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fH PAGE HIVE a » Te PUBLISHERS JOIN terday published the following des- Newspaper Publishers' Associationing that as consumers they have a held, informed The Star last evening, THE BITER BIT Amer rpool fof i NEWSPRINT FIGHT patch bearing on the newspaper sit-| have come to the conclusion, it is|big interest in the present price ar-|that he believed that in future ne: : (Brooklyn Eagle) Joheigan hed hie oa ey uation from Quebec: / learned, to enter the fight now go- Tangements now being made. gotiations these two associations| Thousands of Britons who have his ly e. We suppose Both the Canadian Daily Newspa- | ing on among the newsprint men, in] "A newspaper publisher in Quebec, | should. ake part in connection with| had experience of our tariff ways|have 'read somewhere that will chuckle over the plight of an| Britain wag a free trade try THE USHAWA DAILY MES, MONDAY, JANUARY 21, 1929 HIGHWAY BODY IS FORMED LONDON Mottreal, Jan. SL~=The Star yes:| per. Association and. the - American |order to protect their inerests, feel-| who asked that his name be with: | prices. y oh : = : : Great Lakes International Association Will Go Out for Tourists London, Ont, Jan, 21,--The Greéat Lakes International Highway As. sociation was organized in Lendon yesterday afternoon at a convention ' of delegates from Wisconsin, Michi. gan and Western Ontario, held at the Chamber of Commerce headquar- ters in Hotel London, W. F¥, Gallagher, of Owosso, Mich,, was elected president of the new body, which will proceed immediately to conduct an energetic campaign to |' interest tourists in a route running from Niagara Falls, N.Y, via Ham. ilton, London and Sarnia, Grand Rapids, Michigan, and Milwaukee to Madison, Wis, there to conect with the National Parks Highway route via Chicago across the west to Seattle, Other officers elected yesterday were: 1st Vice-President, Joseph Hickey, of London; 2nd Vice-Presid- ent (to be named by the Chamber of Commerce of Grand Rapids, Mich- igan); Secretary, BE, W, Viets, of 'Flint, Mich,; Assistant Secretary in Wisconsin, A, W, Tracy, who is sec- retary for the National Parks High- way Association, assistant for On- tario, to be named, Treasurer, Ross L., Mahon, of Port Huron, Mich;; Finance Committee, W, Eric Harris, of Sarnia; R, L, Mahon, of Port Turon, and Joseph Hickey, of Lon- on, The delegates were welcomed to London by Mayor W, J, Kilpatrick and President BE. W. Moore of the Chamber of Commerce. The Cham- ber of Commerce, through Secretary W. H, Wood, was instrumental in promoting the organization of the highway association, and the dele- gates at yesterday's meeting are confident that the new route will win a heavy trafic, It has wonder- ful scenic advantages and the few remaining gaps of unpaved section will be completed early next Sum- mer. 'HU EPDENIC IN 13. 15 ON WANE Reports From 40 Cities Show Decline In Flu Cases Washington, Jan. 21.--Reports from the U.S. Public Health Ser- vice and the Commerce Depart- ment showed that the influenza epidemic is on the down grade. For the frst time in nine weeks deaths from influenza and pneu. monia in 40 cities in the United States decreased. There were 3,283 deaths from both diseases last week, as com- pared with 3,893 for the week previous, a declie of 610, the Com- merce Department's report from the larger cities revealed. Of these deaths 1,974 were from pneu- monia and 1,309 from influenza. Reports from 43 states for the week ended January 12 received by the public health service shows ed 137,000 cases of influenza, as compared with 194,000 for the pre- ceding week, "There is a general improvement excepting a few scattered com munities and eastern states where the "flu" epideinic is now most severe," the Health Service said. Maryland and West Virginia re- ported increases and slight increas- es were shown in Wyoming, South Dakota and Alabama. MASI COMMITTED FOR AIDING ILLEGAL ENTRY OF ITALIANS Hamilton, Jan. 21.--Flavio Masi, local Italian who was arrested in It- aly by a Royal Canadian Mounted Policeman and brought back hereon a charge of uttering spurious per- mits to facilitate the illegal entry Italians into Canada, was committed for trial yesterday by i /ance in county police court, Bail of 520000 was renewed. e against Masi was - ferred by the Federal I rt Immigration at Ottawa. M. J. Red, KC, assisted by F. W. Griffiths of Niagara Falls, i cuting for the department, si's counsel is Charles M. Bell, KC. Several other Italians testified permits to bring their Italy to this country. I. P. Cook, 2 stationer, of testified to having received for a seal from a person his name as Frank Wise of of Bassic & Wise. The seal wording : "English Corporation, ted, with the Departmen gration and Colonization was delivered to either Wise or Masi, the witness said. Thomas Gibson, a multigrapher, of Toronto, swore that during August, 1927, he made several hundred copies of original forms left with him by ] § 3 git {hf Masi and Wise. LIEUT.