The British State Telegraphs: A Study of the Problem of a Large Body of Civil Servants in a DemocracyMeyer, Hugo Richard
History
The British State Telegraphs: A Study of the Problem of a Large Body of Civil Servants in a Democracy
Meyer, Hugo Richard
Government ownership; Telegraph -- Great Britain
The contention that the public interest demanded a great increase in
the number of telegraph offices, Mr. Scudamore supported by citing
the number of offices in Belgium and France. In the former country
there were upward of 125 telegraph offices which despatched less than
one telegram a day. In fact, some offices despatched less than one a
month. The Belgium Government, in figuring the cost of the Telegraph
Department, charged that Department nothing whatever for office rent,
or for fire, light and office fittings; nor did it charge the smaller
offices anything for the time given by the State Railway employees and
the postal employees to the Telegraph Department. In France there were
301 telegraph offices that took in less than $40 a year; 179 offices
that took in from $40 to $100; and 185 offices that took in from $100
to $200.
Mr. Scudamore over and again assured the Parliamentary Select
Committee of 1868 that the telegraphs in the hands of the State would
be self-supporting from the start, and that ultimately they would be
a considerable source of revenue. But he supported his indictment
of the telegraph companies of the United Kingdom by drawing upon
the experience of the State telegraphs of Belgium, Switzerland, and
France, under very low rates on inland telegrams, as distinguished
from telegrams in transit, or telegrams to and from foreign countries.
In taking that course, Mr. Scudamore ignored the fact that the inland
rates in question were not remunerative.
[Sidenote: _Belgium's Experience_]
The Belgium State telegraphs had been opened in 1850. In the years
1850 to 1856, they had earned, upon an average, 36.8 per cent. a year
upon their cost. In the period 1857 to 1862, they had earned, upon an
average, 24.3 per cent. In 1863 to 1865, the annual earnings fell to an
average of 13.5 per cent.; and in 1866 to 1869, they reached an average
of 2.8 per cent. only. The reasons for that rapid and steady decline of
the net earnings were: the opening of relatively unprofitable lines and
offices; increases in wages which the Government could not withhold;
a slackening in the rate of growth of the profits on the so-called
foreign messages and transit messages; and a rapid increase in the
losses upon the inland messages, which were carried at low rates for
the purpose of stimulating traffic.
Public-domain text, read in full here on John Shaqi.
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