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THE PARLIANIENT OF THE COJ\ilMON,VEALTH OF AUSTRAlJIA.

OF THE

ROYAL COMMISSION

ON

POSTAL SERVICES.

Presented by orde1·ed to be printed, 5t!t October, 1910.

[Cost oi Paper -Preparation, not given; 1,500 copies; approximate (st ol prihting nnd publishing, £160. l

' it)"

l'rinte•l :md Published for the GOVERNMENT of the CoMMONWEALTH of AuSlkALLI hy J. f\HII' , Government Printer for the State of Victoria. No. 50.-F.8564.

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GREETING:

COMMONWEALTH OF AUSTRALIA.

EDWARD VII., by the Grace of God of the .United Kingdom of Great Britain a11d Jr .. lurul <11od •·I tJ11 British Dominions beyond the Seas, King, Defender of the Faith, Empuor of J,.J,,.

TO our trusty and well-beloved* the Honorable JAMES HuME CooK, M.P., Sowlar tlu 1/urwrubl< J{\·,.11 DE LARGIE ; Senator the Honorable EDWARD MuLCAHY; the t'IIARI.t:• c·,,.n

.SALMON, M .P.; DAVID STORRER, Esquire, M.P.; WILLIAM Wt:osnm, };"'l'"rr , .If ./' . . the Hon01·able WILLIAM HENRY WILKS, M.P.

KNOW ye that We do, by these our Letters Patent, appoint you to be Commissioners to inquire into a,./ '"!"'" u1 .. , tAt Postal, Telegraphic, and T elephonic Services of the Commonwealth, and more particularly in rrlulitm lu 1)., fu/J .. u.·"'

(2) Finance.

(3) Organization, includ{ng discipline.

(4) Extensions in country districts, and particularly in remote or sparsely populated Jl

(5) Complaints in relation to the set"vices.

AND WE appoint you the said JAMEs HUME CooK to be the Chairman of the said Commiasiott :

AND WE direct that at any meeting of the said Commissioners four Commissioners ahall be s uflirr·,.,,, lo '"''·'"'"'' " quorum, and may proceed with the inquiry under these Our L etters Patent notwithstanding the ab6rlltr oftlu utlur Commissioners:

AND WE further direct that in the event of the absence of the Chairman from any meeting of the suid Cu,.,,., .. lfitma•

the Commissioners present may appoint one of their number to act as Chairman during such abse11te :

AND WE further direct .that in the event of the votes given on any question at any meeting of the "aid ( .'ummM•wrra•

being equal, the Chairman, if present, and if the Chairman is. not present then the Commissioner appointed to tl(l '"' Chair"'"'' in his absence shall have a second or casting vote :

AND WE further direct that the said Commissioners may, for the purpose of taking evidence in relation lu tlrr '"'1'"'!1• divide themselves into two or more parts, consisting of not leas than two Commissioners, and may appui111 one of their 11uml•n to act as Chairman of any part of which the Chair;,_an of the said Commission is not a member, and that rarh •urh I""' may meet and take evidence separately from any other part, and that each such part, when meetinq separald!f. 6hc1lll, ''"d

is hereby constituted a Commission for the purpose of the inquiry, and that at any meeting of any sud• pari I om shall be sufficient to constitute a quorum, and may proceed to take evidence notwithstanding the absence of any utlur """'''rr of such part, and that, in the event of the absence.of the Chairman of any such part from any meeting of that pari, the m

person appointed to act as Chairman of a part of the said Commissioners shall, as regards that part, have all the purtvu of the Chairman of the said Commission :

AND WE require you, with as little delay as posst'ble, to report to our Governor-General in and over our aaid Common.

wealth the result of your inquiries into the matters intrusted to you by these our Letters Patent :

IN TESTIMONY WHEREOF We have t;aused these our Letters to be made Patent, and the Seal of our •aid Commonwealth to be thereunto affixed.

