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Writing Contract Business History

Author(s): Christopher J. Castaneda


Source: The Public Historian, Vol. 21, No. 1 (Winter, 1999), pp. 11-29
Published by: University of California Press
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Historyfor Hire
W ritin g Con tract Busin e ss
Histoz y
CHRISTOPHER J. CASTANEDA
BUSINESS HISTORY is both an are a of spe cializ ation in acade mic histoxy an d
a form of public history. Sittin g at the in te rse ction of the se two disciplin e s,
the practice of busin e ss history e mbodie s man y of the te n sion s that e xist
be twe e n tradition al acade mic histoty an d public histoiy. Acade mic busin e ss
historian s, particularly those who e n g ag e in con tract or spon sore d histoIy,
utiliz e the public historian 's prin ciple s an d te chn ique s while con ductin g
re se arch an d writin g proje cts ofte n de sig n e d for the acade my.l This e ssay
will the e xamin e the public historical aspe ct of busin e ss history, first by
discussin g major issue s in con tract busin e ss histoxy an d the n by p.robin g
thre e con tract proje cts focuse d on twe n tie th-ce n tuly firms.
The public historycharacte r of busin e ss histolyis de fin e d in larg e part by
the busin e ss historian 's n e e d for acce ss to private ly own e d re cords. Al-
thoug h use ful source s of busin e ss in formation be came public be g in n in g in
CHRISTOPHER J. CASTANEDA is associate profe ssor of history an d associate dire ctor of the
Capital Campus Public History Prog ram at Californ ia State Un ive rsity, Sacrame n to. He is
also a partn e r of the Busin e ss History Group.
Than ks to Jose ph A. Pratt for in troducin g me to the world of busin e ss history an d for re adin g
this article an d to Louis Galambos for his comme n ts on this e ssay.
1. Se e The P?lblic Historian 3, n o. 3 (Summe r, 1981), which con tain s se ve ral article s
de vote d to various aspe cts of busin e ss history. The article s in clude Albro Martin , "The Office
of Corporate Historian : Org an iz ation an d Fun ction s," 11-23; Harold P. An de rson , "The
Corporate History De partme n t: The W e lls Farg o Mode l," 25-29; Barbara Be n son Kohn ,
"Corporate History an d the Corporate History De partme n t: Man ufacture rs Han ove r Trust
Compan y," 31-39; Richard Forman , "History In side Busin e ss," 41-61; W . David Le wis an d
W e sle y Phillips Ne wton , "The W ritin g of Corporate History," 63-73; an d En id Hart Doug lass,
"Corporate History W hy?" 75-80; Jame s P. Roscow, "Colle ctin g an d W ritin g ARCO's
History," 81-84.
11
The Public Historian , Vol. 21, No. 1 (W in te r 1999)
(D 1999 by the Re g e n ts of the Un ive rsity of Californ ia an d
the Nation al Coun cil on Public History
12 * THE PUBLIC HISTORIAN
the Ne w De al e ra (i.e ., re cords ofthe Fe de ralTrade Commission , Se curitie s
an d Exchan g e Commission , the Nation al Labor Re lation s Board, an d
an n ual corporate re ports), compan ie s con trol acce ss to much of the ir
history. Un le ss a particular corporation has its own publicly acce ssible
library an d historical archive s, or has don ate d busin e ss re cords to a un ive r-
sity or in de pe n de n t re pository, it is un like ly that a historian will be able to
con duct re se arch in that firm's re cords.- A corporation is more like ly to g ran t
such acce ss if it spon sors a proje ct for a corporate history, history vide o, or
historical lobby display. The se proje cts offe r historian s the opportun ity to
place in the public domain othe rwise private ly he ld in formation .
A proje ct spon sor's in volve me n t will vary de pe n din g upon the con tract or
ag re e me n t which se ts g uide lin e s for the work. But in his article , <'Corporate
History, or Givin g History the Busin e ss," Dan ie l J. W alkowitz sug g e sts that
spon sorship alon e stig matiz e s all corporate history. He wrote that CCcorpo-
rate histoIy is a con tradiction in te rms.... Howe ve r impartial the historian ,
the partisan characte r of the corporate work e n viron me n t se ts cle ar boun d-
arie s."3 This characte riz ation of con tract busin e ss history by a labor historian
who "in te rvie we d an d re ad the work of corporate historian s" is ide olog ical
rathe r than de scriptive .4 It is as true in some busin e ss history as it is in ce rtain
Marxist histoly that whe n an author '<kn ows'' the con clusion , the fin al
an alysis, an d the ove rall e valuation be fore re se arch has e ve n be g un , the
story will be in trin sically biase d. This is the crucial issue , an d profe ssion al
histoxian s of an y stripe should allow the ir re se arch to shape the fin al
product. Spon sorship an d fin an cial support are ce rtain ly n ot e xclusive to
commission e d busin e ss historie s, but whe n the participan ts in the se
proje cts ag re e that fun din g will be provide d in the form of an acade mic g ran t
or fe llowship, spon sorship is n ot syn on ymous with in trusive e ditorial an d
re se arch con trol.)
Corporation s that se e k a particular type of re se arche r an d write r for the ir
history ofte n do have a particular audie n ce in min d for the fin ishe d work.
Corporation s hire fre e lan ce write rs, commun ication s con sultan ts, public
re lation s firms, an d re tire e s to write corporate historie s typically for an
audie n ce of board me mbe rs, e mploye e s, an d re tire e s. The se works usually
be ar a he avy stamp of e ithe r corporate ove rsig ht or corporate patriotism.
Althoug h some such historie s are re ason ably we ll re se arche d an d writte n ,
2. The most n otable in de pe n de n t busin e ss history archive s is the Ce n te r for the History of
Busin e ss, Te chn olog y, an d Socie ty at the Hag le y Muse um an d Library, which re tain s public
historical re cords for a wide varie ty of busin e sse s an d spon sors con fe re n ce s on busin e ss history
topics.
3. Dan ie l J. W alkowitz , "Corporate History, or Givin g History the Busin e ss," Pre se n tin g
the Past (Philade lphia: Te mple Un ive rsity Pre ss, 1986), 225.
4. Ibid.
5. For two e xample s, se e the pre face in both of the followin g : W alte r L. Bue n g e r an d
Jose ph A. Pratt, ButAlso Good Busin e ss: Te xas Comme rce Ban ks an dthe Fin an cin g ofHoustotl
an d Te xas, 1886-1986 (Colle g e Station : Te xas A&M Un ive rsity Pre ss, 1986) an d Marg are t B.
W . Graham, RCA sn d the Vide oDisc: The Busin e ss of Re se srch (Cambridg e : Cambridg e
Un ive rsity Pre ss, 1986).
BUSINESS HISTORY * 13
man y are straig htforward public re lation s tre atise s se t within a ske tchy
historical con te xt.6 Re tire e s who de ve lop a de e p re spe ct for, an d un de r-
stan din g of, the ir firm are ofte n ve iy kn owle dg e able about its histoiy, but
the ir work te n ds to be an e cdotal, te chn ical, an d laudatoxy toward the firm's
le ade rs.7 Eve n the be st historie s writte n by re tire e s, fre e lan ce write rs, or
commun ication s con sultan ts are un like ly to probe con trove rsial or e mbar-
rassin g issue s in the firm's history.
A busin e ss that con tracts a profe ssion al historian to re se arch an d write its
histoiy is also choosin g an acade mic audie n ce . This choice can re pre se n t
man ag e me n t's re cog n ition that train e d busin e ss historian s offe r re se arch
skills an d an alytical pe rspe ctive that can e n lig hte n the busin e ss
de cision makin g proce ss. Ge org e Dan d Smith an d Laure n ce E. Ste adman
have state d this the me e mphatically: "A more syste matic an d rig orous
approach to the past is crucial if [e xe cutive s] are to achie ve a se n se of the
corporate past g re ate r than the ir own pe culiar me morie s of it."8 This is a
powe rful con ce pt. Corporate e xe cutive s should value the corporate
me mory as the y man ag e an d g uide the ir firms; a historical pe rspe ctive can
assist ope n -min de d e xe cutive s in the ir work of makin g strate g ic busin e ss
de cision s which affe ct the ir e mploye e s an d socie ty. A thoroug hly re -
se arche d an d we ll-writte n colporate histoiy can e ducate man ag e me n t, the
in te re ste d public, scholars, an d e ve n in ve stors about g e n e ral tre n ds in the
firm's past an d its achie ve me n ts an d failure s, as we ll as the orig in of its
corporate culture .
An acade mically style d busin e ss history will g e n e rally n ot satisfy a
re tire e 's an ticipation for a book that con tain s storie s about the corporate
culture in which he or she spe n t a care e r. A cre ative solution to a
corporation 's n e e d to addre ss dive rse audie n ce s is spon sorship of both an
acade mic study an d an in te rn al an e cdotal history re ple te with photog raphs.
