The History of the TelephoneCasson, Herbert Newton
History
The History of the Telephone
Casson, Herbert Newton
Telephone -- History
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.
Public-domain text, read in full here on John Shaqi.
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