1
00:00:06,040 --> 00:00:08,409
*

2
00:01:27,355 --> 00:01:29,523
*

3
00:02:27,181 --> 00:02:30,784
They look like
any American family.

4
00:02:30,818 --> 00:02:33,621
To the eye,
nothing seems out of place.

5
00:02:33,654 --> 00:02:35,956
They appear typical
by all accounts

6
00:02:35,989 --> 00:02:39,593
for a family living in
post-World War II America.

7
00:02:39,627 --> 00:02:42,230
An economic boom
was in progress,

8
00:02:42,263 --> 00:02:45,666
and the horizon is filled
with opportunity.

9
00:02:45,699 --> 00:02:47,535
The mood was different, then.

10
00:02:47,568 --> 00:02:51,272
Very different from the mood
in America today.

11
00:02:52,940 --> 00:02:54,174
With the recent collapse

12
00:02:54,208 --> 00:02:56,176
of the American
banking system,

13
00:02:56,210 --> 00:02:58,579
and the stunning fracture
of Wall Street,

14
00:02:58,612 --> 00:03:03,251
America, as we know it,
has been changed forever.

15
00:03:03,284 --> 00:03:06,454
Only one other time
has America experienced

16
00:03:06,487 --> 00:03:09,923
a financial catastrophe
of such magnitude.

17
00:03:09,957 --> 00:03:12,760
The Wall Street crash
in 1929

18
00:03:12,793 --> 00:03:15,363
was the most devastating
economic upheaval

19
00:03:15,396 --> 00:03:17,565
in American history.

20
00:03:17,598 --> 00:03:21,302
The parallels between
the crash of 1929

21
00:03:21,335 --> 00:03:24,405
and the recent
economic emergency
in America

22
00:03:24,438 --> 00:03:26,307
are chilling.

23
00:03:27,675 --> 00:03:29,543
In both instances,

24
00:03:29,577 --> 00:03:32,580
massive speculation
gave license to those

25
00:03:32,613 --> 00:03:34,748
who would take advantage
of a system,

26
00:03:34,782 --> 00:03:36,484
flawed from the outset,

27
00:03:36,517 --> 00:03:39,920
and permissive
to a fault.

28
00:03:39,953 --> 00:03:43,156
The tragic irony of
the recent financial collapse

29
00:03:43,190 --> 00:03:46,627
is that our companies, banks,
and financial institutions

30
00:03:46,660 --> 00:03:48,729
operated, for the most part,

31
00:03:48,762 --> 00:03:52,300
within the framework
of the law.

32
00:03:52,333 --> 00:03:54,101
So, who is responsible

33
00:03:54,134 --> 00:03:57,070
when so many
are so badly damaged?

34
00:03:57,104 --> 00:03:59,840
Where are the checks
and balances?

35
00:03:59,873 --> 00:04:01,875
Where is accountability,

36
00:04:01,909 --> 00:04:05,012
when corporations,
institutions, and governments

37
00:04:05,045 --> 00:04:07,114
are self

38
00:04:07,147 --> 00:04:09,216
In the mid-1960s,

39
00:04:09,249 --> 00:04:11,118
with the shifting
social climate,

40
00:04:11,151 --> 00:04:15,088
a new concept is introduced
into the business mainstream:

41
00:04:15,122 --> 00:04:18,158
Corporate social
responsibility.

42
00:04:18,191 --> 00:04:20,994
CSR is defined as:

43
00:04:21,028 --> 00:04:23,364
"economic, legal, ethical"

44
00:04:23,397 --> 00:04:25,766
"and discretionary
expectations"

45
00:04:25,799 --> 00:04:28,736
"which society has
of its corporations"

46
00:04:28,769 --> 00:04:32,139
"and institutions
at any given point in time."

47
00:04:33,073 --> 00:04:34,875
It sounds reasonable.

48
00:04:34,908 --> 00:04:38,011
However,
this concept presupposes

49
00:04:38,045 --> 00:04:40,981
society has sway
with big corporations

50
00:04:41,014 --> 00:04:42,716
and big institutions.

51
00:04:42,750 --> 00:04:44,818
It's rarely the case,

52
00:04:44,852 --> 00:04:46,820
and it begs the question:

53
00:04:46,854 --> 00:04:49,022
Is it realistic
for society

54
00:04:49,056 --> 00:04:51,825
to have such moral expectations
of business,

55
00:04:51,859 --> 00:04:55,629
where ethics and discretion
are concerned?

56
00:04:55,663 --> 00:04:59,266
With government deregulation
during the past three decades,

57
00:04:59,299 --> 00:05:01,001
and the freedoms
the government granted

58
00:05:01,034 --> 00:05:04,204
to American banks
and financial institutions,

59
00:05:04,237 --> 00:05:08,642
over-speculation
and dangerously creative
investment platforms

60
00:05:08,676 --> 00:05:10,678
have proved one thing:

61
00:05:10,711 --> 00:05:12,946
"Corporate Social
Responsibility"

62
00:05:12,980 --> 00:05:15,783
appears to have become
a well-meaning proposition

63
00:05:15,816 --> 00:05:17,317
with little traction,

64
00:05:17,351 --> 00:05:19,587
while big stakeholders
and corporations

65
00:05:19,620 --> 00:05:21,855
helm the economy.

66
00:05:21,889 --> 00:05:23,491
*

67
00:05:23,524 --> 00:05:25,693
If social responsibility
ought to apply

68
00:05:25,726 --> 00:05:28,061
to corporations
and institutions,

69
00:05:28,095 --> 00:05:31,665
should it not also apply
to government?

70
00:05:31,699 --> 00:05:35,536
After all, government
sanctions the way
business works.

71
00:05:35,569 --> 00:05:38,506
Government makes the rules
and creates the laws

72
00:05:38,539 --> 00:05:40,073
in our society.

73
00:05:40,107 --> 00:05:44,578
So why not "government
social responsibility?"

74
00:05:44,612 --> 00:05:46,547
One thing is clear:

75
00:05:46,580 --> 00:05:50,350
The application of
corporate social
responsibility

76
00:05:50,384 --> 00:05:53,220
is no burden
to success,

77
00:05:53,253 --> 00:05:56,089
because to corporations,
to Wall Street,

78
00:05:56,123 --> 00:06:00,027
to the banking system,
it simply does not exist.

79
00:06:00,060 --> 00:06:01,729
Greed rules.

80
00:06:11,304 --> 00:06:14,007
1947, Florida.

81
00:06:14,041 --> 00:06:15,709
The Shaw family
is living a life

82
00:06:15,743 --> 00:06:18,946
not unlike any other
typical American family.

83
00:06:18,979 --> 00:06:21,582
Walter Shaw is bright,
talented,

84
00:06:21,615 --> 00:06:23,751
a man with
a promising future.

85
00:06:23,784 --> 00:06:27,220
The war is over,
and everyone is back to work.

86
00:06:27,254 --> 00:06:30,624
And a young man,
fresh off a Navy patrol boat,

87
00:06:30,658 --> 00:06:33,627
is being groomed
for political office.

88
00:06:33,661 --> 00:06:36,329
John Fitzgerald Kennedy's
father, Joseph,

89
00:06:36,363 --> 00:06:38,932
is a fiercely ambitious man.

90
00:06:38,966 --> 00:06:40,601
In the 1920s,

91
00:06:40,634 --> 00:06:42,936
he amasses
most of his family fortune

92
00:06:42,970 --> 00:06:44,304
in the stock market,

93
00:06:44,337 --> 00:06:46,474
and he manages
to exit the market

94
00:06:46,507 --> 00:06:48,809
just before its fall.

95
00:06:48,842 --> 00:06:50,177
A few years later,

96
00:06:50,210 --> 00:06:51,979
Kennedy is alleged
to have traded

97
00:06:52,012 --> 00:06:54,982
in bootleg liquor
during the Prohibition era.

98
00:06:55,015 --> 00:06:57,050
If nothing else,
it may be said

99
00:06:57,084 --> 00:07:00,654
Kennedy has a knack
for good timing.

100
00:07:00,688 --> 00:07:02,255
In 1934,

101
00:07:02,289 --> 00:07:06,426
Joe Kennedy becomes chairman
of the Securities and Exchange
Commission,

102
00:07:06,460 --> 00:07:08,662
where he outlaws
insider trading

103
00:07:08,696 --> 00:07:10,598
and stock manipulation;

104
00:07:10,631 --> 00:07:12,432
the very practice
which was rumored

105
00:07:12,466 --> 00:07:14,434
to have made his,
and many of his friends,

106
00:07:14,468 --> 00:07:15,836
their fortunes.

107
00:07:15,869 --> 00:07:19,106
But his ambitions
were not only for wealth.

108
00:07:19,139 --> 00:07:21,842
Power was the real prize.

109
00:07:21,875 --> 00:07:24,177
*

110
00:07:24,211 --> 00:07:26,780
Using his considerable
wealth and influence,

111
00:07:26,814 --> 00:07:27,848
he aides his son

112
00:07:27,881 --> 00:07:30,317
in a bid for a seat
in Congress.

113
00:07:30,350 --> 00:07:33,353
John F. Kennedy is elected
to the 80th Congress

114
00:07:33,386 --> 00:07:37,190
January 3, 1947,
while his brother, Robert,

115
00:07:37,224 --> 00:07:39,359
attends law school.

116
00:07:39,392 --> 00:07:42,195
In a surprising twist of fate,

117
00:07:42,229 --> 00:07:46,700
the Kennedys and the Shaws
will soon cross paths,

118
00:07:46,734 --> 00:07:49,970
and it will change their lives
forever.

119
00:07:50,003 --> 00:07:54,107
Walter Shaw, breadwinner,
with a grade nine education,

120
00:07:54,141 --> 00:07:57,344
works for the largest
corporate monopoly in America,

121
00:07:57,377 --> 00:07:59,613
Bell Telephone,

122
00:07:59,647 --> 00:08:01,849
while Betty Lou,
a stay-at-home mother,

123
00:08:01,882 --> 00:08:03,884
raises their children.

124
00:08:03,917 --> 00:08:06,587
Daughter, Linda,
attends middle school.

125
00:08:06,620 --> 00:08:10,190
New baby brother, Thiel,
is just born.

126
00:08:11,859 --> 00:08:14,394
My dad was still
at Bell Labs

127
00:08:14,427 --> 00:08:17,665
when I was born
in '48.

128
00:08:17,698 --> 00:08:20,333
Matter of fact,
I was born the year

129
00:08:20,367 --> 00:08:22,302
the inven-
the-the speaker phone

130
00:08:22,335 --> 00:08:23,971
was invented.

131
00:08:24,004 --> 00:08:25,706
Walter Shaw
has been a lineman

132
00:08:25,739 --> 00:08:28,341
for AT&T's
Bell Telephone company

133
00:08:28,375 --> 00:08:30,510
since 1935.

134
00:08:30,544 --> 00:08:33,914
He is paid a base salary,
with bumps in pay

135
00:08:33,947 --> 00:08:37,250
based on how many feet of line
he could lay.

136
00:08:37,284 --> 00:08:40,353
In other words,
he is paid by the foot.

137
00:08:40,387 --> 00:08:44,758
My earliest memories of-
was Dad working for Bell Labs.

138
00:08:44,792 --> 00:08:46,627
Uh, working-
Well, he started out...

139
00:08:46,660 --> 00:08:49,096
He was a, uh, pole climber.

140
00:08:49,129 --> 00:08:52,165
But, uh, early on, he...

141
00:08:52,199 --> 00:08:54,401
He, ah, I would find him...

142
00:08:54,434 --> 00:08:56,804
...tinkering with projects.

143
00:08:56,837 --> 00:08:58,405
And he loved electronics.

144
00:08:58,438 --> 00:09:00,240
It was a natural love.

145
00:09:00,273 --> 00:09:01,709
Bell would soon learn

146
00:09:01,742 --> 00:09:04,377
that Shaw is capable
of much more.

147
00:09:04,411 --> 00:09:06,479
He studies
at Bell's engineering school,

148
00:09:06,513 --> 00:09:08,548
where they discover
he has an aptitude

149
00:09:08,582 --> 00:09:10,150
for calculus.

150
00:09:10,183 --> 00:09:11,819
He becomes an engineer

151
00:09:11,852 --> 00:09:13,787
in the research
and development division

152
00:09:13,821 --> 00:09:15,522
of Bell Laboratories,

153
00:09:15,555 --> 00:09:20,594
the technology research
and development division
of AT&T.

154
00:09:20,628 --> 00:09:25,265
It's no secret that Bell
is the only telephone company
in America.

155
00:09:25,298 --> 00:09:28,068
It was designed that way.

156
00:09:28,101 --> 00:09:31,438
Bell Telephone began
in 1877,

157
00:09:31,471 --> 00:09:34,141
with inventor
Alexander Graham Bell.

158
00:09:34,174 --> 00:09:35,976
Bell succeeded
with his invention

159
00:09:36,009 --> 00:09:40,881
and secured the patents
in 1876 and 1877.

160
00:09:40,914 --> 00:09:42,816
The patents were
a contentious issue,

161
00:09:42,850 --> 00:09:45,185
when many rivals
challenged Bell's right

162
00:09:45,218 --> 00:09:46,386
to the invention.

163
00:09:47,287 --> 00:09:49,522
During the 17 years
in which Bell

164
00:09:49,556 --> 00:09:51,358
held the telephone patent,

165
00:09:51,391 --> 00:09:54,995
he faced no less
than 600 lawsuits.

166
00:09:55,829 --> 00:09:58,031
Once Bell's patent expired,

167
00:09:58,065 --> 00:09:59,166
tens of thousands

168
00:09:59,199 --> 00:10:00,768
of independent
telephone companies

169
00:10:00,801 --> 00:10:02,836
sprung up across America.

170
00:10:04,171 --> 00:10:06,606
Surprisingly
to the Bell system,

171
00:10:06,640 --> 00:10:07,841
they were serving the areas

172
00:10:07,875 --> 00:10:09,943
that Bell
had basically ignored.

173
00:10:09,977 --> 00:10:13,480
So Bell started in Boston
and kind of slowly spread

174
00:10:13,513 --> 00:10:16,583
from the Northeast
to the rest of the country.

175
00:10:16,616 --> 00:10:19,586
And the independent movement
started in the Midwest,

176
00:10:19,619 --> 00:10:21,655
or what, at the time,
they called the West,

177
00:10:21,689 --> 00:10:25,158
places like Ohio, Indiana,
and Illinois,

178
00:10:25,192 --> 00:10:28,095
and, ah, tried to spread
into the big cities.

179
00:10:28,128 --> 00:10:32,700
And so, these companies
achieved astounding levels

180
00:10:32,733 --> 00:10:34,835
of telephone penetration.

181
00:10:34,868 --> 00:10:38,271
The telephone business
suddenly exploded,

182
00:10:38,305 --> 00:10:41,208
but the thousands of new,
competing telephone companies

183
00:10:41,241 --> 00:10:44,377
produced a new set of problems
for Bell.

184
00:10:44,411 --> 00:10:46,446
They had, indeed,
underdeveloped the country,

185
00:10:46,479 --> 00:10:49,282
so they entered a race
with the independents

186
00:10:49,316 --> 00:10:52,152
to build out
the rest of the country.

187
00:10:52,185 --> 00:10:53,987
That was
reasonably successfully,

188
00:10:54,021 --> 00:10:55,856
and again, it was very good
for the consumer

189
00:10:55,889 --> 00:10:58,425
because, ah, it spread
telephone service further

190
00:10:58,458 --> 00:10:59,760
and further
into the country,

191
00:10:59,793 --> 00:11:02,562
and deeper and deeper
into the cities.

192
00:11:02,595 --> 00:11:04,664
And they lowered
their prices.

193
00:11:04,698 --> 00:11:06,233
Uh, but the next thing
they did,

194
00:11:06,266 --> 00:11:09,002
was they realized
that they were not going to

195
00:11:09,036 --> 00:11:13,206
out-compete the independents
in most of these places.

196
00:11:13,240 --> 00:11:14,374
As a young man,

197
00:11:14,407 --> 00:11:17,845
Theodore Vail goes to work
for a telegraph company.

198
00:11:17,878 --> 00:11:18,879
That decision

199
00:11:18,912 --> 00:11:22,482
will change the course
of American history.

200
00:11:22,515 --> 00:11:25,018
Vail meets a man
named Gardiner Hubbard,

201
00:11:25,052 --> 00:11:27,755
Alexander Graham Bell's
father-in-law.

202
00:11:27,788 --> 00:11:30,523
Hubbard hire Vail
to run his new company,

203
00:11:30,557 --> 00:11:33,526
called
American Bell Telephone.

204
00:11:33,560 --> 00:11:35,929
By 1907,
J.P. Morgan,

205
00:11:35,963 --> 00:11:37,965
with London and
New York backers,

206
00:11:37,998 --> 00:11:40,033
are in a state of panic.

207
00:11:40,067 --> 00:11:43,771
Bell Telephone is suffering
from a poor public image,

208
00:11:43,804 --> 00:11:45,238
low staff morale,

209
00:11:45,272 --> 00:11:46,506
poor service,

210
00:11:46,539 --> 00:11:49,777
and serious debt
and technological problems.

211
00:11:49,810 --> 00:11:52,379
Vail had left the company
by this time,

212
00:11:52,412 --> 00:11:54,081
but he is brought back.

213
00:11:54,114 --> 00:11:56,784
Vail was very surprised
at how Bell

214
00:11:56,817 --> 00:11:58,585
was basically losing
this struggle,

215
00:11:58,618 --> 00:12:01,721
or, at least,
not assured of winning it.

216
00:12:01,755 --> 00:12:04,792
So, Vail was brought back
in 1907,

217
00:12:04,825 --> 00:12:07,761
um, by some of
the Morgan interests

218
00:12:07,795 --> 00:12:12,532
who injected capital
into the AT&T,

219
00:12:12,565 --> 00:12:15,803
and he, again, said

220
00:12:15,836 --> 00:12:18,571
we need to rethink this whole
business of competition

221
00:12:18,605 --> 00:12:20,073
in telephony.

222
00:12:20,107 --> 00:12:23,510
We need to move towards
what he called

223
00:12:23,543 --> 00:12:27,647
"One system, one policy,
universal service."

224
00:12:27,680 --> 00:12:30,017
And by that, Vail meant

225
00:12:30,050 --> 00:12:32,285
uh, fundamentally,
a monopoly,

226
00:12:32,319 --> 00:12:34,888
a regulated
telephone monopoly

227
00:12:34,922 --> 00:12:38,358
in which the independents,
uh, they'd be allowed to exist

228
00:12:38,391 --> 00:12:39,726
on the margins,

229
00:12:39,759 --> 00:12:41,995
but they would be
no competition

230
00:12:42,029 --> 00:12:43,997
at the local exchange level,

231
00:12:44,031 --> 00:12:45,498
and all of these
phone companies

232
00:12:45,532 --> 00:12:47,034
would be interconnected,

233
00:12:47,067 --> 00:12:50,137
and Bell would fundamentally
control the interconnections

234
00:12:50,170 --> 00:12:51,238
among all of these systems.

235
00:12:51,271 --> 00:12:52,806
They would
be the ones

236
00:12:52,840 --> 00:12:54,307
who really were
the gatekeepers

237
00:12:54,341 --> 00:12:57,978
for the national flow
of telephone traffic.

238
00:12:58,011 --> 00:12:59,679
And in order
to achieve this monopoly,

239
00:12:59,712 --> 00:13:03,716
Vail said, basically,
"Let's make a deal
to the government."

240
00:13:03,750 --> 00:13:05,819
Theodore Vail convinces

241
00:13:05,853 --> 00:13:08,621
President Woodrow Wilson,
and Congress,

242
00:13:08,655 --> 00:13:11,358
that no collection
of independent companies

243
00:13:11,391 --> 00:13:14,194
could ever give the public
the kind of service

244
00:13:14,227 --> 00:13:15,963
Bell could provide.

