Leases to expire in: Number of miles of telegraph line 3 to 6 years 1,280 7 " 10 " 4,046 11 " 20 " 3,211 20 " 99 " 4,927 Average unexpired length of all leases: 23.67 years. [41] Special _Report from the Select Committee on the Electric Telegraphs Bill_, 1868; q. 2,980, 3,023, and 1,132. [42] _Parliamentary Paper_, No. 316, Session 1873. =======================================+===============+============== |Sums to be Paid|Capitalization ---------------------------------------+---------------+-------------- Electric and International Co | 14,694,130 | 6,200,000 British and Irish Magnetic Co | 6,217,680 | 2,670,000 United Kingdom Co | 2,811,320 | 1,750,000 [A]London and Provincial Co | 300,000 | 325,000 Reuter's Telegram Co. (Norderney Cable)| 3,630,000 | 1,330,000 Universal Private Co | 922,105 | ? =======================================+===============+============== [A] This Company was paid the highest market value of its shares on the Stock Exchange in the first week of June, 1868, plus an allowance for prospective profits. [43] _Hansard's Parliamentary Debates_, July 5, 1869, p. 1,216 and following, and July 26, p. 759 and following. [44] _Hansard's Parliamentary Debates_, July 26, 1869, p. 767. [45] _Hansard's Parliamentary Debates_, July 26, 1869, p. 747. [46] _Report from the Select Committee on Revenue Department Estimates_, 1888; q. 1,984. [47] _Report of the Postmaster General_, 1895, p. 37. CHAPTER V NONE OF MR. SCUDAMORE'S FINANCIAL FORECASTS WERE REALIZED The completion of the telegraph system cost $8,500,000; Mr. Scudamore's successive estimates had been respectively $1,000,000 and $1,500,000. Mr. Scudamore's brilliant forecast of the increase of traffic under public ownership. Mr. Scudamore's appalling blunder in predicting that the State telegraphs would be self-supporting. Operating expenses on the average exceed 92.5% of the gross earnings, in contrast to Mr. Scudamore's estimate of 51% to 56%. The annual telegraph deficits aggregate 26.5% of the capital invested in the plant. The financial failure of the State telegraphs is not due to the large price paid to the telegraph companies and railway companies. The disillusionment of an eminent advocate of nationalization, Mr. W. Stanley Jevons. [Sidenote: _Estimated Expenditure_ versus _Actual Expenditure_]