WITNESS our trusty and well-beloved .H ENRY STAFFORD, BARON NoRTHCOTE, Knight Ornud Cross of our Most Distinguished Order of Saint Michael and Saint George, Knight Ora11d Commander of our Most Eminent Order of the Indian Empire, Companio" of our .1/u.

One thousand nine hundred and eight, and in the eighth year of our reign.

(Sgd. ) NORTHCOTE,

Governor·Uencral.

By His Excellency's Oi>mmand, ALFRED DEAKIN.

ENTERED on record by me in Register of Patents, No. 3, page 147, this twenty-fourth day of June, One nine hundred and eight.

ATLEE HUNT

(* NoTE.-ln December, 1908, Messrs. Cook, Mulca.hy, and Salmon resigned from the Commission, and lllr. Wilks was appointed Chairman.)

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INDEX.

Accountants Accountant, Chief Accounts Branch Accounts, registration of

Accounts, uniformity of Acting officers Allowances, district Allowances, forage

Allowances, risk .. Allowances, travelling Appeal Board Appeals Appointment Branch Assistants, Clerical Assistants, Postal ..

Associations Authorizing Officers Balance-sheet Boards oi Inquiry

Boy labour Branches, Heads of Buildings and accommodation Cable Service

Central Office Centralization Certifying Officers Chief Clerks

Civil rights Classification

PAGE

.. 12, 72

.. 12, 59

72 75

.. 12, 72

140 162 164 164

161 155 155 75

120 120 141 74

.. 12, 72

153 112

69

.. 13, 166 49 9, 59 17

74 15 165 62

Clerical Division . . 68

Commonwealth, transfer of Department to 8 Compensation. See" Liability of Department." Complaints, public 180

Concentrator 105

Condenser system 105

Construction and maintenance 90

Correspondence Branch 119

Debts, payment of 166

Decentralization . . 17

Deputy Postmasters-General 14, 20, 61

District allowances. See " Allowances." Economies, finance 57

Economies, management . . 23

Electrical Engineers' Branch 88

Electrical Engineer, Chief . . . . 11, 60

Estimates, preparation of 39

Estimates, reduction of 32

Examinations 130

Exempt employes 128

Expansion 90

Extensions in country districts t73

Extraneous duties. 81'e '' Other Departments.·· Female officers 121. 187

Fidelity guarantee 165

Finance 2l

Financial aspect of services Financial position of Departm()nt Fines and punishments Fire risks Forage allowance5. .. Allowanc:r;."

Funds, amount require

Home Affairs Department

150 171

39

.. 17. 31

160 H7

9, 16

" Householder " cir 78

Hygienic conditiom I 72

Incompetent officers I :H

Inefficiency of service:; 16

Inquiry, Boards of. s,·t· "BJ:trJ> of Inquiry." Inquiry fee 79

Inspection Inspection of letter carrier.> Inspaetion ol telegraph ..

Inspection of telephones Inspectors Inspector, .Chief .. Ir;stmetions to officers

Instrument fitters Insurance fuml .. Labour-saving appliances .. Leave of absence

Letter boxes Letter carriers Liability of Department Linemen

Luncheon hour .. Mail bags and seals 1\iail Branch Mail contracts and contractors Mail deliveries

rv1ail drivers

l\'hil matter, handling of Mails, Superintendent of

Maintenance Management I'.'Ianagement, alternative schemes 1\'Ianagement, defects in

