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RE: GTE to acquire Genuity

  • From: Tom Eastgard
  • Date: Fri Nov 14 11:32:05 1997

Would you guys pls take your P!$$ng contest off to another list.

TE

On Fri, 14 Nov 1997, Gordon Cook wrote:

> Rather than speak ONLY to the facts, Rodney can't resist some very nice
> name calling and personal attacks because my criticism has obviously
> offended him. And regardless of what an outsider to the internet might
> think his motives were of course pure.  Let
> the record speak for itself and let the discussion be taken off line and
> NANOG be returned to operational matters.
> 
> Here, in full, is what I published in my sept 97 issue.
> 
> On July 13 Rodney wrote privately to us but for publication:  I've been
> mulling over your request, and I'm not sure how best to answer it. One of
> the misnomers about Genuity is that we're a start up. You'll actually find
> that we were one of the 22 direct connects to the CIX router in Santa
> Clara already in May of 1994, so I'd hardly call Genuity a start up.
> Although we were certainly the smallest, or one of the smallest (Jamie
> Saker out of Wisconsin at Synergy was probably a similar size), we were
> very much in business before the Internet truly became mainstream.
> 
> Anyway, our early allocations were a couple of /24s, and then a 19/. We
> had to plead with Kim Hubbard for another 19/, but were successful in
> getting it only when we promised to be frugal in sub-allocations (she
> didn't ask for empirical evidence). Then Genuity came in to being
> (December 1995 when I sold 75% of the company to Bechtel).
> 
> At that stage, or soon after, things tightened up. We really didn't have
> our act together as far as swipping address space that we had allocated to
> customers, and we began to run out of space. At the NANOG held in DC in
> 1996 all of our pleading with Kim fell on deaf ears.... Justifiably on her
> part (although at the time I felt a 2 x 4 was the best method of improving
> her hearing). So I approached everyone I could for help, including Paul
> Vixie and Jon Postel. Jon was very helpful, cuffing me around the ears and
> telling me to go away and do what the NIC wanted everyone to do, and to
> set an example. So, all of our Network Engineering staff got together, and
> over the course of a week built all the audit tools needed, and SWIPd all
> the addresses we had allocated, developed an ongoing plan and architecture
> for allocating address space, then went back to Kim for more space.
> 
> Kim looked at the SWIP data, tested the integrity, and then agreed to
> allocate us more address space in segments, but only if we agreed to
> return the address space we already had if we wanted to get contiguous
> space allocated (I am a big believer now in CIDR). We have stuck to this
> religiously, and have only been turned down twice since then when we have
> asked for more address space (we had to tighten up more of our sub
> allocations). So we have not really seen any effect of RFC 2050 (I don't
> think) because we were already being very conservative before it was
> published.  We maintain a very strict regime with our customers, and
> actually, although our customers are all corporate users, we commonly
> allocate /27s to them if they cannot justify more space.
> 
> Jon Postel as a 
> Genuity Board Member
> 
> You asked how Jon Postel came to be on our board. As far as I know, it is
> the only board he sits on. He sits in one of my two board positions. He
> helps me provide the Internet's view to the Bechtel side of the board, so
> that the decisions they make are for the Internet, not against it. He
> helps me lend weight to making sure that we help, not hurt. We've funded
> well into 6 figures of software development through Vixie and Associates.
> Jon helped make sure that the board understood that making the
> applications 'freeware' and public domain was a 'good' thing.  Hence
> "Vulture" and " Vulture 2" and Turk, which are available from Vixie's home
> page, and are used by many. Also we've ended up funding indirectly some of
> the other stuff that Paul does, related to bind, etc.
> 
> Jon made it clear, as part of his involvement in  our board, that his
> connection with IANA etc would be one way - he would be looking for a flow
> of help in the other direction only. We've sponsored ISOC at the fullest
> level because of him, we provide significant services to ISI, JPL,
> CalTech, and USC, and on the other hand we have disqualified ourselves
> from opportunities where his influence might have helped (We will *not* be
> applying/bidding to be one of the registrars in the new TLD world unless
> it is clear that the decision making process can be shown demonstrably to
> be untainted by any connection - currently unlikely).
>  
> The interesting thing is that Jon has helped make us a good net citizen in
> an environment where one would believe that a privately held company with
> very deep pockets could have instantly become a major force for the 'dark'
> side.
> 
> You would have to ask Jon for his full motivation, but I will tell you
> that you can spend as much time combing through the records as you want,
> and you will see that all the apparent advantages have accrued on the
> Internet's side. From our side, we have managed to build a solid business,
