CHAPTER II

THE ARGUMENT FOR THE NATIONALIZATION OF THE TELEGRAPHS

The indictment of the telegraph companies. The argument

from foreign experience. The promise of reduced tariffs

and increased facilities. The alleged financial success of

foreign State telegraphs: Belgium, Switzerland and France. The

argument from British company experience.

In 1856 the Chambers of Commerce of Great Britain, under the leadership

of the Chamber of Commerce of Edinburgh, began an agitation for the

purchase by the Government of the properties of the several British

telegraph companies. In 1865, the telegraph companies, acting in

unison, withdrew the reduced rate of twenty-four cents for twenty

words, address free, that had been in force, since 1861, between

certain large cities. That action, which will be described further on,

caused the Chambers of Commerce to increase the agitation for State

purchase. In September, 1865, Lord Stanley of Alderley, Postmaster

General, commissioned Mr. F. I. Scudamore, Second Secretary of the

Post Office, "to inquire and report whether, in his opinion, the

electric telegraph service might be beneficially worked by the Post

Office--whether, if so worked, it would possess any advantages over

a system worked by private companies--and whether it would entail

any very large expenditure on the Post Office Department beyond the

purchase of existing rights."

In July, 1866, Mr. Scudamore reported, recommending the purchase

of the telegraphs. In February, 1868, he submitted a supplementary

report; and in 1868 and 1869, he acted as the chief witness for the

Government before the Parliamentary Committees appointed to report on

the Government's Bills proposing to authorize the State to acquire

and operate the telegraphs.[4] The extent to which the Government,

throughout the considerations and negotiations which finally ended in

the nationalization of the telegraphs, relied almost exclusively upon

evidence supplied by Mr. Scudamore, is indicated in the statement made

by the Chancellor of the Exchequer, Mr. G. W. Hunt, on July 21, 1868,

that Mr. Scudamore "might be said to be the author of the Bill to

acquire the telegraphs."[5]

[Sidenote: _Indictment of the Telegraph Companies_]

Mr. Scudamore reported that the Chambers of Commerce, and the various

writers in the periodical and newspaper press who had supported the

proposal of State purchase, had concurred in the following general

propositions: "that the charges made by the telegraph companies were

too high, and tended to check the growth of telegraphic correspondence;

that there were frequent delays of messages; that many important

districts were unprovided with telegraphic facilities; that in many

places the telegraph office was inconveniently remote from the centre

of business, and was open for too small a portion of the day; that

little or no improvement could be expected so long as the working of

the telegraphs was conducted by commercial companies striving chiefly

to earn a dividend and engaged in wasteful competition with each other;

and, finally, that the growth of telegraphic correspondence had been

greatly stimulated in Belgium and Switzerland by the annexation of the

telegraphs to the Post Offices of those countries, and the consequent

adoption of a low scale of charges; and that in Great Britain like

results would follow the adoption of like means, and that from the

annexation of the British telegraphs to the British Post Office there

would accrue great advantage to the public, and ultimately a large

revenue to the State." Subsequently, before the Select Committees of

Parliament, Mr. Scudamore maintained that in the hands of the State the

telegraphs would pay from the start.

Mr. Scudamore continued his report with the statement that he had

satisfied himself that in Great Britain the telegraph was not in

such general use as upon the Continent; that "the class who used the

telegraphs most freely were stock brokers, mining agents, ship brokers,

Colonial brokers, racing and betting men, fruit merchants and others

engaged in business of a speculative character, or who deal in articles

of a perishable nature. Even general merchants used the telegraphs

comparatively little, compared with those engaged in the more

speculative branches of commerce." He added that from 1862 to 1868 the

annual increase in the number of telegraphic messages had ranged pretty

evenly from 25 per cent. to 30 per cent., indicating merely a gradual

increase in the telegraphic correspondence of those classes who had

been the first to use the telegraphs. He said there had been none of

those "sudden and prodigious jumps" that had occurred on the Continent

after each reduction in the charges for telegraphic messages, or after

each extension of the telegraph system to the smaller towns.

