As we have seen in the previous chapter, there now came a period of violent competition which is remembered as the Dark Ages of the telephone business. The Western Union bought out several of the Bell exchanges and opened up a lively war on the others. As befitting its size, it claimed everything. It introduced Gray as the original inventor of the telephone, and ordered its lawyers to take action at once against the Bell Company for infringement of the Gray patent. This high-handed action, it hoped, would most quickly bring the little Bell group into a humble and submissive frame of mind. Every morning the Western Union looked to see the white flag flying over the Bell headquarters. But no white flag appeared. On the contrary, the news came that the Bell Company had secured two eminent lawyers and were ready to give battle. The case began in the Autumn of 1878 and lasted for a year. Then it came to a sudden and most unexpected ending. The lawyer-in-chief of the Western Union was George Gifford, who was perhaps the ablest patent attorney of his day. He was versed in patent lore from Alpha to Omega; and as the trial proceeded, he became convinced that the Bell patent was valid. He notified the Western Union confidentially, of course, that its case could not be proven, and that "Bell was the original inventor of the telephone." The best policy, he suggested, was to withdraw their claims and make a settlement. This wise advice was accepted, and the next day the white flag was hauled up, not by the little group of Bell fighters, who were huddled together in a tiny, two-room office, but by the mighty Western Union itself, which had been so arrogant when the encounter began. A committee of three from each side was appointed, and after months of disputation, a treaty of peace was drawn up and signed. By the terms of this treaty the Western Union agreed-- (1) 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.