientific advice available 
to him. He created the office of Presidential Science 
Adviser and the President's Science Advisory Com- 
mittee, composed of 18 top scientists and engineers. 

A twofold charter 

The Office of Science and Technology came in 
1962, created by what is known as Reorganization 
Plan No. 2 during John F. Kennedy's aborted term. 
It was formulated around the Science Adviser's post 
and P.S.A.C. The O.S.T. has a twofold charter: To ad- 
vise and assist the President on matters of national 
policy as they pertain to science and technology, and 
to evaluate and coordinate the total Federal program 
in science and technology. But President Kennedy 
also saw the Office of Science and Technology as an 
arm that would assess selected "scientific and tech- 
nical developments and programs in relation to their 
impact on national policies." 

Technology assessment and the effect of technol- 
ogy on our society is a facet of science advising that 
Dr. David expects to find occupying more of his 
time. The O.S.T. has only a staff of 25 and an annual 
budget of roughly $2.2 million. Often, when scientific 



or technological questions arise, they are answered 
by awarding contracts with experts in their fields who 
provide the response. One such contract is with the 
Mitre Corp. of McLean, Va., a so-called think tank 
that is studying how technology can be assessed and 
how its effect on society can be predicted. 

Different matter today 

Fifty years ago, science and technology were not 
advanced enough to judge the impact of automobile 
exhaust on the atmosphere or the use of rivers as 
sewers, it is a different matter today, for the effects 
of the SST on the atmosphere or the encroachment 
of man into the Florida Everglades are determinable 
factors. Because of this, there have been suggestions 
to expand Dr. David's function and scope. 

As an engineer. Dr. David knows well the impact 
of technology and the possible effects on ecology. 
In one of his first speeches after coming to Washing- 
ton, he dealt with the problem before the Industrial 
Research Institute when he asked such questions as, 
"Who would assess the assessors?" "What should be 
the generic results of assessments?" "What is the 
difference between assessments as proposed today 
and the usual marketing study and decision-making 
process of the past?" 

"My own prejudice leads me to believe that one 
output of assessments ought to be the identification 
of crucial data and information, and the design of 
selective economical experiments to obtain these 
critical items," he said. He concluded: "it's very clear 
that if we're to successfully continue industrial and 
technological progress in this country, we must de- 
velop a technique for assuring the public that its con- 
cerns are being duly considered." 

Of technology. Dr. David said: "I don't think tech- 
nology is going to overwhelm us as a nation. The 
American people have always been able to manage 
their affairs well. Technology should be used for what 
it's good for, not only for improving the standard of 
living, but also the quality of living." D 



15 



Necessity and Bell- 
Mothers of Invention 



The January/February issue of this magazine carried 
a story, From Concept Into Service, dealing with 
traditional Bell System emphasis on R&D, built-in 
service motivations,the unique organization of the 
business and other special qualities responsible for 
continuing Bell System technological achievements 
through the years. This is the second section of 
the two-part feature. Having reviewed the central 
reasons for Bell's technological leadership,BTM 
now looks at the events and inventions themselves. 
Alexander Graham Bell, whose fertile innovative 
mind spawned new ideas in areas ranging from 
aerodynamics to the breeding of sheep, urged his 
followers to "leave the beaten track occasionally 
and dive into the woods. You will be certain," 
he said,"to find something you have never seen 
before. "The following pages provide a sampling 
of things seen for the first time by the scientists 
and engineers of the Bell System — of developments 
that have been of enormous benefit to telephone 
users as well as to the world at large. 



Fusing Sound and Pictures 

In the early 1920's, when the Bell Sys- 
tem was developing a means of send- 
ing still photographs over telephone 
wires to newspaper offices, some 
imaginative scientists and engineers 
saw the possibility of devising a meth- 
od whereby they could transmit sound 
along with pictures and, in addition, 
accommodate motion. They spoke of 
this as "television." The first public 
demonstration of the medium came 
in 1927 when Herbert Hoover, then 
Secretary of Commerce, spoke from 
Washington and his voice and picture 
were received over wire at Bell Labo- 
ratories in New York. On the same 
day another TV program was broad- 
cast, over the air, to New York from 
the Labs' facilities in Whippany, N.J. 

Commenting on the new develop- 
ment, AT&T President Walter S. Gif- 
ford said: "It is our constant aim to 
furnish this country with the most 
complete telephone service possible. 
In connection with that aim, we en- 
deavor to develop all forms of com- 
munication that might be supplemen- 
tal to the telephone. With that in view, 
we shall continue to work on tele- 
vision, which although not directly a 
part of telephone communication, is 
closely allied to it." 

In the years since, television tech- 
nology, with the aid of many contri- 
butions from Bell Laboratories, has not 
only created a vast new industry, but 
has advanced to the point where an 
individualized, person-to-person ser- 
vice is practical; Picturephone* service 
enables the telephone user to "see 
while he talks." This goes far beyond 
broadcast television, for it places a 
compact TV studio, camera and all, in 
the home or office. The first field trial 
of the system took place early in the 
year 1969 between Westinghouse 
Electric Corporation offices in New 



18 



York and Pittsburgh. Since then, 
Picturephone service has become 
available to the public on a limited 
basis. Among its newest users are key 
White House aides of President Rich- 
ard M. Nixon. Successful trials in in- 
dustry and government suggest that 
the service will become commercially 
attractive on a widespread basis in this 
decade. 

Radio Astronomy 

In 1928 a young physicist, Karl Jansky, 
was asked to resolve a problem that 
was perplexing his Bell Labs associ- 
ates: the problem created by a pecu- 
liar kind of "noise" that was disrupting 
the recently-opened transatlantic 
radiotelephone service. 

By 1932, Jansky had established, 
with the aid of the Labs' sensitive new 
transoceanic radio receivers and a 
large rotatable antenna, that most of 
the noise was caused by lightning 
flashes, some from as far away as the 
opposite side of the globe. Some, but 
not all. He also detected a steady his- 
sing whenever his antenna was 
pointed at one particular section of 
the sky — a section that moved syn- 
chronously with the shifting canopy 
of stars. 

And so it was that Jansky had dis- 
covered radio astronomy. 

Bell System contributions to radio 
astronomy have continued to be im- 
portant. In 1965 Bell researchers, using 
an antenna mounted on a hilltop in 
Holmdel, N.J., detected what appeared 
to be radiation remnants of an explo- 
sion that gave birth to the universe. 
Such a primordial explosion is em- 
bodied in the so-called "big bang" 
theory, which seeks to explain the 
observation that virtually all distant 
galaxies are flying away from the 
earth. Their motion implies that they 
all originated at a single point some 




Integrated circuits 




Picturephone® service 





Diode memory cells 



Dye laser 





10 or 15 billion years ago. The Bell 
observations were of radio waves that 
appear to be flying in all directions 
through the universe. Since radio 
waves and light waves are identical, 
except for their wavelength, these are 
thought to be the remains of light 
waves from the primordial flash. 

On the Nature of Matter 

In 1927, as part of Bell Laboratories' 
effort to clarify the interaction of elec- 
trons and solids (which, hopefully, 
would enable the System to develop 
improved vacuum tubes), Clinton J. 
Davisson and Lester H. Germer con- 
ducted an experiment that was to add 
hugely to man's knowledge of nature. 

The two scientists directed a stream 
of electrons at a thin slice of nickel 
crystal and determined how they 
bounced off. When the puzzling re- 
sults were analyzed, it was clear that 
the electrons did not ricochet off the 
crystal like the small, hard balls they 
were supposed to be. Instead they re- 
bounded in the form of waves. Thus 
a fundamental concept of quantum 
mechanics was given experimental 
verification. 

Davisson shared the 1937 Nobel 
Prize in physics with George P. Thom- 
son of England. Their experiments had 
convincingly proved the wave nature 
of matter on which the whole struc- 
ture of quantum mechanics now rests. 

Negative Feedback 

In the late 1920's one of the major 
problems confronting the Bell System 
was that of overcoming the distortion 
that vacuum-tube amplifiers pro- 
duced in telephone signals. While or- 
dinary radio work required only a sin- 
gle amplifier and the distortion could 
be held to acceptable levels, the 
extraordinary challenge to telephony 



19 



was to design improved amplifiers for 
boosting voice signals every few miles 
along continent-spanning wires and 
cable. The cumulative effect of even 
small distortions was intolerable. 

The answer came in 1927, when the 
Labs' Harold S. Black, standing on the 
deck of a Hudson River ferryboat, con- 
ceived the basic idea of negative feed- 
back — a means of subtracting a part 
of the amplifier's output and feeding 
it back to its input, thereby canceling 
the distortion. Black wrote on his 
newspaper an equation proving that 
this would reduce distortion by a hun- 
dredfold or more, and yield an equal 
improvement in amplifier stability. 

In addition to its impact on tele- 
communications, Black's discovery 
provided one of the principles on 
which electronic control systems, such 
as those used for missile guidance and 
aircraft control, are based. The nega- 
tive-feedback amplifier also has con- 
tributed greatly to the large "hi-fi" 
and stereo businesses. In the view of 
many scientists, the device ranks with 
the audion vacuum tube and the tran- 
sistor as one of the three inventions of 
broadest scope and significance in 
electronics and communications of 
the past half century. 

The Transistor Effect 

Shortly before World War II, Bell Lab- 
oratories, recognizing the need to sup- 
plement vacuum tube electronics in 
the rapidly-growing communications 
spectrum, built up a team of physicists 
to explore the behavior of electrons in 
solids — the so-called "solid state." 
Headed by William Shockley, the 
group concentrated its attention on 
silicon and germanium, curious ele- 
ments that are only fair conductors of 
electricity. 

Early efforts, aimed at building am- 
plifiers out of these semiconductors, 



were unsuccessful. But in the late 
1940's, John Bardeen, a young physi- 
cist who had only recently joined the 
team, proposed a new theory about 
the behavior of electrons that seemed 
to explain the Initial failures. In the 
course of testing the theory, Walter H. 
Brattain made observations that en- 
abled him, with Bardeen's assistance, 
to devise what is called the point- 
contact transistor — an amplifier that 
worked differently from those origi- 
nally envisioned. Almost concurrently, 
Shockley conceived still another varia- 
tion, called the junction transistor. It 
was upon the latter version that most 
subsequent development effort would 
be concentrated. 

The three Bell scientists shared the 
Nobel Prize for their discoveries, in 
1956. Their work had ushered in a new 
electronic era — and created a whole 
new industry in which thousands of 
firms are now engaged. 

Information Theory 

By the late 1940's, the Bell System had 
spent several hundred man-centuries 
on research and billions of dollars on 
equipment to handle information ex- 
peditiously. But since there existed no 
means for measuring information or 
the capacity of communications chan- 
nels, it could not calculate the effi- 
ciency of its handling methods. 

The solution came in 1948, when 
Bell mathematician Claude E. Shannon 
published a paper called "A Mathe- 
matical Theory of Communication." 
Shannon had conceived a simple 
formula for calculating the informa- 
tion "bits" in any message. The for- 
mula also told how to compute the 
capacity of any information channel 
in terms of bits per second. 

As further elaborated. Shannon's 
ideas were to have a profound impact 
in the fields of signal transmission. 



message coding and switching. In 
transmission, for example, information 
theory (along with the transistor) con- 
tributed to the widespread, practical 
application of Pulse Code Modulation 
— a technique that is more effective 
in overcoming noise than either AM, 
the ordinary radio signal, or FM. The 
first successful commercial system to 
employ the technique {T-1 Carrier) 
was introduced by Bell in 1962. 

Microwave Transmission 

Research that would lead to the devel- 
opment of microwave systems began 
in the 1920's when Western Electric 
and Bell Laboratories undertook fun- 
damental studies into the use of 
higher radio frequencies. By 1940, the 
System had spent some $46 million on 
these and related studies, and it was 
clear that microwave offered exciting 
potentials. The work of Bell Labora- 
tories' George C. Southworth (in the 
development of the waveguide, the 
interior "plumbing" of microwave sys- 
tems) greatly advanced the practical 
applications of microwave transmis- 
sion. 

Plans were established in 1940 for 
the construction of nationwide facil- 
ities for the transmission of both tele- 
phone calls and commercial television 
broadcasting, which was felt to be im- 
minent. Before interrupted by the mil- 
itary needs of World War II, AT&T put 
into operation the first system which 
enabled many messages to travel the 
same radio channel, and executed pre- 
liminary plans for a single link micro- 
wave system. 

Anticipation of postwar television 
demands led, in 1944, to the an- 
nouncement of plans for an experi- 
mental microwave system between 
New York and Boston. When it went 
into service in November 1947, it was 
the first system capable of handling 



20 



both voice signals and video. Today, 
microwave radio relay systems carry 
about two-thirds of the nation's long 
distance telephone traffic and nearly 
all television network programming. 

Communications Satellites 

In 1955, Dr. John R. Pierce of Bell 
Telephone Laboratories made the first 
engineering study of what would have 
to be done to build a working satellite 
communications system — assuming 
it would one day become possible to 
put satellites into orbit. In a technical 
paper delivered at Princeton Univer- 
sity, Dr. Pierce envisioned two meth- 
ods for communicating via satellites: 
by reflecting microwave radio signals 
off mirror-like "passive" satellites; or 
by transmitting to "active" satellites — 
performing microwave relay towers in 
the sky — which would catch and am- 
plify the signals before returning them 
to earth. 

In 1959, the feasibility of space com- 
munications was demonstrated when 
live voice transmission was accom- 
plished from Bell Telephone Labora- 
tories in Holmdel, New Jersey, to the 
Jet Propulsion Laboratories in Gold- 
stone, California, using the moon as 
a reflector. The following year. Echo I, 
a 10-story high reflecting balloon sat- 
ellite, was launched into orbit by the 
National Aeronautics and Space Ad- 
ministration (NASA) and the practical- 
ity of a man-made communications 
satellite was established. Voice and 
still photographs were "bounced" off 
the satellite in tests participated in by 
the Bell Labs' Holmdel station and the 
Jet Propulsion Laboratories on the 
West Coast. 

Encouraged by the success of Echo I, 
scientists at Bell Laboratories moved 
ahead on the development of an 
active communications satellite. Less 
than two years later, the Bell System's 



Telstar* satellite was launched, with 
immediate and dramatic results. The 
world's first active communications 
satellite (and the first satellite built 
and paid for by private industry), Tel- 
star made communications history on 
luly 10, 1962, when Bell Laboratories 
engineers used it to relay voice com- 
munications and live television across 
the Atlantic within hours after it was 
put into orbit. In the weeks following 
the launch, over 300 technical tests 
and measurements of every phase of 
transmission were conducted with the 
satellite. More than 400 demonstra- 
tions, including multichannel tele- 
phone, telegraph, data, telephoto, 
television and facsimile transmissions 
also were made. 

A second Telstar satellite was or- 
bited on May 7, 1963. Telstar ll's larger 
orbit permitted the first live television 
from Japan. During the next two years, 
Telstar II was used for various com- 
munications experiments plus the 
transmission of special television pro- 
grams such as the funerals of President 
Kennedy and Sir Winston Churchill. 

Satellite communications in all 
probability would not be a reality 
today if it were not for a number of 
key inventions and developments of 
Bell Laboratories. These include: the 
negative feedback amplifier (1927); 
the FM feedback receiver (1933); the 
horn reflector antenna (1939); the 
traveling wave tube (1945); the tran- 
sistor (1948); the solar battery (1954) 
and the solid-state maser (1957). 

Data Communication 

Although the Bell System is not in the 
business of providing data processing 
services, its researchers have played a 
key role in the development of this 
expanding industry. The common con- 
trol switching systems introduced in 
big cities some 40 years ago were the 



first exemplars of real-time data proc- 
essing, and the very first electrically 
operated digital computers were built 
30 years ago at Bell Laboratories. All 
modern computers are born of the 
solid-state technology developed at 
the Labs in the late 1940's, and the 
whole concept of computers and other 
machines in data network has been 
conceived, designed and promoted 
primarily through Bell System initia- 
tives. Today, the nationwide Bell Tele- 
phone network is providing data com- 
munications services in ever-increasing 
variety. (See Nov/Dec 1970 Bell Tele- 
phone Magazine). 

Laser Technology 

Hundreds of scientists are exploring 
the awesome potentialities of the in- 
tense, pure light beams of the laser. 
The laser provides an entirely new 
form of energy, and many of its ulti- 
mate applications can only be guessed 
at today. 

Scientists are certain, however, that 
continuing research into laser appli- 
cations will uncover myriad uses. Al- 
ready, several types of lasers are being 
utilized in such areas as scientific re- 
search, medicine, space exploration 
and the manufacture of communica- 
tions products. 

Experiments with the microwave 
portion of the electromagnetic spec- 
trum led to the discovery in 1951 that 
microwaves could be amplified in a 
coherent, or "in phase," wave process. 
The inventor, Charles H. Townes, a 
professor at Columbia University and 
consultant to Bell Laboratories, called 
his discovery a maser (for microwave 
amplification by stimulated emission 
of radiation). 

Shortly after, the Laboratories' inter- 
est in the maser's communications 
potential led to development of the 
first of the devices to use solid-state 



21 



amplifying material. These were the 
masers later employed to amplify sig- 
nals from the Echo and Teistar satel- 
lites, and for study of astronomy. 

The first paper on the amplification 
of coherent light waves (laser) was 
published in 1958 by Townes and Bell 
scientist, Arthur Shawlow. Two years 
later, scientists at Bell Laboratories in- 
vented the first continuous-wave laser 
and were able to transmit a telephone 
call over its pure and steady beam. 

Extensive efforts are continuing at 
Bell Laboratories to find practical 
communications applications for the 
laser beam. Ultimately, the laser may 
be employed to transmit telephone 
calls, data messages and television. 
While a number of technical and 
economic problems remain to be 
solved, the potential is there to pro- 
vide a variety of new services and to 
open a new band of frequencies. 

Integrated Circuitry 

Radar, radio, television, computers, 
switching and transmission systems, 
and scores of other products today 
employ tiny devices known as inte- 
grated circuits. Packing 10 to 20 tran- 
sistors and 40 to 60 resistors into the 
space of a tenth of an inch square, 
they provide cost, size and weight ad- 
vantages that were once unattainable. 

The new technologies developed 
largely out of Bell System studies in 
the field of microelectronics; and their 
widespread applications have been 
greatly accelerated by Western Elec- 
tric/Bell Laboratories achievements In 
the use of "thin film" processes. 

Several years ago, experiments con- 
ducted at Bell Labs suggested that in- 
tegrated circuits could be produced 
economically and in large quantities. 
It was clear, however, that extensive 
development work would be neces- 
sary to make this practical and eco- 



nomical, and that altogether new 
manufacturing techniques would have 
to be devised by Western Electric. 

Risking substantial amounts of capi- 
tal, the Labs and Western Electric 
launched an investigatory program 
aimed at determining whether the 
problems could be overcome. 

As a result of this collaborative ef- 
fort. Bell Labs was able to demonstrate 
the great potentialities of silicon and 
thin film circuitries, and Western Elec- 
tric's Engineering Research Center de- 
veloped the necessary manufacturing 
processes. 

Produced by the millions each year, 
integrated circuits are today playing 
an increasingly important role in com- 
munications progress. 

Electronic Switching 

Bell System advances in solid-state 
physics, information theory, computer 
programming and a number of other 
fields led to the rapid development of 
electronic switching systems (ESS), 
which are being introduced at an ac- 
celerating pace. 

Simply stated, ESS is a system that 
enables telephone central offices to 
switch calls electronically instead of 
electromechanically, using a concept 
called stored program control. This is 
the ability to contain in magnetic 
memory the millions of bits of infor- 
mation that are needed to provide 
services, process calls and help main- 
tain the equipment automatically. Its 
development grew out of the Bell Sys- 
tem's recognition that the country's 
need for faster, more abundant com- 
munications — in words, in data, in 
pictures, in symbols — would require 
a more efficient, more versatile switch- 
ing system than electromechanical de- 
vices would permit. 

ESS offers many advantages, includ- 
ing exceptional reliability and reduced 



maintenance costs. Also, its electronic 
"memory" features offer further op- 
portunities to provide individualized 
customer services. 

The first successful trial of electronic 
switching took place in Morris, Illinois, 
between 1960 and 1962. Three years 
later, the first commercial electronic 
central office opened in Succasunna, 
New Jersey. 

The success of the Succasunna ex- 
perience encouraged the Bell System 
to embark upon the largest, most 
complex project ever undertaken by 
a private industry — that of completely 
updating the nationwide electro- 
mechanical switching network with 
newer electronic systems. This is being 
accomplished at an ever faster pace. 

Last year, for example, 58 electronic 
offices were added to the nationwide 
network, bringing the total number in 
service at the end of 1970 to 128. 
Another 108 electronic offices will be 
introduced this year, bringing the total 
to 236 by the end of 1971. The pace 
will mount even more rapidly in the 
next few years. 

Magnetic Bubbles 

Locally magnetized areas that can 
move about in thin plates of magnetic 
material, magnetic bubbles are the 
basis of an exciting new technology 
announced within the last two years 
and presently under intense explora- 
tion at Bell Labs. Scientists there have 
long sought new technology to make 
possible low cost, low power, all- 
digital data processing and switching. 
In present computer and communica- 
tion technology, connections between 
electronic components are a major 
factor in costs. In the new technology, 
bubbles can be created, erased, and 
moved anywhere in thin sheets of 
magnetic material without intercon- 
nection. They may interact with one 



22 



another in a controlled fashion, and 
their presence or absence can be de- 
tected. Therefore, devices employing 
the new technology may be made to 
perform a variety of functions — logic, 
memory, switching, counting — all 
within one solid magnetic material. 
The minute magnetic bubbles promise 
to provide compact and inexpensive 
data storage and processing for to- 
morrow's computers and telephone 
switching systems. 

Service for the Future was 
Focus of Bell Labs in 1970 

Major developments aimed at expand- 
ing tomorrow's communications ser- 
vices highlighted the activities of Bell 
Laboratories in 1970. The new tech- 
nology will help provide for growth 
in telephone, data, television and 
Picturephone service in the future. 

Among 1970 developments was the 
announcement of a transmission sys- 
tem that will use a buried pipe to carry 
a quarter of a million simultaneous 
telephone conversations or more than 
2,400 Picturephone signals. The signals 
will be carried through the hollow 
pipe, known as a waveguide, by short 
millimeter radio waves. Scheduled for 
a 1974 field trial in New Jersey, the 
system will probably go into commer- 
cial service in the late 1970's. 

The first of a new type of electronic 
switching system, known as No. 2 ESS, 
was introduced in Illinois in 1970. De- 
signed for use in rural and suburban 
areas, the system will provide versatile 
telephone service to many Bell System 
subscribers. No. 2 ESS makes new ser- 
vices available to medium size central 
offices handling 1,000 to 10,000 lines. 

During the summer. Bell Labs sci- 
entists announced a major advance in 
laser technology— a new laser, smaller 
than a grain of sand, that can be pow- 
ered by ordinary dry cell batteries. 



The tiny laser is a rugged, reliable and 
low cost semiconductor device that 
operates continuously at normal room 
temperature — the temperature at 
which typical communications systems 
function today. 

A communications system using 
laser light offers the prospect of carry- 
ing telephone calls, data messages, 
television and Picturephone signals 
simultaneously in bundles perhaps 
10,000 times larger than now possible 
with microwaves. 

Another advance in long distance 
transmission is a new coaxial cable 
system which eventually can carry 
90,000 phone calls simultaneously. It 
is being tested by Bell Laboratories 
and the Long Lines department of 
AT&T in a field trial which began dur- 
ing the summer of 1970. The new sys- 
tem, called L5, will be able to carry 
two and one-half times as many long 
distance phone calls as the largest 
present coaxial system. The L5 system 
was developed by engineers at the 
Merrimack Valley Laboratory of Bell 
Labs in North Andover, Mass., and is 
scheduled to go into commercial ser- 
vice in late 1973. Operating at full 
capacity, the system will cost about 
$1.45 per circuit mile, compared to 
$3.15 for the present system. 

Helping the Operator 

An electronic switching system de- 
veloped by Bell Labs to help long dis- 
tance operators provide faster and 
more personal service to telephone 
subscribers was placed in operation at 
13 locations across the country during 
1970. The system, called Traffic Ser- 
vice Position System (TSPS), handles 
various routine details, freeing opera- 
tors to devote most of their time to 
customers. It was cut into service at 
Cincinnati, Ohio; New Orleans, La.; 
Philadelphia, Pa.; Bloomington, Ind.; 



Memphis, Tenn.; Framingham, Mass.; 
Washington, D.C.; Rochelle Park and 
Morristown, N.J.; Dallas and Houston, 
Texas and Jacksonville and Miami, Fla. 

Looking to the future. Bell Labs is 
working on a simple new semicon- 
ductor memory cell that may someday 
process information for telephone 
calls up to 20 times faster than existing 
equipment. The tiny electronic mem- 
ory cell could help telephone com- 
panies to handle many more calls per 
hour than is now possible. 

Lamps that can emit light continu- 
ously for about 10 years are being de- 
veloped at Bell Labs. They will be used 
as indicator lights in future telephones 
and switchboards. Made of synthet- 
ically grown gallium phosphide crystal, 
the lamps are expected to be more 
reliable, efficient and economical than 
incandescent lamps now in use. 

Anticipate the Public's Needs 

There are hundreds of other facets of 
Bell System innovation — in operating 
methods, in personnel development 
and motivation, in the pricing and 
marketing of new products and ser- 
vices, in quality control techniques, in 
new programs to help meet today's 
urban problems. The System works 
to stay alert to the forces of change. 
It is essential that industry sense 
changing public needs and wants, and 
introduce new products and services 
to meet them. Bell Laboratories' drive 
to excel in the applications of science 
and technology derives from an early 
recognition that the ability to serve 
the public well depends upon the 
constant pursuit of invention and in- 
novation on a broad scale. And strong, 
sound, continuous technical progress 
depends on the overall life-style of 
the organization and the mutuality of 
understanding among people working 
toward common goals. D 



23 



The Third 
Revolution in Work 

by Robert N. Ford 



The "father" of the Work Itself effort 
in the Bell System comments on the 
lead story in the last issue of Bell 
Telephone Magazine and offers some 
personal thoughts about the promise 
of his Big Idea. 