245
00:13:15,996 --> 00:13:18,298
AT&T's extensive campaign

246
00:13:18,331 --> 00:13:22,035
for One Policy, One System,
Universal Service

247
00:13:22,069 --> 00:13:25,538
was a thinly veiled front
for complete control

248
00:13:25,572 --> 00:13:28,808
of the telephone system
under one roof.

249
00:13:28,842 --> 00:13:31,344
It is a goal
which is only achievable

250
00:13:31,378 --> 00:13:33,914
with government intervention.

251
00:13:33,947 --> 00:13:35,883
Vail knows the public
will never go

252
00:13:35,916 --> 00:13:37,317
for a Bell monopoly,

253
00:13:37,350 --> 00:13:40,353
so he invites
government regulation.

254
00:13:40,387 --> 00:13:42,990
He knows this will
annihilate competitors.

255
00:13:43,023 --> 00:13:45,492
He will not only
get his monopoly,

256
00:13:45,525 --> 00:13:48,195
he will get
monopoly profits.

257
00:13:48,228 --> 00:13:52,265
Congress passes
the Kingsbury Commitment
in 1913,

258
00:13:52,299 --> 00:13:55,502
which will weed out
most competitors to Bell.

259
00:13:55,535 --> 00:13:58,038
AT&T Long Lines
was responsible

260
00:13:58,071 --> 00:14:00,407
for interconnecting
all these companies.

261
00:14:00,440 --> 00:14:05,578
Therefore, AT&T controlled
all the little monopolies

262
00:14:05,612 --> 00:14:09,082
that were sanctioned by
the Kingsbury Commitment.

263
00:14:09,116 --> 00:14:10,817
While the act
had been intended

264
00:14:10,850 --> 00:14:12,585
to stimulate competition,

265
00:14:12,619 --> 00:14:15,755
instead, it has
the opposite effect.

266
00:14:15,788 --> 00:14:19,159
Theodore Vail writes
in the AT&T annual report

267
00:14:19,192 --> 00:14:22,896
that government regulation,
provided it is independent,

268
00:14:22,930 --> 00:14:26,333
intelligent, considerate,
thorough, and just,

269
00:14:26,366 --> 00:14:30,470
was an acceptable substitute
for a competitive marketplace.

270
00:14:30,503 --> 00:14:32,205
Vail convinces Congress

271
00:14:32,239 --> 00:14:34,942
that the telephone
is a natural monopoly.

272
00:14:34,975 --> 00:14:36,443
The whole theory
of natural monopoly

273
00:14:36,476 --> 00:14:40,213
didn't really apply properly
to the telephone industry.

274
00:14:40,247 --> 00:14:42,649
Nevertheless, uh...

275
00:14:43,917 --> 00:14:46,920
It was rationalized,
after the fact,

276
00:14:46,954 --> 00:14:48,621
as a natural monopoly,

277
00:14:48,655 --> 00:14:51,758
and for about forty years,
you know, utility economists

278
00:14:51,791 --> 00:14:53,927
would sort of say,
oh, of course it's a monopoly,

279
00:14:53,961 --> 00:14:56,930
it's a natural monopoly
under natural monopoly theory,

280
00:14:56,964 --> 00:14:58,198
but if you looked
at the the theory,

281
00:14:58,231 --> 00:14:59,832
and you looked
at the actual economics

282
00:14:59,866 --> 00:15:01,334
of the telephone,

283
00:15:01,368 --> 00:15:02,302
it wasn't.

284
00:15:02,335 --> 00:15:03,636
There was no correlation

285
00:15:03,670 --> 00:15:06,773
between the economics
of the telephone exchange

286
00:15:06,806 --> 00:15:09,876
and the natural monopoly
theory.

287
00:15:09,909 --> 00:15:11,211
Congress passes an act

288
00:15:11,244 --> 00:15:12,345
which seals the fate

289
00:15:12,379 --> 00:15:14,447
of all independent
telephone companies

290
00:15:14,481 --> 00:15:15,748
in America.

291
00:15:15,782 --> 00:15:17,350
After World War I,

292
00:15:17,384 --> 00:15:19,786
people at the federal level
in particular,

293
00:15:19,819 --> 00:15:22,555
as part of the sort of
the progressive viewpoint

294
00:15:22,589 --> 00:15:24,391
of the time,
were convinced

295
00:15:24,424 --> 00:15:27,360
that we needed this
regulated monopoly system,

296
00:15:27,394 --> 00:15:30,964
and then they passed
the Willis-Graham Act in 1921,

297
00:15:30,998 --> 00:15:34,401
which basically legitimized
telephone monopoly.

298
00:15:34,434 --> 00:15:37,037
It said you're exempt
from the anti-trust laws.

299
00:15:37,070 --> 00:15:38,805
Uh, it doesn't matter
if you're a monopoly,

300
00:15:38,838 --> 00:15:40,540
we're not
going to prosecute you.

301
00:15:40,573 --> 00:15:42,342
We, in fact, want you
to be a monopoly.

302
00:15:42,375 --> 00:15:43,543
*

303
00:15:43,576 --> 00:15:46,013
Once the phone system
is nationalized,

304
00:15:46,046 --> 00:15:50,017
AT&T wastes no time in
applying for rate increases.

305
00:15:50,050 --> 00:15:53,453
Within five and a half months,
long distance rates increase

306
00:15:53,486 --> 00:15:54,921
by twenty percent.

307
00:15:54,954 --> 00:15:57,757
AT&T makes over
fifty million dollars

308
00:15:57,790 --> 00:16:00,327
in just seven months.

309
00:16:00,360 --> 00:16:02,962
AT&T, American Telephone
and Telegraph,

310
00:16:02,996 --> 00:16:06,633
was the parent company
of four different companies.

311
00:16:06,666 --> 00:16:08,868
One was the Bell
operating companies

312
00:16:08,901 --> 00:16:11,538
that would put in the lines
to everybody's homes

313
00:16:11,571 --> 00:16:12,705
and businesses.

314
00:16:12,739 --> 00:16:14,774
There was AT&T Long Lines,

315
00:16:14,807 --> 00:16:17,844
who interconnected
those various exchange areas,

316
00:16:17,877 --> 00:16:19,979
and then there was
Western Electric,

317
00:16:20,013 --> 00:16:22,615
who manufactured the equipment
for AT&T,

318
00:16:22,649 --> 00:16:23,916
and then Bell Labs,

319
00:16:23,950 --> 00:16:25,885
who was the research
and development arm

320
00:16:25,918 --> 00:16:27,387
for AT&T.

321
00:16:27,420 --> 00:16:31,724
Bell telephone had a...
a-a-a tariff that said

322
00:16:31,758 --> 00:16:33,226
you could not hook up
the Bell lines,

323
00:16:33,260 --> 00:16:34,861
you can't find it
in the books anymore,

324
00:16:34,894 --> 00:16:38,031
Bell lines without
their explicit permission.

325
00:16:38,065 --> 00:16:39,666
And they were emphatic
about that.

326
00:16:39,699 --> 00:16:42,702
If anyone uses
a telephone line in America,

327
00:16:42,735 --> 00:16:45,238
it belongs to Bell.

328
00:16:45,272 --> 00:16:46,873
Three decades later,

329
00:16:46,906 --> 00:16:50,043
Walter Shaw,
while working at Bell Labs,

330
00:16:50,077 --> 00:16:53,946
will challenge Bell's
universal process.

331
00:16:53,980 --> 00:16:55,848
He has a secret.

332
00:16:55,882 --> 00:16:58,285
When he returns home
each night,

333
00:16:58,318 --> 00:16:59,752
he draws.

334
00:16:59,786 --> 00:17:02,555
Not landscapes
or portraits,

335
00:17:02,589 --> 00:17:06,193
he draws schematic diagrams
of inventions

336
00:17:06,226 --> 00:17:07,827
he plans to build.

337
00:17:08,795 --> 00:17:10,697
Later, he will go
to his office

338
00:17:10,730 --> 00:17:12,732
with his home projects
under his arm

339
00:17:12,765 --> 00:17:15,235
to impress his bosses.

340
00:17:15,268 --> 00:17:17,036
And they are impressed.

341
00:17:28,148 --> 00:17:31,751
Bell Labs was created
in 1925

342
00:17:31,784 --> 00:17:34,921
to service
research and development
technology

343
00:17:34,954 --> 00:17:36,689
for AT&T.

344
00:17:36,723 --> 00:17:39,992
Bell will not only provide
communication services

345
00:17:40,026 --> 00:17:41,128
to America,

346
00:17:41,161 --> 00:17:43,563
but it will become
one of the leading innovators

347
00:17:43,596 --> 00:17:47,900
in science, technology,
and military engineering

348
00:17:47,934 --> 00:17:49,802
around the world.

349
00:17:49,836 --> 00:17:51,971
Bell Labs provides
key personnel

350
00:17:52,004 --> 00:17:55,308
in all areas
of communications science,

351
00:17:55,342 --> 00:17:57,877
radar,
and weapons technology.

352
00:17:57,910 --> 00:18:01,314
And they provide
the scientists and engineers

353
00:18:01,348 --> 00:18:02,415
responsible, in part,

354
00:18:02,449 --> 00:18:05,852
for the development
of the atomic bomb.

355
00:18:05,885 --> 00:18:07,987
It would not be
an overstatement

356
00:18:08,020 --> 00:18:10,490
to say that Bell Labs
became the darling

357
00:18:10,523 --> 00:18:12,659
of the U.S.
Defense Department.

358
00:18:13,960 --> 00:18:16,829
While at home working
on one of his drawings,

359
00:18:16,863 --> 00:18:19,399
Walter Shaw invents
the first ever

360
00:18:19,432 --> 00:18:21,834
voice-activated
speaker phone.

361
00:18:21,868 --> 00:18:24,137
He doesn't show Bell
right away.

362
00:18:24,171 --> 00:18:28,941
Instead, he actually builds
the prototype himself.

363
00:18:28,975 --> 00:18:31,678
Meanwhile, Bell promotes Shaw
to the position

364
00:18:31,711 --> 00:18:34,147
of senior engineer.

365
00:18:34,181 --> 00:18:36,183
What Walter Shaw
will soon learn

366
00:18:36,216 --> 00:18:37,850
is that the
U.S. Attorney General

367
00:18:37,884 --> 00:18:40,320
under President Truman
has filed a lawsuit

368
00:18:40,353 --> 00:18:44,291
against his employer
for anti-trust violations.

369
00:18:44,324 --> 00:18:46,193
What was happening
at that time

370
00:18:46,226 --> 00:18:50,630
was a realization
that so much technology

371
00:18:50,663 --> 00:18:53,733
was really bundled up
in the Bell system,

372
00:18:53,766 --> 00:18:55,502
and we were afraid

373
00:18:55,535 --> 00:18:57,036
that all kinds
of new technologies

374
00:18:57,069 --> 00:18:58,871
that could be competitive,
and could be out there

375
00:18:58,905 --> 00:19:00,240
in the marketplace,

376
00:19:00,273 --> 00:19:01,274
and could be innovative,

377
00:19:01,308 --> 00:19:03,075
that might actually
undermine the control

378
00:19:03,109 --> 00:19:04,611
of AT&T,

379
00:19:04,644 --> 00:19:06,179
we started to become concerned

380
00:19:06,213 --> 00:19:09,249
that, uh, those
were gonna get bottled up

381
00:19:09,282 --> 00:19:10,983
in-in the Bell system.

382
00:19:11,017 --> 00:19:12,385
Oh, he used to
always say...

383
00:19:12,419 --> 00:19:13,520
He'd say it to me
as a kid,

384
00:19:13,553 --> 00:19:14,687
my mother, too, he'd say,

385
00:19:14,721 --> 00:19:17,156
"If I can draw it,
it'll work when I make it."

386
00:19:17,190 --> 00:19:18,458
I said,
"Why do you say that, Dad?"

387
00:19:18,491 --> 00:19:21,294
He said,"Because my circuitry
doesn't lie."

388
00:19:21,328 --> 00:19:22,962
And neither did Shaw.

389
00:19:22,995 --> 00:19:25,998
He isn't shy about impressing
the executives at Bell

390
00:19:26,032 --> 00:19:27,567
with his new invention.

391
00:19:27,600 --> 00:19:28,568
Oh, he told 'em.

392
00:19:28,601 --> 00:19:31,204
He says "This is just one
of many I can..."

393
00:19:31,238 --> 00:19:35,041
But, you- He'd say things like
"I've drawn it, I've seen it."

394
00:19:35,074 --> 00:19:36,309
"I've got it on paper."

395
00:19:36,343 --> 00:19:38,144
And-and they saw
what he could build

396
00:19:38,177 --> 00:19:40,680
when it came from paper
into a demonstration,

397
00:19:40,713 --> 00:19:43,716
and they says, "This guy
is somebody to reckon with."

398
00:19:43,750 --> 00:19:44,851
They knew it.

399
00:19:44,884 --> 00:19:46,586
Over the next few years,

400
00:19:46,619 --> 00:19:49,021
Walter continues
to produce designs

401
00:19:49,055 --> 00:19:50,690
of advanced technology.

402
00:19:50,723 --> 00:19:53,526
He designs systems
for burglar alarms,

403
00:19:53,560 --> 00:19:56,596
touch-tone phones,
and conference calling.

404
00:19:56,629 --> 00:19:59,232
Bell management
is becoming worried.

405
00:19:59,266 --> 00:20:01,501
Shaw is prolific.

406
00:20:01,534 --> 00:20:03,436
He was a spiritual man.

407
00:20:03,470 --> 00:20:05,772
He had to be,
because he knew

408
00:20:05,805 --> 00:20:07,440
that this was a gift.

409
00:20:07,474 --> 00:20:10,176
What was coming
through his hands, I'm sure,

410
00:20:10,209 --> 00:20:12,879
and his mind,
amazed him...

411
00:20:12,912 --> 00:20:14,714
...more than it amazed
most people

412
00:20:14,747 --> 00:20:16,583
that didn't understand it.

413
00:20:16,616 --> 00:20:19,586
But Walter Shaw
has become a threat.

414
00:20:19,619 --> 00:20:21,954
Bell executives
call a meeting.

415
00:20:21,988 --> 00:20:24,156
It's time to reign him in.

416
00:20:24,190 --> 00:20:26,426
They praise
his inventive work,

417
00:20:26,459 --> 00:20:29,061
and they make him an offer.

418
00:20:29,095 --> 00:20:30,397
They tell him,
"We'll give you a raise."

419
00:20:30,430 --> 00:20:33,132
"We'll put you in charge
of a section, a department."

420
00:20:33,165 --> 00:20:35,034
"You'll be a department head,"
you know, all this...

421
00:20:35,067 --> 00:20:36,936
"We'll give you a white coat,"
you know...

422
00:20:36,969 --> 00:20:38,438
You know, that kinda nonsense,

423
00:20:38,471 --> 00:20:39,739
and, uh...

424
00:20:39,772 --> 00:20:42,509
They made it appealing,
as far as the status,

425
00:20:42,542 --> 00:20:44,444
but they didn't
make it appealing

426
00:20:44,477 --> 00:20:45,812
as far as paying him.

427
00:20:46,679 --> 00:20:47,747
...royalties,
and things like that.

428
00:20:47,780 --> 00:20:51,017
So, he-he just told 'em,
he says, uh...

429
00:20:51,050 --> 00:20:52,952
"No, I'm not gonna let you
own my mind."

430
00:20:52,985 --> 00:20:54,954
...so they won't steal
his inventions.

431
00:20:54,987 --> 00:20:56,923
They wanted him to sign
a piece of paper

432
00:20:56,956 --> 00:20:58,257
that said
everything he invented

433
00:20:58,291 --> 00:20:59,326
belonged to them.

434
00:21:00,293 --> 00:21:02,295
...said with the knowledge
you've developed,

435
00:21:02,329 --> 00:21:07,266
you can't get into business,
uh, competing with us.

436
00:21:07,300 --> 00:21:08,801
My own personal opinion,

437
00:21:08,835 --> 00:21:11,604
it's kinda stretching it
a little far,

438
00:21:11,638 --> 00:21:14,641
like putting a harness
on one's mind.

439
00:21:14,674 --> 00:21:16,843
1952...

440
00:21:16,876 --> 00:21:20,613
The wheels of fate and history
are set in motion.

441
00:21:20,647 --> 00:21:23,483
Walter Shaw resigns
from Bell.

442
00:21:23,516 --> 00:21:26,753
Bell Labs executives
press him to remain,

443
00:21:26,786 --> 00:21:28,120
but Shaw is certain

444
00:21:28,154 --> 00:21:29,756
the federal lawsuit
against them

445
00:21:29,789 --> 00:21:31,491
will have
the desired effect,

446
00:21:31,524 --> 00:21:33,660
paving the way
for him to pursue ownership

447
00:21:33,693 --> 00:21:36,028
of his own
communications company.

448
00:21:36,062 --> 00:21:38,130
He'll wait for Bell
to be unwound

449
00:21:38,164 --> 00:21:40,867
for anti-trust violations.

450
00:21:42,134 --> 00:21:44,236
But in an
eleventh hour negotiation

451
00:21:44,270 --> 00:21:45,738
with the Justice Department,

452
00:21:45,772 --> 00:21:48,375
the lawsuit filed against Bell
was settled

453
00:21:48,408 --> 00:21:51,077
with a consent decree.

454
00:21:51,110 --> 00:21:54,947
AT&T, and its subsidiary,
Bell Telephone,

455
00:21:54,981 --> 00:21:58,985
will control the entire
U.S. telephone system

456
00:21:59,018 --> 00:22:02,054
for another thirty years.

457
00:22:02,088 --> 00:22:05,558
Walter Shaw
is devastated.

458
00:22:05,592 --> 00:22:07,126
At a time in history

459
00:22:07,159 --> 00:22:09,629
when American artists
are being blacklisted

460
00:22:09,662 --> 00:22:11,664
by Senator Joseph McCarthy,

461
00:22:11,698 --> 00:22:14,333
Shaw is as good as blacklisted

462
00:22:14,367 --> 00:22:17,003
from using
Bell Telephone lines.

463
00:22:17,036 --> 00:22:19,271
While Bell controls
the phone system,

464
00:22:19,305 --> 00:22:22,208
Shaw has no place
to practice his craft,

465
00:22:22,241 --> 00:22:24,911
no way to make a living.

466
00:22:37,390 --> 00:22:39,058
Walter continues his quest

467
00:22:39,091 --> 00:22:40,893
to find financial backers.

468
00:22:40,927 --> 00:22:44,196
He finds one con man
after another.

469
00:22:44,230 --> 00:22:45,932
No amount
of knocking on doors

470
00:22:45,965 --> 00:22:48,367
will yield Shaw results.

471
00:22:48,401 --> 00:22:51,270
The Shaw family
begins to suffer.

472
00:22:51,303 --> 00:22:52,905
The family
is forced to live

473
00:22:52,939 --> 00:22:54,607
in an impoverished
neighborhood,

474
00:22:54,641 --> 00:22:55,875
and use food stamps

475
00:22:55,908 --> 00:22:59,446
to supplement
their meager monthly income.

476
00:22:59,479 --> 00:23:04,250
In my child-like observation,
I noticed...

477
00:23:04,283 --> 00:23:06,886
...that even though
that love was there,

478
00:23:06,919 --> 00:23:08,955
there was a new constant,

479
00:23:08,988 --> 00:23:12,024
and that was preoccupation

480
00:23:12,058 --> 00:23:16,796
with getting money
to keep our h-

481
00:23:16,829 --> 00:23:18,397
...our home life going.

482
00:23:18,431 --> 00:23:20,332
My brother and I
were in the same bed

483
00:23:20,366 --> 00:23:22,435
with measles.

484
00:23:22,469 --> 00:23:25,672
Two sick little cookies,
and, uh...

