The Writing of Corporate History

Author(s): W. David Lewis and Wesley Phillips Newton

Source: The Public Historian, Vol. 3, No. 3, Business and History (Summer, 1981), pp. 62-74
Published by: University of California Press
Stable URL: http://www.jstor.org/stable/3377732
Accessed: 05/04/2010 06:16
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at
http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless
you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you
may use content in the JSTOR archive only for your personal, non-commercial use.
Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at
http://www.jstor.org/action/showPublisher?publisherCode=ucal.
Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed
page of such transmission.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of
content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms
of scholarship. For more information about JSTOR, please contact support@jstor.org.
University of California Press is collaborating with JSTOR to digitize, preserve and extend access to The
Public Historian.
http://www.jstor.org
T h e Writing o f
Co rpo rate Histo ry
W. DAVID LEWIS AND WESLEY PHILLIPS NEWT ON
,^
1 HORST EIN VEBLEN o nce de clare d th at co rpo ratio ns h ad be co me
th e "maste r instrume nts o f civilizatio n," wh ile Nich o las Murray
Butle r be lie ve d th at th e limite d liability co rpo ratio n was "th e
gre ate st single disco ve ry o f mo de rn time s," alo ngside wh ich e ve n
such ke y te ch no lo gical inno vatio ns as th e ste am e ngine and e le c-
trical po we r we re re lative ly insignif icant. In th e ir classic study
T h e Mo de rn Co rpo ratio n and Private Pro pe rty, Ado lf A. Be rle
and Gardine r C. Me ans argue d th at a"co rpo rate syste m" h ad re -
place d th e f e udal o rde r th at pre do minate d in th e me die val wo rld,
wh ile mo re re ce ntly such write rs as Jo h n Ke nne th Galbraith h ave
e mph asize d th e incre asing co nve rge nce o f th e two institutio ns
wh ich , mo re th an any o th e rs, sh ape th e patte rn o f o ur e ve ryday
live s: th e large co rpo ratio n and th e natio n-state . T h e state me nt o f
e co no mic h isto rian Ch arle s M. Haar is just as true to day as it was
wh e n writte n ne arly f o rty ye ars ago :
T h e co rpo ratio n is th e do minant f act in o ur mo de rn e co no mic
wo rld. It h as be co me th e pre vailing f o rm o f busine ss o rganizatio n,
th e ch ie f o wne r o f asse ts, th e principal re ce ive r o f inco me , th e
mo st impo rtant e mplo ye r. Be cause o f its tre me ndo us e co no mic
63
T h e Public Histo rian, Vo l. 3, No . 3, Summe r, 1981
t 1981 by th e Re ge nts o f th e Unive rsity o f Calif o rnia
0 2 7 2 - 3 4 3 3 / 8 1 / 0 3 0 0 6 3 + 1 2 $ O O . S O
DUST JACKET FROM VM DAVID LEWIS AND WESLEY PHILIPS NEW-
T ON'S CORPORAT E HIST ORY DELT A: T HE HIST ORY OF AN AIRLINE.
64 * T HE PUBLICHIST ORIAN
po we r, th e co rpo ratio n's inf lue nce h as no t be e n co nf ine d to th at
re alm alo ne but h as we lle d o ve r to o th e r f ie lds, to po litics, to inte r-
natio nal af f airs, e ve n to so cial o rganizatio ns. 1
T o unde rstand th e h isto ry o f th e mo de rn wo rld, it wo uld se e m,
o ne must o bvio usly unde rstand th e h isto ry o f co rpo ratio ns. Ye t,
parado xically, pro f e ssio nal h isto rians h ave with re lative ly f e w e x-
ce ptio ns te nde d to sh y away f ro m th is po te ntially re warding f ie ld
o f study. T h anks to th e pio ne e ring activitie s o f such pe rso ns as
Alf re d D. Ch andle r, T h o mas C. Co ch ran, Ralph and Murie l
Hidy, Allan Ne vins, Rich ard Ove rto n, and Haro ld F. Williamso n,
th e re is agro wing bo dy o f sch o larly vo lume s de aling with th e
de ve lo pme nt o f ke y f irms in such are as as banking and f inance ,
insurance , manuf acturing, me rch andising, and transpo rtatio n.2
1. Se e Ado lf A. Be rle , Jr. and Gardine r C. Me ans, T h e Mo de rn Co rpo ratio n and
Private Pro pe rty, re printe d e d. (Ne w Yo rk: Macmillan, 1948), pp. 1-2; Nich o las Mur-
ray Butle r, Wh y Sh o uld We Ch ange Our Fo rm o f Go ve rnme nt? Studie s in Practical
Po litics (Ne w Yo rk: Ch arle s Scribne r's So ns, 1912), p. 83; Ch arle s M. Haar, "Le gisla-
tive Re gulatio n o f Ne w Yo rk Industrial Co rpo ratio ns, 1800-1850," Ne w Yo rk Histo ry,
XXII (April, 1941), p. 191.
2. Se e particularly Alf re d D. Ch andle r, Jr., Strate gy and Structure : Ch apte rs in
th e Histo ry o f th e Industrial Ente rprise (Cambridge , Mass.: M.I.T . Pre ss, 1962);
Alf re d D. Ch andle r, Jr. and Ste ph e n Salsbury, Pie rre S. du Po nt and th e Making o f th e
Mo de rn Co rpo ratio n (Ne w Yo rk: Harpe r and Ro v, 1971); T h o mas C. Co e h ran, T h e
Pabst Bre wing Co mpany (Ne w Yo rk: Ne w Yo rk Unive rsity Pre ss, 1948); Ralph W.
