NEW TELEGRAPH RATES

Press, Volume LXX, Issue 21132, 6 April 1934, Page 10

NEW TELEGRAPH RATES

♦ COST TO BUSINESS HOUSES A STRONG PROTEST INCREASE OF MORE THAN TEN I'ER CENT. NOTED The telegraphic bills of several Christchurch business houses have increased by 10 to 15 per cent, since the new scale of charges was introduced by the Post and Telegraph Department. This statement was widely supported at the meeting of the council of the Canterbury Chamber of Commerce last evening, when the chamber decided to protest to the Postmaster-General (the Hon. Adam Hamilton).

Mr W. S. Mac Gibbon, who was chairman of the committee set up by the chamber to investigate the effects of the new charges, said that the experience of two leading Christchurch business firms was that for the Jasl two days, with the new telegraph rates, the cost of the telegrams sent had increased by 10 per cent. The new rates meant in-f-reases of 25 per cent, on most ordinary telegrams, for night-letter telegrams, and for collect telegrams. There was a decrease in tiie additional charge for urgent telegrams, but business houses were not much concerned with these.

A Burden on Firms "The postal authorities say that the charges have not been made to obtain more revenue," Mr Mac Gibbon said. "We say that they are going to put a large burden on mercantile houses." The benefits were confined to the area near Christchurch. The range within which the charges were below the old. shilling rate, or just on it. ended at Culverden in the north, at Castle Hill in the west, and at Ashburton in the south. Beyond that the old rate of a shilling, or a higher rate, applied. From the chart of postal districts it appeared that in only 52 combinations out of 324 would the charge now be less than a shilling. Willi the advantages of the telephone service now offering, sixpenny telegrams for the immediate district were- not greatly needed. Those who had no telephones of their own used the slot telephones. When it was possible to put through a telephone call to Rangiora there was not much advantage in being able to send a telegram for lOd. If the new scale were allowed to pass without protest firms would find themselves with greatly increased expenditure on telegrams. Mr Mac Gibbon referred to the protest of the Dunedin chamber and added that it now cost Is 3d to send a telegram from Christchurch to Dunedin. As he had said, two large firms had found their telegraph bills increased by 10 per font, and more: yet the Telegraph Department said that if was not aiming at increased revenue. He moved that the chamber should support the Dunedin protest, and that a suitable telegram should be sent to the PostmasterGeneral immediately. Possible Retaliation Mi- A. F. Wright said that one business house had already given instructions that, where letters could be sent, the telegraph service should not be used. It was possible that the department would tind that as a result of the new scale of charges its revenue would decline. Mr John Mac Gibbon said that Canterbury should protest separately from Dunedin. "Apparently the department is not sincere in saying that it does not aim at more revenue," he said. "We have become so case-hardened against extra taxation that we take each new attempt lying down, or have merely made some belated and feeble protest. We should make the strongest and most definite protest possible." "Many firms will do what the president has mentioned," said Mr H. S. Williams. "Firms will be forced to act in ways which will mean a loss of revenue to the department." "It is not long since we were able to send telegrams for 9d." said Mr V. E. Hamilton. "The rate was increased to Is, and now we have a 25 per cent, increase on that—meaning that we shall be paying 66 2-3 per cent, more than we did when the Dd charge was in force. We have a Government which is continually saying that we must reduce costs, and yet it does all sorts of things to increase costs."

The post office was suffering from a disease characteristic of ail monopolies—from lack of consideration for its customers—said Mr W. Machin. It was, as all would admit, an efficient organisation, and consequently it was strange that it should be so inconsiderate. Not long ago, when the surcharge had been imposed on letters, the post office had learnt a bitter lesson about the effect on revenue of inconsiderate increased charges. Similar misguided endeavour seemed to have inspired the present changes.

Comparison Asked For Mr Machin suggested that the chamber should ask the PostmasterGeneral to make public the amount of revenue derived from telegrams last year, and at the same time to publish an estimate of what sum would have been received if the present charges had applied last year. The post office, he said, belonged to the public of New Zealand, and was supposed to be run in the interests of all members of the community. If the PostmasterGeneral wished to be frank, lie would provide this information. Mr Machin, after investigating the effect of the now charges on two businesses with which he was concerned, was satisfied mat the cost of the firms' telegraph bills would be increased by from 10 to 15 per cent. Without any desire for a reprisal, firms would find themselves compelled to economise in the number of telegrams Mr Mac Gibbon's motion was carried, as was a motion embodying Mr Machin's suggestion for a request to the Postmaster-General. Position in Dunedin The Dunedin Chamber of Commerce asked that the Canterbury chamber should protest against the now telegraph charges. The letter from Dunedin said: "The Minister has repeatedly stated that the change is not being made for the purpose, of, obtaining more jevfinue,

but it is not too much to say that about 90 pei- cent, of the business telegrams from Dunedin are for more than 100 miles. The business people here cannot regard this in any other light than as extra taxation." In its letter to the PostmasterGeneral the Dunedin chamber stated: "The contention that the new rates will not raise the cost all round cannot be substantiated. The department states that it bases its new figures on experience of telephone calls within 100 miles radius, as the cost for greater distances makes the telephone prohibitive and telegrams cheaper. The reverse, therefore, applies to telegrams. Business houses make no use of telegrams in the home town, and very little of telegrams within distances such as Clinton (new rate lid) in the south, and Hampden (new rate lid) in the north; largely because telephone charges are cheaper, as for instance Milton 7d, Hampden 7d, Mosgiel 4d. and also because of the ability to dispatch letters quickly on the main south line.

"The experience of business houses is that telegrams are mostly used for communication to the other island and in a lesser degree to towns like Invercargill and Gore in the south, and Timaru and Christchurch in the north. These towns are either under the present rate of Is or with an increase of Id. There is a considerable volume of telegraph business with the North Island, and the cost here will be advanced about 25 per cent."

Telegram to Postmaster-General After the meeting the following telegram was sent to the Post-master-General:— "In view of your statement that the alteration in the telegraph rates was not devised for the purpose of increasing revenue, the Canterbury Chamber of Commerce has received reports from associated houses that the new telegraph charges have greatly increased their telegraphic costs, and that they have received practically no benefit from reduced local charges. The chamber therefore strongly protests against the increased charges. The chamber requests that you will publish the data on which the alterations were made, giving the actual revenue from the last 12 months' telegrams, and also what that revenue would have been if they had been charged at the new rates."