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December, 1972
Vol. 21, No. 12
COMPUTER
MAPMAKING
Telephone Rate Structures: A Squeeze for the Average
American Consumer
Does Telephone Regulation Protect the User?
Telephone Service: The Rules of the Game when the
Game Is Changing
The Present Role of Governments in the World
Computer Industry
The Frenchman Who Was To Kill Kennedy
The Raid on Democratic Party Headquarters
(The Watergate Incident) - Part 3
- Francis J. Riordan
- Bernard Strassburg
- T. L. Simis
- c.
W. Spangle
- Philippe Bernert and Camille Gilles
- Richard E. Sprague
INVENTORY OF THE 36 ISSUES OF
- TITLES AND SUMMARIES
THE C&A NOTEBOOK ON COMMON SENSEI FIRST YEAR
VOLUME 1
1. Right Answers - A Short Guide to Obtaining Them
A collection of 82 principles and maxims. Example:
"The moment you have worked out an answer, start
checking it - it probably isn't right."
2. The Empty Column
A parable about a symbol for zero, and the failure
to recognize the value of a good idea.
3. The Golden Trumpets of Yap Yap
4. Strategy in Chess
5. The Barrels and the Elephant
A discussion of truth vs. believability.
6. The Argument of the Beard
The accumulation of many small differences may
make a huge difference.
7. The Elephant and the Grassy Hillside
The concepts of the ordinary everyday world vs.
the pointer readings of exact science.
8. Ground Rules for Arguments
9. False Premises, Valid Reasoning, and True Conclusions
The fallacy of asserting that the premises must first
be correct in order that correct conclusions be
derived.
10. The Investigation of Common Sense
11. Principles of General Science and Proverbs
8 principles and 42 proverbs.
12. Common Sense - Questions for Consideration
13. Falling 1800 Feet Down a Mountain
The story of a skimobiler who fell 1/3 of a mile
down Mt. Washington, N.H., and was rescued the
next day; and how he used his common sense and
survived.
14. The Cu It of the Expert
15. Preventing Mistakes from Failure to Understand
Even though you do not understand the cause of
some trouble, you may still be able to deal with
it. The famous example of a cure for malaria.
16. The Stage of Maturity and Judgement
17. Doomsday in St. Pierre, Martinique - Common Sense
vs. Catastrophe
How 30,000 people refusing to apply their common
sense died from a volcanic eruption.
18. The History of the Doasyoulikes
19. Individuality in Human Beings
Their chemical natures are as widely varied as
their external features.
20. How to be Silly
71 recipes for being silly. Example: "Use twenty
words to say something when two will do."
21. The Three Earthworms
A parable about curiosity; and the importance of
making observations for oneself.
22. The Cochrans vs. Catastrophe
The history of Samuel Cochran, Jr., who ate some
vichyssoise soup.
23. Preventing Mistakes from Forgetting
24. What is Common Sense? An Operational Definition
A proposed definition of common sense not using
synonyms but using behavior that is observable.
25. The Subject of What is Generally True and Important Common Sense, Elementary and Advanced
26. Natural History, Patterns, and Common Sense
Some important techniques for observing.
27. Rationalizing and Common Sense
28. Opposition to New Ideas
Some of the common but foolish reasons for
opposing new ideas.
29. A Classification and Review of the Issues of Vol.
30. Index to Volume 1
2
VOLUME 2
31. Adding Years to Your Life Through Common Sense
32. The Number of Answers to a Problem
33. "Stupidity has a Knack of Getting Its Way"
34 and 35. Time, Sense, and Wisdom
36. Wisdom - An Operational Definition
.... 24 issues promised, 36 issues delivered, for good measure
Some Comments from Su bscribers
believe these to be the best, if not the most important,
readi ng that I have had th is year.
- Harold J. Coate, EDP Manager, St. Joseph, Mo.
Very good articles; something all managers should read.
- William Taylor, Vice President, Calgary, Alberta
As I am involved with systems work, I can always use one
of the issues to prove a point or teach a lesson.
- Edward K. Nellis, Director of Systems Development,
Pittsford, N.Y.
Thoroughly enjoy each issue.
- David Lichard, Data Processing Manager, Chicago, III.
Keep it up. All are good and thought-provoking - which
in itself is worthwhile.
- Richard Marsh, Washington, D.C.
Especially like "Right Answers".
- Ralph E. Taylor, Manager of Research and Development, West Chester, Ohio
Your tendency to deal with practical applications is very
rewarding.
- Jeffrey L. Rosen, Programmer, Toronto, Canada
PAST ISSUES: As a new subscriber, you do not miss past issues. Every subscriber's subscription starts at Vol. 1, no.
1, and he eventually receives all issues. The past issues
are sent to him usually four at a time, every week or
two, until he has caught up, and thus he does not miss
important and interesting issues that never go out of date.
GUARANTEE: (1) You may return (in 7 days) the first batch
of issues we send you, for FULL REFUND, if not satisfactory. (2) Thereafter, you may cancel at any time, and
you will receive a refund for the unmailed portion of
your subscription. WE WANT ONLY HAPPY AND SATISFIED SUBSCRIBERS.
~
- - - - - - - - - - (may be copied on any piece of paper) - - - - - - - - - - - To: Computers and Automation
815 Washington St., R8, Newtonville, Mass. 02160
) YES, I would like to try the "Notebook on Common
Sense, Elementary and Advanced". Please enter my
subscription at $12 a year, 24 issues, newsletter style,
and extras. Please send me issues 1 to 6 as FREE
PREMIUMS for subscribing.
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COMPUTERS and AUTOMATION for December, 1972
IF YOU COULD PREVENT JUST
ONE IMPORTANT MISTAKE BEFORE IT HAPPENED -
like the Democratic Party's mistake with Senator Eagleton
like the Republican Party's mistake with the Watergate Bugging
like the West German government's mistake in not catching the Arab
guerrillas before they penetrated to the Israeli Olympic Team's building
like Southern Airways' mistake in allowing three hijackers with guns on to
one of their planes
HOW MUCH
WOULD THAT BE WORTH TO YOU -- $100? -- $1000?
more?
Our considered estimate is that 10 to 20% or more of the cost of operation of most businesses is the cost of
mistakes. (Just one foreseeable mistake that "Computers and Automation" made in 1970 has cost us $4000.)
WOULDN'T YOU AGREE
THAT SENSE, COMMON AND UNCOMMON,
OUGHT TO BE THE KEY TO PREVENTING MISTAKES?
In a number of the issues of "The C&A Notebook on Common Sense, Elementary and Advanced", we examine
systematically the prevention of mistakes, such as:
No. 15:
Preventing Mistakes from Failure to Understand
No. 23:
Preventing Mistakes from Forgetting
No. 38:
The Concepts of Feedback and Feedback Control
No. 41:
Preventing Mistakes from Unforeseen Hazards
Among the forthcoming issues of the Notebook are:
- Preventing Mistakes from Camouflage
- Preventing Mistakes from Placidity
and we are planning at least 20 more issues under this general heading.
WHY NOT TRY THE NOTEBOOK ON COMMON SENSE?
GUARANTEE: (1) You may return (in 7 days) the
first batch of issues we send YOl.!,
REFUND, if not satisfactory. (2)
may cancel at any time, and you
a refund for the unmailed portion
scription.
PAST ISSUES: As a new subscriber, you do not miss past
for FULL
Thereafter, you
will receive
of your sub-
issues. Every subscriber's subscription starts at Vol. 1,
No.1, and he eventually receives all issues. The past
issues are sent to him usually four at a time, every week
or two, until he has caught up, and thus he does not miss
important and interesting issues that never go out of date.
HOW CAN YOU LOSE?
- - - - - - - - - - - - - - - - - - - - - (may be copied on any piece of paper) - - - - - - - - - - - - - - - - - - To:
COMPUTERS AND AUTOMATION
815 Washington St. , R12 Newtonville, Mass.
02160
YES, please enter my subscription to the C&A Notebook on Common Sense at $12 a year,
24 issues (newsletter style), and extras.
Please send me (as FREE premiums for subscribing) the first six issues:
1. Right Answers - A Short Guide to Obtaining Them
4. Strategy in Chess
2. The Empty Column
5. The Barrels and the Elephant
3. The Golden Trumpets of Yap Yap
6. The Argument of the Beard
I enclose $
( ) Please bill me
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Signature _____________________________ Purchase Order No. _ _ _ _ _ _ _ _ _ __
COMPUTERS and AUTOMATION for December, 1972
3
Vol. 21, No. 12
December, 1972
Editor
Edmund C. Berkeley
Assistant
Editors
Barbara L. Ch affee
Linda Ladd Lovett
Neil D. Macdonald
Software
Editor
Stewart B. Nelson
Advertising
Director
Edmund C. Berkeley
Art Director
Ray W. Hass
Contributing
Editors
John Bennett
Moses M. Berlin
Andrew D. Booth
John W. Carr III
Ned Chapin
Lesl ie Mezei
Ted Schoeters
Richard E. Sprague
Advisory
Committee
James J. Cryan
Bernard Quint
Editorial
Offices
Berkeley Enterprises, Inc.
815 Washington St.
Newtonville, Mass. 02160
617-332-5453
Advertising
Contact
THE PUBLISHER
Berkeley Enterprises, Inc.
815 Washington St.
Newtonville, Mass. 02160
617-332-5453
computers
and automation
Computers, Telephones, and the Consumer
8 TELEPHONE RATE STRUCTURES: A Squeeze for
[NT A]
the Average American Consumer
by Francis J. Riordan, President, National Association of
Regulatory Utility Commissioners; Commissioner, New
Hampshire
How lower prices and much competition on long distance
telephone communication and data transmission for affluent
users are producing much higher prices for homeowners and
residential telephone users.
11 Does Telephone Regulation Protect the User?
[NT A]
by Bernard Strassburg, Federal Communications Commission
Some of the problems in working out a pattern of
regulation which protects and helps the public when
technologies and customer requirements have been
changing and growing at a dynamic rate.
13 TELEPHONE SERVICE: The Rules of the Game when
[NT A]
the Game Is Changing
by T. l. Simis, Assistant Vice President, American Telephone
and Telegraph
A summary of recent achievements, current plans for
digital data systems, and remarks on the question of
non-competition or competition.
The Computer Industry
"Computers and Automation" is pu bIished monthly, 12 issues per year, at 815
Washington St., Newtonville, Mass. 02160,
by Berkeley Enterprises, Inc. Printed in
U.S.A. Second Class Postage paid at Boston,
Mass., and additional mailing points.
Subscription rates: United States, $9.50
for one year, $18.00 for two years. Canada:
add 50 cents a year for postage; foreign, add
$3.50 a year for postage.
NOTE: The above rates do not include
our pu blication "The Computer Directory
and Buyers' Guide"; see "Directory Notice"
on the page stated in the Table of Contents.
If you elect to receive "The Computer Directory and Buyers' Guide", please add
$9.00 per year to you r su bscription rate.
Please .address all mail to:
Berkeley
Enterprises, Inc., 815 Washington St., Newtonville, Mass. 02160.
Postmaster: Please send all forms 3579
to Berkeley Enterprises, Inc., 815 Washington St., Newtonville, Mass. 02160.
@ Copyright 1972, by Berkeley Enterprises, Inc.
Change of address:
If your address
changes, please send us both your new
address and your old address (as it appears on the magazine address imprint), and
allow three weeks for the change to be
made.
4
16 The Present Role of Governments in the
[NT A]
World Computer Industry
by C. W. Spangle, Executive Vice President, Honeywell Inc.
How foreign exports of American computer industry
products are bolstering the American balance of trade,
and how Great Britain, France, Germany, and other
countries are introducing government support to their
computer industries, and what it signifies.
20 The High Cost of Vendors' Software Practices: Why?
[NT A]
by Raymond E. Boche, California Polytechnic Univ., San
Luis Obispo, Calif.
How mandatory updating of software operating systems
is placing a heavy burden of cost on at least one computer
installation - and maybe more.
23 Oversupply of People in the Computer Field
[NT F]
by Dahl A. Gerberick, Ombudsman, Los Angeles Chapter of
the ACM
6 Post-Maturity in the Computer Field
[NT E]
by Edmund C. Berkeley, Editor, Computers and Automation,
and Montgomery Phister, Jr., Los Angeles, Calif.
COMPUTERS and AUTOMATION for December, 1972
The magazine of the design, applications, and implications
of information processing systems - and the pursuit of
truth in input, output, and processing.
-The Computer Industry (continued)
52 The Computer Directory and Buyers' Guide, 1972
Notice and contents
[NT R]
Front Cover Picture
The Profession of Information Engineer and the Pursuit of Truth
33 Unsettling, Disturbing, Critical
[NT F)
Statement of policy by Computers and Automation
31 The Reality Behind the Lies in South Vietnam
[NT A]
by Dr. George Wald, Harvard University, Cambridge, Mass.
How to make sense, how to put the pieces together about
what is actually happening in South Vietnam - as proposed
by a Nobel Laureate.
24 The Raid on Democratic Party Headquarters
[NT A]
(The Watergate Incident) - Part 3
by Richard E. Sprague, Hartsdale, N.Y.
A report on further developments in the June 1972 raid by
James McCord, Bernard Barker, and others, on National
Democratic Party Headquarters, and implications affecting
a number of Republican leaders and President Richard M.
Nixon.
34 The Central Intelligence Agency: A Short History to
[NT A]
Mid-1963 - Part 2
by James Hepburn, author of "Farewell America"
Conclusion, unverified but probably largely true, of the
secret history of the Central Intelligence Agency of the
U.S. - as a preliminary to its involvement in the
assassination of President John F. Kennedy
38 Le Francais Qui Devait Tua Kennedy
(The Frenchman Who Was To Kill Kennedy)
by Philippe Bernert and Camille Gilles, Paris France
The computer-drawn maps on
the cover show percentage changes
in population of Michigan counties
from 1960 to 1970. The maps were
produced by the Computer Institute
for Social Science Research of Michigan State University, East Lansing,
Mich. For more information, see
page 42.
NOTICE
*D ON YOUR ADDRESS IMPRINT
MEANS THAT YOUR SUBSCRIPTION INCLUDES THE COMPUTER
DIRECTORY.
*N MEANS THAT
YOUR PRESENT SUBSCRIPTION
DOES NOT INCLUDE THE COMPUTER DIRECTORY.
Departments
42
[NT A]
50
50
48
46
47
Notice
Across the Editor's Desk Computing and Data
Processing Newsletter
Advertising Index
Calendar of Coming Events
Monthly Computer Census
New Contracts
New Installations
21 Correction and Retraction
[NT F)
by William W. Harper, Pasadena, Calif., and the Editor
Key
Computers and Puzzles
23 Problem Corner
by Walter Penney, COP
[T C)
30 Numbles
by Neil Macdonald
[T C)
COMPUTERS and AUTOMATION for December, 1972
[A]
[C]
[E)
[F)
[NT]
[R]
[T]
-
Article
Monthly Column
Editorial
Forum
Not Technical
Reference Information
Technical
5
EDITORIAL
POST-MATURITY IN THE COMPUTER FIELD
1. YESI
Editorial by
Edmund C. Berkeley
Editor, "Computers and Automation"
The computer field nowadays is more than mature it is post-mature.
Just about all the most important problems of earlier
years have received remarkable and effective solutions
(though, of course, not final solutions):
Speed: Often more than a million calculating or
reasoning operations per second.
Memory: Often more than a million machine words.
Reliability: Extremely high for the central processor,
far beyond the most optimistic estimates of the
past.
Cost: Lower and lower all the time.
versatility: Literally thousands of combinations of
equipment, from rnini-computer to maxi-computer with a vast array of peripheral devices.
Programming Languages: Probably more than 200
higher-level languages, and at least another 300
less high-level.
Programs in Use: Probably well over 100,000; and
software earning more money for its suppliers
than hardware is earning.
Applications: In more than 2300 enumerated areas.
and so on and on.
The computer field started to go full blast in 1947.
Now at 25 years of age, with over 200,000 persons in it,
and over 8000 books published, the field cannot be as
essentially interesting and important for frequent current
discussions as it was when it was 10 years old, with about
15,000 people in it and probably fewer than 1000 books
published. Proceedings of meetings in 1960 and 1962 are
often more interesting and less esoteric than proceedings
of meetings in 1972.
What remains now for monthly discussion in the computer field, especially for discussion in trade magazine
articles? Answer: essentially borderline subjects, periph6
eral subjects, portions of parts of subjects. Examples:
communications; management; efficiency; comparisons of
different computer systems; unusual applications; etc.
Even the playing of chess by computer is in its more advanced stages, for computer programs to play chess are
doing better than 9 out of 10 good amateurs. The outlook now in many computer parameters is considerable
slow evolution, hardly any more a set of quick revolutions.
For confirmation of this thesis, let's take as an example
an issue of another magazine in the computer field:
Datamation for October, 1972, 188 pages. The first two
articles are "File Management Systems Revisited" and "A
Review of File Management Systems". In the first article,
the author estimates "that fewer than 1000 computer installations world wide are making use of file management
systems today". But the number of computer installations is over 60,000; and so this topic is a port,ion of a
part of the computer field. The next article is entitled
"Initial Planning of Data Communications" - again a
portion of a part of the computer field. The fourth article is "Extending the Life of DOS". Looking in the article to see what DOS means, we find that DOS means
Disc Operating System and that the article applies only to
a portion of users of equipment from IBM, only one of
the suppliers. The fifth article is "How to Write a Readable FORTRAN Program"; it deals with a phase of documentation. I clipped out that article because I am interested in documentation. But again this is a portion of a
part of a problem - not the constructing of any program
in any programming language, but only providing information to help someone coming later who needs to understand a FORTRAN program. The sixth is "Management
of Computer Failures in Clinical Care". This is a story of
unreliable customer engineer service, and of a patient in
intensive care at a hospital who died. (But the computer
company which failed to give adequate service is not even
named in the article!) The next article "Election Day
Log" is a round-by-round account of some voting versus
computer failures and successes. The last article is entitled
"International Push for Instructional Computing", again a
portion of a part of a subject. Not one of these articles
has a broad subject.
Suppose we concede the change in the computer field,
and look at the consequences.
COMPUTERS and AUTOMATION for December, 1972
1. What are the central computer field subjects that are
broad (not narrow), which should be interesting to most
computer professionals, and which are worth discussion in
a monthly magazine? Not very many any more, although
here is one:
• Frontiers of Programming - as for example a way
for modifying any computer program just as
easily as telling a human clerk to change his
procedure.
2. What are the noncentral subjects related to the computer field which are likely to be interesting to many computer professionals and many non-computer people and
which are worth discussion in a monthly magazine? Here
are some suggestions:
• Computers and Society: how computers can be a
benefit to society and not a harm - such
problems as:
privacy; credit; dictatorship; more and faster justice; more honesty and less stealing; etc.
• Computer-Assisted Occupations: the computerassisted typist; the computer-assisted psychiatrist; the computer-assisted doctor; ...
• Computer-Assisted Education: the interactive
computer, as teacher, drill sergeant, tutor, calculating prodigy, experimenting demon, tester,
scorer, guide, philosopher, and friend; ....
These subjects are interesting, important, broad, and
contain many problems of concern to society and business.
But are they a part of "The Computer Field" any more
than gasolene pollution and excessive highway construction
are part of "The Automobile Field"?
2. NOt
Montgomery Phister, Jr.
10551 Wyton Drive
Los Angeles, Calif. 90024
Thank you for the advance copy of your December editorial. I'm afraid, however, that I disagree with you in a
most fundamental way. I am in the camp of the man who
said, "After twenty years of explosive growth, the computer industry has finally reached its infancy".
