Chapters II to VI tell of the demand of the British Chambers of Commerce, under the leadership of the Chamber of Commerce of Edinburgh, for lower charges on telegraphic messages; the appointment by the Government of Mr. Scudamore, Second Secretary of the Post Office, to report upon the relative merits of private telegraphs and State telegraphs; the character of the report submitted by Mr. Scudamore; and the reasons why that report--upon which rested the whole argument for nationalization--was not adequately considered either by the Select Committee of the House of Commons, to whom the Bill for the purchase of the telegraphs was referred, or by the House of Commons itself. The principal reason was that the agitation carried on by the Chambers of Commerce and the newspaper press[1] proved so successful that both political parties committed themselves to nationalization before Mr. Scudamore's report had been submitted to searching criticism. Under the circumstances, the Disraeli Ministry was unwilling to go into the general election of 1868 without having made substantial progress toward the nationalization of the telegraphs. In order to remove opposition to its Bill in the House of Commons, the Disraeli Ministry conceded practically everything asked by the telegraph companies, the railway companies and the newspaper press.[2] The result was that the Government paid a high price absolutely for the telegraphs. Whether the price was too high, relatively speaking, is difficult to say. In the first place, the price paid--about $40,000,000--was well within the sum which the Government had said it could afford to pay, to wit, $40,000,000 to $50,000,000. In the second place, the Government acquired an industry "ready-made," with an established staff of highly trained men educated in the school of competition--the only school that thus far has proved itself capable of bringing out the highest efficiency that is in men. In the second place, the Government acquired the sole right to transmit messages by electricity--a right which subsequent events have proved to cover all future inventions, such as the transmission of messages by means of the telephone and of wireless telegraphy. Finally, in spite of the wastefulness that characterized the Government's operation of the telegraphs from the day the telegraphs were taken over, the Telegraph Department in the year 1880-81 became able to earn more than the interest upon the large capital invested in the telegraphs. But from that year on the Government not only became more and more wasteful, but also lost control over the charges made to the public for the transmission of messages. It is instructive to note, in this latter connection, that the control over the rates to be charged to the public was taken out of the hands of the Government by Dr. Cameron, who represented in the House of Commons the people of Glasgow, and that another Scotch city, Edinburgh, had initiated and maintained the campaign for the