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1889 The Final Structure: AT&T was formally designated as the central organization of the Bell System. The directors of the American Bell Telephone Company (which had been incorporated in Massachusetts) conveyed all of the assets, stocks and property to AT&T. It immediately started to build up its own "Long Lines Engineering Department" to plan for the wide-spread linking of the country. Within a year. AT&T formally created the Department of Long-Distance Lines. This department, changed in name only to the "Long Lines Department" in 1917, was from then on responsible for all telephone traffic links between the individual operating companies.
1889 The Final Structure: AT&T was formally designated as the central organization of the Bell System. The directors of the American Bell Telephone Company (which had been incorporated in Massachusetts) conveyed all of the assets, stocks and property to AT&T. It immediately started to build up its own "Long Lines Engineering Department" to plan for the wide-spread linking of the country. Within a year. AT&T formally created the Department of Long-Distance Lines. This department, changed in name only to the "Long Lines Department" in 1917, was from then on responsible for all telephone traffic links between the individual operating companies.
1900 Operating Companies: The various Bell operating companies, which handled the direct connections among local telephone sets, became more numerous during this period. Through licensing, acquisition and purchase, such companies as New York Telephone, New Jersey Bell, Pacific Bell, Illinois Bell, etc., were created during this period.
1909 Western Union acquisition: Through Theodore Vail's leadership, AT&T acquired a controlling interest in Western Union in 1909 and gave Vail the presidency of it. At this time, Western Union was in disastrous condition, owing to years of neglect. Vail proceeded to put a new face on the 25,000 locations, improving the public image. He ordered the offices cleaned and painted: he created service innovations such as reduced-rate night and weekend letters. He especially showed his genius as a charismatic leader by visiting employees of all ranks to hear of their problems, giving 50% wage boosts, making company loans to those in need, and instituting a pension and benefit plan. Needless to say, morale and business soared! However, just four years later in 1915, the U.S. Government forced the divestiture of Western Union from the Bell System.
1917 Government control: Acting with emergency war powers, President Wilson placed the railroads, telephone and telegraph systems under government control to assure efficlency and best usage for the prosecution of World War I.
1918 Nationalization: In July, Pesident Wilson proclaimed that all telephone and telegraph operations would be under the possession and control of the Post Office Department. Theodore Vail went to Washington, met with the chief of the Post Office Department, and in a rare burst of cooperation, the two men convinced the President that this was not in the best interests of the United States. In July 1919, the government returned the company to the owners.
1925 Consolidation: All research and development operations throughout the Bell System were consolidated into a new entity: Bell Telephone Laboratories. The Bell System was heading into its most glorious years before its divestiture in 1982. (written by a former Bell System employee)
