Actually, a lot of the telegraph traffic was encrypted. It was mainly to cut character usage and speed up transmissions but I also suspect that it was for security. Check out a book titled "The Victorian Internet".
Well they would be bloody fools if they didn't encrypt the telegraph traffic. That of course doesn't rule out tapping and decrypting efforts. I imagine the cyphers were a lot cruder than they would be today, of course the ability to decipher would be just as limited but I'm willing to bet entirely doable.
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Most likely. I have no doubt that people tapped telegraph lines. It's probably your original form of wire tapping.
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--arthur
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