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Pacific Bell

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Pacific Bell

The Pacific Bell Telephone Company (Pac Bell) doing business as AT&T California is a telephone company that provides telephone service in California. The company is owned by AT&T through AT&T Teleholdings, and, though separate, is now marketed as “AT&T”. The company has been known by a number of names during which its service area has changed. The formal name of the company from the 1910s through the 1984 Bell System divestiture was The Pacific Telephone and Telegraph Company. The “Pacific Bell” was phased out of public use in 2002, although it remains the legal name of AT&T's local operating company in California and is still the holder of record for the infrastructure of cables and fiber through much of California.

The Pacific Telephone and Telegraph Company, or "PacTel" for short, managed the Bell System's telephone operations in California. It grew by acquiring smaller telephone companies along the Pacific coast. It built and occupied San Francisco's Pacific Telephone Building on New Montgomery Street which has been described as a "monument to western progress and foresight".

During the San Francisco graft trials, the company was implicated in paying bribes to obtain an operations franchise in San Francisco. Theodore Halsey, a confidential political agent for the Pacific States Telephone and Telegraph Company, paid attorney Abe Ruef a retainer of $1,250 a month for "advice" on municipal issues. Ruef was the political boss behind S.F. Mayor Eugene Schmitz. In 1906, San Francisco was one of the most promising places for investment in all of the United States. Many companies were vying for a piece of the money to be made. The city's supervisors had run on a platform that included the city acquiring its own telephone system which both Home Telephone Company and Pacific States Telephone and Telegraph Company wanted to prevent. The Home Telephone Company, financed by investors from Southern California and Ohio, was trying to wrest the telephone franchise held exclusively by Pacific States Telephone and Telegraph Company in Northern California.

After the massive earthquake of 1906, the Home Telephone Company contributed $75,000 to a relief fund for the city, but asked that it be held until their franchise was approved. It was later revealed that the city's supervisors had received payoffs through Ruef from both the Home Telephone Company and Pacific States Telephone Co. Home Telephone paid 10 supervisors $3,500 each and seven supervisors $6,000 each (about $130000 to $210,000 in 2025). Pacific States Telephone Co. paid 10 supervisors $5,000 each ($180000 in 2025). After the graft prosecutions, E.F. Pillsbury, General Counsel for the telephone company, revealed that he had never heard of Ruef's employment, and would have objected to Ruef receiving compensation greater than his own $1,000 per month.

During the first part of the 20th century, Pacific Telephone & Telegraph, along with the rest of the Bell System, initially resisted automating its services, on the premise that their people could provide better service than machines. When it acquired competing providers, if the company provided automatic dial service, Bell removed the automatic equipment and replaced it with manual telephones and manual operator switchboards. The company soon realized its best manual systems were unable to keep up with the growing demand for telephone service. In the early 1920s, following the 1921 installation of the nation's first large panel switch in Omaha, the Bell operating companies began to install automated switching equipment.

Los Angeles and San Francisco employed different approaches for adopting new automatic switching technology. The Los Angeles Telephone Co. had merged with the Sunset Telephone Co. of northern California in 1883. Sunset was subsequently acquired by Pacific Telephone & Telegraph Co. in 1906. Following the purchase by PacTel, the southern California company remained a separate operation and used the Sunset name.

The Los Angeles area was also served by a competitor, The Home Telephone Co., which began offering automatic (dial) service in 1902. The Sunset Telephone Co. subscribers were able to make local and long-distance calls via the Bell System, but Home Telephone Co. customers could make only local calls to other Home customers. To reach both exchanges, businesses were required to pay for a line from each company. In 1916, under pressure from local politicians and subscribers, Sunset Telephone Co. agreed to acquire the Home Company's operations. The new entity was called The Southern California Telephone Co. The two companies' operations were fully integrated in 1918.

At the time of the 1918 merger, Home had 60,000 customers served from 16 dial offices. Sunset had 68,000 subscribers served from nine manual offices. Home's operations were sizable and the public felt Home provided better service than Sunset, so Pacific Telephone didn't convert the dial offices to manual as it had in the past. Instead, they took the highly unusual step of adding a dial and trunk lines to every manual switchboard position. In this way, former Sunset customers could reach the former Home subscribers via their central office operator.

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