-GOVERNOR OF » Governor of Manitoba, died in the hospital here Friday night. Death occurred shortly before midnight. Mr. Burroughs was operated on for appendicitis a week ago and his recovery had been anticipated until late in the evening when he suffered a relapse. A favorable bulletin on his condition had been issued by at- tending physicians early in the day, and he had been permitted to sit mp during the afternoon. It was a week ago that Mr. Bur- roughs was stricken with appendici- us, He was rushed to the hospital and an operation was performed a) undmght. 3 ok | hes | i ie Bell Telephone Company "and the American Company "TIVE seetionship between the Bell He- phone Company of Canada and the Arm» ican Telephone and Telegraph Company oonsists of i= 1.stock =the Amavein Telephone and Telograpn Company owns thirty- one per cent of the Bell Tele- phone Company's shaves, 8. contract~the Bell Telephone Company : owns a contract by which it has access to patents and the A. T. & T. supplies research products and other assistance on a sliding scale of payment. stock relationship hes existed since the company began in 1880, The contract was made in 1928, Each of these is highly im- rtant to telephone users in Ontario and Sobve and each will now be explained. how stock relation began LEXANDER Graham Bell invented the tels- phone after experiments in Brantford and Boston and obtained the patent in 1876. Fa gave the Canadian patent to his father, Professor Melville Bell, ' He kort the United States patent and made a trust agreement with three other men in Boston, who had helped him. The three other men were W. Sanders end Hubbard, Tho trusty wa ford 1 Boston in 1877 and was called the Bell Telephonw Company. Its purpose was to develop Bell's basic idea for commercial use. In Carada, the telephone was taken up as a side issue by telegraph companies and by sev- erc! iccal companies which either obtained a patcr, license from Melville Bell or did not worry much about patents. This situstivns became very confused. Those who had faith in the telephone saw the need of uniting these divergent activities and Hugh C. Baker, of Hamilton, secured a charter from the Dominion Government incorporating the Bell Telephone Company of Canada. Mr. Baker's object was to bring the various Canadian companies together and to buy the Canadian patent from Melville Bell. But the money to do this could not be raised and Melville Bell sold his Canadian patent back to the American Bell Telephone Company which, by this time, was becoming firmly estab- lished. money is finally provided AB owners of the Canadian patent the Amer- «= jcan company sent the late C. F. Sise to lanads with a view to uniting the various Canadian groups in one strong company ould take over the patents and develop business. He accomplished this at the end of 1850 and the IHL Jt gp BR i It ; > Telegraph Company. The Bill before Parliament TEE Bill which the Bell Telephone Company is bringing before parliament is an amendment to the company's act of incorporation, to allow the company to seek new capital from investors for extension of the telephone system, Previous advertisements have given the details of this situation and of the relationship between the telephone company and the Northern Electric Company. This advertisement tells of the relationship with the American Telephone and The remaining 7 per cent of the stock is held in the British Isles and other countries, Te average individual holding is 27 shares, which yield an income of $216 a year. The largest individual holding is 1510 shares, which is one quarter of one per cent of the total effect of stock relation HE Bell Telephone Company is thus an example of a great enterprise which has become thoroughly democratized. ft has become one of the largest institutions of the country, it has never ex- pioited the public, nor has it itself been ex- ploited for the benefit of either individuals or groups. It is contrelii«« Coday by an increasing body of Can dian shareholders and managed by Canas- dian directors to serve the Canadian publie. And it is serving the public at rates which are the lowest in the world for comparable service. To these circumstances the stock relationship with the American company has contributed with three definite advantages for Canadian telephone users: 1. It has been a source of new monsy for development. 