34 Telephone Systems of the Continent of Europe 



extensive, for the law is conceived in a most liberal spirit. The 

 facilities placed at the disposal of subscribers and of the general 

 public are not only numerous, but the charges are extremely 

 moderate, and that in spite of the adoption of the principle first 

 introduced, the author believes, by Mr. H. T. Cedergren of 

 Stockholm, and subsequently adopted by the French Government 

 of causing the subscribers to pay for the installation of their lines 

 and instruments by a * contribution ' as it is called in Austria, 

 or ' admission fee ' as it is termed in Sweden. This plan obviates, 

 of course, the necessity of finding a heavy capital ; each unit 

 brings its initial cost with it, and the annual subscription has to 

 cover only maintenance and working expenses, and not interest 

 on capital. The ' contribution ' in Austria is 4/. 3^. \d. for lines 

 not exceeding 500 meters in length, and i6s. 3d. for each addi- 

 tional 100 meters, making the initial cost to the subscriber of a 

 i -kilometer line 8/. 6s. &/., payment of which, in accordance with 

 the law, may be extended over five years if desired. But the 

 annual subscription is only 50 florins, or 4/. 3^. 4^., so that the 

 contribution ,to first cost is a bagatelle to a subscriber who comes 

 on, as most of course do, for the term of his business life. By 

 spreading payment over five years, a line not exceeding 500 



meters in length costs only 4/. 35. ^d. + - = 5/. per 



annum for the first five years, and 4/. 3^. 4^. per annum thereafter. 

 Similarly, a i -kilometer line costs 4/. 35. ^d. + = 



5/. i6s. &d. for the first five years, and 4/. 35. 4^. thereafter. One 

 good effect of the contribution system is that the line, whatever 

 its length, being paid for, the State can afford to make the annual 

 subscription uniform for all distances. Actually, in Austria the 

 unit subscription of 4/. 3^. ^d. covers all distances up to fifteen 

 kilometers. These facts constitute a lesson which British muni- 

 cipal authorities would do well to study, for it teaches how a 

 telephone exchange may be started without capital and supported 

 on very slender subscriptions. The trunk tariff, while not so 

 liberal as that of Germany, is still most commendably moderate, 

 as under it is. &d. franks a three-minute conversation from one 

 end of Austria to the other. 