485
00:23:25,705 --> 00:23:28,340
I was woken up with...

486
00:23:29,476 --> 00:23:32,779
...loud voices, about,
"We don't have enough food."

487
00:23:32,812 --> 00:23:34,714
"You need to go
do something."

488
00:23:34,747 --> 00:23:36,716
"We've got
two sick children."

489
00:23:36,749 --> 00:23:39,085
That's scary
for a kid to hear.

490
00:23:39,118 --> 00:23:40,487
Walter requests a meeting

491
00:23:40,520 --> 00:23:42,489
with Bell Lab executives.

492
00:23:42,522 --> 00:23:44,190
He appeals to Bell
to allow him

493
00:23:44,223 --> 00:23:47,326
to use their lines
to hook up his speakerphones.

494
00:23:47,359 --> 00:23:48,961
He, um, showed it to them,

495
00:23:48,995 --> 00:23:51,030
and they says, "Well,
how many you got
of these things?"

496
00:23:51,063 --> 00:23:52,632
He says, "Well,
we've made 200."

497
00:23:52,665 --> 00:23:54,333
He had a very wealthy
investor at that time

498
00:23:54,366 --> 00:23:56,102
who didn't care.
He was a real...

499
00:23:56,135 --> 00:23:58,337
A real chance taker.

500
00:23:58,370 --> 00:24:00,106
And he says,
"Well, that's good."

501
00:24:00,139 --> 00:24:02,509
"You've got the invention,
and it looks beautiful,"

502
00:24:02,542 --> 00:24:05,612
"it works, but how are you
gonna hook it up, Mr. Shaw?"

503
00:24:05,645 --> 00:24:07,346
And my dad said,
"What do you mean, how am I
going to hook it up?"

504
00:24:07,379 --> 00:24:09,616
"I'm gonna... I'm gonna
put it on your lines."

505
00:24:09,649 --> 00:24:10,683
He says, "Can't."

506
00:24:10,717 --> 00:24:12,552
"It's an unauthorized
attachment to our lines."

507
00:24:12,585 --> 00:24:14,921
"We'll never get permission
to market this."

508
00:24:14,954 --> 00:24:17,423
And he came home,
and I was listening
to the argument,

509
00:24:17,456 --> 00:24:19,391
and he says,
"They're not gonna let me
market this."

510
00:24:19,425 --> 00:24:21,460
"I'll never be able
to hook it up."

511
00:24:21,494 --> 00:24:22,829
According to Bell,

512
00:24:22,862 --> 00:24:25,598
it is a crime to compete
against the company,

513
00:24:25,632 --> 00:24:28,901
or even to attempt
to innovate around it.

514
00:24:28,935 --> 00:24:31,437
Shaw is despondent.

515
00:24:31,470 --> 00:24:34,140
He returns to Bell
with a plan.

516
00:24:34,173 --> 00:24:36,543
They would partner
and give him credit,

517
00:24:36,576 --> 00:24:39,078
but he'd have to sign
the rights over to him,

518
00:24:39,111 --> 00:24:40,713
and he wouldn't do it.

519
00:24:40,747 --> 00:24:42,181
They argued about it,

520
00:24:42,214 --> 00:24:45,217
and it was a lot of arguments,
and, uh...

521
00:24:45,251 --> 00:24:48,354
He, uh, found a way
to get around it.

522
00:24:48,387 --> 00:24:50,389
He said, "Well, I'll tell you
what I'll do, then."

523
00:24:50,422 --> 00:24:52,058
He says,

524
00:24:52,091 --> 00:24:56,629
"Then I'll donate them
to the Iron Lung foundation."

525
00:24:56,663 --> 00:24:58,330
So, he donated to them,

526
00:24:58,364 --> 00:24:59,732
and he told them

527
00:24:59,766 --> 00:25:01,534
to tell these people
they can't have the phone.

528
00:25:01,568 --> 00:25:03,870
So, of course,
they made the exception,

529
00:25:03,903 --> 00:25:06,739
and they didn't want
to have that come out
in the newspaper,

530
00:25:06,773 --> 00:25:08,474
so they-
they hooked them up.

531
00:25:08,507 --> 00:25:10,409
There's only 200
of them, though.

532
00:25:10,442 --> 00:25:12,211
And he donated them, too,
and of course,

533
00:25:12,244 --> 00:25:13,813
there was bad blood
with the investor,

534
00:25:13,846 --> 00:25:16,549
he lost his money,
and he didn't make a dollar.

535
00:25:31,564 --> 00:25:34,100
There are no other
telecommunications companies

536
00:25:34,133 --> 00:25:35,067
in America,

537
00:25:35,101 --> 00:25:37,403
and Walter Shaw
needs a job.

538
00:25:37,436 --> 00:25:40,673
He goes to work
for Philco Television.

539
00:25:40,707 --> 00:25:43,910
However, Shaw does not own
the Philco Television store

540
00:25:43,943 --> 00:25:44,911
where he works,

541
00:25:44,944 --> 00:25:46,613
he is a repair man.

542
00:25:46,646 --> 00:25:50,049
The pay is abysmal,
and the work, demeaning.

543
00:25:50,082 --> 00:25:51,618
He was trying to work,

544
00:25:51,651 --> 00:25:53,552
and then do this
on the side,

545
00:25:53,586 --> 00:25:55,487
and it was really hard.

546
00:25:55,521 --> 00:25:59,225
And, uh, I remember that

547
00:25:59,258 --> 00:26:02,261
he was gone quite a bit.

548
00:26:02,294 --> 00:26:04,631
It started out,
just little jaunts,

549
00:26:04,664 --> 00:26:06,432
and then it seemed to me
like he was gone

550
00:26:06,465 --> 00:26:07,634
every other day.

551
00:26:07,667 --> 00:26:09,435
Trying to, after work-

552
00:26:09,468 --> 00:26:12,705
Trying to promote
his inventions.

553
00:26:12,739 --> 00:26:16,008
Meanwhile, the Cold War
is in full swing,

554
00:26:16,042 --> 00:26:17,744
and the Soviet arms buildup

555
00:26:17,777 --> 00:26:20,246
simmers behind
the Iron Curtain.

556
00:26:20,279 --> 00:26:21,714
That's when they asked him

557
00:26:21,748 --> 00:26:24,416
to go to Anchorage
Elmendorf Air Force base

558
00:26:24,450 --> 00:26:27,386
to work on the alert system
for the government.

559
00:26:27,419 --> 00:26:29,355
Bell Labs is a major provider

560
00:26:29,388 --> 00:26:32,591
of scientific talent
for the Cold War effort.

561
00:26:32,625 --> 00:26:35,061
While they were unhappy
with Shaw's exit,

562
00:26:35,094 --> 00:26:38,030
they could not deny
his talents.

563
00:26:38,064 --> 00:26:39,298
Walter joins forces

564
00:26:39,331 --> 00:26:41,934
with a team of America's
most brilliant scientists

565
00:26:41,968 --> 00:26:43,302
and engineers,

566
00:26:43,335 --> 00:26:46,005
most of whom
were taken from Bell.

567
00:26:46,038 --> 00:26:48,040
For one year,
Lieutenant Shaw

568
00:26:48,074 --> 00:26:51,644
works on top-secret
military projects.

569
00:26:51,678 --> 00:26:53,780
Were a nuclear war
to have broken out

570
00:26:53,813 --> 00:26:55,915
between the Soviets
and America,

571
00:26:55,948 --> 00:26:58,818
the most effective route
for missiles from Russia

572
00:26:58,851 --> 00:27:01,954
was directly over Alaska.

573
00:27:01,988 --> 00:27:04,390
Shaw and Bell Lab recruits
were assigned

574
00:27:04,423 --> 00:27:07,193
to design a missile-tracking
radar system,

575
00:27:07,226 --> 00:27:11,831
which would later be called
tropospheric scatter.

576
00:27:11,864 --> 00:27:13,632
They created technology

577
00:27:13,666 --> 00:27:15,702
which will track
Soviet missiles

578
00:27:15,735 --> 00:27:19,405
the moment they're launched
from anywhere in Russia.

579
00:27:21,007 --> 00:27:24,143
Walter works on
the renowned Red Phone system,

580
00:27:24,176 --> 00:27:25,978
which allows
Russia and America

581
00:27:26,012 --> 00:27:29,315
to communicate
during times of crisis.

582
00:27:29,348 --> 00:27:32,752
In an effort to prevent
a knee-jerk nuclear mistake,

583
00:27:32,785 --> 00:27:35,154
the system
he and his team create

584
00:27:35,187 --> 00:27:37,724
uses a phone line
to send a telex

585
00:27:37,757 --> 00:27:40,693
between Washington
and the Kremlin.

586
00:27:40,727 --> 00:27:42,394
These are some of
the happiest days

587
00:27:42,428 --> 00:27:43,830
for Walter Shaw.

588
00:27:43,863 --> 00:27:45,531
He is doing
what he loves,

589
00:27:45,564 --> 00:27:47,967
and he is respected for it.

590
00:28:00,179 --> 00:28:01,914
1956.

591
00:28:01,948 --> 00:28:04,450
Shaw is discharged.

592
00:28:04,483 --> 00:28:08,120
After doing brilliant work,
he returns home

593
00:28:08,154 --> 00:28:10,556
to face the same
dire circumstances

594
00:28:10,589 --> 00:28:13,592
which he had left
only one year before.

595
00:28:13,625 --> 00:28:16,428
They came back
to Florida, and, um,

596
00:28:16,462 --> 00:28:20,967
he met a young guy
from Miami Beach, um,

597
00:28:21,000 --> 00:28:23,069
named Ralph Satterfield.

598
00:28:23,102 --> 00:28:24,871
Ralph came from
a very influential,

599
00:28:24,904 --> 00:28:27,039
wealthy people
in Miami Beach.

600
00:28:27,073 --> 00:28:30,409
Very, uh, very nice young man.

601
00:28:30,442 --> 00:28:33,445
Engaging, um...
Very friendly.

602
00:28:33,479 --> 00:28:35,047
And, uh...

603
00:28:35,081 --> 00:28:37,416
At this point,
I can safely say

604
00:28:37,449 --> 00:28:39,819
Dad was probably feeling
pretty desperate.

605
00:28:39,852 --> 00:28:42,054
Ralph said,
"I know some people"

606
00:28:42,088 --> 00:28:43,522
"that can open some doors
for you."

607
00:28:43,555 --> 00:28:44,924
"I have an uncle..."

608
00:28:44,957 --> 00:28:46,492
...who was a renegade
type of guy,

609
00:28:46,525 --> 00:28:49,195
in Canal Street,
New York.

610
00:28:49,228 --> 00:28:52,564
He owned this very posh,
wealthy, jewelry store.

611
00:28:52,598 --> 00:28:56,068
They used to sell jewelry
to girlfriends, and...

612
00:28:56,102 --> 00:28:59,772
...to mobsters' wives,
and things like that.

613
00:28:59,806 --> 00:29:02,441
So, he took a like
to my dad, and, uh,

614
00:29:02,474 --> 00:29:03,876
put him up
in his apartment.

615
00:29:03,910 --> 00:29:05,077
You know, he had
a place in the city,

616
00:29:05,111 --> 00:29:06,745
and he had a place
on Long Island,

617
00:29:06,779 --> 00:29:09,081
and he said, listen,
stay at the apartment,

618
00:29:09,115 --> 00:29:10,917
let's see
if we can make something work.

619
00:29:10,950 --> 00:29:13,385
So, I had been a jeweler
for years.

620
00:29:13,419 --> 00:29:15,087
I'm half Italian,

621
00:29:15,121 --> 00:29:17,857
so my Italian relatives
lived in Mount Vernon,

622
00:29:17,890 --> 00:29:19,425
a lot of them
were bookmakers.

623
00:29:19,458 --> 00:29:22,294
He made some calls,
and some guys came around,

624
00:29:22,328 --> 00:29:25,297
the next thing we know,
we're moved out of Florida,

625
00:29:25,331 --> 00:29:26,665
up to New York.

626
00:29:26,698 --> 00:29:27,967
Through Sylvester,

627
00:29:28,000 --> 00:29:30,502
Walter and Ralph
meet Archie Gianunzio,

628
00:29:30,536 --> 00:29:32,604
and his boss,
Joe Valachi.

629
00:29:32,638 --> 00:29:36,843
Joe Valachi had been a soldier
in the Lucchese crime family,

630
00:29:36,876 --> 00:29:38,644
and would later
become a bodyguard

631
00:29:38,677 --> 00:29:41,113
for crime boss
Salvatore Maranzano,

632
00:29:41,147 --> 00:29:43,850
until his murder in 1932.

633
00:29:43,883 --> 00:29:46,452
Valachi is now a soldier
in the crime family

634
00:29:46,485 --> 00:29:49,055
headed by
Charles "Lucky" Luciano,

635
00:29:49,088 --> 00:29:50,857
for the Genovese family,

636
00:29:50,890 --> 00:29:53,625
in the crew headed by
mafia underboss

637
00:29:53,659 --> 00:29:55,928
Anthony Strollo.

638
00:29:55,962 --> 00:29:57,529
They had this meeting
with my dad,

639
00:29:57,563 --> 00:29:59,498
and they said,
"We-we make

640
00:29:59,531 --> 00:30:02,134
thousands and thousands
of phone calls,

641
00:30:02,168 --> 00:30:03,769
and, uh, we're bookmakers."

642
00:30:05,404 --> 00:30:07,673
"We're always getting busted
because our phones
give us up."

643
00:30:07,706 --> 00:30:09,241
He said,
"We need to make calls"

644
00:30:09,275 --> 00:30:12,011
"we can't be traced, or..."

645
00:30:12,044 --> 00:30:13,946
"...get caught," so my dad
said, "Okay..."

646
00:30:13,980 --> 00:30:15,114
"Well, give me-
give me a little time"

647
00:30:15,147 --> 00:30:16,815
"to think about this."

648
00:30:16,849 --> 00:30:18,650
Shaw returns
to his hotel

649
00:30:18,684 --> 00:30:21,253
to consider Valachi's request.

650
00:30:21,287 --> 00:30:22,488
He has a family,

651
00:30:22,521 --> 00:30:26,558
and no prospects of work
on the horizon.

652
00:30:26,592 --> 00:30:28,794
There was
frightening instances

653
00:30:28,827 --> 00:30:30,696
where there just
wasn't enough money

654
00:30:30,729 --> 00:30:31,964
to run the household.

655
00:30:31,998 --> 00:30:35,234
I remember, as a youngster,
very clearly,

656
00:30:35,267 --> 00:30:36,802
my brother and I
being herded

657
00:30:36,835 --> 00:30:37,937
into the bedroom.

658
00:30:37,970 --> 00:30:39,505
Dad was away,

659
00:30:39,538 --> 00:30:43,342
and there was two men
pounding on the door,

660
00:30:43,375 --> 00:30:45,644
and my mother put her finger
up to her lips,

661
00:30:45,677 --> 00:30:47,413
and said, "Shh.
Don't say anything."

662
00:30:47,446 --> 00:30:48,514
"Don't say anything."

663
00:30:48,547 --> 00:30:50,016
And this man...

664
00:30:50,049 --> 00:30:51,683
I guess he was there
to serve papers,

665
00:30:51,717 --> 00:30:53,519
he wanted his rent,
and I remember him

666
00:30:53,552 --> 00:30:56,722
saying, "Mrs. Shaw,
we know you're in there."

667
00:30:56,755 --> 00:30:58,224
Walter Shaw goes to work

668
00:30:58,257 --> 00:31:01,127
for Joe Valachi
and Archie Gianunzio.

669
00:31:01,160 --> 00:31:02,561
Shaw comes up
with a design

670
00:31:02,594 --> 00:31:04,897
for what would
come to be known as

671
00:31:04,931 --> 00:31:06,632
"The black box."

672
00:31:06,665 --> 00:31:10,970
...and Walter demonstrates
the black box.

673
00:31:11,003 --> 00:31:11,770
And they love it.

674
00:31:11,803 --> 00:31:14,806
He made a- a prototype first.

675
00:31:14,840 --> 00:31:17,376
And this guy, he says,
"Go to the payphone,"

676
00:31:17,409 --> 00:31:18,945
"call buh-buh,"
and they did.

677
00:31:18,978 --> 00:31:20,446
They went out-
he went outside
to a payphone,

678
00:31:20,479 --> 00:31:21,513
put the dime in.

679
00:31:21,547 --> 00:31:23,849
They were wise guys,
but they weren't smart guys.

680
00:31:23,882 --> 00:31:24,917
Know what I mean?

681
00:31:24,951 --> 00:31:26,052
So he put the dime in,

682
00:31:26,085 --> 00:31:27,653
he says, now stay
in the phone booth,

683
00:31:27,686 --> 00:31:28,787
if the dime comes back,

684
00:31:28,820 --> 00:31:29,655
it works.

685
00:31:29,688 --> 00:31:31,323
So he calls the house,

686
00:31:31,357 --> 00:31:32,624
they had the conversation,

687
00:31:32,658 --> 00:31:34,994
they hang up
th-th-th-the call,

688
00:31:35,027 --> 00:31:36,328
and the dime comes back.

689
00:31:36,362 --> 00:31:37,429
He says,
"Hey, the dime came back."

690
00:31:37,463 --> 00:31:38,730
"The thing doesn't work."

691
00:31:38,764 --> 00:31:41,200
You know, they thought
that's what it meant,
it didn't work.

692
00:31:41,233 --> 00:31:43,869
Walter meets Valachi
on three separate occasions

693
00:31:43,902 --> 00:31:45,904
to discuss his progress.

694
00:31:45,938 --> 00:31:47,106
The wise guys
turned to my dad, said,

695
00:31:47,139 --> 00:31:49,908
"Listen, we like it,
but you know what,"

696
00:31:49,942 --> 00:31:52,578
"that's dangerous,
because if they ever
get onto us,"

697
00:31:52,611 --> 00:31:53,679
"they can get us
with this equipment,"

698
00:31:53,712 --> 00:31:54,981
"and arrest us."

699
00:31:55,014 --> 00:31:56,582
He said, "We want to be
in the boroughs
and different places."

700
00:31:56,615 --> 00:31:57,816
"We want it
to follow us."

701
00:31:57,849 --> 00:32:00,252
So, you plug this
into the wall,

702
00:32:00,286 --> 00:32:03,155
and the phone rings,
and you answer it over there.

703
00:32:03,189 --> 00:32:04,423
And the cops
break the door down,

704
00:32:04,456 --> 00:32:05,857
they can't find
a bookmaker.

705
00:32:05,891 --> 00:32:07,559
So, he puts it in,

706
00:32:07,593 --> 00:32:09,428
and he has them
go outside,

707
00:32:09,461 --> 00:32:12,431
go to another payphone,
dial the number,

708
00:32:12,464 --> 00:32:15,467
and the number
goes to another number.

709
00:32:15,501 --> 00:32:18,304
So long as there's no,
uh, transformer

710
00:32:18,337 --> 00:32:21,273
between the areas,
you could be anywhere

711
00:32:21,307 --> 00:32:23,042
and answer the phone
from here.

712
00:32:23,075 --> 00:32:25,311
Now, a thing called
a carrier phone

713
00:32:25,344 --> 00:32:27,813
that is hooked
to this thing...

714
00:32:27,846 --> 00:32:29,448
...so it follows 'em, see?

715
00:32:29,481 --> 00:32:31,650
He says, "That's brilliant.
That's great."

716
00:32:31,683 --> 00:32:33,752
"So, when it goes there,
it goes there."

717
00:32:33,785 --> 00:32:35,321
"We can't get caught!"

718
00:32:35,354 --> 00:32:37,189
That was the-
That was the-

719
00:32:37,223 --> 00:32:38,991
the prototype
of what would become known

720
00:32:39,025 --> 00:32:40,392
as "call forwarding."

