American Telephone and Telegraph Company

“ There are even now only four men who own as many as ten thousand shares of the stock of the central company. This Bell System stands as the life-work of unprivileged men, who are for the most part still alive and busy. With very few and trivial exceptions, every part of it was made in the United States. No other industrial organism of equal size owes foreign countries so little. Alike in its origin, its development, and its highest point of efficiency and expansion, the telephone is as essentially American as the Declaration of Independence or the monument on Bunker Hill. ”

“ The first attack upon the young telephone business was made by the Western Union Telegraph Company. It came charging full tilt upon Bell, driving three inventors abreast—Edison, Gray, and Dolbear. It expected an easy victory; in fact, the disparity between the two opponents was so evident, that there seemed little chance of a contest of any kind. "The Western Union will swallow up the telephone people," said public opinion, "just as it has already swallowed up all improvements in telegraphy." ”

“ I have heard telephones in this country speak infinitely better than anything that I have heard on the other side of the Atlantic. But they transact their business in America infinitely better than we do; and there is one great reason for this, which is, that in America the public itself falls into the mode of telephone working with the energy of the telegraph operator. They assist the telephone people in every way they can; they take disturbances with a humility that would be simply startling to English subscribers; and they help the workers of the system in every way they can. ”

“ A great corporation, nerved at every point with telephone wires, may now pay fifty thousand dollars to the Bell Company, while at the same time a young Irish immigrant boy, just arrived in New York City, may offer five coppers and find at his disposal a fifty million dollar telephone system. ”

“ Each local company will continue to handle its own local affairs, and exercise to the full the basic virtue of self-help. But there will also be, as now, a central body of experts to handle the larger affairs that are common to all companies. No separateness or secession on the one side, nor bureaucracy on the other—that is the typically American idea that underlies the ideal telephone system. ”

“ No remarks on the possible inferiority of the American telegraph and postal systems would be fair if unaccompanied by a tribute to the wonderful development of the use of the telephone. New York has (or had very recently) more than twice as many subscribers to the telephonic exchanges as London, and some American towns possess one telephone for every twenty inhabitants, while the ratio in the British metropolis is 1:3,000. In 1891 the United States contained 240,000 miles of telephone wires, used by over 200,000 regular subscribers. In 1895 the United Kingdom had about 100,000 miles of wire. ”

“ Roughly speaking, there are now ten million telephones in all countries, employing two hundred and fifty thousand people, requiring twenty-one million miles of wire, representing a cost of fifteen hundred million dollars, and carrying fourteen thousand million conversations a year. All this, and yet the men who heard the first feeble cry of the infant telephone are still alive, and not by any means old.
No foreign country has reached the high American level of telephony. The United States has eight telephones per hundred of population, while no other country has one-half as many. ”

“ In this way, masked as competition, the nuisance and waste of duplication began in most American cities. The telephone business was still so young, it was so little appreciated even by the telephone officials and engineers, that the public regarded a second or a third telephone system in one city as quite a possible and desirable innovation. ”

“ 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. ”

“ In general, the lesson in Europe is this, that the telephone is what a nation makes it. Its usefulness depends upon the sense and enterprise with which it is handled. It may be either an invaluable asset or a nuisance.
Too much government! That has been the basic reason for failure in most countries. Before the telephone was invented, the telegraph had been made a State monopoly; and the tele-phone was regarded as a species of telegraph. The public officials did not see that a telephone system is a highly complex and technical problem, much more like a piano factory or a steel-mill. ”

“ Any telegraph company now organized, or which may hereafter be organized, under the laws of any state, shall have the right to construct, maintain, and operate lines of telegraph through and over any portion of the public domain of the United States, over and along any of the military or post roads of the United States, which have been or may hereafter be declared such by law, and over, under, or across the navigable streams or waters of the United States ”

“ Possibly, in that far future of peace and goodwill among nations, when each country does for all the others what it can do best, the United States may be generally recognized as the source of skill and authority on telephony. It may be called in to rebuild or operate the telephone systems of other countries, in the same way that it is now supplying oil and steel rails and farm machinery. ”

“ And thus the larger truth about the telephone is that it is vastly more than a mere convenience. It is not to be classed with safety razors and piano players and fountain pens. It is nothing less than the high-speed tool of civilization, gearing up the whole mechanism to more effective social service. It is the symbol of national efficiency and cooperation.
All this the telephone is doing, at a total cost to the nation of probably $200,000,000 a year—no more than American farmers earn in ten days. ”

“ The possibilities of clear speech-transmission at indefinite distance are without measure. Like the telegraph, the telephone has opened an immense and profitable industry, involving hundreds of millions of dollars. ”

“ Just as the wise buyer of to-day asks France for champagne, Germany for toys, England for cottons, and the Orient for rugs, so he will learn to look upon the United States as the natural home and headquarters of the telephone. ”

“ Wireless telephony, like wireless telegraphy, but to an even greater extent, is peculiarly suited for the conveyance of marine intelligence. Wireless telephony occupies a unique position in this regard-no operator is required. The additional expense of an operator is an objection to the wireless telegraph in many cases, and forbids its installation. Anybody can operate the wireless telephone. It is also much quicker-words can be spoken more rapidly than they can be put into Morse signals and translated. ”