Our first serious study of Work Itself in the micl-60's 
started as a result of good-natured bantering. A good 
friend of mine, who was also a boss, repeatedly 
charged us in College Employment with hiring the 
wrong kind of graduate, the kind who quits in six 
months. To get him off my back, I countered: "You 
don't deserve the people you get. They're too good 
for that job." When he picked himself up off the 
floor, we started plotting a way to improve the job 
in question rather than elect the alternative— to hire 
poorer graduates. 

After six months of hard work and a lot of help 
from some bright supervisors, we found that turnover 
could be remarkably reduced. Then productivity got 
better, customers started saying nice things about the 



Dr. Ford is personnel director lor manpower utilization at AT&T. 
He received his Ph.D. Irom the University of Pittsburgh and taught 
sociology at Vanderbilt. Alter working on various personnel re- 
search projects lor the lederal government and private industry, 
he joined the Bell System in 1947. He resides in Chatham, N.j. 



operation. We felt we had isolated the catalyst: The 
important factor in work motivation was the work, 
itself! Enrich the job. Don't hope to offset a poor job 
solely through such maintenance factors as benefits, 
friendly relations and comfortable surroundings. The 
core item is the job. 

In job enrichment, we get the family of supervisors 
to figure out what specific steps they could safely 
take toward turning a job over to a competent em- 
ployee, even if it's risky. One person at a time. That's 
not too dangerous. Job enrichment focuses on privi- 
leges and responsibilities in doing a piece of work. 

The Work Itself tent is getting crowded with well- 
meaning people who claim they have followed this 
theory of work motivation all along. But when you 
pursue them as to the job freedoms they give, you'll 
find many cannot distinguish consistently between 
the maintenance factors surrounding a job and the 
work, itself. Some parts of the concept, of course, 
are not easy to administer. For example, a major mag- 
azine recently captioned a picture of 20 operators 
at one of our switchboards thusly: "Some white collar 
work is as restrictive as an assembly line. Pacific 
Telephone's answer is rapid promotion up from oper- 
ator." This Work Itself effort is, indeed, successful, 
and as a final step the management team does funnel 
its best operators into the service representative's job. 
But if the objective is to enrich a given job, then I'm 
afraid we concede defeat on that job if we recom- 
mend transferring people out of it rapidly. 

Let me show, through illustrations from the article 
in the last issue of this magazine, a few other poten- 
tial pitfalls. Many of those interviewed stressed that 
trust is the heart of this Work Itself effort. That's not 
quite right. The trust, the mutual confidence that 
arises in the work groups, is a result of enriching the 
jobs that employees have. Trust is not the cause of im- 
proved jobs. In my Bell System experience, the search 
for mutual trust as a precondition for improving rank- 
and-file performance has not paid off. The reverse 
approach has: Improve jobs so that performance im- 
proves, and you'll get employee trust and confidence. 



24 



If one permits some hundred-year comparisons, 
here's a view worth considering: 

1770— 7/ie Industrial Revolution—Work leaves the 
cottager's home, to be performed in factories by the 
uprooted cottagers, tending power tools. Towns and 
cities grow. 

1870— T/ie Scientific Managment Revolution— Many 
engineers, notably Frederick W. Taylor and his fol- 
lowers, lay out work after making detailed time and 
motion studies. Task fragmentation and production 
lines lead to great productivity. By 1950, economists 
are attributing virtually all current growth in produc- 
tivity to inventions and automation: None to the im- 
proved utilization of humans. 

1970— Manpower Utilization Revo/u(/on— Princi- 
pally through job enrichment, the releasing of em- 
ployees to perform meaningful modules of work, 
significant contributions in productivity from the per- 
sonnel component start to reappear. Job enlarge- 
ment, a slightly earlier idea, contributes insofar as it 
makes possible the combining of tasks into a mean- 
ingful whole, not because of variety. The enlargers 
were banking on variety. And a third approach, job 
rotation, is now known to add virtually nothing to 
increases in human productivity. 

There is no doubt the Bell System is the leader in 
this new revolution. This Third Revolution is ground- 
ed in the behavioral sciences, and my impression 
over 23 years is that this business in particular is 
beginning to tolerate human scientists. They are not 
yet admired, as are Bell Labs scientists, but that will 
come. The problem of scientifically understanding 
human work motivation is not a whit less complex 
than landing a man on the moon. 

Some of us believe right now that we can predict 
certain work flows and job modules that will cause 
employees to stay with us and other variations that 
will drive them out the door. A trial of the idea in one 
department is under consideration and is encounter- 
ing emotional opposition. The introduction of a radi- 
cally new neoprene drop wire must surely be easier— 
a wire, say, with the insulation on the inside and the 



conductor on the outside. I'll bet Bell System man- 
agers would easily try such an innovation if the Labs 
said so. But Work Itself? 

The need to know that human performance can be 
vastly improved is urgent. The need is urgent because 
many managers do not realize the turnover situation 
continues to deteriorate. Even the current economic 
recession has not stopped it. 

We should determine to use as much of the new 
employee's ability as we can, not merely a fragment. 
Continued growth in sophistication here will keep us 
leaders in the manpower utilization revolution, just 
as Bell Laboratories has kept us well ahead on the 
hard science side. 

We are learning three things: The best entry point 
for enriching jobs may be the first-line supervisor's 
job, thence to the craft-level job. A job enrichment 
effort is much stronger if district and division level 
supervisors act as their own key men, if they are re- 
sponsible for their own followup work. Finally, we 
know that Work Itself is a waste of time if it is viewed 
as just a management training program. 

Many managers in the movement say, as reported 
in the last Bell Telephone Magazine: "If we went back 
to the old way of managing, I'd probably have to ask 
for a transfer. I couldn't take that turmoil and the 
force losses, which I know would return. . . ." This 
kind of reaction occurs repeatedly. 

Do we mean to imply that the Work Itself approach 
got all that gain? Much as I'd like to say yes, I'll say no. 
The truth is that Work Itself set the stage for cleaning 
up problems other than the work, itself. The concept 
deliberately capitalizes on the best we know in man- 
aging people, not only in the laying out of work. 

The Work Itself approach is a reasonably successful 
way to start some needed change in managerial prac- 
tice, to bring into being a way of life-at-work that 
appeals to modern, intelligent young people. Para- 
phrasing John Gardner, I'd say: Accomplishing this 
change is work for the tough-minded and the com- 
petent. Each of us has a share. Responsibility begins 
with us in management. It mustn't end with us. D 



25 








\ 







V^ 



{ 



Back when men were starting to send words through 
spans of wire, Henry David Thoreau as usual looked 
closely and foresaw clearly. This gadget called the 
telegraph might be all right, he conceded in 1854, 
and perhaps even the giddy plans to web the United 
States with telegraph lines from Maine to Texas were 
acceptable. But he asked: "What is it, after all, that 
Maine and Texas wish to say to each other?" 

Thoreau's point is as vital for households replete 
with telephone, television, intercom and radio as it 
was for the solitary thinker who shared the stillness 
of Walden Pond with hawks and shy deer. Our ap- 
paratus of communications is incredibly deft. But 
what do we communicate? Is youth's upstairs bed- 
room really in touch with the parental living room? 
The ominous cracklings between the urban ghetto 
and the sleek suburb — who, in either neighborhood, 
listens hard enough? And do the millions of us who 
are well-off hear the millions of us who despair? 

In scores of communities across the United States, 
hopeful answers are waiting to be dialed. Groups of 
concerned citizens are manning the telephone to 
help anyone who is suicidal, haunted by drugs, fear- 
ful, miserable, confused or even just plain dark-gray 
lonely. Something else Thoreau said flashes to mind: 
"The mass of men lead lives of quiet desperation." 
Now many somebodies all across the country can be 
heard talking by telephone into that dark quiet. 

In Buffalo, N.Y., for instance, the phone rings at 
the Rumor Control Center many times during the 
day. This time, a caller has heard there are gangs of 
boys roving near two local high schools. "Will you 
kindly check on this? We fear for our children." 

Besides a small paid staff, the Buffalo Rumor Con- 
trol Center has more than 100 volunteer workers. 
One is on duty now, cradling the receiver between 
ear and shoulder as she jots down the caller's ques- 

Ivan Doig is a freelance writer vv/io lives in Seattle. He has written 
for numerous national magazines, including recent assignments 
for Parents' and McCall's. He is former assistant editor of The 
Rotarian, and fias a Ph.D. in American History. 



HOT LINES 

TO 
HELP 



by Ivan Doig 



27 



tion. Quickly she checks with school authorities and 
the police. Within a few minutes, she calls the ner- 
vous parent: Nothing to the report; simply another 
troublesome rumor. 

In Corpus Christi, Tex., the fretfulness at the other 
end of the line is more dire. Suicide Prevention, Inc., 
this around-the-clock answering service is called, and 
it is harrowing work for the volunteers who take four- 
hour shifts at the telephone. Dr. George H. Kramer 
Jr., a clinical psychologist, teaches them what to ex- 
pect, all right. "But," Dr. Kramer adds, "no matter 
how much knowledge about human behavior our 
volunteers have soaked up through our lectures, it 
almost always is an eye-opening experience when 
they take that first call." 

Lonely? Call DIal-a-Listener 

Loneliness this side of desperation? Davenport, 
Iowa, fights it with Dial-a-Listener, friendly volunteers 
whom anyone can telephone and chat with. 

In thousands of towns, the voice on the line is try- 
ing to escape from alcohol. Since its founding by the 
late William Griffith Wilson and Dr. Robert H. Smith 
in December 1935, Alcoholics Anonymous has been 
a national pioneer in using the telephone to link the 
desperate with someone who can help. 

Telecare is a project of the Rotary Club of Hanford, 
Calif. Elderly citizens there phone a central number 
every morning. If anyone on the Telecare list hasn't 
called in by noon, a neighbor is promptly alerted to 
check on the person. 

In Seattle, Wash., Crisis Clinic is a project of Uni- 
versity of Washington students. Drugs, pregnancy, 
scholastic troubles, emotional tailspins — the cam- 
pus number is open to all student problems. 

Help Line they call it in Little Rock, Ark., and Chat- 
tanooga, Tenn.; Hot Line in Los Angeles; Crisis Cen- 
ter in Great Falls, Mont.; Crisis Line in Fairbanks, 
Alaska. Whatever the name and the needs that called 
forth new social efforts, these hot lines to help are 



becoming standard equipment in American commu- 
nities. It is no tiny social indicator, for instance, to 
find Rotarians and college students working on simi- 
lar projects. No less meaningful is the support that 
businessmen throughout the country are giving. 

22,000 suicides a year 

Lawrence W. Palo, vice president of the First Na- 
tional Bank of Oregon, is treasurer of Portland's Sui- 
cide and Personal Crisis Service. A volunteer in public 
health work for more than a decade and a key figure 
in establishing this crisis intervention office in 1965, 
Palo shrugs and explains: "It's one of those things. 
You take a part in the community's needs. This was 
a problem far more prevalent than people realize." 

Prevalent, indeed. Each year about 120 suicides 
occur in the Portland metropolitan area. 

Nationally, some 22,000 of us commit suicide each 
year. Untold others are saved, some by services such 
as those in Portland and Corpus Christi. Dr. Ernest 
Shneidman, who helped establish the pioneering Los 
Angeles Suicide Prevention Center in 1958, has put 
it bluntly: "The first telephone interview often spells 
the difference between life and death." Realizing the 
telephone line can become a lifeline, volunteer 
staffers are manning at least 200 suicide prevention 
centers in this country according to the federal Cen- 
ter for the Studies of Suicide Prevention. 

Rumor control centers 

If suicide is a random fever among us, rumor and 
drug abuse are national epidemics. At least 19 cities 
now have rumor control centers, an innovation cited 
with approval of the National Advisory Commission 
on Civil Disorders. Raymond E. Jackson, as coordi- 
nator of Buffalo's Rumor Control Center, has heard 
fears born of street disorders and campus distur- 
bances jangleintohisoffice. Hedeclares flatly: "Rumor 
centers, we are convinced, are important to the well- 



28 



being of the populace of any city in tlie country." 
Somewhere in the earliest discussions about setting 
up a rumor control center will be Edmund B. Raftis. 
An attorney with Pacific Northwest Bell, Raftis was 
chairman of the local municipal league's committee 
on police-community relations when planning for 
the Seattle Rumor Center began early in 1968. The 
city had tasted racial disorders the previous summer, 
and the coming months promised worse. As many 
civic elements pulled together to get the Rumor Cen- 
ter into operation, Raftis was on hand to explain the 
steps for incorporation. He still serves on the center's 
board of trustees. 

PANIC hot line 

The drug situation in this country perhaps is 
summed up in the acronym of a group that has set up 
a telephone hot line in Newburyport, Mass. — PANIC 
(Parents Alarmed about Narcotics In our Community). 

Drug abuse among teen-agers is searing commu- 
nities where the phenomenon is nearly as startling 
as a virus from a far galaxy. In Great Falls, Mont., a 
telephone Crisis Center was opened in December 
1970 to take problem calls of all sorts. Many, it turns 
out, are about drugs. "We don't have the sophistica- 
tion to handle the teen-age drug problems," execu- 
tive board member Orvis Stenson admits. "Sometimes 
we don't even know the lingo involved in these prob- 
lems. Now we're trying to utilize teen-agers, perhaps 
by having one on duty with each regular volunteer 
to help with calls of this sort." 

What is there about hot lines that offers help both 
to the teen-ager strung out on drugs in Portsmouth, 
N.H., and to a housewife tense with "cabin fever" 
in the caging winter of Fairbanks, Alaska? 

Dr. Benjamin M. Taylor, director of the psychiatric 
clinic for students at the University of Washington, 
has observed the Crisis Clinic on his campus since it 
was set up as a pilot project for the 1970-71 school 
year. The first value he sees in telephone services of 



this sort is that they offer troubled persons some hu- 
man contact, even if it is a disembodied voice. "There 
are many persons who, because of various feelings, 
could not mount an effort to contact someone face- 
to-face. But they will talk to someone on the phone." 

Handle on the future 

Second, Dr. Taylor points out, the telephone con- 
tact can provide the caller something to grasp, some 
handle on the future. "It isn't just saying, 'Well, this 
isn't my department, and I'll pass you on.' The worker 
on this service can say to them, 'Well, you can go into 
this clinic in the morning.' It's one thing to know 
there's somebody in the Great Out There who's going 
to help you, but good luck in finding him. It's another 
thing to people in a difficult situation to know they 
have a specific place to go at a specific time. That 
tides a lot of people over a tough period." 

In a sense, the voice of American conscience is 
talking on the telephone these days. By now, our 
communities have so many people, and our lives so 
automatically click along narrow patterns within these 
communities, that we seldom cross in person into 
each other's concern. 

". . . The automobile and the airplane are new 
wombs for personal withdrawal," Ben Bagdikian 
wrote in his book In the Midst of Plenty. "Private cap- 
sules that impel their passengers along predeter- 
mined paths of affluence." So are the suburban split- 
level and the apartment that is a replica of every other 
apartment in the building. So are the commuter train 
and the downtown bus. 

Nobody rides down the road any more to ask how 
the missus is feeling and whether he can help with 
the chores. Capsuled, we go our own ways. 

Help-by-telephone, however, is one way we pierce 
through to each other. The Lawrence Palos, the Ed- 
mund Raftises among us know this, and their heft 
behind these hopeful community projects is paying 
off — for all of us. D 



29 



*v. 




Backing up 
A Commitment 



Western Electric, manufacturing arnn of the Bell Sys- 
tem, was actively concerned with the quality of the 
environment long before "ecology" and "pollution" 
became shibboleths on every tongue. While already 
working to control pollution from individual manu- 
facturing processes. Western reviewed all its plants 
about five years ago to determine future needs. From 
this review grew a set of priorities and a schedule: 
modern waste treatment facilities are designed into 
all of Western's newer plants, and each of the older 
locations has completed or is undergoing similar 
modernizing. 

Harvey G. Mehlhouse, WE president, declared re- 
cently, "We, as a company, are wholly committed to 
pure air and water. We have backed up this commit- 
ment with expenditures totaling many millions of 
dollars in the past few years and we will spend mil- 
lions more in this decade." 

Cleaning up the American environment clearly will 
be a long-term project. Western Electric plans to 
shoulder its share of the job. 




Above: Sampling exhaust from stacks on Western Electric' s Phoenix, A 
plant determines proper functioning of air pollution control devices, also 
tifies contaminants in atmosphere itself. Below: Western's Merrimack I 
Works has been cited by State of Massachusetts for maintaining the most i 
gent standards of pure water output from its manufacturing processes. 



30 





■J 




i'.-ji/s.:^'.:.';ri#»'i'- 



31 




At Western Electric's Shreveport, Louisiana 
Worl<s, sophisticated chemical techniques — 
microscopic analysis in the laboratory and 
most modern waste treatment facilities — in- 
sure removal of toxic contaminants and pro- 
duce water clean enough to drink. 




32 



A Different 
Window 



This magazine moved its offices at 195 
Broadway last month, and in the mov- 
ing it lost its view. The feeling is that 
the move was worth it, for in losing its 
view, the magazine gained a point of 
view. It's not so much a matter of se- 
mantics as it is of windows. 

From eight stories up on the north 
side of the AT&T building, BTM 
staffers looked out over St. Paul's 
Chapel and churchyard, where Wash- 
ington and Hamilton worshiped 200 
years ago. Past St. Paul's was City Hall 
Park, where construction workers 
began their thunderous tread down 
Broadway less than one year ago. 
From these windows the staff watched 
the World baseball champion Mets 
and the first Moon men take all the 
ticker tape New Yorkers could unload. 
On such proud occasions, the editors 
were not above ripping a copy or two 
of their product into small pieces and 
adding them to the festive flutter. 

From their corner, BTM people were 
among the first to feel the thud and 
spot the flames when a gas pipe burst 
on Park Row a few months ago, kill- 
ing a dozen people, including a West- 
ern Electric man from Newark who 
was getting a haircut. The Woolworth 
Building, Women's Lib, striking 
teachers, truckers and taxi drivers — 
the moods and movements of New 
York and the nation— were there for us 
to hear and see, outside the windows. 

And to write about. What impact 
the proximity of such contemporary 
events had on the tone and contents 
of this journal is hard to say. It would 
be naive, though, to suggest that ideas 
generated by happenings outside did 
not filter in through the windows and 
appear in this publication. 

The new windows, however, are 
several floors lower and on the other 
side of the building, and offer no such 
tumultuous social landscape. The most 
eye-catching scenes outside the new 



windows are of large signs advertising 
small loans and a bar. Journalists, of 
course, have traditionally received 
sustenance and inspiration from both 
loans and bars, but this new nonview 
has its own significant sign of the times 
for those involved in the move. 

The message is that there is much 
happening here, within the corporate 
walls, that is exciting, explosive, pro- 
found, even revolutionary, and it 
needs to be recorded. The message 
admits that headlines are still being 
made outside the other windows. But 
it reminds us that the changes, pres- 
sures, involvements and achievements 
of business, and especially of this busi- 
ness, constitute life's true combat 
zone today. Here, inside these win- 
dows, is where the demands and the 
dreams lie. Here, inside these win- 
dows, is where it's happening, and 
here is where this chronicler is re- 
quired. 

From the other windows you might 
watch yellow cabs, lights ablaze, mass- 
ing around City Hall to protest social 
and work conditions in which a driver 
had just been murdered while on duty. 
From these new windows, however, 
looking as they do into the backside 
of a building, one turns inward for 
inspiration. And you know what? In- 
spiration is there, and in spades. 

One begins to think and report on 



the financial management of this, the 
world's biggest business, and on the 
record $7 billion construction budget. 
One broaches such sensitive subjects 
as competition, data communications 
and rate increases. One addresses him- 
self to the stunning accumulation of 
technological achievements of Bell 
Labs, innovations that have given root 
and direction to the whole sweep of 
engineering and scientific progress in 
this nation in this century. 

One realizes our corporate com- 
munity now numbers more than one 
million people with attendant diffi- 
culties in communicating among our- 
selves. One ponders problems in the 
sheer physical size of our enterprise, 
of serving our customers, of meeting 
our commitments and demands on our 
abilities. And one recognizes that all 
these things — this specialized organi- 
zation, this complicated machine, 
these innovations, these million peo- 
ple — are all dedicated to one end: 
service. 

So the view is gone. But the point 
of view is back. And that's a satisfying 
idea, for there are no more absorbing 
subjects anywhere than the service 
mission of this enterprise and the mil- 
lion men and women who make it 
work. Introspection is in order. It is a 
new day. Such a day demands a dif- 
ferent window, and we have one. D 



BELL 

telephone magazine 



VOLUME 50 NUMBER 2 



MARCH/APRIL 1971 



H. I. Romnes, Chairman of the Board and President 
John D. deButts, Vice Chairman 
Robert W. Ehrlich, Secretary 
John J. Scanlon, Treasurer 



Tim Henney, Editor 

Al Catalano, Art Director 

Donald R. Woodford, Managing Editor 

Robert A. Feinstein, Associate Editor 

Marco Gilliam, Associate Editor 



® 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212 393-8255 




©AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

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Permit No. 22 



Moving? Changes of address for persons on 
the Bell Telephone Magazine complimentary 
list should be brought to the attention of the 
Circulation Manager, Bell Telephone Magazine, 
Room 417, American Telephone & Telegraph 
Company, 195 Broadway, New York, N.Y. 10007. 
Please Include the mailing label from this issue. 



001600605681 9W^lk^2^^^ ° 

LIBRARIAN PERIDOICAL DEPT 
KANSAS CITY PUB LIBRARY 



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Printed in U.S.A. 



'-^ij-' 



Arthur Page, page 1 
Citizens or Inhabitants, page 8 
Growing Their Own, page 14 
Serving the Press, page 20 
Psychologists and 
Technologists, page 29 



May/June 1971 




The Nonyouth Bag 



"Has any man ever attained to inner 
harmony by pondering the experience 
of others? Not since the world began! 
He must pass through the fire." 

— Norman Douglas, English writer 



A journalistic axiom holds that when 
a dog bites a man it isn't news, but 
when a man bites a dog it is. Similarly, 
when someone over 40 does some- 
thing significant, the significance lies 
more in the achievement than in the 
achiever; but when someone under 40 
or, better yet, under 30, pulls off the 
same feat, the doer is often more bal- 
lyhooed than what gets done. It makes 
sense. Ours, after all, is a youth-cen- 
tered society. Some say it is a youth- 
obsessed society. The United States, 
still less than 200 years old, is a youth- 
ful nation among nations. And youths, 
as everyone knows, have made this 
country what it is. Haven't they? 

Nearly 30 years ago there was an 
Irving Berlin musical called. This Is 
The Army. After several songs lauding 
that grand institution, a bunch of sail- 
ors took over center stage and sang, 
". . . how about an orchid for Secretary 
Knox . . . how about a cheer for the 
Navy. . . ." Well, a mounting number 
of highly able and productive middle- 
aged people today are starting to feel 
a little like those sailors. How about 
a cheer for nonyouth? If youth, in its 
healthy zeal, is reassessing and re- 
vamping society, from big business 
and big government to monogamy and 
movies, it is the over-40 set that is 
keeping things perking and progress- 
ing until society gets sufficiently re- 
assessed and revamped. Someone 
must, for if civilization, with all its 
flaws, were allowed to simply fall in 



a crack while awaiting refurbishment, 
there would be nothing left for youth 
to improve. Someone must mind the 
store, produce the goods, stoke the 
furnace, pay the bills, cure the sick, 
feed and educate the people — includ- 
ing youths — until youth can regener- 
ate the system. 

A retired Bell System gentleman 
from New Jersey recently expressed his 
fears in a letter to AT&T Executive Vice 
President Robert Lilley, that older peo- 
ple in this business seem to be getting 
short shrift these days. He commended 
Mr. Lilley, who heads Human Affairs 
for the Bell System, for his feelings 
about young people as stated in the 
January issue of this magazine. But the 
gentleman cautioned that if ". . . the 
System does not recognize that atti- 
tudes of older employees are of 
greater importance, it will be making 
a grave mistake. . . ." 

Promotion from within 

In his reply, Mr. Lilley said, ". . . we 
are re-emphasizing our policy of pro- 
motion from within. More importantly, 
we are taking steps to make sure that 
this happens. I too feel that we must 
attend to the needs of our older em- 
ployees, the backbone of our organi- 
zation." 

Backbone, indeed. And brain and 
muscles, too. As one digs into the 
seemingly stolid subject of nonyouth, 
one is reminded that while youth may 
seem to merit more news, venerable 
nonyouth is also in there working, 
griping, growing, sweating, learning, 
leading, deciding, sacrificing, creating, 
helping, pushing and pulling, losing 
and winning, getting things done. And 
so it has always been. 

Consider the role of nonyouth in 
this business. When they announced 
the invention of the transistor in 1948, 
the Bell Laboratories' William Shock- 
ley, John Bardeen and Walter Brattain 



were 38, 40 and 46, respectively. Not 
exactly in their harvest years, but 
they'd long since lost their baby fat. 
Another in-house example: Among the 
most demanding jobs in the Bell Sys- 
tem, few would disagree, are those of 
AT&T's officers. The average age of the 
22 men who lead the world's largest 
business enterprise, at the time they 
reached their present levels, was 51. 
Their average age today is 56. 

Presidents and politics 

The record is similar in the "out- 
side" world. There have been seven 
men inaugurated as President of the 
United States while still in their forties. 
That's news. But the other 29 were in 
their fifties and sixties on inauguration 
day. The average age of the 36 men 
elected President, at time of inaugura- 
tion, is 54. 

