2002
DOI: 10.2307/4127707
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Constructing an Industrial Divide: Western Union, AT&T, and the Federal Government, 1876–1971

Abstract: An 1879 contract between Western Union and Bell partitioned the electrical communications industry between the telegraph and telephone markets. Historians typically view this contract as the start of both Western Union's decline and Bell's rise, and they have treated these as largely separate processes. This article argues instead that these processes were linked by a porous and shifting boundary between the two industries. Legal, technical, and regulatory factors interacted to shape this boundary over the nex… Show more

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Cited by 21 publications
(9 citation statements)
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“…Understandably, neither Hoover nor his superiors had any interest in sharing the fruits of their surveillance, authorized or not, with congressional committees. 81 On a wide range of issues, including privacy, surveillance, and the rights of congressional witnesses, the Black Committee represented an important turning point in the history of congressional investigations. While Black never suffered anything approaching a "have you no shame" Joseph Welch moment, he had unintentionally established a legal standard that constrained his successors.…”
Section: Conclusion and Historical Assessmentsmentioning
confidence: 99%
“…Understandably, neither Hoover nor his superiors had any interest in sharing the fruits of their surveillance, authorized or not, with congressional committees. 81 On a wide range of issues, including privacy, surveillance, and the rights of congressional witnesses, the Black Committee represented an important turning point in the history of congressional investigations. While Black never suffered anything approaching a "have you no shame" Joseph Welch moment, he had unintentionally established a legal standard that constrained his successors.…”
Section: Conclusion and Historical Assessmentsmentioning
confidence: 99%
“…AT&T's technical innovations also accelerated the transition from Morse code transmission to printing telegraphs, culminating in the news-friendly teletype. 62 AT&T's rise as the dominant telecommunication firm enabled it in 1909 to acquire a controlling interest in Western Union. Although AT&T was forced to divest its Western Union holdings within a few years, its bold maneuver presaged telegraphy's future.…”
Section: The Contours Of Telegraph Technology and Political Economymentioning
confidence: 99%
“…For instance, it refused telegraph service to newspapers, hotels, and other establishments that subscribed to Bell telephone service (Brock, 1981). However, after two years of vigorous competition, WU abruptly decided to withdraw from the telephone business because of increasing doubts about the validity of its patents and also the need to focus attention and resources against efforts by Jay Gould to takeover the telegraph business (Hochfelder, 2002). WU sought an out of court settlement for the patent suit.…”
Section: Vail's Vision and The Development Of The Bell Systemmentioning
confidence: 99%
“…It leased private lines, for both telephony and telegraphy, on this link and thereby breached the boundary WU thought it had secured for itself in the 1879 agreement. As long‐distance telephony grew, businesses started using it more and more, at the expense of telegraphy (Hochfelder, 2002). In terms of cost, telegraphy retained competitive advantage for some time.…”
Section: Vail's Vision and The Development Of The Bell Systemmentioning
confidence: 99%