“General Staff” services benefit all
Serving the local communities in their territories is the responsibility of the operating companies. There are, however, general problems shared by all the companies. In order to handle these problems efficiently and at reasonable cost, the operating companies contract with the AT&T Company for those things that a centralized organization can do better and more economically.
This contractual relationship is an outgrowth of the original licensing arrangement, in which the first telephone companies obtained instruments for the use of their subscribers. It was founded on the necessities of the business. It exists today for the same reason.
To meet this responsibility, AT&T is organized to serve the operating companies in matters of engineering and operation, finance, accounting and law, and to assist them in other ways that may help them in conducting their business.
Through AT&T, patent rights covering the results of Bell System research in communications are made available to the operating companies. It is the System’s policy also to make licenses under such patents available to others outside the System on reasonable terms and on a non-exclusive basis.
Placed in service by Long Lines, this teletypewriter system is the “nerve center” of a large business having main offices located in many states.
Among the many AT&T staff services to the telephone companies are those described as “operation and engineering.” These include the entire range of construction, operation, maintenance, methods and practices. The AT&T general staff constantly studies new ideas for improved equipment and practices that may originate anywhere in the System. Promising ideas are developed and tested, usually in collaboration with the Bell Telephone Laboratories. Improvements that result are spread over the whole Bell System.
Besides operation and engineering services, other AT&T groups help the telephone companies devise better business and office routines. Still other groups advise the companies on the most efficient methods in accounting, statistical analyses, public relations and advertising activities, and in all the many other phases of the telephone business.