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(1914) [MARC] Author: Joseph Guinchard
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STATE TELEPHONES.

(353

reduced to, or below, 5 seconds, and at the newer stations, such as those at
Malmö and Hälsingborg, statistics show an average wait of 2’5 seconds, and
even less, for such reply.

Finally, some figures may be given respecting the economic results of
the administration of the Swedish telephone service. The means which
are required for the continued development of the State telephone system,
were, before the year 1911, placed at the disposal of the Board of the
Telegraph Service chiefly in the form of loans, for which the Telegraph
has paid interest, and which had gradually to be amortised by the Service,
and this, as a rule, in a very chort period (12 to 20 years). From and
including the year 1911, however, public grants have been made for the
purpose in question, these amounting, for each of the years 1912, 1913,
and 1914 to 4 million kr. (the grants given in 1913 and 1914 were, to a
certain, small amount, also intended for telegraph purposes); for
1915, the grant amounts to 4 650 000 kr., inclusive of 50 000 kr. for
radio-telegraphic (wireless) purposes. The capital, consisting of such
supplies together with the Telegraph Service’s own profits, which had
been sunk in the State telephone network had, at the close of 1913,
amounted to 65 994 450 kr., 42 971 306 kr. of which was sunk in the
local networks, and 23 023 144 kr. in the long distance network. If
respect be paid not only to the plant investment, but also to the whole of
the capital disposable for the telephone system, this latter amount during
1913 came to 67 335 639 kr., of which 43 844 601 kr. were for the local
net, and 23 491038 kr. for the long-distance network. Now, as the
surplus obtained from the business, i. e., the difference between the receipts
and the expenditure, amounted, for the local network to 2 576 782 kr. and
for the long-distance net to 2 576 782 kr., it will be seen that the local
telephone network of the Telegraph Service yielded, during the year, a
return of 6 %, and the long distance net one of 14 %, on the capital available
for the respective branches of the business. The surplus yielded by the
entire telephone system amounted to 8-8 % the capital (in 1912 to
9-6 %), a result which, if we take into consideration the low terms of
subscription and charges for conversations, and the very extensive right
to free calls possessed by subscribers at many places, must be considered
as very satisfactory indeed.

In the figures given above for capital investment in the State
telegraph and telephone systems no capital invested in land and buildings
is included. For the purpose of buying sites and constructing buildings,
means have been supplied in various ways, for the last few years in the
form of grants, amounting for 1913 to 400 000, and for 1914 to 500 000
kr. At the end of 1913, the prime cost value of assets of this kind,
belonging to the Telegraph Service, amounted to 9 696 940 kr. The
net income of this branch of the business, however, only amounted to
155 896 kr., or 1-6 % of the average capital, the reason for these low
figures being that a very large part of the investment during 1913 was

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