Sweden 335 



distance ambition was thus baulked ; but the inhabitants of the 

 yo-kilometer radius have no reason to lament the fact, for his 

 energies, being concentrated within that circle, have led to its 

 becoming, without any exception, the best-telephoned bit of 

 country in the world. 



But the jealousy of the telegraph department had now been 

 thoroughly aroused. It was no longer content to erect trunks for 

 the use of local companies and co-operative societies. It was 

 felt that by doing so and nothing more it was taking most of the 

 expense and risk and least of the profit, profit moreover gained 

 {as was then imagined) by competing with, and murdering, its 

 own telegraph revenue. So the State determined to go in for 

 the better paying part the local exchanges also ; and began by 

 purchasing the Gothenburg and other provincial exchanges of the 

 International Bell Telephone Company. In Stockholm there 

 was already existing at the central telegraph office a small tele- 

 phone exchange for the use of the Government departments, and 

 this was made the nucleus of a public system. The Swedish 

 State telegraph department having definitely entered the lists, 

 determined to do its work well. It made metallic circuits an 

 inexorable rule, and underground work an end to be aimed at 

 wherever possible. The experience of the General Company had 

 demonstrated the feasibility and potency in developing custom of 

 low rates, and the State started in Stockholm with a first payment 

 of 2/. 155. yd. on connection, and an annual subscription there- 

 after of 4/. Ss. i id., or i/. 2s. 2d. below that of the General Com- 

 pany, which was to cover free communication not only in Stock- 

 holm, but within a radius of seventy kilometers around ! It was a 

 programme metallic circuits against single wires, underground 

 wires against overhead, direct connection with the long-distance 

 trunks, all combined with an appreciably lower rate and a free 

 7o-kilometer radius that deserved success and was calculated 

 to alarm the General Company. But Cedergren was used to 

 competition. He had at this period over 5,000 subscribers work- 

 ing in Stockholm alone, and his service was as good as is com- 

 patible with single wires. But that was not enough ; and the 

 State had scarcely got its exchange in operation before the 

 General Company began to convert its system to metallic circuit, 



