The Bell System was a system of telecommunication companies, led by the Bell Telephone Company and later by the American Telephone and Telegraph Company (AT&T), that dominated the telephone services industry in North America for over 100 years from its creation in 1877 until its antitrust breakup in 1983. The system of companies was often colloquially called Ma Bell (as in "Mother Bell"), as it held a vertical monopoly over telecommunication products and services in most areas of the United States and Canada. At the time of the breakup of the Bell System in the early 1980s, it had assets of $ 150 billion (equivalent to $ 440 billion in 2023) and employed over one million people.
83-587: Beginning in the 1910s, American antitrust regulators had been observing and accusing the Bell System of abusing its monopoly power, and had brought legal action multiple times over the decades. In 1974 the Antitrust Division of the U.S. Department of Justice brought a lawsuit against Bell claiming violations of the Sherman Act . In 1982, anticipating that it could not win, AT&T agreed to
166-645: A 54% share of the Nippon Electric Company, Ltd. Western Electric's representative in Japan was Walter Tenney Carleton . The company, later known as NEC, would eventually become a major international manufacturer of electronics equipment including semiconductors and personal computers. In 1901, Western Electric secretly purchased a controlling interest in a principal competitor, the Kellogg Switchboard & Supply Company , but in 1909
249-510: A Justice Department-mandated consent decree that settled the lawsuit and ordered it to break itself up into seven " Regional Bell Operating Companies " (known as "The Baby Bells"). This ended the existence of the conglomerate in 1984. The Baby Bells became independent companies and several of them are large corporations today. In 1877, the American Bell Telephone Company, named after Alexander Graham Bell , opened
332-664: A Western Electric decision to join Haverhill and Lawrence locations in 1956 as the Merrimack Valley Works. In 1944, Western Electric purchased a factory in St. Paul, Minnesota to restart manufacture of telephone sets for civilian installation as authorized by War Production Board . By 1946, some of these facilities were relocated to the Hawthorne plant as space became available from war-production scale down. Also,
415-504: A close relationship with telegraph company Western Union , to whom they supplied relays and other equipment. In 1875, Gray sold his interests to Western Union, including the caveat that he had filed against Alexander Graham Bell 's patent application for the telephone . The ensuing legal battle between Western Union and the Bell Telephone Company over patent rights ended in 1879 with Western Union withdrawing from
498-527: A closer resemblance to North American ANSI and iconectiv standards than to European-originated ITU-T standards. Before the 1956 break-up, Northern Electric was focused on manufacturing, without significant telecommunication-equipment research & development of its own. The operation of Japan's NTT during the post-World War II occupation was considered an administrative adjunct to the North American Bell System. Immediately before
581-624: A component called the "Antitrust Division." The closure of four of the Antitrust Division's criminal antitrust offices in January 2013 generated significant controversy within the Division and among members of Congress. The Attorney General posited that the closure of these offices will save money and not negatively affect criminal enforcement. A significant number of career prosecutors have voiced contrary opinions, noting that
664-586: A factory at that location and the Western Electric company known as W.E. Mfg. Co., at the time, had purchased Western Union's New York Factory to continue the increase of phone production. This site would also place the end to Western Union factories. The Boston shop was located at 109-115 Court Street and it was previously known as the Charles Williams, Jr factory that was purchased by Western Electric in 1882. The consolidation of operations
747-436: A factory. On August 22, 1952, the facility opened to produce new electronic components for the U.S. government for use by the military and the space program. In the mid-1950s, Western Electric established several more satellite "Shops" that were smaller locations reporting to the larger "Works" locations. The "Montgomery Shops" were occupied in 1955 to produce Data-Phone data sets, wire spring relays, and test sets. Although, it
