Disclosure

Disclosure Page 2

ARTHUR

Tom Sanders never intended to be late for work on Monday, June is. At 7:30 in the morning, he stepped into the shower at his home on Bainbridge Island. He knew he had to shave, dress, and leave the house in ten minutes if he was to make the 7:50 ferry and arrive at work by 8:30, in time to go over the remaining points with Stephanie Kaplan before they went into the meeting with the lawyers from Conley-White. He already had a full day at work, and the fax he had just received from Malaysia made it worse.

Sanders was a division manager at Digital Communications Technology in Seattle. Events at work had been hectic for a week, because DigiCom was being acquired by Conley-White, a publishing conglomerate in New York. The merger would allow Conley to acquire technology important to publishing in the next century.

But this latest news from Malaysia was not good, and Arthur had been right to send it to him at home. He was going to have a problem explaining it to the Conley-White people because they just didn't

"Tom? Where are you? Tom?"

His wife, Susan, was calling from the bedroom. He ducked his head out of the spray.

"I'm in the shower!"

She said something in reply, but he didn't hear it. He stepped out, reaching for a towel. "What?"

"I said, Can you feed the kids?"

His wife was an attorney who worked four days a week at a downtown firm. She took Mondays off, to spend more time with the kids, but she was not good at managing the routine at home. As a result, there was often a crisis on Monday mornings.

"Tom? Can you feed them for me?"

"I can't, Sue," he called to her. The clock on the sink said 7:34. "I'm already late." He ran water in the basin to shave, and lathered his face. He was a handsome man, with the easy manner of an athlete. He touched the dark bruise on his side from the company touch football game on Saturday. Mark Lewyn had taken him down; Lewyn was fast but clumsy. And Sanders was getting too old for touch football. He was still in good shape still within five pounds of his varsity weight-but as he ran his hand through his wet hair, he saw streaks of gray. It was time to admit his age, he thought, and switch to tennis.

Susan came into the morn, still in her bathrobe. His wife always looked beautiful in the morning, right out of bed. She had the kind of fresh beauty that required no makeup. "Are you sure you can't feed them?" she said. "Oh, nice bruise. Very butch." She kissed him lightly, and pushed a fresh mug of coffee onto the counter for him. "I've got to get Matthew to the pediatrician by eight-fifteen, and neither one of them has eaten a thing, and I'm not dressed. Can't you please feed them? Pretty please?" Teasing, she ruffled his hair, and her bathrobe fell open. She left it open and smiled. "I'll owe you one . . ."

"Sue, I can't." He kissed her forehead distractedly. "I've got a meeting, I can't be late."

She sighed. "Oh, all right." Pouting, she left.

Sanders began shaving.

A moment later he heard his wife say, "Okay, kids, let's go! Eliza, put your shoes on." This was followed by whining from Eliza, who was four, and didn't like to wear shoes. Sanders had almost finished shaving when he heard, "Eliza, you put on those shoes and take your brother downstairs right now!" Eliza's reply was indistinct, and then Susan said, "Eliza Ann, I'm talking to you!" Then Susan began slamming drawers in the hall linen closet. Both kids started to cry.

Eliza, who was upset by any display of tension, came into the bathroom, her face scrunched up, tears in her eyes. "Daddy . . . ," she sobbed. He put his hand down to hug her, still shaving with his other hand.

"She's old enough to help out," Susan called, from the hallway.

"Mommy," she wailed, clutching Sanders's leg.

"Eliza, will you cut it out."

At this, Eliza cried more loudly. Susan stamped her foot in the hallway. Sanders hated to see his daughter cry. "Okay, Sue, I'll feed them." He turned off the water in the sink and scooped up his daughter. "Come on, Lize,'' he said, wiping away her tears. "Let's get you some breakfast."

DISCLOSURE

He went out into the hallway. Susan looked relieved. "I just need ten minutes, that's all," she said. "Consuela is late again. I don't know what's the matter with her."

Sanders didn't answer her. His son, Matt, who was nine months old, sat in the middle of the hallway banging his rattle and crying. Sanders scooped him up in his other arm.

"Come on, kids," he said. "Let's go eat."