In addition , historian s can write article s for a compan y n e wsle tte r an d he lp
cre ate historical e xhibits. The Bake r Botts law firm in Houston an d Me re k
& Co., In c. have e ach hire d promin e n t busin e ss historian s to write acade mic
studie s while also spon sorin g books that utiliz e a more an e cdotal writin g
style an d in clude n ume rous illustration s.9
6. De spite its title , a re ason ably g ood e xample of a corporate history writte n by commun i-
cation s con sultan ts is Hax McCulloug h an d Mary Brig n an o's The Vision an d W ill to Succe e d:
A Ce n te n n ial History of the Pe ople s N(ltural Gas Compan y (publishe d by the compan y, n o
date ).
7. Example s of corporate histoxy writte n by re tire e s in clude J. H. Fre e man , The Pe ople of
Bake r Botts (Houston : Bake r & Botts, 1992) an d Alle n Strun k, History of the Cin cin n ati Gas
b Ele ctric Compan y, 1837-1956 (un publishe d man uscript, 1956).
8. Ge org e David Smith an d Laure n ce E. Ste adman , "Pre se n t Value of Corporate History,"
Harvard Busin e ss Re vie w (Nove mbe r-De ce mbe r, 1981): 164.
9. For Me rck, se e Louis Galambos with Jan e Eliot Se we ll, Ne tworks of In n ovation :
Vaccin e De ve lopme n t at Me rck, Sharp b Dohme , an d Mulford, 1895-1995 (Ne w York:
Cambridg e Un ive rsity Pre ss, 1995) an d Louis Galambos e t. al., Value s an d Vision s: A Me rsk
Ce n tury (Me rok & Co., In c., n o date ). For Bake r Botts, se e Ke n n e th J. Lipartito an d Jose ph A.
Pratt, Bake r b Botts in the De ue lopme n t of Mode rn Houston (Austin : Un ive rsity of Te xas Pre ss,
1991) an d J. H. Fre e man , The Pe ople of Bake r Botts (Bake r & Botts, 1992).
14 * THE PUBLIC HISTORIAN
In my own re se arch on the history of the n atural g as in dustry, I have
con tacte d most major U.S. n atural g as firms an d re que ste d the ir corporate
histoty. I have re ce ive d man y sorts of historie s from publishe d books to
pamphle ts an d un publishe d man use ripts. For an in dustry study, corporate
historie s an d the data the y con tain are source s worth e xamin in g .l''
Althoug h busin e ss history is ofte n public history, train in g in busin e ss
histoxy is e sse n tial for a public historian who is in te re ste d in re se archin g an d
writin g about busin e ss. Accordin g to Charle s C. Cole , Jr., Noe l J. Stowe
be lie ve s that public historian s "do busin e ss.history diffe re n tly from those in
the acade mic se ctor" an d that "busin e ss histoiy an d the e xpe rtise provide d
by the usual busin e ss school course s we re n ot what e mploye rs soug ht,?' but
public history train in g that is g e n e ral an d broad-base d rathe r than spe cial-
iz e d mayn ot always be sufficie n t.ll This is ce rtain lytrue forworkin archive s,
historic pre se rvation , cultural re source man ag e me n t, an d muse uIn work as
we ll as busin e ss histoiy. Althoug h train e d public historian s may we ll have a
be tte r se n se of a firm's re lation ship to its local commun it an d a he ig hte n e d
aware n e ss of spon sor-clie n t re lation s, public historian s who are g e n e ralists
will ofte n compe te for work ag ain st pe rson s with spe cializ e d train in g .l-
- Historian s who re se arch an d write spon sore d busin e ss histoF typically
re ce ive payme n t for the ir e fforts7 an d some historian s have forme d con sult-
in g firms to pursue this work.l3 The re are n o stan dard fe e s for busin e ss
history proje cts. Costs are n e g otiate d for e ve ry proje ct, but busin e ss histoIy
book proje cts for larg e org an iz ation s can cost as much as $100,000 pe r ye ar
whe n two or more authors are in volve d, alon g with re se arch assistan ts an d
e xpe n se s in cludin g trave l (e xhibits can cost much more ). Some acade mic
historian s arran g e for the spon sor to re imburse the ir un ive rsity for a
re duce d te achin g load or a paid se me ste r le ave , so that the ir an n ual salary
re main s the same . Such fun din g for acade mic book proje cts ofte n cove rs
on ly the in itial re se arch an d writin g stag e an d n ot follow-up re se arch
re writin g , an d e ditin g that may take mon ths if n ot ye ars to comple te .
Histon an s who are paid for an y type of proje ct must re spon d to an
un acade mic re spon sibility. The con tract busin e ss historian typically fe e ls
pre ssure to have a pre se n ce on -site , to work re g ular hours an d to produce
re sults on de adlin e ; this is how"e mploye e s" be have . On -site con tract
10. Some of the se books in clude Ge org e Bush, The Future Builde rs: The Storxy of
Michig an 's Con sume rs Poun e r Compan y (Ne sv York: Me Graw-Hill Book Compan y, 1973) an d
W illiam Don ohue Ellis, On the Oil Lan ds uvith Citie s Se rl;ice (Citie s Se rxice Oil an d Gas
Corporation , 1983)
11. Se e comme n ts by Noe l J. Stoxve in Charle s C. Cole Jr., sPublic HistoIy: W hat
Diffe re n ce Has It Made ?" The Pllblic Histon an 16, n o. 4 (Fall 1994): 23.
12. For an o e rvie sv of doin g local busin e ss history, se e K. Austin Ke rr. Amos J. Love day,
an d Man se l G. Blackford, Local Busin e sse s: Explon n g the ir History (Nashsrille Ame rican
Association for State an d Local History, 1990).
13. For a g e n e ral oxre rvie sr of issue s re late d to startin g a history con sultin g firm, se e Ruth
An n OsTe rbe ck, <History as a Busin e ss," in Ptlblic Histon y: An In trocluctiotl, e d. Barbara J.
HON Te an d Emorv L. Ke mp (Malabar, Fla.: Robe rt E. Krie g e r Publishin g Compan y, 1988).
BUSINESS HISTORY * 15
lXistorian s are n ot e mploye e s, howe ve r, an d the y must thin k an d work
in de pe n de n tly e ve n within a structure d corporate e n viron me n t. It is vital
that the y con duct re se arch in side an d outside of the ir spon sor's busin e ss
an d the y should be pre pare d to e xplain the ir work both to man ag e me n t an d
to in te re ste d e mploye e s. In this se n se too, busin e ss historian s are spe cial-
iz e d public historian s.
The con tract histoiy proje cts which are most like ly to be comple te d an d
publishe d are those de sire d by a CEO. If the CEO has a stron g in te re st in
allowin g in de pe n de n t re se arche rs an d write rs to do the ir job) it is the
historian 's re spon sibility to comple te the task with cre ativity an d pe rse ve r-
an ce . W he n a CEO in itiate s a proje ct, he or she ofte n de le g ate s proje ct
ove rsig ht to the log ical pe rson from a corporate pe rspe ctive ) the vice
pre side n t for public re lation s. This is n ot in itse lf a proble m as lon g as this
e xe cutive an d the historian s e ach re spe ct e ach othe rs' con ce rn s an d re spon -
sibilitie s. Most importan tly, lin e s of commun ication must be ke pt ope n .
Pre parin g mon thly proje ct status re ports for man ag e me n t, whe the r solic-
ite d or n ot, is g ood practice .
W hile busin e ss historian s who have an e n tre pre n e urial flair the mse lve s
are ofte rl in trig ue d an d challe n g e d by re se archin g an d writin g history in
such an e n viron me n t) the acade my te n ds to dismiss con tract studie s as
biase d an d le ss se rious than those don e by<'in de pe n de n t>> scholars. W rite rs
of spon sore d busin e ss historie s are n ot me re scribe s workin g for the patron -
ag e of corporate Ame rica the y are most ofte n hig hly in te re ste d in un de r-
stan c .in g usin e ss c e ve lopme n t within historical con te xt.
As an acade mic disciplin e 7 busin e ss histoIy in the U.S. e volve d first from
course work offe re d in busin e ss schools. N. S. B. Gras taug ht what maywe ll
have be e n the first U.S. busin e ss history course at the Harvard Busin e ss
School in 1927. Gras be lie ve d that providin g a backg roun d in historical
busin e ss an d e con omic de ve lopme n t was e sse n tial for stude n ts of busin e ss
admin istration be cause "the old proble ms-arise ag ain an d ag ain in busi-
n e ss.''14 The lack of use ful publishe d work in the fie ld le d him to de ve lop his
own mate rial, in cludin g historical busin e ss studie s ofte n base d on a sin g le
firm's history.15 Ultimate ly, historical studie s we re use ful to Gras for train in g
stude n ts of busin e ss to be tte r un de rstan d busin e ss admin istration .
