The Age of Big Business; a chronicle of the captains of industry by Burton Jesse Hendrick
page 78 of 132 (59%)
page 78 of 132 (59%)
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the use of its political influence to prevent communities from
giving franchises to the Bell Company. But this corporation mainly relied for success upon the wholesale manner in which it infringed the Bell patents. It raked together all possible claimants to priority, from Philip Reis to Elisha Gray, in its attempts to discredit Bell as the inventor. The Western Union had only one legitimate advantage--the Edison transmitter--which was unquestionably much superior to anything which the Bell Company then possessed. Many Bell stockholders were discouraged in face of this fierce opposition and wished to abandon the fight. Not so Vail. The mere circumstance that the great capitalists of the Western Union had taken up the telephone gave the public a confidence in its value which otherwise it would not have had, a fact which Vail skillfully used in attracting influential financial support. He boldly sued the Western Union in 1878 for infringement of the Bell patents. The case was a famous one; the whole history of the telephone was reviewed from the earliest days, and the evidence as to rival claimants was placed on record for all time. After about a year, Mr. George Clifford, perhaps the best patent attorney of the day, who was conducting the case for the Western Union, quietly informed his clients that they could never win, for the records showed that Bell was the inventor. He advised the Western Union to settle the case out of court and his advice was taken. This great corporation war was concluded by a treaty (November 10, 1879) in which the Western Union acknowledged that Bell was the inventor, that his patents were valid, and agreed to retire from the telephone business. The Bell Company, on its part, agreed to buy the Western Union Telephone System, to pay the Western Union a royalty of twenty per cent on all telephone rentals, and not to engage in the |
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