Competition; Monopolies -- United States; Trusts, Industrial
Probably the public was never so forcibly reminded of the defects of our
patent system by any other means as it has been by the operation of the
Bell Telephone monopoly. The purpose in granting patents is to aid in
the establishment of new lines of industrial activity, secure to the
inventor the right to reap a reward for his work, and encourage other
inventors to persevere in their search for new improvements. All these
things are effected by the monopoly which is held by the Bell Telephone
Company; but they are effected at a cost to the users of the telephone
under which they have grown very restive. Passing by the statement that
the patents which the Bell company holds were illegally procured in the
first place, through the inventor having had access to the secret
records in the Patent Office of other inventions for which a patent had
been asked at about the same time as his own, it is an undisputed fact
that the Bell company holds the monopoly of communication by electric
telephone in this country. They have managed this monopoly with great
skill. While the instrument was yet in its introductory stage, and when
every smart town felt obliged to start a telephone exchange or fall
behind the times, prices were kept low; but when once the telephone
became a business necessity and its benefits were well known, rates of
rental were advanced to the point where the greatest possible profits
would accrue to the Bell company's stockholders. This was excellent
generalship. The same principle is applied in many other lines of
business; and it was only because the company held a monopoly of a most
valuable industry, that it proved so immensely profitable here. But
other acts of the company, it is alleged, while within the letter of
the law, are yet clearly infringements on the just rights of the public.
It is charged that the company has purposely refrained from putting into
practical use any of the many improvements which have been made in the
telephone during the past few years, but at the same time has quietly
secured their control. By skilfully managing "interferences" of one
patent against another, and by amending and altering the various
specifications, it contrives to delay as long as possible the issue of
the patents upon these inventions. By means of these improvements, which
it purposes to introduce as its present patents expire, it proposes to
continue its monopoly for many years to come. It is very likely that
this attempt will succeed.
Public-domain text, read in full here on John Shaqi.
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