TELEPHONE CHARGES

Dominion, Volume 9, Issue 2804, 23 June 1916, Page 6

TELEPHONE CHARGES

NO CHANCE OF REDUCTION. An important statement regarding telephono services was made by the Post-master-General in the House last night. The Post and Telegraph estimates were under consideration, and 'members ■ all over the House were asking tor telephone extension, reduced charges, or ucuor concessions.

"I want first of all to tell the committee," said Sir Joseph Ward, "that the returns from the expenditure on telephone lines, after providing for the cost or construction ot the Hues laid down, is 1.40 per cent., less than one and a fisui per cent. We expect from the Railway Department to have a return of 4 per cent, or over. We expect from all ordinary commercial Departments of the Government to have at least' a sufficiency to ensure- that we get a reasonable return for the public money expended. In my opinion the extensive nature of the service provided for tho people is such that wo should expect a return on the'initial cost of 3J per cent. Upon this basis tho loss made upon tho telephone service is nearly 3 per cent. I make this statement to let honourable members know that, while they aro naturally anxious to have thoso telephone facilities extended, it is very little use asking anybody in my position, whoever he may" be, to lower charges/ Anything in the direction of lowering the revenue I should feel it my incumbent duty to review in every instance. It is obvious to mo that when the net return is 1J per cent., no extensions can be granted unless a reasonable return on the money expended is assured, except it be those extensions to settlers in the back-blocks. All the others have to bo looked at from the point of viow of how much they are going to bring in to the coffers of the Treasury. If we don't do that, the timo will come when there will be not only no reduction, but.a very large increase. I am as certain of that as I am alive."'