Hidy, T h e Ho use o f Baring in Ame rican T rade and Finance (Cambridge , Mass.: Har-
vard Unive rsity Pre ss, 1949); Ralph W Hidy and Murie l E. Hidy, Pio ne e ring in Big
Busine ss: Histo ry o f Standard Oil Co mpany (Ne w Je rse y), 1882-1911, 3 vo ls. (Ne w
Yo rk: Harpe r and Ro w, 1955); Ralph W Hidy, Frank Erne st Hill, Allan Ne vins e t al.,
T imbe r and Me n: T h e We ye rh aue se r Sto ry (Ne w Yo rk: Macmillan, 1973); Allan Ne v-
ins and Frank Erne st Hill, Fo rd, 3 vo ls.: Vo l. I, T h e T ime s, th e Man, th e Co mpany;
Vo l. 2, Expansio n and Ch alle nge , 1915-1933; and Vo l. 3, De cline and Re birth , 1933-
1962 (Ne w Yo rk: Ch arle s Scribne r's So ns, Publish e rs, 1954-1962); Rich ard C. Ove rto n,
Burlingto n Ro ute : A Histo ry o f th e B1lrlingto n Line s (Ne w Yo rk: Kno pf , 1965);
Haro ld F Williamso n, Winch e ste r: T h e Cun T h at Wo n th e We st (Wash ingto n, D.C.:
Co mbat Fo rce s Pre ss, 1952); Haro ld F Williamso n and Ke nne th H. Mye rs, De signe d
f o r Digging: T h e First 75 Ye ars o f Bucyrus-Erie Co mpany (Evansto n, Ill.: No rth -
we ste rn Unive rsity Pre ss, 1955); and Haro ld F Williamso n and Orange A. Smalle y,
No rth we ste rn Mutual Lif e : A Ce ntury o f T ruste e sh ip(Evansto n, Ill.: No rth we ste rn
Unive rsity Pre ss, 1957). T h e vo lume s by Ch andle r and Salsbury, no t strictly co rpo rate
h isto rie s in th e same se nse as th e o th e rs, are include d be cause th e y po sse ss e sse ntial
ch aracte ristics o f th e ge nre at its be st. Se e also Ho ward F Be nne tt, Pre cisio n Po we r:
T h e First Half Ce ntury o f Bo dine Ele ctric Co mpany (Ne w Yo rk: Apple to n-Ce ntury-
Cro f ts, 1959); Bo ris Emme t and Jo h n E. Je ucks, Catalo gue s and Co unte rs: A Histo ry
o f Se ars, Ro e buck (Ch icago : Unive rsity o f Ch icago Pre ss, 1950); Ge o rge S. Gibb, T h e
Wh ite smith s o f T aunto n: A Histo ry o f Re e d and Barto n (Cambridge , Mass.: Harvard
Unive rsity Pre ss, 1943); Ge o rge S. Gibb, T h e Saco -Lo we ll Sh o ps: T e xtile Mach ine ry
Building in Ne w England, 1813-1949 (Cambridge , Mass.: Harvard Unive rsity Pre ss,
1950); Ralph M. Ho we r, T h e Histo ry o f an Adve rtising Age ncy: N. W Aye r 6 So n at
Wo rk, 1869-1949 (Cambridge , Mass.: Harvard Unive rsity Pre ss, 1949); Ralph M.
Ho we r, Histo ry o f Macy's o f Ne w Yo rk, 1858-1919: Ch apte rs in th e Evo lutio n o f th e
T HE WRIT ING OF CORPORAT E HIST ORY * 65
Ne ve rth e le ss, it is still saf e to say th at f o r e ve ry care f ully re -
se arch e d and painstakingly writte n study o f an impo rtant busi-
ne ss e nte rprise , th e re are agre at many mo re supe rf icial acco unts
h astily pre pare d by jo urnalists po pularize rs, o r public re latio ns
de partme nts, and th at public unde rstanding o f th e nature and
h isto ry o f Ame rican busine ss is to aco nside rable de gre e f o rme d
by such pro ductio ns. On th e o ne h and, bo o ks o r article s pre pare d
in th is manne r may be simply puf f jo bs o r institutio nal adve rtise -
me nts wh ich carry little cre de nce be cause o f th e ir h igh ly uncriti-
cal nature . On th e o th e r h and, th e y may also be muckraking
e f f o rts manif e sting an animus against af irm and its le ade rsh ipo r
against th e private e nte rprise syste m itse lf . In e ith e r case , th e
ne e d f o r abalance d, o bje ctive analysis o f co rpo rate de ve lo pme nt
is ill se rve d.3
T h e re aso ns f o r th e re lative scarcity o f care f ul, in-de pth co rpo -
rate h isto rie s are no t dif f icult to unde rstand Busine ss e xe cutive s,
naturally so licito us abo ut th e public image and re putatio n o f
th e ir e nte rprise s may f e ar th at an o bje ctive acco unt o f af irm's
e vo lutio n base d upo n unre stricte d acce ss to co mpany re co rds will
disclo se inf o rmatio n th e y f e e l sh o uld be st be ke pt private . Dis-
trust o f acade micians, ste mming partly f ro m ste re o type s o r f ro m
th e be lie f th at much h isto ry h as be e n writte n f ro m a po int o f
vie w implicitly critica] o f busine ss as a f o rce in Ame rican lif e ,