830-470: A former physics professor at Oberlin College . Barton thought of future growth in electrical apparatus potential for the company and shared a common enthusiasm with the inventor, who was interested in leading a manufacturing plant capable of long-term developments. Shawk found those plans were beyond his business goals and offered to sell his half-interest partnership to Gray. Anson Stager , a former Chief of
913-515: A meeting of the top executives to decide whether I might remain with the Company, for it established a precedent and a new policy for the Company – that of married women in their employ. If the women at the top were permitted to remain after marriage then all women would expect the same privilege. The policy was expanded quickly, so that a few years later women were given maternity leaves with no loss of time on their service records." Western Electric
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#1732772331392996-559: A permanent plant. The 200,000 square-foot leased plant began in June 1971. In 1974, there were 490 IBEW employee members on strike over local agreement issues. In 1975, this San Ramon Valley Plant announced a September 30 closure of its telephone transmission equipment manufacturing operations. On January 27, 1983, the Kearny facility was announced for closure due to technology changes, underutilized, and too costly to maintain. The phase out of
1079-667: A section chief and one maintenance man. In 1955, the Lawrence plant reached its peak employment at more than 2,000 employees. This Bell Labs research and development satellite had 40 Bell Telephone Laboratories engineers and 25 Western Electric employees. Carrier equipment used filters made with Polystyrene condensers at this Garfield Shops or later referred as Lawrence Shops. In 1952, the Reading plant began when Western Electric converted an old Rosedale knitting mill in Laureldale into
1162-423: A shopping center parking lot, with a remaining two buildings converted. A water tower is the remaining physical association of the industrial research complex where telephones, electronics, military equipment and business management innovations were produced by a facility that once existed. The Baltimore facility closed on February 28, 1986. The facility, which had once employed 6,200, was staffed by 65 employees on
1245-470: A statue originally named Electricity , but later renamed Spirit of Communication , which was raised to the roof of 195 Broadway on October 24, 1916. In 1915, the assets of Western Electric Manufacturing were transferred to a newly incorporated company in New York, New York , named Western Electric Company, Inc , a wholly owned subsidiary of AT&T. The sole reason for the transfer was to provide for
1328-427: A telephone not supplied by the Bell System had to first transfer the phone to the local Bell operating company, who leased the phone back to the customer for a monthly charge in addition to a re-wiring fee. In the 1970s when consumers increasingly bought telephone sets from other manufacturers, AT&T changed the policy for its Design Line telephone series by selling customers the phone housing, retaining ownership of
1411-601: A term that referred generally to all AT&T companies, of which there were five major divisions: In 1913, the federal government challenged the Bell System's growing monopoly over the phone system under AT&T ownership in an anti-trust suit, leading to the Kingsbury Commitment . Under the commitment, AT&T escaped break-up or nationalization in exchange for divesting itself of Western Union and allowing non-competing independent telephone companies to interconnect with its long-distance network. After 1934,
1494-488: A wholly owned subsidiary of AT&T Co. Member telephone companies paid a fixed fraction of their revenues as a license fee to Bell Labs . As a result of this vertical monopoly , the Bell System effectively owned most telephone service in the United States by 1940, from local and long-distance service to the telephones. This allowed Bell to prohibit its customers from connecting equipment not made or sold by Bell to
1577-599: Is assisted by six Deputy Assistant Attorneys General (DAAG) who each oversee a different branch of the Division. One of the DAAGs holds the position of "Principal Deputy," that is "first among equals," and "will typically assume the powers of the Assistant Attorney General in the Assistant Attorney General's absence." As of June 25, 2015 , the division consists of these sections and offices: Western Electric Western Electric Co., Inc.
