The post office and its story an interesting account of the activities of a great government department

Thus began the first direct connection of the Post Office with the working of the telephone. But there is always something unsatisfactory and not in accord with the fitness of things when the State enters into competition with any of its members in business undertakings, and this attempt was certainly not advantageous to anybody. In 1901 the Post Office came to an agreement with the company in regard to the London business. The company agreed to free intercommunication between its subscribers and those of the Post Office, and undertook to charge rates identical with those fixed by the Department. The long struggle of the company to obtain permission to lay underground wires was settled by the Post Office agreeing to provide these wires for the company at a rental. Finally the Post Office undertook to buy out the National Telephone Company in the year 1911. Briefly stated, this is the story of how the Post Office came to possess, as was already the case with the telegraph, the working of the telephone. Even now there are persons who are of opinion that although there should be one single authority to work the telephone, this should not be the Post Office. Let me submit a few considerations why I think the right policy has been adopted. The telephone has undoubtedly become a formidable competitor to the telegraph, and it is desirable, with a view to the economical adjustment of facilities, that both systems should be under one direction. In this case the one service becomes the natural complement to the other, and one or the other can be developed or reduced as circumstances demand. Moreover, there are hundreds of miles of underground pipes all over the country laid at an expense of a million and a half, and a single cable may contain from 100 to 200 wires used indiscriminately for telegraph and telephone services. Many thousands of miles of route are furnished with poles used for both services.