may inte nsif y th is f e e ling. T h e re may also be a co nce rn th at
trade se cre ts will be re ve ale d o r inf o rmatio n e licite d th at may
co mplicate litigatio n o r re gulato ry pro ce e dings in wh ich th e
co mpany is invo lve d. Eve n if th e se re se rvatio ns are o ve rco me ,
many co mpanie s ro utine ly de stro y po te ntially valuable re co rds
wh ich th e y are no lo nge r le gally re quire d to ke e po r wh ich are
taking upspace ne e de d f o r o th e r purpo se s, and th us th e ve ry
De partme nt Sto re (Cambridge w Mass.: Harvard Unive rsity Pre ss, 1943); and T h o mas
R. Navin, T h e Wh itin Mach ine Wo rks Since 1831: A T e xttle Mach tne ry Co mpany in
an Ind2xstrial Village (Cambridge , Mass+: Harvard Unive rsity Pre ss, 1950). T h e h ar-
ve st o f co mpany h isto rie s o f th is calibe r in th e 1970s h as be e n disappo intingly me age r,
but se e Ralph D. Gray, Ste llite : A Histo ry o f th e Hayne s Ste llite Co mpany, 1912-
1972 (Ko ko mo , Indiana: Ste llite Divisio n o f Cabo t Co rpo ratio n, 1974); Orange A.
Smalle y and Fre de rick D. Sturdivant7 T h e Cre dit Me rch ants: A Histo ry o f Spie ge l,
Inc. (Carbo ndale , Ill.: So uth e rn Illino is Unive rsity Pre ss, 1973); and Jo h n F Sto ve r,
Histo ry o f th e Illino is Ce ntral Railro ad (Ne w Yo rk: Macmillan, 1975). Our o wn De l-
ta: T h e Histo ry o f an Airline will be tre ate d at so me le ngth late r in th is pape r.
3. Se e Haro ld F: Williamso n, ''T h e Pro f e sso rs Disco ve r Ame rican Busine ss," in Ro ss
M. Ro be rtso n and Jame s L. Pate , e ds*, Re adings in Unite d State s Eco no mic and Busi-
ne ss Histo ry (Bo sto n: Ho ugh to n Mif f lin Co mpany, 1966), pp. 26-29.
66 * T HE PUBLICHIST ORIAN
basis f o r asch o larly study is lacking. Or if co rpo rate re co rds and
manuscripts are re taine d in bulk, th e y are like ly to be scatte re d
abo ut in inco nve nie nt lo catio ns o r h o use d in such amanne r as to
make th e ir inspe ctio n and use dif f icult. Bringing th e m to ge th e r
unde r co nditio ns co nducive to pro f e ssio nal re se arch may se e m to
invo lve an o utlay o f co mpany time and re so urce s be tte r inve ste d
in o th e r ways.
Fro m th e sch o lar's po int o f vie w, it may no t pro ve po ssible to
se cure th e type o f acce ss to co mpany re co rds and th e righ t to
inve stigate and inte rpre t th e m unde r co nditio ns indispe nsable to
th e pro f e ssio nal viability o f th e f inish e d pro duct. Eve n if th is bar-
rie r is cle are d, th e co mpany's re co rds may be in such astate o f
diso rganizatio n and ne gle ct, if inde e d th e y h ave survive d, as to
make re se arch dif f icult. If th e f irm is o ld, th e re may be co nside r-
able gaps in th e mate rials wh ich are available , making it h ard to
put to ge th e r a co nsiste nt and co h e re nt acco unt o f its de ve lo p-
me nt. In so me case s, th e pro ble m may be e xactly th e o ppo site :
th e re co rds may be so stagge ring in to tal vo lume , particularly if
th e f irm is alarge and impo rtant o ne , as to be intimidating to all
but th e h ardie st and mo st de dicate d re se arch e r. It may re quire
th e se rvice s o f ate am o f assistants to do justice to e ve n af air
sampling o f th e mate rials available , particularly, as is o f te n th e
case , wh e n th e re sulting study must be pro duce d with in agive n
de adline so as to be in print by asignif icant annive rsary date .
T h e matte r may be f urth e r co mplicate d if th e institutio n at
wh ich th e sch o lar is pro f e ssio nally e mplo ye d h appe ns to be at
so me distance f ro m th e co mpany h e adquarte rs, ne ce ssitating f re -
que nt trave l o r pro tracte d le ave s o f abse nce f ro m te ach ing and
o th e r acade mic re spo nsibilitie s. Fo r such re aso ns th e writing o f
so lid co rpo rate h isto ry is o f te n e xtre me ly e xpe nsive , usually re -
quiring asize able grant o f f unds f ro m th e co mpany itse lf . In th e
case o f aco mpany grant, it must be cle ar th at th e re are no strings
attach e d th at will co mpro mise th e inte grity o f th e sch o lar.
