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authority as the Telegraph Service, the two services could be worked
together largely to the advantage of each other, and the Government
would be able to arrange for increased facilities for communication
which are now difficult or impossible. In support of this opinion they
desire to draw attention to the fact that the Telephone has largely
supplanted the use of the inland telegraph, and to the following
figures in further evidence of this competition :—
12.—Whereas in 1889 the net telegraph revenue of the Post Office
showed a surplus of £88,000, in 1892 there was a deficiency of
^90,000, and for 1898 this deficiency had increased to £307,000.
On the other hand the profits of the amalgamated Telephone Companies
have increased to such an extent that whereas for the year
ending 30th April, 1890, they were able to pay in dividends and interest
£143,000, and show a reserve fund of £53,000, they were able for the
year 1898 to pay in dividends and interest ,£294,000, and show a
reserve fund of £628,000; and this, notwithstanding the fact that for
the year ending 30th April, 1890, the Government received from the
Companies £30,000 by way of royalty, which has since increased until
for the year ending 31st December last they received no less than
£104,000 for this source.
Having regard to the foregoing considerations and the
declaration of the Government that England is behindhand
in the development of the telephone system,
"which is vital to the trade and commerce of the
country," your Memorialists pray that the Post Office
Authorities at once undertake and carry on a National
Telephone Service over the whole country, and if this
should render it necessary or desirable to acquire
existing undertakings your Memorialists are of opinion,
in view of the great inconvenience to traders and others
which will be caused by the absence of any regular
system until the year 1911, that such undertakings
should be acquired upon terms to be arrived at by
arbitration or other means.
A copy of the foregoing memorial was sent to the
Corporation and to each of the Local Authorities in
London, to all the County Councils and the Borough
Corporations in England, and to the London Chamber
of Commerce, with a request that if they concurred in
the views of the Board on the subject they would
address a similar communication to the Government.