Australia were conducted in Sydney in January 1878, with three tests being carried out between La Perouse and Sydney. The Sydney Morning Herald of 14 January 1878 wrote: 'Our readers are probably aware that a discovery has been made in the art of telegraphy which when fully developed may lead to an entirely new and simple system of communication.' It wasn't until 1 November 1880, however, that what is claimed to be the first telephone service in NSW was established between the Exchange and the Government woolsheds at Darling Harbour. On 11 October 1881, the first telephone exchange was opened in Sydney and, following the establishment of the switchboard, the Electric Telegraph Department took over the telephone system and relocated it to the GPO. From this point onwards, the growth of telephone lines expanded rapidly and, by March 1883, the exchange had become important enough to warrant a twenty-four hour service. As with the telegraph, the telephone system soon began to extend into the country areas, with telephone exchanges appearing in NSW country towns from the late-1880s onwards. Again, the post office was responsible for the public telephone exchange, which further emphasised its place in the community as the provider of communications services. The construction of new post offices continued throughout the 1890s Depression years of the late-nineteenth century under the leadership of Walter Liberty Vernon, who held office from 1890 to 1911. However, while twenty-seven post offices were built between 1892 and 1895, funding to the Government Architect's Office was cut from 1893 to 1895, which caused Vernon to postpone a number of projects. Following Federation in 1901, the Commonwealth Government took over responsibility for post, telegraph and telephone offices. The Department of Home Affairs Works Division was made responsible for post office construction. In 1916, construction of post offices and telephone exchanges was transferred to the Department of Works and Railways, after which the Department of the Interior became responsible during World War II. On 22 December 1975, the Postmaster General's Department was abolished and replaced by the Post and Telecommunications Department, resulting in the creation of Telecom Australia (later Telstra) and Australia Post. In 1989, the Australian Postal Corporation Act established Australia Post as a self-funding entity, heralding a new direction in property management, including a move away from the larger more traditional buildings, towards smaller, shopfront-style post offices. With the advent of new digital technology requiring