Gras was n ot on ly the fir.st chair of busin e ss history at the Harvard
Busin e ss School; he was also a public historian by today's stan dards. In 1944
he publishe d an in -de pth article title d <<Are You W ritin g a Busin e ss His-
toz y?"l In this forg otte n pie ce Gras discusse d issue s of busin e ss history
14. N. S. B. Gras an d He n rie tta M. Larson , Case book in Ame rican Busin e ss History (Ne w
York: Apple ton -Ce n tuIy-Crofts, In c., 1939), v.
15. Ralph W . Hidy, <<Busin e ss History: Pre se n t Status an d Future Ne e ds," B?>sin e ss History
Re vie up 447 n o. 4, (W in te r, 1970): 483.
16. N. S. B. Gras, "Are You W ritin g a Busin e ss History," Bulle tin of the Busin e ss Historical
Socie ty n o. 109 (Octobe r, 1944).
16 * THE PUBLIC HISTORIAN
writin g an d re se arch still re le van t a half-ce n tury late r. Gras aske d, "W ho
should write a busin e ss history?7' Ccof course ," Gras con tin ue d, "the ide al
historian is the busin e ss historian " of which the re we re fe w so train e d in the
mid-1940s.l
In 1947, Gras be came pre side n t of the Busin e ss History Foun dation
(BHF), which in clude d in its me mbe rship a n umbe r of promin e n t scholars
in te re ste d in the fie ld. The BHF un de rtook a major proje ct whe n it
con tracte d with Humble Oil & Re fin in g Compan y, a subsidiary of Stan dard
Oil of Ne w Je rse y (Exxon ) for the re se arch an d writin g of Humble 's history.
For this e n de avor, the BHF use d a con tract that con tain e d importan t
provision s for re se arche r an d author in de pe n de n ce . Humble "ag re e d to
make all its re cords available for re se arch, to arran g e in te rvie ws with its
e mploye e s an d an n uitan ts an d visits to its ope ration s, an d to have the
man uscript re ad by pre se n t an d past e xe cutive s of the compan y for criticism
an d sug g e stion s, but to allow the Foun dation full fre e dom to de te rmin e
what should ultimate ly be publishe d.'218 The orig in al proje ct g oal was
pre parin g an <'admin istrative history?'> but as ofte n happe n s in busin e ss
history proje cts, subse que n t re se arch ope n e d up n e w are as of in quiry; the
proje ct g re w in to a much broade r histoly of Humble within the con te xt of
the de ve lopin g oil in dustly. The publishe d book provide d a mode l for
busin e ss historian s to follow whe n doin g con tract proje cts.
Gras's pion e e rin g busin e ss history e fforts should be re cog n iz e d as con -
tn butoryto the e arly de ve lopme n t of public historywork, as should those of
Pulitz e r Priz e win n e r Alfre d D. Chan dle r, Jr.l9 More re ce rltly, busin e ss
historian Louis Galambos re cog n iz e d this con n e ction whe n he state d that
most busin e ss history writte n in the Un ite d State s is corre ctly ide n tifie d as
public histoxy.2
In the re main de r ofthis e ssay, I will discuss e xpe rie n ce s at thre e diffe re n t
busin e ss histoly proje cts which in volve d situation s or issue s that may arise in
typical corporate history ve n ture s; e ach of the se proje cts in volve d at le ast
two re se arche rs an d write rs, so I use the pron oun "we ' un le ss writin g
spe cifically about myse lf. At Te xas Easte rn Corporation ) a dive rsifie d e n -
e rg y firm, we con fron te d re se arch challe n g e s which sug g e ste d the limits of
re se arch in mode rn in te rn al busin e ss re cords. W hile re se archin g an d writ-
in g abusin e ss biog raphyofthe in dustrialists He rman an d Ge org e R. Brown ,
our work was complicate d by proje ct spon sorship throug h a family-con -
trolle d charitable foun dation . At Pan han dle Easte rn Corporation , we
17. Ibid., 8.
18. He n rie tta M. Larson an d Ke n n e th W ig pn s Porte r, Hi.story of Hun ible Oil S Re fin in g
Compan y: A Study in In dustrial Grouoth (Ne w York: Harpe r & Brothe rs, 1959): xxi.
19. Se e Alfre d D. Chan dle r, Jr., The Visible Han d: The Man ag e rial Re volution in Arn e rican
Busin e ss (Cambridg e : Be lkn ap Pre ss, 1977) an d Alfre d D. Chan dle r, Jr. Strate g y srld Str1le -
t1lre : Chapte rs in the Historty ofthe In du.stn al En te rprise (Cambridg e : M.I.T. Pre ss, 1962)
20. Se e Charle s C. Cole , Jr., 'sPublic History: W hat Diffe re n ce Has it Made ?" The Palblic
Historin n 16, n o. 4 (Fe bruarv, 1994): 21.
BUSINESS HISTORY * 17
soug ht to e xte n d the focus of what be g an as a tradition al compan y history
in to an acade mic study of busin e ss e volution throug h thre e succe ssive e ras
of re g ulatoly chan g e .2l
Limits to Busin e ss History Re se arch
In the e arly fall of 1987, Jose ph A. Pratt an d I be g an re se archin g the
history of Te xas Easte rn Corporation (TE), a n atural g as pipe lin e an d
dive rsifie d e n e rg y firm base d in Houston . This work was part of a spon sore d
history proje ct in itiate d by the corporation 's n e w CEO, De n n is He n drix.
He n drix was n o stran g e r to corporate history. In the late 1970s, as CEO of
Te xas Gas Tran smission Corporation (TGTC), he ove rsaw a corporate
history writte n by L. L. W ate rs? e me ritus profe ssor of tran sportation an d
busin e ss history at the In dian a Un ive rsity busirse ss school. He n drix told us
that he had n ot be e n satisfie d with W ate rs man use ript, an d it re main e d
un publishe d stashe d away in a de sk drawe r for se ve ral ye ars un til the re was
a chan g e in man ag e me n t.22 Althoug h wre we re n ot familiar with the con trac-
tual arran g e me n t W ate rs had with TGTC) we kn e w that for a varie ty of
re ason s as man y as 50 pe rce n t of all busin e ss history man uscripts re main
un publishe d.
He n drix orig in ally discusse d the propose d proje ct with Pratt, Culle n
Chair of Busin e ss an d HistoIy at the Un ive rsity of Houston , an d Pratt
in vite d me to join him. My own re se arch backg roun d was appropriate for
the task. Coin cide n tally, I had alre adybe g un writin g a Ph.D. disse rtation on
compe tition in the post-W orld W ar II n atural g as pipe lin e in dustry, a study
focusin g on thre e pipe lin e firms which tran sporte d n atural g as from the
Southwe st to Northe ast. Te xas Easte rn was on e of the se compan ie s, so this
proje ct offe re d the opportun ity to participate in a busin e ss history proje ct as
21. All of the se proje cts took place in Houston , Te xas. Durin g re ce n t ye ars, a n umbe r of
Houston are a law firrn s, e n e rg y compan ie s, hospitals, an d othe r colporation s have spon sore d
busin e ss historie s, makin g Houston a ve ritable laboratoty for spon sore d history. Some of the se
publishe d works in clude Ke n n e th J. Lipartito an d Jose ph A. Pratt, Bake r b Bott.s an the
De ve lopme n tofMode rn Houston (Austin : Un ive rsityofTe xas Pre ss, 1991); Harold M. Hyrrlan ,
Ole arlde rOdysse y: The Ke mpn e rs of Gal1je ston 7 1854-1890s (Colle g e Station : Te xas A&M
Un ive rsity Pre ss, 1990); Jose ph A. Pratt, Tyle r Prie st, an d Christophe r J. Castan e da, Offshore
Pion e e rs: Browrl b Root an d the History of Of shore Oil an d Gas (Houston : Gulf Publishin g
Compan y, 1997); Bill Be ck, At Your Se rljice : An Illustrate d History of Houston Lig htin g b
Powe r Compan y (Houston : Gulf Publishin g Compan y, 1990); W alte r L. Bue n g e r an d Jose ph
A. Pratt, But Atso Good Bustn e ss: Te xas Comme rce Ban ks an d the Fin an cin g of Houston an d
Te xas, 1886-1986 (Colle g e Station : Te xas A&M Un ive rsity Pre ss, 1986); an d Harold M.
