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Extension of Half-rate Period for Toll Calls. Prior to tie Ist October, tie periods during wiici ialf-rates for toll calls applied were 8 p.m. to midnigit and 6 a.m. to 8 a.m. (a slightly lower rate being applicable between midnight and 6 a.m.). Investigation disclosed that tiere was considerable congestion of traffic during tie first iour of tie ialf-rate period (8 p.m. to 9 p.m.). Prom tie Ist October, therefore, the commencing-time for halfrate calls was altered to 6 p.m. on week-days and 5 p.m. on Sundays and holidays. By the extension of the period it is hoped to relieve the congestion by diverting to tie 6 p.m. to 8 p.m. period a portion of tie abnormal traffic load previously experienced between 8 p.m. and 9 p.m., and also to encourage, and to provide for the expeditious handling of, a greater volume of social and domestic traffic between 6 p.m. and 9 p.m. Half-rates on Sundays and Holidays. Two months later a further extension of tie half-rate period was introduced. Traffic analyses showed that, on account of the absence of business calls, the number of calls on Sundays and holidays was only about one-fifth of that on week-days, and that a great deal of additional traffic could be handled on those days without additional cost. It was decided, therefore, with a view to increasing traffic, to charge half toll rates all day on Sundays and holidays except when the new " quarter " rates applied. The results obtained in the siort period since tie extensions of tie ialf-rate iours were inaugurated siow tiat tie proposals were sound in principle. Already tiere are indications that the evening rush of traffic is being spread as desired, and that the volume of traffic is increasing. Introduction of Quarter-rates with certain Maximum Charges. In conjunction with the decision to apply half-rates to toll calls made at all hours on Sundays and iolidays, consideration was given to tie question of cliarges for calls during tie slackest hours of the night. Prior to the Ist December the charges for calls between midnight and 6 a.m. were the same as those during the half-rate period, except that for the initial rate a six-minute instead of a threeminute conversation was allowed. For the reason that in some cases this resulted in a slight anomaly in ciarges—tie ciarge for a call of twelve minutes' duration, for example, being more tian tiat for two separate calls of six minutes' duration eaci—and because traffic in the early hours of the morning is at its lowest, it was decided to reduce the charges between 11 p.m. and 6 a.m. to one-fourth of the ordinary rates, with a minimum of 4d. and maxima as under Not exceeding Each Additional Three Minutes. Minute, s. d. s. d. For a call within either Island .. .. .. ..10 04 For an inter-Island call .. .. .. .. ..16 06 Reduction of " No-reply " Fee. Hitierto a " no-reply " fee was ciarged in respect of a toll call wien tie completion of tie call was not effected in certain circumstances, in all cases tie fee being one-tiird of tie ciarge applicable to a three-minute call, with a minimum of Id. While the principle of charging a " no-reply " fee in certain cases was considered to be sound, it was thought desirable that the amount of tie fee and tie conditions governing its application siould be reviewed. Accordingly, it was decided to reduce the fee to one-quarter of the initial rate, with a minimum of 3d. and a maximum of Is. 6d., and, in addition, to extend the service given for the fee and to modify tie conditions governing its application. By tie adoption of these proposals it is expected that a great many calls will be completed which, under the former system, would have been allowed to lapse. Furthermore, telephone-users will be able to appreciate more readily that the charge is for services rendered in attempting to establish a toll call that proves ineffective tirougi circumstances for wiich the Department is in no way responsible. Reduction of Telephone Cable Fee. Previously a special cable fee of 3d. was added to the cost of all inter-Island toll calls handled either in the full-rate or in a reduced-rate period. To simplify the calculation of tie eiarges, and as a furtier concession to telepione-users, tie fee was reduced by 50 per cent, and 75 per cent, during tie ialf- and quarter-rate periods respectively. Reduction of Charge for Local Calls. A call from tie public telepione at a toll station to a local telepione-exciange subscriber is treated as a toll call. In the past all such calls were charged at tie minimum toll rate of 4d. Wiile it was considered reasonable tiat tiis ciarge siould apply at an office at wiici a public-call office is provided for local calls, it was recognized that a concession siould be made in respect of a call from an office at wiici public-call office facilities are not available. It lias therefore been arranged thatlocal calls at offices at which public-call offices are not installed are to be ciarged for at tie nominal rate of Id. for eaci tiree minutes. " Person-to-person Toll Service. Up to last year tie only form of toll service available in the Doninion was " station-to-station " service, in which the calling subscriber is placed in communication with some one at tie premises of tie person with whom he desires to speak, and the chargeable time commences immediately communication is established.

4—F. 1.

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