Sticking with Presidents and politics 
for a moment, it is pointed out fre- 
quently that most of the 56 original 
signers of the Declaration of Inde- 
pendence in 1776 were young men. 
They were. But not by the standards 
of contemporary youth. To those who 
trust no one over 30, which is a sort of 
tribal battle cry among those who are 
presently and temporarily under 30, 
only three Declaration signers were 
young enough to have been consid- 
ered as possibly trustworthy. One of 
them was a 29-year-old establishment 
lawyer, who would have qualified by 
the skin of his teeth, at best. The aver- 
age age of those who signed was 44, 
and several were in their sixties and 
seventies. Ben Franklin, for instance, 
was 70. Eleven years later, a slightly 
younger assembly of 39 men signed 
the Constitution, but that august body, 
too, had an impressive percentage of 
men in their fifties and sixties. Frank- 
lin was there again, at 81. 

A cursory review of the names most 
identified (contiriued on inside backcover) 



One day in 1946 a vice president of AT&T 
walked into a meeting of middle-manage- 
ment people to give a little talk. He had 
left a battered hat in the coatroom; put his pipe, still 
warm, in his pocket; and now, after being introduced, 
pulled a manuscript from another pocket as he rose 
to speak. He made a joke about something or other 
- I forget just what - and then, in a rather dry con- 
versational tone, with no trace whatever of platform 
manner, proceeded to say what was on his mind. 

The substance of what he said was very simple and 
in line with the homely title he had scrawled in pen- 



The 
Art 

of 

Arthur 

Rage 



cil across the top of his manuscript. The title was 
"The Measure of the Kind of Folks We Are." For 
more than five years, he said, as everyone in the room 
well knew, public demand for communications ser- 
vice had been dammed up because of the war. Mate- 
rials and manpower to expand the communications 
system had simply not been available. War needs had 
had to come first. Now, however, the war was over 
and the heat was on the telephone companies to 
catch up with public needs just as fast as was humanly 
possible. 

People depended on us, people needed us, Arthur 



lIj^ 










by 

Prescott C. Mabon 




Page said. What were we going to do about it? Page 
in effect was making a plea. But — and here is why 
I am starting this note about him with this particular 
recollection — his essential approach to the managers 
and engineers he was talking to was not that the tele- 
phone company would get into trouble if we didn't 




do a supremely good job. It was not that we had a 
great business opportunity, although he certainly 
knew that too and did not underestimate it. No. The 
essential line of his comment and appeal was just 
what his homely penciled title suggested: What kind 
of people were we, anyway? What was our character'? 
This insistence on character, in my opinion, lay at 
the heart of Arthur Page's success. He had skills 
too, of course, and 1 shall come to those later. Yet 
this was the foundation. He was never pious or 
moralistic about it. There was nothing didactic or 
preachy in anything he said or wrote. But the plain 
thought that good public relations depends on per- 
formance, and that performance is an expression of 
character, was central in his mind and life. 

"Instant" vice president 

Page was vice president in charge of public rela- 
tions for American Telephone & Telegraph Company 
for 20 years, starting in 1927. He was in fact the first 
person to hold that title and responsibility. Publicity 
and advertising matters had previously been assigned 
elsewhere, and the broad public relations function 
had rested in the top group headed by the president. 

A North Carolinian by birth, son of Walter Hines 
Page, who was ambassador to England before and dur- 
ing the First World War, Arthur Page came suddenly 
from an editorial career (with Doubleday Page) to 
AT&T at the invitation of Walter S. Gifford, who had 
become president of the company a couple of years 
earlier. He was, therefore, an "instant" vice president 
who not only made good, so to say, in the Bell System, 
which was — and still is — full of reasonably hard- 
boiled, line-organization people who have to be 
shown that public relations pays off, but also, within 



Prescott C. Mabon served us assistant to several chief executive 
officers of t/ie American Te/ephone & Te/egraph Company and 
retired from t/ie business in 7969 as vice president-administration. 
A graduate of l-larvard, he lives in Madison, Connecticut, and 
serves as information consultant witti f/ie United Nations Devel- 
opment Programme. Reprinted by permission from Public Rela- 
tions Journal. Copyright March 1971. 



a few short years, he won wide reputation as one of 
the very limited number of real wise men in the still 
vaguely bounded practice of public relations. 

Prosperity followed by crash 

What was the range of Page's talent? Before I give 
my own answer to the question, it may be well to 
indicate at least something of the range of the prob- 
lems that he and his colleagues faced. Page's term as 
AT&T's chief guru in relation to the public began with 
a couple of years of prosperity, followed by crash, 
followed by depression, followed— and accompanied 
—by an ex parte investigation of the company by the 
then newly constituted and crusading Federal Com- 
munications Commission, which did not even allow 
AT&T lawyers to question the commission's investiga- 
tors. These events in turn were followed by war, fol- 
lowed by the first year or more of breakneck effort 
to catch up with the public's pent-up, unfilled de- 
mands for communications service. Yet all through 
this roller coaster ride, AT&T and its associated Bell 
System companies had reasonably good success in 
maintaining public respect and understanding for 
their efforts. And to this result, it seems to me, Arthur 
Page made several significant contributions. 

First and foremost, he really rubbed it in within the 
organization that all business, including the tele- 
phone business, begins with the public's permission 
and can proceed only with the public's approval. The 
operative part of that sentence, by the way, says al- 
most word for word what Page, himself, used to say 
over and over again in his own talks and writings. The 
thought of course (like most of Page's thoughts) is 
simple enough. What is far from simple, however, is 
getting it over to management with persuasive force. 
This Page was able to do with patience, humor and 
a quiet, steady flow of his own particular brand of 
homespun good sense. He knew it was essential for 
everyone in the top councils of the business to get 
a firm grasp of the main idea, and he worked all the 
time to keep the idea fresh in everyone's mind. 



The second point I would emphasize is closely re- 
lated. Most people know that the Bell System is not 
only a company but a group of companies, with AT&T 
at the head. Responsibility for service to the public is 
diffused through some 25 regional organizations, 
each with its own officers and directors. In most in- 
stances (as with AT&T) back in the 1920's, there was a 
publicity and advertising manager — sometimes called 
an "information" manager — but generally this assign- 
ment was not one of the top jobs, and the broad 
public relations responsibility really belonged to the 
president, who might or might not have the feel for 
it that the situation required. 

Through the years, after Arthur Page came to work, 
this situation changed. With his advice and encour- 
agement, and above all through the power of his ex- 
ample and tutelage, the regional operating telephone 
companies one by one staffed the public relations 
job with people of officer caliber, put them in the top 
management, and gave them the authority their re- 
sponsibilities deserved. 

So we have now, first, the basic concept being ad- 
vanced persuasively within the top councils of the 
business by Page, himself; and second, thanks largely 
to Page, we have public relations officers where they 
need to be. What next? 



"Giving hostages to performance" 

The third source of Page's strength, in my view, was 
his insistence on public commitment. What would 
the business commit itself to do? What would it say 
that would obligate and bind it to action along certain 
specific lines? This of course is a matter of stating 
goals — but the question is, what kind of goals are 
they going to be? One can state objectives in all sorts 
of mushy ways — in terms of hopes or fond expecta- 
tions, or conglomerate-wise perhaps, in hand-rubbing 
terms of more and more and more. Page's notion of 
goal setting, however, was different. To use some of 
his own words, he thought of making policy com- 
mitments as "giving hostages to performance." 



And here I am reminded that less than a year from 
the time when Arthur Page became public relations 
vice president of AT&T, Walter Gifford, the president, 
made a speech before the National Association of 
Railroad and Utilities Commissioners in which he de- 
fined AT&T policy and objectives in absolute terms. 
The purpose of the company, he said, would be to 
render the best possible service at the least possible 
cost consistent with financial safety. That sounds a 
bit pious and general, but the full text delineated the 
obligations and goals of AT&T quite specifically, and 
the speech became, in fact, a landmark in Bell System 
history. As to the exact extent of Page's influence 
here, I can only give my own surmise, which is that 
it was considerable.* 

Not mere hot air 

Commitment via the enunciation of policy may be 
said to be a matter of strategy. But in addition to this. 
Page made impressive contributions to the tactics of 
public relations. 

For example, when one affirms (as he did) that 
public relations is 90 per cent doing and only 10 per 
cent talking, the very affirmation strengthens the con- 
fidence of budget-minded management that the talk- 
ing will not be mere hot air. At the same time, Page 
could successfully insist that the talking was essential 
and must not be dispensed with. But it would have 
to be skillful, he had no doubt. After all, as he pointed 
out, on any rainy morning the average citizen is more 
interested in where he put his rubbers than in how 
the Bell System is getting along. So his attention 
would have to be wooed to be won. 



*lt must be added here that Theodore N. Vail, president of 
AT&T from 1907 to 7920, had for years, in many public 
statements, set forth the company's aims and what he con- 
sidered to be its obligations. So Page and Gilford were not 
exploring uncharted seas. They were unquestionably, how- 
ever, giving well-timed hostages to the future. One other 
point: It is not intended to suggest here that policy commit- 
ments announced in the 1920's are still appropriate today. 



Equally important, Page set great store on listening 
and learning. Specifically, his encouragement of the 
development and use of opinion survey techniques 
by AT&T in the 1930's helped make the company a 
leader in the field. This activity had its beginnings in 
an effort to find out what impact public awareness of 
various aspects of the Bell System had on public opin- 
ion. If people knew, for instance, something about 
Bell Telephone Laboratories research and develop- 
ment success, would this have any measurable effect 
on their over-all attitude to the Bell System? And in 
related terms, would time and effort and a little 
money spent on programs to let people know some- 
thing about the System's technical achievements be 
well spent?** Page wanted to know, and with the 
help of Arthur Richardson, C. Theodore Smith and 
their associates, he was able to develop measure- 
ments that told far more about the actual results of 
certain institutional advertising than could ever be 
learned from quantitative readership surveys. Inci- 
dentally, I doubt that it is generally known that 
Richardson and Smith, spurred on by Page, were 
among the real pioneers in designing opinion survey 
procedures. Studies of this kind have since become 
indispensable to AT&T in the development of new 
communications services, in marketing and in the 
analysis of month-to-month service results — in fact, 
in hundreds of ways. While there is no question that 
these methods would have had to be developed and 
used in any case, nevertheless the fact remains that 
Arthur Page was instrumental in getting them into 
use more than 35 years ago. 

Distinct, formidable talents 

When it came to the actual business of talking and 
writing — the 10 per cent of public relations so much 
needed in support of the remaining 90 per cent — 
Page had distinct and formidable talents of his own. 



**Tbe answer to these questions, in the climate of the 
1930's, was a decided "yes." 



Beneath his quiet, casual manner he concealed great 
energy. For instance, when it appeared, in the wake 
of the F.C.C. investigation in the 1930's, that AT&T 
would be well advised to say a few words in its own 
behalf (which it had not been allowed to do officially 
as part of the investigation record), one item called 
for was a book about the business. This Page pro- 
duced in about six weeks. 



Dignity^ calm and humor 

It was a plain and simple book, under the plain and 
simple title of "The Bell Telephone System," and its 
undisguised purpose was simply to state the record 
of, and the case for, the company. It did this well — 
at least in the opinion of one prejudiced reader — and 
notably, it proceeded from beginning to end without 
any hint of irritation as to F.C.C. tactics, with dignity 
and calm, and even with a certain humor. For exam- 
ple, commenting on the company's need for people 
who would exercise initiative but keep, withal, a de- 
cent sense of timing and order. Page remarked that 
after all, "The bull in the china shop was full of initia- 
tive." More seriously, but still calmly, when he turned 
to the subject of government regulation, he said: "If 
the tendency toward rigidity against which all busi- 
ness managements, big and little, have to struggle is 
increased by commission rules and regulations, the 
effect will be bad. The most serious problem before 
regulation is self-restraint. The question for the pub- 
lic and its elected representatives is what is most likely 
to produce energetic able organizations that have 
vision, take risks, and are likely to be competent and 
prepared at all times. . . ." 

In World War II and during the year and a half that 
followed (Arthur Page retired from AT&T at the end 
of 1946 to become an independent consultant, al- 
though he remained on the company's Board of 
Directors) the main public relations problem of the 
Bell System, as already noted, stemmed from its in- 
ability to give all the service the country wanted. Page 
accordingly led a vigorous effort to help people un- 



derstand the reasons. Advertisements pointed out that 
the copper needed to make telephone wire was going 
into bullets. They told readers that there were honest- 
to-God reasons for giving priority to war-related calls 
— that 72,000 calls went into the making of a Liberty 
ship — that the general public could help a lot if they 
would refrain from making unnecessary evening calls 
and "save 7 to 10 for the servicemen" — and so on. 
This was hard going, sure enough, but on the whole 
I think it was managed well — and surely few could 
doubt the rightness of the basic theme that the first 
demand on communications was to help win the war. 
No one, I might add, made a better summary of the 
scale of the Bell System's wartime involvement than 
Page, himself, when he said, with his usual simplicity: 
"When you have a little part in every effort, it adds 
up to quite a lot." 

His meetings were plain fun 

No recollection of Arthur Page would be even half 
complete if it were to leave out the fact that in ap- 
pearance, manner and conversation he was a unique 
and delightful man. It is now nearly a quarter of a 
century since he held his last conference with the 
public relations officers of the Bell companies, so it 
is hard to recall specific remarks or turns of phrase. 
However, one can never forget the delightful infor- 
mality of these meetings, the easy flow of discussion, 
the insights and humor that Page brought to the con- 
sideration of problems posed for review. He never 
raised his voice. He was never heavy-handed with a 
conference member who might have fumbled some- 
thing. He never tried to hammer a point home. What 
he did do was bring to the meeting a clear idea of 
what he hoped to see it accomplish, and then infor- 
mally, adroitly and in the friendliest sort of way en- 
gage the interest of his associates, so that time after 
time I have heard them say that no other meetings 
ever gave them the same sense of enjoyment, of plain 
fun, that they experienced in Page's conferences. 

If it seems to the reader that I am here putting more 



emphasis on manner and style than they deserve, I 
must strongly disagree. Page's style was in fact essen- 
tial to his accomplishment. If it is not easy to be wise 
(as he, himself, once remarked in a talk he was 
pressed into giving with no time for preparation) it 
is even more difficult to use whatever wisdom one 
has in a way that gets other people favorably excited. 

Succinct to the utmost degree 

This is not to say that Page was verbose. On the 
contrary, he was sometimes succinct to the utmost 
degree. I might recall here, for instance, as typical of 
this hyper-brevity, one piece of correspondence that 
consisted of a two-page letter from a Bell company 
officer, and Page's two-sentence reply. The reply said: 
"Dear Bill: I gather some are doing as you say. I hope 
you won't. Sincerely, AWP." 

On other occasions. Page might make a suggestion 
or request in a sentence or two that assumed that the 
person addressed knew a lot more about the subject 
than in actual fact he did. If a personal reference may 
be forgiven, when this first happened to me I had al- 
ready learned that someone else in the same boat 
had made the mistake of bombarding Page with re- 
quests for particulars, whereupon Page concluded 
that he would prefer to rely on someone else. As a 
result, I was more than once in the situation of saying: 
"Okay, will do," or words to that effect, then bound- 
ing out of his office to spend the next half hour in 
trying to figure out what on earth he really wanted. 

One more anecdote may help to reveal the quality 
of the man: Years ago one of his sons, as a small boy 
in school in New York, one day found the school 
lunch not to his liking. When he was asked why he 
didn't eat, he didn't want to hurt the cook's feelings, 
so in a desperate flash of inspiration he murmured 
that he had become a vegetarian. This was puzzling, 
indeed, to the person in authority, who promptly 
called the boy's home. As it happened, Arthur Page 
was there and answered the telephone. He listened 
with astonishment but gave no sign, and when it was 



Words 

that made history 

by Noel Griese 



Mr. Criese is writing 
an Arthur Page 
biography. He is 
interested in hearing 
from people who 
l<new Page. His address 
is the University of 
Wisconsin School of 
journalism, Madison, 
Wisconsin 53706. 



Arthur W. Page wrote what were prob- 
ably his most widely read words in 
August 1945 for President Harry S. 
Truman. 

"Sixteen hours ago," the Truman 
statement began, "an American air- 
plane dropped one bomb on Hiro- 
shima, an important Japanese Army 
base. That bomb had more power than 
20,000 tons of TNT. It had more than 
two thousand times the blast power of 
the British 'Grand Slam' which Is the 
largest bomb ever yet used in the his- 
tory of warfare." 

Page had been called to Washington 
in April 1945 by his long-term friend, 
Secretary of War Henry L. Stimson, os- 
tensibly to assist the Army's Bureau of 
Public Relations. 

"It was a month after I got there 
before I discovered what the Colonel! 
(Stimson) was really bothered about,"i 
Page says in his 1959 Reminiscences, 
for Columbia University's Oral History 
Research Center. "It was the atomic 
bomb." 

According to Page, Stimson "had s 
great conscience about whether he 
ought to use this doggoned thing oi 
not, and if so, how." In short, Stimsor 
wanted someone to talk to, and he 
chose his old friend, Arthur Page. 

Ultimately, the bomb was used a 
Hiroshima on August 6, 1945. Page 
together with Lieut. Col. Charles T 
Arnett, prepared statements for boti 
President Truman and Secretary Stim 
son. 

"Arnett is the man who really wrote 
the whole business," Page says mod 
estly in his Reminiscences. "We hat 
two reports to write, finally. One wa 
the Presidential message, and the othe 
was the Secretary's report. Arnett sa 
down and wrote the Secretary's report 
. . . And I took his report and squeeze 
it down and changed it around . . . ani 
wrote the President's. ..." C 



time to answer said, "Vegetarian? Vegetarian? Well, 
er — of course he's a vegetarian!" Of such parental 
support is filial devotion born. 

I have little first hand knowledge of Arthur Page's 
work after he left the AT&T vice presidency, save that 
he continued his career as a consultant uninterrupt- 
edly until his death in 1960. His judgment was valued 
by several corporate clients, and he labored mightily 
as head of a commission that grappled (alas, with no 
great success) with the problem of mass transporta- 
tion in the New York Metropolitan Area. In the main, 
I venture to say, his contribution to the art of public 
relations counseling — if it is an art — was centered in 
his career with AT&T. 

On reflection, I think I chanced to use the word 
"art" in the sentence above for the reason that it 
seems appropriate in any consideration of Arthur 
Page. He thought of management as an art and in his 
talks and writings often so described it. While he was 
all in favor of practical reasoning and common sense, 
his essential approach to problems was not scientific 
but intuitive, and he had great faith in the ability of 
individual men and women to flourish and create in 
an atmosphere of freedom. "What makes a country 
is freedom and big men," he said, and that is where 
he put his trust. 

Limited understanding of unionism 

In fact, it would be hard to think of any individual 
more quintessentially American than Page. He not 
only believed in progress, he could feel it coming. 
In the years before World War II, it will be remem- 
bered, the Temporary National Economic Committee 
of Congress, headed by Senator O'Mahoney, took 
the view that the economy had become static and was 
in grave danger of staying that way. It was character- 
istic of Page that he studied the committee's conten- 
tions thoroughly and then and there found them (as 
others have since) altogether wrong. 

Everyone has shortcomings, and this applies to Page 
as it does to the rest of us. In Page's case I would say 



that his natural temperament, his boundless faith in 
personal freedom and his instinct not to accept the 
contrary, perhaps limited his understanding of union- 
ism and the prospects for the permanence of union 
power. Although he was a plain, unassuming man, 
friendly and gregarious. Page was nevertheless also 
something of an aristocrat, a member of a leading 
North Carolina family, a man with the people rather 
than of the people — not an up-from-the-ranks man 
but one who by reason of both family and abilities 
lived all his life at the top, albeit modestly and with- 
out pretension. 

Quality performance, good character 

Does this make any difference in how one gauges 
the long-range impact of the unions on social and 
economic life? Perhaps not. But in any case, if there 
was a hole somewhere in Arthur Page's thinking, I 
would locate it here. He simply did not understand 
that the unions were not going to go away. 

Against this, however, one can set great strengths. 
To sum them up in a few sentences: 

Page persuaded management to put public rela- 
tions in the forefront of management responsibilities. 
He knew that business could proceed only with pub- 
lic approval and that quality performance based on 
good character was the absolute requirement. He 
called for policy commitments that would serve as 
hostages to performance and for the understanding 
of policy by all concerned. He insisted that talk — the 
explanation and interpretation of performance — was 
essential to help bring about such understanding. To 
measure both talk and performance more accurately, 
he instituted and encouraged techniques that im- 
prove industry's ability to listen and learn. By the exer- 
cise of his own personal talents for communication, 
he imparted to many other able people something of 
his own enthusiasm for doing a first-class job. These 
are accomplishments, I would say, of which any man, 
and also any business with which he may be associ- 
ated, can be proud. D 





Citizens 
or 

itants? 



Gordon L. Hough 




"Citizens shall be guaranteed freedom of speech, of 
the press, of assembly and of demonstration. 

"Citizens shall have the right to elect and to be 
elected to (public office). 

"The vote shall be universal, equal, direct and 
secret. All citizens who have reached the age of eigh- 
teen years shall have the right to vote. 

"The State shall guarantee the equal rights of cit- 
izens. No restrictions of these rights and no discrim- 
ination in the exercise thereof on grounds of nation- 
ality, race, sex or religion shall be permitted." 

Americans have given their lives to protect such 
rights as those words describe. As Stephen Vincent 
Benet put it, "It took a long time to buy them, and 
much pain." The only catch is that every one of the 
rights listed above appears in the Constitution of the 
Socialist Republic of Romania and in the constitu- 
tions of other countries whose notions of life, liberty 



and the pursuit of happiness differ markedly from 
our own historic standards. 

The point is obvious. Words alone, no matter how 
eloquent or straightforward, do not guarantee liberty 
or the successful functioning of the democratic pro- 
cess. To preserve the best traditions of the American 
system, open the full benefits of that system to all 
citizens, and further improve those tenets of govern- 
ment that are not without flaws is a responsibility 
to be shouldered anew by each generation. Lacking 
such effort by succeeding generations, this system, 
wrought by men and women of every national origin, 
faith, color and political belief, could be lost. "Born 
of idealism, died of apathy" would be an unlikely 
and ignoble epitaph for the American idea. Yet, such 



Gordon L. Hough is Director of Public and Employee Informa- 
tion, American Teleptione & Telegraph Co., in New York. A 
former vice president of the Pacific Telephone & Telegraph Co., 
Mr. Hough has a B.A. and M.B.A. from Stanford University. While 
with the Pacific Company, he was trustee of Pomona College and 
a director of numerous California corporations and cultural and 
civic organizations. 




10 



a fate is not without precedent in the histories of na- 
tions who have abdicated their futures to ill-infornned, 
irrational, irresponsible zealots. 

Recent changes in the law mean that more than 
11 million 18-to-21-year-olds will be eligible to cast 
a ballot for President and many important legislators 
next year. Some 103,000 of those affected by the 
law will be working for the Bell System. 

Also added to the rolls will be one million new 
voters now banned by literacy tests and another five 
million now banned by residency requirements. The 
new law states that all previous residency require- 
ments, which have differed from state to state, will 
now be uniform for federal elections throughout the 
United States — a period of 30 days. 

The impact of the 18-year-old vote on 1972 elec- 
tion results is a subject of wide speculation. Many 
experts seem to think the turnout will be light and 
the effect negligible. I disagree. I am confident that 
the vast majority of young people — including those 
in the Bell System — will fulfill their obligations of 
citizenship, participate in politics, and have a bene- 
ficial impact on the decisions made by our public 
officials in the years to come. 

It is refreshing indeed to see so many of the younger 
generation today taking a sincere interest in preserv- 
ing and improving our resources and our society. 
Their enthusiasm and sustained interest and involve- 
ment in the process of government can, if continued, 
make a meaningful contribution to needed social 
changes. And this is as it should be. 

There is ample room for all of us in achieving these 
goals, and I salute those of you who have supported 
and actively participated in action programs dedi- 
cated to these goals. Never before has there been a 
greater need for volunteers to participate in these 
programs. And the choice is wide enough to appeal 
to almost every talent— helping a child to read better, 
working in health and rehabilitation agencies and 
neighborhood youth organizations, assisting the 
elderly, and hundreds more. In addition, our whole 
process of government — local, state and federal — 



is crying for enthusiastic, dedicated people to par- 
ticipate in electing representatives who will make 
the needed changes that will lead to a better life. 

1 have faith that the new generation of citizens 
recognizes the challenge that confronts our nation 
today and will respond. These are not, after all, ordi- 
nary times. The central issues of politics during the 
seventies will deal with more than alternative ways 
of improving the quality of our society. It may be 
only a slight exaggeration to say that these central 
issues will deal directly with thesurv/Va/ of oursociety. 

Democracy is not an easy job. Democracy depends 
on each of us. 

It is up to each of us to learn about candidates. 
What are their experiences, philosophies and abil- 
ities? Do they live up to their commitments? Are 
their ethical standards exemplary and do they have 
the courage of their convictions? 

It is up to each of us to learn how to be effectively 
involved in the processes of democracy and to seek 
out opportunities to become involved. We cannot 
wait to be asked, for we may not be. And we mustn't 
be afraid of the small causes. While we cannot all 
have a measurable impact on the ultimate solution 
of the world's major problems, we can all contribute 
to improving the quality of the life we share. 

It is up to each of us to insure that our government 
respond to the needs and aspirations of the people. 
It is one thing to criticize public officials to our heart's 
content while watching the evening news. We will 
help them do a proper job, however, only by becom- 
ing personally involved, earning influence and com- 
municating our views to others in the community. 