EIyman , Craftsman ship an d Characte r: A History ofthe Vin sorz Elkin .s Law Firm of Houston ,
1917-1997 (Athe n s: Un ive rsity of Ge org ia Pre ss, 1998). Othe r histoly proje cts in prog re ss
in clude those for Se rvice Corporation , In c. an d Te xas Childre n s Hospital. On e proje ct for the
law firm of Fulbrig ht an d Jaworski was comple te d but n ot publishe d.
22. L. L. W ate rs, En e rg y to Move : Te xas Gas Tran smission Corporation (Te xas Gas
Tran smission Coxporation , 1985).
18 * THEPUBLICHISTORIAN
we ll as to acce ss corporate re cords for the disse rtation ; TE ag re e d that I
could con duct re se arch in its re cords for both studie s.23
Ne arly six mon ths afte r re se arch be g an , we sig n e d a con tract similar to
con tracts Pratt had use d in corporate history book proje cts for Bake r Botts
an d Te xas Comme rce Ban k.94 Earlie r, Pratt had writte n a spon sore d history
of Con solidate d Edison ) In c. of Ne w York, but this proje ct con tract did n ot
con tain a provision for publication .25 Complication s re sultin g from that
e xpe rie n ce re in force d the n e e d for a con tract which e sse n tially followe d the
mode l se t forth by Gras ye ars e arlie r. The state d g oal of the Te xas Easte rn
con tract was "a profe ssion ally re se arche d an d writte n book, [asse mblin g ]
appropriate archive s in con n e ction the re withn to pe rmit the publication of a
un ive rsity pre ss quality book." The con tract provide d the authors with <'fin al
e ditorial authority for the Proje ct an d fin al disposition of the man uscript,>'
provide d that the authors "at all time s g ive full con side ration to TE re com-
me n dation s an d in dicate d poin ts of disag re e me n t, if an y." In the case of
un re solve d con flict ove r fact or in te rpre tation , the firm re tain e d the rig ht to
44in dicate poin ts of disag re e me n t" in an "e xplan atory footn ote ." In addition
the con tract provide d "fu11 acce ss to all TE corporate re cords.7' W e sig n e d a
stan dard con fide n tiality ag re e me n t which cove re d issue s such as on g oin g
le g al matte rs at TE. CEO He n drix in forme d man ag e me n t about the proje ct
an d the te rms of the con tract. Stron g support from the top e n sure d our
ability to comple te the work.
The Te xas Easte rn proje ct pose d issue s that te ste d the limits of spon -
sore d busin e ss histoxy re se arch. The first of the se in volve d the firmSs
orig in s. Te xas Easte rn was org an iz e d in 1947 to purchase two g ove rn me n t-
own e d oil pipe lin e s e xte n din g from East Te xas to oil re fin e rie s locate d in
the Ne w York-Philade lphia are a. The Re con struction Fin an ce Corpora-
tion (RFC) fun de d con struction ofthe se W ar Eme rg e n cy Pipe lin e s durin g
W orld W ar II afte r Ge rman U-boat attacks on oil tan ke rs trave lin g n orth-
ward alon g the Atlan tic se aboard thre ate n e d to cre ate an Allie d oil short-
ag e .
At the con clusion of the war) the lin e s be came part of a $25 billion
colle ction of war surplus mate rial. The Surplus Prope rty Admin istration
(SPA) se t policy for se llin g the se asse ts. The In ch Lin e s we re de e me d be st
suite d for tran sportation of oil in the postwar pe riod so the SPA g uide lin e s
calle d for an auction that privile g e d proposals for oil tran sportation ove r
those proposin g an y othe r use .
23. Christophe r Jame s Castan e da, Re g ,ulate d En te rprise : Natural Gas Pape lin e s an d South-
we ste rn Marke ts7 1938-1954 lColumbus: Ohio State Un ive rsity Pre ss 1993).
24 Ke n n e th J. Lipartito an d Jose ph A. Pratt, Bake r b Botts, an d W alte r L. Bue n g e r an d
Jose ph A. Pratt, ButAlso Good Busin e ss: Te Jcas Comme rce Ban ks an dthe Fin an cin g of Houston
ard Te xas 188S1986 (Colle g e Station : Te xas A&M Un ive rsity Pre ss, 1986).
25. The man uscript was e ve n tually publishe d by the compan y: Jose ph A. Pratt, A Man ag e -
n al History of Gorssolidute d Edison ) 1936-1981 (Ne r York: Con solidate d Edison Compan y of
Ne w York, In c., 1988).
BUSINESS HISTORY * 19
The W ar Asse ts Admin istration (W AA) acquire d re spon sibilit for auc-
tion in g the In ch Lin e s. Sixte e n g roups submitte d bids by the de adlin e of
July 30, 1946. The W AA soon re aliz e d that it had han dicappe d itse lf by n ot
g ivin g n atural g as in te re sts an e qual opportun ity to bid on the lin e s an d by
n ot simply allowin g the hig he st cash bidde r to win the auction ; n atural g as
in te re sts had submitte d the hig he st cash value bids. Se ve ral mon ths of
in te n se political lobbyin g amon g a wide assortme n t of in te re sts followe d the
first auction . On Nove mbe r 19, 1946, the W AA disallowe d all bids an d the n
sche dule d a se con d auction . At the se con d auction TE submitte d its bid of
$143,127,000 at the W ashin g ton , D.C. post office . Two days late r, TE
le arn e d that it had won the auction .
The bid for the In ch Lin e s provide d a un ique case study for un de rstan d-
in g the hig hly political proce ss throug h which the fe de ral g ove rn me n t
de mobiliz e d in dustrial facilitie s afte r W orld W ar II. It was cle ar from
discussion s with compan y re tire e s an d con te mporaxy n e wspape r accoun ts
that in te n se lobbyin g amon g a wide varie ty of in te re st g roups had shape d the
outcome of the In ch Lin e bid.26
W e be g an se archin g for in te rn al corporate re cords about this e pisode at
TE. The coxporation own e d 50 000 boxe s of docume n ts store d at an off-site
facilit. W e ide n tifie d those that appe are d to con tain mate rial re le van t to
our re se arch an d re que ste d the m. Durin g the se arch we discove re d four
boxe s which con tain e d an e xte n sive clippin g file an d e xe cutive corre spon -
de n ce cove rin g this e pisode . The re cords we re orig in ally compile d by an
attorn e y who worke d for Te xas Easte rn in W ashin g ton 7 D.C. durin g 1946
an d 1947. The se re cords in clude d n e wspape r accoun ts, W AA me mo-
ran da, e xe cutive corre spon de n ce , an d re g ular re ports from the firms'
W ashin g ton are a lobbyists. The y provide d a de taile d chron olog y of
re e van t e ve n ts.
Afte r TE won the bid, the orig in al promote rs profite d han dsome ly from
the orig in al stock issue . 1,050,000 share s of '<foun de rs"' stock we re divide d
amon g the se me n un de r spe cial loan ag re e me n ts, or n omin al fe e s. W he n
Te xas Easte rn offe re d stock to the public le ss than on e ye ar late r, the stock
sold for $9.50 pe r share . The foun de rs re ape d e n ormous profits from this
de al.
W e le arn e d that two pe ople we re still alive who participate d dire ctly in
the bid. On e of the se me n was Aug ust Be lmon t IV, whose g re at-g ran dfathe r
had be e n the Ame rican corre spon de n t ban ke r for the Rothschild family.
Be lmon t had se rve d as Te xas Easte rn s first ban ke r, re pre se n tin g the
in ve stme n t firm of Dillon Re ad. The othe r survivor was the attorn e y who
compile d the re cords in the four boxe s.
26. Se e "Forme r Big Name s in Gove rn me n t Are In volve d in Bids for Pipe lin e s," W ashin g -
ton Daily Ne ws, 17 Octobe r 1946; '4'Un cle Je sse 's Bid for Oil Pipe lin e s . . . ," The Eve n in g Star,
2 Octobe r 1946; an d Ron n ie Dug g e r, The Politician : The Life an d Time s of Lyn don John son
(Ne w York: W . W . Norton an d Co.), 282.
