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In 1954, there were very few phones in service that weren't black, a huge number that were older re-re-re-recycled models like the 302, and a significant number of even older recycled D1 (often called the "202") oval based models as well.  We had a black D1 phone (installed in 1949, twelve years after the 302 was introduced) until 1960 when we moved.  The phone installed at the next house was a black 302 with a straight handset cord.  This was some six years after the ad directly above ran, and ten years after the model 500 went into production.

 

IMO, the ad promotes a phone that wasn't available to all subscribers.  It even shows it with a coiled handset cord, which still wasn't all that common in 1954 either, particularly in a matching color.  A classic case of the right coast being the center of the corporate universe back then.
 
Ralph, I think the main reason we didn’t see many colored phones or curly handset cords then was because they cost EXTRA, EVERY mo. on your bill from Ma Bell. Extensions cost extra too. So, to pay just the initial base monthly fee, that meant one black desk set or wall phone with a regular, straight handset cord.

When we moved in 1958 we had two beige desksets, one in the entry hall, near the kitchen and the other in my parents bedroom.

Some people purchased plastic covers for their phones in different colors, but the handset cords and wall cords stayed the same generic black. One of my Aunts had a Red cover she bought at Macy’s.

Eddie
 
Also, look at how much Long Distance calls cost in 1954. People were very brief with their LD calls then, and also, didn’t make LD calls at the drop of a hat. If you were living on a tight budget, you had to be careful with your phone usage. Now, most everyone has free LD within the country with their basic phone service, if they even have a Landline anymore..
Eddie
 
For sure, Eddie.  The extra cost just wasn't worth it for the average subscriber.  But, I'd bet money that if you wanted a color-coordinated 500 set from Pacific Telephone in 1954, there would be a waiting period because they didn't have them on hand.  Even black 500s were in short supply until the early '60s around here.  Unless you really insisted, you got a 302, or maybe a 5302, which was just a 302 disguised as a 500 and retrofitted with a wonky ringer adjusting lever. 

 

In the early-mid '50s Ma Bell even gave specific orders to provisioning and installation personnel to issue a 302 unless the customer insisted on a more modern set.  The 302s were beyond plentiful, while WECo's production of 500s couldn't keep up with demand.  There is a two word explanation for this:  ringer adjustment.

 

We only used Long Distance on special occasions.  I remember many family celebrations around our dining room table when the phone would ring.  I'd answer it and hear a very loud, hollow, low pitched sort of hissing/roar, and the excitement ensued.  I knew it was my Uncle Frank calling from suburban Chicago.  The phone would get dragged to the table and passed around for everyone to have a chance to talk.
 
hear a very loud, hollow, low pitched sort of hissing/roar

Sounds like the sound of a long distance call setup over microwave relay to me! I’ve listened to many Evan Doorbell recordings and the sounds of the telephone system in those days was nothing short of fascinating, and you could figure out what was what too just by the sound you heard.
 
For a couple years post high-school I worked as a market research interviewer. We called on surveys ranging from soup to nuts...one long survey we had was calling into the farm country (if I remember, it was for ivermectin livestock wormer...). It was very interesting hearing the CO to CO handoffs and the re-generation of dial pulses as the call traversed the network. Only after working in telecom for my career do I understand the whys and wherefores....this also coincided with a Bell System strike, so we would call and tie up a directory assistance operator (manager filling in) for an hour getting all the numbers we might possibly want while the subs were in place.
 
Eddie, the ad with the "servant" plugging in the portable phone speaks to your remarks above about the cost of having an extension.  Even the "portable" telephone option would incur an expense for installing jacks where desired.  The image in that 1929 ad likely depicted a pre-crash household.
 

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