*76. Industries Carried on by Government.*--In addition to the regulation in these various respects of industries carried on by private persons, and intervention for the protection of the public health, the government has extended its functions very considerably by taking up certain new duties or services, which it carries out itself instead of leaving to private hands. The post-office is such an old and well-established branch of the government's activity as not in itself to be included among newly adopted functions, but its administration has been extended since the middle of the century over at least four new fields of duty: the telegraph, the telephone, the parcels post, and the post-office savings-bank. The telegraph system of England was built up in the main and in its early stages by private persons and companies. After more than twenty-five years of competitive development, however, there was widespread public dissatisfaction with the service. Messages were expensive and telegraphing inconvenient. Many towns with populations from three thousand to six thousand were without telegraphic facilities nearer than five or ten miles, while the offices of competing companies were numerous in busy centres. In 1870, therefore, all private telegraph companies were bought up by the government at an expense of L10,130,000. A strict telegraphic monopoly in the hands of the government was established, and the telegraph made an integral part of the post-office system. In 1878 the telephone began to compete with the telegraph, and its relation to the government telegraphic monopoly became a matter of question. At first the government adopted the policy of collecting a ten per cent royalty on all messages, but allowed telephones to be established by private companies. In the meantime the various companies were being bought up successively by the National Telephone Company which was thus securing a virtual monopoly. In 1892 Parliament authorized the Postmaster General to spend L1,000,000, subsequently raised to L1,300,000, in the purchase of telephone lines, and prohibited any private construction of new lines. As a result, by 1897 the government had bought up all the main or trunk telephone lines and wires, leaving to the National Telephone Company its monopoly of all telephone communication inside of the towns. This monopoly was supposed to be in its legal possession until 1904, when it was anticipated that the government would buy out its property at a valuation. In 1898, however, there was an inquiry by Parliament, and a new "Telegraph Act" was passed in 1899. The monopoly of the National Company was discredited and the government began to enter into competition with it within the towns, and to authorize local governments and private companies under certain circumstances to do the same. It was provided that every extension of an old company and every new company must obtain a government license and that on the