§ Order of the Day for the Second Reading read.
§ *THE EARL OF GRANARDThe Bill I have the honour to ask your Lordships to read a second time is for the purpose 715 of providing a sum of six millions for the construction of telephone trunk lines and London exchanges. The Bill is on the same lines as that passed in 1902, when a vote of one million was provided, and of that in 1904, when there was a sum of three millions provided, and I hope that the sum now voted will carry us on till 1911, when the Post Office acquire the whole of the National Telephone Company. It may be of interest to your Lordships if I state in a few words what was the actual position when in 1892 we took over the telephone trunk service of the National Telephone Company. In those days there were 29,000 miles of trunk wire. This year we own 145,000 miles of trunk wire and if we take into consideration London and the provinces, altogether there are something like 380,000 miles of telephone wires. Last year the telephone account was a very satisfactory one, because after paying 3 percent. on capital and writing off a certain sum of money for depreciation, etc., we had a total profit of over £37,000. As the noble Marquess opposite is well aware, the telegraph service is not a remunerative one, but as soon as we take over the telephones in 1911, we shall, as at present, run these telephones on a purely business footing. We are not giving facilities unless we can get a certain adequate return on the outlay. I might also mention that in certain parts of the country where we have developed a telephone system in fruit districts, and although we have done so at some slighter percentage of profits than we thought at first was justified, it has paid very well. Under these circumstances I venture to trust that your Lordships will assent to the Second Reading of this Bill.
§ On Question, Bill read 2a. Committee negatived; and Bill to be read 3a To-morrow.