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onfusion and rough…and…tumble of pioneering； he worked out the broad policy that prevails to…day； and this goes far to explain the fact that there are in the United States twice as many telephones as there are in all other countries combined。
Vail arrived very much as Blucher did at the battle of Waterlooa trifle late； but in time to prevent the telephone forces from being routed by the Old Guard of the Western Union。 He was scarcely seated in his managerial chair； when the Western Union threw the entire Bell army into confusion by launching the Edison transmitter。 Edison； who was at that time fairly started in his career of wizardry； had made an instrument of marvellous alertness。 It was beyond all argument superior to the telephones then in use and the lessees of Bell telephones clamored with one voice for 〃a transmitter as good as Edison's。〃 This； of course； could not be had in a moment； and the five months that followed were the darkest days in the childhood of the telephone。
How to compete with the Western Union； which had this superior transmitter； a host of agents； a network of wires； forty millions of capital； and a first claim upon all newspapers； hotels； railroads； and rights of waythat was the immediate problem that confronted the new General Manager。 Every inch of progress had to be fought for。 Several of his captains deserted； and he was compelled to take control of their unprofitable exchanges。 There was scarcely a mail that did not bring him some bulletin of discouragement or defeat。
In the effort to conciliate a hostile public； the telephone rates had everywhere been made too low。 Hubbard had set a price of twenty dollars a year； for the use of two telephones on a private line； and when exchanges were started； the rate was seldom more than three dollars a month。 There were deadheads in abundance； mostly officials and politicians。 In St。 Louis； one of the few cities that charged a sufficient price； nine… tenths of the merchants refused to become subscribers。 In Boston； the first pay…station ran three months before it earned a dollar。 Even as late as 1880； when the first National Telephone Convention was held at Niagara Falls； one of the delegates expressed the general situation very correctly when he said： 〃We were all in a state of enthusiastic uncertainty。 We were full of hope； yet when we analyzed those hopes they were very airy indeed。 There was probably not one company that could say it was making a cent； nor even that it EXPECTED to make a cent。〃
Especially in the largest cities； where the Western Union had most power； the lives of the telephone pioneers were packed with hardships and adventures。 In Philadelphia； for instance； a resolute young man named Thomas E。 Cornish was attacked as though he had suddenly become a public enemy； when he set out to establish the first telephone service。 No official would grant him a permit to string wires。 His workmen were arrested。 The printing…telegraph men warned him that he must either quit or be driven out。 When he asked capitalists for money； they replied that he might as well expect to lease jew's… harps as telephones。 Finally； he was compelled to resort to strategy where argument had failed。 He had received an order from Colonel Thomas Scott； who wanted a wire between his house and his office。 Colonel Scott was the President of the Pennsylvania Railroad； and therefore a man of the highest prestige in the city。 So as soon as Cornish had put this line in place； he kept his men at work stringing other lines。 When the police interfered； he showed them Colonel Scott's signature and was let alone。 In this way he put fifteen wires up before the trick was discovered； and soon afterwards； with eight subscribers； he founded the first Philadelphia exchange。
As may be imagined； such battling as this did not put much money into the treasury of the parent company； and the letters written by Sanders at this time prove that it was in a hard plight。
The following was one of the queries put to Hubbard by the overburdened Sanders：
〃How on earth do you expect me to meet a draft of two hundred and seventy…five dollars without a dollar in the treasury； and with a debt of thirty thousand dollars staring us in the face？〃 〃Vail's salary is small enough；〃 he continued in a second letter； 〃but as to where it is coming from I am not so clear。 Bradley is awfully blue and discouraged。 Williams is tormenting me for money and my personal credit will not stand everything。 I have advanced the Company two thousand dollars to…day； and Williams must have three thousand dollars more this month。 His pay…day has come and his capital will not carry him another inch。 If Bradley throws up his hand； I will unfold to you my last desperate plan。〃
