The principle on which the Local Government Board sanctions municipal loans for electric lighting undertakings is that the period of the loan shall not exceed the life of the works, and that future ratepayers shall not be unduly burdened. The periods of the loans vary from ten years for accumulators and arc lamps to sixty years for lands. Within the county of London the loans raised by the metropolitan borough councils for electrical purposes are sanctioned by the London County Council, and that body allows a minimum period of twenty years for repayment. Up to 1904-1905, 245 loans had been granted by the council amounting in the aggregate to £4,045,067.
In 1901 the Institution of Civil Engineers appointed a committee to consider the advisability of standardizing various kinds of iron and steel sections. Subsequently the original reference was enlarged, and in 1902 the Standardization. Institution of Electrical Engineers was invited to co-operate. The treasury, as well as railway companies, manufacturers and others, have made grants to defray the expenses. The committee on electrical plant has ten sub-committees. In August 1904 an interim report was issued by the sub-committee on generators, motors and transformers, dealing with pressures and frequencies, rating of generators and motors, direct-current generators, alternating-current generators, and motors.
In 1903 the specification for British standard tramway rails and fish-plates was issued, and in 1904 a standard specification for tubular tramway poles was issued. A sectional committee was formed in 1904 to correspond with foreign countries with regard to the formation of an electrical international commission to study the question of an international standardization of nomenclature and ratings of electrical apparatus and machinery.
The electrical manufacturing branch, which is closely related to the electricity supply and other operating departments of the electrical industry, only dates from about 1880. Since that time it has undergone many vicissitudes. It The electrical industry. began with the manufacture of small arc lighting equipments for railway stations, streets and public buildings. When the incandescent lamp became a commercial article, ship-lighting sets and installations for theatres and mansions constituted the major portion of the electrical work. The next step was the organization of house-to-house distribution of electricity from small “central stations,” ultimately leading to the comprehensive public supply in large towns, which involved the manufacture of generating and distributing plants of considerable magnitude and complexity. With the advent of electric traction about 1896, special machinery had to be produced, and at a later stage the manufacturer had to solve problems in connexion with bulk supply in large areas and for power purposes. Each of these main departments involved changes in ancillary manufactures, such as cables, switches, transformers, meters, &c., so that the electrical manufacturing industry has been in a constant state of transition. At the beginning of the period referred to Germany and America were following the lead of England in theoretical developments, and for some time Germany obtained electrical machinery from England. Now scarcely any electrical apparatus is exported to Germany, and considerable imports are received by England from that country and America. The explanation is to be found mainly in the fact that the adverse legislation of 1882 had the effect of restricting enterprise, and while British manufacturers were compulsorily inert during periods of impeded growth of the two most important branches of the industry—electric lighting and traction—manufacturers in America and on the continent of Europe, who were in many ways encouraged by their governments, devoted their resources to the establishment of factories and electrical undertakings, and to the development of efficient selling organizations at home and abroad. When after the amendment of the adverse legislation in 1888 a demand for electrical machinery arose in England, the foreign manufacturers were fully organized for trade on a large scale, and were further aided by fiscal conditions to undersell English manufacturers, not only in neutral markets, but even in their own country. Successful manufacture on a large scale is possible only by standardizing the methods of production. English manufacturers were not able to standardize because they had not the necessary output. There had been no repetitive demand, and there was no production on a large scale. Foreign manufacturers, however, were able to standardize by reason of the large uniform demand which existed for their manufactures. Statistics are available showing the extent to which the growth of the electrical manufacturing industry in Great Britain was delayed. Nearly twenty years after the inception of the industry there were only twenty-four manufacturing companies registered in the United Kingdom, having an aggregate subscribed capital of under £7,000,000. But in 1907 there were 292 companies with over £42,000,000 subscribed capital. The cable and incandescent lamp sections show that when the British manufacturers are allowed opportunities they are not slow to take advantage of them. The cable-making branch was established under the more encouraging conditions of the telegraph industry, and the lamp industry was in the early days protected by patents. Other departments not susceptible to foreign competition on account of freightage, such as the manufacture of storage batteries and rolling stock, are also fairly prosperous. In departments where special circumstances offer a prospect of success, the technical skill, commercial enterprise and general efficiency of British manufacturers manifest themselves by positive progress and not merely by the continuance of a struggle against adverse conditions. The normal posture of the British manufacturer of electrical machinery has been described as one of desperate defence of his home trade; that of the foreign manufacturer as one of vigorous attack upon British and other open markets. In considering the position of English manufacturers as compared with their foreign rivals, some regard should be had to the patent laws. One condition of a grant of a patent in most foreign countries is that the patent shall be worked in those countries within a specified period. But a foreign inventor was until 1907 able to secure patent protection in Great Britain without any obligation to manufacture there. The effect of this was to encourage the manufacture of patented apparatus in foreign countries, and to stimulate their exportation to Great Britain in competition with British products. With regard to the electrochemical industry the progress which has been achieved by other nations, notably Germany, is very marvellous by comparison with the advance made by England, but to state the reasons why this industry has had such extraordinary development in Germany, notwithstanding that many of the fundamental inventions were made in England, would require a statement of the marked differences in the methods by which industrial progress is promoted in the two countries.
There has been very little solidarity among those interested in the commercial development of electricity, and except for the discussion of scientific subjects there has been very little organization with the object of protecting and promoting common interests.
(E. Ga.)
[1] British Patent Specification, No. 5306 of 1878, and No. 602 of 1880.
[2] Ibid. No. 3988 of 1878.