Your thesis, that the computer has reached a postmaturity state, is exactly the opposite of mine. To "confirm your thesis" by reviewing an issue of Datamation
magazine is like confirming the thesis that all odd numbers
are prime by drawing one odd number out of a hat - and
coming up with the prime number 13. And your thesis is
so far removed from what I believe to be the truth, that I
hardly know where to start disputing you.
Basically, I argue as follows: Only a fraction of the
country's data is being stored, transmitted, and analyzed
automatically today. It is the cost of automatic data processing which prevents it from being used more widely.
Costs get lower every year. With the technology visible
today, stoHlge and logic costs will be 1/100 of today's
costs in five years. And I am optimistic that new technology will lead to still further reductions.
I thus see the industry continuing its growth, and accelerating its impact upon all of us by virtue of the fact
COMPUTERS and AUTOMATION for December, 1972
that units will continue to get smaller and more numerous,
and will increasingly be visible and accessible to all of us
every day.
It's easy to find confirmation of the above trends.
Look at the growth of "dedicated application computers";
look at the electronic slide rule; look at the ca1culator-ona-chip.
In fact, the last two items on your list of interesting
projects - "computer-assisted occupations" and "computer-assisted education" - seem to me to indicate that you
agree with me about the future of the industry.
Perhaps our problem is that you agree with me that we
will see digital equipment in (say) half the homes in this
country by 1984, but that you nevertheless feel we are at
present in a "post-mature" state. But at the beginning of
your editorial you seem to define post-mature as a state in
which all the important problems have been solved effectively.
I personally think we have a host of fascinating problems to solve between now and 1984.
3. COMMENTS
Edmund C. Berkeley
Editor, UComputers and Automation"
Certainly I agree with Montgomery Phister and many
other computer people in predicting a tremendous expansion of computer and peripheral equipment, communications equipment, management computer aids, new applications of computers, new modifications, new implications,
etc., as the years pass. In fact, I have predicted that computers will become more common than motor cars, and
that computers or computing service can be extremely
useful and extremely cheap. I am certain that computers
will have far more revolutionary effects on society in the
future than they have had to date.
But computers per se seem to me considerably less exciting now than they were in 1950 and 1960.
Take reliability for example. In 1950 the reliability of
electronic computers was an enormous unanswered question. Nowadays electronic computers constitute some of
the most extraordinarily reliable machinery ever produced
by human beings. The possible increase of reliability in
the future therefore resembles a percentage change from
99% to 99.99% - and that is not exciting to me.
In every new big industry of this century, a large percentage of the big important basic problems are solved in
the first 25 years of the industry's existence. The problems left over and still unsolved are likely to be much
smaller problems.
Also, let's compare computers with printed books. For
Western civilization, printed books began in Europe in the
1400's when the Gutenberg Bible was printed. Today,
over 500 years later, books and literacy still have tremendous influence and implications all over the world. But
do we find a group of over 200,000 scientists, innovators,
engineers, business men, etc., combined in a single professional grouping, all calling themselves "The Book Field"
and all working as hard as beavers to expand "The Book
Field"? No - instead, all these various people are in subfields or in other fields, and books are taken for granted
as much as ballpoint pens and electric motors.
7
Telephone Rate Structures:
A Squeeze for the Average American
Francis J. Riordan
President, Nat'l. Assoc. of Regulatory Utility Commissioners
Commissioner, New Hampshire Public Utilities Commission
Concord, N.H. 03301
"The battle lines are clearly drawn in a fight to maintain a natior.wide
system of residential telephone service at a price within reach of the
American householder."
Zugzwang for the Average American Consumer
I never thought I would see the day when the
front pages of the nation's newspapers -- ranging
in stature from the most sensational of tabloids to
the staid old New York Times -- would layout precious front page-space for days on end to chronicle
a series of chess games played by two grown men.
And yet, for several weeks this summer, there it
was. Half the civilized world, it seemed, was following in great detail the Fischer-Spassky chess
match and all of its ramifications.
One of the most intriguing aspects to me of all
these goings-on was the fantastic lexicon of terms
and phrases used in the world of chess. One word
that particularly stuck with me was the German expression "Zugzwang."
In chess, a player is said to be "in Zugzwang"
when whatever move he makes can only get him into
more trouble than he is already in. Nothing he can
do can improve his situation. We are told that
Boris Spassky was in Zugzwang at the adjournment of
the final game which he never resumed.
It seems to me that there must be times these
days when the average American consumer thinks that
if he isn't already in Zugzwang, he is headed there
on a fast track.
Inflation, rising interest rates, wage controls,
crime and the fear of it, decay of the inner cities,
flight to the suburbs, deteriorating quality of education. Surely these and other facets of modern
life must be enough to make a thinking man wonder
upon occasion, if there is no move left open to him
that will better his situation.
This, of course, is a tall order since the regulatory process touches upon so many facets of the
human condition.
Nowhere, perhaps, are the battle lines more
clearly drawn than in the fight to maintain an efficient nationwide system of residential telephone
service at a price within the reach of the average
American householder.
Rising Costs to Homeowners,
Declining Costs to Affluent Users
For some time now, state regulators have looked
on in alarm at the creeping trend of steadily rising telephone rates put upon the average homeowner
while, at the same time, costs are declining to
business and other affluent users.
Those of us in the regulatory community believe
that the universal availability of reasonably priced
telephone service is a key part of what some people
call "The American Way of Life."
For that reason, we feel that by helping to ensure the viability of that service we are, in fact,
fulfilling our oath of office to protect the "public
interest" •
I don't think I exaggerate if I say that it is
the goal of those of us in the community of state
regulators that each home in the nation should have
a telephone to provide people everywhere the ability
to quickly summon medical, police and fire protection when it is needed and to participate fully in
the life of modern day America.
And yet, we see our goal threatened by the expanding trend that I mentioned earlier, of constantly increasing residential telephone rates.
The Mission of Regulating Public Utilities
In a very real sense, it is the mission of the
men and women who regulate public utilities in
America to try and see that the consumer does NOT
find himself in Zugzwang.
(Based on a talk before the Digitronics Users Association Conference in
New Orleans, La., October, 1972.)
8
Perhaps to no one is this goal so meaningful as
it is to those in our society that are poor, disadvantaged, elderly and sick.
Presence of Telephone and Death Rate of Elderly
Only last January, the National Innovations Center, in London, England, released the results of a
year-long study by staff members upon the relationCOMPUTERS and AUTOMATION for December, 1972
ship between the availability of a residential telephone and the death rate of elderly persons. This
study showed that the death rate among those senior
citizens lacking telephones was double that of those
with telephones.
Now the official title of this panel discussion
today is "Does Regulation Protect the User?". Obviously, in the context of this conference, the
word "user" refers to commercial organizations such
as those that belong to this association.
Yet, I am sure that all of you must realize that
for a state regulator there are more users of telephone service and its offshoots than simply those
in business. There are many kinds of users ranging
from large corporations to elderly pensioners living alone in a world that is not always friendly or
hospitable to them.
If our only concern were, for example, the well
being of firms and individuals that interconnected
with common carriers, then our lives would be a
great deal simpler than they are today.
taken advantage of these profits in two ways. Not
only have the interstate long distance rates been
reduced, but the cost allocation methods have been
revised and refined from time to time, so that the
interstate long distance service now bears a larger
-- though still insufficient -- share of the costs
of operation. By this latter means, it has been
possible to keep the rates for local and state toll
services lower by about a billion dollars a year,
than would be the case if this more profitable end
of the business were lost.
Excess Earnings
Our NARUC General Counsel hit the nail on the
head when he said,
"Obviously, the only means of affording economic
relief to local users, under existing technology
and in this age of inflation, is to generate excess
earnings in interstate operations and to 'flowthrough' these earnings for the benefit of local
users by allocating more of the cost of our national
communications system to interstate operations and
thereby affording relief in local operations."
Universal Concern
But, of course, our concern must be universal.
We must consider the well being of all the citizens
of our individual states and to do so requires a
delicate balancing of a wide range of considerations
to arrive at a policy that will provide the most
benefi t for what is called the "public interest and
.
"
convenIence.
This goes straight to the heart of what regulation is all about.
"Housewives, local merchants, retired persons
and the economically disadvantaged," he said, "are
going to ultimately pick up the tab if there is to
be a policy of wide-open competition to afford
cheaper communications to interstate businesses."
I agree with our General Counsel's statement.
The public interest is not confined by state boundaries nor by the jurisdiction of any regulatory
commission.
Regulation is an Antidote
Cost Allocations
As a measure of the public interst, I should like
to refer to the statement made by our NARUC General
Counsel, Paul Rodgers, in oral argument before the
FCC last January 22, opposing the entry of new carriers into the communications field. He spoke to a
point which is little known outside of the telephone
business or outside of telephone regulatory circles.
That is the role that cost allocations play in the
economics of the telephone industry.
Regulation is, in effect, an antidote. An antidote for confusion, inefficiency, dishonest business practices, discriminatory business practices,
and the periodic attempts by strong and vested interests to impose their will upon a hapless public
that needs the service in question but is powerless
to directly enforce standards of equity.
Industries Bring Regulation on Themselves
For Failure
Because most telephone plant and expenses are
used or incurred in providing both toll service and
exchange service, these costs must be allocated or
separated between those which fall under the jurisdiction of the FCC -- that is, the interstate toll
portion, and the remainder -- that is, the state
toll and local s3rvice portions -- which come under
the jurisdiction of the state commissions.
Historically, industries bring regulation upon
themselves as a result of practicing or failing to
prevent some of the characteristics I have just mentioned.
Long Haul Communications
The development and congressional recognition of
a common carrier communications system in the domestic telecommunications field was born of a period
characterized by an "uneasy co-existence" of monopolistic and competitive market forces.
Now telephone research and technology has borne
its lushest fruit in the dramatic cost reductions
which have been made in handling long haul communications. These cost reductions, together with substantial increases in long haul traffic volumes~
have made this by far the most profitable segment
of the telephone business.
Support for Research
The research and development efforts which led to
these long haul cost reductions were supported, of
course, by all telephone company customers, both
those who use long distance services and those who
do not. Consequently, the FCC and the state commissions, working together through the NARUC, have
COMPUTERS and AUTOMATION for December, 1972
The telephone industry, without which there would
be no such thing as interconnection or specialized
common carriers, is no exception to this rule.
With the turn of the century the domestic telecommunications field was subjected to a competitive
market structure, wherein independent companies
viciously rivaled not only AT&T but each other for
exchange markets, claiming to offer through the
spurring of technological innovations,lmore diverse
service and lower prices.
However, contrary to the benefits claimed, the
competitive market structure produced wasteful
duplications in the exchange market and increased
costs to customers. Rate wars drove companies into
9
~ankruptcy;
telephone equipment was not standardized,
thereby making interconnection difficult, if not
impossible.
view the FCC rulings that opened the field of data
transmission to unrestricted competition, and liberalized previous policy regarding interconnection.
The Public Interest
The data transmission order would throw open this
specialized field along profitable, high density
routes to all comers. The result would be loss of
business and profits to the established carriers, and
reduced rates for business users.
The point to remember in all this, it seems to
me, is that in this situation Congress acted to
bring about the antidote we call regulation in order
to protect the public interest.
We are a nation of many individuals and a relatively much smaller number of large and small businesses. It is the goal of government to provide
an environment in which all can find a maximum of
prosperity. Consequently, government must provide
some restraints on those activities which favor a
few at the expense of the many. Our regulatory
agencies were established with this as their assigned task. Not everybody can agree as to how
this task can be best accomplished. But it is my
opinion that we who have been in regulation for a
long time have fostered the development of a sound,
well organized communications common carrier system
in this country -- one which is available to all.
A major cut in profits to the established carriers as a result of this and a liberalized interconnection policy, would result in yet higher rates
placed upon the residential users to make up the
difference.
Thus, yet another burden would be placed upon the
average consumer of telephone service who would, in
effect, be subsidizing the reduced rates accruing to
business users.
How does thi s square wi th the "public interest"
that utility regulators are sworn to uphold?
Opposition to the Order
I suggest that we had better take a long, hard
look to be sure where the overall public interest
lies before we tinker with its basic structure. I
suggest that we not discount the past in our considerations of communications policy, for it is certainly true that those who do not learn from history
are bound to repeat the mistakes of the past.
The answer is that it doesn't. For that reason
the NARUC has adopted a position opposing implementation of the FCC specialized common carrier ruling
and seeking to clarify the liberalized interconnection policy. The matter of the specialized common
carrier ruling is currently before the courts and,
it is hoped, a resolution may be expected soon.
Residential Users vs. Affluent Users
In-Depth Study of the Order's Effect
Which brings us back to the fear of state regulators that a universal telephone system in this
country at rates the average American can afford may
soon become a thing of the past while business and
other affluent users continue to enjoy improved services at reduced or minimal prices.
Increases and Reductions
For instance, early in 1970, at the same time the
Bell System was seeking rate increases from state
regulatory commissions totaling $600 million for local and intrastate calls, it was granted a reduction
of $237 million in long distance rates by the Federal Communications Commission.
Since that time, the FCC granted an increase in
long distance rates that brings the total net increase in such rates to a mere $13 million since
June I, 1969. In the same period of time, the
States have been forced to grant $1.5 billion in
rate increases for local calls and another $1.1
billion in requested increases are still pending.
On the subject of interconnection, the FCC has
agreed to a request by the NARUC that it undertake
an in-depth study to determine the economic impact
of its liberalized interconnection policy on the
vast majority of American telephone users who do
not have occasion to use interconnect services.
This proceeding will have profound and far-reaching economic, social and political significance to
all the people of the United States because it will
directly affect the price they pay for access to the
public communications network and the quality of
service provided by it.
The Gateway Service of Residential Telephones
This issue may have more ramifications than
simply whether it is business or residential users
who get the lower rates. Business users would do
well, I think, to dwell upon the aspect of telephone economics that I touched on a few moments ago
-- that of the immense network of residential telephones providing the gateway service wi thout which
there would be no long distance service.
Local Telephone Service
The National Association of Regulatory Utility
Commissioners (NARUC) has been and remains in the
forefront of efforts designed to right this imbalance by lessening some of the burden on the American consumer and shifting it to more affluent users
that can better afford it. After all, local telephone service is an integral part of the national
and international toll network. It is the gateway
to that network and without it, the toll network
would be worthless.
The FCC Data Transmission Order
With this background in mind, one can understand
then the concern with which the state commissions
10
Zugzwang
If spiraling rates were to deprive many American
householders of residential telephone service, then
the cost of maintaining the overall network will
have to fall somewhere else.
And where else is there but business users?
If that extreme situation were to occur, then
surely we should, all of us, consumer and businessman alike, be in Zugzwang as far as telephone usage
is concerned.
And Zugzwang, Gentlemen, as Boris Spassky discovered this summer, is a bad place to be.
[]
COMPUTERS and AUTOMATION for December, 1972
Does Telephone Regul:ation Protect the User?
Bernard Strassburg
Chief, Common Carrier Bureau
Federal Communications Commission
Washington, D.C. 20554
"The Bell System perpetuated a position of dominance by an amalgam of practices and
policies which until recent years were accepted, if not endorsed, by most, if not all
regulatory agencies, and these policies and practices foreclosed any form of competitive
entry into the market for communications service. "
lhe combined revolutions which have been taking
place in communications and related technologies
have posed a variety of problems and opportunities
for the communications industry, communications
users, and the regulator. Here I wish to examine
the effectiveness with which regulation has been responding to the challenges posed by these revolutions.
The Regulatory Task is Not Easy
Like all other public and private institutions,
regulation has its strengths and weaknesses, its
successes and its shortcomings. But whether you
score it higher on one side of the ledger than on
the other, I know that you appreciate that the regulatory task is not an easy one. It is particularly
difficult in the communications field where technologies and consumer requirements have been changing
and growing at a most dynamic rate. The challenges
presented to the regulator by these phenomena are
staggering ones and, at times, almost insuperable.
They involve the task of integrating old technologies with such new technologies as broadband cable,
computers, satellites, lasers and repeated breakthroughs in the more efficient use of the radio
spectrum. They involve the task of channelling the
inherent benefits of these advances to serve the
public interest in the availability of expanded
and efficient communications services on economic
terms.
preferable to one which would otherwise be a sterile
ritualistic regulatory performance without meaningful or credible results. The Commission's action
shocked the public and its representatives into an
awareness of the regulatory plight. Substantial
funds have now been made available, and the investigating staff is proceeding to do the job that our
statutory charter of 1934 mandates should be done.
The 1916 Bell System Policy of
President Theodore Vail
Equally important to a realistic assessment of
the effectiveness of regulation in the area of communication is an understanding of the problems presented by the structure of industry. For the principal force in the industry is of course the Bell
System which has been mainly responsible for this
nation's preeminence in communications. However,
built into the warp and woof of the Bell System is
its historic corporate policy of maintaining a domihance in all elements of communications service.
This policy was articulated in 1916 by its then
president Theodore Vail who wrote:
"The telephone system to give perfect service
must be one in which all parts recognize a common
interest and a common subordination to the interests of all; in fact it must be 'One System',
'universal', 'intradependent', intracommunicative, and operated in a common interest. Such
is the Bell System."
Resources for Doing a Job
By and large, the regulator does not lack the
will or commitment to do the job. What he most often lacks are adequate resources and skills to approach the task in a timely, informed, and effective
manner. This is due in a large measure to the fact
that regulation is too often treated as the ugly
duckling in the brood of state and Federal bureaucracies when it comes to legislative action on regulatory budgets.
This condition was meaningfully dramatized on a
national scale only last December when the FCC dismissed a part of its rate investigation of the Bell
System. We took the unprecedented action simply because we did not have the staffing required to deal
with the matter. It was the Commission's view that
because of the importance of the issues involved to
the public and the Bell System, no investigation was
(Based on a talk at the Digltronics Users Association Conference, New
Orleans, La., October 1972.)
COMPUTERS and AUTOMATION for December, 1972
The Bell System perpetuated this position of dominance by an amalgam of practices and policies which
until recent years were accepted, if not endorsed,
by most, if not all, regulatory agencies. These
policies and practices foreclosed any form of competitive entry into the market for communications
service. They blocked the interconnection of customer-owned equipment to the telephone system. They
restricted interconnection of non-common carrier
systems with the telephone network. And they controlled the rate of technological advance and innovation through vertical integration of the telephone
companies with Western Electric and Bell Laboratories.
The Vail Era
These policies and practices perhaps were defensible and in the public interest in the Vail era
of Plain Old Telephone Service; when the market for
that service was predictable, steadily growing, and
relatively homogeneous. Standardized service was
the order of the day; economies of scale were dem11
onstrably extensive; and new technologies were easily adapted by Bell to the established system.
Within this industrial and technological context,
the concept of the natural and omnipresent monopoly
found a ready and logical basis for acceptance by
the public and the regulator.
Post-War Changes
The post-war revolutions in communications and
information technologies have, as we all know, radically altered the makeup of the communications market. Those revolutions have produced a requirement
for a diversity of services and facilities either
unavailable from the established carriers or at
charges which were too costly. The FCC's computer
inquiry elicited many responses that amply supported
the conclusions that additional sources of supply
would greatly enhance and improve the nation's capability to satisfy modern day communications and
information system needs.
Competition
In response, the FCC has made an earnest attempt
to reshape traditional policies so as to better
adapt industry structure to these changing conditions of supply and demand. By various policy
actions, the FCC has sought to open up the communications environment to the technical and innovative
capabilities that exist outside of the existing carrier establishment. These new policies, of course,
tend to disturb the established order. They introduce the opportunity for competition in areas that
have heretofore been the exclusive preserve of the
monopoly. And the full extent of the economic and
social benefits that will inure from these policies
remain to be demonstrated by experience. Under
these circumstances, it is not surprising that these
policies and their implementation are born in an
atmosphere of opposition and controversy for which
the FCC serves as both the forum and the target.
