Savannah morning news. [volume] (Savannah) 1868-1887, 1882-10-03
TELEPHONE FIGURES.
The Inventor of the Telephone
Dissenting on the Profits.

The telephone system is now regarded in
| Savannah as a most essential adjunct OF our
business, and one of the facilities which we
could not do without. The following &C
count of an interview with DIR. Elisha Gray,
of Highland Park, near Chicago, the in
ventor of the telephone, will be read with
some interest:
''To what extent is the telephone In use
at present, DR.. Grsyf"
"The telephone Is used in every civilized
country on the globe. The number Of in
struments In the United States alone ex-
ceeds 10000, and will reach 100000 in four
years, probably"
"What is the present rate of increase?"
cover 5000 per month"
ITO how many people do these give en-
ployment?"
"About as many as there are instruments
| In use"
"What recent improvements have taken
place ?"
"Minor improvements are being constant
| ly made, mostly in the conduct Of the bust
ness. The fundamentals however, remain
as Bell, Edison and myself left them. Long
lines are frightening, so that most New
| England towns 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 de-
| pendent entirely on the completion of the
| Postal Telegraph COmpany's new line, now
/ in process of construction.
sis the manufacture of the telephone and
| its operation monopoly ?"
eyes, and one Of very large dimensions.
| The capital stock Of the various telephone
Companies would not fall short OF $50 ,000,-
600 par value. The market value of the
whole would average considerably above
| par"
"Will you let little light on the growth
| Of the monopoly ~
at is an interesting history. The first
telephone company was known as the Gray
q Barton Company, started In 1859, with a
| capital of $4,000. From this sprang the
Western Electric Company IN 1871, with a
capital Of $3.50, 900. It. now has manufaeto-
ries at Chicago, New York, Boston, Indian
apolis, Detroit, and at Antwerp, Belgium.
Its capital is at present 81 900. The
American Speaking Telephone Company
was organized under Gray's patents, and
the American Bell Telephone Company
under Bells patents. These did bust
ness at first independently, and then
| came on the extensive litigation
OF which all the world was witness. Testi-
mony was taken at all important points,
anu uabbcTs reached q terminus III
the United States District Court, at Boston.
The American and Bell companies cOnsoli-
| dated, the latter purchasing the property
| and lines OF the former, paying cash for all
Instrument and an annual royalty on each
| instrument then in use or In the future to be
| manufactured without regard to the pat
entee. The income OF the American Speak
| ing Company, which had operated the GRAY
| patent, is 20 per cent. on gross rentals, and
amounts at present to $500, 900 per year"
"The Western Electric Company is not in
| this pool?"
"1he pool, or the Bell Company, YOU
must understand, operates lines and phones,
leases all rights and licenses companies.
The Western Electric Company manufac-
lures the phones and apparatus. employing
| some three thousand people. 1t has pur-
chased all the rights and patent necessary
to such manufacture. The American
Speaking Telephone Company exists simply
to collect and distribute It's royalty from the
Others
Chow many telephone and telegraphic
patents have you secured, DIR. Gray, and
what disposition have you made Of themS
II am victim, | suppose, and will have
to d1Vulge; but / fear my answer will
sstonish some people. 1 had some forty
patents relating to telephone or acoustic
transmission. Part of these, as l have
stated, went to the above companies, and
would realize upward of $1,000 900 alone.
The remainder | have just turned over to
the Postal Telegraph Company for a sum so
large that | should not care to repeat 1t
here. Patents on the speaking telephone
have realized over 81, 900, making
S., 500, 900 realized from my patents to the
companies, besides the realization referred
to which am not permitted to make pub
lie ~