The Argus. (Rock Island, Ill.) 1885-1886, 1886-02-15
THE BELL MONOPOLY.

The New York World gives the public
insight into the concerns of the Bell mo-
nopoly. TIE exhibit is interesting, and
the glimpses we there obtain of the Al
ladin-like bonanza are truly instructive.
Prof Alexander Graham Bell applied
for his fist telephone patent ut the patent
office, in Washington, Feb. IA, 1876 1t
is n most remarkable and romantic coin
cdence that Prof Elisha Gray applied tor
similar patent on the same day. Gray's
patent, 1t is asserted, was as meritorious
as Bells and certainly as original. but
owing To claimed difference of few
hours in filing the application, a claim
which is now disputed, Bell obtained the
advantage which has made the corpora
ton back of him one of the richest 10 the
country. Prof Bells telephone was first
exhibited at the Centennial exhibition.
Two years later the first telephone ey-
changes were established under the pat
ent. The development of the system
was rapid and its receipts for rentals
quickly multiplied. Its capital stock
January l, 1885. was S24, 100000
For the fiscal year ending March
/, 1885, its receipts for rentals
were 81, 96S, 900 and its net earning 81,
100000 The first dividend was not de
clared til Jan. l. 1881, when SEQ, 600
was paid to stockholders on 70. 500
shares, or per cent. One more dividend
of the same amount was declared that
year, three dividends of that amount were
declared in 1882, two dividends of the
same amount were paid in 1888, and two
of $28S, 063 the same year. five dividends
of $28S. 063 each were paid in 1884 and
one of the same amount was paid Janu-
ary 10, 1885, and several have been paid
since. Up to the 18th of January, 1885,
the total dividends paid to stockholders
amounted to about $4,00O,000 The or>
iginal investors in Bell telephone stock
paid from SEQ to $40 per share. Since
then the stock has been increased or
''watered' seven times, and the shares
are worth $3.50 each. The first of Janu-
airy, 1885, the Bell company controlled in
the United States and the territories 772
exchanges, 107,440 circuits, 10l, 1874
miles of wire, gave service to 5.16S en-
ployes, and had 1874 900 subscribers Its
pay roll last year averaged about &c.
600 month, or about $4,000 a year
The salary roll is light, owing to the EN-
ployment of girls as operators. Prof.
Bell is now worth S4,000,000, although
at the time he applied for the patent he
was teacher in deaf and dumb school
in Massachusetts,. The president, W. II
Forbes, Is worth from So DOC, 900 to 50, :
100000. realized from an original in
vestment of $4,000. Other fortune;
amounting to millions have been realized
from the same sources.
All individual suits to break the Bell
patent, including those OF Gray, Doll5ear
Drawbaugh and Edison, have failed. and
the monopoly is absolute. The effect of
this is schedule of exorbitant rates
charged for the use OF the telephone al
over the country. In the city of New York
for example, as high as Sl2 so a month /:
charged for single instrument
The public justly claims that the rental
exacted is out of all reasonable proper
tion to the value of the service.
The marvellous bonanza enjoyed by the
Bell monopoly is worth fighting for des
perately. The appearance on the scene
of the representatives of the United
States government as a party to the liti-
CATION completely changes the aspect OF
the situation. 1t is no individual liti
CANT Of limited means that the Bell com,
pany has now to face. II, as is declared
evidence is in existence To prove that thu
Bell patent was obtained by fraudulent
processes, the sooner it is annulled th,