I can't testify to the extent, but I can say most certainly that they did exist, and went by a TLA, something like LSV (Line Status Verifier or something) at one time.
I was one who was indeed pursued by the Ma Bell gesta^H^H^H^H inspectors who swore I had more devices that I was authorized on the line. Yes, I did, but I was VERY sure to be sure that only one ringer was connected.
I received a very snotty phone call at work from a Ma Bell agent confronting me about unauthorized equipment. Of course I lied my @$$ off. (At the time, lying to Ma Bell inspectors was not only ethical, but the honorable thing to do.) ;-) They wanted to come over right now and inspect, but I told them that said inspection would be at my convenience, and they seemed to back off. (Knowing good and well that it was very easy for me to prepare for inspection and they would be wasting their time. Both of us knew the rules to the game.) ;-)
Anyway, I phoned a friend who worked at Ma Bell and told him what was going on. He said he could very easily repeat the test using what they called the LSV. He did so, and said 'It looks to me like two', meaning two ringers. I was only authorized one, and I knew I had only one. He said that the tests were not always accurate due to the cable capacitance and the like. He also said that he would have a chat with the gestap^H^H^H^H^H^H agents and have them back off, which they did.
It turns out that a nosy neighbor had observed my extension in my garage, and the IW I had run next to the downspout to connect it and thought it was their Patriotic Duty to report me !!
***** Moderator's Note *****In N.E.T., the program was run with "DUE", a device which was supposed to Detect Unauthorized Equipment. It also measured capacitance, and I assume it was a software extension to the LSV.
One of the agents' favorite tricks was to call a "DUE" customer who was paying for one phone, right after school, and ask the kids to have their mom pick up the extension. With two voices on the line at the same time, they had an easy time collecting.
Bill Horne