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
? 1 2,000 2,000
71 388,000
Mr. Scudamore also submitted a table giving the total number of places
with money order issuing Post Offices in England and Wales, Scotland
and Ireland; and stated what number of those places had respectively
perfect telegraph accommodation, imperfect telegraphic accommodation,
and no telegraphic accommodation.[26] Mr. Scudamore contended that the
public interest demanded that each one of those places should have
at least one telegraph office, that office to be located as near the
centre of population as was the Post Office. He submitted no argument
in support of that proposition. But Parliament and the public accepted
the proposition with avidity, since Mr. Scudamore promised that the
extension required to give such a service would not cost more than
$1,000,000, about 1/11 or 1/12 of the total sum invested by the several
telegraph companies. Mr. Scudamore also promised that, after the
service had been thus extended, the total operating expenses of the
State telegraphs would be less than 45 per cent. of the gross receipts;
that the State telegraphs would at least pay their way, and that
they probably would yield a handsome profit. But when Mr. Scudamore
came to extend the State telegraphs, he spent upon extensions, not
$1,000,000, but about $8,500,000, and when the State came to operate
the telegraphs, the operating expenses quickly ran up to 87 per cent.
of the gross receipts in three years, 1874 to 1876. These errors of
Mr. Scudamore justify the statement that he made no case whatever
against the system of _laissez-faire_, or private ownership, on the
ground of the extent of the facilities offered to the public, under the
system of private ownership. For obviously it was one thing to condemn
the telegraph companies for not building certain extensions, those
extensions being estimated to cost only $1,000,000, and a different
thing altogether to condemn the telegraph companies for refusing to
build out of hand extensions that would cost $8,500,000 and would be
relatively unremunerative, if not absolutely unprofitable.
[Sidenote: _Tariffs and Growth of Traffic_]
It remains to consider whether the facts as to the charges made by the
telegraph companies for the transmission of messages, and the facts
as to the rate of increase in the number of messages transmitted,
supported Mr. Scudamore's contention that the system of private
ownership of the telegraphs had failed to conserve and promote the
public interest.
Public-domain text, read in full here on John Shaqi.
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