2. & nas been a safeguard against exploiia- the telephone company has not been over- FRE E HUT hit 3. a source of experience JF OR over forty years, from the beginning of the company in 1880 until the making of the THE BELL TELEPHONE financial interest between the two companies dating from the circumstances of 1880. ° Some of the services are described In the paragraphs below relating to the contract. They represent saving in costs for telephone users and increased efficiency in operation. effect of contract relation "a YHE other part of the relation between the Bell Telephone Company of Canada and the American Telephone and Tele- graph Company is the contract, made in 1028. Prior to 1923 there was no definite service agreenent between the two companies. The Bell Telephone Company received some services from the American company but, as stated above, it received them through goodwill and without charge. The associated companies in the Bell system of the United States were receiving similar service but they were each bearing a share of the cost. Prior to 1923 some of these associated com- panies had pointed out thet en arrangement under which they paid for these services while he Canadian company paid nothing was un- | The American Talephone and Telegraph Com- pany agresd with this view and advised the Canadian company that services could no longer be given free of charge. The executive discussed the question fully with heads of departments and decided that the ser- vices rendered by the American company were too valuable to be abandoned. Accordingly they negotiated with the management of the Amer- can company and the contract of 1923 resulted. To sontract is terminable, at the option of the Canadian company at the end of 1932. The <dvantages which the Bell Telephone Com- pany has secured by the contract are: 1. use of all products and developments of Bell research laboratories; 2. rights to the use of all inventions; 3. experience in operating methods. In return for these the Bell Telephone Com- pany pays 2 fee which was approximately one and one-half per cent of its gross revenue and has since been reduced. The value of these services is indicated in the paragraphs below so far as their highly tech- nical nature will permit. ) size with distance, and the Savy wins costly, The loading eoil has saved millions dollars in telephone costs. ' The loading coil now in use was evolved 'by research workers from the formuls 'of Michael Pupin, It illustrates the fact that out such laboraturies few patents would has any practical value, because a patent----like Pupin formula~is usually but the germ of a idea. : The development of cable is another illustra» tion of what research has done for telephone service. Conduits beneath city streets now carry 1200 pairs of wires in a single duct where the limit once was 50 pairs. * Beneath the pavement of Yonge Strest, To» ronto, and St. Catherine Street, Montreal there are conduits which have served without replace» ment since 1801 because the high development of cable saves enlcrgement of duets. And increased cable capacity has come also quality of transmission. It is by such things that the yesearsh of the contract means money in the pockets of Canadian telephone users, becomes more valusble to the by its improving efficiency and because it is constantly being comnected with thousands new telephones. But this development does bring increased rates because increasing are largely offset by the economies which search produces. controls over 5,000 patents which cover every phase of telephone operation. The service contract of 1923 places the Amer- fcan company under obligation to take out Canadian patents on new devices which the Canadian company may wish to use or protect. to terminate the contract provision has besa made to continue all patent rights. 3. esperience in operoting BECAUSE the telephone is constantly ime proving and because the system itself is constantly growing larger the methods of oper- ation in every department are always changing. through trial and comparison and sometimes the process of experiment is costly and difficult until the best method is found. By its contract with the American company the COMPANY OF CANADA