Management, defects in syste:n of Management, multiplicity of control

.. 13, 70

87 Ill

!H

.. 13. 70

.. 22, 59

61

93 40 t::!l 157

79

80 91

150 79 75 77 76 87 75 75 90

8

18 9

15

16

5

PAGE

Management, recommendation re 19

Manafacture of material 96, 118

Mecograph 111

Metalllc circuits .. 95

Minimum wage .. 29

Mlnlsterial control 15

Money Order Branch 73

Monitors 98

Newspapers 43

Non-paying services 2!1

Organization 58

Other Departments, work for 124

Overpaid officers . . 139

Oversea countries .. 10, 60

Overtime 145

Packet post .. 44, .79

Parcel post .. 44, 79

Parcels, Insurance of 45

Parcel post, value payable 45

Pole dressers 92

Porters' loads 88

Postage accounts, Government Departments . . 46 Postage rates 41

Postage stamps. S ee "Stamps." Postal Guide 61

Postal notes 73

Poste restante 78

Postmasters 113

Postmistresses 115

Post-offices, grading of 112

Post-omces, unomcial 115

Promotion 136

Public Service Commissioner Public Works Regulations Record Branch . . Registered letters . .

Reguiations Relieving staff Rent of quarters .. Salaries Sorters . . Sorting, methods of Staff Committee . . Staff shortage Staff statistics Stamp commission Stamping machines, automatic Stamp printing . . Stamp, uniform . . Standardization of materials State rights Statistical Branch

RECOMMENDATIONS

9, 16 9

119 77 61 157 114

28

80-83 . .. 13, 81

22

.. 11, 33

58 46 45 45 45 118

65

.• 75

-·

6

Stores Branch Stores, checking of Stores, distribution of Stores, obsolete .. Stores, purchase of Suggestions Sunday work Superannuation Supervisors, telephone traffic Switchboards, automatic Tea money Technical Division Telegrams, checking of Telegrams, method of payment

Telegraph Branch Telegraphic service, condition of Telegraphists . Telegraph messengers

Telegraph rates .. Telegraph rates, code and cipher Telegraph rates, press Telegraphy, automatic Telegraphy, wireless Telephone Branch Telephone calls, recording .. Telephone cabinets Telephone conduits Telephone exchanges Telephone instruments Telephone management Telephone service, condition of Telephones, public Telephone rates .. Telephone · rates, recommendation re Telephone rates, reduction of Telephone trunk lines Telephonists Temporary employment Tenders Time in lieu Training Transfers, remote districts Travelling allowances. See "Allowances." Travelling post-omce Treasurer Typewriters, telegraphists' . .

Unclaimed Undergrounding . . Uniformity of Accounts. See " Accounts."

P4 GE

117 117 118 118

. . 14, 84

143 144 165 98

95 150 67 74

49 103 84 106 111

46 49 51 103 105

93 101 101 95

93, 102 .. 57, 96

93 36 101 51 '

. . 52, 55

.. 14, 51

.. 38, 57

99, 102 11, 126 34, 119 143 13, 122

141

83

9, 16, 33 111 77 95

Uniforms 118

Vacancies, fl.lling of 140

Wheatstone telegraphy 13, 103

188

REPORT.

To · His Excellency the RIGHT HoNORABLE WILLIAM 1-Iu.MnLF., Earl of Dudley, a Member of His Majesty's Most Honora/dr Privy Knight Grand Cross of the Most

Ordm· of Saint Michael and B_aint GeOJ'fle, Knigh.t Urand Cross of the Royal Victorian Order, Governm·- G emmtl a /1(/ Commander-in- Chief of the Commonwealth of Australia.

MAY IT PLEASE YOUR EXCELLENCY-!. We, your Commissioners, appointed by Letters Patent dated tlH' 22nd of June, l908, to inquire into and report upon the Postal, Tele_!?;rnphie, and Telephonic Services of the Commonwealth, and more particularly in relation to the following matters:-

(1) Management ; (2) Finance; ( 3) Organization, including discipline ; ( 4:) Extensions in country districts, and particularly in remote or

sparsely-populated parts of the Commonwealth ; ( 5) Complaints in relation to the services ;

have the honour to report that we entered upon otir inquiry in July. but were prevented from holding continuous investigations through tlw intervention of Parliamentary business.

