Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-01-26
The History Of the Telephone Cora
panieA.

THE BELL COMPANY AND THE PEOPLES COMPANY
CONTEST IN THE COURTS BETWEEN THE TWO
Yesterday, counsel for the Peoples Telephone
company. OF New York. filed In the Patent
of1ice their side OF the application OF the
Daniel Drawbaugh application for patent for
telephone. This opens up peculiar and in
teresting phase or affairs In this connection
Just now and brings to light the history OF the
companies.
The nrsI telephone patent was granted In
1876, and since then the patents or Gray, Ed
son, and Bell. with the Blake transmtIer.
have been consolidated into what Is known as
the Bell American Telephone Company. The
stock was originally sold at S5o a share; and
afterwards was quoted and sold as high as s. .Geg
share. The stock has been watered since and
the company is now IN the market borrowing
money. No dividend has ever been paid. The
company has made. ana Is making, Immense
sums of money. but as all this and the money
they are borrowing has gone into the plant.
which rapidly Increases In extent and value
s. GOO share. or more. They spent large sum
oil money, TOO, In buying patents for improve
ments Oh the instrument.
The Peoples Telephone Company. against
which the Bell Telephone Company have d suit
N the U. 5. circuit court, Ia New York, Is COM
posed or number or gentlemen who formed
company and purchased the interest
oerland county, Pennsylvania Drawbaugh, as
is proven by about a hundred living witnesses
neighbors and others, invented, and had in
q
years 1870 1871, 1872. 1873 and 1874 the result OF
an acknowledged invention OF his in ls6s. lie
was very poor In debt, with large and helpless
family dependent upon him for support. and
was, from this cause. unable 10 patent or cayeat
his invention, or manufacture or market ft; and
IL is Claimed that he never abandoned his claim
TO bis Invention TO anybody. The men COM
posing the Peoples Telephone Company oougat
his claim and some patents that completed The
instrument, and made application for Draw
oaugh La 1880. and proposed to furnish tele-
phones for about one-third the cost OF the Bel
telephone.
Presuming upon the validity Of their claila
they pooled the ct mpany's stock. spent about
$4,000, and started into the beginning or work,
with plenty OF capital to go ahead on. The
or1ginators were wild with great hopes. But
the Bell company caused an injunction AMI
suit, the best OF lawyers were engaged on both
sides, and the Draw baugh patent was rejected
about two months ago, on the grounds thai
patents had been granted to Others, and print
ed descriptions published by Others, prior TO the
phones were In use more than two years pefors
Draw baugh's application.
The rehear1Dg process now comes IN by the
doings yesteroay, and Is presented on three
mat an application is not barred by patent
granted, or description published, more than
TWO years before the application, provided the
applicants ihventton was prior TO the patent
ucat10n OF the nret Inventor Is not barred by a
Two years public use or sale OF another mans
subsequent invention, without the consent or
allowance OF the f1rst inventor. except under
donment OF the invention to the public. Third
That the Commissioner OF Patents cannot law
nlly allow anybody to contest the Application
except by interference proceedings These
pointed judicial decisions and the belief Is that
either Drawbaugh win get patent or the In
vention be given 10 the public.