The History of the British Post OfficeHemmeon, Joseph Clarence
History
The History of the British Post Office
Hemmeon, Joseph Clarence
Postal service -- Great Britain -- History
In 1884, the prevailing public discontent in connection with the
Government's treatment of the situation manifested itself in the press
and in the House of Commons. The Post Office was accused of practising a
policy of strangulation toward the companies, and the
Postmaster-General, Mr. Fawcett, acknowledged that there was some truth
in the charge. He advised the Treasury that the companies' areas of
operation should be unlimited, and that their operations should be
confined to the transmission of oral communications. The restricted
licences were withdrawn and new, unrestricted licences granted,
terminable in 1911 with the same qualifications with reference to
royalties and government purchase that were inserted in the old
licences. Nominally the result produced free competition, but actually
competition was impossible until the expiration of the fundamental
patents in 1892. The year before their expiration, the companies
succeeded in getting control of the situation by an amalgamation of the
United Telephone Company with its licencees under the name of the
National Telephone Company. Mr. Dickinson, Deputy Chairman of the London
County Council, stated that the nominal capital of the United Telephone
Company, £900,000 (with an actual capital expenditure in 1887 within the
Metropolitan District of £228,180) was taken over by the National
Telephone Company at a cost of £1,484,375, and the Duke of Marlborough
said in the House of Lords that of the £3,250,000 capital of the new
company over £2,000,000 was "water." Mr. Raikes, the Postmaster-General,
who was in favour of competition, wrote to the United Company,
disapproving of the whole transaction. With the expiration of the
patent rights, the New Telephone Company was resuscitated, with the Duke
of Marlborough as chairman, an agreement having been concluded with the
Telephone Subscribers' Protective Association for a twelve guineas'
service in London, but it in turn was absorbed by the National Company,
much to the disgust of the members of the Association. So far as
way-leave rights were concerned the position of the companies remained
in a very unsatisfactory condition. A committee of the House of Commons
advised that certain way-leave rights should be granted, but nothing was
accomplished, although a bill was introduced in the House of Commons in
1885 to enable the companies to erect posts without the consent of the
road authorities.[828]
[828] _Rep. Com._, 1884-85, xii, p. 63; 1892, xvii, 278, sess. 1, pp.
3-5; 1895, xiii, 350, pp. 1-6, 92, 188-93; 1898, xii, 383, p. 12; _Parl.
Deb._, 3d ser., cclxxxviii, coll. 1052 f.; cccxxxvi, col. 1809;
cccxxxvii, col. 1435; cccxlvi, col. 908.
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