It is th e re f o re e asy to se e wh y aco mpany may th ink it pre f e ra-
ble to turn to its public re latio ns de partme nt if aco rpo rate h is-
to ry is de sire d, o r to h ire ajo urnalist o r f re e -lance write r wh o will
no t be to o particular abo ut th e type s o f mate rials available f o r
re se arch o r th e co nditio ns impo se d upo n th e ir use . Similarly, it is
no t h ard to unde rstand h o w acurio us write r f ro m o utside th e
o rganizatio n, e age r to pro duce ase nsatio nal e xpo se o r at th e ve ry
T HE WRIT ING OF CORPORAT E HIST ORY * 67
le ast a bo o k with imme diate sale s appe al, may put to ge th e r a
wo rk base d upo n ne wspape r and magazine article s, vario us pub-
lic re co rds, such inte rvie ws as may be o btainable , and o th e r
available so urce s with o ut re co urse to th e co mpany re co rds wh ich
can alo ne pro vide are ally accurate and co mpre h e nsive picture o f
th e f irm's de ve lo pme nt.
De spite all th e dif f icultie s invo lve d, th e re are signif icant po te n-
tial re wards bo th f o r a co mpany and f o r th e pro f e ssio nal wh o
unde rtake s to write its h isto ry base d upo n an agre e me nt wh ich
pro vide s f re e acce ss to available co rpo rate re co rds and wh ich in-
sure s sch o larly inte grity and o bje ctivity. Fro m th e co mpany's
po int o f vie w, th e re sultant pro duct will po sse ss acre dibility th at
is ultimate ly lacking f ro m e ve n th e mo st skillf ully co nce ive d 4'in-
side jo b." T h e public de mo nstratio n by th e co mpany th at it is no t
af raid to o pe n its re co rds to o utside scrutiny and to suppo rt th e
writing o f an o bje ctive acco unt o f its co rpo rate past is in itse lf
impre ssive te stimo ny to its se nse o f se lf -wo rth and its co nf ide nce
th at in th e f inal analysis it h as no th ing to h ide . Alth o ugh aco m-
pany can do little o r no th ing to pre ve nt a "muckrake r>' f ro m
writing awo rk th at pre se nts its h isto ry in adistinctly le ss th an
f avo rable ligh t, h aving a so undly re se arch e d, co mpre h e nsive
and accurate vo lume in print may ultimate ly be af irm's be st de -
f e nse against th is so rt o f misre pre se ntatio n.
It is e vide nt, o f co urse th at a we ll-writte n co rpo rate h isto ry
can do agre at de al to e nge nde r amo ng aco mpany's e mplo ye e s a
le gitimate se nse o f pride in its ach ie ve me nts and traditio ns. But a
so undly-pre pare d wo rk o f th is type , writte n by aco mpe te nt pro -
f e ssio nal, can h ave an e ve n mo re impo rtant f unctio n. As Haro ld
E Williamso n h as po inte d o ut, "One o f th e mo st valuable asse ts
o f any busine ss is ne ve r liste d in its bo o ks o f acco unt, alth o ugh it
may be re f le cte d in th e marke t value o f its sto ck. T h is unliste d
asse t is th e e xpe rie nce o f th e o rganizatio n's ke y e xe cutive s." It is
as impo rtant to aco rpo ratio n as it is to an individual, Pro f e sso r
Williamso n po ints o ut, to be able to be ne f it f ro m past e xpe rie nce
wh e n making ke y po licy de cisio ns, but it is also e asy to lo se track
o f wh at h as h appe ne d in th e past, particularly if af irm's h isto ry
e xte nds back o ve r anumbe r o f ge ne ratio ns. In Williamso n's apt
wo rds "Casual re co lle ctio ns are f re que ntly inaccurate as time
te nds to magnif y th e de cisio ns wh ich we re so und and minimize
th o se wh ich turne d o ut badly. Myth s abo ut th e o rganizatio n's past
68 * T HE PUBLICHIST ORIAN
be co me acce pte d as re ality." T h e f irm with aco mpe te ntly writ-
te n co rpo rate h isto ry at its dispo sal is th e re f o re at an advantage
be cause it po sse sse s ade pe ndable me mo ry bank wh ich pro vide s
re liable inf o rmatio n abo ut h o w it de alt with crise s, survive d de -
pre ssio ns, made wise de cisio ns, and o n o ccasio n co mmitte d mis-
take s wh ich it wo uld do we ll to avo id in th e f uture .4
No co mpany) large o r small, h as go ne th ro ugh ah isto ry o f any
signif icant le ngth , o f co urse , with o ut making mistake s, and th is is
so me th ing wh ich co rpo rate e xe cutive s sh o uld ke e pin mind wh e n
co nside ring th e risk o f laying bare its past to o bje ctive sch o lar-
sh ip. T o e rr, af te r all, is o nly h uman, but o ne can also le arn f ro m
e rro rs. T h is is th e so rt o f be ne f it th at is no t like ly to accrue f ro m a
"puf f jo b," h o we ve r skillf ully co ntrive d. It is be cause o f such co n-
side ratio ns th at August C. Bo lino , auth o r o f an inf o rmative e ssay
o n "T h e Busine ssman and Busine ss Histo ry," h as co nte nde d,
"T h e o bvio us public re latio ns and adve rtising advantage s are
gre atly o utwe igh e d by th e ch ie f re aso rl f o r th e e xiste nce o f busi-
ne ss h isto rie s: th at is, th e manage me nt po licie s wh ich e me rge o ut
o f th e se h isto rie s and wh ich se rve as to o ls f o r e f f e ctive f uture ad-