It is not possible here to go into all of the
policy development of recent years. However, I
want to say a few words about interconnection which
currently poses one of the more complex and controversial issues of general concern.
An Unlawful Prohibition
Four years ago, the Commission condemned as unlawful the telephone industry's general prohibition
against the subscriber's use of equipment not provided by the carrier. AT&T responded with revisions
to its foreign attachment tariffs which established
a large measure of customer freedom to purchase or
lease equipment from non-carrier sources.
Hard-Wired Connections
The one principal restriction imposed by the new
tariff related to customer equipment which was to be
hard-wired to the switched telephone system. Interconnection in this case is permissible only when accomplished by means of a connecting arrangement and,
as required, by a network control signalling device
furnished at a charge only by the telephone company.
Whether these latter restrictions are reasonable
or not has not been decided by the FCC. They have
been accepted, at least temporarily, as necessary
and realistic while we take a look at other possible
alternatives. This is because of the concern -concurred in by a National Academy of Sciences study
-- that uncontrolled hard wire interconnections
could have adverse affects on the safety and functioning of the telephone network.
12
System of Standards
At the same time, there is widespread dissatisfaction with the connecting arrangements imposed by
the revised tariffs. Independent manufacturers and
distributors argue that the arrangements are onerous, unnecessary and economically burdensome. They
contend that they are placed at a competitive disadvantage with the telephone company and are at the
mercy of the latter for timely installation of suitable connecting arrangements. The NAS study pointed
to an alternative to such telephone company imposed
arrangements, namely, a system of prescribed standards for customer owned and maintained equipment,
including a program of enforced certification of
such equipment as well as certified installation
and maintenance.
For the past year or more, two FCC-created Advisory Committees have been wrestling with the formulation of standards and enforcement procedures. The
problems are many and difficult; so their progress,
while steady, has been necessarily slow. A major
hang up within the Committees has been in trying to
agree on the specific nature and degree of harm to
which the network would likely be exposed by interconnection -- and from which the network must be
protected by a system of standards and enforced
certification. Of course, the degree of protection
required will determine the cost effectiveness and
viability of any such program. AT&T contends for
standards and procedures that would give maximum
safeguards against types of harm that many noncarriers regard as highly remote and more theoretical than real.
Lack of Evidence of Harm
AT&T has been unable to come forward with adequate empirical data as supporting evidence of the
types of harm it claims could occur from interconnection. Such evidence should be available inasmuch as unauthorized interconnection is not a recent phenomenon. Some industry sources estimate
that illegal interconnects are running in the
several millions. Nevertheless, we have very little
documentation from AT&T as to either the performance
or the number of illegal interconnects or'their effects on the network and Bell has devised no program
by which to obtain such data. Our concern is not
only with the alleged number of illegal interconnects, but also with the growth rate of such installations.
It appears clear that only the telephone companies are in the most favorable position to gather
this type of essential data. Despite the fact that
the Commission has asked Bell and other carriers
to provide us with these data, it has not yet been
supplied. The Bell System should now undertake an
objective survey to determine the extent of illegal
interconnection and the incidence and character of
actual as opposed to theoretical h~rm. Without such
information it is difficult to assess the credibility of AT&T's claims with respect to actual or potential harm. If the potential impact of harm to the
network is as central to the issue of liberalized
interconnection as Bell contends, Bell is obligated
to supply the necessary data or abandon its dogmatic position that interconnection requires standards and procedures of the utmost vigor. Or, to
put it another way, if the carriers do not view this
matter of sufficient importance to collect the
necessary data, then certainly we can question the
basis for the strong concerns they voice. Finally,
let me stress that while we are earnestly concerned
(please turn to page 22)
COMPUTERS and AUTOMATION for December, 1972
Telephone Service:
The Rules of the Game When the Game is Changing
T. L. Simis
Assistant Vice President
Computer Communications and Data Services
American Telephone and Telegraph
New York, N. Y. 10013
"The old goal was pricing the service so as to make it accessible to people of all
ranges of income, and to make the small communities as accessible as the large
metropolitan areas. But recently the FCC has said that it believes the advantages
of competition will better serve the public interest -- will it?"
We are of course concerned for the availability,
quality, and cost of data communications services
both present and future. We in the Bell System
share that concern with many other persons, only
from slightly different points of view. So these
remarks will be made as candidly as possible.
The questions I shall touch on are:
What are our new data system products?
What is the current status of our digital data
sy stem plans?
What are some of our observations about recent
competitive and regulatory developments that specifically relate to the future of data communications?
Construction and Service
The last year has, been a progressive year in the
communications field -- particularly within the Bell
System. Our 1971 total construction expenditures
were about $7.6 billion. A sizable portion of those
dollars were used to add some 28 million circuit
miles to our network's diverse transmission facilities. Approximately 4 million of these circuit
miles were digital facilities.
Our customers -- you among them -- completed over
125 billion calls of which almost 8 billion were
long distance.
About 13,000 organizations, some very large, some
very small -- dispersed throughout the country used
our network for delivering and collecting theirdata.
They tie over half a million data terminals into the
network, and that number is growing at a rate of
about 30% a year.
Automatic Data Test Center
Our first new automatic data test center is now
in operation in Dallas, Texas. This center can test
up to 100,000 data terminals under control of a centralized computer at a fraction of the time it used
to take to do the job manually. Additional centers
are planned and will be installed as the volumes of
testing requires them.
(Based on a talk at the Digitronics Users Association Conference in New
Orleans, La., October, 1972.)
COMPUTERS and AUTOMATION for December, 1972
The new technical support plan for data services
is well into the implementation stages. This plan,
referred to as Datec, brings specially trained technical experts in each Bell System company to the
prompt assistance of local installation and repair
forces. Procedures have been introduced which call
data problems to the attention of these trained experts in the early stages -- before things get critical. Also, an accelerated program is under way
to provide them and local repair and installation
forces with the latest data test equipment and
l11ethods.
Data Access
In the last year we also introduced two new data
sets. The first, the Model 113B, was added to our
new low-cost, low-speed series of sets aimed at the
time-sharing market. The second, the Dataphone®
4800 data set, is the first of an all new series of
low cost, medium speed sets utilizing LSI technology. You will be seeing additional sets in this series within the next year. In fact, models operating at 2400 and 9600 bits per second are now being
tested.
Today, there are over 20,000 data access arrangements in service. We are actively participating in
the FCC's two advisory committees regarding the possible elimination of these interface devices without
causing harm to the network.
Terminals
We have not said much about terminals recently.
We have our reasons, but lack of activity back at
the shop is not one of them. First of all, it is
our practice to know what we're doing before we begin touting it. Secondly, in a competitive environment -- and I am sure you would agree that the
terminal area is one of the most competitive portions of today's data market -- one does not talk
too loudly about a product until it is close to
introduction.
At the present time, we have what we believe to
be a very attractive alphanumeric keyboard terminal
with information monitoring features undergoing final product trials. Dubbed the Dataspeed ,4dID~ it
should be introduced sometime next year.
13
Our digital data system program is progressing
very well. We plan to file an initial construction
application for the necessary transmission facilities with the F.C.C. shortly.
This initial application will cover facilities
required to provide two-point service between five
cities which should be in service by mid-1974: Boston, New York, Philadelphia, Chicago and Washington,
D.C. By the end of 1974 some 24 cities should be
in service, and about 96 at the end of 1976. Multipoint service will be offered in early 1975 and
switched not long after that.
financial safety; supplied under conditions of government regulation and high barriers to entry; and
in accordance with the policy of avoidance of social
discrimination in prices to all customers for particular service offerings, we have built an extremely high quality and ubiquitous communications sytem.
The key to the attainment of this goal was pricing the service so as to make it accessible to people of all ranges of income, and to make the small
communities of our nation as accessible as the large
metropolitan areas in a communications sense.
Residence Service Priced Low
Speaking candidly, as I promised -- DDS should
provide you with better data transmission service
in terms of lower error rates and higher throughput, minimal downtime and rapid restoral. Our design objectives are to provide end-to-end transmission performance with no more than one error
second in 200 seconds of transmission at 56 kilobits per second and even better performance at the
lower speeds of 9.6, 4.8 and 2.4 kilobits. Downtime will average between three and four hours per
year and our restoral objective, for maximum duration of a single outage is two hours.
Certainly, these objectives recognize the perishable nature of your business data in this fastchanging world of ours.
Data Under Voice
The technology we call DUV, or Data
is presently undergoing field trials.
1973, we will be using this technology
our Dataphone 50 (switched 50 kilobit)
between Chicago and New York.
Under Voice,
By late in
to supply
faci li ties
Briefly, for those of you who are not fami liar
with DUV, it is a method developed by Bell Laboratories whereby a digital bit stream of 1.5 million
bits can be derived from the baseband frequency on
most of our existing radio relay channels -- generally without sacrificing any voice circuits.
We've termed this capability Data Under Voice
because the digital signal rides on frequency bands
below those normally used for transmitting telephone
call s.
We plan to use DUV technology in providing the
initial long haul digital highways for our DDS system: a system which is just one more component of
a growing spectrum of nationwide network services.
Accordingly, residence telephone service was
priced low and business service somewhat higher.
This practice became a part of the concept we have
called value of service pricing. The short-fall of
the station installation, move and change charges,
was folded into monthly recurring and toll charges.
Calls to and from isolated communities were priced
at the same rate as calls between big cities -- if
the distance and time involved were the same. This
concept became a part of what is frequently referred
to as nationwide average pricing policy.
Basically, total revenues covered total costs.
That's all that mattered as long as customers got
good service and telephone development grew to
serve the public interest. Some economists would
say that this concept is not economically sound. Yet
the overall social goals were considered worthwhile
and were openly accepted by the public, the regulatory agencies, and by Congress.
The ubiquitous nature of today's telephone service suggests that these policies were good ones
and they served the public interest well.
Competition
Recently, the FCC has said that it believes the
advantages of competition -- for these times -- will
better serve the public interest than will the policies of the past.
Consistent with that philosophy, they licensed
specialized common carriers to engage in inter-city
communications, which of course has developed on
heavy usage routes. The introduction of this type
of competition brings to light a new concept which
could be called avoidance of economic discrimination.
This new concept is not reconcilable with the older,
well established, public interest criterion of avoidance of social discrimination.
Social and Economic Issues
Now, I shall turn to the social and economic
issues contained in the current public questions
on competition and interconnection in the telecommunications industry, questions which go straight
to the foundations of the industry -- and in fact
to the foundations of our nation's economic and
social goals.
By definition: social discrimination exists whenever two buyers pay two different prices for the
same product or service; economic discrimination
exists whenever two buyers of the same product or
service at the same price cause the seller to incur
different costs. In the real world of changing
technology, where production and distribution facilities are located in space and time, there are as
many different actual costs as there are customers.
Maybe the best way to understand how recent
changes in these areas are likely to affect both
the telecommunications industry and certain social
and economic issues is to look at the history of
development of the telecommunications industry.
Social Discrimination
and Economic Discrimination Conflict
A Universal Service
With the goal of a universal service, available
to all at the lowest possible price consistent with
14
The only time the two criteria of non-discrimination can converge is in the imaginary world of:
static costs; costs not influenced by geographic
location or volume; a world where technological advances are not allowed. In this world, economies
of sc'ale, an underlying reason for the existence of
COMPUTERS and AUTOMATION for December, 1972
regulated common carriers, is not only inoperative,
but must be forbidden. If allowed, or technological
advance occurs, the conflict between one or the other type of discrimination must emerge.
but they are also asking us to provide them with
local serving links.
This confrontation of two norms gives those advocating competi tion as in "the public interest" a
real dilemma.
While both of these "turnarounds" might be viewed
as natural progressions of attitude in time, they
also quickly bring into focus the two major issues
under competition that I've been talking about:
This dilemma might best be expressed as a question: is "the public interest" better served by substituting one form of discrimination for another
(that is -- social for economic), by introducing
competition into the common carrier field? In order
to have real competition in any segment of the common carrier business, that segment must stand alone
in its cost/price relationship.
Simply put, competition means the end of value
of service pricing -- or end-to-end pricing. If
,inter-city competition is found to be in the best
public interest -- which is not all that clear -then we will modify our past policies to the extent
necessary to enable us to compete effectively. Any
other course of action would not only adversely affect our shareholders and us as a business, but
would also deprive the public of the benefits which
competition is supposed to offer.
"Turnarounds"
•
First, if there are advantages to the customer
of competition over monopoly, then it must
be true competition. Market division gives
the customer no advantages; they all go to
the selected entrepreneurs.
•
Second, in a competitive world, existing common carriers must reprice services to assure
that individual segments will stand alone in
their cost/price relationships. Such segments must include serving end links which
are now averaged as a part of end-to-end
services.
Terminal and station competition, while not as
recent an innovation, is receiving concentrated
attention recently -- in the name of the "benefi ts
of increased competition."
Readiness for a Two-Level Rate Structure
Interface Device Requirements
Specifically, we recently announced our readiness
should competitive necessity require it -- to
adopt a two-level rate structure for our inter-city
private line services that will reflect the very
significant economies of scale that we enjoy on our
heavily trafficked routes. Of course, this structure must also take into consideration the higher
cost of routes of less traffic. This will bring
advantages for some and disadvantages for others.
Those of you who would pay less will be happy; those
who would pay more won't like it.
The first regards the question of whether the
requirements for an interface device, such as a
data access arrangement, should be eliminated. Proponents of this move, mostly terminal manufacturers,
claim that it would make it easier for customers to
use station and terminal equipment not provided by
the telephone companies, thus conveying the total
benefits of competition to the user.
There is, perhaps, an even more critical question
regarding this new competition. That is, in the long
run, will the public as a whole pay more or less for
its total communications needs under competition?
Parenthetically another question is, of course, implied: Will the obvious benefits of economy of scale
that are now attained in inter-city telecommunications
slowly deteriorate?
The Rules of the Game
Since the issue of inter-city competition arrived
on the scene, our stand has been -- and is -- that
if competition is to benefit the customer, it must
be real and fair -- everyone under the same rules
of competition. Division of the market is not competition; and regulation that might protect the new
entrants into the field from real competition would
be tantamount to market division.
Recent signs indicate a "change" in outlook by
some of the new specialized carriersj These carriers
in their applications for licenses regularly urged
before the FCC that competition in communications
was highly desirable. They said frequently -- in
various ways -- that there should be competition.
Some of these same carriers also originally stated their intentions of providing end-to-end service
including the end-serving links.
Today these same carriers are not only asking
that we be excluded from the private line market,
COMPUTERS and AUTOMATION for December, 1972
Regulation
The final decisions as to the terms and conditions
under which customer-owned equipment may be attached
to common carrier lines will be made by regulatory
bodies. As I mentioned before, the FCC ha's two advisory committees studying part of the problem. But
just the same, a number of other questions should
be carefully explored.
First, what is the potential harm to the network
if the protective interface is eliminated? This, of
course, is the one area being explored by the FCC,
but other important questions exist.
For instance, what will be the overall effect
upon quality of service? It's quite possible that
service can be adversely affected without causing
actual "harm" to the network.
Also, what is the potential effect upon the rates
for other telephone services, particularly basic
exchange service?
It appears to us that a great increase in customer owned equipment may tend to increase, at least
to some degree, the revenue requirements from other
basic services. Part of this would result from the
loss of supplemental equipment revenues which now
support basic service in some areas.
What about the regulatory jurisdictional problems? How will the customer receive the best service -- via FCC or state regulatory? Or a joint
effort?
(please turn to page 22)
15
The Present Role of Governments
in the World Computer Industry
C. W. Spangle
Executive Vice President
Honeywell Inc.
200 Smith Street
Waltham, Mass. 02154
"Most industrialized nations today recognize that the computer art is the cornerstone of
their national defense and their national economies in the future."
We are all in one way or another members of a
very exciting industry at a very exciting time.
In global terms, the computer industry in the last
half of the Twentieth Century is the fastest growing industry on earth. If one compares world Gross
National Product with world computer growth, one
can understand the significance of this pace. In
the 1960's world GNP grew at an average of four to
six percent world-wide. World computer growth ran
at an average of fifteen to twenty percent. In the
1970's most economists estimate world GNP growth at
three to five percent. Computer growth throughout
the world will run at the twelve to eighteen percent annual rate.
By 1990 computer growth on a world basis will be
running at two to three times world GNP growth annually.
The causes of this phenomenon are well known.
The world has a long term need for increased productivity as the prime way of coping with population, the environment and technology. And of course,
the long-term world inflation trend will force the
search for increased automation.
By 1990 the information industry may be the
world's largest. Because of this increasing world
importance, it is easy to understand the growing
concern on the part of governments and the public
regarding this industry.
In this article I seek to review the role of governments in the world computer industry. Suppliers,
users, and shareowners all have a strong business
stake in the computer industry throughout the world.
The same is true for makers of systems of peripherals
(Based on a talk at the Western Electronic Manufacturers' Association, October 1972)
16
equipment, components and circuitry, software, management counsel and advice.
There is a division of opinion in the computer
industry regarding the role of governments. In this
article I would like to advocate a strong free trade
approach, and ask that this be considered on its
merits.
History
Government involvement in the computer and
electronic industries, of course, is nothing new.
It has been a matter of public policy at the national level in the United States for many years. During and following World War II, our own federal
government played a major role in the development
vf electronic data processing equipment and components. Basic research that provided us early
circuitry, logic, memory and scientific programming routines is all due to government support.
Important as thi s work was for national defense
and scientific uses, the immediate commercial spinoffs from it remained small. It grew our basic
knowledge and understanding regarding data processing systems. But in large measure it has always
been contained within the specialized scientific
and defense establishments.
Clancy W. Spangle has been an executive vice president of Honeywell Inc. since January 1971, and is a
member of the Honeywell board of di rectors.
From
1960 to 1965 he was managi ng di rector of Honeywell's
British subsidiary, Honeywell Ltd., where he was instrumental in establishing the firm's first European
computer operations. M~ Spangle graduated from Yale
Uni versi ty in 1945 wi th a degree in mechani cal engineering and from George Washington Uni versi ty Law
School in 1952.
COMPUTERS and AUTOMATION for December, 1972
The decade of the 1960's saw major growth in
industrial and business applications of these machines. What had formerly been military and scientific curiosi ties blossomed into significant tools
to handle the industrial expansion of this period.
But government support of these applications remained small. Of the nearly $4 billion spent by
the total general purpose computer mainframe industry in this decade for research and development
work, something less than ten percent can be attributed to government sponsorship.
Important hardware developments came from government support, from SAGE, BMEWS, the Apollo program and others -- such concepts as multiprocessing, high-speed interactive processors, ILLIAC,
MULTICS, etc. -- but the major thrust of automation in the 1960's was supported by private industry. The progress of the industry was generated by
the suppliers winning enough volume of business
from users at prices that provided sufficient funds
to support research and development for future
projects.
With the advent of second generation computers,
however, the federal government modified its
procurement policies in favor of general purpose
computers that offered a satisfactory compromise
between the then current state of the art and costs.
As a result, the government's research and development support of the industry began to diminish, and corporate R&D grew significantly. The
major thrust of R&D dollars in this period was in
development work, not research, and the major
achievement of the 1960's was in getting basic
hardware state of the art more effectively utilized through the development of commercial applications and operating systems. This development
work has been almost fully sponsored by private
industry.
Contribution to Balance of Trade
At the time this R&D trend was occurring in the
1960's another trend was occurring of even greater
importance. U.S. commercial computer equipment and
applications were becoming the dominant force in
world automation. The spread of U.S. technology in
EDP during the 1960's is probably the dominant international business development of that decade.
From 1963 to 1971 U.S. exports of computers and
related equipment increased nearly seven times, from
$180 million to almost $1.2 billion. You may not
be aware of the contribution this made to the U.S.
balance of trade. During that same period the contributions of these exports to the U.S. balance of
trade rose from three percent in 1963 to more than
forty percent in 1971.