721
00:32:41,593 --> 00:32:44,096
1500 black boxes
are delivered

722
00:32:44,130 --> 00:32:46,665
to bookmakers
across the country.

723
00:32:46,698 --> 00:32:48,234
For the next five years,

724
00:32:48,267 --> 00:32:51,103
organized crime would
successfully conduct

725
00:32:51,137 --> 00:32:56,042
illegal gambling operations
using Walter Shaw's invention.

726
00:32:56,075 --> 00:32:57,609
So, when we were
on a wire tap

727
00:32:57,643 --> 00:33:00,279
for-for a
particular bookmaker...

728
00:33:00,312 --> 00:33:01,513
And it was
mainly bookmakers,

729
00:33:01,547 --> 00:33:02,348
it wasn't anything...

730
00:33:02,381 --> 00:33:03,715
I never had
one of the black boxes

731
00:33:03,749 --> 00:33:04,650
on narcotics.

732
00:33:04,683 --> 00:33:06,852
And that black box
would transfer the call

733
00:33:06,885 --> 00:33:11,090
from that location
to another location.

734
00:33:11,123 --> 00:33:13,392
So, it-it saved them
a lot of, uh,

735
00:33:13,425 --> 00:33:14,726
a lot of legal expenses,

736
00:33:14,760 --> 00:33:16,862
and a lot of individuals
getting arrested

737
00:33:16,895 --> 00:33:19,031
by-by incorporating
this black box

738
00:33:19,065 --> 00:33:21,133
into their operation.

739
00:33:21,167 --> 00:33:22,668
For the first time in years,

740
00:33:22,701 --> 00:33:24,403
the Shaw family
has no worries

741
00:33:24,436 --> 00:33:26,838
about putting food
on the table.

742
00:33:26,872 --> 00:33:29,041
Gianunzio buys Shaw
a Cadillac.

743
00:33:29,075 --> 00:33:31,410
It's a bonus
for his good work.

744
00:33:31,443 --> 00:33:34,012
The crime family also pays
for Thiel's tuition

745
00:33:34,046 --> 00:33:36,515
at a private academy
in New Jersey.

746
00:33:36,548 --> 00:33:40,586
And the FBI is becoming
increasingly frustrated.

747
00:33:55,367 --> 00:33:56,402
In the news,

748
00:33:56,435 --> 00:33:57,936
stories begin to surface

749
00:33:57,969 --> 00:34:00,572
about organized crime
in America.

750
00:34:00,606 --> 00:34:03,142
We are terribly concerned
about the extent

751
00:34:03,175 --> 00:34:06,112
of organized crime
throughout the United States.

752
00:34:06,145 --> 00:34:08,780
*

753
00:34:08,814 --> 00:34:09,981
Finally...

754
00:34:10,015 --> 00:34:12,751
This was when
the federal crime commission
showed up,

755
00:34:12,784 --> 00:34:15,287
they went up to those guys,
and they were pissed off

756
00:34:15,321 --> 00:34:18,124
because the cops
kept breaking doors down,
finding nobody.

757
00:34:18,157 --> 00:34:19,258
So they made a deal with them.

758
00:34:19,291 --> 00:34:21,293
They took the books-
the bookmakers' books,

759
00:34:21,327 --> 00:34:23,229
they seized them.

760
00:34:23,262 --> 00:34:26,598
And they said,
"All right, we'll give you
back your books"

761
00:34:26,632 --> 00:34:30,569
"if you give us
the equipment."

762
00:34:30,602 --> 00:34:32,904
They wanted
the black boxes.

763
00:34:32,938 --> 00:34:34,140
So the bookmakers decided

764
00:34:34,173 --> 00:34:36,308
they'd have to
have their books,

765
00:34:36,342 --> 00:34:38,944
so in Pelham,
they left the...

766
00:34:40,446 --> 00:34:41,647
...in a car,

767
00:34:41,680 --> 00:34:43,882
and the books
were in another car,

768
00:34:43,915 --> 00:34:45,284
and they exchanged.

769
00:34:45,317 --> 00:34:47,653
The Feds give 'em
their books back,

770
00:34:47,686 --> 00:34:49,421
and they gave
the equipment up.

771
00:34:49,455 --> 00:34:51,290
They grabbed the equipment,

772
00:34:51,323 --> 00:34:53,192
they sent it off
to Bell Labs,

773
00:34:53,225 --> 00:34:54,793
Bell tries to x-ray it,

774
00:34:54,826 --> 00:34:57,062
and try to get
serial numbers on the-

775
00:34:57,095 --> 00:34:59,798
on the, uh, capacitors
and relays,

776
00:34:59,831 --> 00:35:01,200
but my dad
had it all sealed.

777
00:35:01,233 --> 00:35:02,501
He has 'em sealed.

778
00:35:02,534 --> 00:35:05,103
So, they tried to x-ray it,
and they couldn't see it,

779
00:35:05,137 --> 00:35:06,538
because he used to use
black crayon,

780
00:35:06,572 --> 00:35:08,774
and melt it in there
in the epoxy.

781
00:35:08,807 --> 00:35:09,875
So they got
really frustrated,

782
00:35:09,908 --> 00:35:11,510
because they never knew
how it worked.

783
00:35:11,543 --> 00:35:13,812
They couldn't x-ray it.
They couldn't break it,

784
00:35:13,845 --> 00:35:15,181
because by the time
they chiseled it,

785
00:35:15,214 --> 00:35:16,348
it broke all the stuff up,

786
00:35:16,382 --> 00:35:19,451
so they end up with nothing
on their- I mean, nothing.

787
00:35:19,485 --> 00:35:21,086
So they were frustrated,
they didn't know
who was making it.

788
00:35:21,119 --> 00:35:23,155
They had no idea
who was behind this,

789
00:35:23,189 --> 00:35:24,856
as far as the inventor.

790
00:35:24,890 --> 00:35:27,326
FBI has a new target.

791
00:35:27,359 --> 00:35:28,694
They want the bookies,

792
00:35:28,727 --> 00:35:31,062
but not as much
as they want the inventor,

793
00:35:31,096 --> 00:35:32,698
whoever he may be.

794
00:35:32,731 --> 00:35:34,366
Take the box away,

795
00:35:34,400 --> 00:35:36,768
and the bookies
become vulnerable again.

796
00:35:36,802 --> 00:35:40,472
In 1950,
Senator Estes Kefauver

797
00:35:40,506 --> 00:35:43,041
introduces a resolution
in Congress

798
00:35:43,074 --> 00:35:46,845
to establish a committee
on an urgent matter.

799
00:35:46,878 --> 00:35:49,881
The Senate Special Committee
to Investigate Crime

800
00:35:49,915 --> 00:35:52,618
in Interstate Commerce
becomes known

801
00:35:52,651 --> 00:35:54,986
as the Kefauver Committee.

802
00:35:55,020 --> 00:35:57,889
Kefauver holds hearing
in fourteen cities,

803
00:35:57,923 --> 00:36:00,959
and hears testimony
from 600 witnesses,

804
00:36:00,992 --> 00:36:04,196
many of whom
are organized crime bosses.

805
00:36:04,230 --> 00:36:05,997
So, Kefauver found himself

806
00:36:06,031 --> 00:36:09,201
at the head of a committee
that was going to investigate

807
00:36:09,235 --> 00:36:11,237
ah, unions'
labor racketeering

808
00:36:11,270 --> 00:36:13,672
in interstate commerce.

809
00:36:13,705 --> 00:36:15,241
Ah, that committee,

810
00:36:15,274 --> 00:36:17,042
ah, to his advantage,
turned out to be

811
00:36:17,075 --> 00:36:19,611
the first time
when Congressional hearings

812
00:36:19,645 --> 00:36:20,912
were actually televised.

813
00:36:20,946 --> 00:36:23,382
First time i-i-in
American history.

814
00:36:23,415 --> 00:36:26,885
Ah, so, here we have,
ah, subpoenaed
by the committee,

815
00:36:26,918 --> 00:36:30,556
uh, the leading figures
in organized crime
in the United States

816
00:36:30,589 --> 00:36:33,359
brought before the-
the, uh, Kefauver Committee,

817
00:36:33,392 --> 00:36:35,661
uh, people who had never
actually been seen-

818
00:36:35,694 --> 00:36:37,996
Certainly not on-
on live television,

819
00:36:38,029 --> 00:36:40,098
uh, people who, uh,
the public oftentimes

820
00:36:40,131 --> 00:36:41,099
knew their names,

821
00:36:41,132 --> 00:36:42,568
but had never
actually seen them...

822
00:36:42,601 --> 00:36:43,635
Now they're being paraded

823
00:36:43,669 --> 00:36:45,103
before a
congressional committee,

824
00:36:45,136 --> 00:36:47,506
and that's, uh,
that's-that's on television.

825
00:36:47,539 --> 00:36:49,741
Senator John Kennedy
and brother, Robert,

826
00:36:49,775 --> 00:36:52,278
take part in the hearings.

827
00:36:52,311 --> 00:36:54,613
Meanwhile, over a period
of a few years,

828
00:36:54,646 --> 00:36:56,782
Walter Shaw
begins scaling back

829
00:36:56,815 --> 00:36:58,550
building the black boxes.

830
00:36:58,584 --> 00:37:00,252
He's more interested
in developing

831
00:37:00,286 --> 00:37:02,388
his own inventions.

832
00:37:02,421 --> 00:37:04,290
But Satterfield
is not happy.

833
00:37:04,323 --> 00:37:05,791
He needs money.

834
00:37:05,824 --> 00:37:09,295
He takes out an ad
in the Miami Herald...

835
00:37:09,328 --> 00:37:12,364
And he says, "Call me
if you want to make
free phone calls."

836
00:37:12,398 --> 00:37:13,799
And then he calls
my poor dad,

837
00:37:13,832 --> 00:37:15,233
and my dad goes to meet him,

838
00:37:15,267 --> 00:37:18,003
and he had said
he wasn't gonna make anymore.

839
00:37:18,036 --> 00:37:19,237
He'd left, like,

840
00:37:19,271 --> 00:37:21,807
five or six hundred
of these, unfinished,

841
00:37:21,840 --> 00:37:24,543
in a room, and Archie
never got rid of them,

842
00:37:24,576 --> 00:37:25,811
and they banged down
this door

843
00:37:25,844 --> 00:37:28,580
and found
unfinished boxes,

844
00:37:28,614 --> 00:37:30,282
brought the Feds in,

845
00:37:30,316 --> 00:37:33,018
uh, and they had
tracked them to Florida,

846
00:37:33,051 --> 00:37:34,686
through Ralph,
with this ad.

847
00:37:34,720 --> 00:37:36,254
So, it all started
making sense,

848
00:37:36,288 --> 00:37:38,324
and they started
following everybody.

849
00:37:38,357 --> 00:37:40,292
One day...

850
00:37:40,326 --> 00:37:45,130
Dad was in the back bedroom
of this lovely house...

851
00:37:45,163 --> 00:37:47,833
...and I answered the door...

852
00:37:47,866 --> 00:37:50,502
This guy comes to the house,
and he's...

853
00:37:50,536 --> 00:37:52,671
...a guy that wants to buy
one of these boxes.

854
00:37:52,704 --> 00:37:55,474
He asked
to speak to Mr. Shaw.

855
00:37:55,507 --> 00:37:57,008
And...

856
00:37:57,042 --> 00:38:00,812
I told Dad, and he said,
"Just send him back."

857
00:38:00,846 --> 00:38:03,682
And my dad says, um...

858
00:38:03,715 --> 00:38:05,384
He smelt something right away,
he says, "No."

859
00:38:05,417 --> 00:38:07,118
He says,
"I don't have any."

860
00:38:07,152 --> 00:38:10,922
Finally my dad
agrees to show it to him.

861
00:38:10,956 --> 00:38:13,359
After ten brief minutes...

862
00:38:14,159 --> 00:38:16,261
...my dad came out with...

863
00:38:16,294 --> 00:38:18,397
...in the room,
with this man,

864
00:38:18,430 --> 00:38:20,366
and he was handcuffed.

865
00:38:20,399 --> 00:38:22,468
His hands
were behind his back.

866
00:38:22,501 --> 00:38:24,770
He was very quiet.

867
00:38:24,803 --> 00:38:29,641
And as he went out the door
with this gentleman...

868
00:38:29,675 --> 00:38:33,144
...he said,
"Call your mother."

869
00:38:33,178 --> 00:38:34,480
That's all he said.

870
00:38:35,347 --> 00:38:38,584
And I watched
as he walked my dad out,

871
00:38:38,617 --> 00:38:40,218
put him in the car
and drive off,

872
00:38:40,251 --> 00:38:42,153
I was horrified.

873
00:38:43,422 --> 00:38:45,891
Shaw, Gianunzio,
and Satterfield

874
00:38:45,924 --> 00:38:47,659
are arrested.

875
00:38:47,693 --> 00:38:50,328
In the press,
they call Shaw's black box

876
00:38:50,362 --> 00:38:52,631
a "parasite."

877
00:38:52,664 --> 00:38:54,199
The evening
of the arrest,

878
00:38:54,232 --> 00:38:55,401
Walter's son, Thiel,

879
00:38:55,434 --> 00:38:57,235
is locked in
the school infirmary

880
00:38:57,268 --> 00:38:59,671
awaiting word
from his mother.

881
00:38:59,705 --> 00:39:01,440
Fellow students
slide a newspaper

882
00:39:01,473 --> 00:39:03,675
under the door
the next morning.

883
00:39:03,709 --> 00:39:05,977
It says, ah, they feel
this is the brains

884
00:39:06,011 --> 00:39:09,014
behind the, uh,
infamous black box

885
00:39:09,047 --> 00:39:10,549
bookmakin' ring.

886
00:39:10,582 --> 00:39:12,818
And it named
what the equipment did.

887
00:39:12,851 --> 00:39:15,587
"Illegal equipment
busts bookmaker."

888
00:39:15,621 --> 00:39:18,424
Thiel Shaw is expelled.

889
00:39:18,457 --> 00:39:21,693
Upon his return home,
he confronts his father.

890
00:39:21,727 --> 00:39:23,929
I had become truant in school,

891
00:39:23,962 --> 00:39:25,431
and I became hard to handle.

892
00:39:25,464 --> 00:39:27,566
I'd form my own street gang,

893
00:39:27,599 --> 00:39:28,867
and wouldn't go to school.

894
00:39:28,900 --> 00:39:31,102
When I was in the sixth grade,
I got kicked out,

895
00:39:31,136 --> 00:39:32,738
and I was getting in fights,

896
00:39:32,771 --> 00:39:33,872
and my mother
couldn't control me,

897
00:39:33,905 --> 00:39:35,574
so she was telling
my dad this,

898
00:39:35,607 --> 00:39:36,742
long distance, every night.

899
00:39:36,775 --> 00:39:38,544
She says, "He's out of hand,
he's..."

900
00:39:38,577 --> 00:39:40,211
"He's robbing with kids
in the neighborhood."

901
00:39:40,245 --> 00:39:41,980
"They're stealing..."
It was horrible.

902
00:39:42,013 --> 00:39:45,684
I rebelled against the fact
that when my dad

903
00:39:45,717 --> 00:39:47,453
had came home,
that sho-short time,

904
00:39:47,486 --> 00:39:50,055
it skirted the issue
of what was really...

905
00:39:50,088 --> 00:39:52,190
'Cause I-I didn't
want to believe...

906
00:39:53,158 --> 00:39:54,793
...that he was a bad guy.

907
00:39:55,961 --> 00:39:58,329
Not only has Walter
lost his way,

908
00:39:58,363 --> 00:40:01,600
but he has
lost his son, too.

909
00:40:01,633 --> 00:40:03,435
I feel he knew
they were bad guys,

910
00:40:03,469 --> 00:40:07,238
and-and I feel that,
uh...

911
00:40:07,272 --> 00:40:09,608
He didn't want to be seen
in that light.

912
00:40:09,641 --> 00:40:12,010
He didn't want to be seen
as a bad guy, too.

913
00:40:12,043 --> 00:40:15,581
Walter Shaw is arrested
by Florida state police,

914
00:40:15,614 --> 00:40:16,982
and subpoenaed to appear

915
00:40:17,015 --> 00:40:19,317
before the Senate
permanent subcommittee

916
00:40:19,350 --> 00:40:22,488
on investigations
of organized crime.

917
00:40:22,521 --> 00:40:25,256
John F. Kennedy gets elected
President in 1960.

918
00:40:25,290 --> 00:40:27,425
He appoints Robert Kennedy
as his Attorney General.

919
00:40:27,459 --> 00:40:29,327
And that unleashes
all of the law enforcement

920
00:40:29,360 --> 00:40:31,797
investigative apparatus
of the federal government

921
00:40:31,830 --> 00:40:33,632
to get organized crime.

922
00:40:33,665 --> 00:40:36,001
The hearings are run
by Arkansas Senator

923
00:40:36,034 --> 00:40:37,736
John L. McLelland.

924
00:40:37,769 --> 00:40:38,837
Senator McLelland

925
00:40:38,870 --> 00:40:40,371
and Attorney General
Bobby Kennedy

926
00:40:40,405 --> 00:40:42,808
confront the five
crime families.

927
00:40:44,442 --> 00:40:45,511
The nation's underworld

928
00:40:45,544 --> 00:40:47,979
get's the unwelcome spotlight
of publicity,

929
00:40:48,013 --> 00:40:50,015
as the Senate's
investigation subcommittee

930
00:40:50,048 --> 00:40:52,283
begins new hearings
on crime.

931
00:40:52,317 --> 00:40:55,621
Arkansas Senator
McLelland is at the helm.

932
00:40:55,654 --> 00:40:56,822
*

933
00:40:56,855 --> 00:40:59,324
Senator McLelland
was chairman

934
00:40:59,357 --> 00:41:02,861
of the permanent subcommittee
on investigations.

935
00:41:02,894 --> 00:41:06,031
He chose John Kennedy
to be on that committee, also.

936
00:41:06,064 --> 00:41:09,668
Uh, John Kennedy was able
to have, ah, his brother

937
00:41:09,701 --> 00:41:11,670
Bobby Kennedy, uh,
as an attorney,

938
00:41:11,703 --> 00:41:13,539
as-as council
to that committee.

939
00:41:13,572 --> 00:41:15,807
Organized crime,

940
00:41:15,841 --> 00:41:17,843
one of the biggest businesses
in America,

941
00:41:17,876 --> 00:41:19,845
has many faces.

942
00:41:19,878 --> 00:41:22,548
Some are well known,
like that of the gambler,

943
00:41:22,581 --> 00:41:26,918
operating the roulette wheel
which is not only illegal,
but fixed.

944
00:41:26,952 --> 00:41:29,354
Another is that
of the narcotics peddler,

945
00:41:29,387 --> 00:41:31,823
trading on the misery
of the poor.

946
00:41:31,857 --> 00:41:33,491
There are other faces,

947
00:41:33,525 --> 00:41:37,495
those of racketeers
who engage in extortion,

948
00:41:37,529 --> 00:41:40,732
prostitution,
corrupt labor relations,

949
00:41:40,766 --> 00:41:42,500
and bootlegging.

950
00:41:42,534 --> 00:41:46,071
The reason racketeering
can flourish in our society

951
00:41:46,104 --> 00:41:48,439
depends, however,
on some other faces

952
00:41:48,473 --> 00:41:50,175
not so well known.

953
00:41:50,208 --> 00:41:51,677
There is
the racket's leader,

954
00:41:51,710 --> 00:41:53,845
seeking protection
from the law.

955
00:41:53,879 --> 00:41:55,213
And there is
the public official

956
00:41:55,246 --> 00:41:57,716
who offers it
for a price,

957
00:41:57,749 --> 00:42:00,852
daily betraying his position
of honor and trust

958
00:42:00,886 --> 00:42:01,953
in his community.

