Vail, Theodore Newton

▪ American businessman

born July 16, 1845, Minerva, Ohio, U.S.

died April 16, 1920, Baltimore, Md.

      American executive who twice headed the Bell Telephone Company at critical times and played a major role in establishing telephone services in the United States.

      After a highly successful career in the railway postal service, Vail was persuaded in 1878 to join Bell Telephone as general manager. During his active tenure in this position (until 1887) he developed a long-distance service by merging and interconnecting local exchanges, set up the Western Electric Company to manufacture telephone equipment, and placed the telephone industry on a sound financial basis.

      Retiring in 1889, he spent several years in Argentina developing a waterpower plant in Córdoba and a street railway in Buenos Aires. After the deaths of his wife (1905) and his only child (1906), he returned to the United States.

      In 1907 Vail was invited to return as president of the American Telephone & Telegraph Company (AT&T), the successor to Bell. When the Bell patents had expired in 1893 and 1894, hundreds of independent local firms had begun to compete with the Bell company. Vail chose to cooperate with the new competitors, charging them a fee for connection with his long-distance lines. In 1915 the first transcontinental telephone line was opened, and, in the same year, radio-telephone communications began across the Atlantic Ocean. Vail, who directed U.S. telephone services for the government during World War I, stayed on as AT&T president until his retirement in 1919.

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