ministratio n and o rganizatio n o f busine ss."5
T h e re ward to th e sch o larly co mmunity f ro m th e gro wing
numbe r o f substantial busine ss h isto rie s is e qually gre at. Be cause
o f th e e no rmo us ro le wh ich private e nte rprise h as playe d in th e
de ve lo pme nt o f Ame rican civilizatio n and value s, it is o f o bvio us
impo rtance th at th e dynamics o f th e basic ve h icle o f busine ss ac-
tivity th e individual f irm be unde rsto o d as f airly and accu-
rate ly as po ssible . A ve ry large bo dy o f sch o larly h isto rical
writing alre ady e xists in wh ich Ame rican busine ss is e xamine d
f ro m th e o utside , so to spe ak; f o r af ully co mpre h e nsive vie w it
must also be e xamine d f ro m th e inside , with o ut lo sing o bje ctivity
but ne ve rth e le ss h aving wh at Pro f e sso r Williamso n calls "asym-
path e tic unde rstanding o f th e circumstance s and re aso ns th at le d
to majo r po licy de cisio ns by th e manage me nt.'6 In th is way o ne
can study h o w af irm is bo rn, pe rh aps as acre ative re spo nse to a
particular ne e d in th e co mmunity at large in agive n h isto rical
se tting, o r pe rh aps as away o f capitalizing upo n th e po ssibilitie s
4. Ibid., pp. 31-32.
5. August C. Bo lino , "T h e Busine ssman and Busine ss Histo ry,'' in Ro be rtso n and
Pate , e ds., Re adings, p. 42.
6. Williamso n, ''T h e Pro f e sso rs Disco ve r Ame rican Busine ss,'' lo c. cit., pp. 29-30.
T HE WRIT ING OF CORPORAT E HIST ORY * 69
inh e re nt in asignif icant scie ntif ic o r te ch no lo gical bre akth ro ugh ;
h o w th e co mpany survive s e arly ch alle nge s and adve rsitie s in th e
critical pe rio d o f co rpo rate inf ancy th at wipe s o ut many f le dg-
ling e nte rprise s; h o w it re spo nds to o bstacle s and impe dime nts to
its gro wth o nce th e crucial initial stage h as be e n succe ssf ully ne -
go tiate d; h o w it co mpe te s with o th e r f irms in th e same f ie ld o f
e nde avo r; h o w o rganizatio nal ch ange s take place as th e co m-
pany's af f airs be co me mo re co mple x; h o w it h andle s th e pro b-
le ms inh e re nt in de aling with go ve rnme nt re gulato ry age ncie s;
h o w it marsh als th e vario us re so urce s h uman, mate rial, f inan-
cial, and te ch no lo gical-upo n wh ich its live lih o o d de pe nds; and
so o n. All o f th e se stage s and pro ble ms call f o r care f ul analysis,
and th e accumulatio n o f case studie s re pre se nte d by individual
busine ss h isto rie s is gradually pro ducing an incre asingly so lid e m-
pirical basis f o r ajust unde rstanding o f th e e vo lutio n o f pro f it-
se e king e nte rprise s in Ame rican so cie ty.
Se ve ral ch aracte ristic be nch marks in th e de ve lo pme nt o f large
busine ss o rganizatio ns may be single d o ut f o r particular atte ntio n
at th is po int. One is th e te nde ncy f o r th e succe ssf ul co mpany to
abso rb o ne o r mo re o f its co mpe tito rs o r f e llo w e nte rprise s in a
me rge r. Alth o ugh th is is a pro ce ss f ull o f th e e xcite me nt th at
co me s with gro wth and incre asing e co no mic po we r, it also po se s
pro ble ms o f assimilatio n and vario us type s o f adjustme nts th at
are f ascinating to study in de tail, bo th f ro m th e pe rspe ctive o f
th e surviving co rpo ratio n and th at o f th e busine ss e ntity th at is
be ing abso rbe d. In additio n, th e co mple x ne go tiatio ns pre ce ding
a me rge r, th e ro le S if any, o f go ve rnme nt re gulato ry age ncie s
wh o se appro val may be ne ce ssary be f o re it co me s to pass, and th e
lo ng-range impact o f th e me rge r upo n th e large r f irm wh ich
e me rge s f ro m th e pro ce ss are all matte rs f ull o f inte re st to th e
sch o larly inve stigato r. Our o wn study o f th e h isto ry o f De ltaAir
Line s, wh ich during th e co urse o f its gro wth and de ve lo pme nt
acquire d two o th e r e nte rprise s Ch icago and So uth e rn (1953) and
No rth e ast Airline s (1972), is a case in po int. Bo th me rge rs in-
vo lve d pro lo nge d ne go tiatio ns, co mple x pro ce e dings be f o re th e
Civil Ae ro nautics Bo ard, and painstaking e f f o rts succe ssf ul in
bo th case s- to me ld pre vio usly se parate o rganizatio ns into an e f -
f e ctive co nso lidate d busine ss unit. T h e me rge r with Ch icago and
So uth e rn (C& S) in particular h ad aco nside rable impact upo n
th e f uture o f th e surviving co rpo ratio n f o r many o f its to pe xe cu-
70 * T HE PUBLICHIST ORIAN
tive s in re ce nt ye ars came o riginally f ro m th e smalle r co mpany