When he picked up Matt, his towel slipped off, and he clutched at it. Eliza giggled. "I see your penis, Dad." She swung her foot, kicking it.

"We don't kick Daddy there," Sanders said. Awkwardly, he wrapped the towel around himself again, and headed downstairs.

Susan called after him: "Don't forget Matt needs vitamins in his cereal. One dropperful. And don't give him any more of the rice cereal, he spits it out. He likes wheat now." She went into the bathroom, slamming the door behind her.

His daughter looked at him with serious eyes. "Is this going to be one of those days, Daddy?"

"Yeah, it looks like it." He walked down the stairs, thinking he would miss the ferry and that he would be late for the first meeting of the day. Not very late, just a few minutes, but it meant he wouldn't be able to go over things with Stephanie before they started, but perhaps he could call her from the ferry, and then

"Do I have a penis, Dad?"

"No, Lize."

"Why, Dad?"

"That's just the way it is, honey."

"Boys have penises, and girls have vaginas," she said solemnly.

"That's right."

"Why, Dad?"

"Because." He dropped his daughter on a chair at the kitchen table, dragged the high chair from the corner, and placed Matt in it. "What do you want for breakfast, Lize? Rice Krispies or Chex?"

"Chex."

Matt began to bang on his high chair with his spoon. Sanders got the Chex and a bowl out of the cupboard, then the box of wheat cereal and a smaller bowl for Matt. Eliza watched him as he opened the refrigerator to get the milk.

"Dad?"

"What."

"I want Mommy to be happy."

"Me too, honey."

He mixed the wheat cereal for Matt, and put it in front of his son. Then he set Eliza's bowl on the table, poured in the Chex, glanced at her. "Enough?"

"Yes."

He poured the milk for her.

"No, Dada" his daughter howled, bursting into tears. "I wanted to pour the milk!"

"Sorry, Lize-"

"Take it out-take the milk out-" She was shrieking, completely hysterical.

"I'm sorry, Lize, but this is-"

"I wanted to pour the milk." She slid off her seat to the ground, where she lay kicking her heels on the floor. "Take it out, take the milk out!"

His daughter did this kind of thing several times a day. It was, he was assured, just a phase. Parents were advised to treat it with firmness.

"I'm sorry," Sanders said. "You'll just have to eat it, Lize." He sat down at the table beside Matt to feed him. Matt stuck his hand in his cereal and smeared it across his eyes. He, too, began to cry.

Sanders got a dish towel to wipe Matt's face. He noticed that the kitchen clock now said five to eight. He thought that he'd better call the office, to warn them he would be late. But he'd have to quiet Eliza first: she was still on the floor, kicking and screaming about the milk. "All right, Eliza, take it easy. Take it easy." He got a fresh bowl, poured more cereal, and gave her the carton of milk to pour herself. "Here."

She crossed her arms and pouted. "I don't want it."

"Eliza, you pour that milk this minute."

His daughter scrambled up to her chair. "Okay, Dad."

Sanders sat down, wiped Matt's face, and began to feed his son. The boy immediately stopped crying, and swallowed the cereal in big gulps. The poor kid was hungry. Eliza stood on her chair, lifted the milk carton, and splashed it all over the table. "Uh-oh."

"Never mind." With one hand, he wiped the table with the dish towel, while with the other he continued to feed Matt.

Eliza pulled the cereal box right up to her bowl, stared fixedly at the picture of Goofy on the back, and began to eat. Alongside her, Matt ate steadily. For a moment, it was calm in the kitchen.Sanders glanced over his shoulder: almost eight o'clock. He should call the office. Susan came in, wearing jeans and a beige sweater. Her face was relaxed.

"I'm sorry I lost it," she said. "Thanks for taking over."

She kissed him on the cheek.

"Are you happy, Mom?" Eliza said.

"Yes, sweetie." Susan smiled at her daughter, and turned back to Tom.

"I'll take over now. You don't want to be late. Isn't today the big day? When they announce your promotion?"

      "I hope so."

"Call me as soon as you hear."

"I will."

Sanders got up, cinched the towel around his waist, and headed upstairs to get dressed. There was always traffic in town before the 8:20 ferry. He would have to hurry to make it.