You can be sure that the maj or computer suppliers
recognize the importance of international markets
during this period. You all can recall some of the
basic indicators. World Trade Corporation represented forty percent of IBM's total revenues and
more than fifty percent of its earnings last year.
Honeywell Information Systems today generates
more than fifty percent of its revenues outside of
the United States, and more than fifty percent of
all its customers and employees are outside the
United States, as well as a significant share of
its earnings. Univac has approximately forty-five
percent of its business outside the United States.
COMPUTERS and AUTOMATION for December, 1972
During the recent recession of 1970-71. the computer industry in the United States was affected
for the first time. It was clearly no longer recession-proof in today's mature U.S. marketplace.
However, overseas revenues continued to march forward. In 1971 they increased something more than
fifteen percent as compared with less than five
percent at home. Those suppliers who had healthy
business balanced between Europe and the United
States fared much better than those who had most
of their eggs in the U.S. basket.
The American-based computer industry today supplies the majority of all international computer
markets. It is already doing eighty-five percent
of the world's computer hardware business and seventy-five percent of all non-U.S. computer business. Sixty percent of the computer industry's
shipments were outside the U.S. last year, including half the shipments of the U.S.-based manufacturers.
Last year, moreover, U.S. computer companies
repatriated more than $375 million in foreign earnings -- and this was in addition to leaving behind
at least as much investment for future growth.
These developments, I believe, are a reasonable
indication of things to come.
The world computer market is expected to grow
at a rate of fifteen to eighteen percent a year
during this decade. The U.S. computer market, meanwhile, is projected to grow at a rate of ten to
twelve percent.
The industry is already one of the largest in
the world, and continues to be one of the fastest
growing businesses as well.
We estimate that new computer users throughout
the world entering t~market will equal the total
number of today's installations during the 70's.
Most of these, I should note, will be for small
companies using their first computer. And more
than half of these installations will be outside
the U.S.
Growing Restrictions
It has been as a response. frankly. to the overwhelming U.S. domination of the world computer market and the promise of future international growth
that many foreign governments have undertaken to
prop up national computer and component suppliers
or establish new ones.
Most industrialized nations today recognize that
computer art is the cornerstone of their national
defense and their national economies in the future.
The pressures of inflation in Europe and continued
demands for national defense are closely linked to
computer competence.
Let me cite the major national activities:
In the United Kingdom, the government announced
recently a $37 million subsidy for International
Computers Ltd. for research and development for the
next eighteen months. The government also reaffirmed its policy of extending government tenders
to ICL only for the machines which ICL can supply.
In other words, other companies are barred from
bidding on government installations, even when the
products bid would be produced completely in the
U.K. by British nationals. More important, the
British government user is barred from the opportunity of gaining the best available system.
17
In France, the French government continues to
subsidize CII at a rate of about $40 million per
year through various methods. In addition, the
French government, operating through "Plan Calcul,"
discriminates in favor of CII on certain government purchases.
The entire government market is not excluded to
other companies, but major segments of it are. The
government has also expressed an intention to convert a major share of present government installations to CII equipment. Government installations
represent some fifteen percent of the total base.
In Germany, the government has announced its
plan to spend about $200 million over the next
four years for subsidies for the universities and
industrial concerns for the advancement of the
computer industry. Although there is no formal
policy of discrimination against government purchase of non-German computers. it is very difficult
to obtain such business, even with superior systems
and support.
In Belgium, the government made an arrangement
two years ago with Siemens and Philips in which,
in consideration of Philips and Siemens agreeing
to build certain non-computer manufacturing facilities with Belgium, it was agreed that fifty percent of all government purchases for the next five
years would be from one of the two companies. Unfortunately, they also stipulated a minimum volume
based on the projections of future government purchases. The minimum amount has, in fact, exceeded
the entire requirement for the Belgian government,
so the result is that one hundred percent of the
government purchases are being directed to these
two companies. The principal beneficiary is Siemens.
In Japan, Japan permits no imports of central
processing computer equipment, although peripheral
equipment restrictions have been liberalized. The
Japanese government also subsidizes the Japanese
computer manufacturers by an amount of $300 million for three years. Also, the Japanese government sponsors a Japanese computer rental company
to which "non-Japanese" companies are excluded from
participating.
Total R&D subsidies from governments in these
countries amounts thi s year to more than $100 mi Ilion, spread among three national firms. That's
about the same as this year's R&D expenditures for
Honeywell Information Systems alone, and less than
one fourth that of IBM.
The ultimate impact, of course, on the government user in the countries may be significant in
time.
1. He will pay higher prices for the equipment.
2. He will add taxes to support the government
subsidies.
3. He can only end up with equipment inferior
to those governments who do not have such
restrictions.
In Europe as a whole, these efforts have extended beyond individual countries, and there appears
to be a movement to persuade non-computer producing
countries who are members of the European Economic
Community to discriminate in favor of those countries within the EEC. This appears to be a concerted attempt to extend the non-tariff trade barriers beyond the particular country into the entire
trading block.
18
This kind of foreign government support to national computer firms is not restricted to scientific or military projects as it has been in the
U.S. in the past.
Supports are across the board in all major commercial development and application work. Restrictions against bidding for government business, of
course, are more significant. The government markets for computers in Europe collectively total
something more than twenty percent of the entire
computer marketplace in Europe. If such restricttions against outside bids from U.S. firms were to
be completely successful, then approximately twenty
percent of the entire European market would be removed from competition.
Today by comparison, of course, U.S. government
provides very little R&D support to U.S. firms of
the kind now being provided by foreign governments.
For the most part, U.S. research and development is
restricted to highly specific, experimental systems. The bulk of R&D work is carried on privately by independent firms. Of the industry's total
general purpose R&D expenditures of about $1 billion this year, less than five percent is government funded. And many of us receive almost no
direct benefit from such funding.
Dependence on Trade
If the U.S. computer industry has such a major
stake in international markets, then we certainly
face significant losses in domestic employment if
such European restrictions are successful. The
imposition, of course, by the U.S. governmen~ of
restrictive international trade measures such as
the Burke-Hartke Bill, would guarantee that the
international restrictions being considered would
take effect and would be successful.
For example, imposition against the United States
computer suppliers of the restrictions by foreign
governments of the kind I have described would cut
U.S. industry exports at least sixty percent and
cause further U.S. unemployment of about 20,000
people in this industry. I cannot estimate the
impact that would have on the electronic components
industry, but I am sure that you can rapidly extrapolate the effect.
In Honeywell Information Systems, for example,
we have estimated that overseas sales support more
than one-quarter of our engineering force in this
country.
In other words, overseas business makes possible
jobs for more than 800 Honeywell engineers in Boston, Oklahoma City, and Phoenix. Since we produce
in these places the very successful Honeywell 6000
series for shipment to overseas markets, substantial
numbers of our production force in Oklahoma City and
Phoenix could be affected. Preliminary estimates
tell us something over 2,000 jobs might be involved.
Again, I believe that those who know the circuitry
of the 6000 series and similar large-scale computer
systems can estimate the circuitry content involved
and that they can extrapolate rather quickly the toal impact of such systems upon the semiconductor
industry.
U.S. Government Practices
In contrast to other national governments, the
U.S. government requires competitive bidding on
major procurements. The principle is laudable, but
the practice is not.
COMPUTERS and AUTOMATION for December, 1972
Rather than acting as a support to the U.S. computer industry, government competitive bidding in
effect de-subsidizes the industry. All too often
it leads to price-cutting and unrealistic bids for
equipment in an effort to load plants orwin followon business at more favorable terms.
And while foreign governments provide research
and development support, ours provides virtually
none that has any potential use in commercial equipment and applications. For the most part, research
and development here is done by the companies themselves.
On the other hand, U.S. government restrictive
measures as embodied in the Foreign Trade and Investment Act of 1972 -- the Burke-Hartke Bill -and in companion measures would seriously restrict
world trade which the U.S.-based computer industry
now enj oys.
These measures, of course, are designed to protect U.S. industries from foreign competition and
restrict the "exporting of jobs" through investment in foreign facilities. But in the case of the
computer industry, we are not threatened by floods
of imported equipment. Very few computers are
brought into this country. In fact, Honeywell is
the only supplier today which imports any computers in any quantity into U.S. markets. We bring
in the Series 50 small-scale system produced by
Honeywell Bull in France. And this system creates
jobs and customers for us in the U.S. that we could
not have gained otherwise. Restricting its importation would eliminate jobs and service to U.S.
computer users without producing any positive benefit to the U.S. economy.
This sales growth at home could not have been
accomplished without a corresponding growth in
foreign investment.
In other words, we need our foreign operations
for sales of locally produced products and for exports. This is especially true of computer exports
where our strong computer subsidiaries in Europe
represent primary marketing areas for all of our
domestic computer systems. Without these European
subsidiaries, and the sizable investment they represent, our foreign computer revenues would be ten
percent of what they are today.
We have also found that our foreign investments
have not replaced U.S. exports. Rather, foreign
markets have stimulated our export of many items,
such as subassemblies and components.
Overall, the ratio of Honeywell exports to total
U.S. sales, both domestic and export, increased from
1961 to 1971, and the percentage of U.S. factory
output devoted to the export market also rose.
Significantly, we are not exporting jobs when
we invest in overseas production. For Honeywell
as a whole, domestic employment ros~ 17,000 from
1961 to the 55,000 of last year, and our foreign
employment increased 32,000 to 39,000, including
the General Electric interests. While our domestic employment was rising forty-five percent during this period, industries that invested primarily jn the U.S. were growing an average of only
fifteen percent.
Conclusion
It would, of course, eliminate jobs in France
and contribute to the national outcry to eliminate
U.S.-built computers being shipped into France.
Thus the cycle of retaliation would be completed
to everyone's loss.
For these reasons, I am convinced that U.S.
restrictive trade actions would result in a trade
war with Europe, and would be an economic and political blunder of considerable magnitude.
Benefits of Trade
In sum, a protectionist U.S. trade policy would
increase costs at home, diminish exports, reduce
U.S. payrolls, and ultimately hurt the consumer.
Recent studies show that international companies increase their domestic employment at a higher rate than those of companies which conduct their
businesses primarily in the U.S.
A U.S. Chamber of Commerce task force found that
international companies increased domestic jobs thirty percent during the past decade. This is significantly higher than the national increase during
the same period.
We have established a task force in Honeywell
to document the impact these actions might have
upon our major operations in each of the industries
in which we participate. Such documentation in
each of our businesses would establish a valuable
base of understanding of the magnitude of the problem.
Thus, if one adds 100,000 support workers, the
total work force in the U.S. that derives from investment abroad is 600,000 persons.
If one looks ahead, it is precisely in the industries with high technological content that the
U.S. has its only chance of maintaining a positive
balance of payments. It is unlikely that the U.S.
will be able to generate or maintain the favorable
balance of trade in those industries which have a
high labor content, which have a large raw material
requirement, or which are bulky and incur heavy
freight charges in their distribution. The computer industry has none of these attributes, and because of the strength of the U.S. companies, this
industry is one of the few which can help to rebuild the U.S. balance of trade position with the
corresponding influence on its balance of payments.
In terms of productivity, companies with the
greatest growth rate abroad often have a correspondingly significant growth rate at home. Honeywell's domestic sales, for example, increased from
$395 million 1961 to $1.1 billion last year. During the same period, overseas sales rose from $75
million to $751 million.
If the U.S. is not to lose this present and potential contributor to its trade activity, strong
steps must be taken by the U.S. government to
eliminate the subsidization and discrimination in
other nations. And we here must take strong steps
to urge rejection of similar restrictions being proposed at home.
[J
A Harvard Business School team recently reported
that foreign investment has a strongly favorable
effect on the U.S. economy and on domestic jobs. It
estimated that about 250,000 U.S. production jobs
would be eliminated without U.S. foreign investment.
This is in addition to other findings that estimated
250,000 managerial and technical positions in the
U.S. depend on overseas operations.
COMPUTERS and AUTOMATION for December, 1972
19
The High Cost of Vendor's Software Practices: Why?
Raymond E. Boche
Computer Center Director
California Polytechnic University
San Luis Obispo, Calif.
"Reasoned use of the question 'Why?" is always a powerful weapon against
organizational complacency."
Buzzwords
In my role as director of a college computer center with a modest IBM 360/40 installation, I attend
quite a few off-campus meetings and talk with many
interested alumni and parents visiting the campus.
After a few phrases of hardware description, opening conversational gambits will inevitably turn to
the question of operating systems: "OS or DOS?" Answer, "OS." Next question, "What version are you
on?" Well, I suppose I should have known, or at
least taken a cue from Stephen Potter and spouted a
random collection of buzzwords with a patronizing
air. By the time I learned to recognize thi s dialogue as pure social chit-chat, I had also learned
what version we were using.
Esoteric Nonsense
Carefully reasoned use of the question "Why?"
is always a powerful weapon against organizational
complacency. I now know what version we are using,
and I know that it's different from the version we
were using at this time last year, but I still don't
know why. There is an academic interest in understanding the why's of all that goes on around us,
but I am relatively removed from the details of our
system's programming and only moderately awed by the
esoteric nonsense I frequently hear but rarely understand. (Usually, upon explanation, I discover that
it is the same esoteric nonsense, slightly extended
or slightly refined, that I was myself expounding
ten years ago, before succumbing to the Peter Principle.)
Assessment of Costs
My sense of urgency in cutting through the fog
to answer the question, Why? tends to reflect my
assessment of the costs of whatever is transpiring.
When a computer center is starting up and not yet
running twenty-four hours a day, the marginal cost
of going from one version of an operating system to
another is somewhat obscured. Computer time? Well,
the systems programmers fool around on graveyard
shift anyway, and I attribute part of their time to
self-education. Continually improved throughput, a
greater variety of processors available, minimal
user complaints, and no software down time contributed to a sense of compla6ency and the general
feeling that somehow the benefits were exceeding
the costs.
"Upgrading"
Now our environment has changed: exposure and
education have snowballed demand (or desire). Prices
and costs are rising; resources are fixed and frozen. Now even the simplest student job may require
over twenty-four hours turnaround time. In this
environment, the suggestion of our software staff
20
that we "upgrade" to a higher version of the operating system was one of compelling urgency.
No Pessimists
Along with asking why, it now became imperative
to ask for careful estimates of needed resources,
the most obvious being machine time. I've long observed that there are no pessimists in "systems
programming", and that doubling their estimates is
not too conservative for the initial installation
phase. Even with the best of planning and preparation, a few loose ends inevitably remain to be
tucked in, e.g. the operator on vacation loses a
little time with an unfamiliar response, or the
user wastes a run or two discovering that the obscure procedure he relied upon has disappeared in
the simultaneous housecleaning that invariably accompanies a system "upgrade".
Direct Benefits, Definitely Negligible
The reasons "Why?" invariably testify that the
new system will in some way do more. Believing that
"There's no such thing as a free lunch", I rest assured that the "more" is going to go hand in hand
with more overhead, more time, or more space. Specifically, what "more" am I to expect? A dozen or
so specifics were identified for me. They were primarily the repair in an elegant way of bugs previously discovered and clumsily patched, some additional features for particular types of users, and
modest improvements in efficiency for others. The
direct benefits were definitely negligible. Costs
were definitely high. Ask, "How long would these
benefits have to accrue to justify the costs?" and
it is apparent that we cannot conceivably justify
the investment.
The Duel Between Hardware People and Software People
Then the moment of truth - "But we have to do
it anyway." "Why?" "Or else we'll lose our support!" It seems that our maintenance services include a minimal diagnostic service to circumvent
the classic duel between the hardware and software
people over whose bug is whose. Thus we are intimidated by the vague threat that if a bug'insoftware
supported by the company last year is discovered
this year in the course of hardware diagnosis, we
may be liable for the costs of that diagnosis and
its subsequent repair; further, that repair may be
rendered more difficult by removing from supply and
distribution "obsolete" versions of manuals and
programs.
Disaster Insurance
Can we take those risks? Have we the funds to
self-insure against them? We realize that a key
element of our maintenance dollar (from our point
of view) lies in disaster insurance for our hardCOMPUTERS and AUTOMATION for December, 1972
ware. I've seen a bank of core go up in a cloud of
black smoke, and the lesson could only have been
more dramatic if I had been faced with the monetary
consequences of recovery. Isn't the same true of
our software? How much beyond our meager means
could a subtle and elusive "hardware bug" that
turr~ed out to be "our software" cost us?
The vendor's software last year -- but ours this year, because we failed to pay our dues and keep up with
"progress" .
Operating System Versions Near to "Up-to-Date"
According to a recent eGA census, nearly 10,000
computers in this series of a size probably using
an operating system have been installed, and I suspect that the great majority of those installations
use a standard operating system and keep it within
two versions of "up-to-date". The most popular
operating systems are in versions numbered 20 and
above in a series of hardware only seven years old.
5000 System Updates a Year
It is easy to conjecture that at least 5000 system updates per year take place. Even the optimists
I know estimate many hours of machine time for an
update. Thus, even if I have grossly overestimated
(and I suspect the opposite), the costs to the industry, to us the users, are overwhelming -- and 1haven't included the enormous costs to the vendor
in developing and distributing new releases.
Costs, and Higher Prices
Those costs can be passed on in higher prices,
and benefits accrue in the increased consumption of
computer time by the users in making the "mandatory"
conversions. If a user detects a subtle benefit to
his jobstream here and there, so much the better;
his systems people will offer it as testimonial,
and the vendor can rest assured that the costs will
prove too elusive for analysis. If you are a vendor who never loses sight of the fact that, all idealistic claims to the contrary, your basic business
is selling computer time, you can sell a dozen or so
new large installations, and business is good. If
you can't, you can release a new version of your
operating system, and business is better. Our industry accepts the new releases; surely we must want
them.
Tailfins, Chrome Portholes, etc.
For years, our automobile industry added tailfins, chrome portholes, and the like to satisfy the
public wants. The cars sold, and hence the w~nts
were "demonstrated". But economists have pointed
out that the wants which can be demonstrated in the
marketplace are restricted to the goods available;
in an oligopoly that offers tailfins this year, and
removes from production last year's lower cost model
without tailfin5, nothing can be concluded. Volkswagen and Datsun, in their ignorance, never discovered that the buyer wants bigger tailfins.
The computer industry is catching up; with all
our real technical progress over the past decade,
in our software releases I think I see some tailfins.
I hope that the ethical question that this article raises may spur someone to undertake a serious
analysis of the costs to computer users of vendors'
software practices. Regrettably, the costs of computing have been forced to dominate my attention in
recent years.
0
COMPUTERS and AUTOMATION for December, 1972
CORRECTION AND RETRACTION
1. Text of letter received from Mr. William W. Harper
of Pasadena, Calif.:
Computers and Automation
815 Washington St.
Newtonville, Mass.
Attention: Edmund C. Berkeley, Editor
Gentlemen:
I have your letter dated September 27, 1972,
and the copies of the September issue of your
magazine, containing an article purportedly coauthored by me.
Please be advised that I did not author or coauthor the aforementioned article, and that it
was written without my knowledge or consent. I am
definitely not pleased with its publication. Furthermore, Mr. Sprague's portion of this article
contains many errors and gross misstatements of
facts behind the RFK assassination case so that
some type of retraction or correction should be
made immediately.
If any further articles bearing my name are
submitted to you for publication, please contact
me PRIOR to publication so a problem of this kind
will not arise again.
I hereby demand that you print a retraction
in your next issue, stating very definitely that
I did not co-author the aforesaid article and
that the material therein set forth under my name
was used without my knowledge or authorization.
I will greatly appreciate your cooperation in
this matter.
