The British State Telegraphs: A Study of the Problem of a Large Body of Civil Servants in a Democracy — John Shaqi
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 inland messages increased by leaps and bounds from 397,289 in 1867
to 2,118,373 in 1876; and still the receipts from them did not cover
the operating expenses. In 1874 and 1875, for example, those expenses
averaged 14 cents per message. Accordingly, in 1877, the Government
adopted a new scale of charges on inland messages, to wit: an initial
charge of 6 cents per message, to which was added 0.5 cent for every
word transmitted. The Government assumed that the average length of the
inland messages would be 14 words; and that the average receipts per
message would be 13 cents. It hoped soon to reduce the average cost
per message below 13 cents, and hoped thus to make the inland traffic
remunerative. But those expectations never were realized; and to this
day the inland messages have been carried at a loss.[11]
[Sidenote: _French Experience_]
In 1861, the French State telegraphs reduced the rate for messages of
20 words, counting the address, to 20 cents for intradepartmental[12]
messages, and to 40 cents for interdepartmental messages. In 1866 the
average receipts per message were: 38 cents on the inland traffic;
$1.38 on the foreign traffic; and 55.8 cents on the traffic as a whole.
With these average receipts per message, the earnings were $1,541,519;
while the operating expenses were $1,796,692. In other words, the State
telegraphs lost $255,173 on the working, besides failing to earn any
interest on the capital invested in them, $4,760,000.
In making the foregoing statement, no allowance is made for the value
of the messages sent "on public service," messages for which the
State would have been obliged to pay, had the telegraphs been owned
or operated by companies. No such allowance can be made, because the
several official French statements submitted by Mr. Scudamore as to
the number of messages sent "on public service" applied to the years
1865 and 1867, years for which the operating expenses were not given.
Furthermore, the messages sent on public service in 1865 and 1867 were
so numerous as to indicate so loose a construction of the term "on
public service" as to make the returns worthless for the purpose of
determining the commercial value of the saving resulting to the State
from the public ownership of the telegraphs. For 1865, the number of
messages "on public service" was returned as 568,647, the equivalent of
23 per cent. of the number of messages sent by the public. For 1867,
the number was returned as 168,999, the equivalent of 5.94 per cent.
of the messages sent by the public. That those figures represented
an unreasonable resource to the telegraph for the transaction of the
State's business, is proved by the fact that in the United Kingdom,
in the period 1871 to 1890, the value of the messages sent "on public
service" was equivalent to less than 2 per cent. of the sums paid
by the public for the transmission of telegraphic messages. On the
basis of any reasonable use of the telegraphs "on public service,"
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