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 financial results of the French State telegraphs would not have
been altered materially. The deficit, in 1866, on account of operating
expenses, $255,173, was sufficient to permit of the sending of 457,300
messages "on public service," the equivalent of 16 per cent. of the
messages sent by the public. It would be unreasonable to assume that
the State could have need of such recourse to the telegraphs.
[Sidenote: _Summary of Foreign Experience_]
To sum up the evidence from Belgium, Switzerland, and France,
submitted by Mr. Scudamore in 1866 to 1869: This evidence was that
rates of 20 cents and 10 cents for 20 words, applied to inland
messages, developed an enormous inland traffic, but that that traffic
was unremunerative. So long as the rates on foreign messages and
transit messages had remained very much higher than the rates on inland
messages, the Belgian and Swiss State telegraphs had paid handsomely.
But as soon as the latter rates had approached the level of the former
rates, the net revenue had tumbled headlong; and there was, in 1868 and
1869, no certainty that it would not disappear entirely, or be reduced
to such proportions as no longer to afford an adequate return upon the
capital invested in the telegraphs. In the case of France, no evidence
was presented that the State telegraphs ever had paid their way, though
the prices obtained for the transmission of foreign messages and
transit messages were between three and four times the returns obtained
from the transmission of inland messages.
[Sidenote: _English Companies' Experience_]
While the evidence from Belgium, Switzerland and France, presented by
Mr. Scudamore, did not support the proposition of a low uniform rate,
irrespective of distance, the evidence furnished by the experience of
the telegraph companies of the United Kingdom pointed strongly to the
conclusion that a uniform rate, irrespective of distance, of 24 cents
for 20 words, addresses not counted, was not remunerative in the then
state of efficiency of the telegraph. In this connection it must be
borne in mind that at this time messages had to be retransmitted at
intervals of 200 or 300 miles; and that, while the maximum distance a
message could travel was only 160 miles in Belgium, and 200 miles in
Switzerland, it was 600 miles in the United Kingdom.
Public-domain text, read in full here on John Shaqi.
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