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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：
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 four months；〃 he writes； 〃I have been to the Bank of England and elsewhere； and I have not found one man who will put one shilling into the telephone。〃
Bell himself hurried to England and Scotland on his wedding tour in 1878； with great expectations of having his invention appreciated in his native land。 But from a business point of view； his mission was a total failure。 He received dinners a…plenty； but no contracts； and came back to the United States an impoverished and disheartened man。 Then the optimistic Gardiner G。 Hubbard； Bell's father…in…law； threw himself against the European inertia and organized the International and Oriental Telephone Companies； which came to nothing of any importance。 In the same year even Enos M。 Barton； the sagacious founder of the Western Electric； went to France and England to establish an export trade in telephones； and failed。
These able men found their plans thwarted by the indifference of the public； and often by open hostility。 〃The telephone is little better than a toy；〃 said the Saturday Review； 〃it amazes ignorant people for a moment； but it is inferior to the well…established system of air… tubes。〃 〃What will become of the privacy of life？〃 asked another London editor。 〃What will become of the sanctity of the domestic hearth？〃 Writers vied with each other in inventing methods of pooh…poohing Bell and his invention。 〃It is ridiculously simple；〃 said one。 〃It is only an electrical speaking…tube；〃 said another。 〃It is a complicated form of speaking… trumpet；〃 said a third。 No British editor could at first conceive of any use for the telephone； except for divers and coal miners。 The price； too； created a general outcry。 Floods of toy telephones were being sold on the streets at a shilling apiece； and although the Government was charging sixty dollars a year for the use of its printing…telegraphs； people protested loudly against paying half as much for telephones。 As late as 1882； Herbert Spencer writes： 〃The telephone is scarcely used at all in London； and is unknown in the other English cities。〃
The first man of consequence to befriend the telephone was Lord Kelvin； then an untitled young scientist。 He had seen the original telephones at the Centennial in Philadelphia； and was so fascinated with them that the impulsive Bell had thrust them into his hands as a gift。 At the next meeting of the British Association for the Advancement of Science； Lord Kelvin exhibited these。 He did more。 He became the champion of the telephone。 He staked his reputation upon it。 He told the story of the tests made at the Centennial； and assured the sceptical scientists that he had not been deceived。 〃All this my own ears heard；〃 he said； 〃spoken to me with unmistakable distinctness by this circular disc of iron。〃
The scientists and electrical experts were； for the most part； split up into two camps。 Some of them said the telephone was impossible； while others said that 〃nothing could be simpler。〃 Almost all were agreed that what Bell had done was a humorous trifle。 But Lord Kelvin persisted。 He hammered the truth home that the telephone was 〃one of the most interesting inventions that has ever been made in the history of science。〃 He gave a demonstration with one end of the wire in a coal mine。 He stood side by side with Bell at a public meeting in Glasgow； and declared：
〃The things that were called telephones before Bell were as different from Bell's telephone as a series of hand…claps are different from the human voice。 They were in fact electrical claps； while Bell conceived the ideaTHE WHOLLY ORIGINAL AND NOVEL IDEAof giving continuity to the shocks； so as to perfectly reproduce the human voice。〃
One by one the scientists were forced to take the telephone seriously。 At a public test there was one noted professor who still stood in the ranks of the doubters。 He was asked to send a message。 He went to the instrument with a grin of incredulity； and thinking the whole exhibition a joke； shouted into the mouthpiece： 〃Hi diddle diddlefollow up that。〃 Then he listened for an answer。 The lo