and bro ugh t C& S's o wn distinctive appro ach to manage me nt
with th e m into th e e xpande d o rganizatio n.7
Co nsummating ame rge r, particularly with af irm o f any co n-
side rable size , o bvio usly re pre se nts amajo r mile sto ne in th e o n-
go ing lif e o f a co rpo ratio n. But th e no rmal co urse o f th e
de ve lo pme nt o f any busine ss e nte rprise is punctuate d with indi-
vidual de cisio ns o n all so rts o f matte rs wh ich cumulative ly and
co lle ctive ly spe ll th e dif f e re nce be twe e n pro f it and lo ss, and ulti-
mate ly be twe e n succe ss and f ailure . T racing th e co urse o f th e se
de cisio ns, th e input upo n wh ich th e y we re base d, th e discussio ns
and de bate s wh ich to o k place , th e pe rso nalitie s wh ich we re in-
vo lve d, and th e ultimate re sults wh ich o ccurre d is o ne o f th e
mo st intriguing and instructive tasks o f th e busine ss h isto rian. In
th e case o f De lta, f o r e xample , a particularly dif f icult de cisio n
was re ach e d in th e late 1950s to bypass th e acquisitio n o f tur-
bo pro pplane s and mo ve dire ctly f ro m pisto n-drive n to je t-pro -
pe lle d aircraf t; it turne d o ut ve ry f o rtunate ly f o r th e co mpany
but th e re we re co nside rable misgivings wh ile th e matte r was
be ing re so lve d. Ano th e r ke y de cisio n, re ach e d e arlie r, invo lve d
h aving th re e qualif ie d pilo ts in th e co ckpit o f e ach large De lta
plane , o ne o f wh o m se rve d as apilo t-e ngine e r, rath e r th an two
pilo ts and a f ligh t e ngine e r with o ut pilo t training. In th e sh o rt
run De lta's appro ach was mo re e xpe nsive th an th e o th e r alte rna-
tive , wh ich was ch o se n by mo st airline s. In th e lo ng turn, h o w-
e ve r, it avo ide d bitte r labo r dispute s wh ich plague d anumbe r o f
De lta's co mpe tito rs in th e 1960s and th us pro ve d to be a wise
mo ve de spite th e e arly inco nve nie nce s invo lve d.8
T h is e xample illustrate s Pro f e sso r Williamso n's o bse rvatio n
th at care f ul busine ss h isto rie s h e lpbe ar o ut "th e impo rtance o f
o th e r variable s th an th o se traditio nally use d by e co no mists in
e valuating busine ss o pe ratio ns," particularly static co st-price -o ut-
put f o rmulas wh ich do no t make suf f icie nt allo wance f o r o th e r
pe rtine nt f acto rs.9 In De lta's case , th e de cisio n to use pilo t-e n-
gine e rs rath e r th an me re f ligh t e ngine e rs re sulte d f ro m th e ke e n
7. W. David Le wis and We sle y Ph illips Ne wto n, De lta: T h e Histo ry o f an Airline
(Ath e ns, Ga.: Unive rsity o f Ge o rgia Pre ss, 1979), pp. 211-43, 366-86.
8. Ibxd., pp. 236-37, 307-8.
9. Williamso n, ''T h e Pro f e sso rs Disco ve r Ame rican Busine ss," lo c. cit., p. 33.
T HE WRIT ING OF CORPORAT E HIST ORY * 71
psych o lo gical insigh t o f th e co mpany's lo ng-time ch ie f e xe cutive
and patriarch , C. E. Wo o lman, wh o saw th at it was bad po licy to
"put abo ard o n aman's h e ad" in o th e r wo rds, to put af ligh t
e ngine e r into aco ckpit with two o th e r pe rso ns into wh o se po si-
tio ns h e co uld ne ve r aspire to mo ve . Ove r th e ye ars De lta's suc-
ce ss as th e airline industry's mo st co nsiste ntly pro f itable carrie r
h as o we d a gre at de al to th e co mpany's e xtre me se nsitivity to
"pe o ple -o rie nte d" issue s and its de dicatio n to pursuit o f wh at th e
f irm like s to call a "f amily f e e ling" amo ng its e mplo ye e s at-
tribute s initiate d and f o ste re d by Wo o lman. One o f th e po te ntial
re wards o f busine ss h isto ry is th e manne r in wh ich it can trace
th e e vo lutio n o f a distinctive manage rial style , f re que ntly at-
tributable to an e ntre pre ne ur wh o stamps an e nte rprise with th e
imprint o f h is o wn pe rso nality, as was ce rtainly th e case with
De lta. 10
In a brie f e ssay we can me re ly sugge st ce rtain sch o larly re -
wards to be gaine d f ro m th e pursuit o f busine ss h isto ry and can-
no t pre te nd to o f f e r a co mpre h e nsive list. No acco unt o f th e
le sso ns to be le arne d f ro m re se arch in th is are a, h o we ve r, sh o uld
ne gle ct th e classic wo rk o f Alf re d D. Ch andle r, Jr., wh o se bo o k
Strate gy and Structure : Ch apte rs in th e Histo ry o f th e Indus-
trial Ente rprise (1962) is alandmark in th e de ve lo pme nt o f th e
discipline . Basing h is co nclusio ns o n acare f ul analysis o f th e e x-
pe rie nce o f f o ur giant e nte rprise s Du Po nt; Ge ne ral Mo to rs;
