From Hookswitch to Grave

AT&T's monopolistic control of the American telephone system was built partly on acquiring Western Electric in 1881, transforming a potential competitor into its manufacturing arm. The article traces how Elisha Gray, an early telephone inventor and rival claimant to Alexander Graham Bell, ironically helped found Western Electric, only to lose his patent rights in legal battles that ultimately secured AT&T's dominance. This acquisition exemplified AT&T's strategy of eliminating competition through consolidation rather than relying on technical innovation alone.