G.E."George" SNIVELY Credit & Collection
WE CALL ALL YOUR BETS

Stage Setting - Curtain, with sign 1956, opens on-

    Peper -What new business do you think is big enough for GE to get into now?
    We aren't going to make Tubes out here.

    McCombs - Oh, it's sort of a small turbine with Christmas tree lights - that plays music.

    Hage -Well, one thing's certain. It may take General Electric a few years to decide 
    to go into a new business, but once we decide, we're going stay and become the leader.

     McCombs - No. But we will have to give Van one to play with and pretend we're using it.

- 1 -

    VanW. - What! s a computer?

    Moran - Hi, Cliff. I've got a real big order for your review (empties
    briefcase looking for order).

    Moran - But fellows I've got to have financial approval in ten minutes 
    so I can accept the order.

    Hage -We can't accept this order. It'll put us over our forecast and we can't 
    have our forecast wrong. 

    Crutchley - Who's the customer?

    Moran -The Peoples First National City Valley Trust Bank. They just merged 
    with the Morgan Chase Guarantee Bank. They're now the second largest in the country.

    Moran - (dejectedly) Re1l.I can't sell it if it's going to cost that much. I'd better 
    tell Sheeley the deal is off,

    Hage -     Hello? Who? Oh, yes Lash, you've talked to Sheeley. According to 
               Cliff the contract will have to be rewritten

                  You won't let engineering and manufacturing spend that much? But 
               they say they can't do it for less.

    Hage - (to Peper) That was Mr. Lasher. He says he "wants the order and it's only going to cost one million. Besides - we aren't going to sell it. We'll rent it.

    Snively - If it's set low enough, I won't have to worry about credit, 
    Even a bank should be good for a few thousand a month.

    Hage - Lash suggested $10 000 a month. That gets our money back in ten years if you 
    forget maintenance costs. Moran - Cliff, how about drawing up a rental contract for me?

    Snively - Renting is a very complicated subject (pause) Our standard agreement 
    should be complicated enough.

    Snively - Oh, no. According to the contract they don't start paying rent
    until they're completely happy.

    Hage -Oh!  - He's looking at actual results. That's wrong. He should be looking 
    at results on an if sold basis. Then he'd understand the situation.

    Crutchley - (reading Wall Street Journal) I see IBM's selling at 50.
    It's a good thing we didn't buy them.

     Steward - No problems with these contracts. We helped write them  
    before the proposals were made.

    Snively - We approved credit right after you told us these customers were prospects. We've had 
    plenty of time to get the information we needed. No problems here.

    Moran -(leaving) Thanks, fellows. Things sure go smoother when I 
    let you know of my problems.

    Hage -These rental orders sure do pyramid. Even with Van's computer we 
   have trouble revising our forecasts fast enough.

    McCombs - I'm going out with Lasher on his yacht. If things are going good we'll stay three months
    instead of two. Do you have the latest results?

    McCombs - (turning to Crutchley) Before I forget it, Wallendorf just called and he needs 
    some money for General Electric to start another new business. 

Pictures from the skit script.

(To be performed? At the GE Computer Department Reunion

San Francisco, October 10, 2006)

DRAFT rev.5

Shoot-out at Hughes Aircraft

A Western Drama in three Acts

The Protagonists: GE & IBM

             Author, Playwright & Director: George Snively

Character                                 Who                                                                 Played by

The Villain                    Buck Rogers IBM Western Region Mgr..                Vic Casebolt

The Hero                      Doc Gale Cleven VP IT Hughes Aircraft                         Nate Norris

Gunslinger #1               George Snively, Mgr. Sales Financing GE                   Joe McGoldrick

Gunslinger #2               Don Benscotter, VP Mrkt. Lease Financing Corp.   George Snively

Deputy #1                    Hughes Security Guard                                     Warren Prince

Deputy #2                    Hughes Security Guard                                     Bill Peake

Sheriff             Old Codger (Cleven’s coffee buddy).                         George Jacobi

The Narrator - Ken Fisher

Props:              2            Tables (one to be used as desk)

                        6              Chairs

                        2            Coffee cups

3                    Telephones (not connected)

2                    Security guard caps

2               Tent signs: “Doc. Gale Cleven”

         “Hughes Aircraft Cafeteria”

                                    Small “sandwich board” signs for the actors –except the security guards.

