The Wellington enterprise. [volume] (Wellington, Ohio) 1867-188?, 1884-12-03
The Clay Telephone.

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, hundred subscribers being obtained.
From what we read of their terms else
+ where we think that each subscriber has
to buy his instruments outright, at q cost
$ of $50 or $6o AT least they are attempt.
ing to organize on that plan in Eastern
States.
If this be the case, the difference be.
tween the rates Of the two companies is
something less than 81 us it otherwise, on
the face Of it, would appear. The rates
: charged by the Central Union are more
than 81 higher than they would be were II
not tor the fact that they pay royalty to
the Bell Telephone Co.. the patentees, for
each set Of instruments they use. This
and the fact that the subscriber does not
buy the instruments, as he must Of the
Clay Co., makes the profit to The Central
Union at SO and 81 per month even less
than to the Clay at SO and SO.
That these rates are not unreasonable,
may also be made TO appear by the TACT
that their profits have never exceeded 8
per cent. on the capital invested, and the
times have been such the past year that
the company has been unable 10 sell bonds
for the construction of new lines and have
consequently have been obliged TO use
the profits the past year for that purpose
and no dividends have been made TO
stockholders.
We make no argument to disprove the
charge that the Bell Telephone Co. is a
gigantic monopoly; we only say that 1t is
not the fault Of the Central Union, nor is It |
a matter that they can control. They have
invested large sums Of money in building
lines, and have given us connection with all
thetownsin in Northern Ohio within practical |
speaking distance and up to the present
time, owing to tho large expense of con.
struction, they have scarcely begun to
receive an income from their investment.
We are aware, however, that the people
will not consider the inability of any com.
pany as regards rates. They will buy
where and OF whom they can buy cheap.
est.
The only question they will consider is,
will the Clay Telephone Co. give equally
good service for less money than the Cen.
tral Union is doing. Supposing that their
instruments are equally good, which we
are not prepared to dispute, and that they
are not an Infringement of the patents OF
the Bell Telephone Co., there can be no
good reason why they may not prove
formidable competitors, and possibly may
be able to break up the monopoly which
has thus far controlled the telephone.
But the patents Of the Bell Telephone
Co., are very comprehensive and cover
every point almost that can enter into
telephone and the company has thus far
been able to protect 1t against every other
device manufactured. The Clay Telephone
is claimed TO be an infringement and the !
Bell company have commenced q suit .
which II Is expected will be decided this
month. If the Bell Company succeed as
they confidently expect, il will OF course
put an end 10 the Clay. If they lose, the
Clay will at once be competitor and the
result must be TO compel the Bell TO re. ,
duce It's royalty which will enable the
Central Union TO give as low rates as any
company. The sum of the
whole matter Is then that If the Clay sue. =,
cceds in establishing the validity of Its pat
Dnt, the Bell Of necessity will lower its
royalty so that the Central Union can sue.
cessfully compete with il and having
the ground here and having spent thous. c
lnds Of dollars in building this Exchange,
hey will not see their property made value.
less by any competition that can be brought
against II. They would undoubtedly make
rates so low that no new company could
possibly displace them.
II Is rot true that the Clay has already
It's right to build and operate
IN exchange and we understand that it is
lot true that they are already operating
exchanges except under protest Of the Bell
Co., and subject TO the result OF the suit In.
Itituted against them. II is not true that
hey are operating or building an exchange
n Cleveland, nor will they unless the suit
IS decided in their favor. They have only
In experimental line In Cleveland, and II
he suit Is decided against them TIE Bell
will at once commence legal pro.
'eedipgs against every local exchange es.
ablished and against every private indi.
'idual using Clay instrument The Cen
raj Union Co., intends to deal fairly and
iberally with It's patrons, and will cheer.
ully give subscribers the benefit Of every
oncession made by the Bell Telephone
Y. m ann raducftnx, In rovale,, made ,.o