THE PRESS ASSOCIATION.

Auckland Star, Volume XXXI, Issue 198, 21 August 1900, Page 3

THE PRESS ASSOCIATION.

LETTER TO THE PREMIER.

(By Telegraph.—Press Association.)

WELLINGTON, Monday.

The directors of the Press Association have, during the past week, been in communication with the Premier on the subject of the ag-it.ut.iori now going on In Parliament respecting the entrance fees charged by the association. A deputation from the Board has also had an interview with Mr Seddon, at which the matter was fully discussed. At the Premier's request, the views of the directors were reduced to writing, In a letter, of which the following is a copy:— United Press ' Association (Limited), Wellington, August 20, WOO. To the Right . Hon. the Premier. Dear Sir,—! have ,-nuch pleasure in informing you that the 'directors of the association have had your communication before them, and have given It most careful consideration. They understand the points- at issue are practically confined to the two .questions of entrance fees and the placing of subBcribers on the same footing as shareholders. With- respect to entrance fees, ■while admitting that it is a Question on which there may naturally be some division of opinion, the directors feel that it is Impossible, in view of the circumBtances, to abandon them, as is practically suggested by a number of members of the House. The association was not established without great expenditure, the burden of which fell mostly on a .comparatively small number of newspapers. They had to pay heavily in the earlier days of its existence, in order to build up the services which the press of the colony now enjoys, and especially the cable services. In those days, cable charges were much higher than now, and the leading papers paid thousands of pounds to establish the service and keep it going. In addition the news collected in New Zealand by the large and expensive staffs of the chief newspapers is placed at the disposal of all subscsribers, and it would be manifestly unfair to allow anyone to come in now for nothing, or practically nothing, and enjoy the advantage of services so complete for which others have paid, heavily. Without an entrance fee, the -most ephemeral of publications could demand to be placed on the Game footing as the rest, take full advantage of the services afforded, and withdraw at will. To show how disadvantageously this would work, it may be mentioned that the association, In order to obtain a cable service, has to enter into a contract for a fixed term, usually three years, at a fixed price. Once having entered into that contract, it has made Itself liable for a total outlay of something like £15,000, and this expenditure has to be divided, as nearly as possible, among those who subscribe to the service. Should then one or more newspapers obtain the advantage of this service, who have no intention of fulfilling their agreement to the end of the term, it is manifest the gap in the income of the association must be made good by the remainder. And this, we venture to say, is what ■would inevitably happen if there were no entrance fee. The fee is at least partial guarantee of the bona fides of the applicant, and that no pecuniary loss will be sustained by his admission. The directors of the association, while not admitting the present fees are too high, are conscious they have been a source of some criticism, and will hot maintain that the exact rate at which they should be fixed is not open to debate. They are aware of the agitation that is going on on the subject; and are anxious that if a fair and reasonable compromise is likely to be accepted, it should not be urged they stood in the way. To meet therefore objections which have been raised, they are prepared to agree to reduce the present rates by one-half. The fees will then range for dally papers from £75 in small districts,to £450 in the four metropolitan towns! For papers other than dailies a reduction will (as has always been the case) be made, so that for a little triweekly, Say; in a country village, the charge will only be £50, and for this sum it will at once be able to enjoy the excellent service of cable and local news at a smaller cost, we have reason to believe, than in any other country in the world. Now, with respect to the second point, the association, which is really a co-oper-ative body, organised for the purpose of the inter-supply of news among its members, and not for the purpose of making profits, is registered as a joint stock company. This is for the convenience of working, and not for trading on ordinary commercial lines, feelntr, however, under the Companies Act, it cannot admit subscribers to identically the same footing as shareholders, thoughl for all practical purposes they have always been so treated. For instance, occasionally rebates, not dividends, be it understood, have been paid, and the money, has Invariably been distributed to all subscribers, not to shareholders alone. The director's have done their best to excite interest in the affairs of the association, even to the extent of paying the expenses of shareholders to induce a • full attendance at meetings, and all suggestions or complaints from subscribers have always received exactly the same attention as though these subscribers had been actual members of the company. While therefore, not legally able to treat subscribers as shareholders to the extent of giving them votes, the directors desire to point out that it is open to any subscriber to acquire a vote by taking a share in the company, which we ■ believe is all that is aimed at. Indeed, they see no objection to the suggestion made by yourself at the interview the directors had with you on Saturday, that it should be made compulsory on each subscriber to take up at least one share. The acquisition of shares is the- only method we are aware Of by which subscribers can obtain the footing of shareholders in a registered company, and it is one which will readily attain the object mentioned in your memorandum. All shareholders have, of course, a voice in the election of directors, and the conduct of the business at the meeting of the company. Beyond the concessions mentioned above, the directors of the association are not prepared to go and they commend them to the consideration both of yourself and of the 42 members who, you assure us, are interesting themselves in t£e matter.Yours faithfully, L. BLUNDELL, Chairman. .