The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-16
THE TELEPHONE SHUTTLE.
Investors Should He Cautious About
Placing Money In New Companies.
Electrical ENGINEER

Comment has been made on a slight de-
probation in the stock of the American
advised by the daily press to sell and in
vest in the stock OF some of the new COM
panies springing UP by the score. That a
advice is evident from the reported sales
of small holdings of Bell stock, but is the
advice worth following? If analysed, will
f~ull-page advertisements tell us that tele-
phones may be bought for less than 81, but
the buyer secures only the hard rubber
service is the receiver without the balance
of the equipment? And of what new use
the aid of Central? The new telephone
companies report the receipt of orders
for thousands of our telephones and we
are now trying to find manufacturers who
can do the high-class work we desire" In
other words, is the old story of costly ex-
periments to find the most economical way
to manufacture this apparatus TO be re-
peated? IN the meantime the American
Bell officials are said to be quietly buying
up all the stock offered for sale, TO be
strengthening their position while apparent
ly retreating. and TO be preparing Tor the
increase in business that Will follow all this
talk about competition and cut rates. A
year ago the writer stated that these new
companies would be discreet enough not
to organize and operate an exchange UNI
less the American Bell Telephone Company
first conferred with, for the patent about
TO expire Is the least important Of many
that 1nterlace ana TORN 50 neceSSAIy u
part of the central exchange system that
investors should look with distrust upon
any schemes for introducing a new tele:
phone system for some years to come. ="
These same remarks hold good to-day, and
the writer would advise the purchase
rather than the sale OF American Bell tele-
phone stock.
The current and extended impression that
the many patents covering instruments and
appliances used and controlled by the Bell
Telephone Company have now expired is
erroneous. One Of these Cthe patent cover
ing the hand telephone) expired Jan. So,
1894, but this is valuable only TO the extent
that it contributes, with other innumerable
appliances, in making a complete ana SAT,
isfactory telephone service possible. All
forms of battery transmitters (transmltterS
requiring the use of a battery and nearly
all other features pertaining TO sWltch-
boards, magnetic bells and other appliances
essential 10 an acceptable service, are still
fully covered and can be legally used only
where licensed by the American Bell Tele-
phone Company.
A suit is now pending testing the validity
OF the "Berliner' patent, issued Nov, Il,
1851, and owned by the American Bell Tel
ephone Company, covering the basic prin-
cipies OF all forms OF battery transmlltters
1t is expected that this suit Will be decided
within the next month. The telephone sit
uation will then be made clear to all who
are interested. In the meantime ordinary
business prudence would suggest refrain
ing from hasty and doubtful investments.
1t seems TO be the policy or one OF the
companies, who have millions or stock foi
sale. to withhold their own money and in
duce local people TO supply all the desired
capital for construction OF the rev exchange
plants thus far proposed, an evidence that
they have not the confidence in their ability
and legal rights that they would have the
public believe.