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
Mr. Scudamore's concluding argument was that little or no relief from
the evils from which the public was suffering could be expected "so
long as the working of the telegraphs was conducted by commercial
companies striving chiefly to earn a dividend, and engaged in wasteful
competition." In support of the charge of wasteful competition he
stated "that many large districts are provided with duplicate and
triplicate lines, worked by different companies, but taking much the
same course and serving precisely the same places; and that these
duplicate or triplicate lines and duplicate or triplicate offices only
divide the business without materially increasing the accommodation of
the districts or towns which they serve." But when Mr. Scudamore sought
to substantiate this charge of waste arising out of competition, he
could do no more than state that not less than 2,000 miles of line in
a total of 16,066 miles were redundant, and that perhaps 300 to 350
offices in a total of 2,040 offices were redundant.
* * * * *
The evidence presented by Mr. Scudamore failed to reveal a situation
that called for so drastic a remedy as the nationalization of
the telegraphs. It revealed no evils or shortcomings that it was
unreasonable to expect would be sufficiently mitigated, if not entirely
removed, by the measures proposed by the telegraph companies.
Mr. Robert Grimston, Chairman of the Electric and International
Telegraph Company, stated that the telegraph companies long since would
have asked Parliament to permit them to consolidate, had there been
the least likelihood of Parliament granting the request. Consolidation
would have made the resulting amalgamated company so strong that the
company would have been justified in adopting a bolder policy in the
matter of extending the telegraph lines to places remote from the
railways. No single company could afford to assume too large a burden
of lines that would begin as "suckers" rather than "feeders." A company
with a large burden of that kind would be in a precarious position,
because any of the other existing companies, or some new company, might
take advantage of the situation and cut heavily into that part of the
company's business that was carried on between the large cities and was
bearing the burden of the non-paying extensions. But if the existing
companies were to consolidate, the resulting company would become so
strong that it need not fear such competition from any company newly
to be organized. That there was much strength in that argument appears
from the fact that, in 1869, Mr. Scudamore as well as the Government
adopted it in support of the request that the State be given the
monopoly of the business of transmitting messages by electricity. Mr.
Scudamore argued that since the State was going to assume the burden of
building and operating a large number of unprofitable, or relatively
unprofitable, extensions, it should not be exposed to the possibility
Public-domain text, read in full here on John Shaqi.
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