20 * THE PUBLIC HISTORIAN
W e con tacte d both me n to sche dule oral histoiy in te rvie ws. Be lmon t was
con g e n ial an d we lcome d our visit to his home in Easton , Marylan d. The
attorn e y, livin g in Dartmouth, Ne w Hampshire , in itially ag re e d to be
in te rvie we d but soon chan g e d his min d. He in forme d us that he had te n
boxe s of corre spon de n ce cove rin g the e arly history of the compan y an d had
in formation that would 4'curl the hair" of Te xas Easte rn e xe cutive s. The
forme r attorn e y the n ag re e d to he lp on ly un de r the con dition s that we
provide an e xpe n se -paid trip to Houston , a $5,000 fe e for participatin g in an
oral history in te rvie w, $1,00() an d shippin g e xpe n se s for the te n boxe s, a
le tte r from TE approvin g this tran saction , an d prote ction from an y liability
arisin g from the in formation he provide d.q-
W e discusse d this matte r with our liaison at Te xas Easte rn (the vice
pre side n t for public affiirs), an d with a forme r TE e xe cutive who kn e w the
man . W e all ag re e d that it was the historian ss de cision whe the r or n ot to
con tin ue a dialog ue with the attorn e y. As in de pe n de n t con tractors with our
own budg e t, we did n e g otiate an ag re e me n t with him. FirstX he would ship
the boxe s to us at our e xpe n se . Afte r re vie win g the docume n ts in the boxe s,
we would de cide whe the r to g o forward with an in te rvie w; if the re was to be
n o in te rvie w, we would re turn the boxe s without usin g an y mate rial the re in
The n , the attorn e y chan g e d his min d ag ain an d de cide d n ot to participate in
an y man n e r. In fact, we n e ve r le arn e d what mate rial he actually had in his
posse ssion but we suspe cte d that at le ast some of the boxe s he claime d to
own we re the on e s we alre ady posse sse d.
Be lmon t was more forthcomin g . At our in te rvie w he discusse d TE's e arly
histoly an d the bid e pisode . Be lmon t told us that "the big thin g we didn 't
wan t was to have an ybody hidde n , some political g uy be in g offe re d some
stock in this thin g to g e t us throug h.... If that g ot in it an ywhe re ? [it] would
be a han dle for on e ofthe othe rs to say, 'The ir bid shouldn 't be take n '.... So
we made sure that we divulg e d e xactly who g ot e ach of the se [orig in al
foun de rs' share s]. But I, late r on in the ye ars, be came con vin ce d that the re
we re some pe ople who had a call on what was in the box some whe re . [But]
the Dillon Re ad pe ople did n ot kn ow it."-8
Our e xpe rie n ce s with both me n stimulate d furthe r in ve stig ation in to the
biddin g proce ss. At the Nation al Archive s we le arn e d that the W AA re cords
re main e d un catalog ue d, an d we we re un able to malie much use of the m.
Re cords from othe r wartime g ove rn me n t ag e n cie s such as the RFC, which
he ld title to the lin e s an d the De fe n se Plan ts Corporate (DPC), did n ot she d
n e w lig ht on the bid.
In ste ad, arl un e xpe cte d discove iy at TE le d to a partial con firmation of
Be lmon t7s suspicion s. Durin g a discussion of this e pisode with a compan y
27. Te le phon e con ve rsation , J. Ross Gamble an d Christophe r J. Castan e da, 11 Jun e 1988.
Also, J. Eloss Gamble to Jose ph A. Pratt, 28 Jun e 1988 an d J. Ross Gamble to Jose ph A. Pratt,
9 July 1988.
28. Aug ust Be lluon tv IV7 in te rae sr by Chn stophe r J. Castan e da an d Jose ph A. Pratt, Easton 7
Md., 14 Jun e 1988.
BUSINESS HISTORY * 21
e mploye e in charg e of the firm's vault con tain in g importan t le g al an d
corporate docume n ts the e mploye e me n tion e d a small folde r that con -
tain e d historical docume n ts; he tran sfe rre d the folde r to the history proje ct.
The docume n ts in side the folde r in clude d a le tte r cle tailin g plan s for a
me e tin g at the Hote l Ne w Yorke r in 1946. Ge org e Alle n , frie n d of Harry S
Truman , De mocratic part official, an d a dire ctor of the RFC which he ld
title to the In ch Lin e s, was in vite d at the re que st of Fran k An dre ws,
pre side n t of the Hote l Ne w Yorke r an d a re lative of on e of Te xas Easte rn s
g as pipe lin e e xpe rts Alle n 's n ame did n ot appe ar in an y othe r docume n ts we
had se e n at TE.
I suspe cte d that circumstan tial e vide n ce con n e ctin g a '<hidde n playe r'2 to
the g roup's bid also mig ht be burie d in stock re cords. Fortuitously, Te xas
Easte rn 's man ag e me n t had provide d us with a larg e office on the fourth
floor of the ir forty-six-stoiy he adquarte rs. The fourth floor was partially
un occupie d, but it con tain e d the office s of the compan y's tre asure r an d the
microg raphic re production an d in ve stor re lation s de partme n ts. In discuss-
in g the history proje ct with a me mbe r of the in ve stor re lation s staff I
re aliz e d that I could re se arch the compan y's stock re cords.
A subse que n t se arch of the se docume n ts sug g e ste d that the TE g roup
had be n e fite d from political in flue n ce . On e re cipie n t of foun de rs' stock,
An dre ws had tran sfe rre d approximate ly on e -fourth of his orig in al stock
subscription of 96,000 share s to a broke rag e accoun t in 1948. In 1968, a
substan tial portion of that stock ide n tifie d by the same ce rtificate n umbe rs
re appe are d in a tran sfe r to Ge org e Alle n , the man who had be e n in vite d to
con fe r with the g roup at le ast on ce prior to the first bid. At the time of the
me e tin g , Alle n was a dire ctor of the RFC, which he ld title to tlle In ch Lin e s.
This was a fascin atin g trail which still me an t ve iy little , for it may n e ve r be
kn own what circumstan ce s le d to that stock tran sfe r or e ve n to an y con tribu-
tion Ge org e Alle n may have made to the TE g roup's e fforts. Public disclo-
sure of an yin volve me n tbyAlle n in the g roup's bid, howe ve r, maywe ll have
disqualifie d it from W AA con side ration .
W e summariz e d this e pisode in the book an d re ce ive d n o comme n ts,
positive or n e g ative , from compan y officials. The In ch Lin e bid had n ot
e scape d public n otice in 1947 e ithe r. The Harvard Busin e ss Re vie w ran two
opposin g article s on the de al on e de fe n din g the hug e profits made by the
promote rs an d the othe r de cryin g un fair profits.is
W hat did this historical e pisode in dicate about the practice of busin e ss
histoly? Did this re se arch cross the lin e be twe e n historical re se arch an d
in ve stig ative journ alism? Is re se archirlg possible corruption in the cre ation
of a firm some thin g a con tract busin e ss historian should do? On e practical
an swe r may de pe n d upon the con tractual re lation ship be twe e n author an d
29. Se e Jose ph Stag g Lawre n ce , "Profits an d Prog re ss," HarvflrrX B1lsan e ss Re vae w 26, n o. 4
(July, 1948), an d John W . W e lke r, "Fair Profit?2' Harvard B2e sin e ss Re vae w 26, n o. 2 (M;lrch,
1948).
22 * THE PUBLIC HISTORIAN
busin e ss. In this case , our con tract provide d full acce ss to corporate re cords
an d e ditorial con trol of the man uscript. W e re se arche d the e pisode in g re at
de tail as far as an y historical trail le d, an d n o on e at the compan y atte mpte d
to halt this re se arch e ffort.
Eve n thoug h such historical e pisode s had n o tan g ible e ffe ct on the
compan y's ope ration s an d we re n ot matte rs of particular con ce rn to man -
ag e me n t, curre n t con trove rsial issue s did cre ate some te n sion . In 1987, the
En viron me n tal Prote ction Ag e n cy (EPA) le vie d ag ain st TE what was un til
the n its larg e st fin e , $15 million . TE was foun d liable for violatin g re g ula-
tion s g ove rn in g the disposal of PCBs (polychlorin ate d biphe n yls) at some
compre ssor station site s. Subse que n t le g al action by state s in which the
compre ssor station s we re locate d raise d TE's liability to hun dre ds of mil-
lion s of dollars. This was a se rious pre se n t-day le g al proble m for the
compan y. Our proje ct con tract stipulate d full acce ss to corporate re cords
but the con fide n tiality ag re e me n t e xclude d proprie tary re cords such as
those re late d to on g oin g le g al dispute s. The PCB issue fe ll within this
cate g ory. W e discusse d in the man uscript the PCB e pisode usin g on ly
publishe d accoun ts an d pre ss re le ase s, but we n e ithe r probe d for n or foun d
an y re le van t private docume n ts. Compan y lawye rs late r care fully e xamin e d
the historical archive s we compile d for re late d in formation .
An othe r issue re g ardin g proble ms in writin g curre n t busin e ss history was
virtually force d upon us, as it was on TE. The Coastal Corporation , an othe r
Houston -base d n atural g as pipe lin e /e n e rg y firm, laun che d a hostile take -
ove r bid on Jan uaIy 16, 1989. Eve n tually, a "white kn ig ht" Pan han dle
Easte rn Corporation (PE) an othe r larg e n atural g as pipe lin e firm, suc-
ce e de d in purchasin g Te xas Easte rn .
