The Chief Causes of the Failure of Municipal Telephones in Glasgow

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The Chief Causes of the Failure of Municipal Telephones in Glasgow
Victor Maximilian Berthold
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But it served only to accentuate the troubles in which they found themselves and hastened the final step, — the abandon- ment of an unprofitable and losing business. In other words, the managers of the Post-office soon perceived that municipal telephone service was neither a financial nor technical success, and that a triple service would impede instead of assisting the development of telephony in Great Britain.
1 In Quarterly Journal of Economics for August, 1007, p. 645.
273050 Mr. Holcombe's
... conclusion, that the general abandon- ment of the municipal telephone undertakings cannot be adequately explained by any technical or financial weakness for which the managers were responsible, is a new message to those who have watched and followed the rise and fall of the British municipal telephone service. The inception of that service was not as enthusiastic as might have been inferred from the charge of pronounced and general dis- satisfaction with the existing system; for after the pasage of the Act of 1899, when any municipality could have applied to the Post-office for a telephone, only 59 out of the possible total number (1,334) wrote to the Post-office for information, 41 after searching investigation abandoned the scheme, 13 took out a license, and only 6 of these actually proceeded to establish a telephone exchange.

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