The History of the Telephone, Herbert N. Casson [desktop ebook reader .txt] 📗

To admit that Bell was the original inventor.

 

(2) To admit that his patents were valid.

 

(3) To retire from the telephone business.

 

The Bell Company, in return for this surrender, agreed—

 

(1) To buy the Western Union telephone system.

 

(2) To pay the Western Union a royalty of twenty per cent on all telephone rentals.

 

(3) To keep out of the telegraph business.

 

This agreement, which was to remain in force for seventeen years, was a master-stroke of diplomacy on the part of the Bell Company.

It was the Magna Charta of the telephone. It transformed a giant competitor into a friend. It added to the Bell System fifty-six thousand telephones in fifty-five cities. And it swung the valiant little company up to such a pinnacle of prosperity that its stock went skyrocketing until it touched one thousand dollars a share.

 

The Western Union had lost its case, for several very simple reasons: It had tried to operate a telephone system on telegraphic lines, a plan that has invariably been unsuccessful, it had a low idea of the possibilities of the telephone business; and its already busy agents had little time or knowledge or enthusiasm to give to the new enterprise.

With all its power, it found itself outfought by this compact body of picked men, who were young, zealous, well-handled, and protected by a most invulnerable patent.

 

The Bell Telephone now took its place with the Telegraph, the Railroad, the Steamboat, the Harvester, and the other necessities of a civilized country. Its pioneer days were over. There was no more ridicule and incredulity. Every one knew that the Bell people had whipped the Western Union, and hastened to join in the grand Te Deum of applause. Within five months from the signing of the agreement, there had to be a reorganization; and the American Bell Telephone Company was created, with six million dollars capital. In the following year, 1881, twelve hundred new towns and cities were marked on the telephone map, and the first dividends were paid —$178,500. And in 1882 there came such a telephone boom that the Bell System was multiplied by two, with more than a million dollars of gross earnings.

 

At this point all the earliest pioneers of the telephone, except Vail, pass out of its history.

Thomas Sanders sold his stock for somewhat less than a million dollars, and presently lost most of it in a Colorado gold mine. His mother, who had been so good a friend to Bell, had her fortune doubled. Gardiner G. Hubbard withdrew from business life, and as it was impossible for a man of his ardent temperament to be idle, he plunged into the National Geographical Society. He was a Colonel Sellers whose dream of millions (for the telephone) had come true; and when he died, in 1897, he was rich both in money and in the affection of his friends. Charles Williams, in whose workshop the first telephones were made, sold his factory to the Bell Company in 1881 for more money than he had ever expected to possess.

Thomas A. Watson resigned at the same time, finding himself no longer a wage-worker but a millionaire. Several years later he established a shipbuilding plant near Boston, which grew until it employed four thousand workmen and had built half a dozen warships for the United States Navy.

 

As for Bell, the first cause of the telephone business, he did what a true scientific Bohemian might have been expected to do; he gave all his stock to his bride on their marriage-day and resumed his work as an instructor of deaf-mutes.

Few kings, if any, had ever given so rich a wedding present; and certainly no one in any country ever obtained and tossed aside an immense fortune as incidentally as did Bell. When the Bell Company offered him a salary of ten thousand dollars a year to remain its chief inventor, he refused the offer cheerfully on the ground that he could not “invent to order.” In 1880, the French Government gave him the Volta Prize of fifty thousand francs and the Cross of the Legion of Honor. He has had many honors since then, and many interests. He has been for thirty years one of the most brilliant and picturesque personalities in American public life. But none of his later achievements can in any degree compare with what he did in a cellar in Salem, at twenty-eight years of age.

 

They had all become rich, these first friends of the telephone, but not fabulously so. There was not at that time, nor has there been since, any one who became a multimillionaire by the sale of telephone service. If the Bell Company had sold its stock at the highest price reached, in 1880, it would have received less than nine million dollars—a huge sum, but not too much to pay for the invention of the telephone and the building up of a new art and a new industry. It was not as much as the value of the eggs laid during the last twelve months by the hens of Iowa.

 

But, as may be imagined, when the news of the Western Union agreement became known, the story of the telephone became a fairy tale of success.

Theodore Vail was given a banquet by his old-time friends in the Washington postal service, and toasted as “the Monte Cristo of the Telephone.”

It was said that the actual cost of the Bell plant was only one-twenty-fifth of its capital, and that every four cents of investment had thus become a dollar. Even Jay Gould, carried beyond his usual caution by these stories, ran up to New Haven and bought its telephone company, only to find out later that its earnings were less than its expenses.