ACT I    Scene One

            The curtain opens showing a table labeled “Hughes Aircraft Cafeteria”.    There is a man (with a small sandwich board labeled “Old Codger”) sitting there with a cup of coffee.

Narrator :    The Hughes Aircraft Company had long been a bastion of the IBM Company and was totally “Big Blue”.   Paul Shapiro doggedly called on them but could never get passed the receptionist – until Hughes hired a non-IBMer, Doc. Gale Cleven, as VP of IT.    Paul was able to get an appointment with Doc and brought in the 600 team to make a presentation.     Doc. Cleven was impressed and decided to give GE a chance.

You are looking in on Hughes Aircraft’s cafeteria where an old codger is sipping a cup of coffee.  (As an aside: Doc wanted to attend this reunion but recently had a brain tumor removed and didn’t feel quite up to the trip.)

            Doc Cleven holding a cup of coffee ENTERs stage left.    He spots the Old Codger.    

Doc Cleven: “Hello.  Do you mind if I sit with you?”

OC:   “Not at all.   Have a seat”

Cleven sits opposite the Old Codger.

OC:   “You’re new around here aren’t you?”

DC:    “Yes.   I’m the new VP of IT.”

OC:   “Oh?”

DC:    “ Yes.   I was hired to get the computer costs under control.”

OC:      “How’s it going?”

DC:    “Well.   So far I’ve sent enough equipment back to IBM to reduce the monthly rental from $12 to $9 million.”

OC:    “Sounds good.”

DC:    “Yes.   But it hasn’t made IBM very happy with me.”    “See you around”

Cleven gets up and leaves.  

ACT I    Scene Two

Narrator :    This scene takes place several  days later.    Still in the cafeteria.

Cleven holding a cup of coffee, ENTERs stage left.    He spots the Old Codger and goes to sit with him.

OC:      “How are things today?”

DC:      “IBM is giving me fits”

OC:    “So?”

DC:    “We currently have two IBM 7094’s that need replacing.    I’m planning to replace one of them with an IBM 360 and the other with a GE 600.”   After operating them for 24 months I’ll then decide whether to go all IBM or all GE.   

IBM is having a fit about my soliciting proposals from GE.   They have proposed not charging rent on the 7094’s  during the estimated three months to get the 360’s up and running.    This is about $90,000 per 7094.   Of course the rent will continue on the one being replaced with a GE 600 – putting GE at a $90,000 disadvantage.   I can’t eat that $90,000 difference.”

OC:    “What does GE say?”

DC:    “GE has come up with a very creative way to equal IBM’s $90,000 savings through a sale and leaseback of one of the 7094’s.”

OC:    “Good?”

DC:    “It is, except that IBM is refusing to let us assign our purchase option to the leasing company- even though they let their other customers do it.   

Well, I’d better get back to work.   Have a good day.”

Doc Cleven LEAVES and goes to his office – the desk in the center of the stage.

ACT I   Scene Three

                Stage right, shows two people sitting at separate tables (or just on chairs) talking on telephones:

Narrator :    We are eavesdropping on a conversation between Don Benscotter of Lease Financing Corporation and GE’s Manager of Sales Financing – George Snively.   Let’s listen as George is talking.

George Snively:  “Don, as you are aware,  Hughes’ Doc Cleven has set up a two year contest between us and IBM.    We would like to pitch one of your seven-year leases to him – but he is trying to be scrupulously fair in setting up the contest.           

However, I have an idea. We would be amenable to selling the 600 system with an option to return it after 24 months and treat it as if it had been rented if we lose the contest.

Could you handle it as an early termination in a seven-year net lease?  

Don Benscotter:   “I’m sure that we can but I’ll check with our people and have them run the numbers.’

GS     “Good.    Do you think that you could get the word to Cleven that we might be amenable to such a transaction?   We don’t want to appear to be trying to avoid the 24-month contest.”

DB;      “As you may know, following the IBM 7094 deal where we finally forced IBM to assign us the purchase option, I’ve been working with Hughes’ Treasurer and Pat Hyland, the President to finance several other important transactions for Hughes.   I’ve completed the financing for the purchase and lease of their Malibu Research building, and I’m meeting with them tomorrow in LA on another deal they want us to do.    I’ve been planning on dropping in to see Cleven when I’m there.  

