The telegraph companies under private management. Proposals for government ownership and Mr. Scudamore's report. Conditions under which the telegraph companies were acquired. Public telegraph business of the railways. Cost of acquisition. Rates charged by the government. Reduction in rates in 1885. Guarantee obligations reduced. Underground lines constructed. Telegraphic relations with the continent. Position of the government with reference to the wireless telegraph companies. Attempts to place the government telegraphs on a paying basis do not prove a success. Financial aspect of the question. Reasons given for the lack of financial success. CHAPTER XI THE POST OFFICE AND THE TELEPHONE COMPANIES 219 Telephones introduced into England. Judicial decision in favour of the department. Restricted licences granted the companies. Feeble attempt on the part of the department to establish exchanges. Difficulties encountered by the companies. Popular discontent with the policy of the department leads to granting of unrestricted licences. Way-leave difficulties restrict efficiency of the companies. Agreement with National Telephone Company and acquisition of the trunk lines by the department. Demand for competition from some municipalities leads to granting of licences to a few cities and towns. The department itself establishes a competing exchange in London. History of the exchanges owned and operated by the municipalities. Struggle between the London County Council and the company's exchange in London. Relation between the company's and the department's London exchanges. Agreement with the company for the purchase of its exchanges in 1911. Financial aspect of the department's system. CHAPTER XII CONCLUSION 237 APPENDIX EXPENDITURE AND REVENUE TABLES 241 BIBLIOGRAPHY 253 INDEX 259 TABLE OF ABBREVIATIONS