Durin g the me rg e r, Pan han dle 's vice pre side n t for public affairs, Jame s
W . Hart7 Jr., le arn e d about Te xas Easte rn 's histoiy proje ct an d ln e t with us
at our office . He ple dg e d to support the proje ct to comple tion ; we le arn e d
late r that Pan han dle 's CEO was n ot particularly in te re ste d in se e in g the
book fin ishe d. By the te rms of our con tract, Pan han dle couldn 7t stop our
re se archy writin g , or publication , but it could can ce l the con tract an d
the re by e limin ate acce ss to the re cords an d office .
W e comple te d the Te xas Easte rn histoxy by tracin g e ve n ts le adin g
throug h the take ove r. Te xas Easte rn 's outg oin g CEO caution e d us ag ain st
be lie vin g that our con cludin g chapte r on Te xas Easte rn 's de mise the take -
ove r battle , re pre se n te d the <<truth." He told us that we would n e ve r kn ow all
the de tails of that e pisode . Re lyin g on the source s available to us- SEC
docume n ts, n e wspape r article s, board min ute sn an d oral history in te r-
vie ws-we pie ce d tog e the r our most accurate ve rsion of this fin al chapte r 30
The le sson s we le arn e d at Te xas Easte rn about re se arch sug g e ste d a
double stan dard. Re se arch on con trove rsial historical issue s in corporate
busin e ss re cords is e asie r to con duct whe n curre n t luan ag e In e n t is n ot
30. Christophe r J Castan e da an d Jose ph A. Pratt, Frotla Te .re z s to tSle Ee ast: A Strn te g ic
History of Te xas Easte rn Cor7g orn tion (Colle g e Station : Te xas A&M Un isTe rsitD, Pre ss) 1993).
BUSINESS HISTORY * 23
dire ctly associate d with the particular situation . Re ce n t e ve n ts are ofte n
more difficult to re se arch due to pote n tial le g al implication s an d proprie tary
in formation re striction s, as we ll as the pre se n ce within the corporation of
the same man ag e rs who participate d in those e ve n ts. Of the man y pote n tial
pitfalls in con tract busin e ss history, the se rious thre at of le g al action an d
liability can de rail an y proje ct. To avoid the proble ms of curre n t history,
historian s mig ht con side r ide n tifyin g an e arlie r cut-off time or re strictin g
the study to a particular the me . An n ive rsary date s ofte n provide a log ical
e n din g , but an arbitrary cut-off may also pre ve n t a re se arche r from follow-
in g an importan t the me to its con clusion .
Famtly Foun dation s an d Busin e ss History
Pan han dle Easte rn 's acquisition of Te xas Easte rn le d dire ctly to two
othe r con tract proje cts. Early in the me rg e r proce ss, two de sce n dan ts of
compan y foun de rs He rman an d Ge org e R. Brown approache d TE an d
re que ste d that an y photog raphs or me morabilia of the se brothe rs be save d,
an d n ot de stroye d, in the e n suin g me rg e r. The public affairs de partme n t
sug g e ste d that the family talk dire ctly to the historian s, sin ce we had cre ate d
an archive s to use in our work. W e me t with the family me mbe rs, but we had
virtually n o primary source s re latin g to the Brown brothe rs' care e rs.
Re aliz ation that the re was little primary docume n tation on He rman an d
Ge org e Brown prompte d discussion about the possibility of doin g re se arch
to pre se rve an accurate historical accoun t of the ir care e rs as e n tre pre n e urs
an d philan thropists. In addition to foun din g Te xas Easte rn , the Brown s had
con trolle d Brown & Root, an in te rn ation al e n g in e e rin g an d con struction
firm. The y also e n joye d a close an d some time s con trove rsial re lation ship
with Lyn don B. John son . W he n He rman Brown die d in 1962, he le ft the
bulk of his e state to the family-con trolle d Brown Foun dation , In c., which by
the late l990s had an e n dowme n t approachin g $1 billion , makin g it the
se con d larg e st foun dation in Te xas.
The Brown Foun dation ag re e d to fun d an oral history proje ct throug h a
g ran t to the Un ive rsity of Houston as a first ste p to asce rtain whe the r
sufficie n t historically sig n ifican t mate rial e xiste d for use in a dual biog raphy
of the brothe rs. Durin g a ye ar-lon g proje ct assiste d in some case s by le tte rs
of in troduction from the foun dation , I in te rvie we d n e arly se ve n ty pe rson s
in cludin g Lady BirdJohn son , John Con n ally, He rbe rt Brown e ll, an d Harold
Ge n e e n , as we ll as le sse r-kn own frie n ds, associate s, an d e mploye e s of the
brothe rs. W hile the Brown Foun dation 's spon sorship "ope n e d doors" for
the se in te rvie ws an d like wise sug g e ste d that the in te rvie ws would be g e n e r-
ally positive in ton e , spon sorship e n able d this study to g o forward.
W ritin g a busin e ss biog raphy in itially fun de d by a family-con trolle d
charitable foun dation pre se n te d un ique challe n g e s. Not all Brown family
me mbe rs supporte d the biog raphy proje ct with the same z e al as Isabe l
24 * THE PUBLIC HISTORIAN
Brown W ilson , the foun dation 's pre side n t an d Ge org e Brown 's youn g e st
daug hte r. She me t with us fre que n tly, se arche d for an d foun d re le van t
busin e ss re cords, an d e n courag e d othe r family me mbe rs, frie n ds, an d
associate s to participate in the oral history.
Existin g biog raphie s of Lyn don B. John son provide d an othe r impe tus for
this study. Robe rt Caro, amon g othe rs, had de picte d the Brown brothe rs
n arrowly as con se rvative re action arie s who had fue le d Lyn don John son 's
political ambition s with campaig n con tribution s in re turn for larg e fe de rally
fun de d con struction con tracts. A more balan ce d biog raphy of the brothe rs'
profe ssion al live s mig ht n ot dispe l this re putation , but it would portray the
Brown s' care e rs within historical con te xt, an d n ot in isolate d e pisode s.3l
Some con te n tious issue s arose which at time s strain e d re lation s be twe e n
authors an d spon sor. The se re volve d primarily aroun d the Brown s' vie ws
about labor un ion s an d the ir re lation ship to LBJ. Re g ardin g labor, Brown &
Root was an ope n shop. The brothe rs did n ot tole rate un ion iz ation e ve n
durin g W orld W ar II in the ir in de pe n de n tly own e d Brown Shipbuildin g
Compan y which built De stroye r Escorts, amon g othe r ships. Major labor
dispute s in Arkan sas at the Bull Shoals Dam an d in Te xas at se ve ral
con struction proje cts (Rice Un ive rsity's football stadium an d at Te xas
Easte rn 's g as pipe lin e compre ssor station s) durin g the late 1940s an d 1950s
attracte d close scrutin y from the Nation al Labor Re lation s Board (NLRB)
an d state labor org an iz ation s as we ll as local n e wspape rs. De spite He rman
Brown 's re putation as a un ion buste r in Te xas, we in itially foun d n o
sig n ifican t pe rson al workin g pape rs re late d to the se or othe r an ti-un ion
activitie s.3-
This proje ct laste d n e arly te n ye ars, an d we be g an workin g on the fin al
man uscript re vision s in e arly 1998. A lack of pe rson al busin e ss re cords had
plag ue d our re se arch e fforts from the start, but last-min ute discove rie s
allowe d an opportun ity to de al with issue s that re main e d re lative ly un de r-
e xplore d. In 1997, the LBJ library re le ase d a n umbe r of te le phon e re cord-
in g s (orig in ally sche dule d to be close d for fiftyye ars afte r LBJ's de ath) tape d
at the W hite House durin g the John son admin istration . The se re cordin g s
in clude d se ve ral be twe e n LBJ an d Ge org e Brown . Liste n in g to the se tape s,
we fin ally he ard Ge org e Brown 's voice in con ve rsation with his lon g -time
frie n d. He arin g the actual voice s was fascin atin g in itse lf, an d the phon e
con ve rsation s provide d in sig ht about the re lation ship be twe e n the se me n .
In on e con ve rsation , the y soug ht to de fle ct in cre asin g public atte n tion on
the ir busin e ss re lation ship prior to the 1964 pre side n tial e le ction . LBJ an d
Ge org e Brown discusse d how to pe rsuade Life mag az in e to drop a pote n -
tially e mbarrassin g story about LBJ's re porte d in volve me n t in Brown &
31. Robe rt Caro, The Pat11 to Potl;e r (Ne sv York: Alfre d A. Kn opf, 1982).
32. Se e Ge org e Gre e n , The Establishrlle n t in Te .xos Politics: The Primiti1ve Ye ars, 1938-
1957 (W e stport. Con n : Gre e n vood Pre ss, 1979); an d Hart Stilve ll, The He rrrlan Brotun Storly
(Fort W orth: Labor Ne srs, ca. 195, ).
