A $500 Million Mistake
September 26, 1964
On the first of July American Telephone and Telegraph, the largest business on earth, announced new records in net income ($x.6 billion) earned over the year ending May 31. In issuing this cheerful news the head officer of the company took time out to mention a small cloud across the rainbow. Three weeks before, on June 11, the California Public Utilities Commission had ordered a sharp reduction in the future profits of the company’s subsidiary in that state.