[A transcriber's note follows the text.] THE BRITISH STATE TELEGRAPHS [Illustration: MacMillan Company logo] THE BRITISH STATE TELEGRAPHS A STUDY OF THE PROBLEM OF A LARGE BODY OF CIVIL SERVANTS IN A DEMOCRACY BY HUGO RICHARD MEYER SOMETIME ASSISTANT PROFESSOR OF POLITICAL ECONOMY IN THE UNIVERSITY OF CHICAGO, AUTHOR OF "GOVERNMENT REGULATION OF RAILWAY RATES;" "MUNICIPAL OWNERSHIP IN GREAT BRITAIN" New York THE MACMILLAN COMPANY LONDON: MACMILLAN & CO., LTD. 1907 _All right reserved_ COPYRIGHT, 1907 BY THE MACMILLAN COMPANY Set up and electrotyped. Published October 1907 THE MASON-HENRY PRESS SYRACUSE, NEW YORK TO MY BROTHER PREFACE In order to keep within reasonable limits the size of this volume, the author has been obliged to reserve for a separate volume the story of the Telephone in Great Britain. The series of books promised in the Preface to the author's _Municipal Ownership in Great Britain_ will, therefore, number not four, but five. CONTENTS CHAPTER I INTRODUCTION 3 Scope of the inquiry. CHAPTER II THE ARGUMENT FOR THE NATIONALIZATION OF THE TELEGRAPHS 13 The indictment of the telegraph companies. The argument from foreign experience. The promise of reduced tariffs and increased facilities. The alleged financial success of foreign State telegraphs: Belgium, Switzerland and France. The argument from English company experience. CHAPTER III THE ALLEGED BREAK-DOWN OF LAISSEZ-FAIRE 36 Early history of telegraphy in Great Britain. The adequacy of private enterprise. Mr. Scudamore's loose use of statistics. Mr. Scudamore's test of adequacy of facilities. Telegraphic charges and growth of traffic in Great Britain. The alleged wastefulness of competition. The telegraph companies' proposal. CHAPTER IV THE PURCHASE OF THE TELEGRAPHS 57 Upon inadequate consideration the Disraeli Ministry estimates at $15,000,000 to $20,000,000 the cost of nationalization. Political expediency responsible for Government's inadequate investigation. The Government raises its estimate to $30,000,000; adding that it could afford to pay $40,000,000 to $50,000,000. Mr. Goschen, M. P., and Mr. Leeman, M. P., warn the House of Commons against the Government's estimates, which had been prepared by Mr. Scudamore. The Gladstone Ministry, relying on Mr. Scudamore, estimates at $3,500,000 the "reversionary rights" of the railway companies, for which rights the State ultimately paid $10,000,000 to $11,000,000. CHAPTER V NONE OF MR. SCUDAMORE'S FINANCIAL FORECASTS WERE REALIZED 77