Very truly yours,
William W. Harper
2. From the Editor:
A. The "Sworn Affidavit" and "Notes" by William
W. Harper, which we printed in the September issue
on pages 25, 26, and 27, are plainly a public record; and we reprinted it from the "Los Angeles Free
Press" of January 21, 1972.
We regret very much that this material had the
appearance of being a part of an article jointly
authored by two persons.
What we intended was:
0)
to present a report on "The Assassination of Senator Robert F. Kennedy:
Proofs of Conspiracy and Two Persons
Firing", and
(2) to indicate that the report was put together based on information provided
by two persons, Mr. Richard E. Sprague
and Mr. William W. Harper.
Regular readers of "Computers and Automation"
know that frequently we use a joint heading to entitle information provided by several different
persons.
21
B. If at any time we publish an article that
contains "errors and gross misstatements of facts",
we invite any reader or any other person who knows
of such errors and misstatements to write us and
tell us them so that we can publish corrections.
This is always our policy.
We shall much appreciate it if Mr. Harper would
do so in this case.
There is substantial evidence (but not overwhelming evidence) that the assassination of Senator Robert F. Kennedy was the result of a conspiracy. However, most persons in the United
States do not believe that. Consequently, it is
highly desirable for those persons who do know
portions of the facts to come forward with the information, so that this portion of history can be
told truthfully instead of with lies.
It is not easy to select, edit, and publish only
information that is true. The truth is a wily bird.
In order to publish a close approximation to the
truth, effort is required -- effort by many people,
and most of what people report is obtained by talking with other people, rather than by the scientific methods of observations, measurements, and
instruments.
We earnestly ask for help from everyone of our
subscribers, readers, friends, and allies for a
better world. There is too much deliberate lying
going on by establishments and vested interests
here and there throughout the world. The lying
poisons the wells of information from which we all
drink. Le~ us try to get rid of the poison.
Strassburg - Continued from page 12
with protecting the network from harm, we must avoid
the imposition of "worst-case" restraints and costs
premised upon unsupported apprehension. Data of
this type would also be of importance to the Federal-State Joint Board on Interconnection which has
been recently created by the FCC to evaluate the
recommendations of the Advisory Committees and
others regarding the interconnection problem.
The Illicit Interconnect Market
In citing the fact that there may be an available
body of relevant evidence in the illicit interconnect market, I am not implying that the Commission
condones that market. On the contrary, we share the
general concern that uncontrolled hard-wire interconnection, if continued unchecked, would produce
harm to the telephone system. Telephone subscribers
have a duty to conform to the applicable tariff conditions until they are properly changed or run the
risk of losing their service. This is so whether
they regard the tariff as unnecessary, unfair or
economically burdensome. The Commission has no
obligation under the Act to provide resources to
enable the carriers to enforce tariffs, Instead,
the telephone companies have the prime obligation
under the Communications Act to police and enforce
compliance with their tariffs. Otherwise, they run
the risk of being in violation of their statutory
obligations and being exposed to penalties and forfeitures. It is our duty to impose such forfeitures
upon the carriers when they fail to enforce their
tariffs and to award damages upon complaint to persons suffering from such failure and to grant other
forms of relief. This is particularly true if en-
Simis - Continued from page 15
Can regulatory agencies handle the situation as
they are now structured? At what costs?
And again, what are the overall effects upon the
users' total communications costs? For instance,
if certification becomes a reality, there are initial economic costs involved which might tend to
act as entrant barriers to small-size manufacturers.
These are, in many cases, the very firms that
would be able to provide you the advantage of customized terminals.
Mission of Meeting Needs
In closing: the Bell Systems are committed to
meeting-your present and fuiure data communications
needs.
Our primary objective in forming the new computer
communications and data services division at our
headquarters was to meet those needs -- in accordance with your standards of service performance.
We are assembling the expertise for coordinating
the planning, marketing and operating functions of
the computer communications and data services part
of our business in one organization. We want to
open further the paths of communications between
organizations like you and us. If you have data
service problems that you think we should know
about on a regional or national basis, we would
like to know about them -- because that's our business, -- serving you.
[J
forcement of a tariff provIsIon is not even-banded
enforcement and results in discrimination and preferences among customers. If it is impossible, impractical or undesirable for the carriers to administer their tariffs in an effective manner,
then the validity of the tariffs is in question and
revisions should be initiated.
Failure to Disclose Full Information
We are also concerned with many advertisements of
interconnect equipment such as automatic dialers,
answering devices and telephone instruments that
fall short of disclosing full information that the
prospective purchasers should have. Some of these
advertisements are silent with respect to the tariff
requirement for rental of a telephone company connecting arrangement that must accompany use of the
equipment; others state that there are no such requirements and others are ambiguous and incomplete
in this respect. Whether this is false or misleading advertising or an unfair trade practice in a
legal sense is not within the purvi£w of the Commission's authority or expertise. The matter has
been brought to the attention of the Federal Trade
Commission and, perhaps, more will have to be done
in this direction.
I have addreised only one of many dimensions of
the interconnect problem confronting the regulator.
There are others of no less complexity involving the
economic, jurisdictional and political implications
of expanded interconnection. I hope, however, that
I have given you some clearer insight into the complexities and challenges confronting the regulator
in serving the public interest in the current technological and economic' environment.
[J
-1
22
COMPUTERS and AUTOMATION for December, 1972
Oversupply of People in the Computer Field
Dahl A. Gerberick
Ombudsman, Los Angeles Chapter of the ACM
13138 Millrace St.
Sun Valley, Calif. 91352
Last year, I received many complaints about the
advertising claims of some private data processing
schools. In particular, most people were objecting
to these schools advertising that "thousands of jobs
go begging" in the data processing industry.
In questioning these schools about their claim,
I was referred to a United States Labor Department
report. This report showed that each year during
the 70's, about 71,000 jobs would become available
in the fields of computer operator, computer programmer, and system analyst. What this report did
not show was how many people would become available
to fill these jobs.
As a result of my research into the problems involving the data processing industry today, I came
across several reports delivered at the 1972 Spring
Joint Computer Conference held by the American Federation of Information Processing Societies (AFIPS),
of which ACM is a constituent society. These reports give us some idea of how many people are currently in the data processing industry and how many
can be expected to enter the industry annually.
These reports show an oversupply of data processing
people which seems to be increasing.
Today people are being exposed to computing in
all areas of education, and we can show that large
numbers of these people are entering the industry.
If we look at the three basic areas of computing -computer operators, programmers, and system analysts
-- we can count more than 560,000 now employed. If
we were to count the people being prepared by public
and private colleges and universities, private vocational schools, and in-house training courses,
this country alone is preparing 170,000 potential
PROBLEM CORNER
Walter Penney, cOP
Problem Editor
Computers and Automation
PROBLEM 7212: NO LOSERS
"You look all worn out," said Pete, entering the computer center. "Have a hard night?"
"Yeah. AI, Bob and I were up till two playing cards,"
said Charlie.
"How did you make out? I suppose you didn't just
play for fun."
"Well, we all ended up with the same amount, but I
should have come out ahead."
"How so?"
"When we were about to break up, with me the big
winner, AI suggested that we play just three more hands,
COMPUTERS and AUTOMATION for December, 1972
new employees annually. Of these, 120,000 may be
expected to enter the data processing industry. To
employ these people would require a new entry rate
of about 30%, which is much higher than the Bureau
of Labor Statistics estimates of an average increase
of only 14%.
The Labor Department report showed that 71,000
jobs should open annually in the data processing
industry. As a result of my own research, I found
that the private vocational schools alone will prepare 79,000 people annually to fill these jobs.
This information was passed on to the schools in
question, the Better Business Bureau, and National
ACM. Since that time, I have neither heard nor received any complaints about this type of advertising.
As your ombudsman, I am prepared to work for your
best interests. In order to do so, I need two
things. First, if you hear or see an advertisement
for a private vocational school that you do not
like, make a note of the date, time, and station,
and let me know. Second, if you have any ideas
about how we might proceed against some of these
schools that are misleading the public, let me know.
Finally, if you have any complaints that relate
to the computer, or you have any suggestions for direct action that this office might undertake, be
sure to let me have them. Mail all correspondence
to: Dahl A. Gerberick, 13138 Millrace St., Sun
Valley, CA 91352. Phone (office) 714/629-5111,
ext. 4516; (home) 213/994-1866.
(Based on a report in "Data Link", Nov. 1972, published by the Los
Angeles Chapter of the Association for Computing Machinery, P.O. Box
90698, Airport Station, Los Angeles, Calif. 90009.)
and this time each of the losers would pay the winner the
same amount as he had at that point."
"Then the winner would end up that round with three
times as much as he started with. Right?" asked Pete.
"Right. But we all won once, and as I said, we all
went home with the same amount - actually $54 apiece."
"How much did each of you start with?"
"You ought to be able to figure that out without
writing a program," said Charlie.
How much did each player start with?
Solution to Problem 7211: Monte Carlo
If n-bit numbers are considered, with the total number
of 1's = k, the average value of the vectors containing
these k 1's is ~ (2 n - 1), regardless of how many vectors
n
there are in the set.
Readers are invited to submit problems (and their
solutions) for publication in this column to: Problem
Editor, Computers and Automation, 815 Washington St.,
Newtonville, Mass. 02160.
23
The June 1972 Raid on Democratic Party Headquarters
(The Watergate Incident) -
Part 3
Richard E. Sprague
Hartsdale, N. Y. 10530
"Many attempts at suppression of the facts in the case have been made by
Republicans, conservative Democrats, the Justice Department, and federal judges."
Introduction
This article is a third installment of a continuing report on the famous (or notorious) "Watergate
Incident", the breaking in of the offices of the
National Committee of the Democratic Party, on the
sixth floor of the Watergate Office Building, Washington, D.C. The forced entry took place around
2:30 a.m., Saturday, June 17; five men were arrested
by Washington police# They had with them extensive
photographic equipment and electronic surveillance
devices, and wore rubber surgical gloves. The five
men arrested were:
James W. McCord; a Lt. Colonel in the U.S.
Air Force Reserve; 19 years service with
the CIA; head of a security agency; on
the payroll of the Committee to Re-Elect
the President as late as May 31, 1972; an
organizer of the CIA for the Bay of Pigs
invasion of Cuba in 1961.
Ri chard E. Sprague recei ved hi s BSEE degree
from Purdue University in 1942.
His computing
career began in 1946 when he was employed as an
engineer for the computer group at Northrop Ai rcraft.
In 1950, he co-founded Computer Research
Corp.; by 1953, wi th Sprague servi ng as Vi ce President of Sales, the company had sold more computers
than any competitor. In 1960, Sprague became Director of Computer Systems Consulting for Touche,
Ross, Bailey, and Smart.
He became a partner in
that company in 1963, and started its Advanced
Business Systems Department in 1964.
He is currently ina business development and marketing
posi tion in the business systems branch of a large
New Jersey organization.
Sprague is the author of several books, including Information Utilities published in 1969
by Prentice Hall. He is a member of numerous professional organizations including: IEEE, the Institute of Management Sciences, the Association
for Computing Machinery, the American Management
Society, and the Society for Management Information Systems.
24
-
Bernard L. Barker; a Cuban-born Miami business
man; long associated with the CIA; he established secret Guatelmalan and Nicaraguan
invasion bases.
-
Frank Fiorini (alias Frank Sturgis)
-
Eugenio R. Martinez
Virgilio R. Gonzalez
These men were closely connected with:
the Republican Party,
the White House,
President Richard M. Nixon,
the Central Intelligence Agency, and
the Committee to Re-Elect the President.
For more information and background, see the first
two articles on this subject. published in "Computers
and Automation" (1) August, p. 33; (2) October, p. 18.
In addition, a "cast of characters" (the dramatis
personae) is given at the end of the second article.
Suppression
Many attempts at suppression of the facts in the
case have been made by Republicans, conservative
Democrat s, the Justi ce Department. and federal judges.
At the same time, valiant but somewhat futile efforts
were made by C. Wright Patman, by Lawrence O'Brien.
and by other Democrats to expose the truth. None of
the investigations or newspaper stories seemed to
concentrate on the Miami, Cuban and convention action portions of the Watergate conspirators' plans.
As the article in October pointed out, these were
far more sinister in their import than the bugging
of Democratic Headquarters.
Judge Sirica
The Washington Post, of all the news media, did
the most concentrated job in keeping the heat on
COMPUTERS and AUTOMATION for December, 1972
the Nixon administration and continuing to uncover
and report the facts. However, the power of the
executive branch under Nixon, with its influence
on the courts and the judicial process, was clearly
demonstrated on October 4, 1972. Judge John J.
Sirica issued an order in the Washington, D. C.
Federal District Court enjoining everyone involved
in the Watergate criminal case from discussing it
outside the courtroom. Theoretically, this included
George McGovern, because the indictment of the seven
men accused three of them of attempting to enter
Senator McGovern's preconvention headquarters on May
27. Since the judge forbade "alleged victims" and
"all persons acting for or with them" from talking
about the case, Senator McGovern could be considered
to be subject to the limitations.
McGovern said on October 4 that he would continue
to discuss the case and that Judge Sirica's order
did not in any way inhibit candidates for public office from discussing the facts about the bugging and
burglary.
More Suppression
Another severe blow to exposure of the truth took
place on October 3 when the House Banking and Currency Committee voted not to hold public hearings on
the financial aspects of Watergate. Six conservative Democrats (four from the South) joined forces
with 14 Republicans to defeat the proposal by the
committee's chairman, Wright Patman. The vote was
20 to 15. Patman was very unhappy with the vote and
he accused Mr. Nixon of engineering the outcome. He
said, "I predict that the facts will come out, and
when they do, I am convinced they will reveal why
the White House was so anxious to kill the committee's investigation. The public will fully understand why this pressure was mounted."
Coincidentally, on the same day, Ralph Nader's
report on Congress was released. He stated that
Nixon's administration controls Congress through
various committees, especially in the House, to an
extent never before known in the U.S. It certainly
would appear that Nixon controls the House Banking
and Currency Committee.
Delay of Civil Case
Another tactic made use of to suppress the
facts was implied by decisions made by Judge
Charles Richey of the Federal District Court in
Washington. Richey is the judge on the $3.2 million
suit filed by Lawrence O'Brien against the Watergate
invaders and their cohorts. Richey has permitted
delay after delay by the Republicans in the suit and
has managed to squelch any information taken in depositions from the participants, until after the November 7 elections.
New Exposure Efforts
The Washington Post, Newsweek and a few other
news media organizations have pursued their own information sources and have exposed a lot more details than the normal inquiring reporter would be
able to find.
The Post was accused by Agnew, Mitchell, and
other right wingers of coming dangerously close to
libel and other legal violations. Agnew and Mitchell were boiling over a September 28 story in the
Post which said that John Mitchell was personally
responsible for the secret Republican fund from
which the money was given to Bernard Barker. The
COMPUTERS and AUTOMATION for December, 1972
Post claimed to have inside information which would
prove that Mitchell actually controlled the fund
while he was still Attorney General. The story said
that four other people were allowed to approve payments from the fund, which carried a balance between
$350,000 and $700,000. Two of these people were
Maurice Stans and Jeb Stuart Magruder. Magruder was
interim manager of Nixon's campaign prior to Mitchell, and was a deputy di rector of the campaign.
The Post's sources were said to be law enforcement
officials and persons on the staff of the Committee
for the Re-Election of the President.
Mitchell had some choice words for newsmen when
asked about the Post's story. He said, "All that
crap, you're putting it in the paper? Jesus: Katie
Graham [Katherine Graham, publisher of the Washington Post] is gonna get caught in a big fat wringer
~that's published. Good Christ -- that's the most
sickening thing I've ever heard. Did the committee
tell you to go ahead and publish that story? You
fellows got a great ball game goin~. As soon as
you're through paying Ed Williams LEdward Bennett
Williams, Lawrence O'Brien's lawyer on the civil
suit] we're going to do a story on all of you."
A Professor Steps In
Another independent effort to get at the truth
was initiated by law professor, John F. Banzhaf 3rd,
at George Washington University. He filed a series
of legal motions on September 18 to have the Federal
Court in Washington appoint a special prosecutor to
investigate the Watergate crime. This, of course,
was a suggestion made on several occasions by
Lawrence O'Brien and George McGovern, except they
were asking President Nixon to appoint a special
prosecutor. McGovern had suggested either Earl
Warren or the lawyer for the Warren Commission, J.
Lee Rankin. That made some researchers wonder
who McGovern's advisers were.
Banzhaf's actions were lightly regarded. There
is apparently no legal precedent for such an action
on the part of a court. Banzhaf admitted this but
asked the court to "reach out to a new principle in
the legal armory."
Informers
In the October issue of "Computers and Automation", this author guessed that one of the informers
inside Republican ranks might be Martha Mitchell.
Mention was also made in that article of a Martha
Mitchell guard who had told what he knew about
Watergate. The guard's name was revealed by the
Washington Post on September 17 as Alfred Baldwin.
Baldwin was a former FBI agent and Martha's security
guard, who was hired by James McCord into the espionage operation on May 10. He said he monitored the
conversations on the telephones in the Watergate
crime. He also said copies of the taped conversations were typed and sent to aides to Mitchell at
Re-Election Committee headquarters.
One of Baldwin's most significant statements relates to sinister aspects of the case described
in the October issue. He said he was to be assigned
by McCord as wiretap monitor in Miami during the
Democratic Convention. He was also assigned by
McCord to infiltrate the Vietnam Veterans Against
the War for the purpose of "embarrassing" the Democrats if the veterans demonstrated at the Republican Convention.
Baldwin was the source of information about the
secret fund and Mitchell's control over it. He said
25
that a single piece of lined ledger paper listing
the names of 15 persons with access to the secret
fund and showing the amount each received, was the
only record of the fund and was destroyed shortly
before April 7.
"The whole story?" he quoted McCord as replying.
"You mean you told him the whole story?" Mr. Baldwin said Mr. McCord then said, "Your position is
that you were working for McCord Associates, not for
the re-election committee".
On October 5 the Washington Post reported that
the typewritten memos from the listening post had
gone directly to William Timmons, President Nixon's
liason man with Congress.
This situation is typical of Nixon's greatest
problem. That is the difficulty of keeping everyone
involved from talking. Middlemen like Baldwin, or
wi ves like Martha Mi tchell are not qui te as "motivated" as Stans, Mitchell, McCord, Hunt, Liddy, et.
al.
0
New Names
Meanwhile, several more new names surfaced in
the story. Two of Nixon's top campaign officials
each withdrew more than $50,000 from the secret
contingency fund. Jeb Stuart Magruder, deputy
director of the Re-Election Committee, and Herbert
L. Porter, scheduling director for the committee,
were reported to have drawn funds by the Washington
Post in the September 18 edition. The Post said
that their names and amounts were on the single
ledger sheet record which was destroyed. The Post
said that between five and seven ledger books, each
about l~ inches thick, listing all campaign contributions received prior to April 7, were also destroyed. The single sheet record was kept in
Maurice Stans' safe.
According to Newsweek, September 18, as early as
the summer of 1971, a small, tight, political intelligence team was gathered in the basement of
fices of the Executive Office Building next door to
the White House. Its impact has been felt all
across the 1972 election campaign. The team was
originally formed as a pack of in-house watchdogs.
In the fall of 1971, John Ehrlichman, presidential
assistant, assigned Krogh to plug the security leaks
that began with the Pentagon Papers.
Krogh tapped Charles Colson, who in turn brought
in E. Howard Hunt, according to Newsweek, and thus
the espionage team was born. Liddy, McCord, Barker,
and others joined soon afterward.
The House Banking Committee mentioned a new name
in their list of persons to be subpoenaed for testimony: Murray Chotiner, Nixon's old campaign infighter, was mentioned as a witness. Chotiner has
through the years been as close as anyone to Nixon
in political strategy. His testimony should be very
significant. However, no indication of his role was
given by Patman or the lawyers for the committee.
