TELEPHONE BUSINESS.

New Zealand Herald, Volume LXVII, Issue 20649, 22 August 1930, Page 13

TELEPHONE BUSINESS.

MILLIONS OF TOLL CALLS. BETTER AND WIDER SERVICE. COST OF DEVELOPMENT. [itY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Thursday. "The outstanding feature of telephone business was the increased use of the telephone for toll purposes," says the annual report of the Post and 1 elegrnph Department. The total number of calls exceeded 11,000,000, representing an increase on the previous year's trafiic of over 7 per cent. r l he toll revenue amounted to £482,571, an increase of approximately 9 per cent. While this greater use of the toll lines was stimulated to some extent by greater commercial activity and by the more extensive use of the telephone in the social life of the community, probably the largest contributing factors were the increased speed of seivice, the improved quality of speech and the greatly extended range of service that has been provided during recent years. Ihe toll revenue for the year exceeded the revenue derived from telegrams, the relative figures being 4 toll, £482,571; telegrams, £405,604. Ten years ago the corresponding figures were toll, £211,911; telegrams, £392,310. Rentals and Service. "The development in telephone-exchange service during the year constituted a record, the number of new connections (main stations) being 12,781," adds the report. "In an expanding telephone j gystem it is an axiom that to maintain telephone exchange rentals at the same j level is actually .to reduce them or render service at a lower rate. The result j of growth in the number of telephones connected to an exchange is that the telephone user receives more valuable and extensive service for the same rental. A 10 per cent, increase in the number of telephones in a local exchange area means that a subscriber may at the same price talk to 10 per cent, more people. "Unlike many other business undertakings where increased production or turnover means a decreasing cost of production per unit, or a proportionately decreasing overhead cost, the telephone business is one in which the factor of growth and the resulting complication cause the cost of giving local service to increase almost in direct proportion to the increase in the extent of the service. Cost of Increased Services. "This may seem paradoxical, but when it is considered that increases in service in large areas necessitate the acquisition of land, the provision of buildings to house satellite or branch exchanges, the installation of separate exchange equipment, the installing of junction apparatus at allexchanges in the area, the laying of special cables between the exchanges as well as the establishing of separate maintenance or operating staffs it will be realised that the problem of maintaining existing rentals in the face of extending service is a very real one. "It is only by studying the constant advances in the telephone art and developing improvements in operating and maintenance methods that continually increasing service in local areas can be furnished without increases in rentals." SHIPPING SERVICES. FACILITATING TRADE. CONTRACTS WITH GOVERNMENT. [UT TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON, Thurnday. "As the time of expiration of the existing services draws near the whole question of the South Island-Australia connection will be carefully reviewed with a full appreciation of the importance of the matter to the South Island," says the Postmaster-General, Hon. J. B Donald, in the annual report of the Post; and Telegraph Department. It was recognised by the Government when it assumed office that there was good ground for the compiaint emanating from the South Island of the lack of direct shipping facilities between the South Island and Australia, continues the report, and action was taken to invite tenders for a Bluff-Melbourne service to provide for an improved connection with regular sailings. Only one offer was received, from the Union Steam Ship Company, and after negotiations arrangements were completed during the year for the performance by the company of a Bluff-Mel-bourne mail, passenger and freight service, the steamers Manuka and Maheno to maintain the service with sailings at alternating intervals of nine aud twelve days. However, owing to the wreck of the Manuka at Long Point, on the coast between Bluff and Dunedin, shortly after taking up her contract running, and because of the inability of the contractors to make another suitable vessel available, the service is being performed by the Maheno for one year only from January, 1930, at intervals of twenty-one days, following the route Melbourne-BlufT-Dunedin-Lyttelton-Wellington inward and Wellington-Bluff direct to Melbourne outward. " The contract services between Auckland and Vancouver and between Wellington and San Francisco and the noncontract services between'Auckland-Well-ington and Sydney have been performed with pleasing punctuality* throughout the year," states the Postmaster-General. " providing the regular communication ithat is so necessary to the business community with the countries overseas with which the great bulk of our trade is transacted. The contracts for the Vancouver and San Francisco services, which expired on March 31, were renewed for a further period of twelve months."