Mr. Scudamore held that it was a serious indictment of the manner

in which the telegraph companies had discharged their duties to the

public, that the small tradesman had not learned to order goods by

telegraph, and had not thereby enabled himself to get along with a

smaller stock of goods kept constantly on hand; that the fishing

villages on the remote coasts of Scotland that had no railways, had no

telegraphs; that the public did not send "millions of messages" of this

kind: "I shall not be home to dinner;" "I will bring down some fish;"

"You can meet me at four;" and that the wife and children, away from

their home in the country village, did not telegraph to the husband and

father: "Send me a money order." Mr. Scudamore's notions of the uses to

which the telegraphs ought to be put were shared by the Chancellor of

the Exchequer, Mr. Hunt, who looked forward to the day when "persons

who have a difficulty in writing letters will have less difficulty in

going to a telegraph office and sending a message to a friend than

writing a letter."[6]

[Sidenote: _Argument from Foreign Experience_]

Mr. Scudamore supported his position with the subjoined reports from

countries in which the State operated the telegraphs. The Danish

Government had reported that the telegraph was used by merchants

generally and for social and domestic purposes. Prussia had reported

that in the early days, when the charges had been high, the use of the

telegraph had been confined almost exclusively to bankers, brokers,

large commercial houses and newspaper correspondents, but that with

each reduction in the charges, or extension of the telegraphs to small

towns, the number of those who regularly sent out and received messages

had increased considerably. Switzerland had reported that messages

relating to personal business and family affairs formed as important

a part of the whole traffic as the messages of banking interests and

other trading interests.

France had reported that 38 per cent. of the messages related to

personal business and family affairs; and Belgium had reported that

nearly 59 per cent. of the messages related to personal business and

family affairs.

To indicate the manner in which the use of the telegraph increased

with reductions in the charges made, Mr. Scudamore reported that in

Belgium, in 1863, a reduction of 33 per cent. in the charge had been

followed by an increase of 80 per cent. in the number of telegrams;

and that, in 1866, a reduction of 50 per cent. in the charges had been

followed by an increase of 85 per cent. in the traffic. In France, in

1862, a reduction of 35 per cent. in the charge, had led to an increase

of 64 per cent. in the number of messages. In Switzerland, in 1868, a

reduction of 50 per cent. in the charge had been followed, in the next

three months, by an increase in business of 90 per cent. In Prussia,

in 1867, a reduction of the charge by 33 per cent. had, in the first

month, increased the number of messages by 70 per cent. The increase in

business always had followed immediately, said Mr. Scudamore, showing

that new classes of people took up the use of the telegraphs.

Finally, Mr. Scudamore stated that in 1866, the proportion borne by the

total of telegrams sent to the aggregate of letters sent, had been:

in Belgium, one telegram for every 37 letters; in Switzerland, one

telegram for every 69 letters; and in the United Kingdom, one telegram

for every 121 letters. The relative failure of the people of the United

Kingdom to use the telegraph freely, Mr. Scudamore ascribed to the

high charges made by the telegraph companies, and to the restricted

facilities offered by the companies.

In 1868, the British companies were charging 24 cents for a twenty-word

message, over distances not exceeding 100 miles; 36 cents for distances

between 100 and 200 miles; and 48 cents for distances exceeding 200

miles. For messages passing between Great Britain and Ireland, the

charge ranged from $0.72 to $1.44. In all cases the addresses of the

sender and of the sendee were carried free.

