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
In 1859 the London District Telegraph Company was organized for
the purpose of transmitting telegraph messages between points in
Metropolitan London. In 1860 the company had 52 stations and 73.5 miles
of line; and it carried 74,582 messages. In 1862 it had 84 offices and
103 miles of line, and it carried 243,849 messages. In 1865 the company
reached its highest point, carrying 316,272 messages. The company at
that time had 123 miles of line and 83 offices. The London District
Telegraph Company began with a tariff of 8 cents for 10 words, and 12
cents for a message of 10 words with a reply message of 10 words. It
soon changed its tariff to 12 cents for 15 words, experience having
shown that 10 words was an insufficient allowance.[15] Subsequently the
company added porterage charges for delivery beyond a certain distance.
In 1866, the company raised its tariff to 24 cents. The company never
earned operating expenses; and in November, 1867, its shares, upon
which $25 had been paid in, fluctuated between $3.75 and $6.25.[16]
Mr. Robert Grimston, Chairman of the Electric and International
Telegraph Company, in 1868 commented as follows upon the experience
of the London District Telegraph Company. "A very strong argument
against the popular fancy that the introduction of a low rate of charge
in towns and country districts would induce the shopkeepers and the
lower classes to use the telegraph is furnished by the example of the
London District Telegraph Company. A better or a wider field than
the metropolitan for an illustration of this theory could not surely
be furnished. The facts, however, being, that after several years of
struggling existence, the tariff being first fixed at 8 cents, and then
at 12 cents, the company has never paid its way."
FOOTNOTES:
[4] _A Report to the Postmaster General upon Certain Proposals which
have been made for transferring to the Post Office the Control and
Management of the Electric Telegraphs throughout the United Kingdom,
July, 1868_; _Supplementary Report to the Postmaster General upon the
Proposal for transferring to the Post Office the Control and Management
of the Electric Telegraphs, February, 1868_; _Special Report from the
Select Committee on the Electric Telegraphs Bill, 1868_; and _Report
from the Select Committee on the Telegraphic Bill, 1869_.
Unless otherwise stated, all the material statements made in this
chapter are taken from the foregoing official documents.
[5] _Hansard's Parliamentary Debates_, July 21, 1868, p. 1,603.
[6] _Special Report from the Select Committee on the Electric
Telegraphs Bill, 1868_; q. 2549 and 1581.
[7] _Special Report from the Select Committee on the Electric
Telegraphs Bill, 1868_; q. 2508; and _Report from the Select Committee
on the Telegraphic Bill, 1869_; q. 346.
[8] _Report from the Select Committee on the Telegraphic Bill, 1869_;
q. 327; and _Special Report from the Select Committee on the Electric
Telegraphs Bill, 1868_; q. 88.
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