On October 5, at his first press conference in
many weeks, Nixon was requested by a news reporter
to "make a clean breast about what .YQ!! were trying
to get done at the Watergate". The reporter obviously knew something about the case. Nixon's evasive reply was to fall back on the FBI investigation, quoting them as assigning 133 agents to conduct 1500 interviews and follow 1800 leads. This is
the same kind of claptrap cited whenever anyone
questions the Warren Commission, as though the American public are impressed by sheer volume figures.
The exact same day, Baldwin was telling reporters
about his escapades for Nixon and how he was "encouraged" to shut up about them. He said that he
had decided to become a Government witness in the
Watergate case, in return for an informal promise
that he would not be prosecuted. He said the Nixon
campaign committee tried to disavow his association
with it after the break-in and arrests on June 17.
"Sometime after McCord was released on bond,"
Baldwin told the Los Angeles Times, "he telephoned
me and I told him my attorneys knew the whole story".
26
References
"The Spies Who Came in For the Heat". Newsweek
(September 18, 1972).
"Lawyer Asks Courts to Appoint Special Watergate
Prosecutor". New York Times (September 19, 1972).
"Democrats Win Move to Name'Stans as Defendant in
Spy Suit". New York Times (September 2.1, 1972),
"Democratic 'Bug' Set After June 17". New York
Times (September 22, 1972).
"Secret GOP 'Spy' Fund Seen Linked to Mitchell".
White Plains Reporter Dispatch (September 29,
1972).
"Seven Charged in Bugging Plead Not Guilty and Are
Free on Bail". New York Times (September 20,
1972) .
"Watergate Judge Bars Talk of Case". New York Times
(October 5, 1972).
"House Panel Bars Pre-November 7 Inquiry into Bugging Case". New York Times (September 4, 1972).
"President Backs Bugging Inquiry". New York Times
(October 6, 1972).
"Watergate Tapper Reports Logs Went to Nixon's Men".
White Plains Reporter Dispatch (October 5, 1972).
"2 Linked to Secret GOP Fund". Washington Post
(September 18, 1972).
"Watergate Called Part of Big GOP Plan". Washington
Post (September 8, 1972).
"Banzhaf Suit Asks Special Presecutor in Watergate
Case". Washington Star (September 18, 1972).
"Spy Funds Linked to GOP Aides". Washington Post
(September 17, 1972).
"Sources Identify Watergate Tipster". Washington
Star (September 17, 1972).
Appendix 1
MARTHA MITCHELL AND THE WATERGATE INCIDENT
In the August article we said:
•
I
A prime, as yet unanswered, question is the extent to which President Nixon, John Mitchell, and
the White House staff were connected with, or authorized, or knew in advance about the Watergate raid.
Indications from news reports cf a Federal Grand
Jury investigation and an FBI investigation of the
raid are that E. Howard Hunt was still working for
the White House at the time of the raid. Hunt left
the United States on Sunday, June 18 after refusing
to answer FBI questions.
John N. Mitchell, prior to his resignation in
early July as Nixon's campaign manager, was reported
to have initiated his own private investigation.
Martha Mitchell appeared to be very upset by the
Watergate raid because she started putting pressure
on Mitchell to resign shortly after the raid took
place. She told UPI reporter Helen Thomas, there
were "very dirty things" going on in the campaign.
She also claimed she had been made "a political
COMPUTERS and AUTOMATION for December, 1972
I
Ij
,'I
prisoner" by security agents for the Republican
Committee to Re-elect the President. She said one
of them ripped the phone off the wall of her motel
in California just as she was telling Helen Thomas
something about "the dirty business."
After a few days of silence, John Mitchell resigned "to spend more time with his wife and family." On the basis of Mitchell's prior commitments
to Nixon and his record as Attorney General, it
seems very odd that ordinary "dirty politics" would
induce his resignation.
Remarkable new information about all this was
published in Parade for Oct. 22, 1972.
In order to rebut an earlier incorrect report in
Parade, Martha Mitchell wrote that magazine a letter, the contents of which are here reproduced:
September 10, 1972
This is to inform Mrs. Mitchell that "Parade"
tried to contact her in the Beverly Hills Hotel on
June 16, 17, and 18 this past summer. Her bodyguard,
Steve King, a former FBI agent, and presumably a gentleman of honor and decency, promised to relay our
messages. When Mrs. Mitchell and entourage moved
down to the Newporter Inn at Newport Beach, Calif.,
"Parade" again tried to contact her by phone even
though we were told she was not registered there.
When subsequently Mrs. Mitchell flew to the Westchester Country Club in Rye, N.Y., and later presented her husband with an ultimatum to relinquish
his position as President Nixon's campaign manager,
"Parade" once again left messages, beseeching Mrs.
Mitchell to get word to us somehow as she had in
the past.
Unable to contact Mrs. Mi tchell, "Parade" phoned
Steve King for his version of the Newporter Inn battle, and it is his version which we largely used as
our earlier reply. Mrs. Mitchell says we were taken in.
Dear Mr. Scott:
After reading today's "Personality Parade," I
shall come out of my self-imposed retirement to set
a few facts straight.
Indeed it was a Steve King that not only dealt me
the most horrible experience I have ever had -- but
inflicted bodily harm upon me. Such as, kicking me,
throwing me around, keeping me locked up in one room
for more than twenty-four hours, sending my hand
through a glass window, allowing no one inside the
villa except the doctor whom he called -- and last
but not least -- yanked the phone out of my bedroom
while talking with Helen Thomas. He came into my
room while the doors were closed and I was undressed.
Mr. King says, "You understand I can no longer
talk about the incident. All such information must
come from Van Shumway or Powell Moore." Mr. Shumway, in charge of press relations for the Committee
to Re-Elect the President, and Mr. Moore, hi sassi stant, are masters of obfuscation, and what they were
willing to say about Martha Mitchell can be stored
in the eye of a needle.
"Parade" apologizes to Martha Mi tchell for its
inability to ferret out the entire truth of what,
why, where, and when happened to her in Southern
California this past June.
We tried, Martha, but they wouldn't let us get
to you.
From then on I saw no one -- allowed no food -and literally kept a prisoner.
The doctor and all the rest of them should have
been arrested or unless I'm terribly wrong in thinking that people are allowed to treat one thus -- for
simply a telephone calli
Appendix 2
THE WATERGATE CRIME: AN EYE-WITNESS ACCOUNT
BY AN EX-FBI AGENT, ALFRED BALDWIN, 3D
(Based on a report published in the Boston Globe, October 6, 1972.)
This doctor came in with his needle -- and with
the help of King threw me on the bed and injected
something I turned out to be allergic to. The doctor whom I never had seen in my life spoke not one
word nor explained the injection. I should sue them
all.
And in case you or anyone else doubt my word -and listen to the lies of the others -- I might mention my eleven year old daughter witnessed the whole
unbelievable scene.
This is just to set part of the record straight.
I refuse to let these lies be told.
Best wishes to you.
Sincerely,
Martha Mitchell
"Parade" comments:
In her relationship with "Parade", Martha Mitchell
has always been scrupulously honest. "Parade" in turn
has tried to maintain the identical standard. Mrs.
Mitchell, however, has been a most difficult woman to
contact. She has been kept incommunicado for reasons
known only to others.
COMPUTERS and AUTOMATION for December, 1972
(Alfred Baldwin 3d, a former FBI agent, is a key
government witness in the Watergate bugging case.
Baldwin was monitoring calls to the Democratic National Committee headquarters from a hotel room
across from the Watergate when five other men were
arrested Saturday, June 17, at 2:30 a.m.) This is
his story.)
Men with Guns and Flashlights
Across the street in the Democratic National
Committee offices I could see men with guns and
flashlights looking behind desks and out on the
balcony.
It was a weird
complex. The men
including my boss
security director
lican Re-Election
tional Committee.
scene at Washington's Watergate
were looking for several persons,
-- James W. McCord, Jr., who was
for both President Nixon's RepubCommittee and the Republican Na-
My Boss in Handcuffs
A short w~ile later, McCord and four other men,
all in handcuffs, would be led by police to patrol
cars and taken to jail. And a White House consultant would rush into my motel room across the street
27
from the Democratic offices and peer down on the
scene before fleeing the area.
open, exposing considerable electronic equipment.
I was told it was a debugging unit.
Three Weeks Eavesdropping
Howard Johnson Motel Across from the Watergate
I had been using a walkie-talkie and acting as a
lookout for McCord and his men, who were engaged in
a bugging operati on. For three weeks I had moni tored
conversations on a tapped phone in the Democratic
offices.
At McCord's direction, I moved from the Hoger
Smith Hotel toilie Howard Johnson Motel across the
street from the Watergate. I checked into room 419,
which he had registered under McCord Associates,
the name of his security firm.
My mission had been to record all conversations.
McCord appeared to be especially interested in any
information on Sen. George McGovern and the Democratic Party chairman, Lawrence O'Brien, and anything having to do with political strategy.
On May 24, after about two weeks of covering
demonstrations, I visited my home in Hamden. When
I returned to Washington the next day, I found Jim
McCord in room 419 surrounded by an array of electronical equipment, including walkie-talkies and
the debugging case that had been in his office at
the He-election Committee.
Hired for Security Work with Mrs. Martha Mitchell
When the Committee for the He-Election of the
President hired me for security work with Mrs.
Martha Mitchell, nothing was said about eventual
espionage missions involving electronic eavesdropping.
James W. McCord
But then the man I worked directly under, Jim
McCord, was not given to long explanations about
anything. You would have to know McCord to understand what I mean.
Like myself, McCord is an ex-FBI agent. But he
also served 20 years in the Central Intelligence
Agency, and he is one of those ex-CIA agents who do
more listening than talking. When he wants you to
do something else, he just tells you. No build-up
or anything.
When McCord was ready to switch me from protecting John Mitchell's wife to other security work,
he simply told me that the President's He-election
Committee had other work for me.
I never questioned McCord's orders. I felt I
was acting under orders and with full authority.
After all, his boss was John Mitchell, the Committee director and former Attorney General of the
United States.
If that was not enough to impress me wi th McCord's
authority and official standing, we were surrounded
by former White House aides McCord said were "on
loan" to the ,Commi t tee.
We went
proval for
rue is over
right hand
to the office of Fred LaHue to get apmy employment, and McCord said, "Mr. Lafrom the Whi te Hou se. He's John Mi tche 11 ' s
man."
Pistol: No License
McCord later issued me a loaded .38-snub-nosed
police special and said, "You'll wear this." I had
no permit or official identification and questioned
whether I was authorized to carry it.
He handed me a card bearing his name and the
name of the He-election Committee and said: "You're
working for the former Attorney General, and there's
no way a policeman or any other law enforcement officer is going to question your right to carry that
weapon. But if you have any problem, have them
call me."
In McCord's office at Committee headquarters I
noticed extensive electronic equipment -- walkietalkies, television surveillance units and various
other devices. The top to a fancy briefcase was
28
$15,000 Eavesdropping Equipment
A sophisticated receiving set, which McCord later
said was worth approximately $15,000, was in a large
blue Samsonite suitcase. There was a portable radio
with shortwave band and an array of tape recorders
and other pieces of equipment.
McCord said, "I want to show you some of this
equipment and how we're going to use it." Just like
that, no preliminaries and no explanations of why we
would use it.
McCord pointed across the street to the Watergate
and said, "We're going to put some units over there
tonight, and you'll be monitoring them." He didn't
have to tell me; I knew the Democratic National Committee offices were in the Watergate.
McCord Entering the Watergate
From the balcony outside room 419, I watched
McCord walk across Virginia avenue and enter the
Watergate complex. Subsequently he appeared at a
window of the Democratic offices, and I could see
at least one other person and perhaps two with him.
McCord later returned to the motel room and said,
"We've got the units over there."
McCord told me two men who were working with him
were coming into the motel room, and he would introduce us by code names since we were all involved in
security work. He introduced them as Ed and George.
I have since learned they were G. Gordon Liddy and
E. Howard Hunt, Jr., former White House aides.
McGovern Headquarters: Attempt
On May 26, McCord told me, "We're going into
another area tonight."
About midnight, McCord and I left in his car and
headed toward the Capitol. He was driving and holding a walkie-talkie, which he hooked on and held out
through the car window. He finally contacted another uni t as we neared the Capi tol and said we were
approaching the area.
He told me to keep an eye open for a Volkswagen,
there was someone in it who would be working with
us. On a street near the Capitol we passed a small
building bearing a McGovern Headquarters sign, and
McCord pointed and said, "That's what we're interested in right there."
Not unti 1 then did I realize that the target was
McGovern Headquarters. An upstairs light was on,
and a drunk was standing in front of the building.
COMPUTERS and AUTOMATION for December, 1972
McCord pointed to a row of buildings across the
street from McGovern Headquarters and said, "We're
trying to rent a place over there where you'll be
doing the same thing you're doing in the other
place."
As we passed a parked car about a block from
McGovern Headquarters. a voice came in over McCord's
walkie-talkie: "You just went by us, did you see us?"
McCord replied that he had and pulled our car
alongside the parked car. There were people in
the front and back seats.
A man stepped from the car, walked over to our
car and slid into the seat beside me and started
talking to McCord without even acknowledging I was
there. It was Liddy. r could not identify the
persons in the back seat.
McCord and Liddy seemed to be nervous because
the Volkswagen had failed to show up and because
the drunk was still in front of the building. Finally, about 3:30 a.m., Liddy said, "We can't do it
tonight; we'll have to do it another night."
We let Liddy out of his car, and McCord drove me
back to the motel where r would resume my monitoring
activities.
A few days after the monitoring began, McCord
instructed me to find another room that would give
us a better view of the Democratic offices and perhaps help us establish contact with the tap there
that we had been unable to monitor.
I checked us into 723 with a view directly across
from the Democratic Offices.
"Casing" the Democratic Headquarters
On June 12, McCord told me to visit the Democratic Committee offices under my code name to find
out what I could about O'Brien's whereabouts and
the location of his office. Since I am from Connecticut and familiar with the Democratic Party officials there, I passed myself off as a nephew of our
state chairman, John Bailey.
I made a mental note of the office!s location
overlooking the Potomac River, and I asked if anyone knew O'Brien's whereabouts. His secretary said
he was somewhere in Miami, and subsequently I was
furnished O'Brien's telephone number in Miami.
I returned to the motel room and gave McCord the
number, and we went over a sketch of O'Brien's office. He seemed extremely pleased.
There were also plans to return to McGovern Headquarters on the weekend. McCord said, "You know
the place we were at the other night? We've got to
go back there."
Later, Liddy and Hunt came into the motel room.
With McCord they walked out on the balcony and
looked over toward the Democratic offices.
Stack of $100 Bills
Before Liddy left, he reached into his inside
coat pocket and withdrew an envelope containing a
thick stack of brand new $100 bills. He counted
off about 16 or 18 bills and handed them to McCord,
who put them in his wallet.
On Friday evening, June 16, McCord displayed a
unit that I thought looked like door chimes. He
COMPUTERS and AUTOMATION for December, 1972
removed the unit's cover, exposing a sophisticated
electronic device.
Later in the evening, McCord displayed a shopping
bag full of different kinds of tools and equipment
-- screwdrivers, wires, batteries, and soldering
irons. The room ended up looking like a small electronics workshop.
We both continued working on the devices for some
time. During a telephone conversation, McCord said
he might have to wait until another night to carry
out the mission ... Some guy was still working in
the Democratic offices.
"The Lights Are Off in Democratic Headquarters"
Suddenly I saw the light in the Committee offices
go off, and I told McCord, "Hey, look. The guy's
leaving now."
McCord told the other party that the light had
been turned off and that they could proceed. Then
he handed me a walkie-talkie and said he was going
across the street. He said, "If you see anything
unusual. any activity, anybody around, you get on
this and let us know."
He took his wallet, change, car keys and other
items from his trouser pockets and dropped them on
the bed. He left the room with a raincoat over his
arm.
Less than an hour later, the lights on the entire
floor above the Democratic Committee offices went
on. I picked up the walkie-talkie -- I don't remember whether I identified myself as "uni t 1" or "base"
-- but I said, "We've got some activity."
Walkie-Talkie Conversation
A man whose voice I did not recognize -- it was
not McCord -- responded, "What have you got?"
I mentioned the lights going on, and he replied,
"Okay, we know about that, that's the 2 o'clock
guard check. Let us know if the lights go on any
other place."
My watch indicated it was 2:15.
guard check was late.
I figured the
Not long after that, a car parked in front of
the Watergate and three men got out and went inside.
r wondered if that meant anything, but I did not
use the walkie-talkie at that time.
The Lights Go On Again
Suddenly, a few minutes later, the lights went
on inside the Democratic offices. I noticed the
figures of three men. At least two of them came
out on the balcony. They were casually dressed and
were carrying flashlights and guns. I could see
one man in the office holding a gun in front of him
and looking behind desks.
Watching from the balcony outside my room, I
grabbed the walkie-talkie and said, "Base to any
unit." A voice came back, "What have you got?"
I said, "Are our people dressed casua lly or are
they in suits?"
An anxious voice asked, "What?" and I repeated
the question.
"Our people are dressed in suits," the voice said.
29
"Well," I answered, "we've got problems. We've
got some people dressed casually, and they've got
guns. They're looking around the balcony and everywhere, but they haven't come across our people."
The man on the other end sounded absolutely
panic-stricken now and started calling: "Are you
reading this? Are you reading this?"
Recei vi ng no reply, he then added: "They don't
have the unit on or it's not turned up. Are you
still in the room?"
I replied:
He said:
"Right."
"Stay there.
I'll be right over."
Pol ice Activity
By now, there was all kinds of police activity
-- motorcycles and paddywagons driving up and guys
jumping out of patrol cars and running up to the
Watergate. Then I saw two men carrying suitcases
casually walking out of the hotel section. I recognized one as Hunt, he glanced up at the balcony
where I stood, and then with the other man walked
over and entered a car parked in front of the Watergate. The two of them drove away.
Moments later, I was contacted on the walkietalkie again and told: "We're on the way up. Be
there in a minute." I said, "You'd better not park
near this building, police are allover the place."
He said, "Okay."
NUMBLES
Neil Macdonald
Assistant Editor
Computers and Automation
A "numble" is an arithmetical problem in which: digits
have been replaced by capital letters; and there are two
messages, one which can be read rignt away and a second
one in the digit cipher. The problem is to solve for the
digits.
Each capital letter in the arithmetical problem stands for
just one digit a to 9. A digit may be represented by more
than one letter. The second message, which is expressed in
numerical digits, is to be translated (using the same key)
into letters so that it may be read; but the spelling uses
puns or is otherwise irregular, to discourage cryptanalytic
methods of deciphering.
We invite our readers to send us solutions, together with
human programs or computer programs which will produce
the solutions. This month's Numble was contributed by:
Andrew M. Langer
Newton High School
Newton, Mass.
Then I heard a voice from another unit whisper,
"They've got us." Then McCord's voice came through:
"What are you people? Are you metropoli tan police
or what?"
NUMBLE 7212
Another voi ce demanded: "What's that?" And then
the unit went silent. I tried to renew the contact,
but to no avail.
L
Hunt: Very Nervous
L L C A C
R 0 I
I told him I saw McCord and some other men being
led away from the Watergate in handcuffs. He walked
over, looked down at the scene and then said: "I've
got to call a lawyer."
Picking up the phone, he dialed a local number.
"They've had it," he told the party on the other
end, adding: "Well, I've got $5000 in cash with me
we can use for bond money."
Hunt, hanging up the phone, turned and asked if
I knew where McCord lived. I said yes, I had been
to his house in Rockville, Md., a Washington suburb.
