NATIONAL TELEPHONE COMPANY.

Press, Volume XLIX, Issue 14564, 15 January 1913, Page 9

NATIONAL TELEPHONE COMPANY.

A BIG AWARD,

(By Cable.—Press Association.—Copyright.) LONDON, January 13. In the case, National Telephono Co. v tho Post Office, tho judges ascertained tho cost of construction and plant, and then deducted depreciation. The Telephono Co.'s stock thus fell to £109, a drop of £30. Tlie company was awarded £12,515,000 as compensation for tho business and plant taken over.

In accordance with an agreement entered into by tho Unionist Government in 1905, th© State took over from December 31st, 1911, tho whole business of th© , National Telephono Company—a great corporation with £3,000,000 capital, employing about 18,000 men and women, and supplying for the us© of the public about half a million telephone instruments. Under the terms of tho agreement the Post-master-General purchased on December 31st, 1911, tho plant of tho company, and took over tho business carried on by them up to that date. Provisions wero inserted for tho purpose of excluding from the purchase plant that which -was inefficient or unsuitable. Tho price, which was to be determined oy arbitration in cas© of disagreement, was to be based on what aro known as the "tramway terms." No payment was to be made in respect of goodwill or profits, except in the case of tho company's private wire business, which can be transacted without a license (th© value of which is to bo taken to bo three years' purchase of the net piofits),. and in the case of tho four focal areas where the license had been extended beyond 1911 under the Telegraph Act, "1899, as a consequence of (municipal oompetition. During tho contiiruanco of their license the company wero to allow intercommunication without additional charge between their system and that of the Post-master-General. They weio precluded from showing favour or preference as between subscribers, and the rates to be chnrged by them wero confined within certain limits. Conditions were also inserted to ensure the proper maintenance and development of the telephono system until 1911. Tho servants and officers of the company (excepting those receiving £700 or upwards) who had not been kss than two years continuously in the service of the company on December 31st, 1911, wero to bo taken into tlio service of tho Post Office.