1660-690: The Bell Canada regional operating company and the Northern Electric manufacturing subsidiary of the Bell System's Western Electric equipment manufacturer. Western Electric divested Northern Electric in 1956, but AT&T did not divest itself of Bell Canada until 1975. ITT Inc. , then known as International Telephone & Telegraph Co. , purchased the Bell System's Caribbean regional operating companies. The consent decree also forced Bell to make all of its patents royalty-free . This led to substantial increases in innovation, in particular in
1743-582: The Federal Communications Commission (FCC) assumed regulation of AT&T. Proliferation of telephone service allowed the company to become the largest corporation in the world until its dismantling by the United States Department of Justice in 1984, at which time the Bell System ceased to exist. Receiving a U.S. patent for the invention of the telephone on March 7, 1876, Alexander Graham Bell formed
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#17327723313921826-714: The Federal Trade Commission (FTC). The Antitrust Division often works jointly with the FTC to provide regulatory guidance to businesses. The Division is headed by an Assistant Attorney General, who is appointed by the President of the United States with and by the advice and consent of the Senate , and reports to the Associate Attorney General . The current Assistant Attorney General for
1909-584: The Interstate Commerce Commission . The Bell trademark was used from 1921 through 1969 by both the AT&T corporation and the regional operating corporations to co-brand themselves under a single Bell System trademark. For each regional operating company, its name was placed where "name of associated company" appears in this template version of the trademark. Bell system telephones and related equipment were made by Western Electric ,
1992-551: The 1920s. In 1923, construction began on the second factory located in Kearny, New Jersey . The location was known as Kearny Works and in 1925 began telephone cable production. On June 15, 1928, Western Electric employees, photographed by Rosenfeld and Sons, were pictured, in a groundbreaking ceremony , for their expansion of the Kearny Works manufacturing facility at 110 Central Ave, Kearny, New Jersey. Kearny Works would achieve
2075-466: The 1921 to 1939 Bell System trademark shown above. United States Department of Justice Antitrust Division The United States Department of Justice Antitrust Division is a division of the U.S. Department of Justice that enforces U.S. antitrust law . It has exclusive jurisdiction over U.S. federal criminal antitrust investigations and prosecutions. It also has jurisdiction over civil antitrust enforcement, which it shares with
2158-513: The 1984 break-up to its reunion with the new AT&T in 2006. Similarly, cessation of using either the Bell name or logo occurred for many of the other companies more than a decade after the 1984 break-up as part of an acquisition-related rebranding. The others have only used the marks on rare occasions to maintain their trademark rights, even less now that they have adopted names conceived long after divestiture. Examples include Verizon, which still used
2241-429: The 1984 break-up, the Bell System had the following corporate structure : On January 1, 1984, the former components of the Bell System were structured into the following Regional Bell Operating Companies (RBOCs), which became known as Baby Bells. After 1984, multiple mergers occurred of the operating companies and between them, so that some components of the former Bell System are now owned by companies independent of
2324-425: The Antitrust Division is Jonathan Kanter , who was sworn into office November 16, 2021. On February 25, 1903, Congress earmarked $ 500,000 for antitrust enforcement. On March 3, 1903, Congress created the position of Antitrust AG, with a salary to be paid out of the funds earmarked for antitrust enforcement. The 1904 DOJ Register identified two professional staffers responsible for enforcement of antitrust laws, but
2407-529: The Bell System operating companies were using their near-monopoly in telecommunications to attempt to establish unfair advantage in related technologies. The outcome was a 1956 consent decree limiting AT&T to 85% of the United States' national telephone network and certain government contracts, and from continuing to hold interests in Canada and the Caribbean . The Bell System's Canadian operations included
2490-433: The Bell System's reach was truly gargantuan. Even during the period from 1956 to 1984, the Bell System's dominant reach into all forms of communications was pervasive within the United States and influential in telecommunication standardization throughout the industrialized world. The 1984 Bell System divestiture brought an end to the affiliation branded as the Bell System. It resulted from another antitrust lawsuit filed by