2. The inquiry occupied 2::!8 sittings, and your Commissioners visited every State and took evidence at all the State capitals, and at Fremantle and Kalgoorlie, Western Australia, and at Launceston, Tasmania. Personal visits of inspection were made to all the General Post Office buildings, and

many branch telephone exchanges, and suburban post-offices of Sydney and Melbourne. · ·

3. Your Commissioners examined l90 witnesses, and evidence received from-

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(1) Representatives of Public bodies. (2) Representatives of Chambers ·of Commerce and Manufactures. ( 3) Representatives of Commercial Institutions. (4) The Commonwealth Public Service Commissioner and Inspectors.

( 5) The Commonwealth Auditor-General. (6) The Secretary to the Treasury. (7) The Secretary to the Department of Home 'Affairs. (8) The Permanent Head, Assistant Secretary, Chief Electrical

Engineer, Chief Clerk and Accountant of the Central Office of the Post and '1 elegraph Department. (9) The Deputy Postmasters-General, and the Heads of Branches in each State, ·

( 10) Representatives of the Officers' Associations in each ( 11) Dr. Alexander Graham Bell, the inventor of the telephone evidence is set out in Appendix of the J1iuutes of

Evidence.)

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Constitution Act.

Transfer of t)epartment£.

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4. Dueing the course of this inquiry, improvements have been made and concessions gTanted, which, in the opinion of your were

tlte direct result of the evidence adduced by them, and they appreciate the promptness displayed by the Public Service Commissioner and the Depart­ ment in endenvouring, by the adoption of needed reforms, to remedy the defects disclosed. A list of the more important improvements made, and the concessions granted to the Service, is appended.

IMPROVEMENTS MADE AND SERVICE CoNcESSIONS GRANTED.

(I) Increase in the permanent staff by making provision m the 1909-10 Estimates for 1,500 additional officers. ( 2) Larger votes granted for telegraphic and telephonic construction worl{s. · ·

(B) Telephone rates remodelled. ( 4) Position of Chief Accountant created. ( 5) Chief Electrical Engineer's staff augmented. ( 6) Introduction of Wheatstone instruments on IntE:r-.State telegraph

lines.

( 7) Reduction of the numoer of grades of post-offices from thirteen to seven. (8) Overtime worked in the General Post Office, Sydney, partly paid for. (9) Accommodation obtained at the Ce!!tral Railway Station,

Sydney, for the Mail Branch. · (10) Sorting test simplified in Mn.y, 1909. ( 1 J ) A conference of departmental officers held to investigate the question of hroken shifts in the l\lail Branch.

( 12) Additional grade of Senior Assistant established. ( 13) Age for the admission of telegraph messengers to Service increased, and age of retirement extended. ( 14) Appointment of outside supervisors of telegraph messengers. (15) A uniform Postal Guide introduced. ( 16) Improvement made in the compensation allowed for Sunday

work.

( 17) Letter carriers' beats in Sydney re-adjusted. ( 18) Privileges extended to temporary employes. (19) Procedure under punitive sections of Con1tnonwea1th Public Service Act simplified.

MANAGEMENT.

INITIATION oF CoMMONWEALTH CoNTROL.

5. Prior to submitting to Your Excellency the conclnsions and recounnendations of your Commissioners in regard to the manage­ ment of the Commonwea.lth Post and Telegraph Department, it is advisable to briefly re1ate the history of the inauguration of that Department.

