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testhis¡¡has¡¡been¡¡one¡¡of¡¡the¡¡master¡¡passions¡¡of¡¡the¡¡human¡¡race¡£¡¡And¡¡thus¡¡the¡¡larger¡¡truth¡¡about¡¡the¡¡telephone¡¡is¡¡that¡¡it¡¡is¡¡vastly¡¡more¡¡than¡¡a¡¡mere¡¡convenience¡£¡¡It¡¡is¡¡not¡¡to¡¡be¡¡classed¡¡with¡¡safety¡¡razors¡¡and¡¡piano¡¡players¡¡and¡¡fountain¡¡pens¡£¡¡It¡¡is¡¡nothing¡¡less¡¡than¡¡the¡¡high¡speed¡¡tool¡¡of¡¡civilization£»¡¡gearing¡¡up¡¡the¡¡whole¡¡mechanism¡¡to¡¡more¡¡effective¡¡social¡¡service¡£¡¡It¡¡is¡¡the¡¡symbol¡¡of¡¡national¡¡efficiency¡¡and¡¡coperation¡£
All¡¡this¡¡the¡¡telephone¡¡is¡¡doing£»¡¡at¡¡a¡¡total¡¡cost¡¡to¡¡the¡¡nation¡¡of¡¡probably¡¡200£»000£»000¡¡a¡¡year¡¡no¡¡more¡¡than¡¡American¡¡farmers¡¡earn¡¡in¡¡ten¡¡days¡£¡¡We¡¡pay¡¡the¡¡same¡¡price¡¡for¡¡it¡¡as¡¡we¡¡do¡¡for¡¡the¡¡potatoes£»¡¡or¡¡for¡¡one¡third¡¡of¡¡the¡¡hay¡¡crop£»¡¡or¡¡for¡¡one¡eighth¡¡of¡¡the¡¡corn¡£¡¡Out¡¡of¡¡every¡¡nickel¡¡spent¡¡for¡¡electrical¡¡service£»¡¡one¡¡cent¡¡goes¡¡to¡¡the¡¡telephone¡£¡¡We¡¡could¡¡settle¡¡our¡¡telephone¡¡bill£»¡¡and¡¡have¡¡several¡¡millions¡¡left¡¡over£»¡¡if¡¡we¡¡cut¡¡off¡¡every¡¡fourth¡¡glass¡¡of¡¡liquor¡¡and¡¡smoke¡¡of¡¡tobacco¡£¡¡Whoever¡¡rents¡¡a¡¡typewriting¡¡machine£»¡¡or¡¡uses¡¡a¡¡street¡¡car¡¡twice¡¡a¡¡day£»¡¡or¡¡has¡¡his¡¡shoes¡¡polished¡¡once¡¡a¡¡day£»¡¡may¡¡for¡¡the¡¡same¡¡expense¡¡have¡¡a¡¡very¡¡good¡¡telephone¡¡service¡£¡¡Merely¡¡to¡¡shovel¡¡away¡¡the¡¡snow¡¡of¡¡a¡¡single¡¡storm¡¡in¡¡1910¡¡cost¡¡the¡¡city¡¡government¡¡of¡¡New¡¡York¡¡as¡¡much¡¡as¡¡it¡¡will¡¡pay¡¡for¡¡five¡¡or¡¡six¡¡years¡¡of¡¡telephoning¡£
This¡¡almost¡¡incredible¡¡cheapness¡¡of¡¡telephony¡¡is¡¡still¡¡far¡¡from¡¡being¡¡generally¡¡perceived£»¡¡mainly¡¡for¡¡psychological¡¡reasons¡£¡¡A¡¡telephone¡¡is¡¡not¡¡impressive¡£¡¡It¡¡has¡¡no¡¡bulk¡£¡¡It¡¡is¡¡not¡¡like¡¡the¡¡Singer¡¡Building¡¡or¡¡the¡¡Lusitania¡£¡¡Its¡¡wires¡¡and¡¡switchboards¡¡and¡¡batteries¡¡are¡¡scattered¡¡and¡¡hidden£»¡¡and¡¡few¡¡have¡¡sufficient¡¡imagination¡¡to¡¡picture¡¡them¡¡in¡¡all¡¡their¡¡complexity¡£¡¡If¡¡only¡¡it¡¡were¡¡possible