2573-590: The Bell Telephone Company in 1877, which in 1885 became AT&T. When Bell's original patent expired 15 years later in 1894, the telephone market opened to competition and 6,000 new telephone companies started while the Bell Telephone company took a significant financial downturn. On April 30, 1907, Theodore Newton Vail returned as President of AT&T. Vail believed in the superiority of one national telephone system and AT&T adopted
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2656-586: The Bell logo on its trucks and payphones until it updated its own logo in 2015, and Qwest, formerly US West , which licenses the Northwestern Bell and Mountain Bell names to Unical Enterprises, who makes telephones under the Northwestern Bell name. In 1984, each regional Bell operating company was assigned a set list of names it was allowed to use in combination with the Bell marks. By 2022, all these Bell System names had disappeared from
2739-465: The Caribbean regional operating companies were considered part of the Bell System proper before the break-up. Nippon Electric was considered a more distant affiliate of Western Electric, and through its own research and development adapted the designs of Western Electric's North American telecommunications equipment for use in Japan, which to this day gives much of Japan's telephone equipment and network
2822-521: The Division was not formally established until 1919. Attorney General A. Mitchell Palmer “effected the first important reorganization" of DOJ since it was first established in 1870. Palmer organized DOJ into divisions, and placed the AtAG “in charge of the Anti-Trust Division.” Palmer's annual report for the fiscal year ending June 30, 1919 contained the first public statement that DOJ had
2905-489: The U.S. Department of Justice in 1974, alleging illegal practices by the Bell System companies to stifle competition in the telecommunications industry. The parties settled the lawsuit on January 8, 1982, superseding the former restrictions that AT&T and the DOJ had agreed upon in 1956. Before the 1956 break-up, the Bell System included the companies listed below, plus those listed in the pre-1984 section. Northern Electric and
2988-524: The U.S. Military Telegraphs during the American Civil War , advanced money for Gray to buy the half-interest and become a partner when Gray and Barton moved operations to Chicago . Gray and Barton previously knew Stager and an agreement was signed on November 18, 1869, to launch the company as Gray & Barton. The firm was open for business by the end of the year in Chicago. In December 1869,
3071-577: The United States business landscape. Cincinnati Bell was the last to use the name, until 2022 when it rebranded to Altafiber , though it still has Cincinnati Bell as its corporate name. Southwestern Bell used both the Bell name and the circled-bell trademark until SBC opted for all of its companies to do business under the "SBC" name in 2002. Bell Atlantic used the Bell name and circled-bell trademark until renaming itself Verizon in 2000. Pacific Bell continued operating in California under that name (or
3154-475: The United States for much of the 20th century, Western Electric's equipment was widespread across the country. The company was responsible for many technological innovations, as well as developments in industrial management. In 1856, George Shawk, a craftsman and telegraph maker, purchased an electrical engineering business in Cleveland, Ohio . In January 1869, Shawk had partnered with Enos M. Barton in
3237-459: The Western Electric brand. Early on, Western Electric also managed an electrical equipment distribution business, furnishing its customers with non-telephone products made by other manufacturers This electrical distribution business was spun off from Western Electric in 1925 and organized into a separate company, Graybar Electric Company , in honor of the company's founders, Elisha Gray and Enos Barton. Bell Telephone Laboratories , created from
3320-547: The assets of its parent, the American Bell Telephone Company. American Bell had created AT&T to provide long-distance calls between New York and Chicago and beyond. AT&T became the parent of American Bell Telephone Company, and thus the head of the Bell System, because regulatory and tax rules were leaner in New York than in Boston, where American Bell was headquartered. Later, the Bell System and its moniker "Ma Bell" became
3403-406: The construction of Hawthorne Works first buildings were authorized by Barton. In 1907, the research and development staffs of Western Electric and AT&T were consolidated to 463 West Street, New York. The location served the newly Western Electric Engineering Department for the responsibility of the testing and inspection of its telephones and equipment. AT&T's Engineering Department retained