“ There is no racial reason for failure. The slow service and the bungling are the natural results of treating the telephone as though it were a road or a fire department; and any nation that rises to a proper conception of the telephone, that dares to put it into competent hands and to strengthen it with enough capital, can secure as alert and brisk a service as heart can wish. Some nations are already on the way. China, Japan, and France have sent delegations to New York City—"the Mecca of telephone men," to learn the art of telephony in its highest development. ”

“ This agreement proved of the greatest benefit to both organizations, and did much to make possible the present development and universal service of both the telephone and telegraph. By the terms of the agreement the Western Union recognized Bell's patent and agreed to withdraw from the telephone business. The Bell company agreed not to engage in the telegraph business and to take over the Western Union telephone system and apparatus, paying a royalty on all telephone rentals. Experience has demonstrated that the two businesses are not competitive, but supplement each other. ”

“ It remains now, as it was then, essentially an American achievement. Other nations have their telephone systems, but it is only in the United States that its possibilities have been even faintly realized. It is not until Americans visit foreign countries that they understand that, imperfect as in certain directions their industrial and social organization may be, in this respect at least their nation is preeminent.
The United States contains nearly all the telephones in existence, to be exact, about seventy-five per cent. ”

“ In thirty years, the Western Electric has sold sixty-seven million dollars' worth of telephonic apparatus to foreign countries. But this is no more than a fair beginning. To put one telephone in China to every hundred people will mean an outlay of three hundred million dollars. To give Europe as fit an equipment as the United States now has, will mean thirty million telephones, with proper wire and switchboards to match. And while telephony for the masses is not yet a live question in many countries, sooner or later, in the relentless push of civilization, it must come. ”

“ He has forced the telephone business into a postal mould. The man in a small city must pay as high a rate for a small service, as the man in a large city pays for a large service. There is a fair degree of efficiency, but no high speed or record-breaking. The German engineers have not kept in close touch with the progress of telephony in the United States. They have preferred to devise methods of their own, and so have created a miscellaneous assortment of systems, good, bad, and indifferent. ”

“ Wireless telegraphy is part of the established order of things. The wireless telephone is practical for limited distance, but is not a commercial rival of the telegraph. Great distances are claimed, but they are matters for proof and speculation.
There is no immediate possibility that wireless telephony will take the place of local exchanges. If the time ever does come that it in any way tends to supplant the line telephone for some uses, it is more than probable that each subscriber must have his own generating station and call up direct. ”

“ He may establish a universal code, so that all persons of importance in the United States shall have call-numbers by which they may instantly be located, as books are in a library.
Some other young man may create a commercial department on wide lines, a work which telephone men have as yet been too specialized to do. Whoever does this will be a man of comprehensive brain. He will be as closely in touch with the average man as with the art of telephony. ”

“ Seldom has a company been started with so small a capital and so vast a purpose. It had no more than $100,000 of capital stock, in 1885; but its declared object was nothing less than to establish a system of wire communication for the human race. Here are, in its own words, the marching orders of this Company: "To connect one or more points in each and every city, town, or place an the State of New York, with one or more points in each and every other city, town, or place in said State, and in each and every other of the United States, and in Canada, and Mexico ”

“ No other company uses so much wire and hard rubber, or so many tons of brass rods, as the Western Electric. Of platinum, too, which is more expensive than gold, it uses one thousand pounds a year in the making of telephone transmitters. ”

“ In this same year Henry Clay delivered his memorable speech on the Mexican War, at Lexington, Kentucky, and it was telegraphed to The New York Herald at a cost of five hundred dollars, thus breaking all previous records for news-gathering enterprise. Eleven years later the first cable established an instantaneous sign-language between Americans and Europeans; and in 1876 there came the perfect distance-talking of the telephone.
No invention has been more timely than the telephone. ”

“ None had been invented, so it made telegraphic apparatus, burglar-alarms, electric pens, and other such things. But in 1878, when the Western Union made its short-lived attempt to compete with the Bell Company, the Western Electric agreed to make its telephones. Three years later, when the brief spasm of competition was ended, the Western Electric was taken in hand by the Bell people and has since then remained the great workshop of the telephone.
The main plant in Chicago is not especially remarkable from a manufacturing point of view. ”

“ Plainly, the telephone system of the future will be national, so that any two people in the same country will be able to talk to one another. It will not be competitive, for the reason that no farmer would think for a moment of running his farm on competitive lines. ”

“ They make provision for growth, but none at all for shrinkage. By their advice, there is now twenty-five million dollars' worth of reserve plant in the various Bell Companies, waiting for the country to grow up to it. Even in the city of New York, one-half of the cable ducts are empty, in expectation of the greater city of eight million population which is scheduled to arrive in 1928. There are perhaps few more impressive evidences of practical optimism and confidence than a new telephone exchange, with two-thirds of its wires waiting for the business of the future. ”