[Sidenote: _Promise of Lower Charges and Better Service_]

The Government proposed to make a uniform charge of 24 cents for twenty

words, irrespective of distance. Mr. Scudamore stated that he fully

expected that in two or three years the Government would reduce its

charge to 12 cents. The only reason why the Government did not propose

to adopt immediately the last mentioned rate, was the desire not to

overcrowd the telegraphs at the start before there had been the chance

to learn with what volume of traffic the existing plant and staff could

cope.[7]

In 1868 there was in the United Kingdom one telegraph office for

every 13,000 people. The Government promised to inaugurate the

nationalization of the telegraphs by giving one office for every 6,000

people.[8]

In the shortest time possible, the Government would open a telegraph

office at every money order issuing Post Office. At that time the

practice was to establish a money order office wherever there was the

prospect of two money orders being issued a day; and in some instances

such offices were established on the prospect of one order a day.

The contention that the public interest demanded a great increase in

the number of telegraph offices, Mr. Scudamore supported by citing

the number of offices in Belgium and France. In the former country

there were upward of 125 telegraph offices which despatched less than

one telegram a day. In fact, some offices despatched less than one a

month. The Belgium Government, in figuring the cost of the Telegraph

Department, charged that Department nothing whatever for office rent,

or for fire, light and office fittings; nor did it charge the smaller

offices anything for the time given by the State Railway employees and

the postal employees to the Telegraph Department. In France there were

301 telegraph offices that took in less than $40 a year; 179 offices

that took in from $40 to $100; and 185 offices that took in from $100

to $200.

Mr. Scudamore over and again assured the Parliamentary Select

Committee of 1868 that the telegraphs in the hands of the State would

be self-supporting from the start, and that ultimately they would be

a considerable source of revenue. But he supported his indictment

of the telegraph companies of the United Kingdom by drawing upon

the experience of the State telegraphs of Belgium, Switzerland, and

France, under very low rates on inland telegrams, as distinguished

from telegrams in transit, or telegrams to and from foreign countries.

In taking that course, Mr. Scudamore ignored the fact that the inland

rates in question were not remunerative.

[Sidenote: _Belgium's Experience_]

The Belgium State telegraphs had been opened in 1850. In the years

1850 to 1856, they had earned, upon an average, 36.8 per cent. a year

upon their cost. In the period 1857 to 1862, they had earned, upon an

average, 24.3 per cent. In 1863 to 1865, the annual earnings fell to an

average of 13.5 per cent.; and in 1866 to 1869, they reached an average

of 2.8 per cent. only. The reasons for that rapid and steady decline of

the net earnings were: the opening of relatively unprofitable lines and

offices; increases in wages which the Government could not withhold;

a slackening in the rate of growth of the profits on the so-called

foreign messages and transit messages; and a rapid increase in the

losses upon the inland messages, which were carried at low rates for

the purpose of stimulating traffic.

At an early date the Belgium Government concluded that the first three

of the four factors just enumerated were beyond the control of the

State, and therefore permanent. It resolved, therefore, to attempt to

neutralize them by developing the inland traffic to such proportions

that it should become a source of profit, that traffic having been, up

to that time, a source of loss. Accordingly, on January 1st, 1863, the

Government lowered the charge on inland messages from 30 cents for 20

words, addresses included, to 20 cents. As that reduction did not prove

sufficiently effective, the charge on inland messages was reduced, on

December 1st, 1865, to 10 cents for 20 words. Under that reduction the

loss incurred upon the inland messages rose from an annual average of

$13,800 in 1863 to 1865, to an annual average of $59,500 in 1866 to

1869; and the average annual return upon the capital invested fell to

2.8 per cent. This evidence was before Mr. Scudamore when he argued

from the experience of Belgium in favor of a uniform rate, irrespective

of distance, of 24 cents for 20 words, not counting the addresses. Mr.

Scudamore shared the opinion of the Belgium Government that the rate of

10 cents would so stimulate the traffic as to become very profitable.