¡¡to¡¡assemble¡¡the¡¡hundred¡¡or¡¡more¡¡telephone¡¡buildings¡¡of¡¡New¡¡York¡¡in¡¡one¡¡vast¡¡plaza£»¡¡and¡¡if¡¡the¡¡two¡¡thousand¡¡clerks¡¡and¡¡three¡¡thousand¡¡maintenance¡¡men¡¡and¡¡six¡¡thousand¡¡girl¡¡operators¡¡were¡¡to¡¡march¡¡to¡¡work¡¡each¡¡morning¡¡with¡¡bands¡¡and¡¡banners£»¡¡then£»¡¡perhaps£»¡¡there¡¡might¡¡be¡¡the¡¡necessary¡¡quality¡¡of¡¡impressiveness¡¡by¡¡which¡¡any¡¡large¡¡idea¡¡must¡¡always¡¡be¡¡imparted¡¡to¡¡the¡¡public¡¡mind¡£
For¡¡lack¡¡of¡¡a¡¡seven¡¡and¡¡one¡half¡¡cent¡¡coin£»¡¡there¡¡is¡¡now¡¡five¡cent¡¡telephony¡¡even¡¡in¡¡the¡¡largest¡¡American¡¡cities¡£¡¡For¡¡five¡¡cents¡¡whoever¡¡wishes¡¡has¡¡an¡¡entire¡¡wire¡system¡¡at¡¡his¡¡service£»¡¡a¡¡system¡¡that¡¡is¡¡kept¡¡waiting¡¡by¡¡day¡¡and¡¡night£»¡¡so¡¡that¡¡it¡¡will¡¡be¡¡ready¡¡the¡¡instant¡¡he¡¡needs¡¡it¡£¡¡This¡¡system¡¡may¡¡have¡¡cost¡¡from¡¡twenty¡¡to¡¡fifty¡¡millions£»¡¡yet¡¡it¡¡may¡¡be¡¡hired¡¡for¡¡one¡eighth¡¡the¡¡cost¡¡of¡¡renting¡¡an¡¡automobile¡£¡¡Even¡¡in¡¡long¡¡¡distance¡¡telephony£»¡¡the¡¡expense¡¡of¡¡a¡¡message¡¡dwindles¡¡when¡¡it¡¡is¡¡compared¡¡with¡¡the¡¡price¡¡of¡¡a¡¡return¡¡railway¡¡ticket¡£¡¡A¡¡talk¡¡from¡¡New¡¡York¡¡to¡¡Philadelphia£»¡¡for¡¡instance£»¡¡costs¡¡seventy¡five¡¡cents£»¡¡while¡¡the¡¡railway¡¡fare¡¡would¡¡be¡¡four¡¡dollars¡£¡¡From¡¡New¡¡York¡¡to¡¡Chicago¡¡a¡¡talk¡¡costs¡¡five¡¡dollars¡¡as¡¡against¡¡seventy¡¡dollars¡¡by¡¡rail¡£¡¡As¡¡Harriman¡¡once¡¡said£»¡¡¡¨I¡¡can't¡¡get¡¡from¡¡my¡¡home¡¡to¡¡the¡¡depot¡¡for¡¡the¡¡price¡¡of¡¡a¡¡talk¡¡to¡¡Omaha¡£¡¨
To¡¡say¡¡what¡¡the¡¡net¡¡profits¡¡have¡¡been£»¡¡to¡¡the¡¡entire¡¡body¡¡of¡¡people¡¡who¡¡have¡¡invested¡¡money¡¡in¡¡the¡¡telephone£»¡¡will¡¡always¡¡be¡¡more¡¡or¡¡less¡¡of¡¡a¡¡guess¡£¡¡The¡¡general¡¡belief¡¡that¡¡immense¡¡fortunes¡¡were¡¡made¡¡by¡¡the¡¡lucky¡¡holders¡¡of¡¡Bell¡¡stock£»¡¡is¡¡an¡¡exaggeration¡¡that¡¡has¡¡been¡¡kept¡¡alive¡¡by¡¡the¡¡promoters¡¡of¡¡wildcat¡¡companies¡£¡¡No¡¡such¡¡fortunes¡¡were¡¡made¡£¡¡¡¨I¡¡do¡¡not¡¡believe£»¡¨¡¡says¡¡Theodore¡¡Vail£»¡¡¡¨that¡¡any¡¡one¡¡man¡¡ever¡¡made¡¡a¡¡clear¡¡million