Word: telexing
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Dates: during 1970-1979
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...Tulsa's federal court last week could make much sense of the proceedings. Even Presiding Judge A. Sherman Christensen seemed more than a little confused. Less than a month after finding International Business Machines Corp. in violation of antitrust statutes and ordering it to pay its struggling rival, Telex Corp., a record $352.5 million in damages (TIME, Oct. 1), Christensen developed second thoughts and sent the whole complex legal wrangle almost back to Square 1. Before the week was over, he changed course again and announced that he might be able soon to make a conclusion on the case...
Admitting the difficulty of arriving at precise damages, Christensen found that Telex had lost $47.5 million in potential profits on equipment that the smaller firm was forced to underprice as a result of IBM's "predatory" marketing practices. He also decided that Telex was due another $70 million in possible earnings on equipment that it might have sold but for the same practices. Following standard antitrust law, the judge then trebled the $117.5 million total, to the final award of $352.5 million. The actual damages calculated by the court, Cary claimed, assume that Telex would have increased its earnings...
...award produced a highly unusual growth rate indeed for Telex-in one fell swoop it nearly tripled the company's total assets. Roger M. Wheeler, 47, the normally quiet, gray-suited chairman of Telex and the man primarily responsible for pressing the first successful antitrust suit ever decided against IBM, was jubilant. "The award is a great thing for us, but it is also a great thing for the industry," said Wheeler. "The customers will ultimately benefit because it will make for better products and better price performance." The company, of course, will not collect its sudden bonanza while...
...court found that Telex was far from blameless in its own business practices. In a countersuit, IBM was awarded $21.9 million for losses suffered in the theft of computer secrets by Telex, which was forbidden for the next two years to hire ex-IBM employees without court approval. Yet IBM, whose mighty stock shot down 38% points to 259½ in the two trading days following the decision's announcement, had experienced a rare defeat that might grow even more serious in months to come...
...thing, other small peripheral manufacturers are expected to follow the Telex lead and file suit for their own alleged antitrust damages. For another, the decision may give impetus to a four-year-old Justice Department suit that has charged IBM with monopolizing the entire basic computer market...