And if the company had little money； it had less credit。 Once when Vail had ordered a small bill of goods from a merchant named Tillotson； of 15 Dey Street； New York； the merchant replied that the goods were ready； and so was the bill； which was seven dollars。 By a strange coincidence； the magnificent building of the New York Telephone Company stands to…day on the site of Tillotson's store。
Month after month； the little Bell Company lived from hand to mouth。 No salaries were paid in full。 Often； for weeks； they were not paid at all。 In Watson's note…book there are such entries during this period as 〃Lent Bell fifty cents；〃 〃Lent Hubbard twenty cents；〃 〃Bought one bottle beertoo bad can't have beer every day。〃 More than once Hubbard would have gone hungry had not Devonshire； the only clerk； shared with him the contents of a dinner…pail。 Each one of the little group was beset by taunts and temptations。 Watson was offered ten thousand dollars for his one…tenth interest； and hesitated three days before refusing it。 Railroad companies offered Vail a salary that was higher and sure； if he would superintend their mail business。 And as for Sanders； his folly was the talk of Haverhill。 One Haverhill capitalist； E。 J。 M。 Hale； stopped him on the street and asked； 〃Have n't you got a good leather business； Mr。 Sanders？〃 〃Yes；〃 replied Sanders。 〃Well；〃 said Hale； 〃you had better attend to it and quit playing on wind instruments。〃 Sanders's banker； too； became uneasy on one occasion and requested him to call at the bank。 〃Mr。 Sanders；〃 he said； 〃I will be obliged if you will take that telephone stock out of the bank； and give me in its place your note for thirty thousand dollars。 I am expecting the examiner here in a few days； and I don't want to get caught with that stuff in the bank。〃
Then； in the very midnight of this depression； poor Bell returned from England； whither he and his bride had gone on their honeymoon； and announced that he had no money； that he had failed to establish a telephone business in England； and that he must have a thousand dollars at once to pay his urgent debts。 He was thoroughly discouraged and sick。 As he lay in the Massachusetts General Hospital； he wrote a cry for help to the embattled little company that was making its desperate fight to protect his patents。 〃Thousands of telephones are now in operation in all parts of the country；〃 he said； 〃yet I have not yet received one cent from my invention。 On the contrary； I am largely out of pocket by my researches； as the mere value of the profession that I have sacrificed during my three years' work； amounts to twelve thousand dollars。〃
Fortunately； there came； in almost the same mail with Bell's letter； another letter from a young Bostonian named Francis Blake； with the good news that he had invented a transmitter as satisfactory as Edison's； and that he would prefer to sell it for stock instead of cash。 If ever a man came as an angel of light； that man was Francis Blake。 The possession of his transmitter instantly put the Bell Company on an even footing with the Western Union； in the matter of apparatus。 It encouraged the few capitalists who had invested money； and it stirred others to come forward。 The general business situation had by this time become more settled； and in four months the company had twenty…two thousand telephones in use； and had reorganized into the National Bell Telephone Company； with 850； 000 capital and with Colonel Forbes as its first President。 Forbes now picked up the load that had been carried so long by Sanders。 As the son of an East India merchant and the son…in…law of Ralph Waldo Emerson； he was a Bostonian of the Brahmin caste。 He was a big； four… square man who was both popular and efficient； and his leadership at this crisis was of immense value。
This reorganization put the telephone business into the hands of competent business men at every point。 It brought the heroic and experimental period to an end。 From this time onwards the telephone had strong friends in the financial world。 It was being attacked by the Western Union and by rival inventors who were jealous of Bell's achievement。 It was being half…starved by cheap rates and crippled by clumsy apparatus。 It was being abused and grumbled at by an impatient public。 But the art of making and marketing it had at last been built up into a commercial enterprise。 It was now a business； fighting for its life。
CHAPTER III
THE HOLDING OF THE BUSINESS
For seventeen months no one disput