TELEPHONE EARNINGS

Otago Witness, Issue 3250, 28 June 1916, Page 3

TELEPHONE EARNINGS

(Feom Odb Own Correspondent.) WELLINGTON, June 22. An important statement regarding telephone services was made by the Postmastergeneral this evening, when the Post and 'telegraph estimates were under consideration, and members all over the House were asking for telephone extension, reduced charges, and other concessions. "I want, first of all, to tell the committee," said Sir Joseph Ward, "that the returns from tho expenditure on telephone lines, after providing for the cost of construction of the lines laid down, is 1.42 per cent. We expect from tho Railway Department to have a return of 4- per cent, or over, and wo expect from all ordinary commercial departments of the Government to have at least a sufficiency to ensure that we get a reasonable return for the public money expended. In my opinion the extensive nature of tho service provided for the people is such that we should expect a return on tho initial cost of Og per cent. Upon this tho loss made upon the telephone service is nearly 3 per cent.. I make this statement to let members know that while they are naturally anxious to have these telephone facilities extended, it is very little use asking for lower charges. It is obvious to mo that when the Jiet return is IS per cent, no extensions can bo granted unless a reasonable return on the money expended is assured, except, it be those extcrsiona to settlers in the backblocks. All the others havo to bo looked at from the point of view of how much they are going to bring in to the coffers of the Treasury. If we don't do that tho lime will come when there will be not only no reduction, but a very largo increase." It! tho course of tho discussion. Sir Jos. Ward said he would not bind himself to increaao the number of slot telephones. Some of these machines did not jyeld sufficient to pay for tho oil required for them.