LONG DISTANCE TELEPHONES.

Press, Volume XLVIII, Issue 14349, 8 May 1912, Page 10

LONG DISTANCE TELEPHONES.

. i INCREASE IX CHARGES. Within the last few days long distance telephone .subscribers to their i astonishment and indignation, received i a circular from tlic Department to tho effect that tho rental of their telephones was in pursuance of new regulaI tions recently adopted, to be increased [by £1 per mile per aurrum for every rnilo over threo miles from tho Central office. Tho effect of this fiat is to increase largely the already substantial annual rental which many of tho long dietanco subscribers pay. j What is the reason for this increase, J which, on the face of it appears to I have, little to commend it? A "Press" ; representative made enquiries into the I i matter yesterday. It seems that! I hitherto the regular charge was £2 per ; niiio over threo miles; a uniform feo j which all subscribers paid. Now some I subscribers are iisked to pay £3 per inilo per annum, -while others retain their connection at tho rate of £2 per J mile per annum over the j three miles. Up to tho three miles no change has been mado iin tlu> charge. It appears that up to j April Ist, 1897. the capital cost of all I extensions to tho telephone- system be- ; yoi:d the tlireo mile limit was paid for 1 by tho Government, and the subscriber I was charged tho • cost of maintenance ! and other expenses represented by tho !£2 per mile per annum. On April Ist, ISO 7, however, new regulations came into force, whereby tho capital i cost of telephones constructed over tho j threo mile limit was paid for by tho J subscriber who wished tho extension I made, and ho. likewise, was charged i£2 per milo per annum for mainten- ! anee, etc. The effect of this was to separate the subscribers into two classes, these who had paid the capital cost of construction themselves and those who had it paid for them by tho Government, although both classes paid tho same rental. The intention of tho now regulation is to call upon the latt«- class to contribute an additional £1 per milo per annum by way of interest on the capital cost of their extensions, and so to bring them in lino with tho other class of subscribers who paid tijo capital cost themselves. Tho increase, therefore, will not affect thoso who rented an extension after April Ist, 1897.. They have already met tho obligation -which is now imposed upon those who rented extensions prior to that date.