6. Under the Commonwealth of Constitution Act 1900,

63 & 64 Viet., Chapter 12, power was given to the Commonwealth

GoYernment to take over, control, and administer the Post and Telegraph Department of each State of the Commonwealth. This the

transfer to the Commonwealth of six sepnrate Departments. In accordance with the Constitution .Act, preparations were made by the Common weaLth Government to take over the six States' Post and Telegraph Departments. An Acting Secretary was appointed to act as adviser to the Ministerial Head1 and to attend to matters submitted for Ministerial approval by the

States' Deputy Postmasters-General. Under this system the Commonw<·:tltl 1 Postmaster-General and the Acting Secretary exercised a genernl <·ontrol over the States' Post and Tele:!,'raph Departments. Snhsecpa'nt to a conference of the heads of those Departments, a Bill was draftt·d, and

enacted by the Commonwealth Parliament, entitled tlw Post 111111 Telegraph Act 1901. This Act provided that the administration nnd control of the Commonwealth Post and Telegraph Department Post and

be vested in the Postmaster-General ; that there shoulu be a Seerdal'\' to Telelfapb Act. the Postmaster-General, who should have the chief control of tht- ment throughout the Commonwealth ; and that there should he in t•a<·h a Deputy Postmaster-General, who should be the principnl offit'<'I' tlf' till'

Department therein. Power was also given to the PostmaHtei'-Gt•n<'l':tl to Delciation "r delt'gate any of his powers under the Act (excepting this JHlW<'I' of powers. delegation) to enable the delegate to exercise power with resped to t lw matters specified or the State or district defined in the ol

delegation, such delegation · to be revocable at the pleasure of t lw P ostrnaster·General.

7: Concurrently with these preliminary preparations, n Centrnl central Executive was established, directed. by the Postmaster-General anti the Executive. Acting Secretary, who was subsequentJy appointed Permanent I lead of tlw Department.

8. In addition to the provisions set out in the Post and Telegrupll Acf, The Tr11uurer. the 'freasurer, by virtue of his control of the expenditure of Comuwnwt·alth funds, exercised a close supervision the Estimates of the l)ost and

Telegraph Department, and the supply of the necessary funds for cnrryiug· on the work of the Department depended upon the decision of the Tn•asmt·1·. Further, all matters relative to appointment, promotion, and tra.nsfl'r of officers of the Comrnonwealth Departments were vested in the iudependt•nt

authority of the Commonwealth Public Service Commissioner muler tlw provisions of the Commonwealth Public Service Act 190::?. The ecnstmctiou Public Service and maintenance of buildings were placed by the Public Works 1, egnlatious Act 1902. under the control of the Department of Home Affairs. The authorities PRubli1 c twl orka. - d h h . . 'd bl . egu a ouR. menwone , t oug exerCISIUg COnSI era e powers, are not Ill llll,Y Wtl,V responsible for the efficiency of the Commonwealth Post and TelegTaplt

Department's services, such responsibility resting entirely on that Responsibility. Department. DEFECTS IN MANAGEMENT.

9. Your Commissioners, their inqu. irv into the management of Defects ln '--' • '- management the Post and Telegraph Department, discovered defects which were due to a.nd system. htck of efficient management as distinct from the system of control, and also defects which were inherent in the system. In framing this Heport endeavours have been made to broadly separate the defects of systelll from those of It is evident that an inferior system, even under sound management, would make for an indifferent service. When, however, an inferior system is associated with a weak limited management, the results are disastrous. Central Executive. 10. Whilst the experience of the heads of the States' Post and Telegraph Thorough review Departments was necessary in the drafting of a scheme of Commonwealth .not made. control, it was unwise to depend upon that alone in view of its limitations. Your Commissioners consider that before the Post and Telegraph Bill was submitted to Parliament a Royal Commission should have been appointed to inquire into and report upon the management. and financial position of the services, including valuation of properties and bookkeeping systems, and also upon the advisability of obtaining the assistance of an independeut ?rganizer of exceptional ability, with experience in controlling Post and Telegraph affairs on a large scale, to advise the Government as the best method to adopt in amalgamating six different Departments lnto a homogeneous whole.

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Policy building.

lO

11. The framers ofthe policv of the Commonwealth Post and Telegraph Department were the Postmaster-General for the time being and the Permanent Head. Their attempt at policy-building was made without a sufficient personal investigation of the working of the States' branches of the Department, either before the moulding of the policy or after its introduction.

