Obituaries : James E. Olson; Mapped AT&T; Strategy

James E. Olson, the tough and plain-spoken chairman of American Telephone & Telegraph Co. who got his start cleaning manholes, died Monday of cancer. He was 62.

Olson, who had led the world’s largest telecommunications giant since the fall of 1986, had been operated on last month for a tumor in the colon.

AT&T; President Robert E. Allen, who took over after Olson underwent surgery, will continue to direct the company until the board of directors elects a new chairman, company spokeswoman Lynda Beighley said. AT&T;’s directors will hold their annual meeting this week in Denver, but Beighley said she could not say if a chairman will be picked at that time.

Chemotherapy Treatments

Olson became ill with flu on March 18 and had surgery a week later. He returned home April 1 and had been undergoing chemotherapy as an outpatient since that time. He died at his Short Hills, N.J., residence.

“All of us in the company are shocked at the suddenness of Jim’s death,” Allen said in a statement. “He was a dynamic and visionary leader. We will miss him. Our legacy to him will be the vigor with which we carry out the strategic course he laid out for us during his 20 months as our leader.”

Allen, 53, is the company’s president and chief operating officer.

Olson made AT&T; more aggressive, more cost-conscious and more certain of its direction after taking over as chairman Sept. 1, 1986, at a time when the communications monolith was going through a painful transition from regulated telephone company to sophisticated high-technology business.

Years of Drifting

Analysts said the company had drifted in the first years after the breakup of the Bell System on Jan. 1, 1984, when local phone service was split into seven regional Bell holding companies.

Olson, who landed his first job in the Bell system at age 17, was considered a take-charge executive with an emphasis on getting results. Disdaining the fashion of corporate board rooms, the beefy executive wore short-sleeved shirts throughout his career.

“Jim Olson was the ultimate tough guy. . . . I think he instilled a real sense of pride and determination in an AT&T; work force that at that time needed it,” said Jack Grubman, an analyst for Paine Webber Inc.

“I think he leaves AT&T; in good hands,” Grubman said. “If this had happened a year ago, it would have been extremely disruptive.”

Probable Successor

Allen is widely considered to be AT&T;’s almost certain choice as a successor to Olson. “He is a big-picture guy,” Grubman said. “His style is probably more overtly executive (than Olson’s).”

Olson, a native of Devils Lake, N.D., went to work as a splicer’s helper for AT&T; in 1943 with Northwestern Bell Telephone Co. in Grand Forks, N.D. His first job was cleaning the silt from manholes.

Twenty-three years later Olson had moved through the ranks of the company to become vice president and general manager for Iowa. He was transferred to Indiana Bell as vice president for operations in 1970 and became president of that company two years later.

In 1974, Olson assumed the presidency of Illinois Bell and in 1977 became executive vice president of AT&T; headquarters in New York City. He was made president and chief operating officer in June, 1985, after serving as vice chairman of the board since 1979.

Olson was a graduate of the University of North Dakota and served on the boards of many companies, business organizations and charitable groups.

He is survived by his wife, Jean, a son, a daughter, a brother and two sisters.

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