His grand-uncle Stephen had built the engines for the Savannah, the first American steamship to cross the Atlantic Ocean; and his cousin Alfred was the friend and co-worker of Morse, the inventor of the telegraph. Morse had lived for several years at the Vail homestead in Morristown; and it was here that he erected his first telegraph line, a three-mile circle around the Iron Works, in 1838. He and Alfred Vail experimented side by side in the making of the telegraph, and Vail eventually received a fortune for his share of the Morse patent.
Thus it happened that young Theodore Vail learned the dramatic story of Morse at his mother's knee. As a boy, he played around the first telegraph line, and learned to put messages on the wire. His favorite toy was a little telegraph that he constructed for himself. At twenty-two he went West, in the vague hope of possessing a bonanza farm; then he swung back into telegraphy, and in a few years found himself in the Government Mail Service at Washington.
By 1876, he was at the head of this Department, which he completely reorganized. He introduced the bag system in postal cars, and made war on waste and clumsiness. By virtue of this position he was the one man in the United States who had a comprehensive view of all railways and telegraphs. He was much more apt, consequently, than other men to develop the idea of a national telephone system.
While in the midst of this bureaucratic house-cleaning he met Hubbard, who had just been appointed by President Hayes as the head of a commission on mail transportation. He and Hubbard were constantly thrown together, on trains and in hotels; and as Hubbard invariably had a pair of telephones in his valise, the two men soon became co-enthusiasts. Vail found himself painting brain-pictures of the future of the telephone, and by the time that he was asked to become its General Manager, he had become so confident that, as he said afterwards, he "was willing to leave a Government job with a small salary for a telephone job with no salary."So, just as Amos Kendall had left the post office service thirty years before to establish the telegraph business, Theodore N. Vail left the post office service to establish the telephone business.
He had been in authority over thirty-five hundred postal employees, and was the developer of a system that covered every inhabited portion of the country. Consequently, he had a quality of experience that was immensely valuable in straightening out the tangled affairs of the telephone.
Line by line, he mapped out a method, a policy, a system. He introduced a larger view of the telephone business, and swept off the table all schemes for selling out. He persuaded half a dozen of his post office friends to buy stock, so that in less than two months the first "Bell Telephone Company" was organized, with $450,000capital and a service of twelve thousand telephones.
Vail's first step, naturally, was to stiffen up the backbone of this little company, and to prevent the Western Union from frightening it into a surrender. He immediately sent a copy of Bell's patent to every agent, with orders to hold the fort against all opposition. "We have the only original telephone patents," he wrote; "we have organized and introduced the business, and we do not propose to have it taken from us by any corporation." To one agent, who was showing the white feather, he wrote:
"You have too great an idea of the Western Union.
If it was all massed in your one city you might well fear it; but it is represented there by one man only, and he has probably as much as he can attend to outside of the telephone. For you to acknowledge that you cannot compete with his influence when you make it your special business, is hardly the thing. There may be a dozen concerns that will all go to the Western Union, but they will not take with them all their friends.
I would advise that you go ahead and keep your present advantage. We must organize companies with sufficient vitality to carry on a fight, as it is simply useless to get a company started that will succumb to the first bit of opposition it may encounter."Next, having encouraged his thoroughly alarmed agents, Vail proceeded to build up a definite business policy. He stiffened up the contracts and made them good for five years only.
He confined each agent to one place, and reserved all rights to connect one city with another.
He established a department to collect and pro-tect any new inventions that concerned the telephone.
He agreed to take part of the royalties in stock, when any local company preferred to pay its debts in this way. And he took steps toward standardizing all telephonic apparatus by controlling the factories that made it.
These various measures were part of Vail's plan to create a national telephone system. His central idea, from the first, was not the mere leasing of telephones, but rather the creation of a Federal company that would be a permanent partner in the entire telephone business. Even in that day of small things, and amidst the confusion 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 Waterloo--a 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.