Interpretation of 12. The evidence doe.s not disclose that any effort bad been made to policy. ascertain whether the policy as formulated was properly interpreted

by the I leputy Postmasters-General. For a considerable period after Federation a good deal of fl'iction, culminating in 1907, existed between the heads of the States' branches and the Central Executive. It was natural tlwt the Chief Officer of each State, possessing State experience only,

would endeavour to imprint on the Department the local system which he

Friction with Deputy Postmasters­ GeneraL

Federal spirit.

Permanent Head remaining at head-quarters.

Appointment of Assistant Secretary.

Present system not indorsed.

Outside knowledge.

had assimilated, and which, probably for many years, he had controlled. Your Commissioners are of the opinion that, if the Central Executive had possessed itself of a better personal knowledge of the conditions affecting the DPrmty Postmasters-General of the various States, the dissatisfaction

which has existed between the Central Executive and the Deputies would have been reduced to a negligible quantity .

. 13. There also existed in the Ueputy Postmasters-General an incomplete conception of the .Federal spirit, in addition to a certain amount of official jealousy occasioned by the selection of a Deputy Post­ mae.ter-General from one of the smaller States to be the Permanent Head of the Department.

14. 'I hrough the Permanent Head of the Department remaining almost constantly at head-quarters effective management by the Central Executive is pr1-judiced. Harmonious relations hetween the Central Executive and the States' branches, together with the development of a proper scheme of managing the postal, telegraphic, and telephonic services in the interests of the public, are extremely difficult of attainment unless the Permanent Head of the Department makes periodical visits the

States' branches, in order to personally acquaint himself with the conditions existing.

15. Since the origin3l system of management was adopted an Assistant Secretary has been appointed. This arrangement of duties of the Central Executive may give rise to a conflict of control owing to the presence of two administrative officers possessing similar powers. Such a method of allotting the duties may work well under the present p,ersonnet, but it result in inharmonious relations when the personnel is changed, or

m the event of some Ministerial Head preferring to consult the junior authority rather than the senior. To obviate such a possibility a minor official should have been appointed to perform the actual secretarial duties as between the Minister and the Department, thus releasing the Permanent Head from routine work, and enabling him to make visits to

the States' branches of the Department in the character of a General This opinion is advanced only to show that the present system

hfen improved, and is not to be accepted as an indorsement of

Its contmuance.

16. During his the Permanent Head showed that he had

no personal of post and telegraph systems of other countries, other than that acqmred by reading the British Post Office Heports. He also referred to a modern economic writer on the British telegraphs and tele­ p.hones. The conclusions of this writer have, inthe opinion of your Commis­

swn:rs, n.o relevance to the Commonwealth 1 'ost and Department, as lns object was to establish a case ngainst Government ownership.

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17. Several witnesses in subordinate positions in the Department, of Subordinatea their own volition and at their own expense, had collated valuable infonuation • 1upply tl . d p d 'f 1 ih D t . t . th . '1'1 . nforma on. m regar to ost an e egrap epar men s m o . er countnes tts was especially exemplified in an official in the General Division of the in the State of New Wales. The absence of an extensive knowlt-tlgt' of of

the working of Post and 'l' E:)legraph Departments in other countries was common to all the high officials, with the exception of the Chief Electrical 0

c;

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Engineer. It may be said that the neglect to possess themselves of

this informatjon was to some extent occasioned by their too close :ulltt•l'(\11('(' to duties of a merely clerical nature. The practice of confining tlw l't·r-manent Head to miuor secretarial duties deprived him of an opportunity of becoming better acquainted with outside conditions, and acquiriug knowlt·d.!.!.·t'

which would have tended to the solution of many of the difficult prohlt·Hts of administration now troubling the Department. It would have ht•en pn11lt·11t if some of the higher officials had been afforded an opportunity of Visltlna

Great Britain and foreign countries for the purpose of making tlwmscl\'t's conntrlea. acquainted with modern post and telegraph management, equipment, and improved methods of organization. The only _insta.nce evident in whil'lt au opportunity was provided of acquiring a personal ktwwledge of thcst- tuath·t·,.

was when the present Chief Electrical Engineer wa s deputed to visit for('igu countries in 1905. There was, however, evidence of endeavours having ht·t·n made by officers to k eep abreast of . the 'times by studying teelmical and other publications dealing with postal, telegraphic, and telephonic matters.