                        Not only will I get your proposal to him, but also I think I can make him think it’s his idea.   I’ll remind him that the other week we kicked around various ideas on how he might get the investment tax credit.   He’s intrigued by your term “diamond dollars” and keeps asking how he can get some of them.”   This is one way he can get them.

GS       Sounds good to me.                  

ACT II Scene One

This act takes place in Doc Cleven’s office.

Narrator :    We look in on Doc Cleven in his office while he’s on the phone with George Snively.

DC:                  George, I want you to catch the next plane and get over here.   I’ve got something to discuss with you.    Pause.   

OK, tomorrow will be soon enough if you can’t make it today..    I’ll pick you up at the airport and we’ll go to lunch.   I’m buying as I’m selling you.

ACT II Scene Two

Narrator :            Time flies and we look into Doc Cleven’s office the next day.

George Snively enters stage right and sits down at Cleven’s desk.

GS:    Ok what’s the urgency and why all the mystery?

DC:      I want you to sell the GE 600 system to Lease Financing with an option to rent.

GS:      What?

DC:      Yes.    If the GE equipment is not selected at the end of the 24 months you will refund the purchase price and charge them the 24 months rent.   Hughes will get the investment tax credit and if we keep the equipment we will have the advantage of the much lower seven-year lease rate.   GE will have the use of the cash for two years and save the personal property tax.   It’s a win-win for all three of us.

GS:      Where do you get these crazy ideas?    I’m not sure it makes sense but I’ll go back to Phoenix and put a pencil to it.

DC:      You don’t need to.   I’ve already talked to Don Benscotter about it and he has run the numbers.    Your job is to go back to Phoenix and convince Vern Cooper to take the deal.   If he doesn’t, he’s dumber than I think he is.

GS:      “OK.   I’ll try.”

ACT III Scene One

This act takes place back in the cafeteria where the Old Codger is sitting.

Cleven holding a cup of coffee, ENTERs stage right (from his desk).    Sits down across from the Old Codger.

OC:   “How’s your day going?”

DC:      “Buck Rogers, IBM’s Regional Manager, has heard a rumor that we might be signing a long-term lease on the GE system and he’s madder than a wet hen.    He’s insisting that he meet with my boss and me immediately.    He’s insinuating all kinds of things like bribery and is threatening to get me fired.”

OC:      “Let me introduce myself.    (Turns the sandwich board with the name “Old Codger” around to the side that says, “Howard Hall – Attorney”)  My name is Howard Hall.   I’m Howard Hughes’ personal attorney and I’ve been keeping detailed notes of our conversations and believe that we have a cause of action against IBM for their statements and actions.

In anticipation of such a show down, I’ve prepared instructions for you.”

Hands Cleven a piece of paper.

OC      These are instructions to follow if Mr. Rogers is abusive and threatens your job..

ACT III Scene Two

 Doc Cleven returns to his office.

Enter Buck Rogers

Buck Rogers:     “My sources tell me that you are planning to sign a long term lease on the GE junk.    You know that they don’t know anything about building computers and certainly can’t provide the software that Hughes Aircraft needs.   Only IBM can service your needs.   If you persist in this foolishness, we’ll have to let Howard Hughes know of your incompetence and that you have been taking bribes from Lease Financing.   We’ll have your job.”

Cleven picks up the phone and dials a number.

Cleven:    “Code One”

BR:      “What happened to your plan for conducting a fair 24 month contest?    We went along with the crazy idea because you assured us that you would conduct it fairly.”

Security Guards rush in from the back of the room while Rodgers is complaining.

Cleven : “Please escort Mr. Rogers off of Hughes Aircraft property.”

            Security guards gently, but firmly, pick up Buck Rogers and carry him out of the room.

BR:      As he’s being carried out.  “You can’t do this to me.   I’ll see that Mr. Watson calls Howard Hughes.  You’ll regret this.”

Narrator :     Hughes Aircraft  subsequently ordered TWO GE 600 systems which,  Doc. Cleven recently advised, remained in service for 8 to 10 years.  

 Thus ends another chapter in the fascinating saga of the Computer Department.