As a matter of fact, things went from bad to worse in Belgium, and

for many years the Belgian State telegraphs failed to earn operating

expenses.[9]

By way of explanation it should be added that the so-called transit

messages and foreign messages were profitable for two reasons. In

the first place, the Belgian Government kept high the rates on those

messages. In the second place, those messages are carried much more

cheaply than inland messages. The transit messages, say from Germany

to England, have only to be retransmitted; they are not received

across the counter, nor are they delivered across the counter and by

messenger. The foreign messages are burdened with only one of the two

foregoing relatively costly operations. In 1866 the Belgian Government

stated that, if the cost to the Telegraph Department of a given number

of words transmitted as a message in transit be represented by two, the

corresponding cost of the same number of words received and transmitted

as a foreign message would be represented by three, while the cost of

the same number of words received and transmitted as an inland message

would be represented by five.

[Sidenote: _Swiss Experience_]

The Swiss State telegraphs, the experience of which Mr. Scudamore also

cited in support of his Report, were opened in 1852; and in the period

from 1854 to 1866 they earned, on an average, 18 per cent. upon their

cost. Throughout that period the average receipts per inland messages

were 21 cents, and the average receipts per foreign message were 39

cents. In the year 1865 the average receipts per message were 21 cents

for inland messages, and 30 cents for foreign and transit messages,

which constituted 39 per cent. of the traffic. In the following year,

1866, the average receipts upon the inland traffic remained unchanged;

while those upon the foreign and transit traffic, 43 per cent. of the

total traffic, fell to 20 cents. This reduction of 33 per cent. in the

average receipts upon the foreign and transit traffic, caused a decline

of 45 per cent. in the total net receipts, and reduced the earnings

upon the capital from 15.2 per cent. in 1865, to 7.5 per cent. in 1866.

Thus far the receipts from the inland messages had not covered the

operating expenses incurred on account of those messages. The profits,

which had been very large, had come from the foreign messages and

messages in transit.[10] The Government, alarmed at the decline in

profits resulting from the fall in the average receipts per message

in the foreign and transit traffic, resolved upon a special effort to

stimulate the growth of the inland traffic. Accordingly, on January

1st, 1868, it lowered the rates on inland messages of 20 words, address

counted, from 20 cents to 10 cents. The inland traffic immediately

doubled; but the cost of handling it more than doubled. The increase

in the traffic necessitated the stringing of additional wires, and

the employment of more instruments, linemen, telegraphers and office

clerks. At the same time the Government was obliged to concede all

round increases of wages and salaries, in consequence of the general

increase in the cost of living which accompanied the world-wide

revival of trade ushered in by the discovery of gold in California and

Australia, the introduction of steamships upon the high seas, and the

building of railways in all parts of the world.

The inland messages increased by leaps and bounds from 397,289 in 1867

to 2,118,373 in 1876; and still the receipts from them did not cover

the operating expenses. In 1874 and 1875, for example, those expenses

averaged 14 cents per message. Accordingly, in 1877, the Government

adopted a new scale of charges on inland messages, to wit: an initial

charge of 6 cents per message, to which was added 0.5 cent for every

word transmitted. The Government assumed that the average length of the

inland messages would be 14 words; and that the average receipts per

message would be 13 cents. It hoped soon to reduce the average cost

per message below 13 cents, and hoped thus to make the inland traffic

remunerative. But those expectations never were realized; and to this

day the inland messages have been carried at a loss.[11]

[Sidenote: _French Experience_]

In 1861, the French State telegraphs reduced the rate for messages of

20 words, counting the address, to 20 cents for intradepartmental[12]

messages, and to 40 cents for interdepartmental messages. In 1866 the

average receipts per message were: 38 cents on the inland traffic;

$1.38 on the foreign traffic; and 55.8 cents on the traffic as a whole.

With these average receipts per message, the earnings were $1,541,519;

while the operating expenses were $1,796,692. In other words, the State

telegraphs lost $255,173 on the working, besides failing to earn any

interest on the capital invested in them, $4,760,000.

In making the foregoing statement, no allowance is made for the value

of the messages sent "on public service," messages for which the

State would have been obliged to pay, had the telegraphs been owned

or operated by companies. No such allowance can be made, because the

several official French statements submitted by Mr. Scudamore as to

the number of messages sent "on public service" applied to the years

1865 and 1867, years for which the operating expenses were not given.

