CABLE MERGER’S RATES

Sun (Auckland), Volume IV, Issue 1014, 3 July 1930, Page 12

CABLE MERGER’S RATES

LOSS INVOLVED BY CUT IN COMMUNICATION FEES PROVISION FOR EXCESSES Reed. 11.15 a.m. LONDON, Wed. At the annual meeting of Imperial and International Communications, Limited, the report and accounts for 21 months were adopted and a dividend of 52 per cent, was declared for that period, equal to £3 5s 8d per cent, per annum. The total revenue amounted to £11,381,261 and the expenditure to £9,358,106, leaving a profit of £2,023,155. The directors estimate that the probable profit for the year 1930 will not exceed £600,000. The traffic is falling heavily owing to the world depression. Accordingly steps are being taken to introduce less expensive methods of operation on certain circuits. CUTTING THE LOSES The report states that reductions in the rates on ail classes of traffic are already made. These are estimated to involve an annual loss of £BO,OOO. The report adds: “Pi*ovisions made in the report of the Imperial Wireless Conference included the fixing of a standard net revenue of £1,850,000, and any excess beyond that was to be allocated as -to 50 per cent, to reductions in rates.” The present position is a complete reversal of that contemplated by the conference, as the reductions in rates have been and are being put into force in advance of the receipt by the company of those surplus profits. Therefore the company asked the advisory committee to allow the company to recover the later loss in revenue from these reductions from the aforementioned 50 per cent, excess, when such excess is available.