Democracy is built upon the willingness of peo- 
ple to compromise on the issues, to accept 
victory or defeat with a sense of equanimity. 
But there are, on both sides of the political fence, 
increasingly demanding elements in our society who 
insist on all or nothing, who emotionalize issues, who 
refuse to allow sincere and serious debate. The dan- 
ger is that though it is possible to reach a compromise 



11 



born from objective disagreements, it is nearly impos- 
sible to compromise on emotions. 

This is all a part of what some call a "loss of com- 
munity" in America. It seems as if we have lost our 
unity of opinion, our shared belief that we know 
where we are going. There are serious observers of 
the American scene who question whether or not it is 
possible to redevelop a community of interests in an 
urban environment whose neighborhoods have de- 
cayed, whose people isolate themselves from their 
neighbors and whose problems loom so large that 
they make the effort of one individual seem futile. 

Compounding the problem of growing aliena- 
tion is our increased frustration at seeing 
problems grow worse, while our capacity for 
solving them has never been greater. We have be- 
come the first people in history to possess the tech- 
nological and scientific genius to solve nearly all of 
our most threatening problems. What is not yet clear 
is whether or not we have the wisdom and the will 
to make the most constructive choices. Possessing in 
abundance the material and intellectual resources to 
create in our lifetimes an American Renaissance, we 
seem to lack only a unity of purpose. 

That we have lost our unity of purpose is one of 
the great shocks of our time, for it has been the secret 
of the American achievement that the vast majority 
of our people have agreed on the basic goals and 
have pulled together in attaining accomplishments 
others had always thought impossible. To the sixth 
President of this country, John Quincy Adams, the 
American achievement was demonstrated in his belief 
that this nation, "in the assembly of nations, has uni- 
formly spoken among them the language of equal 
liberty, equal justice, and equal rights." Mr. Adams 
said that in 1821, and it's as true in these complex 
times as it was then. 

Equal liberty, equal justice, and equal rights: the 
American achievement. It embraces the hope and 
promise that launched this system in the first place, 
and a 200-year track record showing how that hope 



12 




and promise have been achieved for millions and mil- 
lions of people. It is the right to think, speak out and 
act on socioeconomic and political issues — accord- 
ing to one's conscience, and critically vi^hen it's called 
for — without fear of being repressed or punished or 
banished. It is the right of each man to advance to the 
boundaries of his own ambitions and abilities— edu- 
cationally, politically, culturally, financially, athlet- 
ically, socially or toward whatever objective he sets 
for himself. And that, too, is a big part of this system 
of ours: the freedom to select one's own goals, to 
exercise one's own tastes, to be true to one's self. If 
one wants to march to the beat of a different drummer 
he's free to do that here, for the American system 
encourages individuality and encompasses the right 
to disagree. But most of all, the American achieve- 
ment is what Teddy Roosevelt meant when he de- 
scribed our system as "... a question of principle, 
of purpose, of idealism, of character. It is nota matter 
of birthplace or creed or line of descent." 

Now there's nothing at all wrong with those kinds 
of goals and ideals. Simply because we have not fully 
achieved them, the American idea cannot be allowed 
to die. The fact that we have not always been true to 
its ideals is no reason to reject it. The only thing 
wrong is that we have not yet achieved its promise. 
We are still trying. And that is what counts. 

When he visited America 100 years ago, Thomas 
Huxley wrote: "I cannot say that I am in the slightest 
degree impressed by your bigness or your national 
resources, as such. Size is not grandeur, and territory 
does not make a nation. The great issue ... is what 
are you going to do with all these things?" 

What are we going to do with all these things? 
Only time, of course, will tell. But one thing is cer- 
tain: whatever the future holds will be largely deter- 
mined through the democratic process and by those 
individuals who become involved as voters, volun- 
teers in politics and in civic and community affairs, 
and participants in the political dialogue. 

Because the thoughts I have expressed here have 
been inspired by the great promise held out to the 



nation by the newly enfranchised 18-to-21 -year-olds 
— and particularly by the knowledge that more than 
100,000 of them are fellow employees in the Bell Sys- 
tem — I am tempted to say that these new voters, 
especially, are challenged to become effectively in- 
volved in the search for answers. But that would be 
wrong, because the challenge belongs to each of us. 
I am, however, aware that we are creatures of habit. 
And so I think it is particularly important that young 
people discover early in their lives the rewards and 
satisfactions which result from helping to find solu- 
tions to some of our problems, to expressing opin- 
ions, to having a voice in determining the direction 
of our society. As for the obligations of citizenship, 
I ask everyone — new voters and old — to join to- 
gether in the hard work that must be done if the 
democratic process is to work for the betterment of 
our own lives and the lives of mankind everywhere. 

I am proud of the role the Bell System has played 
over the years in encouraging its employees to 
become active, as individual citizens, not only in 
their civic and community affairs but also in the dem- 
ocratic process of government on a local, state and 
federal level. There are also thousands of Bell System 
employees who serve in hundreds of ways as school 
board members, city councilmen, volunteer tutors, 
on special committees, charitable organizations and 
many other social, civic and governmental groups. 

It is gratifying to know that our business is more 
than just serving communities with communications. 
The corporate responsibility also involves being a 
good citizen— directing individual and corporate ex- 
pertise to help solve the problems of society. Our 
company has made a commitment toward this end. 
The decision to become involved, of course, is 
yours. Becoming involved in the party or organization 
of your choice can be a most rewarding, self-satisfying 
experience. If you make this decision, you can enjoy 
the opportunity of being a proud citizen participat- 
ing in the workings of our society — instead of just 
an inhabitant. D 



13 



Growing Their Own 
in Comptrollers 

by Bob Wolfenbarger 



Associated Company comptrollers 
turn to systematized training techniques 
in preparing computer people to 
meet growing service needs. 



/**^ 




When the nation's largest computer manufacturers 
decided to "unbundle," or separate from computer 
hardware costs, their charges for training and other 
support services, the comptrollers of the associated 
companies of the Bell System last year found them- 
selves confronted with a new set of problems — in- 
cluding training of their thousands of computer hard- 
ware and software people. It was estimated that such 











>:^ 



'MMM^^ 




"^^^^^^''W" ■^W'W*W7''f^ 









unbundling throughout the computer industry would 
increase training costs to the Bell System by as much 
as a million dollars a year. 

New computer systems were spawning new tech- 
niques and procedures. The prospect of a number of 
interdepartmental business information systems with 
such acronyms as BISCUS, TIRKS, ICIS and DIR/ECT 
alluded to an oncoming change in the Comptrollers 



departments that would be no less revolutionary than 
the changes wrought by electromechanical switching 
in the operating and engineering departments. Pro- 



Mr. Wolfenbarger is a supervisor of comptrollers personnel at 
AT&T. He has served with Western Electric in New York, Indianap- 
olis and Shreveport, and with Bell Labs at Murray Hill in a variety 
of editorial and administrative public relations posts. He holds 
degrees from Florida State and New York universities. 




^ ^-is^- visr,^' ^-xJisS®' sii^&- 








'mm 



'mf!^ 



jected computer costs for a typical telephone com- 
pany called for an increase from five million dollars 
in 1968 to nearly 30 million dollars by 1978. Part of 
this would be spent on the Business Information 
Systems (BIS) plans in computer-based information 
retrieval systems emerging from Bell Laboratories. 

Training of computer operators and supervisors 
around the System is not analogous to training of, say, 
Electronic Switching System (ESS) technicians. Much 
of the telecommunications equipment, such as ESS, 
used throughout the System is standard. But in the 
Comptrollers departments, one computer center does 
not resemble every other center. Comptrollers offices 
around the System just don't have the same configura- 
tion of computer hardware. 

Influx of new computers 

Compounding the problem is an influx of new 
families of computers — IBM 370 systems and RCA 
Series Seven processors. The computer industry, 
which more than any other entity has accelerated 
today's technological advancement, has its own vehi- 
cle of technology in high gear, with computers help- 
ing to design newer generations of computers. There 
is no end in sight to the burdens placed on data sys- 
tems training organizations to develop more inten- 
sive instruction for computer operators, supervisors, 
programmers and analysts. Development of training 
is historically an operating company function, and 
most companies teach basic programming and oper- 
ating skills. But few can offer advanced systems train- 
ing, and with unbundling, a number of companies 
have been making plans to build larger training staffs. 
Generally, the old method of training involved tap- 
ping second level managers to throw together a train- 
ing package, collect some dummy training material 
and turn the task over to first level supervisors. The 
unit supervisors, faced with demanding production 
schedules, often turned the training over to their top 
clerks. The result usually turned out to be another 
round of routinized instruction programs — show- 



and-tell sessions — that characterize too much of 
present-day vocational training. Good training be- 
came, in the words of one observer, "the most talked 
about and least understood thing we do." 

Fixed the eye on training 

The unbundling decisions fixed the eye of manage- 
ment on training like no other event in the recent 
history of Comptrollers. Southern Bell's vice president 
and comptroller, John Mclntyre, former head of the 
Comptrollers Operations Division at AT&T, told the 
Associated Company comptrollers in December 1969: 
"With the decision to unbundle prices, the time has 
come to once again reaffirm and re-emphasize the 
need for data systems staff support. If nothing else, 
these decisions have focused our attention on support 
services." Mclntyre told the comptrollers in that meet- 
ing — a month before the computer manufacturers' 
unbundling policy was to take effect — that AT&T 
was considering establishing an instructor training 
school "for the primary purpose of helping your com- 
panies expand and improve your own in-house train- 
ing capability. We think that potentially the idea of 
an instructor training center has a great deal of merit. 
There is the prospect for direct savings. But more 
important, the benefits gained from a centralized 
training facility would be measured in the increased 
expertise you could develop for your own staff." 

Training reflects priorities 

There was an awareness that the techniques and 
technology of the revolution in information process- 
ing and communication could be used to turn on the 
employee who had been turned off by the pallid 
blackboard and textbook brand of group instruction. 
Talk of instructional technology, systems of learning, 
multimedia programmed instruction and centralized 
training development served to stimulate growth of 
vocational training in Comptrollers unlike that of any 
other period in its history. 



16 



Traditionally, training has reflected priorities of the 
organization that created it. Where it has strong sup- 
port, training groups offer a broad curriculum taught 
by instructors armed with closed circuit TV, films, 
teaching machines and programmed instruction. 
Where support is lacking, training languishes. 

New York Telephone's Eastern Manhattan Division, 
which produces billing for 190,000 residence cus- 
tomers and 60,000 business customers on the East 
Side, is typical of the large accounting offices in hard- 
boiled urban nerve centers. Employee turnover there 
is a wilting 53 per cent. Customers are ever more 
demanding of billing accuracy. Last December, the 
entire Downstate Territory of New York Telephone 
changed to a new service order form that would be 
used by all departments as the basic document of a 
customer's telephone service. This was the first dra- 
matic form change in 18 years. The job of training 
more than a thousand clerks to accurately process the 
form in short order was a mind-boggling task — and 
would have been even in a sedate office. 

"It would have been chaos" 

"If we'd tried to make the conversion, training the 
old way, it would have been chaos," says Al Nelson, 
district accounting manager, who has 200 clerks in 
his office. Instead, New York Telephone adopted a 
new training technique pioneered by Pacific Tele- 
phone comptrollers. More than a dozen other tele- 
phone companies have embraced the technique, 
known as multimedia programmed instruction. This 
is an intensified style of training that couples slides 
and tape-recorded lectures with self-teaching pro- 
grammed instruction — a McLuhanesque approach 
to programmed instruction that allows the student to 
swallow instruction in bite-sized lessons and test him- 
self as he goes. Proponents of the method say reten- 
tion is higher, instruction is standardized, less teach- 
ing time is needed and when used with large numbers 
of employees, costs are less than for chalk-talks or 
chart lectures. 



New York gambled that multimedia would work 
as well for a conversion as it would for routine train- 
ing. It paid off. As the conversion deadline neared, 
some 2,000 clerks and supervisors from White Plains, 
in Westchester County, to Massapequa, on Long 
Island, went through tightly scheduled sessions in 
one or more of three sequential training packages. 
Mary Reinert, accounting training supervisor, says: 
"By far this is the best method I've seen in vocational 
education." 

Production stayed up 

One clerk commented: "It really holds your inter- 
est. It's precise and to the point." 

During the conversion, production and accuracy 
indices in at least one office stayed up despite changes 
to the new service order form. Service order process- 
ing did not decline, nor did the number of service 
order investigations mount — usually a clue to a rising 
tide of errors. Training required a third as many 
trainers as would have been required with a lecture 
technique, and training time was halved. John Garone, 
district accounting manager, says: "1 don't think there 
was any other way we could have trained our entire 
work force in the time we were allowed without the 
use of multimedia." 



Some guarded reactions 

Multimedia training is only one tool for reaching 
today's clerical worker, and it's a powerful one. Still, 
there are guarded reactions among some training 
people and clerks who have used it. "I'm not sure we 
don't lose personal contact with it," says Anita Klein- 
hammer, a methods assistant in Brooklyn who was 
one of the trainers. 

A service order clerk in Manhattan says: "I'd rather 
be taught by an instructor and be able to ask questions 
as ! go along." 

Even so, multimedia training is a great step forward 
for Comptrollers, says Al Nelson. "Normally," he says, 



17 



"accounting is at the end of the line in development 
of training. A lot of people still think of accounting as 
a green eye-shade kind of operation." After 22 years 
in the business, he says the new training technique is 
"the first thing I've seen that's really dramatic." 

New York Telephone's switch to multimedia in the 
department last year illustrates the sweeping new 
trend taking place in the department to professional- 
ize training. 

Favorable consensus 

The consensus emerging from talks with the comp- 
trollers and their top managers following Mclntyre's 
statement in 1969 was overwhelmingly favorable, es- 
pecially among companies with limited training staffs. 
It was agreed that support for an instructor training 
center would come primarily from the companies, 
with each telephone company paying a pro rata share 
of startup costs and costs of development of training 
materials. In addition, tuition costs of $250 a week 
would be charged the companies for each student en- 
rolled. Financial support for the school was patterned 
along the lines of two other Bell System specialized 
training centers, the Plant Training Center in Atlanta 
and the Center for Technical Education in Lisle, 111. 

Meanwhile, AT&T's Comptrollers Operations Di- 
vision selected William K. Kays, a 14-year Bell System 
veteran manager, to head the training center. Kays, 
formerly a district data processing manager with The 
Chesapeake and Potomac Telephone Company of 
West Virginia, was immediately confronted with a 
barrage of questions about the purpose, curriculum 
and site of the new center. 

Meetings with operating company training man- 
agers were called in May to hammer out priorities 
for courses to be developed and to lay groundwork 
for future operation of the new center. "Generally 
speaking, these people didn't understand our concept 
of centralized training development. A lot of time 
was spent discussing the role of the center versus 
that of the companies," says Kays. 



Chronic need for assistance 

Out of the meetings came one development that 
revealed the breadth of training needs in the com- 
panies. "Although the center was originally planned 
as a data systems training center," says Kays, "it was 
readily apparent that there existed a chronic need for 
assistance in management and clerical training as 
well." Each company was polled for its feelings about 
plans for the center. 

Along with a go-ahead from working level manage- 
ment came requests for development of more than 
150 courses — in one sense, an overwhelming en- 
dorsement; in another, a thinly veiled challenge. 
Heading the list were requests for workshops to teach 
training people how to create multimedia pro- 
grammed instruction. But generally, the list could be 
broken down into four categories: data systems, man- 
agement training, clerical training and training in 
teaching techniques. 

For the next seven months, as the center moved 
into its permanent home and as the staff was recruited 
from telephone company training organizations, 
company requests came under careful review. Each 
course was translated into specific modules, each 
with a description of prerequisites and objectives. 

Denver won out 

Following those early conferences in the spring of 
1970, Bill Kays visited Denver, Lisle and other cities 
in search of a training site. Eventually, Denver was 
selected. It won out as much for its promise as a 
transportation hub as fortheavailability of moderately 
priced office space and housing. Moreover, Mountain 
Bell lent its fullest resources to the search. In Denver, 
Comptrollers people found space in the Writer's 
Manor office and motel complex, close to computer 
centers and the mushrooming bedroom suburbs edg- 
ing south of the city. 

The boom of multimedia training in the department 
was fueled by the first courses to be offered in Den- 



18 



ver. The first multimedia workshop, held in Septem- 
ber, was taught by a specialist in multimedia teaching 
who was recruited from the Pacific Telephone office 
that pioneered the technique. Along with him came 
copies of more than 160 Pacific Company courses 
that, with minor adaptions, could easily be offered by 
any company with similar hardware and procedures. 

Created for astronauts 

Originally created to train Apollo astronauts and 
Air Force pilots, multimedia training offers business 
the benefits of a technology that will make its instruc- 
tion equally productive and individualized. "There 
are many applications for the new technology 
throughout business," says Glenn Gollihur, assistant 
secretary and treasurer of Pacific Telephone and 
"father" of multimedia training in the Comptrollers 
Department. "Any organization with a need for speed 
learning of technical skills is a prime candidate for 
its adoption. It's economical for use with large num- 
bers of people with similar jobs, and it's fast and 
effective for training new people, with or without 
the skills we need in business. Multimedia also has 
been successful in teaching subjects as diverse as 
math in ghetto schools and research in law schools." 

Clearinghouse for ideas 

But the Comptrollers Training Center aspires to be 
more than a multimedia training center. It hopes to 
be a clearinghouse or focus point for training ideas 
for the department. 

The literature of training these days abounds with 
references to "systems of training" and "training 
standards." Indeed, a look into the future suggests 
that a new Bell System technology, perhaps as broad- 
based as that which is going into design of communi- 
cations systems, will emerge from such centers as 
Denver, Atlanta or Lisle. Training technology is now 
in its infancy, and to be effective it will need to be 
systematic and standardized. That means developing 



training with a clear idea of what a trainee knows 
about the subject, what he must know to do the job, 
and how to test for how well the training readies him 
for the job. 

The Denver center, though, does not intend to 
build a Comptrollers training technology from the 
ground up. Their approach is unique, simple and in- 
expensive. Although the staff expects to create some 
courses, they'll also borrow experts from the Bell 
System to write or recommend the purchase of care- 
fully evaluated courses from vendors. Or they'll adapt 
existing training courses for wider System use. Almost 
300 courses in data systems, teaching technology, 
clerical and management training are now available 
for use almost anywhere in the Comptrollers depart- 
ments. Three recent courses for instructors offered 
by the center came about this way. Classes in ad- 
vanced BIS-COBOL, a computer language, and an 
Introduction to Total Systems Development, which 
deals with Business Information Systems, develop- 
ment, were adapted from courses originally devel- 
oped by Bell Labs. A course in instructional technol- 
ogy to train students to improve classroom techniques 
was modified from a Mountain Bell course. 

$6.8 million a year 

Efforts like these are expected to measurably im- 
prove the standards of training in the Comptrollers 
departments. All in all, the department spends $6.8 
million a year on training, and that's only the measur- 
able cost of manpower, facilities and materials used 
in formal programs. One cannot expect the training 
center, with a staff of seven, to raise the level of train- 
ing by itself. Much of the course development will 
still be done by the companies. But for Comptrollers, 
Denver is a symbol, a standard, an expression of the 
need for more systematic training for a more sophis- 
ticated age. It exists to serve the companies' growing 
needs for more relevant training. Yet it will be no bet- 
ter or worse than the standards the companies de- 
mand from training. n 



19 



SH^INGTHE 

The booming newspaper industry is ohonging-with 



We're stuck with print 

Marshall McLuhan to the contrary, what you are reading at 
this instant — the printed word — is likely to be around in 
predominant form for decades to come. Radio and tele- 
vision have not killed the newspaper or the magazine. The 
number of daily papers in the United States has hovered 
around the 1,750-mark for the past 25 years, and, indeed, 
the number rose in 1970 over the year previous. This despite 
24-hour-news radio stations, network and local TV specials 
and other increased emphasis on broadcast news. 

The fact is, even a slow reader can absorb more words 
per minute via print than he can via radio, TV, or tape or 
disk recording. And the reader is finding that with a little 
effort, he can increase the speed of his reading as well as 
his comprehension and retention. Add to this the superior 
portability of printed matter, as opposed to even the most 
miniaturized tape recorder, plus the fastest human scanning 
and random selection features of all the mass media, and 
we're stuck with print, like it or not. 

Tomorrow, as today, the leaders will be those who do not 
rely on the spoken word, but base their knowledge on the 
written word, whether they're leading a nation or a family. 

By far the largest form of graphic arts is the newspaper 
industry, which is the tenth largest in the United States in 
value of shipments (more than $6 billion last year) and one 
of the 10 fastest growing in the country. Newspapers are 
starting to take a hard look at electronic means of converting 
raw words and graphics into a final printed product and 
transmitting at least some of that product to the consumer. 
Pinched on one side by mounting production costs and on 
the other by increasing consumer demands for fresher news 
— even in printed form — newspapers are casting a prag- 
matic eye toward the computer, video display terminal and 
high-speed data transmission to meet these challenges. 

They are breaking their traditionalism and preparing to 



change production methods as they've not been chc 
since perhaps the advent of the Linotype machine. And 
change will come greater demands for better telecomr 
cations services, likely along with unsurpassed compe 
between the Bell System and cable television systems. S| 
ing production will be only part of the newspaper's 
to rush news into the home. The newspaper of tome 
probably will incorporate multimedia to disseminai 
information — video display of information and fac< 
reproduction based on interest profiles, aimed at hon 
formation centers that probably will be fed by both 
phone and CATV companies. 

Newspapers recognize that not everyone will wan 
same commodity. Many will continue to content thems 
with an easy chair, a cup of coffee or a slug of ScotcF 
the front page, sports section, business pages or amuser 
of their daily paper. Others will want to call up capsu 
the news — sports scores, the weather report, stock m 
quotations, the recipe of the day, or the status of the 
probe of Mars. They may do this with Touch-Tone® se 
receiving the report on a Picturephone* screen direct 
a newspaper's computer. Or they may call up a CATV 
pany and get what they want in color on their 24-inc 
screen, or in high-speed print-out form or by facsimile, 
of course, would involve two-way communicatio 
cable, unheard of as yet. But CATV owners, about 8 pei 
of whom are publishers, realize the potential of their i 

Undoubtedly the most forward thinking in the newsf 
industry is represented in the American Newspaper 
lishers Association Research Institute (A.N.P.A./R.I.) in 
York. And one man who is most attuned to the conc< 
tomorrow's newspaper is Jules S. Tewlow, the insti, 
director of special projects. Tewlow is a graduate of 
Virginia Wesleyan College and Johns Hopkins Univi 
and has worked for newspapers in various capacities! 
eluding editorial and advertising — since 1945. Before j(l 



20 



)sed dependence on telecommunications services 




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wspaper is beginning to evolve into a multimedia entity, whereby 
: ^sumer will have a choice in the form in which he receives his daily 
I n hard copy as he does today, or through electronic means that will 

ionize the news industry. 

..N.P.A., he was manager of industrial research for 
'lew York Times. 

Iiever talk beyond 10 or 15 years," he says. "Because 
'- you talk about 10 years from now, you're talking blue 
■ind beyond that, it's black sky." Tewlow describes the 
diaper of tomorrow this way: 
ye newsroom will be rather quiet — no clacking of type- 




writers and frantic scenes such as you often see today. Type- 
writers will be replaced by video display terminals (V.D.T.'s) 
with typewriter keyboards and 'light pens' connected on- 
line to the newspaper's central computer. Let's assume a 
reporter arrives at his office from a story assignment. First, 
he may go to a centrally located inquiry display screen sta- 
tion and type a request to the library for abstracts of stories 
appearing in the last 90 days pertaining to a Mr. Ed Jones, 
city controller, and to new business taxes. After viewing the 
abstracts of stories, the reporter requests a full print-out of 
two items. A 2,400-line-per-minute printer next to him be- 



21 



gins to hum, and in a few seconds the stories relating 
to his subject are electrostatically generated. 

"Returning to his desk, the reporter begins typing 
the story on his own typewriter display connected 
directly to the computer. As he types the story, it will 
be shunted by the computer to a secondary storage 
device, perhaps a disk file. Should he wish to read 
over any part or all of the story he has completed, he 
merely calls up or 'rolls back' the page, and it appears 
on the display screen in front of him, section by 
section. Should he desire to revise a particular sen- 
tence or paragraph, he merely deletes the unwanted 
material with a light pen and types in the new text. 

"While vanous reporters are typing their stories, 
editors in the 'bullpen' begin receiving a print-out 
list of completed 'takes' or stories in process from a 
printer in their area. Sitting in front of each editor is 
a typewriter display set on which the editor may call 
up copy stored in the computer. The copy is flashed 
on the screen in front of the editor, and he begins the 
process of revising the copy, using his electronic light 
pen and typing in changes, which then appear on the 
face of the screen. The story is processed through a 
hyphenation-justification routine and is stored tem- 
porarily on magnetic disks for page make-up. 

Several newspapers leading way 

"One of the most critical jobs on the newspaper 
is that of the wire editor, who must decide which of 
the millions of words a day generated by the Asso- 
ciated Press and United Press International are going 
to be offered to the newspaper reader. With similar 
electronic devices, he will be able to review and 
select stories with greater speed and efficacy. 

"Does that sound like 'blue sky'? Well, both Asso- 
ciated Press and United Press International editors in 
New York are starting to use V.D.T.'s to edit wire 
stories. And they're going to expand their systems to 
regional offices around the country in the next year." 

Tewlow cites several newspapers that are leading 
the way toward 21st-century production. "The Los 



Angeles T/mes-has video terminals as well as a satellite 
printing plant at Costa Mesa, about 35 miles from its 
main plant in downtown L.A. The Orange County 
edition of the Times is edited, laid out and printed in 
Costa Mesa by a staff of 450 people. It's all made 
possible by computerized copy preparation and high- 
speed data transmission between the two plants. 
Various electronic methods of production are being 
utilized or planned by newspapers in Worcester, 
Mass., Huntington, W. Va., Daytona Beach, Fla., Plain- 
field, N.J., Ithaca, N.Y., North Platte, Neb., Norwich, 
Conn., and Washington, D.C." 