Furthermore, the messages sent on public service in 1865 and 1867 were

so numerous as to indicate so loose a construction of the term "on

public service" as to make the returns worthless for the purpose of

determining the commercial value of the saving resulting to the State

from the public ownership of the telegraphs. For 1865, the number of

messages "on public service" was returned as 568,647, the equivalent of

23 per cent. of the number of messages sent by the public. For 1867,

the number was returned as 168,999, the equivalent of 5.94 per cent.

of the messages sent by the public. That those figures represented

an unreasonable resource to the telegraph for the transaction of the

State's business, is proved by the fact that in the United Kingdom,

in the period 1871 to 1890, the value of the messages sent "on public

service" was equivalent to less than 2 per cent. of the sums paid

by the public for the transmission of telegraphic messages. On the

basis of any reasonable use of the telegraphs "on public service,"

the financial results of the French State telegraphs would not have

been altered materially. The deficit, in 1866, on account of operating

expenses, $255,173, was sufficient to permit of the sending of 457,300

messages "on public service," the equivalent of 16 per cent. of the

messages sent by the public. It would be unreasonable to assume that

the State could have need of such recourse to the telegraphs.

[Sidenote: _Summary of Foreign Experience_]

To sum up the evidence from Belgium, Switzerland, and France,

submitted by Mr. Scudamore in 1866 to 1869: This evidence was that

rates of 20 cents and 10 cents for 20 words, applied to inland

messages, developed an enormous inland traffic, but that that traffic

was unremunerative. So long as the rates on foreign messages and

transit messages had remained very much higher than the rates on inland

messages, the Belgian and Swiss State telegraphs had paid handsomely.

But as soon as the latter rates had approached the level of the former

rates, the net revenue had tumbled headlong; and there was, in 1868 and

1869, no certainty that it would not disappear entirely, or be reduced

to such proportions as no longer to afford an adequate return upon the

capital invested in the telegraphs. In the case of France, no evidence

was presented that the State telegraphs ever had paid their way, though

the prices obtained for the transmission of foreign messages and

transit messages were between three and four times the returns obtained

from the transmission of inland messages.

[Sidenote: _English Companies' Experience_]

While the evidence from Belgium, Switzerland and France, presented by

Mr. Scudamore, did not support the proposition of a low uniform rate,

irrespective of distance, the evidence furnished by the experience of

the telegraph companies of the United Kingdom pointed strongly to the

conclusion that a uniform rate, irrespective of distance, of 24 cents

for 20 words, addresses not counted, was not remunerative in the then

state of efficiency of the telegraph. In this connection it must be

borne in mind that at this time messages had to be retransmitted at

intervals of 200 or 300 miles; and that, while the maximum distance a

message could travel was only 160 miles in Belgium, and 200 miles in

Switzerland, it was 600 miles in the United Kingdom.

In 1861 the telegraph business of the United Kingdom was in the

hands of two companies which had been organized in 1846 and 1852

respectively: the Electric and International Telegraph Company, and the

British and Irish Magnetic Telegraph Company. In that year, 1861, a new

company, the United Kingdom Electric Telegraph Company, invaded the

field with a uniform tariff, irrespective of distance, of 24 cents for

20 words, addresses free. The established companies had been charging

24 cents for distances up to 25 miles; 36 cents for distances up to 50

miles; 48 cents for distances up to 100 miles; 60 cents for distances

up to 200 miles; 96 cents for distances up to 300 miles; and $1.20 for

distances up to 400 miles.[13]

The United Kingdom Company began operations in 1861 with a trunk line

between London, Birmingham, Manchester, Liverpool and intermediate and

neighboring towns. Shortly afterward it opened a second trunk line from

London to Northampton, Leicester, Nottingham, Sheffield, Barnsley,

Wakefield, Leeds and Hull; and across through Bradford, Halifax,

Rochdale, and Huddersfield to Manchester and Liverpool. Subsequently

the company extended its line to Edinburgh and Glasgow, thus

lengthening to upward of 500 miles, the distance over which messages

were transmitted for 24 cents.[14]