BUSINESS HISTORY " 25
Root's con tracts to de sig n NASA's Man n e d Space craft Ce n te r (n ow
John son Space craft Ce n te r) in Houston an d to drill throug h the e arth's crust
in the NSF-spon sore d <'Proje ct Mohole .'33 The article was publishe d.34
A se con d last-min ute de ve lopme n t occurre d durin g a visit to the Brown
& Root office s in Houston to look at possible photos for use in the book. An
e mploye e casually aske d if we had se e n the twe n ty boxe s of Ge org e Brown s
pe rson al work pape rs she lve d in the corporate library. This was an aston ish-
in g discove ry made on ly four days be fore the man uscript was due at the
pre ss, con side rin g that for ye ars we had re que ste d Brown 's busin e ss re cords
at Brown & Root on ly to be told by various pe rson s that all such re cords had
lon g ag o be e n de stroye d. Durin g the n e xt se ve ral days, we scoure d the se
boxe s7 which con tain e d corre spon de n ce cove rin g n e arly e ve ry on e of Brown
& Root's proje cts as we ll as some of Ge org e Brown 7s pe rson al busin e ss an d
civic activitie s. Sig n ifican tly7 we foun d a larg e colle ction of labor-re late d
corre spon de n ce . This mate rial, combin e d with NLRB re cords, provide d a
much cle are r vie w of He rman Brown 's pate rn alistic attitude toward his
e mploye e s an d his disdain for strike rs an d labor urlion s.35 The se re cor(ls
we re n ot own e d by e ithe r the Brown family or the Brown foun dation . Brown
& Root, n ow own e d by Halliburton n was un de r n o oblig ation to provide
acce ss to the re cordst althoug h at the time we we re workin g on a se parate
history proje ct for tllis firrn Ss Marin e Divisiorl.
The Brown biog raphy proje ct illustrate d the se n sitivitie s that can e me rg e
whe n re se archin g the live s of pe ople pe rson ally re late d to the spon sors. W e
soug ht to write a balan ce d an d thoroug hly re se arche d accoun t of the se two
in dustrialists kn on ul particularly in Te xas for the ir larg e military an d civilian
proje cts, an ti-un ioz l vie ws, con n e ction to LBJ) an d philan thropy) but our
ilate rpre tation s of this histoiy we re n ot always share d by the spon sor.
Re solvin g disag re e me n ts in this proje ct re quire d a con vin cin g arg ume n t
that we had re liable data to back up our state me n ts. In e ffe ct, we had family
re ade rs who stron g ly disag re e d with some poin ts, but in the e rld the y abide d
by the authors' con tract7lal rig ht to e ditorial con trol.
Tlle family me mbe r who in itiate d an d most con siste n tly supporte d the
proje ct was un de rstan dably con ce rn e d about our portrayal of the Brown
brothe rs, lle r fathe r an d un cle . W e re cog n iz e d that we we re de alin g with a
pote n tially more in te n se ve rsion of the proble ms which face all biog ra-
phe rs-avoidin g an ove rt admiration or e ve n dislike of on e 7s subje ct. Un -
de rstan din g this pe rspe ctive he lpe d all of us move forward7 thoug h n ot
without te n sion . W e comple te d this work about two of Te xas's rrwost itn por-
33. Lyn don B. John soll an d Ge org e R. Brown , te le phon e con ve rsation , tape re cordin g , 29
July 1964, 9:1 O a.m., Citation #4378, Re cordin g s of Te le phon e Con ve rsation s W hite House
Se rie s. LBJL. Also se e Clark Clifford, July 29, 1964, 8:21 p.m:, Citation #4409, RTC-W HS.
LBJL; Ge org e R. BromTn 7 Fe brn ary 147 1964, 12:20 p.m., Citation #2082, RTC-VVHSt LBJL.
34. "The Man \ho is Pre side rlt," Life AIfz g .in e , 14 Aug ust 1964, 80.
35. Jose ph A. Pratt an d Christophe r J. Castan e da, B.z ild..e rs: He rmaSta arld Ge org e R. Brotcn
(C(lle g e Station : Te xas A&M Un ive rsity Pre ss, 1999).
26 * THE PUBLIC HISTORIAN
tan t political e n tre pre n e urs, an d it is quite ce rtain that without spon sorship
this study of two ve ry private ye t in flue n tial pe rson s could n e ve r have be e n
accomplishe d.
From In te rn al to Exte rn al Focus
Two ye ars afte r Pan han dle Easte rn acquire d Te xas Easte rn , we he ard
ag ain from PE's man ag e me n t. The n e w CEO happe n e d to be De n n is
He n drix, the forme r Te xas Easte rn CEO. He was in te re ste d in spon sorin g
a history of his n e w corporation , a dive rsifie d n atural g as pipe lin e compan y
with addition al lin e s e xte n din g from the Gulf Coast to midwe ste rn state s.
Pan han dle 's same vice pre side n t for public affairs n ow e n vision e d a pub-
lishe d history comple me n tary in format an d style to the Te xas Easte rn
history. Ide ally, from his pe rspe ctive , the two books would be the same siz e
(7" x 10"), would have similar jacke ts, an d would fit in to on e book box
suitable for she lvin g .
The PE proje ct comme n ce d as a on e -ye ar surve y of corporate re cords. A
g raduate stude n t con ducte d about sixty oral history in te rvie ws, an d we
de sig n e d a workin g outlin e for a full-fle dg e d corporate histoIy. At the
comple tion of the first ye ar, we sig n e d a con tract (base d on the e arlie r TE
con tract) to re se arch an d write a corporate history. This con tract also
g ran te d full acce ss to re cords, e ditorial con trol, an d rig ht to publish.
An oddly se lf-re fle ctive mome n t occurre d late r in the proje ct whe n we
discove re d that in the late 1950s PE had hire d Robe rt Eckle s, a profe ssor at
Purdue Un ive rsity, to write its history. Afte r man yye ars an d man y drafts, his
man usciipt was file d away un publishe d (alon g with the proje ct's corre spon -
de n ce ) at the In dian a Historical Socie ty, which had admin iste re d the work.
This e arlie r e ffort was an othe r re min de r of the fate of man y spon sore d
busin e ss histoiy proje cts.
Althoug h we orig in ally e xpe cte d to write a tradition al corporate histoIy
with a g e n e rally in te rn al focus, our pre vious re se arch allowe d us to accumu-
late a g re at de al of kn owle dg e about this in dustIy, the pe ople in volve d with
it, an d the re g ion 's e con omic an d cultural de ve lopme n t. Our colle ctive
e xpe rie n ce s le d us to take a more cre ative approach in writin g PE's histoxy.
W e re aliz e d that the firm's e volution was appropriate for an alysis within
a broad con te xt. The pipe lin e compan y's orig in al promote rs in the 1920s
plan n e d to build the first n atural g as pipe lin e con n e ctin g the massive n atural
g as fie lds of n orth Te xas with midwe ste rn me tropolitan are as, in cludin g
In dian apolis an d De troit. To raise mon e y for this ve n ture , the y atte mpte d
an ultimate ly un succe ssful stock promotion sche me just prior to the 1929
W all Stre e t crash.
In te n t on buildin g the lin e , the y con fron te d the "Powe r Trust" in cludin g
Samue l In sull an d He n Iy Dohe rty, which soug ht con trol ove r all aspe cts of
the midwe ste rn g as an d e le ctric utility busin e ss. \N7hile the Pan han dle g roup
BUSINESS HISTORY * 27
succe ssfully raise d mon e y throug h the stock marke t, a g roup of utility firms
le d a '<be ar raid" on Pan han dle Easte rn 's stock, forcin g it in to re ce ive rship
an d the n in to the con trol of a compe tin g firm which wan te d Pan han dle 's g as
pipe lin e syste m for its own . A subse que n t biz arre corporate e spion ag e
e pisode fun de d by He n ry Dohe rty (of Citie s Se rvice ) was de sig n e d to
pre ve n t Pan han dle Easte rn from re g ain in g its in de pe n de n ce .
From 1928 throug h 1935, the Fe de ral Trade Commission (FTC) in ve s-
tig ate d the turmoil in the U.S. utility in dustIy.36 In its massive n in e ty-six-
volume , se ve n -ye ar in ve stig ation of the public utility busin e ss, the FTC
focuse d much atte n tion on Pan han dle Easte rn 's strug g le ag ain st the e n -
tre n che d utility in te re sts. The FTC's in ve stig ation re sulte d in Ne w De al
le g islation in cludin g the Public Utility Holdin g Compan y Act (1935), the
Fe de ral Powe r Act ( 1935), an d the Natural Gas Act ( 1938), which dramati-
cally chan g e d the way utilitie s could ope rate in the future . Surprisin g ly, n o
on e at the compan y with whom we spoke had an y kn owle dg e of the ir firm's
e arly histoty.