¡¡out¡¡of¡¡the¡¡telephone¡£¡¨¡¡There¡¡are¡¡not¡¡apt¡¡to¡¡be¡¡any¡¡get¡rich¡quick¡¡for¡¡¡tunes¡¡made¡¡in¡¡corporations¡¡that¡¡issue¡¡no¡¡watered¡¡stock¡¡and¡¡do¡¡not¡¡capitalize¡¡their¡¡franchises¡£¡¡On¡¡the¡¡contrary£»¡¡up¡¡to¡¡1897£»¡¡the¡¡holders¡¡of¡¡stock¡¡in¡¡the¡¡Bell¡¡Companies¡¡had¡¡paid¡¡in¡¡four¡¡million£»¡¡seven¡¡hundred¡¡thousand¡¡dollars¡¡more¡¡than¡¡the¡¡par¡¡value£»¡¡and¡¡in¡¡the¡¡recent¡¡consolidation¡¡of¡¡Eastern¡¡companies£»¡¡under¡¡the¡¡presidency¡¡of¡¡Union¡¡N¡£¡¡Bethell£»¡¡the¡¡new¡¡stock¡¡was¡¡actually¡¡eight¡¡millions¡¡less¡¡than¡¡the¡¡stock¡¡that¡¡was¡¡retired¡£
Few¡¡telephone¡¡companies¡¡paid¡¡any¡¡profits¡¡at¡¡first¡£¡¡They¡¡had¡¡undervalued¡¡the¡¡cost¡¡of¡¡building¡¡and¡¡maintenance¡£¡¡Denver¡¡expected¡¡the¡¡cost¡¡to¡¡be¡¡two¡¡thousand£»¡¡five¡¡hundred¡¡dollars¡¡and¡¡spent¡¡sixty¡¡thousand¡¡dollars¡£¡¡Buffalo¡¡expected¡¡to¡¡pay¡¡three¡¡thousand¡¡dollars¡¡and¡¡had¡¡to¡¡pay¡¡one¡¡hundred¡¡and¡¡fifty¡¡thousand¡¡dollars¡£¡¡Also£»¡¡they¡¡made¡¡the¡¡unwelcome¡¡discovery¡¡that¡¡an¡¡exchange¡¡of¡¡two¡¡hundred¡¡costs¡¡more¡¡than¡¡twice¡¡as¡¡much¡¡as¡¡an¡¡exchange¡¡of¡¡one¡¡hundred£»¡¡because¡¡of¡¡the¡¡greater¡¡amount¡¡of¡¡traffic¡£¡¡Usually¡¡a¡¡dollar¡¡that¡¡is¡¡paid¡¡to¡¡a¡¡telephone¡¡company¡¡is¡¡divided¡¡as¡¡follows£º
Rent¡¡¡£¡£¡£¡£¡£¡£¡£¡£¡£¡£¡£¡£¡¡4c¡¡Taxes¡¡¡£¡£¡£¡£¡£¡£¡£¡£¡£¡£¡£¡¡4c¡¡Interest¡¡¡£¡£¡£¡£¡£¡£¡£¡£¡¡6c¡¡Surplus¡¡¡£¡£¡£¡£¡£¡£¡£¡£¡£¡¡8c¡¡Maintenance¡¡¡£¡£¡£¡£¡¡16c¡¡Dividends¡¡¡£¡£¡£¡£¡£¡£¡¡18c¡¡Labor¡¡¡£¡£¡£¡£¡£¡£¡£¡£¡£¡£¡¡44c¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡1¡£00
Most¡¡of¡¡the¡¡rate¡¡troubles¡¡£¨and¡¡their¡¡name¡¡has¡¡been¡¡legion£©¡¡have¡¡arisen¡¡because¡¡the¡¡telephone¡¡business¡¡was¡¡not¡¡understood¡£¡¡In¡¡fact£»¡¡until¡¡recently£»¡¡it¡¡did¡¡not¡¡understand¡¡itself¡£¡¡It¡¡persisted¡¡in¡¡holding¡¡to¡¡a¡¡local¡¡and¡¡individualistic¡¡view¡¡of¡¡its¡¡business¡£¡¡It¡¡was¡¡slow¡¡to¡¡put¡¡telephones¡¡in¡¡unprofitable¡¡places¡£¡¡It¡¡expected¡¡every¡¡instrument¡¡to¡¡pay¡¡its¡¡way¡£¡¡In¡¡many¡¡States£»¡¡both¡¡the¡¡telephone¡¡men¡¡and¡¡the¡¡public¡¡overlooked¡¡the¡¡most¡¡vital¡¡fact¡¡in¡¡the¡¡case£»¡¡which¡¡is¡¡that¡¡the¡¡members¡¡of¡¡a¡¡telephone¡¡system¡¡are¡¡above¡¡all¡¡else¡¡INTERDEPENDENT¡£
