THE TELEPHONE CHARGES.

New Zealand Herald, Volume XXXIV, Issue 10408, 5 April 1897, Page 5

THE TELEPHONE CHARGES.

There can be little doubt that a mistake has been made in the attempt to increase the telephone revenue by raising the charges. New Zealand had enjoyed the distinction of having in proportion to the population, by far the largest number of telephone connections Of all the colonies, by reason 0 f the reasonable and attractive terms it which the convenience was offered to the people; and several of the other colonies suffering from heavy losses, •nd little custom in their telephone service, had been gradually following the lead of this colony in lowering the charge. To raise the rate of fees for ny public service is an unusual and retrograde proceeding, and apart from the injury to the public we have little doubt that the raising of the fees will show a diminished revenue. The present loss on the telephone service of the colony is about £4000 a year; and from experience of other services, one would say that to increase the facilities and attractions of the system would be the most likely ff ay to meet that deficiency. The method adopted seems especially directed to diminish the number of suburban connections by doubling the mileage charges for extension of wires beyond the basal distance. Now as a rule suburban connections with private houses are a luxury rather than a necessity, and they have grown up in New Zealand as they have grown nowhere else, mainly because of the reasonableness of their cost. When that feature i; eliminated there will be few extensions, and no doubt a good many forfeitures in this class of business. In fact in many cases the charge will be simply prohibitory, and as the private house connections have given incomparably less trouble to the officials, and in consequence entailed much less expnse in service, because of the fewness of the calls made on them as compared with the telephones of the business houses, the saving in salaries will be inappreciable while the loss in income may bo considerable. Indeed, it should be to the interest of the department to give encouragement to extensions in the suburbs, which are frequently a "fancy" rather than a necessity, even if it was found necessary to add something to the cost of the business services. To the large business house?, of course, the additional two pounds in the year will signify nothing; though to the smaller class of tradesmen the raising of the rates will mean a good deal, and will in many cases decide between the continuance and the surrender of Die telephones. Possibly the most judicions course that could be taken would be to adopt the German system of charging for the telephones according to the number of calls as registered automatically at the central station— minimum of course being fixed. This would make the charges for the telephone in proportion to its value to the customer, and would enable inducements to be held out to those who obtain a telephone connection as a luxury or "fancy" rather than a necessity. The prohibition against "strangers" using telephones is of course an absurdity, as it will be evaded continually by the owner or members of his household or establishment performing the service to oblige a friend. The chief evil, however, which will be done under the now regulations, if they are carried out, will be in the stoppage which they will put to suburban and rural connections, and the severity on which the increased rate will press on the small and struggling tradesman. However, the whole thins is retrograde, ind is particularly inopportune at a lime when everybody is complaining of the deficiencies of the working of the service, and the difficulty found in getting answers to calls.