Page:Popular Science Monthly Volume 69.djvu/498

494 telephone exchange (Bridgeport), the first private branch exchange system (Ansonia), and the first telephone toll lines regularly connected to operating commercial telephone exchanges.

On February 12, 1878, territory was assigned to the New England Telephone Company, of Boston. On March 8, 1878, a license was granted to the American District Telegraph Company, of St. Louis, and on July 3, 1878, a license was granted for New York City and including a radius of thirty-three miles.

This activity created quite a demand for telephones, and by. the end of July, 1878, over 12,000 had been placed. Thus it was deemed wiser to organize a larger and more flexible corporation. So, on July 30, 3 878, Mr. Hubbard organized the Bell Telephone Company, of Boston, under the laws of Massachusetts, to manufacture, sell and use telephones outside of New England, and capitalized it at $150,000. Mr. Hubbard was trustee, Mr. Sanders, treasurer, Dr. Bell, electrician, and Thomas A. Watson, superintendent. This company acquired all the patents, property and rights of its predecessor, the Bell Telephone Association, and its headquarters remained at the Williams factory at 109 Court Street.

This second parent company entered into nine formal agreements granting exclusive rights to use Bell telephones in certain specified territory, and did such excellent work in developing the opening of exchanges, that some 22,000 telephones were in service when, on March 13, 1879, it was deemed the wiser plan to organize a new parent company having sufficient financial backing combined with the personal and commercial influence that would enable the business to be handled on the large scale that ripening conditions demanded. So the National Bell Telephone Company was chartered under the laws of the state of Massachusetts, and the company capitalized at $850,000. The executive offices of this parent company were moved to New York, in August, 1878, and located at 66 and 68 Reade Street. A year later the company moved back to Boston and secured offices at 95 Milk Street.

The officials and directors of the National Company were:

Now to turn back a year. Before the close of 1878, men successful in other lines of industry perceived that if the crude and limited