One¡¡telephone¡¡by¡¡itself¡¡has¡¡no¡¡value¡£¡¡It¡¡is¡¡as¡¡useless¡¡as¡¡a¡¡reed¡¡cut¡¡out¡¡of¡¡an¡¡organ¡¡or¡¡a¡¡finger¡¡that¡¡is¡¡severed¡¡from¡¡a¡¡hand¡£¡¡It¡¡is¡¡not¡¡even¡¡ornamental¡¡or¡¡adaptable¡¡to¡¡any¡¡other¡¡pur¡¡¡pose¡£¡¡It¡¡is¡¡not¡¡at¡¡all¡¡like¡¡a¡¡piano¡¡or¡¡a¡¡talking¡¡¡machine£»¡¡which¡¡has¡¡a¡¡separate¡¡existence¡£¡¡It¡¡is¡¡useful¡¡only¡¡in¡¡proportion¡¡to¡¡the¡¡number¡¡of¡¡other¡¡telephones¡¡it¡¡reaches¡£¡¡AND¡¡EVERY¡¡TELEPHONE¡¡ANYWHERE¡¡ADDS¡¡VALUE¡¡TO¡¡EVERY¡¡OTHER¡¡TELEPHONE¡¡ON¡¡THE¡¡SAME¡¡SYSTEM¡¡OF¡¡WIRES¡£¡¡That£»¡¡in¡¡a¡¡sentence£»¡¡is¡¡the¡¡keynote¡¡of¡¡equitable¡¡rates¡£
Many¡¡a¡¡telephone£»¡¡for¡¡the¡¡general¡¡good£»¡¡must¡¡be¡¡put¡¡where¡¡it¡¡does¡¡not¡¡earn¡¡its¡¡own¡¡living¡£¡¡At¡¡any¡¡time¡¡some¡¡sudden¡¡emergency¡¡may¡¡arise¡¡that¡¡will¡¡make¡¡it¡¡for¡¡the¡¡moment¡¡priceless¡£¡¡Especially¡¡since¡¡the¡¡advent¡¡of¡¡the¡¡automobile£»¡¡there¡¡is¡¡no¡¡nook¡¡or¡¡corner¡¡from¡¡which¡¡it¡¡may¡¡not¡¡be¡¡supremely¡¡necessary£»¡¡now¡¡and¡¡then£»¡¡to¡¡send¡¡a¡¡message¡£¡¡This¡¡principle¡¡was¡¡acted¡¡upon¡¡recently¡¡in¡¡a¡¡most¡¡practical¡¡way¡¡by¡¡the¡¡Pennsylvania¡¡Railroad£»¡¡which¡¡at¡¡its¡¡own¡¡expense¡¡installed¡¡five¡¡hundred¡¡and¡¡twenty¡five¡¡telephones¡¡in¡¡the¡¡homes¡¡of¡¡its¡¡workmen¡¡in¡¡Altoona¡£¡¡In¡¡the¡¡same¡¡way£»¡¡it¡¡is¡¡clearly¡¡the¡¡social¡¡duty¡¡of¡¡the¡¡telephone¡¡company¡¡to¡¡widen¡¡out¡¡its¡¡system¡¡until¡¡every¡¡point¡¡is¡¡covered£»¡¡and¡¡then¡¡to¡¡distribute¡¡its¡¡gross¡¡charges¡¡as¡¡fairly¡¡as¡¡it¡¡can¡£¡¡The¡¡whole¡¡must¡¡carry¡¡the¡¡wholethat¡¡is¡¡the¡¡philosophy¡¡of¡¡rates¡¡which¡¡must¡¡finally¡¡be¡¡recognized¡¡by¡¡legislatures¡¡and¡¡telephone¡¡companies¡¡alike¡£¡¡It¡¡can¡¡never£»¡¡of¡¡course£»¡¡be¡¡reduced¡¡to¡¡a¡¡system¡¡or¡¡formula¡£¡¡It¡¡will¡¡always¡¡be¡¡a¡¡matter¡¡of¡¡opinion¡¡and¡¡compromise£»¡¡requiring¡¡much¡¡skill¡¡and¡¡much¡¡patience¡£¡¡But¡¡there¡¡will¡¡seldom¡¡be¡¡any¡¡serious¡¡trouble¡¡when¡¡once¡¡its¡¡basic¡¡principles¡¡are¡¡understood¡£
