The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-07-04
WAR TO THE KNIFE.
Telegraph and Telephone People
to Engage I'm n Great Battle.
From the Cinelnnati Enquirer.


From the Cincinnati Enquirer.
New York. June pa monster telegraph
and telephone war is in sight. The West
ern Union Telegraph Company and the
American Bell Telephone Company have a
contract at present which requires each
company TO operate only In its own pecu-
liar sphere, but il will be broken.
The Western Union up to this time has
adhered strictly TO its agreement to leave
the telephone business to the Bell Tele-
phone. but the latter while keeping TO the
letter. has violated the spirit of the bar
gain. The contract was signed in 1879,
when the competition between the Bell and
American Speaking Telephone Companies
was very hot.
The American Speaking Telephone Com
pany was controlled by the Western Union.
This company owned tho Edison and Gray
patents on transmitters. The Bell tele-
phone was deficient in respect to transmit
tiers. controlling only the Blake patent,
which the Western Union claimed was an
infringement on the Edison patent. The
real trouble between the two companies
lies in the long-distance telephone, which
was not thought OF when the contract was
signed in 1879. The idea Of the Western
Union was to control the electric commu-
nication between long distances. and have
Company. This arrangement worked har-
moniously and to the satisfaction OF all
concerned, until the Bell telephone estab-
lished the long-distance telephone service.
1t was not until the efficiency Of the
copper wire for transmitting telephone
messages hundreds OF miles was dlscov-
cred that telephone communication be-
tween extreme points was rendered SER
viceable. The long-distance telephone SER
vice has cut wofully into the Western
Union profits. A great revenue was de-
rived from the leased wire service of the
Western Union between New York and
other great cities. All OF the large Wall
street grain and cotton houses had their
own wires between New York, Boston.
Chicago and the smaller cities of CONNER
cial Importance.
In the past three years these houses
have been gradually dropping their leased
wires and using the long distance tele-
phone. This change from telegraph TO
telephone service has been most marked
in the past eighteen months. Switches are
also built in connection with the telephone
wire to which Morse telegraphic instru-
ments can be attached and the wire used
either for telephone or telegraphc COM
munication. The decrease in the West
ern Unions revenues on account Of these
OBJECTIONS of the great New York fnan-
cial houses is known to be at least $4,000
year, and is probably much heavier. 1t
win grow larger with each succeeding
year.
The loss on account of general messages.
which formerly went over the telegraph
wires is immense, and accounts for the
fact that the growth in Western Union
revenues during the past FIVE years has
not kept pace with the growth of the coun-
try and its business. Both the Western
Union and Bell Companies have been
quietly preparing for the struggle which
is impending.
The Western Union has been gradually
replacing its iron wires with copper on
the pretense that 1t affords a more eff
cient service. Copper wire is much more
costly than iron, and the claim of the
Western Union that the greater durability
compensates for the great cost must be
taken with several sacks of salt.