

8 Telephone Systems of the Continent of Europe 



the Mutual at 5/. as soon as the opportunity was afforded them. 

 The National had found in Dundee, much to its surprise, that a 

 5/. rate was not only sufficient to cover expenses, but to leave a 

 profit into the bargain, even after debiting Dundee with its due 

 proportion of directors' fees, Post Office royalty of 10 per cent, 

 on the gross receipts, and London office general expenses, pro- 

 vided that the patent royalty of 2/. per annum per subscriber were 

 set aside. The author believes that the United Telephone Com- 

 pany, the owners of the patents, eventually agreed to abrogate the 

 Dundee royalty, so that the National really made no loss during 

 the competitive period. But there are no patent royalties now, 

 and the Dundee Town Council or a local company would not 

 have any London office burden to bear, so that the author is quite 

 sure that an exchange with metallic circuits, underground wires in 

 the centre of the town to each block of buildings, and all modern 

 improvements, could readily be made remunerative at 5/. per 

 annum, Post Office royalty included. The experience gained since 

 the days of the Dundee and District Company renders it possible 

 to provide an improved system at still lower rates than it did. 



Other competitors had arisen and were still to arise in different 

 parts of the kingdom. Messrs. D. and G. Graham in Glasgow at 

 i2/. ; Charles Moseley in Manchester at 8/. ; Tasker & Co. 

 in Sheffield at y/. ; the Globe Telephone Company in London 

 at io/. ; and Mr. Sharpies in Preston at 6/. ; all of which 

 were, after shorter or longer combats, ultimately bought out 

 some at extravagant premiums because they, having no need 

 to die, steadfastly declined to do so. In not one instance did the 

 National run a competitor to a standstill, although in the cases of 

 Sharpies and Tasker the contest went on for years. Their rates 

 were sufficient to gain a livelihood, and the National knew it. 



But the most recent home proof of the sufficiency of low rates 

 is that afforded by the Mutual Telephone Company, Limited, of 

 Manchester, which started with a 5/. rate for its shareholders and 

 61. for non-shareholders. The Mutual Company's case is different 

 from all the others, inasmuch as its exchange was constructed 

 entirely on the metallic circuit principle and comprised all the latest 

 improvements. The Mutual exchange was opened on February 28, 

 1891, but owing to the determination of the directors to charge 