An othe r discove ry of e xe cutive corre spon de n ce n ot liste d in the firm's
corporate re cords syste m he lpe d as we ll. A box foun d in the g e n e ral
coun se l's e xe cutive suite con tain e d de taile d in formation about the
compan y's in volve me n t in e ve n ts le adin g up to the Supre me Court's
"Phillips De cision " of l9S4.37 This de cision affirme d the imposition of
fe de ral price con trols on produce rs se llin g n atural g as to in te rstate pipe lin e s
for re sale . Twe n ty ye ars late r, the Phillips De cision be came the focus of
in te n se criticism by e con omists an d policymake rs for facilitatin g a n ation -
wide n atural g as shortag e .
W e we re writin g durin g the e arly 1990s whe n the g as in dustIy was
re structurin g in re spon se to de re g ulation , an d it be came cle ar that this
busin e ss histoxy n e e de d to be place d within the con te xt of twe n tie th-
ce n tury busin e ss-g ove rn me n t re lation s. W e share d our n e w vision of Pan -
han dle Easte rn 's past with man ag e me n t. De spite our con tractual rig hts, it
was importan t to discuss what amoun te d to an e n tire ly diffe re n t frame work
for the pre se n tation of the compan y's historical de ve lopme n t. Man ag e me n t
g e n e rally appre ciate d the re g ulatory the me , sin ce the y we re de alin g with
the e ffe cts of a rapidly chan g in g re g ulatory e n viron me n t in the ir curre n t
work, but othe rs we re le ss e n thusiastic.38
On e re tire e (from the public re lation s de partme n t) who had be e n ac-
tive ly in volve d in assistin g our re se arch e fforts be came de e ply dise n chan te d
with the proje ct's n e w dire ction . Althoug h he re adily ag re e d that the
re g ulatory the me was sig n ifican t historically, he be lie ve d that the man u-
script was be comin g in cre asin g ly distan ce d from the in te rn al history with
36. Fe de ral Trade Commission , Re port to the Se n ate on Public Utility Corporation s,
Se n ate Docume n t n o. 92 (70th Con g ., 1st se ss.).
37. Phillips Pe trole um Compan y v. State of W iscon sin , 374 U.S. 672.
38. For an othe r e xample of a busin e ss histoxy that un de rwe n t a chan g e of focus, se e Ge org e
David Smith, From Mon opoly to C01n pe tition : The Tran sforan ation of Alcoa (Ne w York:
Cambridg e Un ive rsity Pre ss, 1988).
28 * THE PUBLIC HISTORIAN
which he was in timate ly familiar: the firm's le ade rs, we ll-kn own e mploye e s,
an d an e cdote s. An othe r e xe cutive re tire e e xpre sse d con ce rn that the man u-
script focuse d un fairlar on past poor man ag e rial de cision s.
In ste ad, we we re writin g about the pipe lin e compan y's strate g y for
n e g otiatin g fe de ral re g ulatory policy as it e volve d durin g the twe n tie th
ce n tur>7. No lon g e r srould a publishe d Pan han dle history look like or
othe rwise In atch the Te xas Easte rn history; the re would be n o box con tain -
in g two historie s ofthe re ce n tly me rg e d firms. Louis Galambos of The John s
Hopkin s Un ive rsity be g an e ditin g the man uscript, an d we wrote an aca-
de mic-style book for a larg e ly acade mic audie n ce .;39 It is rorth n otin g that
discussion s about the proje ct's focus occurre d vithirs the con te xt of a
colporate culture characte riz e d by te n sion s arisin g from the In e rg in g to-
g e the r of two larg e e n e rg >T firms-Te xas Easte rn an d Pan han dle Easte rn ,
an d the fact that PE's n e w CEO was forme rly at TE, as was this historian .
PE late r purchase d se xTe ral thousan d copie s to mail to re tire e s, clie n ts,
board me mbe rs, tXompe titors, an d e mploye e s. Althoug h se ve ral re tire e s
who re ce ive d the book wrote the authors coIn plime n taIy le tte rs, a thre e -
hour, compan y-spon sore d book sig n in g attracte d on ly two re tire e s, on e of
whom was Robe rt Hun sucke r, PE's CEO at the time of the Te xas Easte rn
take ove r. An e mbarrasse d public re lation s e mploye e e xplain e d that the
e ve n t had n ot be e n adve rtise d appropriate ly. Althoug h that turn e d out to be
true , the Ie ss than sparse turn out con firme d the se n se that the PE histoiy
was n ot what man y re tire e s had de sire d. If it had be e n an an e cdotal
tre atme n t with photog raphs focuse d on the firm's in te rn al history in ste ad of
a variation of<'top-doxvn '' history, the re mig ht have be e n more e n thusiasm
for the book amon g re tire e s.4
A corporate historv doe s n ot n e ce ssarily re pre se n t a un ifie d or con spira-
torial corporate ag e n da. The re are compe tin g vision s of a corporation 's
histoly from pe rspe ctive s both in side an d outside the busin e ss's domain .
Profe ssion al historian s shape the history of Ame rican busin e ss by se le ctin g
topics, con side rin g diffe re n t in te rpre tation s of pe ople an d e ve n ts, an d
de fin in g re se arch g oals.
Con tract busin e ss history offe rs un ique re se arch an d in te lle ctual oppor-
tun itie s an d challe rlg e s. The re are man y ways in which historian s can work
for a busin e ss, but historian s n xJho in te n d to write busin e ss historie s that will
con tribute to the lite rature of the org an iz ation 's in dustIy, public policy, or
othe r fie lds n e e d assuran ce s of in te lle ctual in de pe n de n ce . A con tract
should stipulate the te rms of e ditorial con trol, acce ss to re cords, an d rig ht to
publish. W hile some g ood busin e ss historie s are re se arche d, writte n an d
39. Christcaphe r J. Castan e da an d Claran ce M. Smith, Gas Pipe lin e s an cl the Ern e rg e n ce of
Arn e n ca s Re g ulaton y State : A Hisfory of Pan han dle Easte rn Corporation , 1928-1993 (Ne w
York: Cambridg e Un isre rsity Pre ss, 1996).
40. For a re ce n t study of corporate social histoly, se e Le n ard R. Be rlan ste in , Big Bu.sin e s.s
an d I7adustn al Cor2fict in Nin e te e n th-Ce n ttln y Fr(ln ce : A Social History of the Pan .sian Gas
Co1n pan y (Be rke le y: Un isTe rsitv of Californ ia Pre ss, 1991).
BUSINESS HISTORY * 29
publishe d without such a con tractv con tracts prote ct the historian whe n
proble ms arise . It is also importan t that authors an d re se arche rs ke e p lin e s
of commun ication ope n to the spon sor an d work with in te g rity.
A common criticism of con tract busin e ss history is that it is un critical of
the spon sorin g org an iz ation . In de e d, at le ast on e scholar has n ote d that
busin e sspe ople in the ir own se ttin g are ofte n more critical of the ir own
busin e ss, man ag e me n t syste m, or workin g s of capitalisrm than the historian s
who write the history!4l Busin e ss historian s should un de rstan d an d e ve n
re spe ct a firm's in te rn al culture , but the y must do the ir work with the
attitude of an in de pe n de n t an d obje ctive scholar willin g to probe con trove r-
sial issue s, poor man ag e rial de cision s, an d an y topic wllich is re le van t to the
study.
If the proje ct is to re sult in a profe ssion ally cre ate d docume n t-whe the r
book, e xhibit, vide o, or pamphle t-the historian n e e ds in te lle ctual an d
con tractual assuran ce that the product will have profe ssion al in te g rity an d
will n ot be pre ve n te d f'rom be comin g public. A corporation willin g to le t
in de pe n de n t, profe ssion al historian s re se arch an d write or othe rwise illus-
trate its history is g ran tin g the m re spon sibility for portrayin g that history.
W ith a con tract stipulatin g e ditorial con trol, acce ss to re cords, an d rig ht to
disse min ate , it be come s the historian 's re spon sibility to do profe ssion al
work.
Ultimate ly, busin e ss historian s re ly he avily on private ly own e d re cords
an d close ly he ld me morie s. If we can n ot acce ss such in formation an d make
it public in te xtual an d bibliog raphic form, the history may be come pe rma-
n e n tly lost. This would be a g re at loss to all pe rson s in te re ste d in studyin g
the historical de ve lopme n t of capitalism in the Un ite d State s.
41. For e xample , se e Ge org e Rog e rs Taylor's comme n t on Fritz Re dlich, "Approache s to
Busin e ss History,' Busin e ss History Re vie w 36, n o. 1 (Sprin g , 1962): 82.

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