He parked in his spot behind Ricky's Shell station, and strode quickly down the covered walkway to the ferry. He stepped aboard moments before they pulled up the ramp. Feeling the throb of the engines beneath his feet, he went through the doors onto the main deck.

"Hey, Tom."

He looked over his shoulder. Dave Benedict was coming up behind him. Benedict was a lawyer with a firm that handled a lot of high-tech companies. "Missed the seven-fifty, too, huh?" Benedict said.

"Yeah. Crazy morning."

"Tell me. I wanted to be in the office an hour ago. But now that school's out, Jenny doesn't know what to do with the kids until camp starts."

"Uh-huh."

"Madness at my house," Benedict said, shaking his head.

There was a pause. Sanders sensed that he and Benedict had had a similar morning. But the two men did not discuss it further. Sanders often wondered why it was that women discussed the most intimate details of their marriages with their friends, while men maintained a discreet silence with one another.

"Anyway," Benedict said. "How's Susan?"

"She's fine. She's great."

Benedict grinned. "So why are you limping?"

"Company touch football game on Saturday. Got a little out of hand."

"That's what you get for playing with children," Benedict said. DigiCom was famous for its young employees.

"Hey," Sanders said. "I scored."

"Is that right?"

"Damn right. Winning touchdown. Crossed the end zone in glory. And then I got creamed."

At the main-deck cafeteria, they stood in line for coffee. "Actually, I would've thought you'd be in bright and early today," Benedict said. "Isn't this the big day at DigiCom?"

Sanders got his coffee, and stirred in sweetener. "How's that?"

"Isn't the merger being announced today?"

"What merger?" Sanders said blandly. The merger was secret; only a handful of DigiCom executives knew anything about it. He gave Benedict a blank stare.

"Come on," Benedict said. "I heard it was pretty much wrapped up. And that Bob Garvin was announcing the restructuring today, including a bunch of new promotions." Benedict sipped his coffee. "Garvin is stepping down, isn't he?"

Sanders shrugged. "We'll see." Of course Benedict was imposing on him, but Susan did a lot of work with attorneys in Benedict's firm; Sanders couldn't afford to be rude. It was one of the new complexities of business relations at a time when everybody had a working spouse.

The two men went out on the deck and stood by the port rail, watching the houses of Bainbridge Island slip away. Sanders nodded toward the house on Wing Point, which for years had been Warren Magnuson's summer house when he was senator.

"I hear it just sold again," Sanders said.

"Oh yes? Who bought it?"

"Some California asshole."

Bainbridge slid to the stern. They looked out at the gray water of the Sound. The coffee steamed in the morning sunlight. "So," Benedict said. "You think maybe Garvin won't step down?"

"Nobody knows," Sanders said. "Bob built the company from nothing, fifteen years ago. When he started, he was selling knockoff modems from Korea. Back when nobody knew what a modem was. Now the company's got three buildings downtown, and big facilities in California, Texas, Ireland, and Malaysia. He builds fax modems the size of a dime, he markets fax and e-mail software, he's gone into CD-ROMs, and he's developed proprietary algorithms that should make him a leading provider in education markets for the next century. Bob's come a long way from some guy hustling three hundred baud modems. I don't know if he can give it up."

"Don't the terms of the merger require it?"

Sanders smiled. "If you know about a merger, Dave, you should tell me," he said. "Because I haven't heard anything." The truth was that Sanders didn't really know the terms of the impending merger. His work involved the development of CD-ROMs and electronic databases. Although these were areas vital to the future of the company-they were the main reason Conley-White was acquiring DigiComthey were essentially technical areas. And Sanders was essentially a technical manager. He was not informed about decisions at the highest levels.

For Sanders, there was some irony in this. In earlier years, when he was based in California, he had been closely involved in management decisions. But since coming to Seattle eight years ago, he had been more removed from the centers of power.

Benedict sipped his coffee. "Well, I hear Bob's definitely stepping down, and he's going to promote a woman as chairman."

Sanders said, "Who told you that?"

"He's already got a woman as CFO, doesn't he?"