Computer timesharing 

One of the keys to the newspaper of tomorrow 
will be the concept known as computer timesharing. 
Not only will all departments of a newspaper — in- 
cluding editorial, advertising, composing, circulation 
and business and accounting — share the same ma- 
chine, but other newspapers and their various depart- 
ments may share, also. "We have several situations 
in the United States today where two newspapers 
share the same press," Tewlow points out. "It isn't 
inconceivable, considering the monthly cost of hard- 
ware, software and peopleware, that newspapers will 
share computers with other newspapers or other 
businesses. You must keep in mind that because of 
the computer's incredibly fast capability, many people 
can use it at once with the feeling that they, alone, 
are communicating with it. And coded access systems 
can easily be incorporated into a computer to deny 
access to the opposition." 

Tewlow holds that newspapers will be in the soft- 
ware business— are now. "The newspaper business, for 
all its conservatism and tradition, has been for years 
one of the most progressive businesses in America. 
It has been utilizing some form or other of telecom- 
munications for more than a hundred years. And 
remember, the newspaper came up with assembly- 
line production long before Henry Ford opened his 
plant in Michigan. But now the industry is faced with 



22 



the necessity of pushing forward anew. No major im- 
provements have been made in the Linotype machine 
or facsimile devices since they were invented. The 
cost of getting into computers, V.D.T. equipment and 
high-speed data transmission is going to be enor- 
mous, not to mention the cost of new presses. You 
don't just junk several millions of dollars worth of 
presses because something new has come along. And 
when you do junk them, about the cheapest thing 
you can do with them is dig a hole as close to the 
plant as possible, drop the presses in and cover them 
over. Nobody wants them. But newspapers are going 
to have to consider the long-haul savings in electronic 
production, along with the new competitive position 
electronics will give them with regard to the broad- 
cast media." 

Tewiow sees improved distribution of the final 
product as half the battle. "Satellite printing plants 
such as the one operated by The Wall Street Journal 
are designed to beat the freeway jams and get the 




Prootreaders at the Daytona Beach, Fla., News-Journal make type 
corrections on video display terminals, one example ot how news- 
papers are adopting electronic methods of production. 



product to the reader faster. The next step will be to 
bypass the route truck, at least with part of the prod- 
uct, and shoot it into the home." 

Newspapers redefining purposes 

In mentioning localization of the news, Tewiow 
zeroes in on another problem of newspapers: 
"They're having to redefine their purposes for exist- 
ing," he says. "Radio and TV killed the extra edition. 
Also, while people are still vitally interested in na- 
tional and international news, they're mainly inter- 
ested in what's going on around their hometown and 
state — really, their neighborhood. Witness the suc- 
cess of the small suburban dailies and neighborhood 
weeklies. Magazines, on the other hand, are having 
a hard time. They've been trying to serve the general 
interest. Some have folded, and others are threatening 
to. But the newspaper has a unique capability that 
distinguishes it from other media — the capability of 
collecting, editing and disseminating information, in 
depth, on a time-critical basis. And it will continue 
to appeal to the general interest, because each reader 
can take advantage of the departmentalization of a 
daily paper, take what he wants and ignore the rest." 

On the subject of telecommunications support of 
newspapers, today and tomorrow, Tewiow is ambiv- 
alent."Europeans say we Americans are spoiled by the 
'Rolls-Royce' telecommunications service we get. I 
remember after a demonstration a few years ago of 
facsimile, in which page one of The Times of London 
was transmitted by satellite from London to San Juan, 
Puerto Rico, where the A.N.P.A. was meeting, we 
asked for one more demonstration transmission. 
AT&T, Comsat and all the other companies involved 
groaned, but the American carriers said they could 
do it in half an hour. When the British learned we 
wanted another shot, their post office people advised 
it would take an hour. But when we told them we 
were setting it up on our end in 30 minutes, they 
came back at us: 'Well, if the Yanks can do it in 30 
minutes, we can do it in 15.' 



23 



"In some ways Bell is superb. In others . . . well, 
they could stand improvement. We at the A.N.P.A. 
have observed a number of problems encountered 
by newspapers in getting telecommunications equip- 
ment needed for remote typesetting and related func- 
tions. Delays in shipping equipment and getting it 
installed have hamstrung too many newspapers, we 
feel. Sometimes the Bell company representative in 
charge of a newspaper's account doesn't alert the 
paper to the delay in time to at least plan for it and 
alleviate the problem somehow. There have been 
times when certain types of equipment that we felt 
should have been stockpiled by the Bell System were 
unavailable, and your people had to scramble around 
looking for it — and sometimes get it from other cus- 
tomers. One daily newspaper in the South was all 
ready to go last year with a computerized photocom- 
position system conversion program, when the tele- 
phone company suddenly said: 'The Dataspeed* 
equipment can't possibly be delivered on time.' Well, 
the rockets went up. It made no damned sense! 

"We have another problem. You don't tell us about 



Home communications centers, such as the one in the house at 
right, some day may receive late-breaking news and capsules and 
indexes of information from a master CATV antenna. Signals 
would be routed through a "head end" installation similar to a 
telephone switching office. Information received in the home 
would be stored automatically on video or data tapes, disks or 
cassettes. Each family member would constitute an "interest pro- 
file," as they do today. That is, one may want sports and national 
news and another, business or homemaking items. After review- 
ing what has been transmitted to them, they would call up the 
newspaper's computer file controller with a Touch-Tone* tele- 
phone and order the desired additional information. The com- 
puter would extract the information in seconds from supple- 
mental storage units and transmit it by video, facsimile or high- 
speed teletypewriter, through the "head end" facility and into 
the home over a broadband telecommunications link. Written 
and graphic data could be received over a Picturephone* set or 
TV equipped with additional channels. At the same time, it's 
likely the old-fashioned newspaper on the doorstep or newsstand 
will still be around for those who prefer to digest their news like 
they did in the good old days. 



NliWS INIORMATION SYSTEM 




24 




your new services. We had one newspaper publisher 
stand up at a meeting and tell us about a 'marvelous 
new service' he uses in his classified ad department, 
called INWATS. 'You know,' he said, 'I raised hell with 
the telephone company because they didn't come in 
18 months sooner and tell me about it. That delay 
may have cost me $100,000 in lost advertising based 
on my increased revenues since I put the service in.' 
And when we ask a telephone company salesman for 
literature on new equipment and services — have you 
ever read a Bell brochure? For-get it. It assumes that 
the reader is technically oriented, and there aren't a 
dozen newspapers in this country that have directors 
of communications, who know what's going on from 
a telecommunications standpoint. Laymen read this 
material, and it's too abstruse, too abstract." 

Super-industrialized society 

Tewlow also complained of the way Bell companies 
move their Marketing people about with a frequence 
that precludes them from getting to know their news- 
paper accounts and vice versa. "Most of your people 
don't know enough about the newspaper business, 
its objectives and its problems to provide it the kind 
of service it needs," he says. "And they had better 
start learning the newspaper business, because, while 
we're demanding Rolls-Royce-grade service today, 
we'll be demanding S.S.T.-grade service tomorrow. 
This will be forced upon us by the super-industrial- 
ized society that Alvin Toffler talks about in his book. 
Future Shock. Newsmen, 1 think, are well equipped 
to roll with the punch of future shock, because they 
deal daily with change — they report it, they stay in 
tune with it. This may be a young man's business, but 
I've seen a few older editors lead the way toward 
modern electronic processes. The newspaper industry 
is going to demand more of the Bell System, because 
it's going to be more dependent on telecommunica- 
tions to get its own job done. And the more depend- 
ent a newspaper gets, the more vulnerable it gets." 

In the super-industrialized society, Tewlow be- 



25 



' 



lieves, the newspaper will continue, despite techno- 
logical change and new formats, to be a chanticleer. 
"Most news is bad news," he says. "The newspaper 
probably will continue to inform, to provoke thought 
and perhaps to persuade — although its powers of 
persuasion may be debatable. Its power to provoke 
probably will increase through use of multimedia, 
and as long as it provokes positively, not negatively, 
it will be performing its proper function." 

Gene Gartner, division sales manager for the Long 
Lines Department of AT&T, has been working with 
the national news media — the wire services and 
some national publications — at AT&T since 1929. He 
is a 1927 graduate of the Columbia University School 
of Journalism, and Jules Tewlow calls him "the man 
who knows more about the news media from a tele- 
communications standpoint than possibly any other 
man in the United States." 

Says Gartner: "The Bell System needs more knowl- 
edgeable people contacting newspapers with less 
emphasis on the revenue those newspapers generate. 
We also need to consider development of equipment 
adaptable to newspapers, such as portable teletype- 
writers, which would help speed production." 

Wire service crises 

The interview with Gartner in his midtown Park 
Avenue office was interrupted by a crisis call involv- 
ing the A. P. After attending to that, he returned to his 
interviewer: "We should make available to the press 
some of the tremendous knowledge we have at the 
Bell Labs." 

The telephone interrupted again. This time it was 
a crisis involving U.P.I. That taken care of, Gartner 
continued. "Yes, we need to improve considerably 
in our service to the wire services, but one shouldn't 
overlook what all we've done for them, which is the 
other side of the coin. Some newsmen I deal with are 
mad at us for filing for an increase in their rates. That 
case is before the Circuit Court of Appeals in Wash- 
ington now, and it may go all the way to the Supreme 



Court. The longer it's in an appeal stage, the longer 
the rates will stay where they are. But consider this: 
We have a history of meeting press demands for fast, 
efficient service — clock-hour schedules on teletype- 
writer service. Low telephotograph rates. Specially 
arranged network setups that improve reliability for 
the wire services. Special arrangements to handle fast- 
breaking news stories that require special coverage. 

Long Distance rate reductions 

"Telephone rates in general, including rates to the 
press, have been reduced substantially over the past 
20 years. If in no other way, the press has benefited 
by the countless reductions in long distance rates 
because of its heavy use of these facilities. Now we're 
allowing wire services to use multiplexing equipment 
on voice-grade channels, where they can get 18 or 20 
teletypewriter channels on one circuit. We're letting 
the wire services jointly use service, as long as each 
user has station service on his premises — with some 
added charges. 

"The basis of our position in the press rate case is 
the belief that customers should pay like rates for 
like services. There are 28 telephotograph customers. 
Six of them enjoy lower rates than the 22 others. They 
all should pay the same rate for the same service." 

Gartner says that for most press users, the cost of 
telecommunications represents a small portion of 
their over-all operating expenses. "The per cent in- 
crease in their cost of doing business would be slight 
if AT&T's press rate increase is upheld," he says. "In 
engineering and constructing our network of basic 
facilities, we include facilities needed to serve the 
press along with those required for all others. There- 
fore, with respect to these aspects of our operations, 
no distinction can be made between the press and 
other customers. But, when we look at the services 
of which the press is a major user, such as private- 
line telegraph and telephotograph services, and when 
we look at voice-grade data service, we find there are 
identifiable characteristics introduced by the complex 



26 



nature of press operations. These characteristics in- 
dicate that press service is no less costly to provide 
than services to others. It probably is more costly." 
In an effort to assure good press service, AT&T's 
headquarters maintains a full-time specialist in its 
Marketing Department. His name is Joe Lullo, and 
he came to AT&T from Illinois Bell in Chicago, where 
he helped coordinate telecommunications support 
for the last Democratic National Convention, despite 
a telephone work stoppage. Lullo's job is to keep 
abreast of the newspaper industry's changing com- 
munications needs and make them known to the Bell 
System operating companies. He also attempts to 
keep the newspaper industry informed of communi- 
cations equipment and services available or under 
development and provides coordination and guid- 
ance to the telephone companies with respect to 
press and broadcast media service. He has a working 
knowledge of editorial, advertising, composing and 
press operations and is on a first-name basis with 
many editors around the country. He and Dr. John 
Pierce of the Bell Labs are the Bell System's represen- 
tatives on the American Press Telecommunications 
Committee, through which they have helped intro- 
duce many of the telecommunications techniques 
being adopted by newspapers in their production 
today. (The A.P.T.C. was a brainchild of Lullo's pre- 
decessor, Walter Swancey.) 

Conferences to help press 

"About 95 per cent of the responsibility for serving 
newspapers lies with the Bell operating companies," 
says Lullo. "We at AT&T have tried to supplement 
their function through such means as presenting ex- 
hibits around the country to demonstrate how news- 
papers can better utilize telecommunications. We've 
put on such shows for the A.N.P.A. and the National 
Newspaper Association (N.N.A. — composed princi- 
pally of weekly newspapers). Right now we're pre- 
paring to go to the Bell companies with a working 
conference designed to identify and help solve prob- 



lems relating to telecommunications service to the 
news media — both print and broadcast. We expect 
this conference to result in strenghtened relationships 
between our Marketing and Sales people and the 
news media toward the end of better understanding 
the media and their problems and providing better 
service to them more quickly." 

IWo natural allies 

Lullo and Gartner agree on the need for more 
knowledgeable Bell people to coordinate with news- 
papers. "On the local exchange side," says Lullo, "I 
think there are certain telecommunications instru- 
mentalities that could be developed to help the news- 
man to do his job, like certain telephone transfer 
features. In the long run, we should work more 
closely with the news industry, confer with the plan- 
ning people on each paper or broadcast station, be- 
cause they're not all going to plan the same thing." 

"One of the really helpful services we have today 
is WATS — and IN WATS — which can be a boon to 
most newspapers in their editorial and classified ad- 
vertising operations. We need to make these and 
other services better known to the industry." 

Lullo spends perhaps a third of his time trouble- 
shooting press telecommunications problems. When 
a paper can't get what it wants locally, its editor or 
business manager calls the A.N.P.A., the N.N.A. or 
Lullo direct in New York. Like Gartner, his ringing 
telephone often signals a crisis, which could be hang- 
ing in Detroit, Los Angeles or Chicago. 

AT&T, its Long Lines Department, the Teletype 
Corporation and the associated companies are attack- 
ing the problem of improving service to the news 
media. They have to. As the 21st century begins to 
collide with us, generating ever more psychic shock, 
two natural allies appear in focus: the mass communi- 
cators and the telecommunicators. Each will depend 
to some degree on the other for survival, while society 
will depend on both for intelligent movement and 
use of information.— Marco Gilliam Q 



27 







# 



(^- 



\- 




rs% 














s 

I 




Psychologists and Technologists— 
A New and Promising Partnership 



Through the years, this business has 
earned a reputation as the best of the 
best in the physical and managerial 
sciences. Now, imaginative and practical 
new applications of behavioral science 
benefit Bell people, the technology 
they lead and the service they provide. 



No doubt, back in the 1920's when the first business- 
man added a psychologist to his planning staff, he 
was considered as one in need of a psychiatrist, in- 
stead. Few people then could see how these seem- 
ingly "odd bail" professionals could help business 
operate more efficiently or increase productivity. 
Thinking is different today. Psychologists have won 
widespread acceptance in industry, and nowhere 
more so than in the Bell System, the leading indus- 
trial employer of psychologists. 

This is true whether one uses the strictest definition 
of psychologist— a person holding a Ph.D. in the field, 
membership in the American Psychological Associa- 
tion, and professional experience; or a looser rule of 
thumb — anyone with a college major in the subject. 
About 50 Bell System psychologists meet the more 
rigid requirements. 

Speaking solely of psychologists at Bell Labora- 
tories, Dr. John E. Karlin, head of the Human Factors 
Research Department, says their employment alone 
represents the "greatest commitment in private in- 
dustry to hiring psychologists for commercial en- 
gineering research and development work. Other 
organizations have hired psychologists in large num- 
bers for defense work, but that, of course, is paid for 
by the Federal government," he says. 

As evidence that they have long passed the days 
when their shaky alliance with business rested upon 
proving that they were not all that different from 



other corporate contributors. Bell System psycholo- 
gists note that one member of their profession has 
been named vice president of an operating company, 
and one an assistant vice president. Both H. Weston 
Clarke Jr., vice president. Bell of Pennsylvania, and 
John J. Hopkins, assistant vice president. South Cen- 
tral Bell, are psychologists. 

Here are some of the functions psychologists are 
performing in the Bell System today. 

Selection tests: They have been used in the Bell Sys- 
tem in some form since the 1930's, but their use has 
been refined since the late 1950's, when more psy- 
chologists were hired full time. The tests are mainly 
aimed at determining whether a person can learn to 
do a job. The philosophy behind them is that a prop- 
erly conducted testing program results in hiring peo- 
ple of greater ability, more efficient placement and 
more sophisticated manpower planning. Recently, 
most of the work of AT&T's Dr. Donald Grant, Per- 
sonnel Manager-Research, and his assistant, Dr. Syd- 
ney Gael, has been devoted to assuring that Bell 
System tests meet nondiscriminatory guidelines estab- 
lished under the Civil Rights Act of 1964 and by the 
Office of Federal Contract Compliance. Grant and 
Gael coordinate employment test research in the 
operating companies. They have made studies of 
tests for plant craftsmen and service representatives, 
and tests for operators and clerical personnel are 
now being studied. 

Management selection and promotion: In an effort 
to learn more about the characteristics and develop- 
rnent of young businessmen as they become, or try 
to become, middle and upper managers of a large 
concern, the Bell System initiated a Management 
Progress Study in 1956, under direction of Dr. Doug- 
las W. Bray. Four hundred and twenty-two men from 
six operating companies were involved in the study. 
Two-thirds of them had started as new college grad- 
uates, and the remainder were men who began their 
careers as vocational employees and quickly ad- 



29 



vanced to lower management positions. All were 
deemed middle-management potential. 

Each man went through an assessment center de- 
signed to discover abilities, aptitudes, motivational 
and personality characteristics, attitudes and inter- 
personal competence. Although the Management 
Progress Study was instituted as a long-range pro- 
gram, it produced some short-range results. Among 
its effects were changes in college recruiting stand- 
ards and methods, and in the handling of college 
recruits during their first years in the System. 

In 1958, at the request of Michigan Bell for help 
in the selection of supervisors, the first permanent 
assessment center was established. Since then thou- 
sands of Bell System employees have gone through 
such centers. Psychologists within and outside the 
Bell System hail the centers as one of the highest 
achievements in the state of the art. 

Human factors research: Nothing projects the image 
of the psychologist as a Dr. Strangelove more quickly 
than mention of human factors engineering. Con- 
jured up is the image of man enamored of his ma- 
chine. But the Human Factors Engineering Depart- 
ment at Bell Laboratories does not seem so intent 
upon making one love his machine, as tolerate it. 

"We work in the crack between man and machine," 
says John Karlin. "Fundamentally, we study man's 
communication abilities, limitationsand preferences." 

In layman's terms, this means the Human Factors 
Engineering Department assists in developing prin- 
ciples for design of communication equipment, 
studies man's ability to use them, and determines why 
he prefers to communicate in one form rather than 
another. Proposed systems and services are simu- 
lated by the group to test reaction to them. 

Voice and data transmission: Dr. Richard Hatch, an 
engineer who heads Bell Labs' Voice and Data Trans- 
mission Department, is assisted by two psychologists. 
Their mission is to keep a constant check on quality 



of the entire network. Since 1962, they have been 
setting systemwide transmission objectives. Because 
a network totally free of impairment would be too 
costly, the voice transmission section determines the 
optimum point where cost of improvements and 
user satisfaction coincide. The section also sets de- 
sign, manufacturing and maintenance criteria. AT&T 
incorporates the maintenance objectives in practices 
for craftsmen. 

Behavioral Statistical Research Center: Currently di- 
rected by Dr. Max Mathews, the Center began as the 
Communications Social Science Research Laboratory 
in 1955 and, since 1963, has concentrated on mental 
and visual research. Under leadership of Bell Labs' 
Dr. Oliver Holt, it was here that programmed instruc- 
tion was shaped into a powerful training tool in the 
Bell System. 

The Center is now studying man's ability to absorb, 
store and retrieve information, attempting to provide 
better tools for analyzing data, investigating psycho- 
linguistics and probing the human memory. 

Office of Training Research: The first Office was set 
up by AT&T in 1962 to utilize principles of pro- 
grammed instruction developed at Bell Laboratories 
and elsewhere. Bell System psychologists boast that 
the System also was among the first in industry to 
include task analysis — determining the job to be 
done — as an integral step in developing training pro- 
grams. This has allowed the System to develop train- 
ing programs that set work performance standards for 
both trainee and instructor, eliminating irrelevant 
instruction. 

A training research group now headed by Dr. Harry 
Shoemaker at AT&T assists all departments in de- 
veloping training packages, improving their manage- 
rial procedures and designing jobs. 

The training of traffic operators, however, is a full- 
time job directed by AT&T's Dr. Richard O. Peterson, 
the only psychologist assigned to an operating de- 



30 



partment. Peterson's group constantly updates train- 
ing programs and redesigns traffic jobs as new 
technology is developed. They attempt to keep the 
operator's job challenging by incorporating duties 
the machine cannot perform. 

Business Information Systems: This program, directed 
by Dr. Oliver Holt, has the largest contingent of Bell 
System psychologists — 40 of the 65 members of Bell 
Labs' Human Performance Technology Center. 
Whereas the Human Factors Engineering Department 
"v^orks in the crack between man and machine," the 
performance center is concerned with performance 
of people who use machines, especially computers. 
The center assists B.I.S.P. design groups in develop- 
ing "personnel subsystems" or the activities of people 
who are a part of computer-based information sys- 
tems. The assistance takes three forms — practices and 
standards for developing personnel subsystems, train- 
ing in design and skills needed to develop personnel 
subsystems, and technical direction and support 
through hands-on assistance from qualified special- 
ists. The Systems Training Department in the center 
also provides all B.I.S.P. training for computer sub- 
systems development. 

Management resources development: This Western 
Electric organization, under Dr. Paul Patinka, handles 
everything from training of ghetto youth in Newark, 
N.J., for entry-level jobs, to maintaining an inventory 
on top managerial potential. The resources division 
is developing training programs, experimenting with 
job enrichment and an assessment center and per- 
forming manpower forecasting. It also administers 
college and supervisory development programs — a 
high-risk-high-reward program for college graduates 
and second level employees. 

Interpersonal relations: Almost nothing angers Bell 
System psychologists more than being called 
"shrinks." Perhaps the only Bell System psychologist 



the term might be alleged to fit is Walter Smith, group 
supervisor for management development at Bell Lab- 
oratories, Murray Hill. Smith is on extended leave at 
the University of Arizona, obtaining a Ph.D. in psy- 
chological counseling. As part of the Administrative 
Appraisal and Placement and Development Section 
at Bell Labs, Smith and his group attempt to develop 
what they call the "interpersonal competence" of 
Bell Labs managers. The group develops seminars on 
human relations communication (Talking with Peo- 
ple), managerial accountability (supervisory respon- 
sibilities) and administrative and urban minorities 
workshops. 

The human relations and urban minorities work- 
shops resemble the average person's image of the 
work of psychologists. In the latter program. Smith 
says the laboratory attempts to change behavior pat- 
terns and claims some success. But Smith doesn't 
attribute his success to any "tricks" of the behavioral 
scientist. Behavior patterns are changing, Smith says, 
because his group is convincing participants that the 
weight of the institution is behind the practices and 
procedures they teach. 

Management Sciences: The section employs two psy- 
chologists who have among their assignments the 
task of ensuring that the human element is considered 
in long-range corporate planning. Among their con- 
cerns are such areas as labor force, the future econo- 
my and changing values about work and life-styles. 

The work described in the foregoing examples ob- 
viously represents a more refined use of the psy- 
chologist in industry than during earlier times when 
business hired him mainly to handle problems of ef- 
ficiency resulting from boredom and worker fatigue, 
or, immediately after World War II, when employee 
selection captured attention. 

Things also are far improved from the days when 
psychologists felt compelled to hide their doctorate 
degrees. But as well received as psychologists are in 
the business world today, some do not think their 



31 



role is always properly understood or their contribu- 
tions the best they could make. They do not blame 
industry for lack of support but cite members of their 
own profession whom they say have not always been 
honest in explaining what psychologists can do. 

The result is that stereotypes still linger, they say, 
and psychologists who want to do things outside the 
popular concept of their role find themselves treated 
cautiously or ignored. 

"The biggest problem is the application of results," 
says Paul Patinka. "I think we know a lot more than 
we can possibly use. 

"It's the line managers. They want us to simplify 
things. They want something they can get an easy 
handle on, or they will reject it. It's very difficult to be 
a professional where everyone is an expert," he says. 

Dr. William Fox, manager of the Personnel Sub- 
systems Department, B.I.S.P., says the problem lies 
with the "eminent Dr. Everyman, who has become 
an expert on behavior through behaving and observ- 
ing others behave, especially his children." Dr. Every- 
man deals with psychological problems on a super- 
ficial level, says Fox. 

Fox says the nonprofessional's fixation with "frills" 
has led to efforts of questionable value such as sensi- 
tivity training and attempts to change racial attitudes 
through role playing. "Having black people put on 
white masks and white people put on black masks 
has considerable face validity, but its true effective- 
ness is uncertain at best," says Fox. 

All psychologists don't share these views. Donald 
Grant thinks many industries and especially the Bell 
System are making exceptional use of the psychol- 
ogist's professional expertise and at the same time are 
providing excellent support. 

Grant says that the work of Bell System psycholo- 
gists, and the psychologists, themselves, are highly 
regarded outside the company. He notes that 
Douglas Bray, Personnel Research director, is pres- 
ident-elect of the Division of Industrial and Organi- 
zational Psychology of the American Psychological 
Association. Grant is secretary-treasurer. 



Fox and Oliver Holt note that psychologists, them- 
selves, haven't always applied a relevancy test to their 
own work. They cite their activities in B.I.S.P. as an 
example of what can be accomplished when psychol- 
ogists are fully accepted and "Dr. Everyman's influ- 
ence is at low ebb." Max V. Mathews, the engineer 
who heads the Behavioral and Statistical Research 
Center at the Bell Labs, supports that position. 

