In the House of Commons on Monday Mr. Herbert Samuel
explained the principles upon which the transfer of the tele- phones to the Post Office was to be effected. As to the amount to be paid for plant no agreement had been reached, and the matter would probably be referred to the Railway and Canal Commission. The first clause of the Telephone Transfer Bill, which is to be introduced this session, would authorize the Treasury to borrow the sum necessary to complete the purchase. Extensive developments of the whole service and especially of the trunk wire system would be essential in the near future. Ten years ago the total number of telephones in the country had been 200,000, while to-day it was 600,000. The number would soon need to be increased threefold or fourfold. For this there existed an unexpired borrowing power of two millions, and it was proposed to add powers to raise an addi- tional four millions. The whole system of rates would also have to be revised before long, as serious inequalities existed. Mr. Samuel declared that one of the principles of the service would be that it must pay its own way. We are glad that the Postmaster-General should feel so optimistic as to the future of the State telephones, but the history of the telegraphs hardly disposes us to agree with him.
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