WIRELESS BROADCASTERS

Evening Star, Issue 18999, 22 July 1925, Page 10

WIRELESS BROADCASTERS

GOOD CONTRACT SIGHED SOUTH ISLAND STATION WITHIN SIX MONTHS (Frcki Our Parliamentary llepoutkb.l WELLINGTON, July 21. Under the contract made with the Postmaster-General broadcasting stations are to he in operation at Auckland and Christchurch, to ho followed hv stations in Dunedin and ■Wellington. The agreement is between Hie Government and William Goodfollnw (Hamilton) and A. R. Harris (Christchurch) as trustees for the Broadcasting Company. Gooclfellow and Harris undertake to order forthwith two radio telephone broadcasting equipments designed to deliver 500 watts of radio frequency power, and lo erect one station in Auckland and one in Christchurch within’ six months from the date of (In' agreement. When these stations are in operation the licensee,s_ must, if requested to do so by the Minister, erect a station in Wellington and one in Dunedin. Goodfoliow and .Harris undertake to at once form a company which will ratify the agreement and assume control before August 01. The company will have limited liability, wit h a capital of £20,000, divided into 20,000 shares of £l each. It, is also agreed that 10 per cent, of any issue of shares which the company may from time to time make must ho held at iho disposal of the department for a certain period. The agreement stipulates that the company shall take all reasonable steps to provide and maintain an efficient broadcasting service in pursuance of iho broadcasting regulations, and will also make any necessary provision for new apparatus to keep the stations up to date. FINANCIAL CONDITIONS. From Hie commencement of the agreement the Post and telegraph Department will credit, to a broadcasting fund £1 5s out of each annual fee of £1 J(l> received by the depart meet in resport to listener,-' licenses, and 00 per centum of foes received by the department in respect, to radio dealers' licenses; and the -Minister will pay tlm proceeds of such fund to the company as may he arranged. income received by iho company will he dealt with as follows (a) For the establishment and maintenance and operation ol broadcasting stations >n pursuance of the agreement; (b) for the provision of now apparatus to keep the broadcasting stations up to date; (c) for providing suitable matter tor broadcasting; (d) for the payment of ordinary working and operating expenses, including payments on debentures; (e) for payment, to shareholders of a dividend winch shall not exceed 7.1 per cent, per annum free of income tax (except upon winding up the company is not permitted fq declare a dividend at a rate exceeding this 71 per cent, per annum free of income tax) ; (f) for setting aside the residue for any expenditure or outgoing which the company requires to make provision for, including depreciation or sinking fund. If at the end of five years the agreement is not renewed, it is agreed that the Crown will purchase from the company the whole of the plant, machinery, and apparatus in proper working order at a price to bo agreed upon ; and if an agreement cannot be reached the price "shall be determined by arbitration. NO MONOPOLY. Sir James Parr (Postmaster-Gene-ral), in explaining the terms ol the agreement, said ho was glad to acknowledge tliat both the broadcasting syndicate and Messrs Gooclfellow and Harris had been actuated with a desire to have broadcasting placed on a proper basis, and without any idea of profit. “ I would like especially to take this opportunity of publicly acknowledging the efforts and assistance given by the syndicate in endeavoring to establish an improved broadcasting service. The reasons of the failure of the nogotiatons wth. a former bodv were that they could not. see their way to agree lo a, short five years’ contract, but as this was one of the essential conditions provided for in the Act, the department was not able to enter into an agreement for a, longer period. It has been suggested that broadcasting is being handed over to a monopoly. This is quite contrary to fact. The whole scheme is based on the 00-opera-tivo system, each party interested doing his best to assist the other lellow. If this principle bo maintained I venture to predict that before long a thoroughly satisfactory service will ho brought about “ With reforenro to the present stations,” continued the Minister, ‘‘ it is hoped that arrangements will ho mado for the existing broadcasting stations to continue operations until the new stations are erected. The department is at present paying a subsidy out of listeners’ fees to these stations at the rate of £.15 per week to each station, or at the rate of £3,120 per annum. Some criticism has been levelled at the department because of the fact that the full fee of £1 10s has been imposed since April 1 last, although the new broadcasting scheme was not in operation. Those who criticise should appreciate the fact that the higher fee must ho paid from the date on which the new regulations come into force. It is unreasonable to expect that the increased fee should be charged only from the date on which the new high-power stations commence operations. The point must not be overlooked that for two years listeners have received the benefit of the present broadcasting service without any payment whatever, except a Ss license fee. | The existing broadcasting stations have I carried on operations in face of great difficulties anil at considerable cost, without demanding assistance from the ■ listeners.”