"Yes, sure. For a long time, now." Stephanie Kaplan was DigiCom's chief financial officer. But it seemed unlikely she would ever run the company. Silent and intense, Kaplan was competent, but disliked by many in the company. Garvin wasn't especially fond of her.

"Well," Benedict said, "the rumor I've heard is he's going to name a woman to take over within five years."

"Does the rumor mention a name?"

Benedict shook his head. "I thought you'd know. I mean, it's your company.

On the deck in the sunshine, he took out his cellular phone and called in. His assistant, Cindy Wolfe, answered. "Mr. Sanders's office."

"Hi. It's me."

"Hi, Tom. You on the ferry?"

"Yes. I'll be in a little before nine."

"Okay, I'll tell them." She paused, and he had the sense that she was choosing her words carefully. "It's pretty busy this morning. Mr. Garvin was just here, looking for you."

Sanders frowned. "Looking for me?"

"Yes." Another pause. "Uh, he seemed kind of surprised that you weren't in."

"Did he say what he wanted?"

"No, but he's going into a lot of offices on the floor, one after another, talking to people. Something's up, Tom."

"What?"

"Nobody's telling me anything," she said.

"What about Stephanie?"

"Stephanie called, and I told her you weren't in yet."

"Anything else?"

"Arthur Kahn called from KI. to ask if you got his fax."

"I did. I'll call him. Anything else?"

"No, that's about it, Tom."

"Thanks, Cindy." He pushed the END button to terminate the call. Standing beside him, Benedict pointed to Sanders's phone. "Those things are amazing. They just get smaller and smaller, don't they? You guys make that one?"

Sanders nodded. "I'd be lost without it. Especially these days. Who can remember all the numbers? This is more than a telephone: it's my telephone book. See, look." He began to demonstrate the features for Benedict. "It's got a memory for two hundred numbers. You store them by the first three letters of the name." Sanders punched in K-A-H to bring up the international number for Arthur Kahn in Malaysia. He pushed SEND, and heard a long string of electronic beeps. With the country code and area code, it was thirteen beeps.

`Jesus," Benedict said. "Where are you calling, Mars?"

`Just about. Malaysia. We've got a factory there."

DigiCom's Malaysia operation was only a year old, and it was manufacturing the company's new CD-ROM players-units rather like an audio CD player, but intended for computers. It was widely agreed in the business that all information was soon going to be digital, and much of it was going to be stored on these compact disks. Computer programs, databases, even books and magazineseverything was going to be on disk.

The reason it hadn't already happened was that CD-ROMs were notoriously slow. Users were obliged to wait in front of blank screens while the drives whirred and clicked-and computer users didn't like waiting. In an industry where speeds reliably doubled every eighteen months, CD-ROMs had improved much less in the last five years. DigiCom's SpeedStar technology addressed that problem, with a new generation of drives code-named Twinkle (for "Twinkle, twinkle, little SpeedStar"). Twinkle drives were twice as fast as any in the world. Twinkle was packaged as a small, stand-alone multimedia player with its own screen. You could carry it in your hand, and use it on a bus or a train. It was going to be revolutionary. But now the Malaysia plant was having trouble manufacturing the new fast drives.

Benedict sipped his coffee. "Is it true you're the only division manager who isn't an engineer?"

Sanders smiled. "That's right. I'm originally from marketing."

"Isn't that pretty unusual?" Benedict said.

"Not really. In marketing, we used to spend a lot of time figuring out what the features of the new products were, and most of us couldn't talk to the engineers. I could. I don't know why. I don't have a technical background, but I could talk to the guys. I knew just enough so they couldn't bullshit me. So pretty soon, I was the one who talked to the engineers. Then eight years ago, Garvin asked me if I'd run a division for him. And here I am."

The call rang through. Sanders glanced at his watch. It was almost midnight in Kuala Lumpur. He hoped Arthur Kahn would still be awake. A moment later there was a click, and a groggy voice said, "Uh. Hello."

"Arthur, it's Tom."

Arthur Kahn gave a gravelly cough. "Oh, Tom. Good." Another cough. "You got my fax?"

"Yes, I got it."