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3486-444: The electronics and computer sectors. Steven Weber 's The Success of Open Source characterizes the consent decree as important in fostering the open source movement. The Bell System also owned various Caribbean regional operating companies, as well as 54% of Japan's NEC and a post- World War II reconstruction relationship with state-owned Nippon Telegraph and Telephone (NTT) before the 1956 boundaries were emplaced. Before 1956,
3569-534: The elimination of half of the Division's criminal enforcement offices will increase travel expenses and diminish the likelihood of uncovering local or regional conspiracies. Like mob activity in Topeka KS The head of the Antitrust Division is the Assistant Attorney General for Antitrust (AAG-AT) appointed by the President of the United States . Jonathan Kanter was confirmed as Assistant Attorney General on November 16, 2021. The Assistant Attorney General
3652-494: The engineering department of Western Electric in 1925, was half-owned by Western Electric, the other half belonging to AT&T. The company began to increase its presence in other sectors of industry for new products. In September 1931, the Teletype Corporation headquartered in Chicago on Wrightwood Ave, became a subsidiary of Western Electric and it was a manufacturer of teletypewriters for TWX services. There
3735-448: The facility jobs started in fall of 1983 and the 59 year old, 3 million-square-foot, 144-acre facility was sold officially on May 21, 1984, with nearly 1000 last employees left at the plant. The former facility was purchased and later existed as warehouses, distribution, research and light manufacturing facilities. As modern facilities around the country were used for the operations of Hawthorne and its productions distributed, announcement
3818-650: The first telephone exchange in New Haven, Connecticut . Within a few years local exchange companies were established in every major city in the United States. Use of the Bell System name initially referred to those early telephone franchises and eventually comprised all telephone companies owned by American Telephone & Telegraph , referred to internally as associated companies , regional holding companies , or later Bell operating companies (BOCs). In 1899, American Telephone & Telegraph (AT&T) acquired
3901-464: The former Western Union repair shop of Cleveland, to manufacture burglar alarms, fire alarms, and other electrical items. Both men were former Western Union employees. Shawk, was the Cleveland shop foreman and Barton, was a Rochester, New York telegrapher. During this Shawk and Barton partnership, one customer was an inventor sourcing parts and models for experiments. That inventor was Elisha Gray ,
3984-436: The headquarters in Chicago had moved to a new building on Clinton Street, the New York shop had moved two city blocks to a new building on Greenwich Street, and both Boston and Indianapolis factories closed. The Antwerp location was at the same location under Western Electric operations until sold in 1925 to ITT. In April 1879, the New York shop was located at 62-68 New Church Street, Lower Manhattan, New York. Western Union had
4067-613: The high volume of manufacturing products. The North Carolina Works was located in Winston-Salem, North Carolina. The Merrimack Valley Works location was in North Andover, Massachusetts . The Kansas City Works location was in Lee's Summit, Missouri . A Lawrence, Massachusetts factory opened on November 13, 1951, and was called the "Garfield Shops." The location started with as a wired units job and there were thirteen workers with
4150-520: The historic Bell System, including foreign telecommunications firms. The structure of the companies today is as follows. The following telephone companies are considered independent of the Baby Bells : The following companies were divested after 1984 from AT&T Corp. or the Baby Bells and do not provide telephone service. Beginning in 1991, the Baby Bells began to consolidate operations or rename their Bell Operating Companies according to
4233-491: The internal mechanical and electrical components, which still required paying AT&T a monthly leasing fee. Starting in 1983 with the breakup of the Bell System, Western Electric telephones could be sold to the public under the brand name American Bell, a newly created subsidiary of AT&T. One of the terms of the Modification of Final Judgment in the Bell System divestiture procedures prohibited AT&T from using
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#17327723313924316-444: The issuance of a non-voting preferred class of capital stock, disallowed under the statutes of the state of Illinois. In the Bell System, telephones were leased by the operating companies to subscribers, and remained the property of the Bell System. Service subscribers paid a monthly fee included in the service charge, while paying additionally for special types or features of telephones, such as colored telephone sets. Equipment repair
