Background of the investigation; withholding of files by the

IX

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1

2

6

10

14

16

18

29

29

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34

35

Department of Justice..

39

Files obtained from other sources..

42

Action of the Department of Defense in making internal docu-

ments available to A. T. & T_____

43

Nature of the committee's hearings.

44

The course of the negotiations.-

Efforts of the defendants and the Department of Defense in 1952

and in the first part of 1953 to obtain postponement of trial__

The 1953 negotiations regarding disposition of the case.

Dr. Kelly's intercession with the Defense Department during the

period he served as a department WOC consultant..........

45

45

51

57

The 1954 negotiations..

59

The 1955 negotiations..

65

The role of the Federal Communications Commission..

Adequacy of FCC regulation of interstate telephone rates___

Attorney General Brownell's decision to settle without divorce-

73

78

ment or limitation of Western's role as supplier of equipment

to the Bell System....

Reasons advanced to justify Attorney General's decision..

The final negotiations and entry of the decree.

Effect of decree..

General effect on defendants' operations___

The import and effect of each provision of the decree.......

Patents and technical information-Provisions of sections

X-XIV..

Effect of patent and technical information requirements.

Chapter III-Oil Pipe Line consent decree...

1. The oil pipeline industry..

Industry control through pipelines_

Attempts to control pipeline abuses.

Pipeline dividends___

2. The 1940 antitrust program in the petroleum industry.

The API case_-

Elkins Act cases_

Results...

Chapter III-Oil Pipe Line consent decree-Continued

3. Negotiations for the consent decree..

Sequence of negotiations_--

1. First phase: September 30, 1940, to February 10, 1941.

2. Second phase: February 10, 1941, to May 28, 1941.

3. Third phase: May 28, 1941, to September 16, 1941-

4. Fourth phase: September 16, 1941, to December 23,

1941..

The consent decree__.

Great Lakes Pipe Line amendment..

4. Enforcement...

General..

Arapahoe case_

Service Pipe Line case.

Tidal case__

Texas case_

Activities of Service Pipe Line__

(a) Multiple reports to the Attorney General_

(b) 1947 program__

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197

(c) The Bergson opinion.

205

Conferences with the Antitrust Division__.

206

(d) Summary of Service Pipe Line Reports to the Attor-

(f) Status at Department of Justice..

5. Interstate Commerce Commission regulation of oil pipelines.

Extent of ICC regulation__

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232

234

(g) Subsequent Department of Justice action.___

235

243

244

Valuation of oil pipelines.

Reasons for valuations.

Valuation methods used by the ICC.

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250

254

Differences between ICC's railroad valuations and pipeline

valuations___

Role of API in ICC pipeline valuations.

262

265

Relationship of API committee activities to Oil Pipe Line

consent decree__

I. Rogers, William P., Deputy Attorney General, letter, July 13,

1956, to Hon. Emanuel Celler..........

329

TI. McGrath, J. Howard, Attorney General, letter, October 19,

1950, to the Secretary of Defense...

330

inletter, Thomas K., Secretary of the Air Force, letter, March

20, 1952, to the Attorney General..

331

A. T. & T-Continued

IV. Perlman, Philip S., Acting Attorney General, letter, April 30,

1952, to Hon. Robert A. Lovett-

V. Lovett, Robert A., Secretary of Defense, letter, May 26, 1952,

to the Attorney General...

VI. Lovett, Robert A., Secretary of Defense, memorandum, Decem-

ber 23, 1952, on Western Electric antitrust case-

VII. Wilson, C. E., Secretary of Defense, letter, July 10, 1953, to the

Attorney General..

VIII. Wood, J. E. F., notes on Washington conference, May 4, 1954--

IX. Brucker, Wilber M., General Counsel, letter, December 6, 1954,

to Hon. Stanley N. Barnes---

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333

335

337

339

342

343

X. Price, T. Brooke, pencilled notes on conference at dinner at

Edward A. Foote's home, January 1955--

344

XI. Brownell, Herbert, Jr., Attorney General, letter, November 8,

1955, to Hon. George C. McConnaughey..

346

XII. McConnaughey, George C., Chairman, letter, November 30,

1955, to the Attorney General_...

XIII. United States v. Western Electric Company, Incorporated, and
American Telephone & Telegraph Company, civil action No.
17-49.

Oil Pipelines:

XIV. United States v. The Atlantic Refining Co., et al., civil action

No. 14060, Complaint and Final Judgment...

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370