INCREASED REVENUE

Evening Post, Volume CXIX, Issue 110, 11 May 1935, Page 11

INCREASED REVENUE

P., AND T. BUSINESS

(Special to 'he- "Evening Post")

. PALMERSTON N,, This Day. ■ The method of 'charging for telegrams according to the distance between dispatching and receiving stations'instead of on a flat rate was referred to by Mr. G. McNamara, Direc-tor-General of Post s and Telegraphs, when addressing the. Luncheon Club yesterday. ■ .

!:' 'Since telephony had been developed, said Mr. McNamara, it had largely replaced .the telegraph for short-distance work. The telegraph was left to .handle longer. distances .and sometimes such a message was handled by from twelve to fifteen men. The Department was bound to recoup costs, and if a message, cost 2s to send the sender should be £eady to pay that amount. If the increase- had not been made the losses would have had to'be met.-by higher telephone charges, which not havei been fair to telephone users. So far the new policy had been successful, aiid was bringing in more revenue. There was no doubt that other countries, would, soon; follow suit. When the Department' extended the half-rate telephone hours from 8 p.m. to 6 p.m., he added, it had expected a loss of. £11,000 annually, but actually the business had increased.by £3000 monthly. In view of this! it might be argued" that rates ..should be still further reduced, but if that were done it would. be necessary to call for £3,000,000 next year to' provide lor more lihes. \