"There is no shortage of behavioral problems in the 
world or the Bell System," he says. "In fact these are 
the most difficult problems we face. What is not clear, 
though," Mathews continues, "is whether psychology 
has developed significantly enough to have an impact 
upon these problems. We think it does have a definite 
impact upon certain areas, and these are the ones in 
which we are working." 

Functioning in the area of interpersonal relations, 
Walter Smith also thinks he must do what is practical. 
"These are scientific minds I am dealing with here," 
says Smith. "You can't hand them any psychological 
mumbo jumbo. These are the type of people who, if 
their wives say / love you, ask: 'How do you know 
that? To what depth? What scientific evidence do 
you have to support that contention?'" 

About $6 billion spent nationwide in behavioral 
and social science research during the past 10 years 
has yielded much information that is waiting to be 
used, says Fox. "We cannot afford to ignore this body 
of knowledge. Behavioral science, not just psychol- 
ogy," Fox says, "must be placed on a developmental 
product-oriented basis, charged with producing im- 
plementable programs, packages and plans measured 
solely on their benefit to the system." 

Fox points out that the Bell System is in a "people 
crisis." "The turnover rate is increasing, more sophis- 
ticated technology is being introduced every day, and 
more people are pushing from every side to do more 
social things," he says. "The System must find better 
ways to use the talents of its professionals. The Bell 
System has led in taking advantage of knowledge in 
the physical sciences. There is no reason it should not 
lead now in the use of the behavioral sciences." D 



32 



The Nonyouth Bag 

(continued from inside tront cover) 

with leading the Allied forces to vic- 
tory in World War II — a critical na- 
tional necessity for Americans at the 
time, no matter what one's age, posi- 
tion or politics — gives further clout to 
the nonyouth case. When Winston 
Churchill gave his epic "We shall fight 
on the beaches . . ." speech to the 
House of Commons during Britain's 
blackest hour in 1940, he was 66. 
In 1944, when the Allies had turned 
the struggle around in Europe and in 
the Pacific, Admiral Mountbatten was 
44, General Bradley was 51, Generals 
DeGaulle and Eisenhower were 54, 
Field Marshal Montgomery was 57, 
General Patton and Admiral Nimitz 
were 59. General MacArthur was 54. 
As in business, political and military 
leadership, the loftiest names in medi- 
cine and physiology, starting with Hip- 
pocrates, have been those whose un- 
common abilities and determination 
were nurtured by experience. 

Nobel prize winners 

Dr. Jonas Salk was 40 when he intro- 
duced the first hypodermic vaccine for 
poliomyelitis in 1954. Dr. Christian 
Barnard was 45 when he performed 
the first surgical transplant of a human 
heart in 1967. Alexander Fleming was 
47 when he discovered penicillin in 
1928. Louis Pasteur discovered meth- 
ods for inoculation and vaccination 
against anthrax, rabies and chicken 
cholera between 1880 and 1885, when 
he was 58 to 63 years old. The three 
scientists who shared the Nobel Prize 
for medicine last year were 58, 59 and 
65. Nobel Prizes for Peace, Literature, 
Physics, Chemistry and Economic Sci- 
ence went to men whose average age 
was 57. 

In athletics, the man bites dog 
maxim takes a somewhat different 
twist. The older the performer, the 



more newsworthy his performance. 
Such examples as golf's Arnie Palmer, 
Pancho Gonzalez of tennis and pro 
football hero George Blanda, all past 
40, further illustrate that nonyouth is 
not sitting around on its duff waiting 
for rigor mortis. John Unitas of the 
Baltimore Colts, no slouch even to un- 
der-30 sports buffs, is 38. And it should 
warm the cockles of many a middle- 
aged heart to know that the world's 
longest tightrope walk was accom- 
plished last year by 65-year-old Karl 
Wallenda. He walked 821 feet over a 
rocky, 750-foot gorge with no net be- 
neath him. He took 20 minutes. On 
the way, as a sort of added fillip for 
onlookers, Mr. Wallenda did a couple 
of headstands. 

Sixty-year-old champion 

There are countless other examples 
of nonyouth athletic expertise. Jersey 
Joe Walcott won the heavyweight box- 
ing title in 1951 when he was 37. Pierre 
Etchbaster reigned for 27 years as the 
world amateur tennis champ, retiring 
in 1955 at age 60. A few years ago, C. 
Arthur Thompson of British Columbia 



shot a 96 in golf when he was 97. 

Whatever the endeavor, nonyouth 
has done its share through the ages, 
and then some. Mankind's newest and 
boldest venture, space exploration, is 
a continuing case in point. Alan B. 
Shephard Jr., who led the most recent 
Apollo team to the moon and hit a 
golf ball on it, is 47. John Glenn, the 
first American to make an orbital 
flight, was 41 when he made it in 1962. 
Neil Armstrong, the first man on the 
moon, was 39 when he stepped down 
from the Lunar Excursion Module 
£ag/e onto the Sea of Tranquility in 
1969. Edwin Aldrin, who followed 
him, was also 39 — about the same age 
as Shockley and Bardeen when they 
and Brattain invented the transistor 
and transformed the electronics age. 
Such men, and thousands of men and 
women of that age and older in this 
nation and in this business, are the 
ones Mr. Lilley meant by "the back- 
bone of the organization." 

The nation and the business depend 
on youth with its idealism and energy. 
But certainly no more than on those 
who have been through the fire. D 



BELL 

telephone magazine 



VOLUME 50 NUMBER 3 



MAY/JUNE 1971 



H. I. Romnes, Chairman of the Board and President 
John D. deButts, Vice Chairman 
Robert W. Ehrlich, Secretary 
John J. Scanlon, Treasurer 



Tim Henney, Editor 

Al Catalano, Art Director 

Donald R. Woodford, Managing Editor 

Robert A. Feinstein, Associate Editor 

Marco Gilliam, Associate Editor 



@ 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212-393-8255 



@AT&T 



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Please include the mailing label from this issue. 



001600605681 013313159999 

LIBRARIAN PERIODICAL OEPT 
KANSAS CITY PUB LIBRARY 



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Printed in U.S.A. 



Knowledge Worker, page 1 
Society and Balance Sheet, page 6 
Special People, page 9 
Side by Side, page 36 



.:,M^ 



mi 



September/October 1971 

BELL 

telephone magazine 




The Spirit 

of the Cobbler 

"The high prize of life, the crowning 
fortune of man, is to be born with a 
bias to some pursuit, which finds him 
in employment and happiness." 

—Ralph Waldo Emerson 

In a small building on the main street 
in the town of Mountainview, in the 
Pocono Mountains of Pennsylvania, is 
a man who makes and sells shoes. He 
wears a leather apron, his sleeves are 
rolled up over his elbows, and his 
working quarters are a mess. He is well 
known in the town, for he is an elderly 
gentleman and he has been there a 
long time, making boots and shoes. 
The demand for his product is strong, 
both from residents of the communi- 
ties thereabouts and from tourists from 
Philadelphia and New York and other 
large centers who visit the nearby win- 
ter and summer resorts. 

The shoemaker has been trying for 
more than a year to hire a suitable 
helper, a man he can train to take over 
the business, a man to be his own boss, 
a man to put in the exhausting hours 
and shoulder the responsibilities such 
a vocation requires. But no one wants 
the job. 

It is not surprising that the shoe- 
maker cannot attract an apprentice. He 
offers no company-supported savings, 
health and insurance plans, no pen- 
sion, no vacation arrangements that 
automatically expand with an em- 
ployee's additional years in the busi- 
ness, no potential for an impressive 
salary or administrative authority. 
What the cobbler offers is long hours, 
hard work and the opportunity to feel 
indispensable. It is hardly the stuff of 
which public status is made. It is not 
at all the objective of the vaunted fac- 
ulties who prepare the nation's youth 




in the engineering, business and lib- 
eral arts schools. 

While it is fact that countless aero- 
space scientists, stockbrokers and ad- 



vertising executives are without work 
these days as the shoemaker labors 
mightily to meet the steady demand 
for his carefully fashioned product, 
that is not the paradox — interesting 
though it may be — with which this 
article is concerned. The thought that 
occurred to a visitor to the cobbler's 
untidy but bustling premises was that 
cottage industry, for all its quaintness 
and flaws, has something important to 
say to big business about individual 
indispensability in this age of task force 
technology, multilayered management 
and diluted accountability. 

In the opening pages of this maga- 
zine, Peter Drucker discusses some of 
the people problems inherent in the 
shift from manual to knowledge work- 
ers in the U.S. labor force. Yet, this 
same blue-to-white-collar transition, 
the present phase of the more pro- 
tracted evolvement of cottage industry 
into a technology-based economy, 
poses threats to corporate organiza- 
tions quite apart from the personal 
needs — such as second careers — of 
knowledge workers themselves. Fore- 
most among such threats is the lack of 
individual importance that too many 
people in big business and big govern- 
ment seem to feel, as compared, for 
example, with the total-involvement 
ethos that marks employees of very 
small businesses. While feeling half- 
used is unhealthy for any man, when 
this feeling is compounded many 
times within an organization, it has a 
dangerously debilitating effect on the 
large enterprise as an entity. 

An earmark of a well-run organiza- 
tion, of course, is depth and versatility 
of personnel to such degree that peo- 
ple can be reassigned or lost to retire- 
ment or competition without the en- 
terprise losing so much as a beat. There 
is a personal, psychological by-product 
to such organizational capability, 

(continued on inside bac/c cover) 



Managing and Measuring 

The 
jjew 

Knowledge 

wofker 

f T bu Peter Drucker 



In considering factors in the business environment 
today that affect not only the telephone industry 
but all business, one may logically start with pro- 
ductivity. This is an areaof the economy which, 15 
years ago, most of us thought we understood and 
were working with effectively. Not so today. We no 
longer can assume that we understand productivity 
and know how to improve it. 
There has been a tremendous shift in our work 



A native of Vienna, Peter F. Drucker is a noted management con- 
sultant, economist and teacher. A former professor of ptiilosoptiy 
and politics at Bennington College in Vermont, since 1950 /le has 
been Professor of Management at New York University's Graduate 
Sctiool of Business, l-lis books include The New Society, Land- 
marks of Tomorrow and The Age of Discontinuity. This article is 
drawn from a talk he gave to an AT&T management group. 



force: Fifteen years ago manual workers were the 
central productive factor in this society. Today in our 
society, and increasingly in all developed societies, 
the central cost factor — which is not quite the same 
thing as the central productive factor — consists of 
knowledge workers. These people do not work with 
their hands, do not use brawn or manual skills. They 
use concepts and theories. In that sense, file clerks 
and computer programmers are knowledge workers. 
So society's center of gravity has been shifting 
toward knowledge work, but we don't know how to 
make knowledge work productive. At least, we don't 
know how to measure its productivity. We made 
manual work measurable at about the turn of the 
century. It was only after we had learned that manual 



productivity is not a matter of working harder and of 
sweating more, but of working smarter and of making 
manual work manageable through managing it, that 
we could see the possibility of improving productiv- 
ity. We achieved that competence when we realized 
that productivity is the design of the job and not the 
sweat of the workingman's brow. 

We haven't yet reached that stage in knowledge 
work. All we know today is productivity of knowledge 
work is vastly different from that of manual work. 

Making the institution innovative 

Productivity is the central problem of economic 
policy, and I think it will be in all developed coun- 
tries for the next 15 years. One of the things about 
productivity which makes it a problem lies essen- 
tially in the fact that the knowledge worker is becom- 
ing the cost center of our whole economy. Education, 
for example, is becoming the major social expense 
in every country, far ahead of defense, far ahead of 
health care, far ahead of housing. 

Yet, even with a shift from measurable manual 
productivity to a nonmeasurable knowledge-based 
productivity, we do have to increase the profitability 
of our economy, for two reasons. 

First, we suddenly have a major new demand that 
will greatly increase the cost of production: the de- 
mand to protect and restore our environment. The 
need is great, but the danger is also great, and there 
are many people who toss environmental needs 
around without thinking. The time has come to think 
them through: In what areas can we achieve results? 
How much are we willing to spend? What is the pay- 
off level? The cost structure of our economy will go 
up very rapidly, and there just isn't any way to pay 
for it, except by higher prices or higher productivity. 

Secondly, we need business profits. The profits 
reported the last five years are an illusion. Business 
has been running at a dead loss the last five or six 
years, because of inflation. If business adjusts depre- 
ciation charges fully to inflation — in other words, if 



it maintains the physical plant — it has no profits. 

And we do need more profit, because the number 
of people entering the labor force in the next few 
years is going to be significantly larger than it's been 
in the last 15 years. The babies born in the big baby 
years, from 1947 until 1957, are the ones who will 
enter the labor force. We will have to create jobs for 
three to four hundred thousand young people each 
year. And a job in the American economy requires a 
10- to 20-thousand-dollar capital investment. 

We don't know any answers yet, if only because we 
can't really define productivity of knowledge work. 
But productivity is the first requirement, and it's going 
to be increasingly the challenge to the younger peo- 
ple in the world's business community. 

If productivity is the first problem area of economic 
policy now and for the next 15 years, the second 
problem area is that of learning to make the large 
institution innovative. During the last 70 years we 
have spent a lot of time and thought on learning a 
little about managing large institutions, which at least 
is an objective we could already define. 

Technology travels more slowly 

About 60 years ago, for example, nobody had ever 
tried to do what the builders of the Bell System and 
other industrial giants then started to do: namely, 
manage large and complex human organizations. 
That was, indeed, something new under the sun. 
Armies, the oldest complex organizations, were al- 
ways very shortlived. After a campaign the army was 
disbanded or went back to where it came from. Other 
than for armies, there was really no need for large 
organizations, and certainly not for organizations 
which brought together many people of different 
knowledges and skills for joint performance. 

The large, complex organization is a creature of 
this century. We had to learn how to run it. Perhaps 
we don't do a perfect job even today, but at least it 
doesn't fall to pieces every five seconds. 

Now we face a period of exploding technology. 



Fifteen years ago the telephone looked like a very 
secure monopoly. It is by no means that secure today. 
Technologies are exploding in unexpected ways; we 
now face a period much akin to the last third of the 
19th century, in which a new major invention, cre- 
ating overnight new major industries, appeared, on 
the average, every 17 months. 

I do not, however, believe that technology travels 
quite that rapidly these days. It is demonstrably 
slower than it used to be. The one significant advance 
of the Middle Ages in health care was the develop- 
ment of spectacles. Friar Roger Bacon, in the wilds 
of Yorkshire, made his experiments in 1282, and by 
1285 glasses were common both at the Papal Court 
in the south of France and at the Court of the Sultan 
in Cairo. Three months after Edison had finished in 
Menio Park, Edison light systems were installed in 
London. Three months after Alexander Graham Bell 
had filed his patent, the English Bell Telephone Com- 
pany sold telephones in London. Few technologies 
travel that fast today. Information, on the other hand, 
is diffused much faster now. 

One of the few exceptions 

The significant change is that today's innovation 
may not originate within the large enterprise, but will 
have to be developed and marketed there, because 
that's where the two necessary ingredients for devel- 
opment and marketing are: money and people. It is 
in development that the money is needed, not for 
innovation. And people are needed for development 
and marketing — trained, skilled, professional people. 
Today such people are found mostly in large organi- 
zations — in the knowledge organizations. 

The large, developed business will have to learn 
to be innovative, which it has rarely been. One of the 
few exceptions can be found in the Bell System. That 
organization set out many years ago to make it pos- 
sible for a very large enterprise to build a uniform 
system over a continent. To this day it is essentially 
unique. Nobody has imitated the Bell System in its 



basic thinking. But, generally, large institutions are 
not innovative. They can modify, but they cannot 
innovate. They can do a little better than what is 
already being done, but they cannot easily do the 
radically new, if only because almost everything that's 
new looks so small. 

If an enterprise runs several operating divisions of 
50 million or 100 million dollars each, it has enough 
work to do. One thing one learns about operating is 
that there's always a crisis, and it always has to be 
taken care of "yesterday." And so one doesn't usu- 
ally put one's best men on the new — on the things 
that are only important rather than urgent. 

I think the Bell System with its Bell Laboratories, 
taught a basic organization lesson: Corporate inno- 
vation requires a separate innovative organization, 
which must be integrated into operations. This is 
not easy. Even Bell Labs was not an instantaneous 
success. It succeeded because top executives believed 
in it and worked at it. 

Let's look again at the knowledge worker whom 
we will have to manage and whose productivity we 
must learn to measure. The knowledge worker will 
have to be productive and, at the same time, achiev- 
ing. By the nature of his talents, he is not satisfied 
merely to earn a living. If he becomes satisfied, he 
soon ceases to be productive. Knowledge is a peculiar 
resource. If it does not improve and grow, it deteri- 
orates quickly. It cannot be stored. What can be 
stored is information. And most of what the world 
thinks of as information is simply raw data. 

Knowledge should be productive 

Knowledge has to be improved, challenged and 
increased constantly, or it vanishes. The knowledge 
worker, therefore, is right in not being satisfied with 
just a living and a career. Incidentally, in that sense 
there has been a profound change, a change which 
I happen to approve of in our society. 

The knowledge worker is a different kind of worker, 
not only in what he brings to his work but in his 



expectations. He is right, because he expects knowl- 
edge to be productive. We will have the challenge 
of making the knowledge worker productive and 
achieving. I believe that Bell System people have 
made large strides in job enrichment, especially for 
manual and clerical employees. 

But what is business doing today that is compara- 
ble for its managerial, professional and technical 
people? I don't know. And yet that's where the need 
is greatest. That's where jobs today for the young 
people are most tightly confined and defined, are 
least challenging and do not permit learning. 

Two most important truths young people have to 
learn that we don't allow them to learn: First, to get 
the sense of achievement by doing something they 
think they aren't really capable of doing. Anybody 
who has ever done this seldom loses that thrill. It is 
the only motivation for knowledge people. 

Secondly, one also has to learn what one cannot 
do. One has to fail. One has to crawl back with one's 
tail between one's legs and say: "I can't do it. This 
is beyond my capacity." Again, one has to know what 
one can do, because what has been done once can 
be done again. If our young people don't have those 
twin experiences, they haven't learned anything. 

We're depriving our young knowledge people of 
the learning experience. We're making it impossible 
for them to achieve, and we're making it impossible 
for them to fail. We are looking at yesterday's assem- 
bly line worker and transferring practices appropri- 
ate then to the young knowledge worker now — and 
such practices simply do not fit. It is leading to a 
demoralized knowledge force. 

A need for a second career 

We will also have to accept the fact that in most 
knowledge work a man needs a second career after 
20 years. The great demographic achievement of this 
century is not the extension of life span, but the ex- 
tension of working life span. Two generations ago 
most people went to work at age 12 or 14, but they 



had a working life expectancy of not more than 20 
to 25 years, particularly on the farm. By their late 30's, 
people were disabled by accident or arthritis and 
were tired and worn out. 

The ditch diggers who were hired a little earlier to 
build the transcontinental railroads had an average 
working life of 18 months. After that time, they were 
gone, finished off by syphilis or work or accidents or 
drink. Nobody expected them to last longer. 

If one looks at the earliest pension plans, such as 
those for civil service, it is clear that not a single one 
was designed for the retiring employee. They were 
established to look after the widow and children. The 
oldest plan happens to be of Austrian origin, dating 
from 1803, which provided no pension for the em- 
ployee. If he lived to 65, and retired because the 
emperor accepted his petition to do so, the emperor 
would then consider a pension — a case which rarely 
arose. But there was a vested annuity for widows and 
children, right from the start, and that provision re- 
mained unchanged until Hitler went into Austria. 

Working life is too long 

People didn't always die early, but they commonly 
grew unable to work. Today we expect most people 
to retire at 65, physically and mentally in working 
order, capable still of doing most kinds of work. 
That's a tremendous change. We have responded to 
the change by keeping people in school much longer; 
not because we need education or because they're 
necessarily learning anything. We keep them there 
because we don't want them in the labor force: Their 
working life would be too long. 

Even the 45 working years of the average knowl- 
edge worker today is probably too long. But the 
longevity of knowledge work is perplexing. Manual 
workers retire and move to Florida, where they are 
perfectly happy not to do anything. Manual work 
tires, and years of rest are welcome. Conversely, 
knowledge work exhilarates and excites. The knowl- 
edge worker gets into the habit of working, and he 



doesn't want to quit, even though by age 45 most 
knowledge workers have lost their zest. This isn't true 
of the few who get to the top and of the few who 
really excel, but it is true of 90 per cent. The condition 
is less pronounced in business, because business has 
the greatest job mobility of all major institutions. 
People can move from one company to another, and 
frequently do. Still, in knowledge work the good 
market researcher who at age 29 was enormously 
excited about the toy market knows all about the 
toy market by the time he's 45 and is really not very 
excited about it any more. 

So we will have to work very hard at systematically 
finding second careers for knowledge workers. I have 
in the last ten years personally placed some 200 ex- 
military officers. Before coming to my office, some- 
body had told them they needed Ph.D's. They were 
convinced they couldn't otherwise get a job. They 
were far more convinced than their civilian counter- 
parts because they had lived an isolated life and did 
not consider themselves fit for civilian work. The fact 
is, if a man has been an accountant at a naval base, 
it isn't that different from being an accountant in 
some other place. But retired military people don't 
know that, and they feel defeated before they start 
a second career. 

I have had to talk them into being willing to be 
placed, and to disabuse them of the notion that Ph.D, 
degrees were prerequisite to success. I placed all of 
them in such positions as business managers of law 
firms, accounting firms and small colleges. They're 
happy people. They have come to life again. They 
weren't burned out at all; they were just tired. 

Special purpose institutions 

Provision for second careers is going to constitute 
major social change, because our institutions are 
totally unprepared for it. We will have to learn that 
what used to be considered the professions are es- 
sentially careers for older workers, if only because 
in a profession where a man is on his own, experience 



and judgment are far more important than knowl- 
edge. We have to come to look upon these profes- 
sions as essentially opportunities for the knowledge 
worker to have a second career. But we will also have 
to learn to use this need and this opportunity for in- 
creased mobility among institutions. 

The young know that our society has become one 
in which every social task is carried out in and 
through a special purpose institution that is highly 
organized: the hospital, the university, the armed 
services, government, business, labor unions, research 
labs and so on. Youths see an institutionalized world, 
and they are right. But their most radical reaction to 
it, "Let's tear it down," isn't going to get them any- 
where. The challenge before today's youth is not to 
get rid of institutions, but to make them perform. 
That is a tougher challenge. 

Opportunity for improvement 

Youngsters see reality. We often do not. We accept 
instead the myth of seventeenth century political and 
social theory, which is still being taught in our schools, 
in which there is no institution; society is molecular; 
there's only one vehicle — the state, the government. 
Or we see the business enterprise as the exception to 
a noninstitutional world, when in fact, the business 
enterprise was merely the first institution to grow. 

Today we have a multi-institutional world. And in 
that world is opportunity for social improvement, 
because the institutionalized world provides the free- 
dom to solve the problem of the tired knowledge 
worker. Many need only a lateral shift to find renais- 
sance. The man who moves from being an accountant 
in a business to being an accountant in a hospital does 
exactly the same thing, but with a different vocabu- 
lary, different values, different relationships and chal- 
lenges. He comes to life again. It's all he needs, very 
often, to revive. We must do what we can — and that 
is a great deal — to see that he does revive and remain 
productive. Concurrently, we must continue in our 
quest to measure that productivity. D 



Society and the Balance Sheet 



by Robert D. Lilley 



Statements and articles on corporate social respon- 
sibility have flowed in recent years from the 
mouths and pens of such eminent people as John 
Kenneth Calbraith, the economist and author; former 
Harvard Law School Dean Eugene J. Rostow, and 
consumer advocate Ralph Nader. The Wall Street 
Journal, The New York Times and other leading news- 
papers have carried countless articles on the subject. 
Milton Friedman, perhaps the country's best known 
conservative economist, has dealt with the issue, as 
have M.I.T. Professor and Nobel laureate Paul Samuel- 
son and The National Review editor William F. Buck- 
ley Jr. Major articles on corporate social responsibility 
have appeared in such national magazines as Time, 
Newsweek and Fortune. 

Why all this concern about the social role of the 
American corporation? Probably the principal reason 
is the activities corporations are engaging in today. 

Partly due to the failure of other institutions, corpo- 
rations have felt compelled, for example, to train 
poorly educated blacks; to assist in the development 
of black-owned businesses; to build or provide mort- 
gage money for ghetto housing; to operate child-care 
centers; to help strengthen the management of urban 
school systems; and to make direct contributions to 
all kinds of efforts and agencies directed toward social 
improvement. Many people believe, perhaps with 
justification, that such activities go well beyond the 
classic function of the corporation. Some go so far 
as to say the corporation, by engaging in such activ- 



ities, actually undermines our economic system and 
threatens to pre-empt the role of government. 

As I interpret the current debate, the issue is not so 
much a question of whether the corporation has a 
role to play, or a contribution to make toward social 
improvement. Rather, the issue seems to be: What 
should that contribution be, and under what circum- 
stances should it be made? 

Milton Friedman, for example, contends that the 
social responsibility of business is "to use its re- 
sources and engage in activities designed to increase 
its profits." But even he concedes self-interest might 
dictate that corporations engage in limited kinds of 
socially directed activity. 

Economist Paul Samuelson takes the position that 
the large corporation today really hasn't much choice. 
It not only is able to engage in socially directed activ- 
ities as a result of court rulings and established busi- 
ness norms, but it is expected to. According to Sam- 
uelson, it is no longer possible for a large corporation 
to ignore the public interest and operate on the basis 
of immediate profit. If it did, according to Samuelson 
it would be in trouble, not only with other businesses, 
but also with the stock exchange and the Securities 
and Exchange Commission. 

