New-York tribune., 1909-12-10
I. n. VAIL On STAND
TELEPHONE HISTORY.
Head Of American Company
Before Com mItfe6.

Theodore y. Van. OF Boston. president -
rhe American Telephone and Telegraph
COMPANY. traced yesterday TIE history ~
fis company. which now has capi1aliza-
siou ~ x-slorlo loo and an authorized pro
s1ertire issue ~ Go.eaesl. from the asso-
citation which had capital 81 S9o.ao ano
began business IN Ig-S win tho old masneto
f.l-phour He came voluntarily from Sos
tor 20 testify before the legislative com
rrlirree which Is investigating telephone arlo
telegraph companies. with view 70 plsc-
fnE them under the control o. the Public
Service Commission. and Vas accompanied
49, General Meauy counsel 70 the recently
formed Telephone ano telegraph merger ~
~-hi-h ar al is Jhe head
The oId neW EuElane had capital -
50, - the Beu had Ss5as.c. and the rv7o
were rnsIly 1oined with capital ~ ts5--
a0 Much difficulty vas found IN obtaining
sufhn.snt capital. and the neV company net
vith opposition from rhe Western Union
r.sisr. as progress was made. the American
Per was formed W.T. s. g. ar oapiralizs-
tIo- Thls company Wa taken over by rhe
American Telephone and Telegraph CON
psny in 1sse. which By stock transfers
paved the way tor rs present large hold
inrs IN subsidiary oorlpsnies-
Millions % collars have been spent NJ
Va ssiL. iu changes. improvements arl
e-casiCnsI-y N the invention a. 8 new DE-
rioe The majority of these inventions are
mace by engineers employed by the con-
usny s-though each new oevios sun-nittea
Be- r-asd oct. he CONTINUED
There Is q general impression SAID Nj
Page counssi 10 the committee. that va
usbIe Inventions are MADE snc could b
rut to valuable Use IN the telephone bus
ness and make valuable improvements. bur
rne COMPANIES purchase them and rs-Ise
20 US rhe-- = 81 true
= know g Is me popular heiisf, replied
NJ vsI. but Il Is not true r Is ve-y
common FOR 81 inventor 70 think he has
so-nethinE new ana great when he has
only rediscovered al oic device- - nov
~ are ve-y careful. for Ne have been ac-
--sed % stealing devices O. inventors But-
2 teu y-ou. rherc Is TOT = single device
which ne would nor ADOPT = u could b ~
uss 70 Is wonder that lhs telephone
works a. e.. Tor 4 usss only one -hres-
r-lfhorth c. The power used bv ths oroi-
zas-y electric lEht"
The crtgtnE- Bel patents have expired
rur Al tas devices tu use by the company
so-dzy A-s patented. although Mr. Van tes-
r.fed that -he company derived nC real pro
sec.Icr trom patents Es vas questioned
sbou- lhe recent merger Enc asked = he
we're willing 20 have rns books and papers
81 the seVers, companies examined by the
rorl-l.rtee TIE witness SAID thai ne nae
nc c15s-r-o-s. Genera Nss1y acquiescec-
NJ TsI sale rna- his company owned
E--o9l 90 o. me s.. 1oocoo OF stock q the
Western Electric COMPANY. which IS tae
great manufacture of telephone apparatus.
aud has been charged Win selling a. eN-
ora-rsur p-loes 10 SIS controlling conpanT-
A. ins--u-nents are owned by the amer
car TIE lerIer company recently bought
8 bout s. GA a. q tLe stock o. -ne Western
T-ri1r and es-ly last tsu bought from Inst
corrnarv sltg.too0 o. New York Telephone
company stock
.sDo gather rhsr r rs vow opinion that
r1e Telegraph company win coupel people
O. receive messages ove- rne telephone or
sIse ~ for their deiver,1" asked NJ
Fars
IN u-- m tas telegram business yet.
lr1- should ssv thar there would be free
-e,-ver- of messages within certain districts
as -here fs nov" replied NJ. Vail
..'culpe-tuou. 50 called" ssid tie witness
'.rozts either IN charges 10 subscribers Or
iu costs m srockhoIderE-
--Hov about g monopoly
Naturally. favor q" said the witness.
v+-h 9 smile. y think The telephone is a
natural u1onopoly-"
What DO YOU think n regulation by gov
e-r-1eur. state or national"
THAT densnds uDon The regulation" said
ef- TsE 40 one has objection 70 proper
supervision"
"Whsr Or vCu chink is q fair return upon
frr-sr-rrierr7-
Eight per cent Is not ar unreasonable
return upon Investment. upon 6 public se--
Nice corporation security our experience
L. = In Is ma