He instructed me to pack all the equipment and take
it to McCord's house and asked if I had a place to
go.
E=F
x I S A
A few minutes later Hunt, wearing a windbreaker,
rushed into the room. He was extremely nervous.
"What do you see'?" he asked.
F E
N G
N C N G 0
NOERCAC
8926 7200 713
Solution to Numble 7211
In Numble 7211 in the November issue, the digits 0
through 9 are represented by letters as follows:
H=O
T=5
N= 1
U=6
0=2
F, 1=7
L=3
E=8
R=4
A, S = 9
I said I could go to my home in Connecticut, and
he said, "Well, get all thi s stuff out of here and
you get out of here. Somebody will be in touch
with you."
The message is: (The) Fruit falls under the tree.
With that, he threw his walkie-talkie on the bed
and rushed from the room. "Does that mean I'm out
of a job?" I shouted after him. But h.e disappeared
down the hallway without answering.
[]
Our thanks to the following individuals for submitting
their solutions - to Numble 7210: T. P. Finn, Indianapolis, Ind. - to Numble 729: M. Emerson and C. Prickett,
Honolulu, Hawaii.
30
COMPUTERS and AUTOMATION for December, 1972
The Reality Behind the Lies in South Vietnam
Dr. George Wald
Higgins Professor of Biology
Harvard University
Cambridge, Mass. 02138
°1 teach young men and women at Harvard. I talk with them. In their
desperation, disillusionment, and disappointment, a lot of them have come
to talk as though they have to invent a whole new world. I take every
chance I can to say to them, 'You don't have to invent it all, just try
to fulfill some of it.' "
Frighteningly Rapid Debasement
We are not only witnessing, but taking part in
a frighteningly rapid debasement of all that America has meant and tried to mean. We are witnessing
the rapid abdication of responsibility by our Congress, the degradation of our Supreme Court and
hence, the effective disappearance of the system
of checks and balances upon which the American system rests. It has indeed gone. We have lost it.
The only question that remains is whether there is
any possibility of retrieving it.
Unrestrained Executive Government
We are living in a country that has lately gone
over to virtually unrestrained executive government, the thing that the founders of this nation
were most anxious to avoid.
Governments that Get their Arms Free
from the United States
Philippines, have declared martial law and sealed
off their parliaments.
Feeble Reasons
Why do we stay so persistently in a war that
most Americans repudiate and are so anxious to get
out of? One is told all kinds of things: that it
is national pride, that Mr. Nixon refuses to be
the first American President to lose a war, that
we cannot bring ourselves to admit a mistake. All
those reasons sound rather feeble to account for
so much killing and destruction and such wast~ of
our energies and resources.
An Answer that Makes More Sense
I should like to suggest an answer that I think
makes more sense. The Vietnam war, whatever else
it may be, is a fantastically big business. I would
like to talk about how big a business it is.
Fantastically Big Business
That executive government is now leading the
largest collection of military dictatorships ever
assembled. It calls that collection ~f military
dictatorships the free world. That phrase used to
give me trouble until I finally understood what it
meant. The free world consists of those nations
that get their arms free from the United States.
One-Man Elections
While I was in Saigon a year ago last August,
that strange one-man election was being got ready,
that our Administration afterward declared to have
been a "plebiscite". It occurred on Oct. 3,1971.
A few weeks before, Mr. Nixon spoke to the American
people to reassure them. He pointed out that of
the 91 nations receiving American AID programs,
only 30 had contested elections.
Americans by now have lost all sense of what a
billion dollars means. In 1968 the gross national
product of South Vietnam, a nation of 17.5 million
people. was $2.5 billion. Gross national product
involves all production, services, the transfer of
goods, all the trade, everything. In that year we
spent $30 billion on the war. $23 billion was its
"incremental cost", that is, extra expenditure
purely on that war.
In 1970, the gross national product of South
Vietnam had risen to $4 billion; and mainly because
of the withdrawal of ground forces, the incremental
cost of the war has been falling. In the past yea~
the incremental cost was supposed to have fallen to
about $8 billion. but the renewed heavy bombing of
North Vietnam has raised that incremental cost to
between $10 and $12 billion.
Sealing Off Parliaments
Where are the Billions Spent?
Within a matter of weeks, the heads of two of
those nations, Thailand and Cambodia, both ex-generals, declared that they had had enough of "our
futile experiments with democracy", and would no
longer convene their parliaments. And, recently,
two more of those nations, South Korea and the
(Based on a talk given at the First Unitarian-Universalist Church.
Concord. Mass_. October 1972)
COMPUTERS and AUTOMATION for December. 1972
We use that phrase, "the cost of the war". Costs
to whom? Where is that money spent? Not much of
it in Southeast Asia. Almost all that money is
spent here. The whole transaction is completed in
this country.
That money is poured ~ut, in the form of taxes,
by the bulk of the American people to flow into the
pockets of a few Americans.
31
Making "Big Money"
You put together that gross. national product of
South Vietnam and what we pay other Americans to
keep the war going, and you come to the terrible
realization that there is enormously more money to
be made strewing American military hardware over
Vietnam than if you took over the whole country
and wrung it dry.
"Development" of Southeast Asia
About a year ago, there were two reports submitted on "development" in Southeast Asia, neither of
them for publication; but part of the present
strange American scene is that all such confidential documents are promptly leaked, s~ that all of
us who were interested were soon reading these confidential reports.
One of them was by Prof. Emile Benoit of Columbia University, the other by Prof. Arthur Smithies
of Harvard. I quote a passage from Prof. Smithies'
report to the Institute for Defense Analysis:
Paved Highways, Power Plants, ....
"The war has provided Vietnam with paved highways from end to end, with more airfields than it
can possibly use, with spectacular harbors, with
an elaborate communications system, with power
plants, and with potable water in Saigon ... The
impression is inescapable that the plusses greatly
outweigh the minuses ••• at fantastic cost the war
has fulfilled the necessary preconditions for development."
destruction, is explOding. In 1963 the gross national product was $2.5 billion; by 1970, it had
risen to $4 billion. Nothing like that has yet happened in Laos and Cambodia, but they are being prepared for it.
Oil Boom
That is the plan for Southeast Asia. I must
also mention offshore oil. The Wall Street Journal
under the heading "Boom in the Making: Drilling Fever Spreads in Southeast Asia", noted in 1970:
"The area is South Vietnam's continental waters.
The Vietnamese have divided the area into18 blocks,
which are expected to be parceled out soon, probably mostly to Americans. Oil companies remain quiet
to maintain a bargaining advantage. The block sizes
are so immense that just one of Gulf's many blocks
here is about the size of the state of Oklahoma .•.
Southeast Asia holds many advantages for oil companies ."
One Woman in California
Then a woman in California, just a citizen, a
member of the organization called "Another Mother
for Peace" somehow got wind of this. That woman
started a personal campaign in which she was shortly joined by the other mothers. She kept xeroxing
the information out of trade and financial journals, and kept sending it to congressmen and senators. One day she thought of me and I got a big
package to read. It was frightening, because this
had been going on for months and not one word in
newspapers that we ordinary citizens read.
Oil Parcel Auction Called Off
Construction Combine
All the construction in South Vietnam cited by
Prof. Smithies has been done by the world's largest
construction combine, Raymond, Morrison, Knudsen -Brown, Root and Jones (RMK-BRJ). Brown and Root
is a Texas outfit specializing in government construction. In a speech in the Senate in 1953,
Wayne Morse said, "Texas sends us two senators, one
from Standard Oil, the other from Brown and Root."
By the latter he meant Lyndon Johnson. Another
Texas politician said to have about as long and
close an association with Brown and Root is John
Connally.
Urban Work Force
Prof. Benoit's report to the Asian Development
Bank was much the same. But neither of these
scholars chose to mention perhaps the most important precondition for development. It is the product, not of the production, but of the destruction.
By August, 1971, Saigon's population had quintupled since the war began, through the influx of
approximately 3 million refugees. Peasants had
lost everything; their homes were gone, their villages were gone, their land had been destroyed.
You can't farm a B52 bomb crater. The refugees
are now ready to be transformed into an urban proletariat. Anybody who wants to start a business
now in Saigon finds plenty of desperately cheap
labor.
"Exploding" Economy
That "development" is already well under way.
The economy of South Vietnam, in spite of all the
32
By the time she had begun her campaign, President
Thieu of South Vietnam had announced publicly that
in February, 1971, there would be an auction of 18
parcels of territory off the shores of South Vietnam
for oil prospecting, one of them as big as the state
of Oklahoma. That deal was stopped by one Mother
for. Peace for, by the time she got through, the newspapers had to pay attention, and the whole thing became so embarrassing that the auction was called off.
The New Kind of Exploitation
Imperialism in its old fashioned forms involves
things like oil and tin and other resources, and
all kinds of ventures carried out in various parts
of the so-called underdeveloped world. But this is
a new game, and Americans had better become aware
of it, because we are in it up to our ears. I will
call it by its new name, "Domestic Imperiali sm" .
I have in fact already been talking about it.
There are those fantastic sums of money that we
use this strange phrase for -- "The war is costing
us" -- when the entire transaction is completed
right here. Congress has just voted the next new
arms budget. For years now it has run something
over $21 billion annually, and it has just voted
the next $21 odd billion for new arms in the coming
year.
Who Pays for the Arms?
Those arms are bought and paid for by the American people with Federal tax money. The whole
transaction is completed here. The only problem
that remains is to keep them turning over, so that
we can buy and pay for some more. That is part of
what the war in Southeast Asia is about.
COMPUTERS and AUTOMATION for December, 1972
Giving the Arms Away
to "Free" Dictatorships
There is a second way of getting rid of those
arms. We give them away all over the "free world".
Our AID program represents a striking example of
American generosity to the peoples of the underdeveloped countries. In fact the bulk of AID resou"rces
goes into providing arms and police forces to those
military dictatorships that now principally constitute our "free world". In South Vietnam, for example, when I was there last year, $30 million of
AID money went to pay for the police, $6 million
went for education.
A Dictatorship Here?
So here we are, we once proud Americans, This
is the pass we have come to: we have executive government, we have that beautiful free world composed
mainly of military dictatorships. Having got so
used to military dictatorships abroad, is it possible that Americans might some day accept something like that to preserve law and order here?
Where do we come out?
Trying Democracy
Giving the Arms Away as "Food for Peace"
I'd love to try democracy. The only revolution
I'm interested in is the American Revolution. I'd
love to get on with it.
Have you heard about "Food for Peace", a program
of the Department of Agriculture? In testimony before the Joint Economic Committee of Congress in
January, 1971, it was brought out that from 196570 nearly $700 million in Food for Peace funds had
gone out in the form of arms, over $100 million
worth in 1970 alone.
I teach young men and women at Harvard. I talk
with them. In their desperation, disillusionment,
and disappointment, a lot of them have come to talk
as though they have to invent a whole new world. I
take every chance I can to say to them, "You don't
have to invent it all, just try to fulfill some of
it."
Giving the Arms Away as "Surplus"
Voting a New American Revolution
Then there is a third way. In those same hearings before the j oint Economic Commi ttee of Congress
-- the committee chaired by William Proxmire, who
deserves·ever so many more medals than he gets -the Department of Defense, asked how much military
hardware they had on hand that had been declared
surplus, replied $17 billion worth. That is almost
a year's arms procurement, simply declared surplus,
mainly to be junked.
The dream is a noble dream: equality of opportunity; liberty and justice for all; government of
the people, by the people, and for the people.
Those are the things that many of us -- I hope most
of us -- want. They are the meaning of America.
Yet by now it will take a new American revolution
to fulfill them. It is my hope that we can vote
ourselves that revolution, and so begin to repossess our country.
[]
Throwing the Arms Away as "Junk"
As Lt. Gen. Robert H. Warren testified at that
time, "If nobody wants to buy it -- that is, the
countries that are authorized to do so -- you cannot sell it to any private institution; and the
last place it goes is to the Military Assistance
Program. If we don't use it or can't, and we only
use equipment which matches our forecasted requiremen ts, it goes to the j unkyard
0
"
To Deal in Big Money ....
There are only a few countries in the world that
have gross national products bigger than $21 billion, which is nearly twice the gross national product of the whole of Indochina.
The point is that if
kind of money, you have
cannot get that kind of
they don't have it. If
you have to go where it
us.
you want to deal in that
to go where it is. You
money out of Southeast Asia:
you want that kind of money
is. And that's here. That's
Biggest Cash Supply in the World
American Federal taxes represent the biggest sum
of ready cash in the world: $207 billion in 1971.
That is where the really big money is to be made,
not in the old fashioned imperialism of exploiting
hungry and under-developed nations and people, but
in the new fashioned domestic imperialism of exploiting the affluent American people.
We are the "Colony"
That's why it is called domestic imperialism. We
are the colony. As a black friend of mine said to
me, "We're all on the plantation now."
COMPUTERS and AUTOMATION for December, 1972
Unsettling, Disturbing, Critical
Computers and Automation, established 1951 and
therefore the oldest magazine in the field of computers and data processing, believes that ,·the profession of information engineer includes not only
competence in handling information using computers
and other means, but also a broad responsibility,
in a professional and engineering sense, for:
The reliability and social significance
of pertinent input data;
The social value and truth of the
output results.
In the same way, a bridge engineer takes a professional responsibility for the reliability and
significance of the data he uses, and the safety
and efficiency of t~e bridge he builds, for human
beings to risk their lives on.
Accordingly, Computers and Automation publishes
from time to time articles and other information
related to socially useful input and output of data
systems in a broad sense. To this end we seek to
publish what is unsettling, disturbing, critical
-- but productive of thought and an improved and
safer "house" for all humani ty, an earth in which
our children and later generations may have a future, instead of facing extinction.
The professional information engineer needs to
relate his engineering to the most important and
war,
most serious problems fn the world today:
nuclear weapons, pollution, the population explosion, and many more.
33
The Central Intelligence Agency:
A Short History to Mid-1963 -
Part 2
James Hepburn
"I never had any thought . .. when I set up the CIA, that it would be injected into
peacetime cloak-and-dagger operations. Some of the complications and embarrassment
that I think we have experienced are in a part attributable to the fact that this quiet
intelligence arm of the President has been so removed from its intended role ... "
- Harry Truman, President of the U.S.
quoted at the start of the chapter
Introductory Note by the Editor
The book "Farewell America", by James Hepburn,
was published in 1968 in English by Frontiers Co.
in Vaduz, Liechtenstein; 418 pages long, including
14 pages of index. James Hepburn is a pseudonym;
the book is reputed to have been written by the
French Intelligence, in order to report to Americans what actually happened in the assassination
of President John F. Kennedy. Copies of the book
may be purchased readily in Canada, and at one or
two addresses in the United States. No bookstore
in the United States that I know of will order and
sell copies of the book. (Inquire of the National
Committee to Investigate Assassinations, 927 15th
St. NW, Washington, D.C. 20005, for ways to purchase the book.) The twenty chapters are absorbingly interesting, and well worth reading.
Information about secret intelligence services
and the way they operate is of course not in the
open literature. In the two and a half years
since I read the book, I have seen no demonstration that any of the information contained in the
book is false -- and the information does tie in
with much else that is known. Perhaps more than
90% of what is in the book is true.
The following article is based on Chapter 15,
"Spies", of "Farewell America". Part 1 was published in the November, 1972, issue of "Computers
and Automation". Part 2 is published here.
Worldwide Extension of the CIA
Beginning in 1955, the CIA extended its intelligence networks on the continent of Africa, which up
till then, with the exception of Egypt and Libya,
had been considered of secondary importance. It
established itself solidly in Algeria, the Republic
of South Africa, the ex-Belgian Congo, French West
Africa and the Portuguese African colonies. Latin
America and the Caribbean were controlled by its
American Division.
Preparations for the Invasion of Cuba
When Kennedy entered the White House, preparations
were already underway for an invasion of Cuba. The
34
project had originated with an executive order signed
by President Eisenhower on March 17, 1960 authorizing
the clandestine training and armi ng of Cuban refugees.
The operation was directed by Richard Mervin Bissell,
Jr., a brilliant graduate of the London School of
Economics and former professor of economics at Yale
who had joined the CIA in 1954 and, as director of
its Plans Division, had supervised the U2 project.
Bissell's original plan included the organization of
guerilla troops in Cuba itself, but the shortage of
qualified volunteers and the lack of support among
the Cuban population and Castro's army rendered this
impossible. Instead, Allen Dulles decided on a military invasion of the island by Cuban exile forces.
Training Sites
The CIA immediately began looking for a suitable
training site. At the beginning of April, 1960,
Robert Kendall Davis, First Secretary of the American Embassy in Guatemala and the local CIA Station
Chief, visited Guatemala President Ydigoras at his
official residence, situated out of precaution on
the grounds of the Guatemalan military school. 23
Ydigoras, who had no sympathy for Castro and who
was also faced with a mounting budget, agreed to
allow the CIA to train "special forces" on a base
in Guatemala. The CIA chose the "Helvetia" coffee
plantation atRetalhuleu, which covered 5,000 acres,
was easy to guard, and offered 50 miles of private
roads. There it established a training center for
saboteurs and combat forces equipped with barracks
and a swimming pool.
At the end of May, 1960, the CIA ~et with representatives of the five Cuban exile groups, which
joined in a common front, the Cuban Revolutionary
Council, for which the CIA opened bank accounts in
New York, New Orleans, and Miami. The majority of
the Cuban exiles lived in Florida or Louisiana.
Word spread quickly that something big was in the
wind and that there was no lack of funds. Volunteers
poured in, and a first contingent of men described
as "geometrical engineers" departed for Guatemala
at the end of May, 1960.
Training Anti-Castro Cubans
The CIA provided military specialists and foreign
technicians, mainly German and Japanese contractuals,
COMPUTERS and AUTOMATION for December, 1972
to train the Cubans as radio operators, paratroopers,
frogmen, saboteurs, and in the techniques of BOA.24
In August, an airstrip was constructed, and the first
planes, camouflaged as civilian aircraft, landed at
Retalhuleu. 25 An airlift was established between
the CIA bases in the United States and the base at
Guatemala. The volunteers who applied to the recruitment offices camouflaged behind the names of
various associations in New Orleans and Miami were
interrogated, their background was checked, and
they were tested in the training camps run by the
CIA in the Everglades near Miami and on Lake Ponchartrain in Louisiana before being flown from a
clandestine airport, Opa Locka or R2, to Retalhuleu.
All of these activities were conducted in that
special atmosphere of mystery and secrecy so dear
to intelligence people, with false identity papers,
planes without lights, post office box addresses,
fake licence plates, securi ty checks, "advice", and
informers -- official or otherwise. Anti-Castro
fanatics of bourgeois background rubbed shoulders
with unemployed or hungry Cuban refugees, Castroist
agents, mercenary pilots, U.S. Marine Corps instructors, mail collectors, Japanese karate specialists,
arms dealers,26 soldiers of fortune, Army Colonels,
and extremist orators. Under the scrutiny of the
FBI they milled about and crossed each others' paths,
play-acted, pretended not to know one another, flew,
fought, talked of their island home or drugged themselves in hotel rooms, apartments, or bungalows
rented by the CIA using the names of tourists or
non-existent companies. From time to time, top CIA
men from privileged backgrounds, exuding Anglophilia
and a gentlemanly attitude, came to inspect their
troops.
Across the water in Cuba, these events were followed attentively by Ramiro Valdes, chief of the
Cuban Intelligence Service, and Sergei M. Kudryatsev, Soviet Ambassador to Cuba and a veteran KBG
agent. The CIA knew, of course, that they knew,
but the preparations dragged on. Dulles requested
Bissell to speed up the training. He wanted the
invasion carried out before the Novembex.• 1960 Presidential elections. But there were delays in the
recruiting and training of the Cuban pilots needed
to parachute supplies and carry out bombing raids.
