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.