The Hokitika Guardian WEDNESDAY, MARCH 14, 1923. THE TELEPHONE.

Hokitika Guardian, 14 March 1923, Page 2

The Hokitika Guardian WEDNESDAY, MARCH 14, 1923. THE TELEPHONE.

Aiiout the time the Westland t liamber of Commerce was discussing its objections to the telephone charges last week, a special committee of the Canterbury Progress League was engaged in analysing the book-keeping methods of the telephone service to realise whether there was any real justification for the proposed increase. The Committee for reasons very definitely given, has come to the conclusion that there is not any justification for the rise, and no doubt the Minister and the Department, as a result of the publicity given, will be called upon to review the report, and before any increase is made, oiler some sound reasoning for the advance in rates. The C.mteibury committee went into the matter largely from the point of view of tin* business man, and the trend of the report ueni to show that it was proposed to place an undue burden on that class of subscriber. It is manifest, however, that the business man who is using the telephone lor profit rather than for convenience, should contribute at a higher rate than the residential subscriber. Just how the classification should be determined is a matter of opinion, and it will be for the Minister in charge t" decide what should l>o a fair division. The point about the telephone service is that it should give to the subscribers the best service possible at the cheapest rates possible l , consistent with paving its way. The Canterbury committee seems to have demonstrated that the service is paying its way already, and that there is no occasion to rise the rates. The Department consists of four branches, postal, telegraph, telephone and wireless. These are interdependent one upon the other, and the argument at Christchurch was that the position would he met if the whole system paid its way. That, is a deficit in one branch could lie made up by the surplus from another. In analysing the telephone accounts it was pointed out there wore several discrepancies in departmental methods by a double charge for instance, for renewals and for depreciation ; so also there was a defect pointed to that telephone tolls went to the credit of the telegraph, and the telephone revenue was short accordingly. It is well to keep in mind the desire to see the telephone service giving the greatest service, and that to our miml has to he considered in respect to the various exchanges. There is the need for the classification of the exchanges as to the number of .subscribers working from a centre. In cities where there are thousands of subscribers, those connected must derive greater value for their subscriptions, compared with small towns where there are not a quarter of a thousand subscribers. The use of the telephone is very much restricted, and the payment should l>e based on some sliding scale to meet the difference of utility. This was the view brought out at tho Westland Chamber of Commerce last wool; when considering the rapid rise proposed under the now tariff. D would appear that if the higher rates are imposed the effect wll he to reduce the number of subscribers and to further minimise the value of the service with the reduced connections. Tliat aspect is more important than the immediate revenue concerned, for if the value of the service declines the loss of utility will depreciate revenue, too, despite the higher tariff. The matter calls for the closest consideration. on the part of the Department. We join with a contemporary who lias put the matter as follows;—“We hope that the proposal to put up telephone charges will he either dropped or substantially modified for we fear that if the Department’s ideas are adopted the whole of the public will suffer through the penalties placed upon quick communications while the revenue of the Department will fall through the loss of customers.”