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===Theodore Vail: The Leader Behind the Bell System===

===Theodore Vail: The Leader Behind the Bell System===

Theodore Vail instituted the Bell System. He was hired by Gardiner Hubbard to become the General Manager of the Bell Telephone Company in 1878. During that time the company is experiencing difficulties to raise capital because most politicians and financiers believe that the telephone is not a profitable business. Despite the negative impression regarding the telephone business and discouragements from family and friends Vail accepted the job.His yearly salary is even lesser compared to his former job as General Superintendent of the Railway Mail Service.<ref>[http://ntgen.tripod.com/bw/vail_ntbl.html#ted Vail, Theodore Newton - First president of ATT - Visionary that created the AT&T Monopoly]</ref>

Theodore Vail instituted the Bell System. He was hired by Gardiner Hubbard to become the General Manager of the Bell Telephone Company in 1878. During that time the company is experiencing difficulties to raise capital because most politicians and financiers believe that the telephone is not a profitable business. Despite the negative impression regarding the telephone business and discouragements from family and friends, Vail accepted the job giving up his position as General Superintendent of the Railway Mail Service.<ref>[http://ntgen.tripod.com/bw/vail_ntbl.html#ted Vail, Theodore Newton - First president of ATT - Visionary that created the AT&T Monopoly]</ref> He initiated management and organizational strategies which resulted to the company's remarkable growth. Vail also succeeded in negotiating an out of court settlement in connection with the company's patent infringement case against Western Union in 1879. Western Union recognized Alexander Graham Bell as the inventor of the telephone and agreed that it will stay out of the telephone business. In addition, Western Union also transferred all of its patent rights on Elisha Gray and Thomas Edison's telephone inventions. All entities who have interests in the telephone business will be licensed under the Bell patents. Furthermore, Western Union also agreed to pay 20% of the total costs of every new developed telephone patents. In return Bell Telephone Company agreed that it will not engage in the telegraph business and Western Union will be given a license to use the telephone to transmit telegraphic message and it will be given a 20% of the Bell telephone rentals and royalties. <ref>[http://www.porticus.org/bell/capsule_bell_system.html#The Corporation Is Born The Corporation Grows:The First Few Years with Vail]</ref>

<ref>[http://memory.loc.gov/mss/magbell/285/28500129/0001i.jpg Boston Daily Advertiser: The Telephone Settlement, Oct. 25, 1879]</ref>

==Early International Expansion==

==Early International Expansion==