The rapid strides made in telegraphy and telephony, and possibly in post-office administration, warrants more frequent visits than hit)H•rto hct•JI made to other countries.

18. The responsibility for local manag ement should have dcvolvt·d Local upon the chief officers of the respective States, instead of the Ccntml management. Executive overloading itself with unnecessary details of solely Statt• concern. The Central Executive should have confined itself to mattt·rs of general ·policy, and to establishing uniformity of administmtion in the Department throughout the Con1monwealth. Since the n•pot·t

of the Sub·Committee of the Cabinet in l the Centra] Exeenti\'t'

has relieved itself (Jf dealing with a large number of minor staff Etrect ofOabinet

This has reduced the clerical work of the Central Exeeu- Sub-Committee's

C ll

Report.

tive considerably, but the entral Executive sti performs unnecessary clerical work.

19. Until recently the Central Executive wa,s not sufficiently staffed Want of std. to cope with the large and continually increasing- amount of work with which it had to deal, more especially in the .Electrical and Accounts Branches. This is substantiated by the of the management.

20. The continuous failure of the Central .Executive to obtain a sufficiEmt permanent staff of officers in the respective States resulted in the employment of a large number of temporary hands. The explanation tendered was that the Treasurer had refused the necessary funds. This

excuse is considered by your Commissioners to be evidence of weakness on the part of the Postmasters-General and their advisers in not

,insisting on being supplied with the necessary funds.

21. The Chief Electrical Engineer, instead of being employed mainly as a consulting and supervising engineer, has been engaged in doing too detail work, and performing administrative duties apart from his functions. The liberation of the Chief Electrical Engineer from minor

would ha,ve allowed that officer greater opportunities of gauging the ments of the Department, and would have furnished him with ar. opportumty to make a closer study of electrical engineering developments, r-articularly telephone engineering, thus equipping him with ample knowledge to effect

economies. To achieve this purpose the Chief Electrical Engineer's Branch

Employment of temporary hands.

Misuse of Chief Electrical Engineer.

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12

Appointment of Assistant Engineers.

should have been adequately staffed by the appointment of assistant engineers. Since the commencement of this inquiry some action has been taken to remedy the serious defect of want of sufficient but your Commissioners are convinced that the necessity for providing an efficient and complete pro­ fessional staff was not fully recognised by the Central Executive. For instance. the most important office of Chief Electrical Engineer was not filled until 1906, five years after the passing of the Post and Telegraph Act. This delay resulted in an absence of uniformity in constructional methods during that period.

Proper professional staff required.

Neglect to supply balance-sheet. 2 2. A striking illustration of the inefficiency in the working of the Central Executive was its neglect to provide itself with a proper balance-sheet

of the Department's finances. This should have · been a primary concern of the administration. The Central Executive did not endeavour to :Obtain such a balance-sheet until a comparatively recent order was made by P:triiament. The balance-sheet then furnished deals only partly with the · finances of the Department, and is confined to one year's opemtions.

Through the absence of a proper balance-sheet, the officials were unable to determine the finantia] position of any branch of the Service, or even of the whole Department. The Central Executive explained that its inability to produce a proper balance-sheet was due to the Department's transferred properties not having been assessed. The Accountant in New South

vVales stated that a,n approximate balance-sheet could have been compiled in the early days of Federation equally as well as at the present time. The question of a balance-sheet will be dealt with in this Report under the heading of ''Finance."