"Then you know. I don't understand what's going on," Kahn said. "And I spent all day on the line. I had to, with Jafar gone."

Mohammed Jafar was the line foreman of the Malaysia plant, a very capable young man. "Jafar is gone? Why?"

There was a crackle of static. "He was cursed."

"I didn't get that."

"Jafar was cursed by his cousin, so he left."

"What?"

"Yeah, if you can believe that. He says his cousin's sister in Johore hired a sorcerer to cast a spell on him, and he ran off to the Orang Ash witch doctors for a counter-spell. The aborigines run a hospital at Kuala Tingit, in the jungle about three hours outside of KL. It's very famous. A lot of politicians go out there when they get sick. Jafar went out there for a cure."

"How long will that take?"

"Beats me. The other workers tell me it'll probably be a week."

"And what's wrong with the line, Arthur?"

"I don't know," Kahn said. "I'm not sure anything's wrong with the line. But the units coming off are very slow. When we pull units for IP checks, we consistently get seek times above the hundred-millisecond specs. We don't know why they're slow, and we don't know why there's a variation. But the engineers here are guessing that there's a compatibility problem with the controller chip that positions the split optics, and the CD-driver software."

You think the controller chips are bad?" The controller chips were made in Singapore and trucked across the border to the factory in Malaysia.

"Don't know. Either they're bad, or there's a bug in the driver code."

"What about the screen flicker?"

Kahn coughed. "I think it's a design problem, Tom. We just can't build it. The hinge connectors that carry current to the screen are mounted inside the plastic housing. They're supposed to maintain electrical contact no matter how you move the screen. But the current cuts in and out. You move the hinge, and the screen flashes on and off."

Sanders frowned as he listened. "This is a pretty standard design, Arthur. Every damn laptop in the world has the same hinge design. It's been that way for the last ten years."

"I know it," Kahn said. "But ours isn't working. It's making me crazy.

"You better send me some units."

"I already have, DHL. You'll get them late today, tomorrow at the latest."

"Okay," Sanders said. He paused. "What's your best guess, Arthur?"

"About the run? Well, at the moment we can't make our production quotas, and we're turning out a product thirty to fifty percent slower than specs. Not good news. This isn't a hot CD player, Tom. It's only incrementally better than what Toshiba and Sony already have on the market. They're making theirs a lot cheaper. So we have major problems."

"We talking a week, a month, what?"

"A month, if it's not a redesign. If it's a redesign, say four months. If it's a chip, it could be a year."

Sanders sighed. "Great."

"That's the situation. It isn't working, and we don't know why."

Sanders said, "Who else have you told?"

"Nobody. This one's all vours, my friend."

"Thanks a lot."

Kahn coughed. "You going to bury this until after the merger, or what?"

"I don't know. I'm not sure I can."

"Well, I'll be quiet at this end. I can tell you that. Anybody asks me, I don't have a clue. Because I don't."

"Okay. Thanks, Arthur. I'll talk to you later."

Sanders hung up. Twinkle definitely presented a political problem for the impending merger with Conley-White. Sanders wasn't sure how to handle it. But he would have to deal with it soon enough; the ferry whistle blew, and up ahead, he saw the black pilings of Colman Dock and the skyscrapers of downtown Seattle.

DigiCom was located in three different buildings around historic Pioneer Square, in downtown Seattle. Pioneer Square was actually shaped like a triangle, and had at its center a small park, dominated by a wrought-iron pergola, with antique clocks mounted above. Around Pioneer Square were low-rise red-brick buildings built in the early years of the century, with sculpted facades and chiseled dates; these buildings now housed trendy architects, graphic design firms, and a cluster of hightech companies that included Aldus, Advance Holo- and DigiCom. Originally, DigiCom had occupied the Hazzard Building, on the south side of the square. As the company grew, it expanded into three floors of the adjacent Western Building, and later, to the Gorham Tower on James Street. But the executive offices were still on the top three floors of the Hazzard Building, overlooking the square. Sanders's office was on the fourth floor, though he expected later in the week to move up to the fifth.