4399-581: The largest square foot size of 3,579,000 throughout the years and be the second largest plant for Western Electric manufacturing plants built before the 1930s, only second in size to the Hawthorne Works at Cicero, Illinois . Here is an aerial image of Kearny Works, between 1925 and 1930, held in the Library Company of Philadelphia. with the picture of the entire plant and railways. In 1929, work began at Point Breeze, Baltimore, Maryland as
4482-591: The location was at 162 South Water Street in Chicago. On December 31, 1869, he entered a partnership with Barton, and later sold his share to inventor Gray. In 1872, Barton and Gray moved the business to Clinton Street, and incorporated it as the Western Electric Manufacturing Company on the Near West Side of Chicago. They manufactured a variety of electrical products including typewriters, alarms, and lighting and had
4565-414: The logo, and other related trademarks, are held by each of the remaining Bell companies, namely AT&T, Verizon , CenturyLink , and Altafiber . International rights to the marks, except for Canada , are held by a joint venture of these companies, Bell IP Holdings . Of the various resulting 1984 spinoffs, only BellSouth actively used and promoted the Bell name and logo during its entire history, from
4648-560: The name Bell after January 1, 1984; prior to this, AT&T's plan was to market products and services under the American Bell name, accompanied by the now familiar AT&T globe logo. In 1903, Western Electric began construction of the first buildings for Hawthorne Works on the outskirts of Chicago . In 1905, the Clinton Street power apparatus shops moved to Hawthorne. Further expansion of large factories began in
4731-479: The operations for pulp cable relocated to Phoenix Works. A loss of 400 positions were expected eliminated in the process. After the Bell System breakup, Western Electric facilities were known as AT&T Technologies facilities in 1984. The three largest and oldest facilities, Hawthorne Works, Kearny Works, and Baltimore Works were closed shortly after due to "excess space". Western Electric used various logos during its existence. Starting in 1914 it used an image of
4814-473: The parent company name, such as "Bell Atlantic – Delaware, Inc." or "U S WEST Communications, Inc.", to unify their corporate images. The Bell System service marks, including the circled-bell logo, especially as redesigned by Saul Bass in 1969, and the words Bell System in text, were used before January 1, 1984, when the AT&T divestiture of its regional operating companies took effect. The word mark Bell ,
4897-612: The reduced production of home telephones because of the war, began to have a backlog of two million orders in late 1945 for the Hawthorne plant. Western Electric had acquired a former Studebaker plant on Archer Avenue (Chicago, Illinois) for assemblers that produced out one hundred thousand Model 302s telephones by March 1946. After World War II, the National Carbon Company left a facility that had manufactured United States Navy submarine batteries and underwater detonators in Winston-Salem. This facility at 800 Chatham Road,
4980-459: The responsibility for the growth of the Bell System with compatible equipment and service. Gradually the consolidation improved and advanced the telephony response to expanding use. On July 24, 1915, employees of the Hawthorne Works boarded the SS Eastland in downtown Chicago for a company picnic. The ship rolled over at the dock and over 800 people died. In 1920, Alice Heacock Seidel
5063-460: The shortened "PacBell" nickname) until SBC purchased it. In Canada, Bell Canada ( divested from AT&T in 1975) continues to use the Bell name. For the decades that Nortel was named Northern Telecom, its research and development arm was Bell Northern Research. Bell Canada and its holding-company parent, Bell Canada Enterprises , still use the Bell name. They used variations of the circled-bell logo until 1977, which until 1976 strongly resembled
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#17327723313925146-865: The slogan One Policy, One System, Universal Service. This became the company's philosophy for the next 70 years. Under Vail, AT&T began acquiring many of the smaller telephone companies including the Western Union Telegraph Company . In response to the threat of antitrust action from government, AT&T entered into an out-of-court agreement, known as the Kingsbury Commitment with the Department of Justice in 1913. AT&T committed to sell its $ 30 million in Western Union capital stock, allow competitors to interconnect with its long-distance telephone network, and not acquire other independent companies without permission from