959
00:42:03,722 --> 00:42:05,190
The hearings illustrate

960
00:42:05,223 --> 00:42:07,292
the ruthless behavior
of the mafia,

961
00:42:07,325 --> 00:42:10,228
and its use of violence,
fear, and corruption

962
00:42:10,261 --> 00:42:12,097
to build its business.

963
00:42:12,130 --> 00:42:14,900
He didn't actually say
that he would kill me
in a restaurant,

964
00:42:14,933 --> 00:42:16,768
but he said they would
find my body

965
00:42:16,802 --> 00:42:18,937
off the Belt Parkway,

966
00:42:18,970 --> 00:42:21,139
which was practically
the same thing.

967
00:42:23,274 --> 00:42:24,576
The first mafia witness

968
00:42:24,610 --> 00:42:26,311
to testify
for the government

969
00:42:26,344 --> 00:42:28,546
is Joe Valachi.

970
00:42:28,580 --> 00:42:32,550
The American public
will have a first-hand account
of mafia activities,

971
00:42:32,584 --> 00:42:35,887
in their living rooms,
on national television.

972
00:42:35,921 --> 00:42:38,023
And the man
who welcomed Walter Shaw

973
00:42:38,056 --> 00:42:40,391
into the highest level
of organized crime

974
00:42:40,425 --> 00:42:42,127
in the United States

975
00:42:42,160 --> 00:42:43,494
is now turning
on his own.

976
00:42:44,630 --> 00:42:45,764
These hearings
always attract

977
00:42:45,797 --> 00:42:47,565
a large number
of spectators.

978
00:42:47,599 --> 00:42:49,267
This one is
particularly crowded,

979
00:42:49,300 --> 00:42:50,802
awaiting the first
public appearance

980
00:42:50,836 --> 00:42:52,003
of Joseph Valachi,

981
00:42:52,037 --> 00:42:55,106
the convicted hoodlum
whose confessions to the FBI

982
00:42:55,140 --> 00:42:58,509
have reportedly put a price
of $100,000 on his head

983
00:42:58,543 --> 00:43:00,511
by the infuriated mafia.

984
00:43:00,545 --> 00:43:05,250
Ah, Valachi himself, ah,
was a low-echelon individual,

985
00:43:05,283 --> 00:43:06,952
member of the Genovese family,

986
00:43:06,985 --> 00:43:08,754
what they call a-
a soldier.

987
00:43:08,787 --> 00:43:12,590
Uh, he had been imprisoned
in a massive, ah,

988
00:43:12,624 --> 00:43:13,659
uh...

989
00:43:13,692 --> 00:43:16,061
...prosecution of members
of the Genovese family.

990
00:43:16,094 --> 00:43:17,896
While he was in prison,

991
00:43:17,929 --> 00:43:22,000
uh, he was told
that he was marked for death.

992
00:43:22,033 --> 00:43:24,502
Uh, and one day
he sees an inmate

993
00:43:24,535 --> 00:43:26,838
heading towards him
in the prison yard.

994
00:43:26,872 --> 00:43:29,140
Uh, he believes that this
is the inmate, in fact,

995
00:43:29,174 --> 00:43:31,276
who has been chosen
to kill him.

996
00:43:31,309 --> 00:43:34,612
Valachi strikes first,
uh, kills-kills this inmate,

997
00:43:34,646 --> 00:43:36,682
only, of course, to discover
he had- he had killed

998
00:43:36,715 --> 00:43:38,616
the wrong-
the wrong individual.

999
00:43:38,650 --> 00:43:40,318
Whatever trouble
Valachi was in before,

1000
00:43:40,351 --> 00:43:43,655
now he was even
in-in-in more serious trouble.

1001
00:43:43,689 --> 00:43:46,124
Uh, and as a result of that,
he says, you know,

1002
00:43:46,157 --> 00:43:47,492
"I've got a secret, too."

1003
00:43:47,525 --> 00:43:50,328
Valachi betrays
all the crime families:

1004
00:43:50,361 --> 00:43:53,164
Gaetano Gagliano,
Giuseppe Profaci,

1005
00:43:53,198 --> 00:43:55,466
Joseph Bonnano,
Carlos Marcello,

1006
00:43:55,500 --> 00:43:57,969
Sam Giancana,
Vincent Mangano,

1007
00:43:58,003 --> 00:44:01,306
Vito Genovese,
and Carlo Gambino.

1008
00:44:01,339 --> 00:44:03,809
Ah, now there is
a very, very strong feeling

1009
00:44:03,842 --> 00:44:04,876
that Valachi was actually

1010
00:44:04,910 --> 00:44:07,879
paraded before
the McLellan committee

1011
00:44:07,913 --> 00:44:10,515
on behalf of the Federal
Bureau of Investigation.

1012
00:44:10,548 --> 00:44:11,917
The Federal Bureau
of Investigation,

1013
00:44:11,950 --> 00:44:13,819
as we all know,
had been involved

1014
00:44:13,852 --> 00:44:15,386
in illegal wiretaps,

1015
00:44:15,420 --> 00:44:17,622
and they had done that
for decades.

1016
00:44:17,655 --> 00:44:20,058
Uh, so they had all this
wonderful information

1017
00:44:20,091 --> 00:44:22,060
about organized crime,
and they couldn't use it.

1018
00:44:22,093 --> 00:44:25,330
So what they did was,
they debriefed, uh, Valachi.

1019
00:44:25,363 --> 00:44:26,631
And how did they
debrief him?

1020
00:44:26,664 --> 00:44:28,366
They asked him
a lot of questions

1021
00:44:28,399 --> 00:44:30,769
that, in fact, disclosed
what they already knew

1022
00:44:30,802 --> 00:44:32,403
as a result
of these tapes.

1023
00:44:32,437 --> 00:44:35,573
So Valachi comes before-
before this committee,

1024
00:44:35,606 --> 00:44:37,042
filled with information,
in fact,

1025
00:44:37,075 --> 00:44:39,544
that was provided for
by the FBI, uh,

1026
00:44:39,577 --> 00:44:42,180
and begins to talk
about organized crime

1027
00:44:42,213 --> 00:44:43,348
on the highest levels,

1028
00:44:43,381 --> 00:44:45,150
which he couldn't possibly
have known about.

1029
00:44:45,183 --> 00:44:49,087
He was able to name all the
players of the major families

1030
00:44:49,120 --> 00:44:50,521
and who they represented
and what they were,

1031
00:44:50,555 --> 00:44:53,224
how it worked, consiglieres
soldiers and earners

1032
00:44:53,258 --> 00:44:55,426
and, you know, associates
and, uh, you know...

1033
00:44:55,460 --> 00:44:57,829
he really labeled it all.

1034
00:44:57,863 --> 00:44:59,831
He really broke it up
for Americans,

1035
00:44:59,865 --> 00:45:01,933
showed 'em how
it all worked.

1036
00:45:01,967 --> 00:45:06,204
Joe Valachi, Walter Shaw's
original crime family contact,

1037
00:45:06,237 --> 00:45:08,774
is now the most wanted
man in America

1038
00:45:08,807 --> 00:45:11,576
by five mafia crime families.

1039
00:45:11,609 --> 00:45:15,013
Collectively known
as La Cosa Nostra.

1040
00:45:15,046 --> 00:45:17,382
Valachi breaks
his sacred vow

1041
00:45:17,415 --> 00:45:21,219
according to the Sicilian
code of omertà.

1042
00:45:21,252 --> 00:45:25,056
Omertà, which has its roots
in the Italian word for "man,"

1043
00:45:25,090 --> 00:45:26,758
means literally being a man.

1044
00:45:26,792 --> 00:45:29,294
Now of course, a man does
not go to the authorities.

1045
00:45:29,327 --> 00:45:31,429
If somebody does harm to
him or his families,

1046
00:45:31,462 --> 00:45:33,765
he takes care of its, uh,
of it himself.

1047
00:45:33,799 --> 00:45:36,467
It, it means actually much
more than a code of silence.

1048
00:45:36,501 --> 00:45:40,105
It's the code of being a man
in the machismo sense.

1049
00:45:40,138 --> 00:45:41,940
Uh, how, how did you
happen to go into

1050
00:45:41,973 --> 00:45:42,908
the union business?

1051
00:45:42,941 --> 00:45:44,409
The local 19?

1052
00:45:44,442 --> 00:45:46,711
I respectfully decline
to answer

1053
00:45:46,744 --> 00:45:48,479
because I honestly believe
my answer

1054
00:45:48,513 --> 00:45:50,115
might tend
to incriminate me.

1055
00:45:50,148 --> 00:45:53,418
I "respectiful" decline to
answer the question.

1056
00:45:53,451 --> 00:45:54,786
Did you feel that
the working man

1057
00:45:54,820 --> 00:45:56,421
was having a difficult time
that you could help

1058
00:45:56,454 --> 00:45:58,289
and assist him?

1059
00:45:58,323 --> 00:46:00,992
I respectfully decline
to answer.

1060
00:46:02,460 --> 00:46:04,129
I refuse to answer
on the grounds

1061
00:46:04,162 --> 00:46:06,231
that it may tend to
incriminate me.

1062
00:46:06,264 --> 00:46:08,266
I respectfully decline
to answer

1063
00:46:08,299 --> 00:46:09,734
because I honestly believe

1064
00:46:09,767 --> 00:46:11,569
my answer might tend
to incriminate me.

1065
00:46:11,602 --> 00:46:13,738
I respectfully decline to
answer

1066
00:46:13,771 --> 00:46:15,140
because I honestly believe

1067
00:46:15,173 --> 00:46:16,374
my answer might tend
to incriminate--

1068
00:46:16,407 --> 00:46:19,144
Are you a racketeer
and gangster?

1069
00:46:19,177 --> 00:46:21,947
Walter Shaw takes his
14-year-old son, Thiel,

1070
00:46:21,980 --> 00:46:24,950
to the senate hearing on the
day he must testify.

1071
00:46:24,983 --> 00:46:28,419
Thiel catches Joe Valachi's
eye and waves.

1072
00:46:28,453 --> 00:46:30,421
Valachi ignores him.

1073
00:46:30,455 --> 00:46:32,157
He asks his father.

1074
00:46:32,190 --> 00:46:33,691
I ask why he wasn't coming
over to say hello,

1075
00:46:33,724 --> 00:46:35,493
and he says he can't.

1076
00:46:35,526 --> 00:46:38,163
Cause I didn't know any
different. What did I know?

1077
00:46:38,196 --> 00:46:39,530
I didn't know the difference
between the good guys

1078
00:46:39,564 --> 00:46:40,631
and the bad guys.
They were all,

1079
00:46:40,665 --> 00:46:41,833
all in the same room.

1080
00:46:41,867 --> 00:46:43,935
In what can only be described

1081
00:46:43,969 --> 00:46:46,537
as one of life's cruel ironies,

1082
00:46:46,571 --> 00:46:49,374
Young Thiel Shaw
encounters Carlo Gambino

1083
00:46:49,407 --> 00:46:52,844
in the senate chamber hallway
during the hearing.

1084
00:46:52,878 --> 00:46:56,481
Carlo Gambino, head of
the Gambino crime family,

1085
00:46:56,514 --> 00:47:00,886
is active in racketeering,
gambling, extortion, drugs,

1086
00:47:00,919 --> 00:47:04,289
prostitution,
and murder for hire.

1087
00:47:04,322 --> 00:47:07,392
Carlo Gambino shares
his personal point of view

1088
00:47:07,425 --> 00:47:09,460
with young Thiel Shaw.

1089
00:47:09,494 --> 00:47:13,331
He says, Thiel, he says,
remember one thing

1090
00:47:13,364 --> 00:47:14,665
about all these people

1091
00:47:14,699 --> 00:47:15,867
and these senators and
these lawyers

1092
00:47:15,901 --> 00:47:17,168
and these judges,

1093
00:47:18,369 --> 00:47:21,372
they have a license to steal
and we don't need one.

1094
00:47:21,406 --> 00:47:23,041
They're the bad guys,
not us.

1095
00:47:23,074 --> 00:47:24,442
Your dad's a good man.

1096
00:47:25,676 --> 00:47:28,880
It's Walter Shaw's turn
to testify.

1097
00:47:28,914 --> 00:47:31,482
He had halted making
the black boxes,

1098
00:47:31,516 --> 00:47:34,685
so he has no money
and no attorney.

1099
00:47:34,719 --> 00:47:37,322
Senator McClellan
questions him

1100
00:47:37,355 --> 00:47:41,092
and Walter Shaw
makes a fatal error.

1101
00:47:41,126 --> 00:47:42,894
They had all
the head officials

1102
00:47:42,928 --> 00:47:44,362
that worked with my father
at Bell

1103
00:47:44,395 --> 00:47:46,431
were there,
testifying against him.

1104
00:47:46,464 --> 00:47:48,199
And they had told him
he'd made this,

1105
00:47:48,233 --> 00:47:50,535
he had made the very first
alarm that called the police.

1106
00:47:50,568 --> 00:47:52,370
He had another pe--
he had another invention

1107
00:47:52,403 --> 00:47:53,271
he was working on.

1108
00:47:53,304 --> 00:47:54,405
They, they asked him
all those things,

1109
00:47:54,439 --> 00:47:56,074
he says, yes,
I'm an inventor.

1110
00:47:56,107 --> 00:47:59,010
And I've got a lot of, uh,
like the speaker phone

1111
00:47:59,044 --> 00:48:01,179
was brought up and
McClellen was impressed.

1112
00:48:01,212 --> 00:48:03,381
He says, I'm very impressed
with your knowledge

1113
00:48:03,414 --> 00:48:04,782
of the telephone system,
how it works.

1114
00:48:04,815 --> 00:48:06,384
He says, you're, you're,
you got a lot of people

1115
00:48:06,417 --> 00:48:09,020
saying you're this
great genius.

1116
00:48:09,054 --> 00:48:11,122
But um...

1117
00:48:11,156 --> 00:48:14,625
They asked him about the
box and my dad took the fall.

1118
00:48:14,659 --> 00:48:17,395
Senator McClellen
to Walter Shaw:

1119
00:48:17,428 --> 00:48:18,964
"I am asking you.

1120
00:48:18,997 --> 00:48:22,300
Is it your intention to plead
the Fifth Amendment?

1121
00:48:22,333 --> 00:48:25,103
Do you feel that it might
tend to incriminate you

1122
00:48:25,136 --> 00:48:27,705
if you answer truthfully
the question:

1123
00:48:27,738 --> 00:48:31,209
Are you the inventor
of such a device?

1124
00:48:31,242 --> 00:48:32,810
Mr Shaw:

1125
00:48:32,843 --> 00:48:36,381
Yes, sir, I am the inventor.

1126
00:48:36,414 --> 00:48:38,749
Shaw apologizes
to McClellen

1127
00:48:38,783 --> 00:48:40,418
and the committee.

1128
00:48:40,451 --> 00:48:42,587
Senator McClellen replies:

1129
00:48:42,620 --> 00:48:47,158
Mr. Shaw, try to go forth
and sin no more."

1130
00:48:47,192 --> 00:48:49,094
Father and son
return to Florida

1131
00:48:49,127 --> 00:48:51,662
where Walter is later
tried and sentenced

1132
00:48:51,696 --> 00:48:53,931
for his complicity
in illegal gambling

1133
00:48:53,965 --> 00:48:56,001
and for unauthorized
attachment

1134
00:48:56,034 --> 00:48:58,003
to Bell telephone lines.

1135
00:48:59,204 --> 00:49:02,140
What did I think? I thought
that, uh, my dad lied to me.

1136
00:49:02,173 --> 00:49:04,475
His kids looked up to me
as a hero because my dad

1137
00:49:04,509 --> 00:49:07,678
was this notorious thing they
painted in the newspapers

1138
00:49:07,712 --> 00:49:09,847
and they lived next door
to me, but it was,

1139
00:49:09,880 --> 00:49:11,983
it was not good.
It was terrible.

1140
00:49:12,017 --> 00:49:13,985
He is given one year
and a day

1141
00:49:14,019 --> 00:49:16,621
in Florida's Dade county
jail.

1142
00:49:16,654 --> 00:49:18,589
He serves 9 months.

1143
00:49:18,623 --> 00:49:19,724
I was with my grandmother,

1144
00:49:19,757 --> 00:49:22,427
his mother was still alive
then. My grandma. My nana.

1145
00:49:22,460 --> 00:49:23,928
And um...

1146
00:49:23,961 --> 00:49:25,963
and she says, well Thiel,
I want you to take me

1147
00:49:25,997 --> 00:49:27,932
to see your dad every week
and I said,

1148
00:49:27,965 --> 00:49:29,834
well, I'll, I'll take you but
I'm not going to see him.

1149
00:49:29,867 --> 00:49:31,536
I didn't see him the whole
time he was locked up.

1150
00:49:31,569 --> 00:49:32,970
Not one time.

1151
00:49:33,004 --> 00:49:35,273
With their many hours on
national television

1152
00:49:35,306 --> 00:49:37,042
in pursuit of mobsters,

1153
00:49:37,075 --> 00:49:39,310
Senators McClellen
and Kefauver

1154
00:49:39,344 --> 00:49:42,713
become national media
celebrities.

1155
00:49:42,747 --> 00:49:45,116
It gets down to
personalities,
now I didn't know.

1156
00:49:45,150 --> 00:49:47,318
It's not, uh, the Senator
McClellen, is it?

1157
00:49:56,161 --> 00:49:58,496
Senator Kefauver becomes
the running mate

1158
00:49:58,529 --> 00:49:59,964
with Adlai Stevenson

1159
00:49:59,997 --> 00:50:03,134
in the 1956 election
for the presidency.

1160
00:50:04,869 --> 00:50:07,505
It's, you know, Valachi kind
of drops off the radar.

1161
00:50:07,538 --> 00:50:08,973
I'm not even quite sure what
happened.

1162
00:50:09,006 --> 00:50:12,177
I know that the man is dead,
you know, of natural causes.

1163
00:50:12,210 --> 00:50:14,079
I don't know what the actual
advantages

1164
00:50:14,112 --> 00:50:15,580
were bestowed on Valachi.

1165
00:50:15,613 --> 00:50:17,348
Uh, he was not prosecuted
for murder,

1166
00:50:17,382 --> 00:50:18,549
which he could have been,

1167
00:50:18,583 --> 00:50:21,252
uh, and he again just goes
off the radar.

1168
00:50:21,286 --> 00:50:23,521
Uh, he was unimportant
prior to him being brought

1169
00:50:23,554 --> 00:50:26,591
before the committee and
returned to his obscurity

1170
00:50:26,624 --> 00:50:29,026
after the committee
hearings.

1171
00:50:29,060 --> 00:50:32,330
Walter Shaw returns home
from prison to find his son

1172
00:50:32,363 --> 00:50:34,932
has changed dramatically.

1173
00:50:34,965 --> 00:50:36,501
He says, well I've been
locked up for nine months

1174
00:50:36,534 --> 00:50:37,368
you didn't even
come see me.

1175
00:50:37,402 --> 00:50:38,603
He says, why?

1176
00:50:40,471 --> 00:50:43,874
Father and son cannot
reconcile.

1177
00:50:43,908 --> 00:50:46,010
He says, I guess you blame
me for all this, huh, Thiel?

1178
00:50:46,043 --> 00:50:48,079
I said, no I blame you
for lying to me.

1179
00:50:48,113 --> 00:50:50,215
We were all upset about
what was happening

1180
00:50:50,248 --> 00:50:53,218
to my, our family and to my
dad in particular

1181
00:50:53,251 --> 00:50:55,886
and he's all of a sudden
infamous.

1182
00:50:55,920 --> 00:50:59,790
His name is being said over
the news stations

1183
00:50:59,824 --> 00:51:02,893
but it's not in a way that we
ever dreamed.

1184
00:51:02,927 --> 00:51:05,096
After Walter's release
from jail,

1185
00:51:05,130 --> 00:51:09,434
he seeks financial partners
to help fund his inventions.

