Don’t have a cite, but I’ve heard that too. IIRC, it worked on some of the same principles as telegraphs did. Don’t know how the send side worked, but it sent a signal down a telegraph wire. At the receive side, a pendulum or disk moved underneath a pen. When electricity hit (the click of the telegraph) it made a mark. If things were synchronized correctly, you had a rudimentary fax machine. I know I’ve butchered the details, but I think that is the gist of it.
However, I did read a few years ago when some prominent British spy died, his bio mentioned that in the 1920s he had received a patent on some procedure to transmit photos by wire.
Don’t recall the chap’s name, but I’m sure it wasn’t Kim Philby.
The BBC show The Secret Life of Machines covered this in great detail. One of the best episodes of the whole series. Can’t really explain it, you had to see it.