The mid-1870's were a heady time for Western Union. The well capitalized giant had established a network of wires and offices connecting every city or town of consequence from coast to coast. Even before the 1869 completion of the transcontinental railroad, Western Union had emerged as America's only truly nationwide company, and was poised to reap the fruits of a monopoly on transmission of news to America's newspapers. As Western Union's principal supplier, Western Electric was positioned to capitalize on the telegraph's position on the cutting edge of communications. ____________________________________________________________
Western Electric gained prestige at the Centennial Exposition in Philadelphia, when its products won five gold medals. In addition to telegraph equipment, the company offered a variety of electrical products, including various forms of alarms and mimeograph pens. The most significant product to the company's future, however, was one unveiled at the Exposition in June by Alexander Graham Bell: the telephone. ____________________________________________________________
Western Electric joined the Bell system in 1881, when Bell purchased a controlling interest in its stock. Prior to that time, manufacture of telephones for the Bell system had undergone two phases. Beginning in 1877, it had been done in Charles Williams, JR’s Boston shop, which had been the site of Bell's early experiments. Within two years, increasing volume overwhelmed the Williams shop, and Bell had licensed additional manufacturers in Baltimore, Chicago, and Cincinnati. This interim arrangement solved Bell's difficulties in meeting demand promptly, but the licensees were difficult to control. That led Bell to search for a single manufacturer with the resources to handle large volume. Bell found it in Western Electric, which by then was the largest electrical manufacturer in the United States._____________________________________________________
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