1186
00:51:09,467 --> 00:51:11,236
His struggles continue.

1187
00:51:11,269 --> 00:51:13,571
They had bankrupted
the company

1188
00:51:13,604 --> 00:51:15,039
that had the patents

1189
00:51:15,072 --> 00:51:18,709
cause he transferred them
into the, into the company.

1190
00:51:18,743 --> 00:51:21,612
That was a way of not
paying the, the royalties.

1191
00:51:21,646 --> 00:51:23,047
They could still manufacture,

1192
00:51:23,080 --> 00:51:26,251
still market,
still sell the idea,

1193
00:51:26,284 --> 00:51:29,120
and trash the,
the royalty contract.

1194
00:51:29,154 --> 00:51:31,822
And I told my dad, I says,
you're, you're just not

1195
00:51:31,856 --> 00:51:34,659
gonna let these people
just do what they want.

1196
00:51:34,692 --> 00:51:36,961
He says, well what do you
want me to do?

1197
00:51:36,994 --> 00:51:39,597
And I said, well, what do you
think Archie would do?

1198
00:51:39,630 --> 00:51:41,666
What do you think any
of those guys would do?

1199
00:51:41,699 --> 00:51:43,668
He says, I don't think
the way they do, Thiel.

1200
00:51:43,701 --> 00:51:45,503
I said, well,
if you want their respect

1201
00:51:45,536 --> 00:51:47,305
you gotta put 'em on ice.

1202
00:51:48,539 --> 00:51:50,575
And he says, I don't think
that way.

1203
00:51:50,608 --> 00:51:52,109
So I told him. I says, well
then,

1204
00:51:52,143 --> 00:51:55,480
that's where me and you
divide, cause I would.

1205
00:51:55,513 --> 00:51:56,981
You would?
I said, in a minute.

1206
00:51:57,014 --> 00:51:58,783
I wouldn't blink an eye.
Not a hesitation.

1207
00:51:58,816 --> 00:52:00,117
I wouldn't even
think about it.

1208
00:52:00,151 --> 00:52:02,853
I defend my family
at all cost.

1209
00:52:02,887 --> 00:52:04,522
He said, well,
I, I don't think that way.

1210
00:52:04,555 --> 00:52:05,956
We don't have the same,

1211
00:52:05,990 --> 00:52:08,826
uh, blood running through
our veins then.

1212
00:52:08,859 --> 00:52:10,961
His family is disillusioned.

1213
00:52:10,995 --> 00:52:12,497
Frightened.

1214
00:52:12,530 --> 00:52:14,999
It is more than they
bargained for.

1215
00:52:15,032 --> 00:52:16,834
My brother was talking
on the phone.

1216
00:52:16,867 --> 00:52:18,803
I was standing outside the
room and I came in

1217
00:52:18,836 --> 00:52:21,339
because I heard his voice...

1218
00:52:21,372 --> 00:52:24,609
get higher and higher and
angrier and angrier

1219
00:52:24,642 --> 00:52:27,378
and upset and just,
just in turmoil

1220
00:52:27,412 --> 00:52:30,181
and took the receiver
and he's telling,

1221
00:52:30,215 --> 00:52:32,617
saying, "No, no, no" and...

1222
00:52:32,650 --> 00:52:35,486
he starts beating
his own head

1223
00:52:35,520 --> 00:52:36,987
with the headset

1224
00:52:38,055 --> 00:52:39,657
of the phone

1225
00:52:39,690 --> 00:52:41,892
and he's slamming
his head with it...

1226
00:52:41,926 --> 00:52:44,495
hard, hard, hard...

1227
00:52:44,529 --> 00:52:46,631
and he starts
to go down to the floor

1228
00:52:46,664 --> 00:52:49,734
cause he's beating himself
in the head.

1229
00:52:49,767 --> 00:52:53,170
Beating so hard
that he's losing his balance

1230
00:52:53,204 --> 00:52:55,740
and he's going down
to the floor.

1231
00:52:55,773 --> 00:52:58,042
Once Thiel gets
out of the hospital,

1232
00:52:58,075 --> 00:53:00,077
it isn't long
before he goes hunting

1233
00:53:00,110 --> 00:53:02,079
for Archie Gianunzio.

1234
00:53:02,112 --> 00:53:03,981
Knowing Archie is
connected,

1235
00:53:04,014 --> 00:53:08,486
Thiel uses him as his back
door into organized crime.

1236
00:53:08,519 --> 00:53:10,821
Over the coming years,
Walter Shaw

1237
00:53:10,855 --> 00:53:14,425
continues inventing with
hopes of finding backers.

1238
00:53:14,459 --> 00:53:17,695
Thiel seeks solace
in revenge.

1239
00:53:17,728 --> 00:53:20,331
He begins to work his way
up the crime ladder,

1240
00:53:20,365 --> 00:53:23,568
working for associates
of Archie Gianunzio.

1241
00:53:23,601 --> 00:53:26,070
At first he does deliveries
for the mob.

1242
00:53:26,103 --> 00:53:27,872
He learns the business.

1243
00:53:27,905 --> 00:53:29,840
He resented the rich,

1244
00:53:29,874 --> 00:53:35,079
and that resentment would
grow to a point where

1245
00:53:35,112 --> 00:53:38,949
he lost his, his uh.
sensibilities about...

1246
00:53:38,983 --> 00:53:43,220
what was right and wrong,
but for him, anger took over.

1247
00:53:54,432 --> 00:53:58,068
In 1956, a company
named Hush-A-Phone

1248
00:53:58,102 --> 00:54:00,771
attaches their equipment
to Bell lines.

1249
00:54:00,805 --> 00:54:03,774
They are halted immediately
and charges are filed

1250
00:54:03,808 --> 00:54:06,377
for illegal attachment.

1251
00:54:06,411 --> 00:54:08,713
Well the Hush-A-Phone
case was very important

1252
00:54:08,746 --> 00:54:10,981
for competitive telephony
because

1253
00:54:11,015 --> 00:54:13,217
it cracked the door open

1254
00:54:13,250 --> 00:54:16,754
for attachment of
non-Western Electric

1255
00:54:16,787 --> 00:54:21,559
or non-Bell devices to
AT&T's telephone network.

1256
00:54:21,592 --> 00:54:23,661
The courts rule against Bell.

1257
00:54:23,694 --> 00:54:26,897
Bell Telephone Tariffs
on the Hush-A-Phone device

1258
00:54:26,931 --> 00:54:28,633
are unwarranted
interference

1259
00:54:28,666 --> 00:54:32,069
with telephone subscriber's
right to use his telephone

1260
00:54:32,102 --> 00:54:34,739
in ways which
are privately beneficial

1261
00:54:34,772 --> 00:54:37,107
without being detrimental.

1262
00:54:37,141 --> 00:54:38,776
In 1968,

1263
00:54:38,809 --> 00:54:41,278
Carterfone attaches
their equipment

1264
00:54:41,312 --> 00:54:43,280
to Bell telephone lines.

1265
00:54:43,314 --> 00:54:46,283
Once again,
Bell halts their business

1266
00:54:46,317 --> 00:54:47,885
and charges are filed

1267
00:54:47,918 --> 00:54:52,156
stating Carterfone illegally
attached to their lines.

1268
00:54:52,189 --> 00:54:57,194
Carterfone decision was
very important in 1968.

1269
00:54:57,227 --> 00:55:00,197
It opened the door a little bit
wider for competition

1270
00:55:00,230 --> 00:55:02,333
with the Bell system.

1271
00:55:02,367 --> 00:55:04,702
Uh, they had already
become the largest

1272
00:55:04,735 --> 00:55:07,705
monopoly, largest
corporation in the world.

1273
00:55:07,738 --> 00:55:11,008
So Carterfone was an
acoustically coupled device

1274
00:55:11,041 --> 00:55:13,978
for the purposes
of transmitting data

1275
00:55:14,011 --> 00:55:16,046
over a telephone network.

1276
00:55:16,080 --> 00:55:19,517
So it was a device that you
would take a handset

1277
00:55:19,550 --> 00:55:21,619
and set it inside of it

1278
00:55:21,652 --> 00:55:24,622
and you could transmit
and receive

1279
00:55:24,655 --> 00:55:28,526
via a device that, uh,
touched the network,

1280
00:55:28,559 --> 00:55:30,561
but without any electrical
connection.

1281
00:55:30,595 --> 00:55:34,031
By the 70s, uh, the courts
had become impatient

1282
00:55:34,064 --> 00:55:37,234
with these big monopolies
and again,

1283
00:55:37,267 --> 00:55:40,905
the FCC upheld AT&T
on Carterfone

1284
00:55:40,938 --> 00:55:45,009
and the courts overturned,
uh, the FCC and said,

1285
00:55:45,042 --> 00:55:47,712
this is ridiculous.
You've got to allow

1286
00:55:47,745 --> 00:55:49,814
foreign attachments
onto the network.

1287
00:55:49,847 --> 00:55:51,849
Both courts handed
down decisions

1288
00:55:51,882 --> 00:55:53,718
in favor of the defendants,

1289
00:55:53,751 --> 00:55:55,886
stating that they may attach
equipment

1290
00:55:55,920 --> 00:55:57,722
to the Bell telephone lines

1291
00:55:57,755 --> 00:56:01,759
as long as attachments were
not damaging Bells service.

1292
00:56:01,792 --> 00:56:05,696
These cases are watershed
moments and a turning point

1293
00:56:05,730 --> 00:56:09,166
for telecommunications
in America.

1294
00:56:09,199 --> 00:56:13,938
But in 1972, they do not help
Walter Shaw.

1295
00:56:13,971 --> 00:56:17,041
In Florida, Shaw makes
another mistake.

1296
00:56:17,074 --> 00:56:18,943
This time he uses
Bell phonelines

1297
00:56:18,976 --> 00:56:21,278
to test a tone generator.

1298
00:56:21,311 --> 00:56:23,914
Bell's own internal
security force

1299
00:56:23,948 --> 00:56:26,884
and is watching Shaw
and listening.

1300
00:56:26,917 --> 00:56:28,886
He is arrested again.

1301
00:56:28,919 --> 00:56:33,858
My dad had an uncanny
ability to understand...

1302
00:56:33,891 --> 00:56:35,860
the telephone system.

1303
00:56:35,893 --> 00:56:38,763
He was a threat. He was a
threat to the day he died.

1304
00:56:38,796 --> 00:56:40,130
During his trial,

1305
00:56:40,164 --> 00:56:43,067
Walter's lawyer argues that
Bell has a vendetta

1306
00:56:43,100 --> 00:56:44,869
against his client.

1307
00:56:44,902 --> 00:56:47,472
Bell argues that
he made phone calls

1308
00:56:47,505 --> 00:56:49,474
bouncing off Bell lines.

1309
00:56:49,507 --> 00:56:51,241
They file charges against
him

1310
00:56:51,275 --> 00:56:53,578
for theft of four
telephone calls

1311
00:56:53,611 --> 00:56:55,913
and for illegal attachment.

1312
00:56:55,946 --> 00:56:57,715
Shaw reiterates to the court

1313
00:56:57,748 --> 00:57:00,785
that he was only testing
his equipment.

1314
00:57:00,818 --> 00:57:04,421
His objection falls
on deaf ears.

1315
00:57:04,455 --> 00:57:08,292
Walter Shaw is sentenced to
four years in federal prison.

1316
00:57:08,325 --> 00:57:10,227
It amounts to one year
in prison

1317
00:57:10,260 --> 00:57:13,330
for each alleged phone call.

1318
00:57:13,363 --> 00:57:16,634
In the mean time, with
Archie Gianunzio's help,

1319
00:57:16,667 --> 00:57:19,269
his son, Thiel, continues
to move up the ladder

1320
00:57:19,303 --> 00:57:20,938
of organized crime.

1321
00:57:20,971 --> 00:57:22,840
So we can, we can
completely understand.

1322
00:57:22,873 --> 00:57:25,109
Not agree with it
necessarily,
but understand

1323
00:57:25,142 --> 00:57:28,345
why individuals living in a,
uh, in depressed economic

1324
00:57:28,378 --> 00:57:29,980
conditions being
discriminated against

1325
00:57:30,014 --> 00:57:32,783
would, uh, find organized
crime attractive

1326
00:57:32,817 --> 00:57:34,752
as...economically.

1327
00:57:34,785 --> 00:57:38,088
I was very bitter
at my dad's...

1328
00:57:38,122 --> 00:57:39,356
lack of business sense

1329
00:57:39,389 --> 00:57:42,660
and lack of sticking up
for himself.

1330
00:57:42,693 --> 00:57:43,761
And I knew he could

1331
00:57:43,794 --> 00:57:45,930
cause you,
I've seen it before.

1332
00:57:45,963 --> 00:57:48,032
He was angry at daddy,

1333
00:57:48,065 --> 00:57:49,700
he was angry at the world,

1334
00:57:49,734 --> 00:57:52,202
he was angry at the rich,

1335
00:57:52,236 --> 00:57:54,939
why shouldn't,
why can't that be us?

1336
00:57:54,972 --> 00:57:57,675
My dad deserves that,
you know, well...

1337
00:57:57,708 --> 00:58:01,546
I think one of the,
the biggest effects

1338
00:58:01,579 --> 00:58:05,149
on my brother's life that
changed, changed him so

1339
00:58:05,182 --> 00:58:08,452
was to have this wonderful
man that had taught us

1340
00:58:08,485 --> 00:58:10,621
the true meaning of
integrity.

1341
00:58:11,689 --> 00:58:13,390
He lied to, to us.

1342
00:58:13,423 --> 00:58:17,695
He lied to my brother
and it changed him.

1343
00:58:17,728 --> 00:58:19,997
The Dinner Set gang
becomes well-known

1344
00:58:20,030 --> 00:58:23,467
to the police when Pete
Salerno, Dominick Latella,

1345
00:58:23,500 --> 00:58:26,470
and their crew including
Thiel Shaw,

1346
00:58:26,503 --> 00:58:28,138
commence robbing
hundreds of homes

1347
00:58:28,172 --> 00:58:29,674
across America.

1348
00:58:29,707 --> 00:58:31,208
The Dinner Set Gang.

1349
00:58:32,910 --> 00:58:35,145
You know we were
professional high rise,

1350
00:58:35,179 --> 00:58:37,147
you know, second story...

1351
00:58:37,181 --> 00:58:39,083
high line thieves.

1352
00:58:39,116 --> 00:58:43,187
Thiel drops his nickname
and takes the name Walter.

1353
00:58:43,220 --> 00:58:45,422
What the Dinner Set Gang
would do was uh,

1354
00:58:45,455 --> 00:58:47,692
after reading these
architectural magazines

1355
00:58:47,725 --> 00:58:50,695
or getting information
from various jewelers

1356
00:58:50,728 --> 00:58:55,232
and fences in the area from
Atlanta to, uh, to Miami

1357
00:58:55,265 --> 00:58:59,069
about the comings and
goings of these individuals.

1358
00:58:59,103 --> 00:59:01,505
They would, uh, they would
go surveil these locations

1359
00:59:01,538 --> 00:59:04,609
and they would set up, uh,
why they say dinner set,

1360
00:59:04,642 --> 00:59:06,010
they would set up
around dinner time

1361
00:59:06,043 --> 00:59:08,378
and observe the comings
and goings

1362
00:59:08,412 --> 00:59:10,547
of that, of that
particular location.

1363
00:59:10,581 --> 00:59:15,219
And one time he, um, he
had uh, ran with

1364
00:59:15,252 --> 00:59:17,454
the older guys in the group,
Peter Salerno,

1365
00:59:17,487 --> 00:59:22,059
Dominick Latella, um, and
Walter had split off with them

1366
00:59:22,092 --> 00:59:25,596
when they found out what
they were stealing from him,

1367
00:59:25,630 --> 00:59:28,866
portions of the profits and
the proceeds that they made

1368
00:59:28,899 --> 00:59:30,901
from the burglaries
they did together.

1369
00:59:30,935 --> 00:59:33,270
Thiel leaves dinner set
to form his own

1370
00:59:33,303 --> 00:59:34,571
younger band of thieves

1371
00:59:34,605 --> 00:59:37,808
using the same method
he learned from them.

1372
00:59:37,842 --> 00:59:39,710
Walter was a little more
sophisticated.

1373
00:59:39,744 --> 00:59:41,578
He was a little bit more
dedicated

1374
00:59:41,612 --> 00:59:43,313
just to doing burglaries.

1375
00:59:43,347 --> 00:59:44,782
He had a younger squad.

1376
00:59:44,815 --> 00:59:46,784
He had a crew
that he had trained.

1377
00:59:46,817 --> 00:59:48,619
Shaw confronts his son

1378
00:59:48,653 --> 00:59:51,121
about the direction
his life has taken.

1379
00:59:51,155 --> 00:59:52,422
He says, Thiel, what are you
doing here?

1380
00:59:52,456 --> 00:59:53,624
And I said well, I'm
straightening out

1381
00:59:53,658 --> 00:59:55,626
what you should have done
years ago.

1382
00:59:55,660 --> 00:59:56,627
He says, what's that?

1383
00:59:56,661 --> 00:59:58,829
I said, we got into it anyhow
and he says,

1384
00:59:58,863 --> 01:00:02,566
well uh, if you if you're
doing what I think,

1385
01:00:02,599 --> 01:00:04,468
I'll turn you in myself.

1386
01:00:04,501 --> 01:00:05,736
I said, we're through.

1387
01:00:05,770 --> 01:00:07,271
I said, because see,

1388
01:00:07,304 --> 01:00:10,007
I don't see me
in the way you do.

1389
01:00:10,040 --> 01:00:12,509
I see...a man slaps me
on one cheek,

1390
01:00:12,542 --> 01:00:14,779
I'm gonna slap him on his.

1391
01:00:14,812 --> 01:00:16,480
You know, it's like
the old verbiage...

1392
01:00:16,513 --> 01:00:18,448
you don't go to
a gunfight with a knife.

1393
01:00:18,482 --> 01:00:19,784
So that's the, my philosophy.

1394
01:00:19,817 --> 01:00:23,688
So we just...we pull away
totally at that point.

1395
01:00:23,721 --> 01:00:25,355
We were, we were done.

1396
01:00:36,400 --> 01:00:41,939
MCI files an antitrust suit
against AT&T in 1974.

1397
01:00:41,972 --> 01:00:44,274
While Walter Shaw
is in prison,

1398
01:00:44,308 --> 01:00:46,443
the most important event
in the history

1399
01:00:46,476 --> 01:00:48,946
of telecommunications
has happened.

1400
01:00:48,979 --> 01:00:51,115
The department of justice
is convinced

1401
01:00:51,148 --> 01:00:53,517
MCI is right in their claims
and they follow suit.

1402
01:00:53,550 --> 01:00:57,521
They also file against AT&T.

1403
01:00:57,554 --> 01:01:03,560
The fatal anti-trust case was
filed by MCI in 1974.

1404
01:01:03,593 --> 01:01:04,895
And MCI stood for

1405
01:01:04,929 --> 01:01:06,697
Microwave
Communications Inc.

1406
01:01:06,731 --> 01:01:08,899
It was simply, wanted to
create a link

1407
01:01:08,933 --> 01:01:11,368
between St. Louis and
Chicago using microwave

1408
01:01:11,401 --> 01:01:14,571
and then interconnect into
the AT&T system.

1409
01:01:14,604 --> 01:01:16,340
Uh, so...

1410
01:01:16,373 --> 01:01:20,510
you got not only a change in
the economic climate

1411
01:01:20,544 --> 01:01:22,046
and the interest groups
involved,

1412
01:01:22,079 --> 01:01:24,849
but you also got a change
in a political climate,

1413
01:01:24,882 --> 01:01:27,852
uh, the whole deregulation
theory,

1414
01:01:27,885 --> 01:01:29,887
the deregulation of the
airlines,

1415
01:01:29,920 --> 01:01:32,723
the, both the democrats and
the republicans at that time

1416
01:01:32,757 --> 01:01:34,725
were pro-deregulation.