Columnist William Buckley Jr. has made the point 
that under a "free enterprise" system it is not the 
altruism of management, but the "anonymous mech- 
anisms" of the marketplace — principally competition 
— that should regulate the allocation of surplus re- 



sources. "If it has surplus resources," states Mr. Buck- 
ley, "a successful shoe company desiring to benefit 
society should lower the price of its shoes. That — not 
gifts to local charities, or profit sharing with em- 
ployees — is the impartial way of distributing its 
benefactions." 

Eugene Rostow has stated, in effect, that business 
has enough to do just taking care of business. He feels 
we should concern ourselves solely with the maximi- 
zation of profit and remain indifferent to the public 
interest. Mr. Rostow some years ago contended that 
the public does not regard the corporation as an 
appropriate institution through which to set public 
policy. 

This statement may have been true five or six years 
ago. But public opinion changes. 

Pass the ball to business 

Two years ago, a third of Americans were of the 
opinion that the elimination of poverty, for example, 
was a responsibility of government and business. And 
one out of every eight were of the opinion that this 
was entirely the job of business. In November 1970 
a poll by the Opinion Research Corporation indicated 
that 60 per cent of the general public considered a 
main responsibility of business to be keeping the en- 
vironment free of pollution. They rated this right 
alongside taking care of customer needs. 

According to that same 1970 poll, 47 per cent of 
Americans felt another important responsibility of 
business was to help sustain full employment. Thirty- 
eight per cent felt a main responsibility of business 
was to hire and train the disadvantaged. Another 29 
per cent included among the major responsibilities 
of business that of assisting in cleaning up and re- 
building big-city ghettos. Stockholders, however, ac- 

The author is an executive vice president and a director of AT&T, 
withi responsibility for Personnel, Environmental Affairs, and In- 
formation, hie is a former vice president of Western Electric and 
former president of New jersey Bell. 



cording to a recent poll, generally want corporations 
"to attend to business, stay honest and pay dividends." 
It seems pretty clear that we are witnessing a shift- 
ing of public expectations. Obviously, many people 
do feel that business does have a social responsibility. 
And they expect this responsibility to be discharged 
in many ways. 

For the greater good? 

I would have to agree that there has been, in the 
past, some hypocrisy surrounding the social role of 
the corporation. I think this is changing. I recall, for 
example, the early days of the civil rights movement, 
and the movement for equal employment oppor- 
tunity. It seemed then that every action by corpora- 
tions to improve conditions for minorities always was 
preceded by a pronouncement on why — always 
after a great deal of soul-searching and moral agony 
— the company felt compelled to "do the right thing." 
Not in its own interest, mind you, but always for the 
greater good of mankind. 

Fortunately we are getting away from this. In the 
Bell System we have tried to develop a sound ratio- 
nale for what we are doing to help bring about social 
improvements. Several years ago we came to grips 
with this problem of just what should be our involve- 
ment in helping to improve social conditions. What- 
ever this involvement was to be, it needed justifica- 
tion. It had to be justified in terms of our business 
and in terms of the unique resources we had to con- 
tribute. In seeking our justification, it became increas- 
ingly apparent that our business was overwhelmingly 
dependent on the health of the cities. We were, in 
effect, an urban business. Our resources of people, 
land and facilities were centered largely in the cities. 
And the cities were decaying. 

Our business depends on people. At last count 
there were about a million people working for Bell 
System companies. This includes AT&T, the telephone 
companies. Western Electric and Bell Laboratories. 



We have estimated that half of the people we will 
hire in the next decade will come from the school 
systems in the big cities. We depend on those cities 
as the major source of entry labor for our craft jobs. 
And a large and growing percentage of their inhabi- 
tants are black. Black people today account for 25 per 
cent of the total labor force in central cities. Thirteen 
of these central cities— where 37 per cent of the blacks 
in the United States live — probably will be more than 
50 per cent black by 1984. Two of these cities — 
Washington, D.C., and Newark, N.J. — already are. 

I don't mean to suggest that the adjustments to be 
made are solely within those eastern cities which have 
a growing black population. We are somewhat uni- 
que among corporations in that our business is spread 
geographically throughout the nation. And in Cali- 
fornia — which contains 40 per cent of our Spanish- 
surnamed employees — and in southwestern cities 
like Santa Fe, Phoenix and Albuquerque, we have had 
to adapt both our service and our labor market re- 
quirements to a large Mexican-American and Ameri- 
can-Indian population. 

More than one-third of the employees of telephone 
companies — nearly 262,000 people — come from the 
30 largest cities in the United States. These same 30 
cities contain more than 25 per cent of the Bell Sys- 
tem's physical plant and generate 25 per cent of its 
revenues. As an example. New Jersey Bell has assets 
in the state — comprised of land, buildings and equip- 
ment — of more than $2 billion. These assets are 
spread among nearly all municipalities of the state. 
But approximately 30 per cent is in just 13 principally 
urbanized communities: Newark, Paterson, Trenton, 
New Brunswick, Camden, Jersey City, Elizabeth, 
Plainfield, Atlantic City, Clifton, Hackensack, East 
Orange and Irvington. Such concentration makes it 
logical for us to focus our involvement on city prob- 
lems. And particularly the "people" problems that 
arise from conditions in the cities. 

This has led us into programs of training and re- 
medial education for the un- and underemployed. 



It has led some Bell System companies to experiment 
with child-care centers as a potential means for im- 
proving employee retention and reducing absentee- 
ism. In this connection. The Chesapeake and Potomac 
Telephone Companies and the Ohio Bell Telephone 
Company have opened such centers in Washington, 
D.C., and Columbus, Ohio. Bell System companies 
in some cities also work with school systems in setting 
up work-study programs, remedial reading programs, 
vocational training programs and guidance programs 
for students, and business management programs for 
school administrators. In addition, we donate finan- 
cial and technical assistance to agencies working to 
improve communities and to meet the needs of peo- 
ple, particularly in the cities. 

In 1970, Bell System companies contributed $15.6 
million for a variety of social purposes. The bulk of 
this went for united appeals, the Red Cross, to edu- 
cational institutions and purposes, and for hospitals 
and other health and welfare agencies. We also make 
in-kind contributions that are, perhaps, more impor- 
tant than our direct financial assistance. These include 
such things as responding to requests from the com- 
munity for people with special expertise. 

My own service with Governor Hughes's (former 
Governor Richard Hughes of New Jersey) special ad- 
visory commission on civil disorders is an example of 
this. Another example is the action of New Jersey Bell 
in lending the services of one of its people to the City 
of Newark to fill a short-term need for a fully quali- 
fied professional engineer — who was nowhere to 
be found in the city's government. 

It's difficult to place a dollar value on these kinds 
of contributions. Our individual employees also give 
generously of their time in community voluntary ac- 
tivities. We have a policy in the Bell System that en- 
courages this kind of involvement. But the point here 
is not what the Bell System is doing, but to define 
the rationale that helped to influence our decisions 
and to illustrate that we are not being influenced 

(continued on page 33) 




THOSE 

SPECIAL 

PEOPLE 

'Our business has been singularly 
fortunate in the special kind of 
people it has been able to attract." 

H. I. Romnes, ATSlT Chairman of the Board. 



e are more than a million people of all ages and 
colors and creeds. A devotion to excellence and a 
commitment to serve are shared among us all. 






1. James A. Cengia, Long Lines transmission. 
New York, N.Y. 

2. Michael Hall, cable splicer's helper, 
Indianapolis, Ind. 

3. Mark Gardner, member of technical staff, 
acoustics research. Bell Laboratories, 
Murray Hill, N.J. 

4. Jo Ann Sacco, Marie Gujski, overseas 
operators, Pittsburgh, Pa. 





PUBLIC 1 






1. Phil Lozano, coin collector. 
New York, N.Y. 

2. Shirley Ratliff, test center dispatch clerk, 
Baltimore, Md. 

3. Ed Brennan, cable splicer, 
San Francisco, Cal. 

4. William Powers, directory production 
manager, St. Louis, Mo. 

5. John Kunish, electronics design engineer. 
Bell Laboratories, Holmdel, N.J. 

6. Margaret Zbikowski, Long Lines operator, 
Pittsburgh, Pa. 



From our myriad backgrounds 
we bring with us many skills and 
many trades. The sum of those 
skills enables us to serve as we do. 



1. Robert Shulman, biophysicist. 
Bell Laboratories, Murray Hill, N.J. 

2. Robert Paglusch, metals molder. 
Western Electric, Chicago, 111. 

3. Jackie Jean, bench hand. Western Electric, 
North Andover, Mass. 

4. Carl Face, cable splicer, Monterey, Cal. 




^4 






^ 



^z^.-K 



r- 




1. Tim Cowan, auto mechanic, Jacksonville, Fla. 

2. Geraldine Shreckengosh, coin telephone 
counting clerk, Jacksonville, Fla. 

3. Judith Ann Hedlund, business office 
supervisor, Philadelphia, Pa. 

4. Henry Birdsall, purchased products 
engineer. Western Electric, Millinocket, Me. 

5. Charles Wilson, computer operator. Phoenix, Ariz. 






Those Special People serve wherever 
and whenever the need exists. 



David Pollard, Thomas Jones, 
transmission engineers. Long Lines, 
San Francisco, Cal. 



^ 







1. Michael Boldman, lineman, outside plant; 
trenching for underground cable, Arizona. 

2. Lee G. Boyles, Kenneth R. Olson, Jr., 
linemen. Cook, Minn. 

3. Jack Ward, plant supervisor, with pilot 
of cable patrol plane, Napa, Cal. 

4. Ben Schmidt, cable splicer, on Telco 
barge, San Francisco, Cal. 










Our job spans many environments. It takes us 
beneath city streets and along country lanes. 
We work in boats and planes, on horseback and 
on snowshoes, in trucks and on tractors. 



i^^Pr^: 



.4 



^ 





1. Richard Altizio, installer, 
San Francisco, Cal. 

2. Staff supervisor. Long Lines network 
management center. New York, N.Y. 



. . . And we walk a lot. 



e call ourselves a system, which means we are a 
team— a team of people who design and manufacture 
and operate the big, growing, changing machine 
we call the switched network. By working together 
to common standards we make that machine encompass 
a whole nation's communications , yet he sensitive to 
the command of a child' s finger . 




1. Helen Chiffriller, chief overseas operator. New York, N.Y. 

2. Victor Ransom, systems engineer. 
Bell Laboratories, Holmdel, N.J. 
Dr. Charles Aliosio, materials engineer. 
Bell Laboratories; Edwin Shieh, 

development engineer. Western Electric, Indianapolis, Ind. 
Dale Wormeck, service representative, Philadelphia, Pa. 




In our pursuit of excellence, growth 
and change are of the essence. 
The learning never ends. 



1. Carl Dorr, instructor. Management 

Training Center, Lisle, III. 
2., 3. Plant school trainees. Phoenix, Ariz. 





H. 



s* S.9 


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m 


i 

i 


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fl 


. 1 



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, -'', 



I 




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*S*'' 



-s 







How well we meet 
each special need is 
a measure of how 
well we serve. 




1. Jack Eslick, commercial manager, 
Mayport, Fla. 

2. John Harshman, central office repairman, 
adjusting closed circuit ETV amplifier, 
Williamsport, Md. 

3. Mrs. Veronda Murphy, teller, 
Jacksonville, Fla. 

4. Mary Fahey, service adviser, instructing 
state trooper in use of LEAPS network; 
Boston, Mass. 

















^^^ 



->4 "CT, 






.'»' 



.^.."5 




^.--es C^ ■ 



I « '"^^v^Tv^ .'-. V -V,. ..•a 





e never forget that we 
are neighbors. Community service, 
like communications service, 
is our way of life. 






1. James J. Morrison, commercial personnel 
supervisor, showing blind woman how 
to use the "talking book machine," 
Oklahoma City, Okla. 

2. Gene Tatman, chief transmissionman, 
working in black to black program, 
San Francisco, Cal. 

3. Katherine Titsworth, editorial assistant, 
volunteer in Telephone Pioneer remedial 
reading program, San Francisco, Cal. 





.^a^ ^^; <fi^ — m^iii- 




.•a« JSMtis, -.;!!»& 



1. Sylvia McClendon, service representative, 
Jacksonville, Fla. 

2. Doug Swaby, installer-repairman, 
Indianapolis, Ind. 



Everything we do leads finally to this 
one basic act— helping the individual 
customer. For, what is service but 
one human helping another? 




(continued from page 8) 

blindly by the immutable forces of the marketplace. 

The American economy today is a curious mixture 
of public and private activity. And this mix has 
evolved as a pragmatic way of getting things done. 
Whatever else it is, the economy is not purely private, 
and it never has conformed identically to the classic, 
elegant, generalized model of a free enterprise, free 
market system that is used by some critics of corpo- 
rate social involvement. Whatever else the modern 
market is, it is not free. 

The decision-making mechanism in our economy, 
far from being the invisible forces of the marketplace, 
really is a combination of market forces plus govern- 
ment and private manipulation and initiative. In short, 
the economy, as it exists in the minds of many who 
defend the maximization of profits, is no more than 
a classic abstraction. For corporate leaders faced with 
such social issues as crime and vandalism, pollution, 
racial discrimination, declining labor markets, high 
costs, consumerism and rising demands for service, 
this abstraction offers no realistic solutions. For the 
management of a major corporation today to "stick 
to its knitting" — to pursue profits to the exclusion of 
the public interest — is to isolate the operations of 
the company from life itself. 

Business beyond its depth 

This does not mean we can ignore the need for 
profits. It is absolutely fundamental that a corporation 
be healthy and successful financially in order to dis- 
charge its social responsibilities. And it does not mean 
there are no limits on how far corporations can go 
in fulfilling a socially responsible role. There is, for 
example, much to think about in the counseling of 
those who warn of the danger of business pre-empt- 
ing or seeking to pre-empt the political process in 
which we all participate. 

In saying this, I'm not suggesting that I am so much 
concerned about business threatening to supersede 



that political process. Rather, I see a greater threat to 
business, in that the general conception of what cor- 
porations can actually and properly accomplish may 
become inflated. This could result in public pres- 
sures for corporations to respond to so many prob- 
lems that they become diverted from their essential 
role, which ultimately is economic, into areas where 
they have little competence. I believe this danger, 
while not immediate, is implicit in the corporate 
accountability movement. This movement, which 
should not be confused with corporate responsibility, 
seeks to pressure corporations on social issues. In 
connection with this movement, companies have 
been pressured on issues ranging from pollution, dis- 
crimination against blacks and women, and safety, all 
the way to economic sanctions against South Africa 
and ending the war in Southeast Asia. 

Change through lawful means 

The rationale guiding this movement is a belief in 
the pre-eminent power and influence of the American 
corporation. Ralph Nader best exemplifies the think- 
ing of people who support this approach to social 
reform. Nader has described the large corporation as 
a "kind of private government." 

He states that, collectively, large corporations "con- 
stitute the most powerful, consistent and coordinated 
power grid that shapes the actions of men in public 
and private sectors." 

What we have today, in effect, are not only govern- 
ment pressures, but pressures from private individuals 
and groups, many of them working skillfully within 
lawful channels, like the courts and shareowner meet- 
ings, in an attempt to move the corporation toward 
f/ie/r concept of social responsibility. I believe there 
are both positive and negative elements in these 
movements. On the positive side, movements such 
as Nader's, for the most part, are seeking institutional 
change through lawful, proper means. And this sug- 
gests that social protest may be becoming more so- 



33 



phisticated, and that there is emerging at last an 
effective alternative to violent confrontation. The 
danger, as I indicated earlier, is that the accountability 
movement, through pressure, may push the corpo- 
ration into areas where it does not belong. This could 
weaken not only the corporation's ability to achieve 
its essential mission, but the viability of our political 
institutions as well. 

We know something about these pressures. The 
Bell System has been petitioned to take positions and 
to use its resources to influence the outcome on just 
about every imaginable issue. And let me assure you 
these are not simple issues to deal with. 

Most of us have both public and private views on 
all the major issues. And sometimes we feel com- 
pelled to adopt views as officials of publicly-owned 
corporations that cannot be reconciled easily with 
our views as private citizens. 

We have had to come to grips with this problem 
in connection with the war in Southeast Asia. Last year 
we received a number of letters seeking an expression 
either for or against extension of the Vietnam war 
into Cambodia. Our response made two main points: 

The corporation essentially is an economic rather 
than a political institution. 

The right action — for whom? 

There is an honest question as to whether a busi- 
ness organization — even if it were inclined to express 
strictly political viewpoints — is a fit vehicle for the 
achievement of political objectives. 

I think what we are saying here is that, because of 
the size and economic influence of some of our large 
corporations, people tend to ascribe wisdom to them 
in areas well beyond the relatively narrow spectrum 
of their competence. People also tend to see very 
complex political issues in very simplistic terms. The 
right action to take may be very evident to them. But 
I daresay that even if we had the power as a corpora- 
tion to take actions that would influence the outcome 



on major political issues, we scarcely have the wis- 
dom or the experienced judgment to decide which 
action is the right action to take. And it is the public 
tendency to ascribe a kind of omniscience and power 
to corporate leaders, and then to demand that they 
exercise this presumed power and wisdom, that cre- 
ates great risks. 

Consider the shareowner 

Looking at the other side, I would say that a risk 
equal to the risk of corporations overextending them- 
selves is the risk that their full potential for making 
a contribution to the solution of social problems will 
go unrealized. It is one thing to have a socially aware 
management in the sense that it recognizes the im- 
pact social problems have upon the success and pros- 
perity of corporations. It is still another thing to con- 
vince shareowners of the wisdom of the corporation's 
undertaking actions to deal with social problems. 

One of the constraints acting against a wider cor- 
porate involvement with social problems is the fact 
that it is almost impossible for the corporation to as- 
sure its shareowners that they will benefit directly 
from contributions it makes for such purposes as edu- 
cation, or health and welfare, or to improve condi- 
tions in the nation's ghettos. Because it is difficult to 
convince their shareholders of the benefits that flow 
from social involvements, many firms don't contrib- 
ute anything to environmental improvement. Others 
contribute far less than would be the case if they 
could indicate to their shareholders a more immedi- 
ate or direct return. The result is that from 1936 to 
1969 the per cent of net corporate income going for 
philanthropic purposes has increased very little. It has 
gone from less than one half of one per cent to only 
slightly more than one per cent in that time. This 
despite the fact that the deductibility of corporate 
contributions for tax purposes, established back in 
1935, has been sustained by several court rulings. 

At the present time, most direct corporate financial 



34 



contributions are going to education and to hospitals, 
and to other health and welfare agencies. Such activ- 
ities seem to be the easiest to rationalize. This is be- 
cause companies can argue that the availability of 
good schools, hospitals and other necessary commu- 
nity institutions helps industry to attract good em- 
ployees to the community. 

1 say it is easier for companies to argue this. But 
even in these areas where the need for and the de- 
sirability of corporate support is so well established, 
shareholders don't always buy the argument. What 
many shareholders fail to realize, and what we try 
to explain, is that the present level of our contribu- 
tions has virtually no impact on dividends. Total Bell 
System contributions amount to approximately three- 
tenths of one per cent of Bell System income. If we 
were to transfer to dividends the total amount of our 
contributions, it would amount to about one-third 
of a cent per quarter. 

Industry benefits in the long run 

Given the "tend to business, stay honest and pay 
dividends" attitude of most shareowners, I suppose 
it is no surprise that many companies find it difficult 
to contribute to an inner city street academy, for ex- 
ample, or to establish training or remedial programs 
for the hard core or to support housing policies or 
improvements in transportation that will make it pos- 
sible for inner city residents to get to where the jobs 
are. In the long run all industries benefit from efforts 
to improve social conditions. They benefit in lower 
taxes, in better markets and in more stable commu- 
nities. The problem is that these are long-range bene- 
fits, and they are not always easily quantified. This 
means that obtaining corporate support for many 
necessary programs of social improvement will con- 
tinue to be difficult. It will remain difficult until the 
public, and particularly the shareholder public, can 
be made to understand that social problems, if left 
unsolved, do as much damage to balance sheets as 



unsolved production and sales problems. 

Another way of looking at it is to state simply that 
we in the corporate world must do a better job of 
justifying to the public what it is we're trying to do. 
We must find ways to convince the public of the 
necessity of the things we feel we must do in order 
to promote conditions that sustain the highest, most 
durable levels of both corporate and human en- 
deavor. To accomplish this objective we are constant- 
ly studying the interrelationship between the opera- 
tional problems that affect our ability to provide ser- 
vice, and the problems of the environment. 

Government must direct 

As more corporations examine their operations in 
terms of environmental considerations, and as they 
communicate what they learn to the public, I feel con- 
fident that better understanding will result. No busi- 
ness, no group of businesses, acting alone, can do 
the job that has to be done in our cities and commu- 
nities. If the job is to be done, it must be a cooperative 
effort. All segments of American society must be in- 
volved. But the leadership and direction must come 
from government. 

My service with Governor Hughes's special com- 
mission studying civil disorders demonstrated to me 
very clearly that the failure of government was a per- 
vasive factor in the deterioration of life in the City of 
Newark. When we, as citizens, allow government to 
falter in its obligations to any segment of the commu- 
nity, when government fails to provide constructive 
leadership, the quality of life in the entire community 
suffers. And government won't provide the necessary 
leadership in the areas I've been discussing unless it 
has from the public a political mandate for a different 
set of social priorities. If this is forthcoming — both 
the mandate and the leadership — then 1 believe more 
corporations will come forth with the kind of energies, 
talents and resources that will help bring us closer to 
the solution of our most pressing social problems. D 



35 



A representative 
of the 1,800 other 
telephone connpanies 
looks at the industry 
in an interview 

by Robert F. Hanson 



Side-by-Side 



Probably in no other industry in the United States 
today can one find more comprehensive teamwork 
than that employed by the Bell and independent por- 
tions of the telephone industry. Few people realize 
that there are 1,792 Independent (nonBell) telephone 
companies in the 48 contiguous states or that 20 
years ago there were more than 5,000— and that Inde- 
pendent telephone companies provide all of the local 
service to customers in Alaska and Hawaii. 

Independents serve nearly 11,000 exchanges, while 
the Bell System serves about 7,000, including most of 
the large cities. The big three among the Indepen- 
dents are General Telephone and Electronics Corp., 
United Utilities, Inc., and Continental Telephone 
Corp. These three groups are made up of more than 
125 separate operating companies. The General Sys- 
tem serves approximately half the 19.7 million Inde- 
pendent telephones. It is significant to note that each 
of some 1,000 Independent companies serves fewer 
than 1,500 telephones. About 850 Independents serve 
only one exchange, or local calling area. 

Competition in the usual sense of the word does 
not exist among the Independents and Bell, in that 



Mr. Hanson is the Bell-Independent Relations Director at AT&T. 
A graduate of Cornell University, he joined the Long Lines Depart- 
ment in 7946. After having served in various ass/gnments in Kan- 
sas City, Omaha, St. Louis and New York City, he assumed his 
present responsibilities in 1968. 




a telephone company operates in an area that it, 
alone, is authorized to serve. Bell System companies, 
under a long-standing practice, do not purchase or 
consolidate with Independent companies except in 
certain special cases, and then only with approval of 
the Federal Communications Commission (F.C.C.) 
and local regulatory bodies. The decrease in the num- 
ber of Independent telephone companies in recent 
years is attributable mainly to mergers and acquisi- 
tions by Independent holding companies. 

The Bell System, on a day-to-day basis, coordinates 
its operations with those of the Independents, mainly 



36 



through its own operating companies, in addition, 
AT&T people worl< closely with Independent tele- 
phone company groups, such as the United States 
Independent Telephone Association (U.S.I.T.A.), the 
National Telephone Cooperative Association and the 
telephone branch of the Rural Electrification Admin- 
istration in coordinating a flow of information and 
development of new or changed procedures at a 
national level. A number of state and regional tele- 
phone associations coordinate among themselves and 
with the Bell operating companies on matters con- 
cerning expansion and improvement of service. 

U.S.I.T.A. has a number of standing functional com- 
mittees that deal with all phases of telecommunica- 
tions operations. Some of the more active committees 
and subcommittees include those with names like 
Accounting, Commercial, Engineering, Government 
Communications, Plant and Traffic. One that exem- 
plifies the teamwork nature of Bell-Independent rela- 
tions is an engineering subcommittee responsible for 



keeping track of developments requiring technical 
coordination in order for Bell and Independent com- 
panies' equipment to interface satisfactorily. 

Another major area of cooperation between the 
Independents and Bell involves toll revenue sharing, 
or "settlements," as the process is usually identified. 
The Independents interconnect with the Bell System 
long distance network for most of their toll calls, and 
their settlement share of the industry's toll revenues 
was $1.1 billion in 1970. Bell's share was $7.9 billion. 

Basic to the determination of how revenues from 
toll business should be divided are considerations 
related to the application by all telephone companies 
of uniform interstate or intrastate toll rates, so that 
calls of the same distance are priced the same, regard- 
less of which company furnishes the local service on 
each end. In turn, there is a requirement to determine 
the toll costs of each company participating in such 
long distance business, since it is not unusual for three 
different companies to play a part on a single call. 
As an example, a long distance call from St. Peters- 
burg, Fla., (General Telephone Company) to Roch- 
ester, N.Y., (another Independent) is carried over Bell 
facilities between points in Florida and New York. 

Over past years, Bell and the Independents have 
had some areas of disagreement regarding methods 
of determining, for settlement purposes, those costs 
of the Independent companies' operations that relate 
to toll business. Today, agreement exists on use, for 
this purpose, of procedures contained in the Separa- 
tions Manual prepared by the National Association of 
Regulatory Utility Commissioners and the F.C.C. 