Se ars, Ro e buck; and Standard Oil o f Ne w Je rse y Ch andle r
sh o ws h o w th e ce ntralize d, f unctio nally de partme ntalize d ad-
ministrative structure ch aracte ristic o f th e late nine te e nth ce n-
tury pro ve d inade quate to th e de mands impo se d by ch anging
marke t co nditio ns in th e twe ntie th ce ntury and was ultimate ly
re place d by a"de ce ntralize d, multidivisio nal structure " th at h as
be co me incre asingly th e no rm f o r industrial f irms. Alth o ugh no t
aco mpany h isto ry in th e strict se nse o f th e te rm, Ch andle r's bril-
liant synth e sis e xe mplif ie s th e type o f ge ne ralizatio ns wh ich can
be gaine d f ro m cre ative re se arch in co mpany re co rds.ll
We h o pe th is brie f analysis h as suf f lcie ntly de mo nstrate d th e
po te ntial re wards o f sch o larly busine ss h isto ry bo th f o r th e f irm
spo nso ring such a pro je ct and f o r th e acade mic co mmunity. In
co nclusio n we will sugge st th e type o f arrange me nts unde r wh ich
10. Le wis and Ne wto n, De lta, passim.
11. Ch andle r, Strate gy and Structure , pp. 1-17 and passim.
72 * T HE PUBLICHIST ORIAN
astudy o f th is type sh o uld be carrie d o ut.l2 T h e co re o f th e mat-
te r is th e willingne ss o f th e e nte rprise to re alize th at in de aling
with pro f e ssio nal h isto rians th e re must be af ull acce ptance o f th e
de mands o f sch o larly o bje ctivity and inte grity. With o ut such as-
surance th e pro je ct sh o uld no t be co mme nce d. Auth o rity f o r th e
se le ctio n and inte rpre tatio n o f th e mate rials use d in pro ducing
th e study sh o uld re st with th e pro f e ssio nals carrying it o ut. T h e
re sulting manuscript sh o uld be th e irs, and th e y sh o uld h ave th e
righ t to ch o o se th e publish e r.
On th e o th e r h and, th e le gitimate inte re sts o f th e f irm to pro -
te ct itse lf f ro m th e disclo sure o f inf o rmatio n th at migh t be h arm-
f ul to its curre nt busine ss o pe ratio ns, as f o r e xample by re ve aling
trade se cre ts o r se nsitive datare le vant to o ngo ing litigatio n o r
go ve rnme nt re gulato ry pro ce e dings, are e vide nt. A go o d way o f
de aling with th is pro ble m is to e stablish a "cut-o f f date " af te r
wh ich af ull h isto rical acco unt will sto p. If af inal ch apte r is in-
clude d to carry th e acco unt upto th e pre se nt, it may be base d by
mutual agre e me nt o n alimite d range o f mate rials. In additio n,
co mpany o f f lcials may re se rve th e righ t to re que st f ulle r do cu-
me ntary pro o f by auth o rs o f any state me nts wh o se f actual ac-
curacy may be que stio ne d, o r to pre se nt additio nal e vide nce th at
may alte r an auth o r's curre nt po sitio n o n a particular issue . In
case s wh e re th e co mpany's and th e auth o rs' inte rpre tatio ns o f th e
f acts may invo lve an irre co ncilable dif f e re nce , pro visio n may be
made f o r "e qual space " in th e publish e d wo rk in wh ich th e
f irm's vie wpo int may be re late d alo ng with th at o f th e auth o rs.
T h e co mpany sh o uld make its e mplo ye e s aware th at apro f e s-
sio nal h isto ry o f th e f irm is be ing writte n and co o pe rate with th e
write r in arranging inte rvie ws with pe rso nne l wh o se re co lle ctio ns
and e xpe rie nce s may play a h igh ly impo rtant ro le in th e f inal
publish e d acco unt. In additio n, ade quate f acilitie s sh o uld be pro -
vide d f o r th e auth o rs to pro ce e d with th e ir wo rk. In so me case s,
as in o ur o wn e xpe rie nce with De ltaAir Line s, it may pro ve po s-
sible to transf e r limite d quantitie s o f co mpany re co rds to auni-
ve rsity library o r arch ive s to f acilitate co nve nie nt acce ss to th e m.
12. T h e re marks th at f o llo xv, building upo n th e ge ne ral guide line s sugge ste d in
Williamso n, ''T h e Pro f e sso rs Disco ve r Ame rican Busine ss,'' p. 34, re f le ct o ur o wn e x-
pe rie nce in writing a h isto ry o f De ltaAir Line s during th e 1970s and th e guidance
wh ich we re ce ive d f ro m Pro f e sso r Williamso n th ro ugh o ut th e pro je ct, f o r wh ich we
are e xtre me ly grate f ul.
T HE WRIT ING OF CORPORAT E HIST ORY * 73
Alte rnative ly, an o f f ice may be pro vide d at th e h e adquarte rs o f
th e co mpany itse lf .