1417
01:01:34,759 --> 01:01:36,226
And uh, before you knew it,

1418
01:01:36,260 --> 01:01:37,995
you had the justice
department

1419
01:01:38,028 --> 01:01:40,364
supporting this
anti-trust case

1420
01:01:40,397 --> 01:01:43,901
and eventually ordering
the breakup of AT&T.

1421
01:01:43,934 --> 01:01:47,204
While Walter Shaw serves
his time in federal prison,

1422
01:01:47,237 --> 01:01:48,505
others make attempts

1423
01:01:48,538 --> 01:01:50,540
to enter the telephone
business.

1424
01:01:50,574 --> 01:01:52,076
I was thumbing through the
paper one day

1425
01:01:52,109 --> 01:01:56,413
and found a telephone
answering bureau for sale.

1426
01:01:56,446 --> 01:01:59,049
Uh, it was in the town
of Bel, Air Maryland

1427
01:01:59,083 --> 01:02:03,187
and they had, accumulated
about 75 customers.

1428
01:02:03,220 --> 01:02:06,356
At that time,
they provided, um...

1429
01:02:06,390 --> 01:02:09,193
telephone answering
services, which is uh,

1430
01:02:09,226 --> 01:02:12,596
essentially messaging
services for doctors

1431
01:02:12,629 --> 01:02:16,466
and people that needed
emergency communications.

1432
01:02:16,500 --> 01:02:19,603
Ottensmeyer knows
Bell is a monopoly.

1433
01:02:19,636 --> 01:02:22,372
How is it safe to enter
a telephone business

1434
01:02:22,406 --> 01:02:25,976
which requires attachment to
Bell telephone lines?

1435
01:02:26,010 --> 01:02:28,112
Well, it was uh...

1436
01:02:28,145 --> 01:02:31,648
a business that was
sanctioned by, uh, AT&T.

1437
01:02:31,681 --> 01:02:33,951
They provided the
equipment, meaning,

1438
01:02:33,984 --> 01:02:37,121
switchboards, operator
switchboards that we used.

1439
01:02:37,154 --> 01:02:39,389
They provided all the lines,

1440
01:02:39,423 --> 01:02:41,658
and it was an area that

1441
01:02:41,691 --> 01:02:44,795
apparently they did not want
to serve,

1442
01:02:44,829 --> 01:02:48,465
uh, because of probably
the liability associated

1443
01:02:48,498 --> 01:02:51,601
with emergency services.

1444
01:02:51,635 --> 01:02:54,972
So it became a niche
business that...

1445
01:02:55,005 --> 01:02:56,673
uh...

1446
01:02:56,706 --> 01:03:01,078
other entrepreneurs stepped
up to, to fill the shoes.

1447
01:03:01,111 --> 01:03:03,848
Ottensmeyer's business
begins to increase.

1448
01:03:03,881 --> 01:03:06,951
He leases more equipment
from Bell to accommodate

1449
01:03:06,984 --> 01:03:09,119
his growing customer base.

1450
01:03:10,487 --> 01:03:14,959
In March of 1979,
they resided my premise

1451
01:03:14,992 --> 01:03:17,094
with the Maryland
state police

1452
01:03:17,127 --> 01:03:20,965
and telephone company
AT&T security personnel.

1453
01:03:20,998 --> 01:03:24,001
They came in armed with a
search warrant

1454
01:03:24,034 --> 01:03:25,836
and uh...

1455
01:03:25,870 --> 01:03:28,805
the door was open
so they just walked right in

1456
01:03:28,839 --> 01:03:29,874
and...

1457
01:03:29,907 --> 01:03:32,476
one of my operators, uh,
came back and got me.

1458
01:03:32,509 --> 01:03:34,344
It was early in the morning

1459
01:03:34,378 --> 01:03:36,180
and said there's a whole
bunch of people

1460
01:03:36,213 --> 01:03:37,882
and policemen
here to see you.

1461
01:03:37,915 --> 01:03:39,950
They said they were there
to...

1462
01:03:39,984 --> 01:03:44,154
uh, that I had been operating
an illegal telephone service

1463
01:03:44,188 --> 01:03:45,923
with illegal equipment.

1464
01:03:46,924 --> 01:03:48,792
Um, I knew what they were
talking about

1465
01:03:48,825 --> 01:03:52,362
because we had openly
provided this service

1466
01:03:52,396 --> 01:03:54,999
at that time, uh, and what
they ultimately did

1467
01:03:55,032 --> 01:03:58,135
was walk out with
the eight diverters,

1468
01:03:58,168 --> 01:04:01,638
uh, the equipment that we
used to provide the service.

1469
01:04:01,671 --> 01:04:04,741
Suddenly his life
is upside down.

1470
01:04:04,774 --> 01:04:06,176
If Ottensmeyer's company

1471
01:04:06,210 --> 01:04:07,677
was a Bell telephone
customer,

1472
01:04:07,711 --> 01:04:10,247
why would they raid his
home and business?

1473
01:04:10,280 --> 01:04:12,016
It's a mystery to me.

1474
01:04:12,049 --> 01:04:15,019
They they could have asked
me about it at any time.

1475
01:04:15,052 --> 01:04:17,321
They were in the answering
service premise

1476
01:04:17,354 --> 01:04:21,191
maybe three or four times
a week repairing lines,

1477
01:04:21,225 --> 01:04:23,260
hooking up new customers,

1478
01:04:23,293 --> 01:04:24,561
you know, making
adjustments

1479
01:04:24,594 --> 01:04:26,030
to the switchboards.

1480
01:04:26,063 --> 01:04:27,898
The final judgment allows

1481
01:04:27,932 --> 01:04:31,135
the sanctioned emergency
switchboard to continue

1482
01:04:31,168 --> 01:04:33,670
provided Ottensmeyer
does not operate it

1483
01:04:33,703 --> 01:04:36,006
or enter the premises.

1484
01:04:36,040 --> 01:04:38,875
The problem is, the
premises for his business

1485
01:04:38,909 --> 01:04:40,877
happens to be in his home.

1486
01:04:40,911 --> 01:04:42,679
Ottensmeyer is never
allowed

1487
01:04:42,712 --> 01:04:44,848
to set foot there again.

1488
01:04:44,881 --> 01:04:46,683
They did not want me
to compete with them

1489
01:04:46,716 --> 01:04:48,685
and they were...

1490
01:04:48,718 --> 01:04:50,387
afraid they were,
would lose revenue.

1491
01:04:50,420 --> 01:04:52,622
I was considered
a competitor.

1492
01:04:52,656 --> 01:04:55,392
It will take another four
years for Bell's monopoly

1493
01:04:55,425 --> 01:04:57,194
to be undone.

1494
01:04:57,227 --> 01:04:59,129
After his release from
prison,

1495
01:04:59,163 --> 01:05:01,865
Walter Shaw goes
on the road from city to city

1496
01:05:01,898 --> 01:05:04,268
with his inventions
under his arm.

1497
01:05:04,301 --> 01:05:07,904
He maintains his faith
that life will turn around.

1498
01:05:07,938 --> 01:05:10,207
He tells his wife over
and over again,

1499
01:05:10,240 --> 01:05:13,277
I only need one deal
and our life will be better.

1500
01:05:13,310 --> 01:05:16,046
He had people that would
represent his,

1501
01:05:16,080 --> 01:05:19,984
quote, his office,
and sell the servers

1502
01:05:21,518 --> 01:05:23,787
and have people
sign the agreement

1503
01:05:23,820 --> 01:05:26,223
to subscribe to the service.

1504
01:05:26,256 --> 01:05:29,559
But I got the impression
that he,

1505
01:05:29,593 --> 01:05:31,962
it attracted a lot of people

1506
01:05:31,996 --> 01:05:35,299
that were taking advantage
of Walter

1507
01:05:35,332 --> 01:05:37,634
and they were selling
the service,

1508
01:05:37,667 --> 01:05:41,571
but they weren't furnishing
the call system.

1509
01:05:41,605 --> 01:05:44,941
He just was not really,
and I hate to be blunt,

1510
01:05:44,975 --> 01:05:46,643
not a very good
businessman.

1511
01:05:48,145 --> 01:05:51,315
Father and son cannot
reconcile their differences.

1512
01:05:51,348 --> 01:05:54,184
It will be many years
before they meet again.

1513
01:05:54,218 --> 01:05:56,786
It was never really
the same between us

1514
01:05:56,820 --> 01:05:58,522
ever at that point.

1515
01:05:58,555 --> 01:06:00,690
I would, he, I think my dad
was tolerable

1516
01:06:00,724 --> 01:06:03,460
of my decisions

1517
01:06:03,493 --> 01:06:06,363
but I think he was
heartbroken and, and...

1518
01:06:06,396 --> 01:06:08,865
disappointed how
my life was going.

1519
01:06:08,898 --> 01:06:11,168
Thiel has two great kids.

1520
01:06:11,201 --> 01:06:14,504
Uh, my niece and my
nephew and uh,

1521
01:06:14,538 --> 01:06:17,207
we were there
for birthday party

1522
01:06:17,241 --> 01:06:21,345
and Thiely had a beautiful
home in Emerald Hills

1523
01:06:21,378 --> 01:06:24,881
and there was just a group
of us, my mother, my aunt,

1524
01:06:24,914 --> 01:06:26,683
her sister,

1525
01:06:26,716 --> 01:06:31,721
the two kids, and uh, my
brother's former wife

1526
01:06:31,755 --> 01:06:33,190
and um,

1527
01:06:33,223 --> 01:06:37,394
we were sitting in the kitchen
having birthday cake

1528
01:06:37,427 --> 01:06:38,895
and...

1529
01:06:40,030 --> 01:06:42,399
my brother came in the
kitchen door

1530
01:06:42,432 --> 01:06:45,802
and I almost fell off the...
chair.

1531
01:06:45,835 --> 01:06:50,674
He came in with,
uh, two or three of his uh,

1532
01:06:50,707 --> 01:06:52,642
dinner time gang.

1533
01:06:53,677 --> 01:06:58,582
And he had a big sack
like a bad Santa Claus.

1534
01:06:58,615 --> 01:07:02,752
He had a big sack on his
back filled with goodies

1535
01:07:02,786 --> 01:07:04,188
that didn't belong to him

1536
01:07:04,221 --> 01:07:08,058
and he had some
black stuff on his face

1537
01:07:08,092 --> 01:07:09,493
so they wouldn't shine
in the dark.

1538
01:07:09,526 --> 01:07:12,896
That was, that was reality
walking in that door

1539
01:07:12,929 --> 01:07:15,732
as a bad Santa Clause
with a sack on his back.

1540
01:07:15,765 --> 01:07:18,102
I mean, that just stopped
the party right there.

1541
01:07:18,135 --> 01:07:20,104
Thiel and his jewel heist crew

1542
01:07:20,137 --> 01:07:23,407
rob as many as eight homes
per night.

1543
01:07:23,440 --> 01:07:26,910
They hit different states
at different times of the year.

1544
01:07:26,943 --> 01:07:29,413
It is a seasonal business.

1545
01:07:29,446 --> 01:07:31,881
Well  anyway, he
was involved in some major,

1546
01:07:31,915 --> 01:07:37,020
um, major uh, uh, burglaries
and major robberies.

1547
01:07:37,053 --> 01:07:39,623
On, on his own he started
his own, own little crew up,

1548
01:07:39,656 --> 01:07:46,530
you know, and uh, uh, was
also a, there wasn't control

1549
01:07:46,563 --> 01:07:49,133
but he also had participated
with some major

1550
01:07:49,166 --> 01:07:50,467
organized crime individuals

1551
01:07:50,500 --> 01:07:52,869
in the selling
the jewelry

1552
01:07:52,902 --> 01:07:55,905
or whatever they, that they
were involved in.

1553
01:07:55,939 --> 01:07:59,743
He did something one time
that really hurt me and...

1554
01:08:01,778 --> 01:08:04,448
I had an answer, uh, I had
a knock at the door one day,

1555
01:08:04,481 --> 01:08:06,483
late, late as I remember it,

1556
01:08:07,917 --> 01:08:09,653
and uh...

1557
01:08:10,654 --> 01:08:13,757
he said would you keep
some stuff for me?

1558
01:08:13,790 --> 01:08:15,592
Just for a little while?

1559
01:08:17,327 --> 01:08:18,428
And I said what stuff?

1560
01:08:18,462 --> 01:08:20,297
He said, just, just some
things

1561
01:08:20,330 --> 01:08:24,168
and, and things are kinda
hot right now.

1562
01:08:24,201 --> 01:08:25,769
And um...

1563
01:08:25,802 --> 01:08:27,003
I said okay...

1564
01:08:27,036 --> 01:08:28,472
what, what are we doing?

1565
01:08:28,505 --> 01:08:32,108
He said, I wanna put it
up in your attic.

1566
01:08:32,142 --> 01:08:33,777
And I said, okay.

1567
01:08:34,911 --> 01:08:38,148
And...I couldn't refuse him.

1568
01:08:39,383 --> 01:08:41,285
But when he left I cried

1569
01:08:41,318 --> 01:08:45,689
because it was the first time
I ever felt unloved.

1570
01:08:45,722 --> 01:08:48,758
I felt like he wasn't
thinking

1571
01:08:48,792 --> 01:08:50,994
that he was putting me
in jeopardy

1572
01:08:51,027 --> 01:08:52,929
because I could have gotten
in trouble

1573
01:08:52,962 --> 01:08:54,631
if the police were following
him

1574
01:08:54,664 --> 01:08:59,603
and I willingly accepted
stolen goods

1575
01:08:59,636 --> 01:09:02,772
and put them up in a safe
place for him.

1576
01:09:02,806 --> 01:09:06,376
An organized crime task
force is set up specifically

1577
01:09:06,410 --> 01:09:08,945
to get Thiel Shaw and crew.

1578
01:09:08,978 --> 01:09:11,715
We were more motivated
when, when they started

1579
01:09:11,748 --> 01:09:14,017
hitting the homes that they
were, they were living in,

1580
01:09:14,050 --> 01:09:15,452
in the area.

1581
01:09:15,485 --> 01:09:17,053
Uh, you know, when they
went to Miami

1582
01:09:17,086 --> 01:09:19,122
or, we wold pass on the
intelligence to other,

1583
01:09:19,155 --> 01:09:21,625
you know, other intelligence
agencies.

1584
01:09:21,658 --> 01:09:25,729
But it was really ticking
the, uh, the, uh, bosses off

1585
01:09:25,762 --> 01:09:28,632
when, when these guys
were hitting local houses,

1586
01:09:28,665 --> 01:09:30,534
right in their own
neighborhood.

1587
01:09:30,567 --> 01:09:32,569
That's when we said that's
it, you know,

1588
01:09:32,602 --> 01:09:34,204
we've had enough and uh,

1589
01:09:34,238 --> 01:09:39,476
we've uh, we've I had a
group of 44 guys under me.

1590
01:09:39,509 --> 01:09:41,711
44 guys in a city our size.

1591
01:09:41,745 --> 01:09:45,315
We had tactical everything
was under me.

1592
01:09:45,349 --> 01:09:47,484
After a 15 year crime spree,

1593
01:09:47,517 --> 01:09:50,720
Thiel is caught by Broward
county detectives.

1594
01:09:50,754 --> 01:09:54,491
He will spend 11 years
in a series of state prisons.

1595
01:09:54,524 --> 01:09:56,159
Florida state prison,

1596
01:09:56,192 --> 01:09:57,927
Lawtey correctional
institution

1597
01:09:57,961 --> 01:09:59,195
and Sumter.

1598
01:09:59,229 --> 01:10:01,931
Walter was indeed probably
the greatest jewel thief

1599
01:10:01,965 --> 01:10:03,267
that ever lived.

1600
01:10:03,300 --> 01:10:04,534
I will still maintain
that I never

1601
01:10:04,568 --> 01:10:05,935
committed that burglary.
Thats right.

1602
01:10:05,969 --> 01:10:08,272
Actually, he was an official
suspect

1603
01:10:08,305 --> 01:10:10,340
in more than 100 burglaries

1604
01:10:10,374 --> 01:10:12,376
when these pictures were
taken

1605
01:10:12,409 --> 01:10:15,912
and suspected on the side in
thousands of others.

1606
01:10:15,945 --> 01:10:19,883
Walter is hated by many
law enforcement officials

1607
01:10:19,916 --> 01:10:22,886
throughout uh,
this tri-county area.

1608
01:10:22,919 --> 01:10:25,855
8 years later, he finishes
his sentence

1609
01:10:25,889 --> 01:10:28,191
at Lawtey correctional
institution.

1610
01:10:28,224 --> 01:10:29,859
As he exits he prison,

1611
01:10:29,893 --> 01:10:32,161
his father is entering the
same one

1612
01:10:32,195 --> 01:10:34,598
for a probation violation.

1613
01:10:34,631 --> 01:10:37,801
Walter Shaw's wife of 44
years, Betty Lou,

1614
01:10:37,834 --> 01:10:39,369
has just died.

1615
01:10:39,403 --> 01:10:41,070
In his depressed state,

1616
01:10:41,104 --> 01:10:44,140
he stops reporting to his
probation officer.

1617
01:10:44,173 --> 01:10:46,743
Walter Shaw is compelled
to serve the balance

1618
01:10:46,776 --> 01:10:48,612
of his prison sentence.

1619
01:10:48,645 --> 01:10:52,849
Thiel loses touch with his
father completely.

1620
01:10:56,653 --> 01:10:57,954
A lifetime.

1621
01:10:58,522 --> 01:10:59,823
Probably...

1622
01:11:01,358 --> 01:11:03,159
20 years, 25 years.

1623
01:11:03,993 --> 01:11:05,795
Somewhere around there.

1624
01:11:05,829 --> 01:11:07,464
We'd run into each other
through the years

1625
01:11:07,497 --> 01:11:08,965
by accident, strictly.

1626
01:11:08,998 --> 01:11:12,636
Like for instance, he, he, he
got violated on probation

1627
01:11:12,669 --> 01:11:14,003
and when he got out

1628
01:11:14,037 --> 01:11:16,973
after my mother died, uh,
he had prostate cancer.

1629
01:11:17,006 --> 01:11:18,074
I didn't know it.

1630
01:11:18,107 --> 01:11:20,109
And the doctor just
happened to be my doctor

1631
01:11:20,143 --> 01:11:22,346
and she calls me from
Beaches hospital and says,

1632
01:11:22,379 --> 01:11:24,414
uh, I just, I just operated
on
a man

1633
01:11:24,448 --> 01:11:27,951
that has prostate cancer
and he's got your name.

1634
01:11:27,984 --> 01:11:29,085
And I said,
is he an older man?

1635
01:11:29,118 --> 01:11:31,488
She says, yeah,
he's slightly older.

1636
01:11:31,521 --> 01:11:32,789
And I says, really?

1637
01:11:32,822 --> 01:11:34,924
I says and what, what'd
you do to him?

1638
01:11:34,958 --> 01:11:37,160
She said I had to
castrate him

1639
01:11:37,193 --> 01:11:40,096
to try to stop the
progression
of his cancer and...

1640
01:11:40,129 --> 01:11:41,498
I said, well I'll come down,
where's it at?

1641
01:11:41,531 --> 01:11:44,834
And I drive to Beaches
hospital and it was my dad.

1642
01:11:44,868 --> 01:11:48,338
And uh, he had just gotten
out of jail, you know.

1643
01:11:48,372 --> 01:11:49,839
And I said, well what are you
doing here?

1644
01:11:49,873 --> 01:11:52,776
And he says, well...
then he got choked up

1645
01:11:52,809 --> 01:11:55,211
and he said I, you know,
they had to castrate me

1646
01:11:55,244 --> 01:11:59,048
and he was a little weak and
groggy from the operation

1647
01:11:59,082 --> 01:12:00,684
and I said, well I'll come
back tomorrow and see you

1648
01:12:00,717 --> 01:12:02,185
and I came back and he was
gone already.

