110 LIFE OF SIR JOHN LUBBOCK ch. 



The objections to nationalizing the telephone are, 

 however, also very strong. 



The two reasons given for it are, first, the hope that 

 the Government will make a profit, and, secondly, that 

 the service will be better. 



As regards the first, I think few persons are aware 

 that the State has already lost over £7,000,000 by 

 working the telegraphs, and is losing more and more 

 every year. According to the figures for 1897, the last 

 year of which we have the complete return, the Post 

 Office incurred a loss of £600,000 by the telegraphs, 

 which it worked itself, and made a profit of £104,000 

 from the telephones, which it does not work. 



I am satisfied that if the Government takes over the 

 telephones the State will not only lose the profit it is now 

 making, but that the result will be even more disastrous 

 than that of the telegraphs. The late Lord Playfair 

 might well say that there never was a greater mistake 

 than making the telegraph a Government monopoly. 



Nor is the loss on the State telegraphs any exceptional 

 result. Other cases might be given. South Australia, 

 according to the last figures I have seen (Howell, Jour. 

 Statistical Soc, March 1899), had lost over her railways 

 up to June 1896, £1,774,000 and Victoria £7,759,000. 



The results as regards the progress of applied science 

 will, in my judgment, be even more disastrous. Those 

 who have hitherto devoted thought and time, energy 

 and capital, to apply the results of scientific discovery 

 to practical purposes are now told, that while, of course, 

 if their enterprise does not pay they must bear the loss, 

 on the other hand, if it succeeds Government will pass 

 an Act of Parliament to deprive them of any advantage. 



As regards the effect on scientific discovery, I may 

 quote the words of a distinguished electrician, Mr. 

 Varley : — 



"The introduction of protectionism in so important 

 an industry as telegraphy has given the postal executive 

 a grip hold of applied electricity and has enabled them 

 to crush practically out of existence pioneers in tele- 

 graphy and applied electricity. English telegraph 

 enterprise no longer exists, and America, which 20 years 

 ago was electrically in the rear of this country, is now 

 England's teacher. At the present time not only does 

 she take premier rank in dynamo-electric developments, 



