Daily globe., 1882-10-05
TELEPHONE FIGURES.
Elisha Gray, ,CltO Inrented the Telephone,
Dissenting its Profits.
From the New York Mail

Elisha Gray, ,cI0 Inrented the Telephone,
DescGnting on its Profits.
From the New York Mail.
Elish Gray, of Highland Park, near Chi
cago, the inventor of the telephone, has
been interviewed:
'sTo what extent is the telephone in use
at present, DIR. Gray!"
'sThe telephone is used in every civilized
| country on the globe. The number of in
struments in the United States alone ex-
ceeds 100000, and will reach 100000 in
four years, probably"
''What is the present rate of increase? ?''
'Over 5000 per month"
''To how many people do these give en-
ployment!"
'About as many as there are instru-
ments in uss."
''What recent Improvements have taken
placer"
"Minor improvements are being con-
stantly made, mostly in the conduct of the
business. The fundamentals. however, re-
main as Bell, Edison and myself have left
them. Long lines are leHgthening, so that
most New England town and cities are in
telephone communication with each other.
The time is not far distant when the people
of New York and Chicago will be able to
talk with each other. In fact, the latter
result is dependent entirely on the COM
pletion of the postal telegraph company's
new line, now in process of construction"
"Is the manufacture of the telephone
and its operation monopoly?"
"Yes, and one of very large dimensions.
The capital stock of the various telephone
companies would not fall short of $780,
O.000, par value. The market value of
the whole would average considerably
above par"
''Will you let little light on the growth
of the monopoly?'
''It is an interesting history. The first
telephone company was known as the
Gray d Barton company, started in 1869,
with capital of $4,000. From this sprang
the Western Electric company in 1871,
with capital of $15O,OOO. 1t now has
manufactures at Chicago, New York, Bos
ton, Indianapolis, Detroit, and at Antwerp,
Belgium. Its capital is at present $1,000
600. The American Speaking Telephone
company was organized under Gray's pa
tents, and the American Bell Telephone
company under Bells patents. These did
business at first independently, and then
came on the extensive litigation of which
all the world was witness. Testimony
was taken at all important points, and
matters finally reached terminus in the
United States district court at Boston. The
American Speaking and Bell companies
consolidated, the latter purchasing the
lines and property of the former, paying
cash for all instruments and an annual
royalty on each instrument then in use or
in the future to be manufactured without
regard to the patentee. The income of
the American Speaking company, which
had operated the Gray patent, is 20 per
cent on gross rentals, and amounts at
present to 100000 per year."
''The Western Electric company is not
in this pool?"
''The pool, or the Bell company, you
must understand. operates lines and
phones, leases all rights and licenses COM
panies. The Western Electric company
manufactures the phones and apparatus,
employing some 5000 people, It has
purchased all rights and patents necessary
to such manufacture. The American
Speaking Telephone company exists sim
lect ard collect its royalty from the
others
How many telephonic and telegraphic
patents have you secured, DR.. Gray, and
what disposition have you made OF them"
Il am q victim, l suppose, and viii have
to divulge; but L fear my answer Will as
tonish some people. ! had some forty
patents relating to telephonic Or acoustic
transmission. Part OF these. as I have
stated. went to the above companies and
would realize upward Of $3,0C0,G00 alone.
The remainder L have just turned over to
the Postal Telegraph company for sum
SO large that should not care to repeat it
here. Patents on the speaking telephone
have realized over $2.50o,OO0, making
S5.500,000 realized from my patents to the
companies, besides the realization referred
to which 1 am not permitted to make pub
lic.''