He got to the fourth floor at nine in the morning, and immediately sensed that something was wrong. There was a buzz in the hallways, an electric tension in the air. Staff people clustered at the laser printers and whispered at the coffee machines; they turned away or stopped talking when he walked by.

He thought, Uh-oh.

But as a division head, he could hardly stop to ask an assistant what was happening. Sanders walked on, swearing under his breath, angry with himself that he had arrived late on this important day.

Through the glass walls of the fourth-floor conference room, he saw Mark Lewyn, the thirty-three-year-old head of Product Design, briefing some of the Conley-White people. It made a striking scene: Lewyn, young, handsome, and imperious, wearing black jeans and a black Armani T-shirt, pacing back and forth and talking animatedly to the blue-suited Conley-White staffers, who sat rigidly before the product mock-ups on the table, and took notes.

When Lewyn saw Sanders he waved, and came over to the door of the conference room and stuck his head out.

"Hey, guy," Lewyn said.

"Hi, Mark. Listen-"

"I have just one thing to say to you," Lewyn said, interrupting. "Fuck 'em. Fuck Garvin. Fuck Phil. Fuck the merger. Fuck 'em all. This reorg sucks. I'm with you on this one, guy."

"Listen, Mark, can you"

"I'm in the middle of something here." Lewyn jerked his head toward the Conley people in the room. "But I wanted you to know how I feel. It's not right, what they're doing. We'll talk later, okay? Chin up, guy," Lewyn said. "Keep your powder dry." And he went back into the conference room.

The Conley-White people were all staring at Sanders through the glass. He turned away and walked quickly toward his office, with a sense of deepening unease. Lewyn was notorious for his tendency to exaggerate, but even so, the -

It's not right, what they're doing.

There didn't seem to be much doubt what that meant. Sanders wasn't going to get a promotion. He broke into a light sweat and felt suddenly dizzy as he walked along the corridor. He leaned against the wall for a moment. He wiped his forehead with his hand and blinked his eyes rapidly. He took a deep breath and shook his head to clear it.

No promotion. Christ. He took another deep breath, and walked on.

Instead of the promotion he expected, there was apparently going to be some kind of reorganization. And apparently it was related to the merger.

The technical divisions had just gone through a major reorganization nine months earlier, which had revised all the lines of authority, upsetting the hell out of everybody in Seattle. Staff people didn't know who to requisition for laser-printer paper, or to degauss a monitor. There had been months of uproar; only in the last few weeks had the tech groups settled down into some semblance of good working routines. Now . . . to reorganize again? It didn't make any sense at all.

Yet it was last year's reorganization that placed Sanders in line to assume leadership of the tech divisions now. That reorganization had structured the Advanced Products Group into four subdivisions Product Design, Programming, Data Telecommunications, and Manufacturing-all under the direction of a division general manager, not yet appointed. In recent months, Tom Sanders had informally taken over as DGM, largely because as head of manufacturing, he was the person most concerned with coordinating the work of all the other divisions.

But now, with still another reorganization . . . who knew what might happen? Sanders might be broken back to simply managing DigiCom's production lines around the world. Or worse for weeks, there had been persistent rumors that company headquarters in Cupertino was going to take back all control of manufacturing from Seattle, turning it over to the individual product managers in California. Sanders hadn't paid any attention to those rumors, because they didn't make a lot of sense; the product managers had enough to do just pushing the products, without also worrying about their manufacture.

But now he was obliged to consider the possibility that the rumors were true. Because if they were true, Sanders might be facing more than a demotion. He might be out of a job.

Christ: out of a job?

He found himself thinking of some of the things Dave Benedict had said to him on the ferry earlier that morning. Benedict chased rumors, and he had seemed to know a lot. Maybe even more than he had been saying.

Is it true you're the only division manager who isn't an engineer?

And then, pointedly:

Isn't that pretty unusual?

Christ, he thought. He began to sweat again. He forced himself to take another deep breath. He reached the end of the fourth-floor corridor and came to his office, expecting to find Stephanie Kaplan, the CFO, waiting there for him. Kaplan could tell him what was going on. But his office was empty. He turned to his assistant, Cindy Wolfe, who was busy at the filing cabinets. "Where's Stephanie?"

"She's not coming."