CHAPTER X

THE TELEGRAPH SYSTEM AS A BRANCH OF THE POSTAL DEPARTMENT 202

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.