In 1859 Wheatstone was appointed by the Board of Trade to report on the subject of the Atlantic cables, and in 1864 he was one of the experts who advised the Atlantic Telegraph Company on the construction of the successful lines of 1865 and 1866. On February 4, 1867, he published the principle of reaction in the dynamo-electric machine by a paper to the Royal Society; but Mr. C. W. Siemens had communicated the identical discovery ten days earlier, and both papers were read on the same day. It afterwards appeared that Herr Werner Siemens, Mr. Samuel Alfred Varley, and Professor Wheatstone had independently arrived at the principle within a few months of each other. Varley patented it on December 24, 1866; Siemens called attention to it on January 17, 1867; and Wheatstone exhibited it in action at the Royal Society on the above date. But it will be seen from our life of William Siemens that Sören Hjorth, a Danish inventor, had forestalled them.
In 1870 the electric telegraph lines of the United Kingdom, worked by different companies, were transferred to the Post Office, and placed under Government control.
Wheatstone was knighted in 1868, after his completion of the automatic telegraph. He had previously been made a Chevalier of the Legion of Honour. Some thirty-four distinctions and diplomas of home or foreign societies bore witness to his scientific reputation. Since 1836 he had been a Fellow of the Royal Society, and in 1873 he was appointed a Foreign Associate of the French Academy of Sciences. The same year he was awarded the Ampère Medal by the French Society for the Encouragement of National Industry. In 1875 he was created an honorary member of the Institution of Civil Engineers. He was a D.C.L. of Oxford and an LL.D. of Cambridge.