In July 1865, the Board of Directors reported as follows to the

stockholders: "The Directors much regret to state that, notwithstanding

their earnest efforts to develop telegraphic communication so as to

render the shilling [24 cent] rate remunerative, the company has been

unable to earn a dividend. The system of the company consists of

trunk lines almost exclusively embracing nearly all the main centres

of business, telegraphically speaking, of the country. Seeing that

the company was working under the greatest possible advantages, and

that upward of four years had elapsed since the formation of the

company without the payment of any dividend to the proprietary, the

directors conceived that they would not be justified in continuing the

shilling [24 cent] system, and arrangements were therefore agreed to

for its alteration. The directors waited until the last moment before

reluctantly adopting this step, but having sought publicity in every

way, having persistently canvassed in every department of business, and

having endeavored by personal solicitations of numerous active agents

to attract trade, they at last saw themselves compelled to agree to a

measure that was greatly antagonistic to their personal wishes, but

absolutely essential for the well-being of the company, and requisite,

as they believe, for the permanent interests of the telegraphing

community."

In 1865, the United Kingdom Telegraph Company joined with its

competitors, the Electric and International Telegraph Company, and the

British and Irish Magnetic Telegraph Company, in the following rates

for 20 words, addresses free: 24 cents for distances up to 100 miles;

36 cents for distances between 100 and 200 miles; and 48 cents for

distances beyond 200 miles.

In July, 1866, the directors of the United Kingdom Telegraph Company

reported that in the last half-year "the company earned an amount

of profit equal to 6 per cent. dividend over the whole of its share

capital."

When the United Kingdom Company had entered the field, in 1861, with

the 24 cent rate, the old established companies, the Electric and

International and the British and Irish Magnetic, had been compelled

to adopt the 24 cent rate between all points reached by the United

Kingdom Company. In February, 1863, the directors of the Electric and

International Company reported that the 24 cent circuit between London,

Liverpool, Manchester and Birmingham still was unremunerative. The

company was losing money on every message transmitted, though the 24

cent rate had increased business to such an extent that the company

had been obliged to add two wires to the circuit in question. Since

the business done by means of the additional wires did not pay, the

directors had charged the cost of those wires to operating expenses,

not to capital account. The company did not care for the business, but

could not refuse to take it. In July, 1865, the directors reported:

"After a trial of four years, the experiment of a uniform shilling

rate [on certain circuits] irrespective of distance, has not justified

itself."

The half yearly reports of the British and Irish Magnetic Company from

1862 to 1865 reported that "for any but very short distances," the 24

cent tariff was "utterly unremunerative." The effect of the rate was to

absorb in unavoidable additional expenses a very large portion of the

increase in revenue coming from the increase in business.

In 1859 the London District Telegraph Company was organized for

the purpose of transmitting telegraph messages between points in

Metropolitan London. In 1860 the company had 52 stations and 73.5 miles

of line; and it carried 74,582 messages. In 1862 it had 84 offices and

103 miles of line, and it carried 243,849 messages. In 1865 the company

reached its highest point, carrying 316,272 messages. The company at

that time had 123 miles of line and 83 offices. The London District

Telegraph Company began with a tariff of 8 cents for 10 words, and 12

cents for a message of 10 words with a reply message of 10 words. It

soon changed its tariff to 12 cents for 15 words, experience having

shown that 10 words was an insufficient allowance.[15] Subsequently the

company added porterage charges for delivery beyond a certain distance.

