The Age of Big Business: A Chronicle of the Captains of IndustryHendrick, Burton Jesse
History
The Age of Big Business: A Chronicle of the Captains of Industry
Hendrick, Burton Jesse
Big business -- United States -- History; Industries -- United States -- History
a trifle, but it epitomizes the whole spirit which Vail inspired
throughout his entire organization. Though there are plenty of people
who think that the existing telephone charges are too high, the fact
remains that the rate has steadily declined with the extension of
the business. Vail has also kept his company clear from the financial
scandals that have disgraced so many other great corporations. He has
never received any reward himself except his salary, such fortune as
he possesses being the result of personal business ventures in South
America during the twenty years from 1887 to 1907 that he was not
associated with the Bell interests.
Vail's first achievement was to rescue this invention from the greatest
calamity which would have befallen it. The Western Union Telegraph
Company, which in the early days had looked upon the telephone
as negligible, suddenly awoke one morning to a realization of its
importance. This Corporation had recently introduced its "printing
telegraph," a device that made it possible to communicate without the
intermediary operator. When news reached headquarters that subscribers
were dropping this new contrivance and subscribing to telephones, the
Western Union first understood that a competitor had entered their
field. Promptly organizing the American Speaking Telephone Company, the
Western Union, with all its wealth and prestige, proceeded to destroy
this insolent pigmy. Its methods of attack were unscrupulous and
underhanded, the least discreditable one being the use of its political
influence to prevent communities from giving franchises to the Bell
Company. But this corporation mainly relied for success upon the
wholesale manner in which it infringed the Bell patents. It raked
together all possible claimants to priority, from Philip Reis to Elisha
Gray, in its attempts to discredit Bell as the inventor. The Western
Union had only one legitimate advantage--the Edison transmitter--which
was unquestionably much superior to anything which the Bell Company
then possessed. Many Bell stockholders were discouraged in face of this
fierce opposition and wished to abandon the fight. Not so Vail. The mere
circumstance that the great capitalists of the Western Union had
taken up the telephone gave the public a confidence in its value which
otherwise it would not have had, a fact which Vail skillfully used in
attracting influential financial support. He boldly sued the Western
Union in 1878 for infringement of the Bell patents. The case was a
famous one; the whole history of the telephone was reviewed from the
earliest days, and the evidence as to rival claimants was placed on
record for all time. After about a year, Mr. George Clifford, perhaps
the best patent attorney of the day, who was conducting the case for the
Western Union, quietly informed his clients that they could never
win, for the records showed that Bell was the inventor. He advised the
Western Union to settle the case out of court and his advice was taken.
Public-domain text, read in full here on John Shaqi.
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