The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1876-02-19 00:00:00

THE COST OF THE TELEGRAPH

. SERVICE. #
„.•
On Monday night Lord John Manners, ber Majesty's Posts-.
master-General, issued a Parliamentary ripper containing an
exposition of his views on the report of the committee •
appointed to investigate the cause of the Increisdd cost ot
the telegraph service since the acquisition of the telegraph
by the State.

With reference to the committee's insinuation that
there was want of method in keeping the accounts of
the department in details, his lordship states that these
were exhibited under 51 sub-heads in 1870-71, and 116
In 1871-72, the facts being classified most minutely.
As to dinrepancies between estimates and ex-
penditure, that those inseparable from the first
years of a new service are not likely to recur,
is, his lordship thinks, eioiured by the facts that the
disbursements for_ 1874-5 have been kept within
the limits of the Parliamentary grant. In regard to
supervision, Lord John Manners admits that the
strength of the engineering branch, now that few new
works are necessary, is excessive, but he purposes
reducing this department as soon as possible. Re-
specting the cost of the Secretary's department, Lord
John Manners says that whilst at present it only-
costs £1,900 more than it did under the regime of the
private companies the Post Office transmits upwards
of three times as many. messages and 220,000,000
words of news—which latter business under their
control the companies described only as "trifling."
Coining next to the cost of the account branch,
Lord John Manners says the companies needed
sixty-nine people, at £llB a-head, to check the ac-
counts of 6,500.000 messages, whilst the Govern-
ment employ 292 persons at £lO3 a head to check
twenty million messages, besides the press news,
which under the old system figured as trifling. The
Postmaster-General quotes figures, which, however,
he Bays, as the results of investigation made by his
own officers, and not of an independent accountant,
whose services were denied him, may not command,
however much they may deserve, universal confidence.
They dentorstrate that instead .of the proportion of
working expenses to capital being 96 2-3 per
cent., they were for last year 85.22, "some-
thing more . nearly approaching their ideal of 75
per cent." Regarding the deficit of £268,524 which
the committee made out occurred in the balance
sheets of the department,
_Lord John Manv
ners submits 'a statement of accounts which reduces
this sum to £137,434—a deficiency mainly "due to the
exorbitant price paid for many of the telegraph under-
takings." After showing that the non-paying offices
complained of by the committee are diminishing
rapidly, and adducing figures to show that the work-
ing expenses of the service have not increased-in i pro-
portion to the inorease, of meaeages, his lordship goes
on to argue that airy lack of financial success such as
has been alleged is no reason for raising the tariff
after the short experience acquired by the
_depart-
ment. He Pays he declines to advocate " any'sweep-
ing change as to press messages," but admits there
might be some re-adjustment of the charge for
trAnsmitting by telegraph' copies of the same mes-
sages to different addresses. .The charge is only now
twopence a copy wherever it may be sent, and when
hand-delivered the rate may-be maintained. But when
the same message is separately telegraphed to different
addresses his lordship thinks full press rates should be
charged, and the twopenny rate abolished, which would
result in an increase of revenue of probably £30,000.
He also suggests that a fee of 6d. should be charged on
messages between eight p.m. and eight a.m., and on
Sundays, which might be expectecnobringin in increase
of £12,000 a year; and he thiiakra-feeof d. mighebe
charged on messages handed in at railway stations act-
ing as agencies of the Post Office—a change which
would perhaps augment his receipts by &similar amount
(212,000). Lord John Manners would also, he says,
approve of buying up and abolishing the privilege
accorded to railway companies of sending free tele-
grams in connection with their business. If this were
done, he calculates the department would be about
£4.500 the richer. In addition to these alterations for
which, of course, he must get Parliamentary sanction,
the Postmaster-General would propose that a fee of
twopence should be charged where receipts for telegrams
were depired—for which change, of course, all that is
neededKui the approval of the -Treasury. From this
source alone an increase of income equivalent to £5OO
might, he thinks, be expected. Altogether, if his sug-
gested changes were carried out, he estimates that
£59,000 would be added to the receipts of the telegraph
department. Lord John Manners, however, does not
deny nobody has accused the telegraph department of
serving the public badly. On all hands, it is admitted
it has given us a wider, cheaper, and more expeditious
system of telegraphy. That the increase in the num-
ber of messages sent, however, has not been accompanied
by a completely satisfactory financial result, his lord-
ship's report frankly confesses. "There are, however,"
he says, " signs of improvement; the service is yet but
in its infancy ; the business of the department is
steadily increasing, and the necessity for economical
management will be steadily kept in view.

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