> based on pretty strong morals and principles, and have attracted some
> pretty good people who also appreciate the fact that we are able to
> operate without having to look over our shoulders. Jon was instrumental in
> this.
> 
> By the way, on the few occasions that I have asked Jon questions where he
> felt a conflict, he has had no hesitation in telling me so. I have
> respected that. I'd say that Genuity owes some significant part of its
> success to being guided well by Jon in the good ways of the Internet. And
> overall I think I can say that the net itself is a better place. [Editor:
> Unfortunately, we did not recall, until we were going to press, that the
> member of a Board of Directors of a corporation has a legal, fiduciary
> reponsibility to that corporation. Thus, contrary to Rodney's assertion
> about Jon's insisting that his membership not benefit Genuity, it could be
> said that, if Jon had information about an action that he would take as
> IANA, and he did not disclose it to Genuity, he might be acting in
> violation of his legal, fiduciary responsibility to Genuity. If Jon served
> on an advisory board, this liability would vanish. Unfortunately the web
> page http://www.genuity.net/about_genuity/officers.html makes it very
> clear he is a full member of the Board of Directors of the corporation. We
> see this as one more example that, filled with good intentions as he may
> be, Jon has gotten in over his head.]
> 
> =========
> November 14, 1997:  since sensitivities are so raw let me make a couple
> more things perfectly clear.  It is my understand that among the original
> generation of internet founders Jon has likely profited from his full
> time dedication to the network far less than any one else.  I have talked
> with a lot of people who for various reasons are unhappy with things that
> Jon has recently done.  However not once has anyone person ever suggested
> that jon did anything for his personal benefit or profit.
> 
> NEVERTHELESS:  with the internet now a multi billion dollar a year global
> industry, the same informal standards of operation for IANA that served
> the internet well up to a couple of years ago are likely inadequate.  IANA
> is perhaps the most critical set of functions in the entire network.  the
> idea that one fallable human being like Jon - however well intentioned he
> may be and I am sure that he is well  intentioned - can be both decision
> maker and court of last resort on issues as contentious as IP allocation
> and DNS - is an idea that is losing credibility.  Given the last two years
> of DNS wars - if I may be allowed to have an opinion of MY own - it is
> especially important that, operating in an arena where most people no
> longer know him personally, Jon must take great care to avoid even the
> APPEARNCE of any conflict of interest.
> 
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> 
> 
> On Fri, 14 Nov 1997, Rodney Joffe wrote:
> 
> > Gordon,
> > 
> > I have to admit that you're right. You really do have all the answers,
> > and you really do know it all.
> > 
> > I guess the fact that there are only two shareholders in Genuity, me and
> > Bechtel, both of whom know exactly what Jon could and couldn't do, and
> > who accepted his conditions when he joined the board, is unimportant.
> > And the fact that Jon knew this, and understood that his fiduciary
> > responsibility in this area was subject *only* to the shareholders, both
> > of whom assured him in terms that he was prepared to accept that they
> > would *not* expect him to or ask him to _abuse_ his position  of trust
> > outside of Genuity to assist Genuity unfairly, is irrelevant.
> > 
> > Gordon, I have never been able to quite fathom out why you chose this
> > industry to attempt to make a living, and not the same industry as the
> > National Enquirer. I think you've missed your calling. I only hope your
> > clients realise the true value of your reporting. 
> > 
> > So that others are privy to the same information that I gave you, let me
> > be specific ( and remember, I don't owe ANYONE an explanation, but I
> > want to undo the damage that your buffoonery has caused);
> > 
> > Bechtel never really had to make a choice about whether Jon joined the
> > board or an advisory board. I nominated him to the board as one of *my*
> > representatives. They didn't know Jon from a hitchiker before this. I
> > wanted someone clueful to help me guide Genuity along a *good* path, and
> > away from the dark side (obviously I passed on asking you). I think I
> > can proudly say that Genuity has been an exemplary internet citizen (I,
> > of course, may not have been). 
> > 
> > So when you attempt to to wind people up with your paranoia, you do
> > someone who has done a lot of good for the Internet over *many* years a
> > grave injustice. Fortunately I care more about what honest, good people
> > like Jerry Scharf says, than I do about what you say. If I didn't, I'd
> > probably spend some real energy telling you what I really think.
> > 
> > Does anyone know if Paul's RBL works on a single netaxs address?
> > 
> > Rodney Joffe
> > Chief Technology Officer
> > Genuity Inc., a Bechtel company
> > http://www.genuity.net
> > 
> > 
> > 
> > > -----Original Message-----
> > > From:	Gordon Cook [SMTP:[email protected]]
