THE TELEPHONE TRANSFER.

Press, Volume XLIX, Issue 14564, 15 January 1913, Page 8

THE TELEPHONE TRANSFER.

Tho British telephone award reported in our cable news this morning completes tho transfer of th© immense business of tho National Telephone Company to the Government. Tho transaction is probably tho largest of its kind that has taken place since the Government took over tho telegraphs from tho English railway companies, and it will be very interesting to students of State control to sco how tho system fares under tho management of the Government. It is a rather sinister omen that tho telegraph system in England has never yet paid its way. It is worth recalling the early history of the relations between tho telephono companies and the Government in England. When tho telephono first camo into use commercially, tho Government succeeded in- obtaining a decision of the Courts that a telephone was a "telegraph" under tho meaning of tho Telograplis Act, and consequently an infringement of tho monopoly of the Post Office. Tho authorities, however, had no desire to work tho invention themselves, so they granted licenses to companies for a period of thirty-ono years, and Sttvied a toll of ten per cent, on their gross receipts, which during the life of the licenses brought the country ia threo and a half millions. Tho business ,of tho National Telephone Company, which was a combination of tho original companies, grew to vast proiportions, though th© telephono is not in such common use in England as it is in somo other countries. Its capital outlay was over sixteen millions, and its gross income at th© end of tho license period threo and a half millions. Th© value of tho Company's plant has now boon assessed by arbitration at twelvo millions, which tho Government will have to find. At such a timo as this, with money wanted for th© Insurance Act, tho new education policy, naval j additions, and many other things, an | application to the money market will ! not help to remove tho existing strinS gency. The telephone system is one of j tho?© services which, by common consent, should bo in tho hands of the j State, but it is open to doubt whether ; the English public will be as well served j under the new control as under the old. | Complaints have been loud and numer- ! ous about deterioration of tho service I since tho Government took over the working of it. In his annual stateI mont a few weeks ago tho PostmasterGeneral attributed this to difficulties inseparable from tho change of control. No doubt the telephones ought to be under Government control in a country like litftlnnd, nnd it is to be hoped J that the principle will not bo discredited i by any falling-off in tho efficiency of the service. i