T h e f unding o f th e pro je ct is o bvio usly o f ke y impo rtance . In
th e case o f o ur o wn study, f unds we re grante d by th e De ltaAir
Line s Fo undatio n to Auburn Unive rsity to suppo rt th e writing o f
th e bo o k and we re dispe nse d in acco rdance with th e Unive rsity's
no rmal acco unting and acco untability pro ce dure s. In so me case s
aco mpany may pro vide th e f unds and wo rk f acilitie s f o r af ac-
ulty me mbe r to take ale ave o f abse nce in o rde r to sh o rte n th e
time invo lve d in th e pro je ct by th e sch o lar's de vo ting f ull atte n-
tio n to th e task.
In o rde r to e stablish cle ar-cut line s o f co mmunicatio n, an o f -
f ice r o f th e co mpany sh o uld be de signate d as th e liaiso n be twe e n
th e auth o rs and th e f irm. T h e ide ntity o f th is pe rso n is o f gre at
impo rtance ; quite o bvio usly h e sh o uld be sympath e tic to th e
pro je ct and h ave th e stature th at will co nve y to pe rso nne l
th ro ugh o ut th e co mpany o rganizatio n th e impo rtance o f th e ve n-
ture . (In o ur o wn case , f o r e xample , th e De ltaAir Line s o f f lcial
wh o playe d th is ro le was Rich ard S. Maure r, th e n Se nio r Vice
Pre side nt f o r Le gal Af f airs and curre ntly Vice Ch airman o f th e
Bo ard.) Pro visio n f o r re vie w o f th e manuscript by th is pe rso n o r
o th e r co mpany o f f icials sh o uld be made , with assurance s o f its
re turn to th e auth o rs in are aso nable amo unt o f time . Similarly,
assuming th at th e auth o rs are f aculty me mbe rs at a co lle ge o r
unive rsity, an o f f icial o f th e institutio n th e y re pre se nt may be de s-
ignate d as liaiso n, sh o uld circumstance s re quire , be twe e n th e au-
th o rs and th e co mpany. T h is pe rso n migh t be aDe an o r th e Vice
Pre side nt f o r Re se arch . In additio n, it migh t be h e lpf ul, if auni-
ve rsity h as an o ngo ing pro gram e nco uraging f aculty me mbe rs to
take part in th e writing o f busine ss h isto ry, to e stablish aco mmit-
te e o f f aculty me mbe rs, unive rsity o f f icials, and distinguish e d
pe rso ns f ro m o utside th e institutio n to pro vide o ve rall supe rvisio n
f o r activitie s carrie d o n unde r its ae gis
As h as be e n sugge ste d e arlie r in th is pape r, many co mpany h is-
to rie s are pro duce d with th e co mme mo ratio n o f asignif icant an-
nive rsary in mind. Our o wn study, f o r e xample , was writte n as
part o f ase rie s o f pro je cts and activitie s asso ciate d with De lta's
f if tie th annive rsary as apasse nge r carrie r. In such acase th e au-
th o rs may f o rmally agre e to do e ve ryth ing po ssible to h ave th e
bo o k in print by agive n de adline , and th e co mpany o n its part
74 * T HE PUBLICHIST ORIAN
will co mmit itse lf to do ing e ve ryth ing po ssible to f acilitate th is.
T h e impo rtance o f ade quate le ad time in th is re gard is, o f co urse ,
o bvio us; in o ur o wn case , th e pro ce ss o f re se arch , writing, and
publicatio n, pe rf o rme d alo ng with te ach ing and o th e r re spo n-
sibilitie s at Auburn Unive rsity, to o k appro ximate ly six ye ars.
Finally, alth o ugh th is may no t be ne ce ssary in all case s, th e
auth o rs and th e co mpany sh o uld re ach a pre liminary unde r-
standing co nce rning th e style in wh ich th e h isto ry is to be writ-
te n. In o ur case De ltade sire d a bo o k th at co uld be re ad with
inte re st and ple asure by a no nacade mic audie nce , with o ut im-
pairing its sch o larly value . We th e re f o re co mmitte d o urse lve s to a
style o f writing co nsiste nt with th is aim. It may be de sirable also
to spe cif y th e appro ximate le ngth o f th e bo o k th at is ultimate ly
de sire d, making due allo wance f o r th e impo nde rable s th at ine v-
itably e xist be f o re th e actual pro ce ss o f re se arch is carrie d o ut. In
any case , th e co mpany sh o uld agre e th at acce ss to its re co rds
prio r to th e agre e d-upo n cut-o f f date will be unre stricte d, and
th at it will do e ve ryth ing po ssible to lo cate and make all such
re co rds available .
Writing a co rpo rate h isto ry o f th e type de scribe d h e re is an
arduo us and de manding pro je ct, re quiring th e h igh e st de dicatio n
and be st e f f o rts o n th e part o f e ve rybo dy co nce rne d. In o ur e xpe -
rie nce , h o we ve r, it h as be e n apro ce ss f ull o f pe rso nal and pro f e s-
sio nal satisf actio ns. We live in a so cie ty in wh ich mo st pe o ple
spe nd alarge pro po rtio n o f th e ir live s wo rking f o r o rganizatio ns
o f o ne so rt o r ano th e r, with busine ss co rpo ratio ns co mprising a
ve ry h igh pe rce ntage o f th e to tal. Fo r th is re aso n alo ne , in addi-
tio n to th e o ve rwh e lming impo rtance o f th e co rpo ratio n in
Ame rican so cie ty, th e sto ry o f th e se crucial e ntitie s de se rve s to be
to ld, and to ld we ll. T h is pape r will h ave se rve d its purpo se if it
h e lps f acilitate th at aim.