> > > Sent:	Thursday, November 13, 1997 11:38 PM
> > > To:	Jerry Scharf
> > > Cc:	[email protected]
> > > Subject:	Re: GTE to acquire Genuity 
> > > 
> > > 
> > > 
> > > 
> > > On Thu, 13 Nov 1997, Jerry Scharf wrote:
> > > 
> > > > Gordon,
> > > > 
> > > > you have the way of spinning the longest line of crappy conjectures
> > > into a 
> > > > proposal of irresponsibility. 
> > > 
> > > false:   you should read what i wrote more carefully before you fly
> > > publicly off t he handle.
> > > 
> > > 
> > > 
> > > I'm sure you could spin an equally long chain of 
> > > > things into a reason why no one from the IAB or IETF ADs should have
> > > anything 
> > > > at stake with the industry they help direct. 
> > > 
> > > 
> > > So IANA has no special powers?
> > > 
> > > 
> > > 
> > > For this particular case, there 
> > > > are facts to prove your conjecture flawed.
> > > > 
> > >  wrong because you misread my conjecture.
> > > 
> > > 
> > > > I was consulting at Genuity when then needed to do their initial IP
> > > address 
> > > > gathering for their new network. They sent in a proposal to Kim, and
> > > Kim told 
> > > > them no. Rodney was very upset at the time, but there was never any 
> > > > interference by the IANA. When Genuity provided better documentation
> > > and 
> > > > cleaned up some things, then they got address blocks like anyone
> > > else.
> > > > 
> > > 
> > > May I quote what you over looked:  Now I am confident that he has not
> > > used
> > > his position to give special benefit to  genuity. 
> > > 
> > > and later in the same post:  Rodney Joffe explained to me in very
> > > glowing
> > > terms this summer why jon
> > > was on the 'board"  his explanation sounded fine. 
> > > 
> > > Further explanation - Rodney Joffe told me precisely the same story
> > > which
> > > i published verbatim.....and more besides.....  jon came out pure as
> > > the
> > > driven snow
> > > 
> > > 
> > > > At least judge Jon by his actions, not by your inferred doubt. The
> > > evidence is 
> > > > that when put in the exact situation you feared, the IANA acted by
> > > not acting. 
> > > > Genuity was not harmed financially by this (I think even Rodney will
> > > now admit 
> > > > that) so there is no damage to be fretted about. Certainly there
> > > will be a 
> > > > tidy profit to Bechtel and the other founders of Genuity.
> > > > 
> > > 
> > > I never suggested genuity was harmed.   I do state that one of the
> > > senior members of the community who knows the laws of the fiduciary
> > > legal
> > > responsibility of members of boards of directors far better than I
> > > pointed out that he believed it possible that a genuity stock holder
> > > who was aware of jons proper from the internet point of view, could
> > > have
> > > taken legal action against jon for NOT making a decision that
> > > benefitted
> > > genuity and using his powers to act for the fiduciary benefit of the
> > > company of which he was a director and for which he had such a legal
> > > responsibility.
> > > 
> > > now I am a r ussian history Phd....read trained as an academic....as
> > > is
> > > jon.....and most academics aren't terribly aware of these
> > > nuances.....so I
> > > can understand jon's accepting the directorship.
> > > 
> > > guess my bitch is why would the presumably legally savvy business
> > > staff
> > > of genuity/bechtel have put jon however unwittingly into such a
> > > position?.
> > > 
> > > I have been told be those who are also my seniors, that Jon is and
> > > "icon"
> > > and when one critcizes him one can expect all hell to break
> > > loose....looks
> > > like my seniors were right.....but it also looks like I owe him no
> > > apology.
> > > 
> > > and before you continue your flame I hope you will look more carefully
> > > at
> > > what I am saying.
> > > 
> > > > I believe you owe Jon a personal apology for this.
> > > > 
> > > > jerry
> > > > 
> > > > 
> > > ======================
> > > read my original post more carefully this time.
> > > 
> > > Last time i looked Jon postel was still on genuity's board.  It is my
> > > understanding that this gives him a LEGAL responsibility  to act in
> > > the
> > > best financial interests of genuity.  Seems to me this creates a
> > > conflict
> > > of interest given what with his powers as IANA he could do to benefit
> > > genuity with IP allocations etc.  Now I am confident that he has not
> > > used
> > > his position to give special benefit to  genuity.  but I am also told
> > > that
> > > he could be regarded as culpable for not having helped them out when
> > > it
> > > could be argued he had the power to do so.  This is a distinction that
> > > I
> > > was slow to grasp and one that jon with a research rather than a
> > > business
> > > background might also be slow to grasp.
> > > 
> > > Rodney Joffe explained to me in very glowing terms this summer why jon
> > > was on the 'board"  his explanation sounded fine.  Point is Jon could
> > > have
> > > had the same impact as a special advisor to the board.  one wonders
> > > why
> > > genuity bechtel attornies that could be expected to be aware of these
> > > issues went with the board choice anyway.
> > > 
> > > does jons board position disappear when genuity is fully acquired?   i
> > > would hope so.
> > 
> 
>