1649
01:12:02,218 --> 01:12:03,387
He'd gone back to Reno.

1650
01:12:04,754 --> 01:12:07,891
With his wife Diana,
Thiel finds his father

1651
01:12:07,924 --> 01:12:09,192
living in a bus station

1652
01:12:09,225 --> 01:12:12,161
broke, starving, and
shattered by life.

1653
01:12:12,195 --> 01:12:15,064
He was the early stages of,
he'd, he told me at the party,

1654
01:12:15,098 --> 01:12:17,667
he said, I have 18 months
left to live.

1655
01:12:17,701 --> 01:12:20,336
And I didn't want us
to die this way.

1656
01:12:37,387 --> 01:12:40,023
On June 13th, 1980,

1657
01:12:40,056 --> 01:12:44,894
a jury in Chicago awards
MCI 1.8 billion dollars

1658
01:12:44,928 --> 01:12:48,832
in damages to be paid
by AT&T.

1659
01:12:48,865 --> 01:12:51,535
For nearly 80 years,
Bell telephone

1660
01:12:51,568 --> 01:12:54,671
vigorously blocked or
eliminated competitors

1661
01:12:54,704 --> 01:12:57,206
from the communications
industry.

1662
01:12:57,240 --> 01:12:59,042
Is that how you feel?
You feel like it was a war?

1663
01:12:59,075 --> 01:13:00,410
Yeah.

1664
01:13:00,444 --> 01:13:01,845
There's no doubt about it.

1665
01:13:01,878 --> 01:13:03,680
Why do you say that?

1666
01:13:03,713 --> 01:13:05,682
We were the good guys
and they weren't.

1667
01:13:05,715 --> 01:13:10,787
Um, they wanted to stop us
from making a living,

1668
01:13:10,820 --> 01:13:12,789
feeding our families,

1669
01:13:12,822 --> 01:13:15,492
bringing good things to
people that helped them

1670
01:13:15,525 --> 01:13:18,061
that they didn't want
to do themselves.

1671
01:13:18,094 --> 01:13:20,029
What did they want to do?

1672
01:13:20,063 --> 01:13:22,065
They wanted to make
money

1673
01:13:22,098 --> 01:13:25,635
and they wanted to control
the telephone system.

1674
01:13:25,669 --> 01:13:29,372
The AT&T system,
uh, had...

1675
01:13:29,405 --> 01:13:32,776
uh, fought it in the 70s.

1676
01:13:32,809 --> 01:13:35,912
They created, uh, a bill,
known as the Bell bill

1677
01:13:35,945 --> 01:13:38,414
in the mid 70s it was, would
have re-legitimated

1678
01:13:38,448 --> 01:13:41,785
monopoly
and reasserted monopoly

1679
01:13:41,818 --> 01:13:43,453
and they were
just hooted down.

1680
01:13:43,487 --> 01:13:46,122
I mean, it was clear by that
time it was AT&T

1681
01:13:46,155 --> 01:13:48,625
versus the rest of the
economy

1682
01:13:48,658 --> 01:13:52,395
and uh, despite the support
of the defense department,

1683
01:13:52,428 --> 01:13:54,964
um, they were indeed
broken up.

1684
01:13:54,998 --> 01:13:58,167
Which is really still quite a
remarkable achievement

1685
01:13:58,201 --> 01:14:02,105
of uh, the Reagan, uh,
anti-trust department,

1686
01:14:02,138 --> 01:14:04,641
that they actually did that.

1687
01:14:04,674 --> 01:14:06,409
Uh, but it was an explosion.

1688
01:14:06,442 --> 01:14:08,444
It was the big bang of
telecom policy.

1689
01:14:08,478 --> 01:14:11,014
It was something that just
completely reset the terms,

1690
01:14:11,047 --> 01:14:13,182
uh, for telecommunications

1691
01:14:13,216 --> 01:14:16,152
uh, for the 21st century.

1692
01:14:16,185 --> 01:14:18,488
In January of 1982,

1693
01:14:18,522 --> 01:14:21,691
AT&T was forced by Judge
Harold H. Green

1694
01:14:21,725 --> 01:14:23,660
to divest itself
of the wholly owned

1695
01:14:23,693 --> 01:14:26,162
Bell telephone operating
companies,

1696
01:14:26,195 --> 01:14:29,465
which halted Walter Shaw
from making a living

1697
01:14:29,499 --> 01:14:31,434
and pursuing his dreams.

1698
01:14:31,467 --> 01:14:37,206
On January 1st, 1984,
the Bell monopoly was dead.

1699
01:14:37,240 --> 01:14:40,043
What exactly was this
marriage of big government

1700
01:14:40,076 --> 01:14:42,011
with big corporation?

1701
01:14:42,045 --> 01:14:44,881
Was this a unique
relationship?

1702
01:14:44,914 --> 01:14:46,349
It was not.

1703
01:14:46,382 --> 01:14:48,618
The marriage of Bell
with the government

1704
01:14:48,652 --> 01:14:52,421
is what economists call
corporatism.

1705
01:14:52,455 --> 01:14:54,190
Fascism is corporatist.

1706
01:14:54,223 --> 01:14:56,225
I mean, there's no,
it's not an extreme,

1707
01:14:56,259 --> 01:14:58,361
fascism was corporatist.

1708
01:14:58,394 --> 01:15:00,530
And Mussolini, uh, was the
one who kind of

1709
01:15:00,564 --> 01:15:03,800
first promoted the idea,

1710
01:15:03,833 --> 01:15:06,202
well the Italian fascists
were the ones who developed

1711
01:15:06,235 --> 01:15:08,004
the idea of corporatism.

1712
01:15:08,037 --> 01:15:10,473
AT&T was the epitome of, uh,

1713
01:15:10,506 --> 01:15:11,675
kind of a corporate
structure.

1714
01:15:11,708 --> 01:15:14,744
You had a very powerful
labor union,

1715
01:15:14,778 --> 01:15:16,980
The Communication
Workers of America.

1716
01:15:17,013 --> 01:15:20,149
You had the biggest
corporation in the world,

1717
01:15:20,183 --> 01:15:21,851
uh, with a monopoly,

1718
01:15:21,885 --> 01:15:23,553
a government sanctioned
monopoly

1719
01:15:23,587 --> 01:15:25,188
and you had them working
very closely

1720
01:15:25,221 --> 01:15:27,824
with the government on
things like uh,

1721
01:15:27,857 --> 01:15:29,926
uh, national security
technologies,

1722
01:15:29,959 --> 01:15:32,195
uh, um...

1723
01:15:32,228 --> 01:15:35,699
wire-tapping, uh you know,
providing information

1724
01:15:35,732 --> 01:15:37,400
to the government about
who was doing what,

1725
01:15:37,433 --> 01:15:40,536
uh, you have a consolidated
stakeholder group.

1726
01:15:40,570 --> 01:15:42,071
This is what big business
wants.

1727
01:15:42,105 --> 01:15:43,539
This is what government
wants.

1728
01:15:43,573 --> 01:15:46,342
This is what the
representatives
of labor want.

1729
01:15:46,375 --> 01:15:47,944
And that's what happens.

1730
01:15:47,977 --> 01:15:50,513
America is a democracy.

1731
01:15:50,546 --> 01:15:53,116
It is a free society.

1732
01:15:53,149 --> 01:15:56,753
Yet it employed a fascist
economic structure.

1733
01:15:56,786 --> 01:15:59,055
But that was 90 years ago.

1734
01:15:59,088 --> 01:16:00,790
The question is...

1735
01:16:00,824 --> 01:16:03,459
can it happen again?

1736
01:16:03,492 --> 01:16:06,562
Today, elements of
corporatism are still active

1737
01:16:06,596 --> 01:16:08,598
in America where
corporations

1738
01:16:08,632 --> 01:16:10,900
representing different
groups exist

1739
01:16:10,934 --> 01:16:15,238
to influence government
legislation through lobbying.

1740
01:16:15,271 --> 01:16:17,707
While these corporations
have no membership,

1741
01:16:17,741 --> 01:16:22,311
in any legislative body, they
wield considerable power.

1742
01:16:22,345 --> 01:16:27,116
American corporatism is
alive and operating today

1743
01:16:27,150 --> 01:16:29,118
as reflected by
the relationships

1744
01:16:29,152 --> 01:16:32,155
between members of the
former Bush administration

1745
01:16:32,188 --> 01:16:35,591
and corporations
such as Halliburton.

1746
01:16:35,625 --> 01:16:38,762
Circumstances like these
further support the notion

1747
01:16:38,795 --> 01:16:41,631
put forth by critics
of capitalism.

1748
01:16:41,665 --> 01:16:44,834
They argue that any form
of capitalism

1749
01:16:44,868 --> 01:16:47,671
will eventually devolve
into corporatism.

1750
01:16:47,704 --> 01:16:49,605
Where concentration
of wealth

1751
01:16:49,639 --> 01:16:51,908
is in fewer and fewer hands.

1752
01:16:51,941 --> 01:16:55,144
The administrations of
presidents Carter, Reagan,

1753
01:16:55,178 --> 01:16:58,081
Bush Sr., Clinton,
and Bush Jr.

1754
01:16:58,114 --> 01:16:59,849
favored deregulation policy

1755
01:16:59,883 --> 01:17:02,418
throughout their
respective terms.

1756
01:17:02,451 --> 01:17:05,989
The idea was to let big
business, big corporations,

1757
01:17:06,022 --> 01:17:09,959
big banks, operate with less
government interference,

1758
01:17:09,993 --> 01:17:11,861
unlike the Bell structure.

1759
01:17:11,895 --> 01:17:16,499
In 1999, the financial
services modernization act

1760
01:17:16,532 --> 01:17:20,169
is enacted in the 106th
United States Congress

1761
01:17:20,203 --> 01:17:21,871
under President Clinton.

1762
01:17:21,905 --> 01:17:24,941
Banks, securities houses,
finance companies,

1763
01:17:24,974 --> 01:17:28,011
and insurance companies
will be allowed to merge

1764
01:17:28,044 --> 01:17:29,979
and consolidate at will.

1765
01:17:30,013 --> 01:17:33,282
Soon, investment brokers
will create and sell

1766
01:17:33,316 --> 01:17:37,186
high risk, virtually
worthless investment products

1767
01:17:37,220 --> 01:17:38,722
to commercial banks

1768
01:17:38,755 --> 01:17:40,656
which will result
in one of the greatest

1769
01:17:40,690 --> 01:17:44,660
economic catastrophes
in American history.

1770
01:17:44,694 --> 01:17:47,630
Uh, the United States
had organized crime

1771
01:17:47,663 --> 01:17:52,301
on a, on a scale that
uh, uh was way, way

1772
01:17:52,335 --> 01:17:54,637
beyond that of what
ethnic groups

1773
01:17:54,670 --> 01:17:57,240
like Italian-Americans and
Jewish-Americans brought.

1774
01:17:57,273 --> 01:17:59,208
Uh, we know the whole story
about the,

1775
01:17:59,242 --> 01:18:00,744
about the robber barons.

1776
01:18:00,777 --> 01:18:02,411
Uh, we know about
the Rockefellers.

1777
01:18:02,445 --> 01:18:04,147
We know about
the Vanderbilts,

1778
01:18:04,180 --> 01:18:06,215
uh, we know about
the people who indeed

1779
01:18:06,249 --> 01:18:09,085
are organized crime
on a, on a, on a level

1780
01:18:09,118 --> 01:18:11,654
uh, that uh, perhaps
is being repeated again,

1781
01:18:11,687 --> 01:18:13,022
uh perhaps being
repeated again

1782
01:18:13,056 --> 01:18:14,657
by corporate America.

1783
01:18:14,690 --> 01:18:17,693
Big business in cooperation
with big government

1784
01:18:17,727 --> 01:18:20,229
worked together to take
the country

1785
01:18:20,263 --> 01:18:22,331
to the brink of disaster.

1786
01:18:23,599 --> 01:18:26,169
How does their
behavior differ

1787
01:18:26,202 --> 01:18:28,104
from the criminal behavior
we know

1788
01:18:28,137 --> 01:18:31,908
as organized crime?

1789
01:18:31,941 --> 01:18:33,709
Well, first of all, the
difference is that they,

1790
01:18:33,743 --> 01:18:35,678
the individuals
who are doing it

1791
01:18:35,711 --> 01:18:37,013
at the corporate level
of America

1792
01:18:37,046 --> 01:18:39,148
are certainly making money
way beyond anything

1793
01:18:39,182 --> 01:18:40,349
ever dreamed of,

1794
01:18:40,383 --> 01:18:43,419
but the kind of organized
crime that titillates all of us,

1795
01:18:43,452 --> 01:18:45,088
uh, American Mafia groups.

1796
01:18:45,121 --> 01:18:46,956
So, thats a, an important
difference.

1797
01:18:46,990 --> 01:18:50,927
Uh, I provide  in
my research, in my books

1798
01:18:50,960 --> 01:18:53,362
a definition of organized
crime.

1799
01:18:53,396 --> 01:18:55,231
I would suggest seven
of those attributes

1800
01:18:55,264 --> 01:18:58,734
could certainly fit all of
the, the corporate

1801
01:18:58,768 --> 01:19:00,603
criminal activities that have
become,

1802
01:19:00,636 --> 01:19:04,040
uh, well known to all of us
as a result of media exposure.

1803
01:19:04,073 --> 01:19:06,575
Perhaps the only one, and I
would have to be cautious

1804
01:19:06,609 --> 01:19:08,978
about saying that we're not
gonna include that one,

1805
01:19:09,012 --> 01:19:13,149
the only one was that the
willingness to use violence.

1806
01:19:13,182 --> 01:19:15,618
Big corporation,
big government,

1807
01:19:15,651 --> 01:19:19,088
big stakeholders,
capitalist, socialist,

1808
01:19:19,122 --> 01:19:21,324
regulate, deregulate.

1809
01:19:21,357 --> 01:19:23,626
In the end, what do these
words mean

1810
01:19:23,659 --> 01:19:25,328
to a democracy?

1811
01:19:25,361 --> 01:19:28,631
What do these words mean
to Walter Shaw?

1812
01:19:28,664 --> 01:19:30,433
These words are ideologies.

1813
01:19:30,466 --> 01:19:34,170
Methods of government,
manipulations of power.

1814
01:19:34,203 --> 01:19:36,072
Economic rationales.

1815
01:19:36,105 --> 01:19:39,642
And they profoundly affect
every level of our society

1816
01:19:39,675 --> 01:19:43,479
for decades,
even centuries at a time.

1817
01:19:43,512 --> 01:19:45,815
While there are no easy
answers to explain

1818
01:19:45,849 --> 01:19:48,284
why we are,
where we are today,

1819
01:19:48,317 --> 01:19:50,019
there are also no easy
answers

1820
01:19:50,053 --> 01:19:52,155
as to what to do about it.

1821
01:19:52,188 --> 01:19:56,092
At very least, as members
of a free society,

1822
01:19:56,125 --> 01:19:58,828
we have the opportunity to
educate,

1823
01:19:58,862 --> 01:20:00,463
to demand truth,

1824
01:20:00,496 --> 01:20:02,966
to object, to reject,

1825
01:20:02,999 --> 01:20:06,602
to demand clarity from those
who serve us,

1826
01:20:06,635 --> 01:20:09,138
supply us, and govern us,

1827
01:20:09,172 --> 01:20:12,575
and to speak up when
wrongs are not righted.

1828
01:20:15,011 --> 01:20:16,812
It's all we've got.

1829
01:20:21,217 --> 01:20:23,586
Winston Churchill said this:

1830
01:20:25,021 --> 01:20:27,623
"We accept in the fullest
sense of the word,

1831
01:20:27,656 --> 01:20:31,460
the settled and persistent
will of the people

1832
01:20:31,494 --> 01:20:34,230
all this idea of a group
of super men

1833
01:20:34,263 --> 01:20:37,666
and super planners making
the masses of the people

1834
01:20:37,700 --> 01:20:39,802
do what they think
is good for them

1835
01:20:39,835 --> 01:20:42,238
without any check
or correction

1836
01:20:42,271 --> 01:20:44,573
is a violation of democracy.

1837
01:20:44,607 --> 01:20:48,411
Many forms of government
have been tried

1838
01:20:48,444 --> 01:20:53,149
and will be tried in this
world of sin and woe.

1839
01:20:53,182 --> 01:20:56,419
No one pretends that
democracy is prefect

1840
01:20:56,452 --> 01:20:58,521
or all wise.

1841
01:20:58,554 --> 01:20:59,688
Indeed,

1842
01:20:59,722 --> 01:21:01,390
it has been said that
democracy

1843
01:21:01,424 --> 01:21:03,426
is the worst form of
government,

1844
01:21:03,459 --> 01:21:05,861
except all those other forms
that have been tried

1845
01:21:05,895 --> 01:21:07,997
from time to time

1846
01:21:08,031 --> 01:21:11,167
but there is the broad
feeling in our country

1847
01:21:11,200 --> 01:21:13,903
that the people should rule

1848
01:21:13,937 --> 01:21:16,239
continuously rule

1849
01:21:16,272 --> 01:21:17,941
and that public opinion

1850
01:21:17,974 --> 01:21:21,077
expressed by all
constitutional means

1851
01:21:21,110 --> 01:21:24,447
should shape, guide, and
control the actions

1852
01:21:24,480 --> 01:21:27,283
of ministers who are their
servants

1853
01:21:27,316 --> 01:21:30,086
and not their masters.

1854
01:21:39,595 --> 01:21:42,265
I says, why do you think
we never benefited?

1855
01:21:42,298 --> 01:21:45,401
I said, what, what do you
think it was all about, dad?

1856
01:21:45,434 --> 01:21:47,303
He said,
I never questioned it.

1857
01:21:47,336 --> 01:21:48,471
I just know I had the gift,

1858
01:21:48,504 --> 01:21:51,607
the ability and the blessing
from God to do what I did

1859
01:21:51,640 --> 01:21:53,376
and I never ever
questioned him

1860
01:21:53,409 --> 01:21:55,811
but he says,
you know what, Thiel?

1861
01:21:55,844 --> 01:21:57,880
It doesn't matter what
anybody says about me

1862
01:21:57,913 --> 01:22:02,218
'cause my inventions will
speak long after I'm gone.

1863
01:22:02,251 --> 01:22:04,487
Walter Shaw
would live to see

1864
01:22:04,520 --> 01:22:07,290
the dismantling
of Bell telephone.

1865
01:22:07,323 --> 01:22:09,959
But many years
too late for him

1866
01:22:09,993 --> 01:22:12,128
and his family.

1867
01:22:12,161 --> 01:22:13,929
- Final question.
- Mmm.

1868
01:22:13,963 --> 01:22:15,331
If your father
walked in here right now,

1869
01:22:15,364 --> 01:22:17,500
what would you say to him?

1870
01:22:19,702 --> 01:22:23,672
Greg, I don't know.
I'd ask for another day.

1871
01:22:23,706 --> 01:22:25,774
And that would be a gift?

1872
01:22:25,808 --> 01:22:27,410
That would be a gift.

1873
01:22:27,443 --> 01:22:31,847
**

1874
01:23:53,896 --> 01:23:56,232
**

1875
01:24:26,162 --> 01:24:29,732
**

1876
01:25:00,963 --> 01:25:06,835
* Isaac and Thorald Koren:
"For One More Day" *

1877
01:25:06,869 --> 01:25:14,843
**

1878
01:27:06,722 --> 01:27:10,926
**

1879
01:28:05,180 --> 01:28:08,684
**

1880
01:29:06,442 --> 01:29:11,914
**

1881
01:30:05,233 --> 01:30:10,573
**

1882
01:30:50,112 --> 01:30:52,280
**