5229-404: The system without paying fees. For example, if a customer desired a style of telephone not leased by the local Bell company, the customer was required to purchase the instrument at cost, furnish it to the telephone company for rewiring, pay a service charge, and a monthly lease fee for using it. In 1949, the United States Department of Justice alleged in an antitrust lawsuit that AT&T and
5312-417: The telephone market and Bell acquiring Western Electric in 1881. This purchase was a crucial step in standardizing telephone instruments and concentrating manufacturing in a single entity. In the company's first few years as Western Electric, there were five manufacturing locations located at Chicago (220-232 Kinzie St.) New York, Boston, Indianapolis and Antwerp, Belgium. The locations were not permanent, as
5395-464: The third manufacturing location, Baltimore Works, began its occupancy by 1930 for various cable and wire production. Two manufacturing plants in Lincoln, Nebraska were leased in 1943 to Western Electric to manufacture signal corps equipment and later production demands from Hawthorne Works. The Eighth Street building, known as "Lincoln Shops," and the 13th Street building were the locations, the latter
5478-539: The three oldest manufacturing facilities for product manufacturing transfers and employee expected layoffs. The Kearny Works facility that made systems to convert commercial power to run various telecom equipment, would transfer remaining work to Dallas Works. The shutdown of the plant would eliminate 4,000 jobs. The Baltimore Works facility that made connectors and protectors for wire and cable had work moved to Omaha Works. A total of 2,300 jobs were potentially eliminated after that announcement. The Hawthorne Works facility, had
5561-519: The variety of new designs introduced into the market place. This led Western Electric to pursue extreme reliability and durability in design to minimize service calls. In particular, the work of Walter A. Shewhart , who developed new techniques for statistical quality control in the 1920s, helped lead to the quality of manufacture of Western Electric telephones. AT&T also strictly enforced policies against using telephone equipment by other manufacturers on their network. A customer who insisted on using
5644-668: Was agreed on September 3, 1974, with employees at 13 plants returning to work. Only the company's subsidiary Teletype Corporation plant in Little Rock, Arkansas and two plants, the Columbia River Switching Equipment factory in Vancouver, Washington and in San Ramon, California were subject to ratification or in negotiations to settle local agreements. In 1983, corporate announcements were made at
5727-437: Was an American electrical engineering and manufacturing company that operated from 1869 to 1996. A subsidiary of the AT&T Corporation for most of its lifespan, Western Electric was the primary manufacturer, supplier, and purchasing agent for all telephone equipment for the Bell System from 1881 until 1984, when the Bell System was dismantled . Because the Bell System had a near-total monopoly over telephone service in
5810-703: Was called "Buffalo Plant." A satellite shop was established in Jersey City, New Jersey called "Marion Shops" and occupied in 1947. This location produced portable test sets, rectifiers, and power equipment for the main plant known as the Kearny Works. In July 1948, the equipment plant at Duluth, Minnesota was involved in the National Labors Act with bargaining units of IAM and IBEW. After 1947, eight Works locations were built and occupied by 1961 at Allentown, Indianapolis, North Carolina, Merrimack Valley, Omaha, Columbus, Oklahoma City, and Kansas City for
5893-558: Was done in 1884 to Chicago and New York factories by Charles Williams becoming a Western Electric Manager. In 1888–1889, Western Electric built a 10-story factory building at 125 Greenwich Street in Lower Manhattan, to manufacture some of the first telephones. The New York shop that was renting the Western Union building moved to this building. In preparation for the Chicago Worlds Fair of 1892, Western Electric
5976-606: Was expanding beyond making telephone equipment and American Bell noticed its division from a manufacturing business to a supply business. Western Electric decided to split in 1921, the supply department from the manufacturing business and this led later to a separate entity. In 1925, ITT purchased the Bell Telephone Manufacturing Company of Brussels, Belgium, and other worldwide subsidiaries from AT&T, to avoid an antitrust action. The company manufactured rotary system switching equipment under
6059-504: Was forced by a lawsuit to sell back to Milo Kellogg. The Manufacturers Junction Railway Company was incorporated in January 1903 to provide rail connections to major railroad systems. There were approximately 13 miles of track in and out of Hawthorne Works for rail freight of inbound materials and outbound finished products. Western Electric had a tenure of 50 years up to 1952, in the responsibility and operation of its use for Hawthorne and other nearby industrial companies. Also, in 1903,
