THE TELEPHONE SERVICE.

Press, Volume LXV, Issue 13363, 3 March 1909, Page 6

THE TELEPHONE SERVICE.

Tho Premier, in his interesting remarks to our representative yesterday regarding the telephone service, rather evaded tho chief point at is-u'e. Neither Mr Laurenson's er:tieisr.-s nor our own were directed at the rates paid by | town subscribers, but at thejo imposed on persons living just outside the immediate suburbs—in places such as Opawa, Sumner, and Lyttelton. Sir j Joseph persisted in talking about tho I charges in the '"count:;- dwtricts" ar.d ' t)\r> "back blocss." which wore rz,t ir. j the question at all. It was a:i ex: irpie ! cf the futile practice. «o vie,;>i" tt-- _"oli- j tician.-,. of Aetlis<g up straw _,;<•" icr j tho purpr>ro of kr.c.r.,i.-.g t:".-?:« do.vr. I With much thai i! ,? P.-; ;:.i; - -:id _ em- j can, ot ccurse, 33:00. Tie "toll" |

system that has been adopted.-in Australia, by which subscribers haVe to pay extra for' each connection over the fixed number which ' taey ar-i allowed each year, would probably bo most unpopular in New Zealand. His statements as to the cost and earnings of our telephone system agree with those we published yesterday, and as the Premier said the margin cvor and above working expenses, after providing interest oa debentures, is a very slender ono, and does not allow much elbow room for reducing rates. But here again Sir Joseph set himself- to demolish imaginary opponents. "If," he said, "the rate, -per mile in "tho country districts were re"'duced to a figure which would pro"'eltice less than tho cost of construe- " tion,'' tho Department would receive many applications for telephones, and the more it supplied the greater would be the loss. Tho argument is really bo obvious as to be hardly worth raising, but there has been no suggestion during the present discussion that lines should bo constructed and carried em at a loss; all that wo suggested was that possibly tho Postmaster-General had not found tho point to which it was safe to reduce charges without incurring loss. The idea that tho general body of taxpayers should make up any eleficiency caused by reducing helow paying point the rates charged to telephone subscribers has not, to our knowledge, been advanced by any responsible body in tho country. An increase of telephone subscribers means, of course, as Sir Jcseph claimed, an increaso in tho capital cost of tho service; but wo think, ho harps too much on tbat sido of tho question, and wilfully or otherwise, overlooks '-he fact that an. increased number of subscribers would mean an increased revenue. The Premier's optimistic conviction that everything is for the test, in this best of all possiblo countries, makes it somowhat difficult to induce him. to introduce reforms. But the question whioh lit* discussed j esterday will no doubt be brought under his notice again, and by that ■ time he may havo come to the conclusion that something can bo done in tho desired direction.