On March 30, 1885, Mr. Shaw-Lefevre, Postmaster General, brought in a bill to give effect to Dr. Cameron's resolution of March 29, 1883.[94] The measure provided for a rate of 12 cents for not exceeding 12 words, address to be counted, and one cent for each additional word. The Postmaster General began by reminding the House of Commons that Dr. Cameron's resolution had been carried against the Government, and by a considerable majority. That the Post Office has spent $2,500,000 in preparing for the increase of business anticipated from the 12 cent tariff. That the loss of net revenue was estimated at $900,000 for the first year; and that it would take four years to recover that loss. That since Dr. Cameron's resolution had been passed, the financial position of the telegraph department had grown "decidedly worse," the net revenue having fallen from $2,200,000 to $1,275,000, the latter sum yielding barely 2.5 per cent. on the capital invested in the telegraphs, $55,000,000. Mr. Shaw-Lefevre said the decrease in the net revenue had been due "to the very considerable additions to the salaries of the telegraphists and other officers made two or three years ago very much at the instance of honorable Members of the House, and which Mr. Fawcett [the then Postmaster General] considered to be absolutely necessary," and also to increased cost of maintenance[95] arising from the necessity of replacing worn-out plant. The Postmaster General also drew attention to the fact that a new and dangerous factor had appeared: the competition of the telephone.[96] The Bill became law; and the 12 cent tariff went into effect on October 1, 1885, the close of the first half of the fiscal year 1885-86. The number of messages jumped from 33,000,000 to 50,000,000, while the net revenue dropped from $1,370,000 to $440,000. In the next three years, 1887-88 to 1889-90, the number of messages increased to 62,400,000, and the net revenue rose to $1,451,000, or within $431,000 of the interest on the capital invested, $62,748,000. In the following year, 1890-91, the messages continued to increase at the rate at which they had increased in the three preceding years, and the net revenue would once more have sufficed to pay the interest on the capital invested, had the operating expenses not been swollen by increases in wages and salaries granted under pressure brought by the telegraph employees upon the House of Commons. The raising of salaries and wages continued through the subsequent years; and in the thirteen years 1893-94 to 1905-06, the State telegraphs have earned the operating expenses in five years only.[97]