6142-576: Was included in the fees. This system had the effect of subsidizing basic telephone service, keeping local telephone service inexpensive, under $ 10 per month. After divestiture, basic service prices increased, and customers became responsible for inside building wiring and telephone equipment. The Bell System had an extensive policy and infrastructure to recycle or refurbish equipment taken out of service, replacing all defective, weak, or otherwise unusable parts for new installations. This resulted in extraordinary longevity of Western Electric telephones, and limited
6225-612: Was located in Montgomery, Illinois, it reported and supported production of the main plant, Hawthorne Works in Cicero, Illinois. The Kearny Works facility had satellite shops that were apart from its location but were part of the manufacturing process. Located in Fair Lawn, New Jersey and occupied since 1956, the "Fair Lawn Shops" produced coils, resistors, transformers, and keys under Kearny manufacturing. The Indianapolis Works facility
6308-611: Was made on June 24, 1983, for closure. Between 1975 and 1983, the Foundry and most of the Telephone Apparatus buildings were demolished and in 1986–1987, the remaining Telephone Apparatus buildings and the Executive Tower were demolished. The Hawthorne facility was in operations for 83 years when it closed its doors in 1986 and torn down for a shopping center. Another building was demolished on April 10, 1994, for
6391-441: Was passed to Western Electric Company and operated until 1966 for production of national telephone companies' switches and circuits. Additionally, the location complex was one of three nationwide Western Electric field engineering sites. The mid-1940s brought occupancy to locations. A plant was established in 1946 at Tonawanda, New York to produce equipment wiring cable, telephone cords, enamelled wire, and insulated wire. This plant
6474-477: Was producing telephone sets and components with a satellite shop. The Indianapolis shop known as "Washington Street Shop" produced miscellaneous subscriber apparatus since its occupancy in 1957. The "Lawrence Shop" that was occupied in 1957 produced BELLBoy receivers, telephone repeaters and carrier products under Merrimack Valley Works. The "Clark Shop" was occupied in 1959 at Clark, New Jersey and manufactured submarine cable repeaters and components. The satellite shop
6557-419: Was responsible for the organized Bell System sales activities and merchandising of apparatus for the 900 long-distance circuit from New York to Chicago. In 1897, the building at 463 West Street, New York was constructed and housed the New York shop as well as the company Eastern headquarters. Western Electric was the first company to join in a Japanese joint venture with foreign capital. In 1899, it invested in
6640-488: Was sold in 1950 for $ 500,000 to Western Electric. The plants were closed after the Omaha Works opened in 1958. Western Electric acquired in 1943, the old Grad and Winchell buildings located at Haverhill, Massachusetts. New Jersey supervisors taught former textile and shoe workers the manufacturing process of coil winding. The employees' acquired skills demonstrated their versatility in this new manufacturing process for
6723-843: Was the acquisition in 1931 of the Nassau Smelting and Refining plant located in Totenville, Staten Island, New York to recycle Bell System scrap wire, metal, and becoming a subsidiary of Western Electric. The acquisition of the Queensboro factory in Middle Village, New York became a Western Electric Shop in the 1930s to produce wooden telephone booths. In 1974, the IBEW members at Western Electric's 16 plants went on strike over improved benefits, cost‐of‐living adjustments, and pay increase for up to three years. The ratified contract
6806-432: Was the first female Western Electric employee to be given permission to stay on after she had married. This set a precedent in the company, which previously had not allowed married women in their employ. Miss Heacock had worked for Western Electric for sixteen years before her marriage, and was at the time the highest-paid secretary in the company. In her memoirs, she wrote that the decision to allow her to stay on "required
6889-486: Was under Kearny Works. The 1960s and 1970s had various new facilities built and occupied by Western Electric to produce new technologies such as electronic switching equipment (Dallas and North Illinois), fiber optic cable networks (Atlanta), power systems (Phoenix), business equipment (Denver), and telephone equipment (Shreveport). In 1970, Western Electric purchased land in Bishop Ranch, San Ramon, California for
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