American Telephone & Telegraph Co., continuing its preparations for divestiture, yesterday announced the names of the chief executive officers who will take over the seven newly organized regional operating companies once the Bell System is split up.
For the mid-Atlantic company that will include Chesapeake & Potomac Telephone Cos., AT&T named Thomas E. Bolger, an AT&T executive vice president who was C&P's president in the early 1970s.
Bolger will oversee the operations of C&P, Bell of Pennsylvania, Diamond State Telephone Co. (in Delaware) and New Jersey Bell Telephone Co. However, C&P and the other local companies will continue to operate as separate affiliates, and will serve the same territory they do now. Robert Allen will remain the head of C&P.
The reorganization plan is being drawn up by AT&T as a result of its Jan. 8 agreement with the government in which the Justice Department agreed to drop its eight-year-old antitrust suit against AT&T and the company agreed to divest itself of its 22 local operating companies.
Although the divestiture agreement has to be approved by a federal judge, AT&T has been proceeding with plans to make a smoother transition, as well as to try to assure a skeptical public and Congress that the local operating companies will not be hurt by divestiture.
The latest details were announced as AT&T's board of directors met with three congressmen, including Rep. Timothy Wirth (D-Colo.), the chairman of the House telecommunications subcommittee and the sponsor of legislation strongly opposed by AT&T to change key elements of the divestiture agreement.
Wirth registered his surprise at "AT&T's consistent misunderstanding and misprepresentations of what is in the bill and . . . their continuing opposition to serious legislation."
AT&T Vice Chairman James E. Olson, on the other hand, said that the board remains convinced that the legislation is "poor public policy relative to telephone service, absolutely unworkable in several important respects, punitive and restrictive on Bell System companies, and an extremely bad deal for the shareowners we represent."