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November 2 in business history: a one-mile flight, a three-hour jury, and a $10,050 fine
2026-11-02

November 2 in business history: a one-mile flight, a three-hour jury, and a $10,050 fine

Three 2 Novembers where a test outran its purpose — the Spruce Goose's one-mile flight in 1947, Penguin's deliberately invited obscenity trial in 1960, and the Morris worm in 1988 — each closing on a dated modern decision mirror.

On This Day in Business History
On This Day in Business History@NeoDrop Official
Three 2 Novembers, and three things meant to be tests.
In 1947 a taxi run on a harbour became a flight. In 1960 a publisher invited a prosecution. In 1988 a graduate student released a program to see how much of a network it could reach.
Each test did the job it was built for. What each one settled was never the question being asked.

A taxi run that became a flight

The H-4 Hercules was a wartime specification with no precedent behind it. 1
Henry Kaiser, the shipbuilder, took the idea to Howard Hughes in 1942. They signed that November for three aircraft in two years. 2
The requirement was 150,000 pounds of payload, or 750 troops, or two Sherman tanks, flown across an Atlantic where U-boats were sinking Allied shipping. 1
Aluminium was a strategic material, so the airframe was laminated birch. That is why the largest aircraft of its day is remembered as the Spruce Goose. 1
Kaiser left the project in 1944, frustrated by the delays, and the order was cut to one aeroplane. 2
By the time it was finished, in 1946, the war was over. 3
Congress wanted proof that it could fly. On 2 November 1947 Hughes ran taxi tests in Long Beach Harbor with 36 people aboard, reporters among them. 1
On the last run of the day he lifted off: about 70 feet above the water, about a mile, 26 seconds at 135 miles an hour. 1
It never flew again. 1
A full-time crew, 300 at first and cut to 50 in 1962, kept it flight-ready in a climate-controlled hangar at about $1 million a year until Hughes died in 1976. 13
Development had cost $23 million, which the museum that now holds the aircraft puts at more than $278 million in today's money. 2
Decision mirror: Boeing moved first delivery of the 777-9 to 2027 on 29 October 2025 and took a $4.9 billion pre-tax charge for the quarter, which cut $6.45 from earnings per share. 4
Kelly Ortberg's statement said the company was "disappointed in the 777X schedule delay" and that "the airplane continues to perform well in flight testing". 4
Both sentences are true at once. The engineering is working. The calendar is what costs money.
Hughes got his proof and never got a customer. Boeing has the customer, and is paying for the years.

The prosecution Penguin asked for

The Obscene Publications Act 1959 took effect on 30 August 1959. It gave a publisher a defence: a work of literary merit published for the public good. 5
Penguin issued the unexpurgated Lady Chatterley's Lover on 16 August 1960 as Penguin Book 1484. 56
Before publication it wrote to the Director of Public Prosecutions and told him what it was about to do. 7
Its usual printer would not touch the job, so a different printer produced the run. 7
The trial opened at the Old Bailey on 20 October 1960 and ran six days. 5
Mervyn Griffith-Jones, for the Crown, asked the jury whether this was "a book that you would even wish your wife or your servants to read?" 5
The defence called 35 witnesses. The prosecution called two. 5
The jury took three hours and returned a unanimous not guilty on 2 November 1960. 5
Penguin had 200,000 copies printed and ready. They sold out on the first day, and two million had gone nationwide a month later. 67
The prosecution was the launch. A publisher cannot buy that much attention for a novel. It has to be indicted to get it.
Decision mirror: On 20 July 2026 a federal judge gave final approval to a $1.5 billion settlement in Bartz v. Anthropic, covering 482,460 books at about $3,000 a work — roughly four times the statutory minimum for wilful infringement. 89
About 91 per cent of the covered works had been claimed. 8
The release covers only how the books were acquired, up to 25 August 2025. Claims about model output and about future conduct stay open. 9
Penguin's exposure was one title and one verdict, and it kept the market it opened. Copying at 482,000 titles is not a test case. It is a price list.

The experiment that measured the network instead

Robert Tappan Morris was a first-year PhD student at Cornell when he wrote the program in October 1988. 10
Its purpose was to show how weak the network's security was. He released it at 8:30 p.m. on 2 November 1988 from a computer at MIT, so that it would not point back to Cornell. 1011
It came in through four doors: a bug in sendmail, a buffer overflow in the finger service, the trusted-hosts setting that let one machine log into another without a password, and password guessing. 10
He wanted it quiet. Because a machine could lie and say it was already infected, he made the worm copy itself every seventh time it was told that. 10
He underestimated how often it would be told. Machines were infected again and again until they stopped. 10
He sent instructions for killing it anonymously from Harvard. The network was too congested for the message to arrive in time. 10
Cleaning one installation cost between $200 and more than $53,000. 10 Clifford Stoll, estimating for the government, put the total between $100,000 and $10 million. 11
Morris was convicted in May 1990: three years' probation, 400 hours of community service, a $10,050 fine, plus the cost of his supervision. 10
The Second Circuit upheld the conviction on 7 March 1991, holding that the government did not have to prove he intended the loss. 10
The number everyone quotes, about 6,000 machines or a tenth of the network, is not a measurement. Paul Graham said it came from guessing that the internet held 60,000 computers and that the worm took a tenth. 11
The experiment measured the network's size, badly, and its author's reach, precisely.
Decision mirror: Jaguar Land Rover detected an intrusion on 1 September 2025, shut its systems, and stopped building cars for about five weeks. 12
The quarter cost it £196 million in exceptional direct expenses and a £485 million loss before tax. 13
The Cyber Monitoring Centre, an independent UK body, modelled the loss to the wider economy at £1.9 billion. The government guaranteed up to £1.5 billion of loans to keep the supplier chain alive. 12
Morris paid $10,050. The sites he hit paid $200 to $53,000 each, and the bill scaled with the number of victims rather than the size of the offence.
JLR's own number was £196 million. The economy's was about ten times that.

Three questions for the day

  1. What are you testing this week, and what would a customer pay for the result?
  2. Which of your risks is priced per incident, and which is priced per victim?
  3. If the thing you release goes wrong, who pays, and have you written that number down?

References

  1. 1
    Hughes H-4 Hercules

    en.wikipedia.org

  2. 2
    The Spruce Goose

    evergreenmuseum.org

  3. 3
    Howard Hughes' 'Spruce Goose' flies

    history.com

  4. 4
    Boeing Reports Third Quarter Results

    investors.boeing.com

  5. 5
    R v Penguin Books Ltd

    en.wikipedia.org

  6. 6
    The book that changed Britain

    penguin.co.uk

  7. 7
    How Lady Chatterley's Lover was banned and became a bestseller

    bbc.com

  8. 8
    Judge approves a $1.5B Anthropic settlement over pirated books

    usnews.com

  9. 9
    Federal Court Approves $1.5 Billion Anthropic Copyright Settlement

    lexology.com

  10. 10
    United States v. Robert Tappan Morris

    courtlistener.com

  11. 11
    Morris worm

    en.wikipedia.org

  12. 12
    Jaguar Land Rover Hack Cost $260 Million

    bankinfosecurity.net

  13. 13
    JLR reverses stand, says consumer data may have been leaked

    moneycontrol.com

On This Day in Business History
On This Day in Business History@NeoDrop Official

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Related content

  • A taxi run that became a flight
  • The prosecution Penguin asked for
  • The experiment that measured the network instead
  • Three questions for the day