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. Torrens moved an amendment adverse to the Bill, but his motion was
defeated by a vote of 148 to 23. Before the vote was taken, Mr. W.
Fowler, of the firm of Alexander & Company, Lombard Street, speaking of
the reversionary rights of the railway companies, had said: "Therefore,
for what the House knew, there might be contingent liabilities for
hundreds of thousands or millions of pounds sterling more."[45]
The measure became a law in August, 1869; and on February 5, 1870, the
telegraphs of the United Kingdom were transferred to the Post Office
Department. In the course of the year 1870, the Government bought
the properties of the Jersey and Guernsey Company and of the Isle of
Man Company. Those purchases, together with a large number of minor
purchases made in 1869, but not previously mentioned, raised the total
sum paid to the telegraph companies to $29,236,735.
[Sidenote: _Reversionary Rights estimated at $3,500,000 cost
$10,000,000_]
Not until 1879 were the last of the claims of the railway companies
adjusted. The writer has not succeeded in finding a specific official
statement of the aggregate sum paid to the railway companies for their
reversionary rights and for the grant to the Post Office of perpetual
and exclusive way-leaves over their properties, but he infers that
that sum was $10,000,000 or $11,000,000. That inference is based on
testimony given in 1888 by Mr. C. H. B. Patey,[46] Third Secretary to
the Post Office, and on information given by the Postmaster General in
1895.[47] It will be recalled, that in 1869, the Marquis of Hartington,
Postmaster General, had told the House of Commons that the payments
for the rights in question would not exceed $3,500,000. The Postmaster
General doubtless spoke on the strength of assurances given by Mr.
Scudamore. It will be remembered also that Mr. Leeman, in 1868, had
warned the House in strong terms that Mr. Scudamore's estimates were
not to be trusted. Finally, it will be remembered that in 1869, Mr. W.
Fowler, a financier of high standing, had warned the House of Commons
that "there might be contingent liabilities of thousands or millions of
pounds sterling more."
FOOTNOTES:
[29] _Hansard's Parliamentary Debates_, April 1, 1868, p. 678, the
Chancellor of the Exchequer.
[30] _Hansard's Parliamentary Debates_, June 9, 1868, p. 1,305.
[31] _Special Report from the Select Committee on the Electric
Telegraphs Bill_, 1868. Mr. Scudamore: q. 3,477 and following, 3,352 to
3,364, 172, and 3,379 to 3,386.
[32] _Hansard's Parliamentary Debates_, July 26, 1869, p. 755.
[33] _Special Report from the Select Committee on the Electric
Telegraphs Bill_, 1868; q. 3,366 and following, 3,484 and following,
and 2,204 to 2,226.
[34] _Hansard's Parliamentary Debates_, July 21, 1868, p. 1,557 and
following.
[35] _Special Report from the Select Committee on the Electric
Telegraphs Bill_, 1868; Mr. Foster, q. 2,857, _et passim_.
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