The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-05-01
Something About the Western IN
ion and tho Bell Companies.
The Fights Between the Great, Gia
gantic Monopolies.
The Telegraph Octopus Kicking
Against tho Telephones.
II Thinks tho Bell Company is Incroach.
ing Upon tho Telegraph Privi-
logos by the Long Dis-
tanoo 'Phoning.

w iilt ltluilbUN DtlNttU illt httAtfD lnlOH
Telegraph companya and tho Bell Telephone
company:
In January last the president OF tho
Western Union Telegraph company had a
long interview with the president of the
Bell Telephone company concerning tho
mutual interests OF the two great corpora
tons. ave both agreed" said President
Green to the Washington correspondent
Of the Herald few days later, 'that tho
present contract was an excellent thing ior
all concerned and tha, il would be TO our
mutual disadvantage TO annul IT," The
contract had been violated ON the lines Of
the New England company, he added, but
the Bell company had tried 10 enforce its
terms and the two corporations "were in
perfect accord In cverv particular Tho
attitude Of these corporations toward each
other-one holding MONOPOLY OF the telo-
graphic communication aud the other q
monopoly OF the telephoning matter
OF some public interest, especially because
Of the terms oi contract Of 1870, and Of the
recent tcncroachmentsof one company upon
the field Of the other; seemingly In viola
ton Of that contract White II Is asserted,
Us VIZ have shown, that the companies
''arc In perfect accord In every particular"
the Boston Commercial Buieibi, trade
journal Of excellent standing, declares
that the Western Union is not satisfied
aud has appealed 10 the courts for settle
mcnt In accordance with its own intcrpre-
tation OF the contract Tho BHliam as-
serts that this suit has been pending for
some time, and has bccu referred Ia Judge
Lowell as master, while provision for tho
taking of dcpostions hnH been made.
Whom the great suit Of nine years ago be-
tween the two corporations was oompro-
missed the He'll company took from tho
| Western Union the valuable and APP
parcnlly Indispensable telephone patents
Of Edison and agrccd 10 pay TO the West
crn Union 20 per cent. oi all rentals or
royalties received by Il Tor telephones.
This agreement u embodied Ia the con-
tract oil November 10, 1870. which was 10
run seventeen ycaB. In compliance with
its terms the BELL company has paid ia
cash 10 The Western Union nearly ". iO0,-
600 since 1854, the annual payment
having risen from S2li,OOO In 1881 10
elOLUO in lSSG Tho llcil company
agruud moi only 90 pay this tribute, but
also Ia prevent competition between tho
telephone and the telegraph that IN 10
say, II agreed that the trlcph0n, should
not be- used iur transmitting "guicul bus
incss messages, market quotations or news
for sale or publication In competition
with the Western Union. The so-callcd
"long distance telephone service clearly
oncipachcs upon the field OF the telegraph,
but II does not appear that the pending
suit relating to the contract Il pressed by
the Western Union on this account Tho
Commercial Ruil,tH SAYS Things worked
~.
the extra territorial business when the
Western Union showed irritation and
brought suit for M accounting under tho
contract. They claimed that the Boll
people had been pcpant % their trust;
that instead oi getting al the royalty pos
siblc hom suhrCpmpani"s thoy took fran
chisc stock % a large measure Of the con-
sIdcmlion aud tho Western Union claimed
onc.iilh oi this franchise stock"
THIS would be- a claim Tor ~ on 900 or
~, ,0n0,UOO uf stock in The local telephone
companies of the country, nnl II the
! BuHd,H las not bccn misini0uned, the
suit u one oi great importance. Three or
four ycau ago the llrll company adopted
the policy u cXaciing stock from local
companies in payment for franchises, OF
lor the privilege oi paying sli year for
! the use ui instruments costing only Sli2
! lt has boCn the company's practice a. dc-
mund IS per cent, ~ morc, oi q local
| rumpnny'H Cniirr capital stock. ln this
| way and ly purchase u had accumulated
.on MAY .. 1885, no lcss than s22 ,OlG, 513 m
| such stock, sli. .j3j. sos oi this had been
taken Tor franchises. Subsequent cxac-
iions may have raised the total to $1,000
| 600. According To the BIdit'H, tho
] Western Union holds that by accumulate
| ing this stock the licllcompany has cyadod
| the requirements oi the contract; that In
! the place oithc stock which yields nothing
| to tie Weston Union, there might hayo
been collected ior the Use of Instruments
hfvrr rents, an effect which the Western
| Jniun would have enjoyed. The Western
! Union complains hcciusc an annual rental
0i m0ru than iuO per cent, upon lhc cost
ol the property was not raised. II such u
claim should ho sustained, the Western
! Union would obtain considerable guam
Hty OF stock IN all Of the local
telephone companies, which might
br used nitaniagpousy against tho
gcu c,mpanv. n tho two great
! corporations should become openly hos
| tile. and II the Western Union should,
| without regard TO the contract, undertake
10 lice the patents VI Ellison and GRAY IL
il aarriri that the Western Union h ac-
cumulntiug telephone patcnts which can
be- used hereafter. The patents surrcn-
dored Ia the Bcll company, under the con.
tract would become yaluablrif lells broad
claim should be broken before the oxpin-
tion oi his patent. and II that claim should
not be disturbed the Western Union would
still be- well equipped At the expiration OF
the contract lor entering the Boil conf
pany's field. or at least would lie able TO
exact from the Bell company better terms
lor peace than are specified In the present
aprcencnt At the expiration OF the Bell
natcni the Bell company's long distance
lines will have become extended 80 - 10
afford, In connection with the local OK.
changes. the frame work upon whichcoald
be- built up formidable opposition TO tho
Western Union. II should bc noted that
the suit for an accounting 10 which tho
Buldin directs attention. has not been
pushed Eoalously. II the two companles
arr not in exact accord, neither oi hS
desires wal.