N.Z. RADIO SERVICE

Hokitika Guardian, 31 October 1932, Page 7

N.Z. RADIO SERVICE

£58,000 FOR COMPANY. WELLINGTON, October 28. An official statement concerning the financial and other arrangements made between the Postmaster-General and she Radio Broadcasting Board, was tabled in the Houso of Representatives this morning. The statement sets out that the price, fixed by arbitration, to he paid l»y the Crown i- . me iiadio Broadcasting Company was £58,646, 6s 2d. The share of the costs of arbitration paid by the Post” and Telegraph Department, and the expenses incurred by the Department jn valuing the assets, together wt+h. adjustments, amounted to £1193 114; Payment of the w-ole amount was made out of the Post Office Account and was treated as a loan to the Broadcasting Board. The deed between the Minister and the Board provides that, in consideration of the New Zealand Government vesting in the Board all assets and property acquired from ithe Radio Broadcasting Company, the Board covenant to; charge all its property to the extent of the total amount paid. This charge is the first mortgage over all Lilts property. Provision is also made for the repayment of the princi. pal sum within ten years, in quarterly instalments of £1250. .(£3789 in repay ment of the principal was paid in September last). The interest, payable quarterly, is fixed at 6 per cent., reducible to 5 per cent if paid within 20 days of the due date. Under the agreement with the Board, it is provided that payment be made to the Board of five-sixths of the license fees received from listeners.