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 1876, Mr. C. H. B. Patey, Principal Clerk in the Post Office
Department, stated that the average of the operating expenses per
telegraphic message transmitted was 16 cents to 18 cents.[83] At
that time, with a traffic of 21,000,000 messages a year, and average
receipts per message of 28 cents, the net revenue of the telegraphs was
$1,060,000, while the interest on the bonds outstanding was $1,475,000.
In 1879-80, with a traffic of 24,500,000 messages, average receipts
per message of 26 cents, the telegraphs yielded a net revenue of
$1,667,000, while the interest on the bonds outstanding was $1,632,000.
And in 1880-81, with a traffic of 27,300,000 messages, the net revenue
rose to $2,257,000, while the interest on the bonds outstanding
remained at $1,632,000. A large part of that improvement was due to a
diminution in the waste with which the telegraphs had been conducted
in 1874 to 1878. The nature and the extent of that waste are indicated
in the fact that the number of clerks, telegraphists, and subordinate
engineers was reduced from 6,783 in 1876, to 6,220 in 1880,[84] at the
same time that the number of telegraph offices was increased from 3,741
to 3,929, and the number of messages was increased from 21,000,000 to
24,500,000.
[Sidenote: _The Telegraphs become self-supporting_]
In 1880-81, the telegraphs earned 3.25 per cent. on $69,455,000,[85]
which was $16,180,000 in excess of the total capital invested in them.
Under conditions which shall be described on a subsequent page, the
Government, "very much at the instance of the House of Commons,"[86]
raised wages and salaries, so that, in the period from 1880-81 to
1884-85, the expenses on account of salaries and wages increased
$1,100,325, while the gross receipts increased only $752,635. In
1884-85, the net revenue sufficed to pay the interest at 3.25 per cent.
on $45,710,000 only.
Public-domain text, read in full here on John Shaqi.
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