In September, 1960, despite all the extra efforts,
the overtime and the bonuses, the invasion force
still wasn't ready. Then bad weather intervened.
The CIA realized that it would have to postpone the
operation until the spring of 1961. The extra time
was used for additional training and to strengthen
the logistics of the operation.
John Kennedy's Support for the Invasion of Cuba
On October 20th, 1960, towards the end of his
electoral campaign, Kennedy declared that the United
States should "attempt to strengthen the non-Bastista
democratic anti-Castro forces in exile, and in Cuba
itself, who offer eventual hope of overthrowing Castro." This campaign position, which probably contributed to Kennedy's victory, reassured the CIA,
but it placed Kennedy in an uncomfortable position
when he was confronted with the impending invasion
the following spring (he had been partially informed
of the plan in his capacity as President-elect by
Allen Dulles in November, 1960).
The invasion was a disaster. The remnants of the
Cuban exile brigade were captured in Cuba. The CIA
had lost the first round. The second was won a year
later. in October, 1962, by Kennedy, when he persuaded the Soviets to dismantle their Cuban missile bases.
COMPUTERS and AUTOMATION for December, 1972
On December 24, 1962, 1,113 captured survivors of the
invasion brigade were traded for a large quantity of
medicine and drugs. 27 On December 29th, Kennedy paid
homage to their courage in Miami. In January, 1963.
450 of these men, including 200 officers, were retrieved by the CIA, which had begun to organize another invasion force. Once again they were sent to
camps in Florida and Loui siana, where they were
trained until the spring of 1963. 28
"Punishing" the' CIA for Failure
But the CIA did not go unpunished for its failure.
Kennedy had decided to take the intelligence agency
in hand. He blamed it not only for the Cuban fiasco,
but for activities in Central and South America and
the Far East which ran counter to his foreign policy.29
After relying during the first months of his administration on the experts, Kennedy had ordered a member of his staff, McGeorge Bundy, to represent him
in Special Group 54/12. 30
But he was dissatisfied
with the results. Dulles was condemned. He was allowed a few months of respite to save his face, but
on November 29, 1961 he was replaced by ~ohn McCone.
The Kennedy choice of McCone was surprising.
McCone was a good Republican, but he was hardly as
pure as Douglas Dillon. His entire career had been
spent in the oil industry. In 1937, at the age of
35, he had been one of the founders of the Bechtel
McCone Parsons Corporation of Los Angeles, which
specialized in the construction of petroleum refineries and electrical power plants in the United
States, Latin America and the Middle East. During
the Second World War, McCone's California Shipbuilding Company3l had earned huge profits. Later he
took over Panama Pacific Tankers, a fleet of oil
tankers. In 1961 he owned a million dollars worth
of stock in Standard Oil of California. 32 After his
appointment, he offered to sell them 33 , but the Senate Armed Services Committee concluded that this was
unnecessary, although Senator Clark of Pennsylvania
protested that the American oil industry, like the
CIA, was deeply involved in the politics of the Middle East.
What was the reason behind Kennedy's choice? It
has been suggested that "with a conservative Republican at the head of the invisible government, the
President clearly thought the political fire would
be somewhat diverted".34 The fact is that the world
of intelligence was repugnant to President Kennedy,
although he was well aware of its power. 35 He put
off this problem until later, considering it of only
secondary importance. It was not resolved until after his death. 36
Resentment, Disillusion, and Conflict between
the CIA, the FBI, and
the Defense Intelligence Agency
In the spring of 1963, the anti-Castro invaders
were killing time in Florida and Louisana. Many of
them had been surprised and disillusioned when the
Air Force and Navy planes had failed to come totheir
rescue in 1961 at the Bay of Pigs. Their resentment
had been aggravated by their captivity in Cuba, and
their CIA superiors did nothing to calm them.
In the months of 1963, President Kennedy couldn't
hold a press conference without being asked about
the "16.000 or 17,000" Soviet technicians reported
to be in Cuba. The President was concentrating on
an end to the Cold War, which meant peaceful coexistence with the USSR and the maintenance of the
s~a~us quo with Castro.
But the CIA failed to take
the diplomatic thaw seriously, and word never reacbed
35
the lower echelons. Everything proceeded as before.
In the training camps hope, money and ammunition continued to be dispensed. Preparations were speeded
up, and security precautions were multiplied. The
techniques of secret warfare, the post office boxes,
the clandestine airstrips, the meetings in the Turkish baths and the encounters in the railroad stations, the messages in the toilets, the passwords,
the pseudonyms and the smuggling flourished, all the
more so since the CIA had grown suspicious of the
federal government and distrustful of the DIA. Meanwhile, the FBI carefully noted every encroachment
of the CIA on its territory.37
On October 17, 1962 in New York, the FBI uncovered and seized a cache of arms and ammunition belonging to Castroist Cubans and arrested three men,
including Robert Santiesteban Casanova, an attache
at the Cuban United Nations Mission. This was only
one of the many episodes in the quiet but growing
conflict between the CIA and the FBI over the limits
of their respective jurisdictions. Their struggle
for power grew steadily more serious.
To the anger of the exiles, the impatience of the
CIA, and the investigations of the FBI, something
else was added: the training officers who belonged
to the Minutemen and other extremist organizations
remained in contact with the leaders of these movements, and in particular with disgruntled military
officers like General Walker.
One of the CIA men in New Orleans was named Guy
Bannister. A former FBI agent and member of the
Minutemen, he had worked for the CIA since 1958. His
office was located at 544 Camp Street. His deputy,
Hugh Ward, also belonged to the Minutemen and to an
organization called the "Caribbean Anticommunism
Leaguci", which had been used as a CIA cover group
since the Guatemalan operation in 1954. One of the
people who frequented 544 Camp Street was a young
man named Lee Harvey Oswald.
[End of this article based on Chapter 25 of "Farewell America" ]
Notes
23. Ydigoras' predecessor, President Carlos
Castillo Armas, who had seized power in 1954 in a
coup d'etat organized by the CIA, had been assassinated in the Presidential Palace.
24. Techniques for the recuperation and reception
of personnel and supplies parachuted into an area.
25. The Guatemalan government explained toforeign
diplomats that these were private planes used to
transport fruit and shrimp.
26. Although it possessed enormous stocks of arms
itself and had all of the weapons of the U.S. Army
at its disposal, the CIA was continually buying weapons, particularly foreign-made weapons: Israeli
machineguns, Swiss pistols, Belgian rifles, and even
out-of-date weapons from the Second and First World
Wars, which it supplies to its confederates and "protectorate" states. It even purchased Vampire jets
from Canada. It used well-known firms such ,as Interarmco, as well as fly-by-night arms dealers, which
it protected and paid in either cash or drugs (the
latter imported by the CIA from the Far East).
27. The last shipment of medicine reached Havana
on July 3, 1963. Castro had set a price per head
for the invaders. He demanded $500,000 for Manuel
Artime Buesa, the leader of the expeditionary force,
and $63 million for the 1,200 others. Their ransom
36
was paid mainly by the federal government, which obtained the drugs from pharmaceutical companies at
wholesale prices.
28. Dozens of commercial enterprises in Florida
and Louisiana are actually covers for the CIA. These
include shipping concerns like the Gibraltar Steamship Corporation, airlines like Southern Air Transport, advertising agencies such as Evergreen Advertising, employment agencies such as Workers, Inc.,
import-export firms like Sherman E~port, and: naturally, radio stations such as RadIo Swam wh~ch,
after its cover was blown, became Radio AmerIcas.
The contacts between these cover agencies are
made rarely by telephone, but person-to-pe:son,
through post office box addresses, and by Innocentsounding personal advertisements broadcast over commercial radio stations in Florida and Louisiana.
29. President Kennedy had been informed of the
Bay of Pigs invasion, but not of the C~A'S plan t~
contaminate a shipment of Cuban sugar In Puerto RICO
in August, 1962. This shipment was headed for the
Soviet Union. In its defense, the CIA declared that
it was only following the instructions of the Special Group, which had enjoined it to sabot~ge th~
Cuban economy wherever possible. The PresIdent Informed the CIA that in this instance it had exceeded
its powers.
30. The Eisenhower Administration had sought to
solve the problem of the CIA by exercising a greater
measure of control. In December, 1954, the National
Security Council had created a high-level coordinating body called the Special Group (or Gr?up 5~/12)
consisting of the CIA Director, the PresIdent ~ adviser on national security affairs, the Deputy Secretary of Defense, and the Undersecretary of S~ate
for Political Affairs or his deputy. The SpecIal
Group was supposed to authorize all "black" operations and any expenditure of more than $10,000 that
might have embarrassing political repercussions.
In point of fact, the CIA managed in large measure to escape the control of the Special Group.
During the period between Dulles' disgrace and
McCone's arrival, and at the instigation of the
Pentagon's inter-services study group, which w~s
anxious to take advantage of the temporary eclIpse
of the CIA, the Defense Intelligence Agency (DIA)
was created on October 1, 1961, with the announced
intention of remedying the (presumed) American inferiority in missile technology. Actually, the DIA
brought together the intelligence divisions of the
three branches of the armed services, the Army, the
Air Force, and the Navy, to the benefit of the Pentagon. Lieutenant General Joseph F. Carroll, who
had begun his career in the FBI and served as one
of J. Edgar Hoover's deputies in 1947, when Hoov~r,
in his capacity as an expert, had created a sectIon
for investigation and counter-espionage for the Air
Force in which he left a certain number of "correspondents", was named Director of the DIA.
John McCone, who at the time was head of the
Atomic Energy Commission, favored the establishment
of the DIA, but it would have been difficult for him
to do otherwise, and he changed his mind seven weeks
later when he was named Director of the CIA and saw
how quickly its young rival was developing. By 1963
the DIA had more than 2,000 employees and controlled
all military intelligence.
McCone installed a new team at the CIA. Between
January and May, 1962, General Marshall Sylvester
Carter was named Deputy Director, Lyman Kirkpatrick,
an OSS and CIA veteran, was appointed Executive
Director, Ray S. Cline became Deputy Director for
Intelligence (001), and Richard M. Helms was named
Deputy Director for Plans (DDP).
COMPUTERS and AUTOMATION for December, 1972
31. Ralph E. Casey of the General Accounting Office testified that in 1946 McCone and his associates
had earned $44 million on a $100,000 investment
(mainly on defense contracts).
32. Senate Armed Services Committee Hearing on
the Appointment of John McCone, January 18, 1962.
33. As John Kennedy had done wi th all his stocks
when he became President. (He transformed them into
U.S. Savings Bonds).
34. A more likely explanation was that Kennedy
was a magnanimous President who was more interested
in a person's abilities and experience than in his
political color or his personal opinions. In August,
1963 he appointed Henry Cabot Lodge, who had been
his opponent in the Massachusetts Senatorial race
and again in 1956 in the Vice-Presidential campaign,
as Ambassador to Vietnam to succeed Ambassador Frederick Nolting (a close friend of Madame Nhu).
35. On April 23, three days after he announced
the Bay of Pigs disaster to the nation, Kennedy appointed a board of inquiry composed of Robert Kennedy, General Maxwell Taylor, Allen Dulles and Admiral Burke. On May 4 he revived the Foreign Intelligence Advisory Board presided over by James R.
Killian, to which he appointed Robert Murphy, William Langer, and General Jimmie Doolittle. Killian
was succeeded by Clark Clifford in 1963. The Killian Committee was ordered to make a thorough investigation of the organization of the American intelligence community.
36. In 1965 President Johnson, who is known for
his distrust of cultivated Easterners, appointed a
Texan, retired Vice Admiral William F. Raborn, Jr.
to succeed McCone. David Wise and Thomas B. Ross
wrote in The Espionage Establishment that "The CIA
professionals feared that, perhaps, the choice of
Raborn merely reflected the President's disinterest
in the more intellectual aspects of intelligence."
Helms' promotion as CIA Director in 1966 was a triumph for the OSS Ivy League types. The CIA was back
in the hands of the Establishment.
37. Their rivalry was a result not of the discrepancy in their power on the international scale,
but of the evolution of their activities. Counterespionage in the United States is the exclusive
responsibility of the FBI, and more particularly of
its secret Division (domestic intelligence), which
in 1963 was headed by William C. Sullivan.
This division is in charge of espionage, sabotage,
and subversion. It handles, more than 100,000 cases
a year, and it is responsible for most of the successes (both known and unknown) in the United States
in the field of counter-espionage in the past 20
years. It was the FBI that exposed the National
Security Agency employees (Martin Mitchell, Petersen, and Sergeant Dunlap) who were working for the
Soviet Union.
The FBI had known for some time that the CIA was
behind several official denunciations that impeded
its operations. The FBI bragged that its reports
were more accurate and less hysterical than those
of the CIA, while the CIA considered the FBI a bunch
of choir boys.
When the CIA (which is prohibited by law from
operating within the United States) extended its
activities on American soil, setting up reception
centers and training bases in several states, the
resulting confusion and risk of infiltration led to
encounters, protests, and finally to blows. Soon
the two intelligence powers were setting traps for
one another and organizing reprisals.
[]
COMPUTERS and AUTOMATION for December, 1972
The C&A Notebook on
COMMON SENSE
Vol. 1, No. 22B
Common Sense vs.
Catastrophe
Tuesday, June 29, 1971, was a fateful day for
Samuel Cochran, Jr., a vice president of tne Fifth
Avenue Branch of the Chase Manhattan Bank in New
York Ci ty, age 62. That evening he sat down to dinner
in his home in Bedford, a suburb north of New York,
and ate some cold vichyssoise soup. This is soup
made of pureed leeks or onions and potatoes, cream,
chicken stock, and seasoning, and usually served
cold. Mrs. Cochran also ate some. After eating two
spoonfuls, Mr. Cochran said that it tasted bad, put
it aside, and ate no more.
The next morning Cochran rose in his usual way,
had some breakfast, drove to the railroad station
in Bedford, and took his usual commuting train at
8:15 a.m. to New York. As he looked out the window,
he noticed that he was seeing double.
During the morning his problems in seeing grew
worse. He made a date for 1:30 p.m. with his eye
doctor, Dr. Richard W. Darrell. By the time he got
there he was having difficulties speaking and walking. Dr. Darrell called the family doctor of the
Cochrans, Dr. Henry Co1more, and said to him that
Mr. Cochran might have had a stroke.
Mrs. Cochran drove 40 miles into New York, picked
up her husband, and brought him to Dr. Colmore's
office at 4:30 p.m.
Dr. Colmore was perplexed. He arranged the admission of his patient to a hospital nearby, and
found a neurologist; but the two of them could not
diagnose Cochran's illness. They decided to run
tests, keep their patient under close observation,
give him an anticoagulant to help the blood flow to
his brain in ·case there had been a stroke, and
"stall for time".
At 10:20 p.m., Dr. Colmore called the hospital,
inquired about his patient, and was told "everything
was OK"; and he went to bed.
At 11:20 p.m., the hospital called him and told
him that his patient was dead. Dr. Colmore went to
the hospital, and filled out a death certificate ...
Analysis of the Problem and Solution
Now what is our analysis of this history from
the point of view of the problem, the solution, and
common sense? In this context, common sense means
nontechnical, nonspecialized knowledge, alertness,
initiative, and intelligence which could reasonably
be expected of the main actors in this history ....
FOR A FREE COpy of this dramatic, two-page issue
WRITE: Computers and Automation, C22
815 Washington St.
Newtonville, MA 02160
37
from
L'AuRORE I ParisI
France
Lundi 2 octobre 1972
C'est l'extraordinaire confession faite en exclusivite
a Camille Gilles par un ancien officier du 1 REP
ex-chef des commandos Delta de l'O.A.S. et qui
pratique maintenant l'elevage en Amerique du Sud
er
LE FRANCAIS QUI
DEVAIT TUER KENNEDY
{( M
UNI d'un fusil a lunette infra rouge; Ie devais rater Ie general de Gaulle et tuer Ie president Kennedy. Ceci, tres exactement, Ie
31 mai 1961, lors de la visite officielle de Kennedy en France. L'attentat devait se derouler rue de Rivoli ou, de preference, sur les
Champs-Elysees. Je n'avais pas vraiment besoin de I'infrarouge. On me considerait comme I'un des meille,Urs tireurs de I'armee
fran~aise.
Computers and Automation, a little
before press time, received a copy of a
page in the Pari s newspaper L' Aurore of
Monday, October 2, which contained an
extraordinary report: "The Frenchman who
was to kill President Kennedy". The report begins:
"Supplied with a rifle with an infrared sight, I was to miss General De Gaulle
and kill President Kennedy. This was to
be done, to be precise, on May 31, 1961,
on the occasion of the official visit of
KennedytoFrance. The attempt at assassination was to take place on the rue de
Ri voli or preferably on the Champs Elysee.
I had no need of the infrared sight.
I
was considered to be one of the best shots
in the French Army."
The man who made that fantasti c confession, which is capable of overturning
an enti re page of contemporary hi story,
putting into question the famous Warren
report, and reviving the search for a
conspiracy against Kennedy in the assassination in Dallas - that man is named
Jose Louis Romero.
Nine years after the assassination of
Kennedy, Romero has decided to talk.
Leaving his hacienda somewhere in South
America, he came to Paris, "arriving on
one plane flight and leaving on the next"
(entre deux avions?), to sign an exclusi ve contract wi th Marcel JUllian "P.O.-G."
of PIon and Julliard Publishers.
This
took place on Saturday afternoon ...... .
[Our amateur translation of the first
three paragraphs of the report.]
We hope to publish the translation of
thi s report promptly. Those of our readers who can read French, or who have access to a French translation, will be able
to read thi s report in the origi nal French
in this issue.
38
Le 31 mai 1961, du haut d'un apparte ment de la rue de Rivoli ou des Champs-Elysees,
I'ex-Iieutenant Romero, de I'O.A.S., devait abattre Ie president Kennedy en feignant de viser Ie
: general de Gaulle. On aurait mis I'attentat sur Ie compte d'une tragique erreur, due aux
I problemes interieurs de la France. Et personne n' aurait songe a rechercher les veritables insti·
: ~ateurs du complot : des Americains.
COMPUTERS and AUTOMATION for December, 1972
L'b-omme qui fait cette revelation fan tastique, susceptible de bouleverser' to ute
une, page d'histoire contemporaine, de remettre en
question Ie fameux rapport
Warren et de faire rebondir
l'enquete sur un eventuel
complot contre Kennedy. dans
l'attentat de Dallas, cet homme s'appelle Jose Luis Romero.
Neuf ans apres l'assassinat
de Kennedy, Romero se decide a parler. Quittant son
haclenda, quelque part en
Amerique du Sud, il est venu
a Paris, entre deux avions.
signer un contrat exclusif
avec Marcel Jullian, P.D.-G.
des editions PIon et JuIIiard.
Cela se passait samedi apresmidi. Dans Je jardin d'ete de
la maison PIon, ectitrice des
c Memoires » du general de
Gaulle, cet ancien tueur
des commandos Delta, pendant la guerre d'Algerie, a
commence a dicter son extraordinaire
confession
a
mon confrere Camille Gilles,
grand
reporter
d'origine
pied noir, romancier du drame al::!erien (<< Oil 80nt les
roses de Fouka '! »).
C'est en travaiIlant a son
nouveau lIvre sur la douzaine de tueurs regroupes, au
sein de l'O.A.S., aut,our du
celebre Jesus de Bab-elOued ( c Jesus et ses apotres ,,), que Camille Gilles
etabIit Ie contact avec Jose
Luis Romero et decouvrit
to ute l'histoire d'un premier complot secret contre
Kennedy.
. Au .creul' de l'affaire :
ltbmero. Un grand gaillard
d'un metre 87, monumental,
des yeux tres nairs, Ie corps
recouvert de tatouages et
crible de cicatrices
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