In 1866, the company raised its tariff to 24 cents. The company never

earned operating expenses; and in November, 1867, its shares, upon

which $25 had been paid in, fluctuated between $3.75 and $6.25.[16]

Mr. Robert Grimston, Chairman of the Electric and International

Telegraph Company, in 1868 commented as follows upon the experience

of the London District Telegraph Company. "A very strong argument

against the popular fancy that the introduction of a low rate of charge

in towns and country districts would induce the shopkeepers and the

lower classes to use the telegraph is furnished by the example of the

London District Telegraph Company. A better or a wider field than

the metropolitan for an illustration of this theory could not surely

be furnished. The facts, however, being, that after several years of

struggling existence, the tariff being first fixed at 8 cents, and then

at 12 cents, the company has never paid its way."

FOOTNOTES:

[4] _A Report to the Postmaster General upon Certain Proposals which

have been made for transferring to the Post Office the Control and

Management of the Electric Telegraphs throughout the United Kingdom,

July, 1868_; _Supplementary Report to the Postmaster General upon the

Proposal for transferring to the Post Office the Control and Management

of the Electric Telegraphs, February, 1868_; _Special Report from the

Select Committee on the Electric Telegraphs Bill, 1868_; and _Report

from the Select Committee on the Telegraphic Bill, 1869_.

Unless otherwise stated, all the material statements made in this

chapter are taken from the foregoing official documents.

[5] _Hansard's Parliamentary Debates_, July 21, 1868, p. 1,603.

[6] _Special Report from the Select Committee on the Electric

Telegraphs Bill, 1868_; q. 2549 and 1581.

[7] _Special Report from the Select Committee on the Electric

Telegraphs Bill, 1868_; q. 2508; and _Report from the Select Committee

on the Telegraphic Bill, 1869_; q. 346.

[8] _Report from the Select Committee on the Telegraphic Bill, 1869_;

q. 327; and _Special Report from the Select Committee on the Electric

Telegraphs Bill, 1868_; q. 88.

[9] _Supplementary Report to the Postmaster General upon the Proposal

for transferring to the Post Office the Control and Management of the

Electric Telegraphs_, 1868; and Sir James Anderson, in _Journal of the

Statistical Society_, September, 1872.

BELGIAN STATE TELEGRAPHS

====+====================+====================+====================

| Inland messages | Foreign Messages |Messages in transit

----+-----+--------+-----+-----+--------+-----+-----+--------+-----

| Cost|Receipts| Loss| Cost|Receipts| Gain| Cost|Receipts| Gain

| per| per| per| per| per| per| per| per| per

| mes-| mes-| mes-| mes-| mes-| mes-| mes-| mes-| mes-

| sage| sage| sage| sage| sage| sage| sage| sage| sage

====+=====+========+=====+=====+========+=====+=====+========+=====

CENTS

====+=====+========+=====+=====+========+=====+=====+========+=====

1860| 42.0| 35.4| 6.8| 25.4| 49.0| 23.6| 16.8| 60.6| 43.8

1861| 38.4| 35.0| 3.4| 23.0| 44.8| 21.8| 15.4| 57.0| 41.6

1862| 39.4| 33.6| 5.8| 23.6| 43.2| 19.6| 15.8| 52.2| 36.4

1863| 30.0| 22.4| 7.6| 18.0| 34.0| 16.0| 12.0| 38.0| 26.0

1864| 27.0| 22.4| 4.6| 16.2| 31.2| 15.0| 10.8| 41.2| 30.4

1865| 25.4| 20.8| 4.6| 15.2| 27.0| 11.8| 10.2| 40.4| 30.2

1866| 18.0| 11.8| 6.2| 10.8| 23.4| 12.6| 7.2| 28.6| 21.4

1867| 18.2| 11.6| 6.6| 11.0| 24.0| 13.0| 7.2| 29.2| 22.0

1868| 18.4| 11.4| 7.0| 11.0| 22.4| 11.4| 7.4| 29.0| 21.6

1869| 17.2| 10.8| 6.4| 10.2| 21.2| 11.0| 6.8| 29.0| 22.2

====+=====+========+=====+=====+========+=====+=====+========+=====

[10] _Archiv für Post und Telegraphie_, 1903, p. 577.