Other problems receiving continuous Bell-lnde- 



37 



pendent attention involve network improvements, 
meeting of customer service expectations, private line 
and data services, and competition resulting from 
F.C.C. decisions in the Carterfone and Microwave 
Communications, Inc., (M.C.I.) cases. And we con- 
tinue to work together on the details of processes 
attendant to equitable sharing of toll revenues. 

There's no better way to get a feeling for the Inde- 
pendents' view of their involvement in this industry's 
interests, problems and outlook than to hear from 
one of their representatives. James S. Day, President 
of the Tidewater Telephone Company in Warsaw, 
Va., is the current president of U.S.I.T.A. His company 
connects with the nationwide telephone network 
through the Chesapeake and Potomac Telephone 
Company of Virginia, the Bell System operating com- 
pany of his state. 

"Bud" Day is an amiable, six-foot Virginian who 
began his telephone career with a small Independent 
company the day after he was graduated from high 
school in 1932. He joined the Tidewater Company as 
chief engineer in January 1955 and became its presi- 
dent in 1962. "I love the telephone business," he 
says, "and I've traveled all over the country for 
U.S.I.T.A., talking before groups of telephone people, 
and I've found they're pretty much alike in that 
they're dedicated to serving their customers, and they 
like what they're doing." 

Primary problem is service 

Day believes the primary problem facing the tele- 
phone industry today is service. "We've got to im- 
prove it and regain the public's confidence in us 
where we've lost it," he says. "We have a new gen- 
eration of homemakers whose first meaningful toys 
were play telephones, and the real telephone was 
one of the first things they learned to use. And now 
they're using the service in a way that we couldn't 
have expected a few years ago. We — and by that I 
mean the whole telephone industry — have got to 
give them the service they want, because our public 



acceptance is based on the service we provide." 

Day is optimistic: "I think we can do it and will 
do it. But I don't think we're going to overcome the 
public opinion that has developed within the last 
several years until we go completely to one-party 
service and no-delay D.D.D. service and still keep our 
rates within an area where we don't get this adverse 
feedback from Mr. John Q. Public. And with this tre- 
mendous growth we're all familiar with, we're going 
to have to come up with the money and take care 
of our shareowners, who are going to have to provide 
at least half of it. We've got a big job cut out for us." 
The key to meeting the service problem. Day be- 
lieves, is in taking advantage of improved technology 
"as it comes down the pike" and in providing better 
tools, motivation and training for our people. 



Greatest asset: people 

"We have a real people problem — we're going to 
need twice as many of them." Day believes the great- 
est single asset of the telephone industry is its people. 
"I think we've done a lousy job of convincing the 
F.C.C. and other regulators of what kind of people 
we are. We're dedicated to service, and we work day 
and night and in storms to provide that service, and 
we're not out to gouge the public with unnecessarily 
high rates. All we want and need is a fair return on 
our investment. It was very refreshing to me to hear 
the chairman of one state commission say to me pri- 
vately that if we as an industry would tell the people 
we serve as much as we tell the regulators, we'd have 
an easier job in dealing with our customers. I think 
it's important to have a coordinated effort to tell our 
industry's story better to the public." 

Day points out we've been fighting inflation since 
after World War II, "but it's accelerated in the past 
few years. We had no rate increases in those early 
years of inflation. In fact we had rate reductions, 
in interstate rates mostly, and in the regular service 
when we did a good job, we increased services rather 



38 



than reduced rates. Base rate areas ballooned out, and 
we more or less got ourselves in a hole. I don't think 
the public recognizes that, and I'll have to assume my 
share of the responsibility for it." 

Independent company relations with Bell have 
never been better. Day says. He credits the Bell Lab- 
oratories with most of the technological improve- 
ments in the telephone industry. "Without them, we 
wouldn't be here," he says. "Now don't get me 
wrong. I wouldn't like to work for Bell. For one thing, 
I wouldn't like to live in a large city. And I like to see 
the results of what I do, which I feel is easier to do in 
a small company. I fight Bell toe to toe when I think 
they deserve it, but I think they're doing a great job of 
working with the Independents— not just in providing 
improved technology but in providing technical ad- 
vice. We can pick up a telephone and talk directly 
with a Bell representative. Following disasters such as 
a hurricane or tornado. Bell has moved its own people 
and equipment in to help us restore service. We've 
been up there on the 26th floor of 195 Broadway and 
met with Mr. Romnes and Mr. deButts and other offi- 
cers, and we're very impressed with them. And we 
have reason to think they were impressed with what 
they saw sitting across the table. Bell gets some ideas 
from us, just as we get ideas from them. And, of 
course, we're smaller than Bell, and we feel we can 
often move faster than they can." 

Fewer mergers, acquisitions 

Day expects the trend of mergers and acquisitions 
of Independents to decrease from its rate of the past 
20 years. "There aren't many 'mom and pop' tele- 
phone companies left, and most Independent com- 
panies today are able to raise money and make a 
profit — and that's been the main issue in these acqui- 
sitions. I'm not one of those people who think we're 
going to end up with just a few bigs and no littles in 
the Independent industry, and, shucks, we're doing 
a better job of working among ourselves and with the 
Bell System. We have a dialogue going back and forth 



at all levels — even at the top level of our industry. 
I don't think it would be good to have one big tele- 
phone system in the country, but I don't think that 
there is any justification in fragmenting the large com- 
panies that exist, including the Bell System." 

Regarding debt ratio. Day believes his own com- 
pany should remain in the range of 50 or 60 per cent. 
"But I don't think we can afford a debt ratio down in 
the forties to qualify for triple-A bond ratings. It just 
isn't in the picture. To go above 60 per cent would 
lead to our losing control of what we do. And this is 
the general feeling among many of the independents, 
although some of the holding companies have debt 
ratios above 70 per cent." 

IViore one-party service 

Serving rural areas, as most Independents do, has 
its problems, just as does serving metropolitan areas. 
Day admits one main problem is that of getting tele- 
phone plant out to a customer who is miles away from 
the nearest central office or cable end. "But we're 
mainly concentrating on improving our multiparty 
service from eight-party lines to five or less. And, of 
course, ideally we want to provide one-party service 
for anyone who wants it. We can't right now, but 
we're banking on new station carrier equipment to 
enable us to transmit more calls over our existing 
plant. Of course, we all know that when a call goes 
between an Independent and Bell, and something 
goes wrong, the originating company gets the gaff, no 
matter who's at fault — Bell or the Independent. 

Day feels strongly that the telephone company 
should assist the community it serves in lending cre- 
ative and administrative expertise toward helping to 
solve sociological problems. "Of course, many of us 
from small towns don't fully understand big city 
ghetto problems. But where there are problems in the 
communities we serve, I believe we should help 
where we can. I know the Rochester (New York) 
telephone company has spent a great deal of effort 
to encourage its young people to stay in Rochester 



39 



and work and serve the community instead of leaving 
for a larger city." 

Computers are entering the picture in independent 
company operations, and again Bell comptrollers or 
accounting people are developing systems to permit 
data such as billing information to be easily and 
quickly exchanged between the independents and 
Bell companies. "In fact, says Day, "I don't believe 
there's any area of improvement that's filtered down 
into the small Independent telephone systems where 
the connecting Bell companies didn't get into the 
picture somewhere." 

"They've got to have that telephone" 

The need to improve forecasting of future tele- 
phone needs is one problem that disturbs Day, who 
says: "\ don't have the answer to it. I don't know how 
to do it. You can rest assured that every generation 
from now on that reaches adulthood is going to be 
the same type as those who have reached adulthood 
for the last five years or so. They were raised with a 
telephone in their hand. I would think that a kid who 
hasn't had the use of a telephone hasn't had a normal 
childhood. And it may even create some personality 
problems, because they've got to have that telephone. 
And this is going to keep on from now on. We're 
going to have to find better tools, but we're also 
going to have to find ways to respond quicker when 
we've found out that we have underestimated our 
telephone needs. It just takes us too doggone long 
to get things done. I remember in the early thirties 
we could conceive of an entire plant, including cen- 
tral office and everything, and six months later, it was 
produced. It was there, working. Now, it takes us 14 
months to get a small addition to a community dial 
office. When these housing developments blossom 
over a few months, we're going to have to find ways 
to serve them. And I think we can." 

In some respects, the Independents are ahead of 
Bell, believes Day. "I think that many of our people 
are better motivated and that our per-man produc- 



tion is often higher. I feel we have to do a better job 
here, because we often have more invested than Bell 
does for similar items of plant. And, as I said, we feel 
we can move faster. We don't have as many steps to 
go through as Bell to get approval of a project." 

"We can successfully compete" 

On competition with carriers such as M.C.I., Day 
says: "I think that if the regulatory people permit us 
to operate under the same ground rules, we can suc- 
cessfully compete with the likes of M.C.I, and Datran, 
and we can give the customer better service. The 
secret is, how can you do this and maintain the integ- 
rity of the message network with the average pricing 
concept that is in the picture? This has to be done, 
I believe. But at the same time, we're going to have 
to be permitted to compete with these people on 
point-to-point pricing. I'm not too worried about 
customer-provided terminal equipment, because the 
people who are going to buy that apparatus are going 
to find that the maintenance is just too expensive for 
them. They're going to find that we can do a better 
job for them and will do a better job for them. And 
I feel the same about customer-provided P.A.B.X. 
systems (non-telephone company PBX's). We're just 
better equipped. The F.C.C. has injected competition 
into the picture, but I think that competition, just for 
competition's sake, isn't the answer." 

A good telephone man or woman. Day believes, 
"must have above average intelligence, must like 
working with people, must be motivated to serve 
others and needs a desire to keep learning." 

"We must do a better job of educating the public, 
the regulators and the President's Office of Telecom- 
munications Policy about our challenges and how 
we can meet them," Bud Day believes. "The tele- 
phone industry has been hit with some mighty tough 
problems during the past several years. We in the 
industry need to get our brains together and see what 
we can do to plan how best to use our people and 
technology to meet whatever lies ahead." D 



40 



The Spirit of the Cobbler 

(continued from inside front cover) 

though, that works not for but against 
a company's progress. When a man 
feels he's not thoroughly necessary, 
even if he's paid as if he were, he 
won't give his job everything he's got. 
He may spend more time at lunch than 
at work; a practice as costly to em- 
ployer as to employee. 

Incentive to perform 

it may be merely enlightened self- 
interest, but small-business people do 
feel indispensable. They do because 
they are. Being a small business — 
whether day nursery, drugstore, doc- 
tor or furniture maker — if the boss 
fails to show up for work, or if he 
shows up and fails to do his best, the 
day is likely to pass without profit. Too 
many such performances by the boss 
and his small staff will directly and 
rapidly ruin the business and have a 
detrimental impact upon the lives of 
those responsible. There exists a strong 
incentive to perform, because the re- 
ward, or lack of it, is clear and quickly 
felt. There is an inclination among 
some people in big organizations, on 
the other hand, to feel that whether or 
not one performs to his fullest reach, 
the paycheck or the promotion will 
arrive on schedule. It is a human flaw 
of very large organizations — and per- 
haps an insurmountable one, consid- 
ering the numbers of people and the 
complex subjective values involved — 
that such visible examples do exist. 

A return to cottage industry is not 
the answer. It is doubtful that there is 
a single executive, educator or other 
reader of BTM who would trade tech- 
nology and most of what it has 
wrought, including air-conditioned of- 
fices and knowledge work, for the 
chance to squat in a fly-infested alley 
in some lethargic land and scratch out 
an existence by selling bean sprouts to 



one's neighbors. Nor are there many 
among us who would swap the mod- 
ern medical specialist, even if he 
doesr^'t make house calls, for a pre- 
scription of herbs and sheep blood 
when attacked by coronary thrombosis 
or appendicitis or even mumps. Those 
who do sometimes pine for the more 
relaxed economic performance and re- 
sultant life-style of other cultures are 
often students fresh from a trip abroad. 
They are students who have traveled 
at discount rates achieved through 
skilled mass-marketing techniques, on 
jet aircraft sprung from technology's 
rib, with money given by parents who 
had it to give because of jobs in the 
industrialized society that the students 
bemoan and that the visited societies 
seek eagerly to emulate. 

The answer is not to return to cot- 
tage industry, but to introduce the 
assurance of personal indispensability, 
individual by individual, into large- 
scale organized human efforts. This 
must be a prime goal of managers, 
sociologists and behavioral scientists 
as governments and corporations con- 
tinue to grow in the1970's. While there 
have always been and always will be 
some who are grateful for the easy 
ride possible in big bureaus and big 
businesses, especially if it's well paid. 



most people need, want and do find 
indispensability in their work. A sam- 
pling of such people is illustrated in 
the center section of this magazine. 

These people, both manual and 
knowledge workers, are special, and 
they know it. They are not exceptions 
to the Bell System rule; they are the 
rule itself. Like the successful small - 
business man, they feel indispensable 
simply because they are. They are as 
necessary to the performance of their 
job, and to the quality conduct of this 
company's service mission, as the 
Mountainview cobbler is to the pro- 
duction, selling and repair of boots 
and shoes. 

Personal indispensability is one of 
the great things we have going for us, 
individually and organizationally, in 
the Bell Telephone System. The people 
pictured, and the million more they 
represent, bring the spirit of the cob- 
bler to the marketplace of big business 
and to the rewarding occupation of 
communications service. Such a blend 
— cottage and corporate — is the best 
of both working worlds. It is the way 
this singular business has always 
worked, it is the way this business 
works now, and it is the way this busi- 
ness, big as it is, will work and serve 
in the exhilarating days ahead. D 



BELL 

telephone magazine 



VOLUME 50 NUiVtBER 4 



SEPTEMBER/OCTOBER 1971 



H. I. Romnes, Chairman of the Board and President 
John D. deButts, Vice Chairman 
Robert W. Ehrlich, Secretary 
John J. Scanlon, Treasurer 



Tim Henney, Editor 

Al Catalano, Art Director 

Donald R. Woodford, Managing Editor 

Robert A. Feinstein, Associate Editor 

Marco Gilliam, Associate Editor 



@ 



Published by American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 212-393-8255 



©AT&T 



American Telephone and Telegraph Company 
195 Broadway, New York, N.Y. 10007 



Bulk Rate 
U.S. Postage 

PAID 

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Permit No. 22 



Moving? Bell System employees, please inform 

your supervisor or the BTM circulation coordinator 

in your Company's Public Relations Department. 

All other subscribers, please notify the 

Circulation Manager, Be// Telephone Magazine, 

Room 417, American Telephone & Telegraph Company, 

195 BroacJway, New York, N.Y. 10007 

Please include the mailing label from this issue. 



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LIBRARIAN PERIOOICAL OEPT 
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^y 



Tall New Neighbor, p. 1 
Some Straight Talk, p. 4 
Symbols for Understanding, p. 10 
Pioneers Hit Sixty, p. 15 
Satellites, p. 18 
Management in Illinois, p. 24 
John Pierce, Superstar, p. 28 



November/December 1971 

BEU 



telephone magazine 




kUt • 



Improving the Art 



"Veracity does not consist in saying, 
but in the intention of communicating 
truth."— Coleridge 



A boy who is almost five years old was 
told recently by a more worldly peer 
that if he dug deep enough into the 
sand at the beach he would hear Chi- 
nese people talking. The boy found 
the idea so fascinating that he began 
to dig and, sure enough, after he'd 
scooped out about a foot or so of sand 
he stuck his head into the hole and 
heard Chinese. 

One of the secrets of successful 
communication is to have something 
worthwhile to communicate. Whether 
good news or bad, serious news or 
funny, it should be worthwhile in the 
view of the communicated to as well 
as in the view of the communicator. 
It should offer an incentive: like hear- 
ing Chinese people talking beneath 
the sand, when you're almost five. 

Another element in effective com- 
munication involves following through 
on what you say you are going to do. 
That aspect of the art of communica- 
tion is the main thrust of an article by 
AT&T's vice chairman in the opening 
pages of this issue. An example of suc- 
cessful communication employing 
both techniques — interest and follow- 
through — is New York Telephone's 
current service recovery and simulta- 
neous campaign to inform the public 
and its employees that "We're coming 
back." The art of communication is 
working in that case because, first, the 
company has a subject — improved 
service— dearto the hearts and pocket- 
books of its public, and, second, the 
company is not just talking, it is doing. 
It is following through. 



It is an uncomfortable irony that 
today, when the technology of com- 
munication borders on the miraculous 
— thanks largely to the early and con- 
tinuing accomplishments of this busi- 
ness — the art of communication so 
often seems to border on the forgot- 
ten. It is an irony that has become 
increasingly troublesome, wasteful, in- 
efficient and expensive to large organ- 
izations. And it is an irony that is not 
being ignored. 

Growing organizations, reeling from 
the impact of worsening personal 
communication up and down the lines 
and increasingly poor rapport with 
their publics, are pouring considerable 
time, energy and money into efforts 
to revive the art and put it on a par 
with the technology. In the U.S. State 
Department, for example, a massive 
reform and reorganization movement 
has been in progress to upgrade the 
performance of that vital government 
unit. A principal aim of that effort, 
according to a Department official, is 
to achieve more "openness" through- 
out the organization — "a higher pri- 
ority for expanding and improving our 
contact and communication in both 
directions with all segments of the 
American public." 

Amazement and admiration 

The situation, and the prodigious 
efforts underway to solve it, are no less 
impressive in large business organiza- 
tions, including the Bell System. For 
evidence of this company's mounting 
concern, one need not look past the 
pages of this magazine. In the March/ 
April issue, for example, AT&T's pub- 
lications director questioned the suc- 
cess of the System's pioneering, 
continuing attempts at employee 
information over the years. He won- 
dered if the professional communi- 
cators who comprise this biggest of all 
big businesses — and the biggest and 



best of all communications businesses 
to boot — really know how to com- 
municate with each other. The evi- 
dence, he said, is that they do not. 

A number of letters arrived in the 
editorial offices about that article. 
Most were from nonBell businessmen 
and educators who expressed both 
amazement and admiration that this 
company would admit to such a falli- 
bility. Some requested reprints for 
circulation among their own manage- 
ments and faculties. In the issue you 
are reading, there are further stories 
about communication problems and 
progress, including the one by the vice 
chairman, in which he chides business, 
including this business, for not telling 
its "fine story" more convincingly to 
the public. He urges business to tell it 
better. Like John Milton, the vice chair- 
man obviously feels that "Good, the 
more communicated, more abundant 
grows." 

"A square deal" 

The intensity of a communicator's 
desire to put his message across is yet 
a third contributor to the art of com- 
munication among colleagues or with 
the public. Some of the most mem- 
orable communications artwork over 
the years, at least in this country, has 
come out of Presidential campaign 
and election speeches, where the im- 
petus to communicate is fierce indeed 
— the prize for the best job of com- 
munication being the Presidency itself. 

For instance, a would-be assassin 
shot at Teddy Roosevelt during a cam- 
paign speech in Milwaukee in 1912. 
"I will make this speech or die," said 
T. R., and kept right on talking. The 
bullet had struck his spectacle case, 
and the candidate finished his remarks, 
only slightly rattled. It was in that cam- 
paign that Roosevelt said, "The prin- 
ciples for which we stand are the prin- 
(continued on inside back cover) 



50,000 Phones 
for AT&T's 
New Neighbor 

World Trade 
Center Tops Out 

A "city" with the phone capacity of 
Galveston, Tex., or Poughkeepsie, 
N.Y., is opening for business on a 16- 
acre site in lower Manhattan. A sign 
designating the address of the North 
Tower in the building complex reads: 
"This is One World Trade Center." 
And that it is, whether one considers 
the address or the magnitude of the 
project. The South Tower, Two World 
Trade Center, like its twin, is 110 sto- 
ries - 1,350 feet tall. The complex also 
will include a U.S. Customs House, 
Northeast and Southeast Tower Plaza 
buildings, each nine stories high, 




..— ^ . ,.,4.4ui:v 



a 17-story hotel and below-ground 
parking for 2,000 cars. Fifty thousand 
people will work at the center, which 
is expected to attract 80,000 business 
visitors every weekday. Together, the 
twin towers will have 204 elevators. 
Each express elevator will be capable 
of carrying 55 people at a speed of 
1,700 feet per minute. 

The $575 million World Trade Cen- 
ter will offer nine million square feet 








■• ; ^1 



* - -■ .-A 




of rentable space. When completed, 
it will have required 200,000 tons of 
Japanese steel, 600,000 square feet of 
tempered, heat-reflective glass and 
5,000 construction workers on the site 
at one time. It will take a 49,000-ton 
system of air conditioning to cool the 
place. 

The center will have 50,000 tele- 
phones and will consume 600 mega- 
watt hours of electrical power daily. 
New York Telephone and Western 
Electric, among 167 sub-contractors 
working on the project, have a total 
of more than 100 people installing 
telecommunications equipment and 
coordinating plans with the general 
contractor, Tishman Realty and Con- 
struction Corp., and the center's own- 
er, the Port of New York Authority. 
When completed, the complex will 
require more than 200 full-time New 
York Telephone employees to serve 
it. Six Electronic Switching System 
(ESS) offices will be installed in the 
South Tower. They will serve the com- 
plex as well as future downtown 
growth. New York Telephone will oc- 
cupy five floors in the South Tower — 



more than 150,000 square feet — for 
central office and administrative 
space. The company will invest more 
than $65 million in telecommunica- 
tions equipment to provide service at 
the center. Some 200,000 miles of 
telephone conductors are piped into 
the complex — enough to reach eight 
times around the world. 

The center is scheduled for comple- 
tion in late 1973. More than 100 cus- 
tomers now occupy lower floors of 
the North Tower, which was topped 
out last December. Tenants and vis- 
itors alike will be afforded views of 
New York City's harbor, Staten Island 
and the Verrazano-Narrows Bridge to 
the South; the Hudson River immedi- 
ately below; New Jersey to the West; 
Brooklyn and Queens across the East 
River on Long Island, and all of Man- 
hattan Island, including that renowned 
second tallest building in the world — 
the Empire State. 

Some time in the future the Empire 
State Building will drop to third in 
height and the World Trade Center to 
second with completion of Chicago's 
Sears-Roebuck Building. O 



Strai^t 
Tair 



by John D-de Butts 



Americans are bombarded 
daily with reports that their 
L water is polluted by indus- 
trial wastes, their air is befouled 
by the outpourings of auto ex- 
hausts and factory chimneys, and 
even their food is contaminated 
by dangerous chemical additives. 
They experience repeated trans- 
portation breakdowns, power 
failures, blackouts — and, I regret 
to say, even some localized prob- 
lems with telephone service. 
Their ears are assailed by trip- 
hammers and the roar of jet aircraft. And, to top it all 
off, their incomes are eroded by inflation, their liveli- 
hoods threatened by the specter of unemployment. 

As a result, and not surprisingly, a great many 
Americans are today convinced, and a great many 
more suspect, that the neglect or indifference or out- 
right irresponsibility of businessmen is the source and 
cause of the deteriorating circumstances in which 
they find themselves. Judging by the newspapers, and 
by what we see and hear on TV and radio, either busi- 
nessmen are unpersuasive and inarticulate, or there 
is something sadly wrong with our system of free en- 
terprise. The image of business is not what it used to 
be. There is scarcely a problem confronting the na- 
tion that is not laid at the doorstep of business: pollu- 
tion, unemployment, inflation, the international 
monetary crisis, discrimination and a host of other 
maladies, I suspect, as yet unborn. 

Criticism of our operations and activities comes 
from employees, young people, intellectuals, politi- 




— just about every source imag- 
inable. Some of the criticism is 
justified. Much of it is not. Some 
of it is honest, sincere, reason- 
able. A sizeable proportion is vin- 
dictive or irrational. 

That many of the charges cur- 
rently being leveled against busi- 
ness are unfounded provides 
small comfort. In the long run, 
the success and survival of private 
enterprise in this country is likely 
to depend not only on its objec- 
tive performance but on the ways 
that performance is perce/ved by the American public. 
Is it any wonder that the reputation of business and 
businessmen is at a low ebb? The blame has to be 
placed somewhere. And business is a very large and 
seemingly logical target for those who have not the 
time, training or inclination to look for root causes. 
The truth is that a whole combination of factors 
has helped to produce the problems and perplexities 
facing our nation today. Ill-advised or ill-conceived 
policies of local, state and national government have 
contributed their healthy share. The upward thrust of 
science and technology, with their potentialities for 
both good and evil, has played a part. The seemingly 
insatiable hunger of our affluent society for more and 
more products and services has strained our re- 
sources. And businessmen have their foibles and have 
made their mistakes, as well. 

The problem for business is one of convincing its 
employees, its shareowners, its customers and the 
public at large that the nation's ailments — insofar as 



cians, consumer advocates, customers, shareowners they have been blamed on business — have not been 



that many of 

the charges currently being 

leveled against business 

are unfounded 
provides small comfort 



properly diagnosed; that they won't be cured, more- 
over, until they are viewed as problems of our entire 
society, and that our entire society shares in respon- 
sibility for their solution. That, essentially, is a prob- 
lem of communication. 

Somehow — without for a moment suggesting that 
we are not partly culpable, without attempting to pass 
the buck — we must make it clear that business rec- 
ognizes that improvements in the quality of life are 
necessary, business has the resources and the commit- 
ment required to do its share in bringing about those 
improvements, and it will commit its resources fully 
if it has public understanding and support. Too often, 
the public and its representatives in government insist 
on immediate and large-scale improvements without 
acknowledging that ultimately it is the consumer that 
must pay the fair price. 

The question, of course, is how to get that story 
effectively told. At AT&T and throughout the Bell Sys- 
tem we have learned the importance of listening 
closely to what people are saying about us and re- 
sponding candidly and promptly. Some examples: 

The Bell System has experienced some difficulty of 
late in maintaining traditional standards of service in 
a few large urban centers, especially New York. Peo- 
ple have been quick to express their displeasure — in 



lohn D. deButts is V;ce Chairman of the Board of AT&T. He has 
been an AT&T executive vice president, president of Illinois Bell, 
and vice president— operations and en