Like¡¡all¡¡time¡saving¡¡inventions£»¡¡like¡¡the¡¡railroad£»¡¡the¡¡reaper£»¡¡and¡¡the¡¡Bessemer¡¡converter£»¡¡the¡¡telephone£»¡¡in¡¡the¡¡last¡¡analysis£»¡¡COSTS¡¡NOTHING£»¡¡IT¡¡IS¡¡THE¡¡LACK¡¡OF¡¡IT¡¡THAT¡¡COSTS¡£¡¡¡¡THE¡¡NATION¡¡THAT¡¡MOST¡¡IS¡¡THE¡¡NATION¡¡WITHOUT¡¡IT¡£
CHAPTER¡¡VIII
THE¡¡TELEPHONE¡¡IN¡¡FOREIGN¡¡COUNTRIES
The¡¡telephone¡¡was¡¡nearly¡¡a¡¡year¡¡old¡¡before¡¡Europe¡¡was¡¡aware¡¡of¡¡its¡¡existence¡£¡¡It¡¡received¡¡no¡¡public¡¡notice¡¡of¡¡any¡¡kind¡¡whatever¡¡until¡¡March¡¡3£»¡¡1877£»¡¡when¡¡the¡¡London¡¡Athenaeum¡¡mentioned¡¡it¡¡in¡¡a¡¡few¡¡careful¡¡sentences¡£¡¡It¡¡was¡¡not¡¡welcomed£»¡¡except¡¡by¡¡those¡¡who¡¡wished¡¡an¡¡evening's¡¡entertainment¡£¡¡And¡¡to¡¡the¡¡entire¡¡commercial¡¡world¡¡it¡¡was¡¡for¡¡four¡¡or¡¡five¡¡years¡¡a¡¡sort¡¡of¡¡scientific¡¡Billiken£»¡¡that¡¡never¡¡could¡¡be¡¡of¡¡any¡¡service¡¡to¡¡serious¡¡people¡£
One¡¡after¡¡another£»¡¡several¡¡American¡¡enthusiasts¡¡rushed¡¡posthaste¡¡to¡¡Europe£»¡¡with¡¡dreams¡¡of¡¡eager¡¡nations¡¡clamoring¡¡for¡¡telephone¡¡systems£»¡¡and¡¡one¡¡after¡¡another¡¡they¡¡failed¡£¡¡Frederick¡¡A¡£¡¡Gower¡¡was¡¡the¡¡first¡¡of¡¡these¡£¡¡He¡¡was¡¡an¡¡adventurous¡¡chevalier¡¡of¡¡business¡¡who¡¡gave¡¡up¡¡an¡¡agent's¡¡contract¡¡in¡¡return¡¡for¡¡a¡¡right¡¡to¡¡become¡¡a¡¡roving¡¡propagandist¡£¡¡Later¡¡he¡¡met¡¡a¡¡prima¡¡donna£»¡¡fell¡¡in¡¡love¡¡with¡¡and¡¡married¡¡her£»¡¡forsook¡¡telephony¡¡for¡¡ballooning£»¡¡and¡¡lost¡¡his¡¡life¡¡in¡¡attempting¡¡to¡¡fly¡¡across¡¡the¡¡English¡¡Channel¡£
Next¡¡went¡¡William¡¡H¡£¡¡Reynolds£»¡¡of¡¡Providence£»¡¡who¡¡had¡¡bought¡¡five¡eights¡¡of¡¡the¡¡British¡¡patent¡¡for¡¡five¡¡thousand¡¡dollars£»¡¡and¡¡half¡¡the¡¡right¡¡to¡¡Russia£»¡¡Spain£»¡¡Portugal£»¡¡and¡¡Italy¡¡for¡¡two¡¡thousand£»¡¡five¡¡hundred¡¡dollars¡£¡¡How¡¡he¡¡was¡¡received¡¡may¡¡be¡¡seen¡¡from¡¡a¡¡letter¡¡of¡¡his¡¡which¡¡has¡¡been¡¡preserved¡£¡¡¡¨I¡¡have¡¡been¡¡working¡¡in¡¡London¡¡for¡¡fo