The New York Telephone Company was organized in 1896, taking over the New York City operations of the American Bell Telephone Company. The Telephone Company of New York was formed under franchise in 1876 to rent telephone instruments to users, who were expected to provide wires to connect them, for example from factory to office. Such connections already existed for private telegraphs, and the new invention promised to save the cost of hiring a private telegraph operator. Manufacturers of steel wire for the Brooklyn Bridge then under construction were especially prominent among the customers... under this scheme, using their own product. Western Union subsidiaries, including Atlantic & Pacific Telegraph, Gold and Stock Telegraph, and American Speaking Telephone, based their New York and San Francisco operations on the telephone exchange principle and thus were larger and more advanced than the local Bell operations. Under the November 1879 settlement of the Elisha Gray patent infringement lawsuit, Western Union handed over its telephone operations to National Bell Telephone, which then renamed itself American Bell Telephone.
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