[11] _Archiv für Post und Telegraphie_, 1903, p. 574.

[12] For administrative purposes France is divided into so-called

"Departments."

[13] _Journal of the Statistical Society_, March, 1881.

The Tariff of the Electric and International Co., for 20 words

(addresses not counted after 1854), was as follows:

In 1840, and for some years after, the charge was 2 cents a mile for

the first 50 miles; 1 cent a mile for the second 50 miles; and 5 cents

for each mile beyond 100 miles.

In 1850 the maximum charge for 20 words was reduced to $2.40; early in

1851 it was reduced to $2.04; and in November, 1851, it was reduced to

60 cents for 100 miles, and $1.20 for distances beyond 100 miles.

--------------+--------------+--------------+--------------+

1855 | 1862 | 1864 | 1865 |

-------+------+-------+------+-------+------+-------+------+

Miles | $ | Miles | $ | Miles | $ | Miles | $ |

-------+------+-------+------+-------+------+-------+------+

50 | 0.36 | 25 | 0.24 | 50 | 0.24 | | |

100 | 0.48 | 50 | 0.36 | | | | |

150 | 0.72 |100 | 0.48 |100 | 0.48 |100 | 0.24 |

151 and| 0.96 |200 | 0.60 |200 | 0.60 |100 to | |

beyond| |300 | 0.96 |300 and| |200 | 0.36 |

| |400 and| 1.20 | beyond| 0.72 |200 and| 0.48 |

| | beyond| | | | beyond| |

-------+------+-------+------+-------+------+-------+------+

-----------------------------------+--------+--------------+

| 1855 | 1865 |

-----------------------------------+--------+--------------+

| $ | $ |

To Ireland, by marine cable | 1.20 | 0.72 to 0.96 |

===================================+========+==============+

In February, 1872, two years after the uniform rate of 24 cents,

irrespective of distance, had been put in force by the Government, the

Telegraph Department made a careful examination of 7,000 messages sent

from the large cities to all parts of the United Kingdom. The average

charge per message was found to be 27 cents; under the rates enforced

by the telegraph companies in 1865, the average charge would have been

52 cents.--_Report of the Postmaster General_ for 1872.

[14] The United Kingdom Telegraph Co.

========+=============+=============+=========+===========+

| | |Number of| Number of |

|Miles of line|Miles of wire| offices | messages |

--------+-------------+-------------+---------+-----------+

1861 | 305 | 1968 | 16 | 11,549 |

1862 | 372 | 2741 | 22 | 133,514 |

1863 | 831 | 5099 | 48 | 226,729 |

1864 | 1343 | 8096 | 100 | 518,651 |

1865 | 1672 | 9506 | 125 | 743,870 |

========+=============+=============+=========+===========+

[15] _Journal of Statistical Society_, March, 1881.

[16] _Miscellaneous Statistics for the United Kingdom_, 1862, 1864,

1866 and 1868-9; _Parliamentary Paper_ No. 416, Session of 1867-68; and

_Journal of the Statistical Society_, March, 1881.

LONDON DISTRICT TELEGRAPH CO.

=======+========+========+=========+==========

|Miles of|Miles of|Number of|Number of

| line | wire | offices | messages

-------+--------+--------+---------+----------

1860 | 73 | 335 | 52 | 74,582

1861 | 92 | 378 | 78 | 114,022

1862 | 103 | 401 | 84 | 243,849

1863 | 107 | 430 | 81 | 247,606

1864 | 115 | 454 | 80 | 308,032

1865 | 123 | 470 | 83 | 316,272

1866 | 150 | 495 | 80 | 214,496

1867 | 150 | 495 | 81 | 239,583

1868 | 163 | | 82 |

=======+========+========+=========+==========

The British State Telegraphs A Study of the Problem of a Large Body of Civil Servants in a Democracy · 第 2 / 19 章