§ Order of the Day for the Second Heading, read.
§ THE MARQUESS OF LANSDOWNE, in moving that the Bill be now read the second time, said, their Lordships would remember that an Act was passed last year enabling the Postmaster General to purchase the interests and property of the various telegraph companies of the United Kingdom, with a view to secure cheaper and extended telegraphic communication. Negotiations were entered into with those companies, and their machinery and accounts were carefully examined, the result being an agreement that twenty years' purchase should be paid. The companies, in the first instance, claimed in the aggregate the sum of £7,000,000 as the value of their property, but this was ultimately 1136 reduced to £5,220,000. The railway companies possessing lines had also to be arranged with; and this, and further expenses that had been incurred owing to the Government having taken upon itself the management of the telegraphs, and making them of the utmost utility to the public, raised the sum to £6,730,000, or, in round numbers, £7,000,000. If this sum were raised by loan at 3½ per cent, the annual interest would be £236,000. Now, according to the most careful calculations, the revenue likely to be derived was £673,828. In addition, however, to the interest, there would be various outgoings for salaries, the maintenance of the lines and instruments, way-leaves, and incidental expenses, the probable amount of which was £359,000. This would leave a surplus or profit of £77,000, which, if the capital were obtained at 3¼ per cent, would be raised to £94,000. They might reasonably expect, moreover, that this bargain, which he regarded as a good one at present, would become still better hereafter. It must be remembered that the business of the companies had for many years been steadily increasing, and it might be expected that the increased facilities and superior management of the new system would bring about a still further increase. Among those facilities might be mentioned the wires into every post-office where there was a money order office, the receipt of telegrams in all receiving houses and boxes, the payment by postage stamps, that they might be deposited for transmission in letter-boxes, and a uniform rate of 1s. This last, he thought, would more than counterbalance the abolition of 6d. messages in a few of the large towns, for the number of these bore a small proportion to the total number of messages. It was hoped, moreover, that before long the uniform rate might be reduced to 6d.; but it was thought best not to attempt too much in the first instance. Exception had been taken to the monopoly clause in some quarters; but it must be borne in mind that the price to be paid to the companies was a monopoly price; hence it was only fair that the Government should be protected against the contingency of being undersold and exposed to ruinous loss, while there was no fear that the Government would not be ready, at all times to adopt 1137 manifest improvements, and give the utmost accommodation to the public.
§ Motion agreed to.
§ Bill read 2a accordingly, and committed to a Committee of the Whole House on Thursday next.