 

Much to the bewilderment of the Bell Company, it soon learned that the troubles of wealth are as numerous as those of poverty. It was beset by a throng of promoters and stock-jobbers, who fell upon it and upon the public like a swarm of seventeen-year locusts. In three years, one hundred and twenty-five competing companies were started, in open defiance of the Bell patents.

The main object of these companies was not, like that of the Western Union, to do a legitimate telephone business, but to sell stock to the public.

The face value of their stock was $225,000,000, although few of them ever sent a message. One company of unusual impertinence, without money or patents, had capitalized its audacity at $15,000,000.

 

How to HOLD the business that had been established —that was now the problem. None of the Bell partners had been mere stock-jobbers. At one time they had even taken a pledge not to sell any of their stock to outsiders. They had financed their company in a most honest and simple way; and they were desperately opposed to the financial banditti whose purpose was to transform the telephone business into a cheat and a gamble. At first, having held their own against the Western Union, they expected to make short work of the stock-jobbers. But it was a vain hope. These bogus companies, they found, did not fight in the open, as the Western Union had done.

 

All manner of injurious rumors were presently set afloat concerning the Bell patent. Other inventors—some of them honest men, and some shameless pretenders—were brought forward with strangely concocted tales of prior invention.

The Granger movement was at that time a strong political factor in the Middle West, and its blind fear of patents and “monopolies” was turned aggressively against the Bell Company. A few Senators and legitimate capitalists were lifted up as the figureheads of the crusade. And a loud hue-and-cry was raised in the newspapers against “high rates and monopoly” to distract the minds of the people from the real issue of legitimate business versus stock-company bubbles.

 

The most plausible and persistent of all the various inventors who snatched at Bell’s laurels, was Elisha Gray. He refused to abide by the adverse decision of the court. Several years after his defeat, he came forward with new weapons and new methods of attack. He became more hostile and irreconcilable; and until his death, in 1901, never renounced his claim to be the original inventor of the telephone.

 

The reason for this persistence is very evident.

Gray was a professional inventor, a highly competent man who had begun his career as a blacksmith’s apprentice, and risen to be a professor of Oberlin. He made, during his lifetime, over five million dollars by his patents. In 1874, he and Bell were running a neck-and-neck race to see who could first invent a musical telegraph—

when, presto! Bell suddenly turned aside, because of his acoustical knowledge, and invented the telephone, while Gray kept straight ahead.

Like all others who were in quest of a better telegraph instrument, Gray had glimmerings of the possibility of sending speech by wire, and by one of the strangest of coincidences he filed a caveat on the subject on the SAME DAY that Bell filed the application for a patent. Bell had arrived first. As the record book shows, the fifth entry on that day was: “A. G. Bell, $15”; and the thirty-ninth entry was “E. Gray, $10.”

 

There was a vast difference between Gray’s caveat and Bell’s application. A caveat is a declaration that the writer has NOT invented a thing, but believes that he is about to do so; while an APPLICATION is a declaration that the writer has already perfected the invention. But Gray could never forget that he had seemed to be, for a time, so close to the golden prize; and seven years after he had been set aside by the Western Union agreement, he reappeared with claims that had grown larger and more definite.

 

When all the evidence in the various Gray lawsuits is sifted out, there appear to have been three distinctly different Grays: first, Gray the SCOFFER, who examined Bell’s telephone at the Centennial and said it was “nothing but the old lover’s telegraph. It is impossible to make a practical speaking telephone on the principle shown by Professor Bell… . The currents are too feeble”; second, Gray the CONVERT, who wrote frankly to Bell in 1877, “I do not claim the credit of inventing it”; and third, Gray the CLAIMANT, who endeavored to prove in 1886 that he was the original inventor. His real position in the matter was once well and wittily described by his partner, Enos M. Barton, who said: “Of all the men who DIDN’T invent the telephone, Gray was the nearest.”

 

It is now clearly seen that the telephone owes nothing to Gray. There are no Gray telephones in use in any country. Even Gray himself, as he admitted in court, failed when he tried to make a telephone on the lines laid down in his caveat. The final word on the whole matter was recently spoken by George C. Maynard, who established the telephone business in the city of Washington. Said Mr. Maynard:

 

“Mr. Gray was an intimate and valued friend of mine, but it is no disrespect to his memory to say that on some points involved in the telephone matter, he was mistaken. No subject was ever so thoroughly investigated as the invention of the speaking telephone.

No patent has ever been submitted to such determined assault from every direction as Bell’s; and no inventor has ever been more completely vindicated. Bell was the first inventor, and Gray was not.”

 

After Gray, the weightiest challenger who came against Bell was Professor Amos E.

Dolbear, of Tufts College. He, like Gray, had written a letter of applause to Bell in 1877. “I congratulate you, sir,” he said, “upon your very great invention, and I hope to see it supplant all forms of