Neglect to appoint Chief Accountant.

Broader knowledge required.

State Accountants' standard of efficiency.

Absence of high accountancy standard in Central

Executive.

Uniform system of

23. The neglect of the Central Executive to secure the services of a highly qualified and proficient accountant as Chief Accountant was a very serious omission. Your Commissioners are strongly of the opinion that the Department required the services of a most expert financial officer from its inception, as sound finance should have been the governing principle in the administration of the Department. Such an expert officer should have been appointed to act as adviser to the Central Executive on financial matters, and to introduce an efficient and economical method of keeping the departmental accounts. If the appointment of such an officer had been made at the commencement of Commonwealth control much of the financial trouble that now exists would have been avoided. This financial adviser would obtained, for the direction of the Central Executive, a clear statement of the financial position of all the services. With proper management a higher standard of efficiency would have been insisted upon in the officials occupying the positions of Accountants in the several States

branches of the Department. The majority of the Accountants examined displayed little acquaintance with the finances of their own State branches, apart from that broader knowledg·e of the general finances of the Depart­ ment which is necessary to enable them to act as capable financial advisers. Most of the Accountants in the States' branches, while being fairly good routine officers, may be chssed more as senior clerks than Accountants.

24. The absence of a high standard of qualification in the Accounts Branch of the Central Executive is answerable for the serious omission to insti!ute a uniform system of keeping accounts in the Department. By such a umform system a considerable saving of both money and labour could have

been effect ed. Under instructions from the Central Executive the Accoun­ tant to the New South ·wales branch of the Department investigated the accounts systems of the various States in 19(!4, and made recommendations for a uniform system. These recommendations were not put into operation, and in : 908 a Committee, consisting of the Chief Clerk, Commonwealth Audit

Office, and the Accountants to the Treasury and the Central Executive respec­ tively, was appointed to draw up a uniform system of accounts for the Post and Telegraph Departnwr.t, including a balance-sheet and a profit and loifi

13

account. This Committee made Rome investigations, but lmd not Htath· any recommendations up to the time this Report was written. Although the urgent necessity for a system of accounts is admitted l1y the

Department, its efforts in that direction have not been productive of mudt result. Your Commissioners consider that the Central Executive has het·ll extremely dilatory iu this matter.

25. A serious defect in the is that the inspectorial stntfs

of the States are not large enough, and that the sal:tries provided for inspectors are not sufficiently liberal to attract the best class of oltiet•r. The districts allotted to the inspectors should have been made smaller to insure more effective inspection. The Inspection Branch is oue of tlu.•

most important branches of the Department, being an advising section of tlw administration. This necessitates its staffing by most competent otii<"ers. The inspectors should be the chief assistants to the Deputy Postmasters­ General, and the instructional officers to postmasters on matters of unifol'lll

practice and methodical working. This subject will be more fully to under " Organization."

26. Your Commissioners do not approve of. conferences of I Postmasters-General, as suggested by leading officials. Such have, in their opinion, resulted in very little, if any, improvement, ns tlwy have not made for sound or effective administration during the yeat·s wht·n reform was much needed. The practice referred to makes plurality of

control paramount, and is subversive of distinct control by the l'el'lllancut Head. Such conferences were held for the alleged purpose of securiug­ uniformity of administration ; but a capable Permanent Head would first have drafted his scheme of uniform management, and, by personnl visits

and consultations with the Deputy Postmasters-General, would hnve determined its application either in its entirety or with moditicatious adapted to local conditions.

2 7. The omission by the Central Executive to adopt a more economical and expeditious system of sorting mail matter, and to establish sorting rooms close to the central railway stations in each of the capital cities of tlu .. States is of want of effective management. In defence of this

omission the Ct>ntral Executive pleaded want of funds. This still further accentuates its administrative weakness in not insisting on the necessary financial provision.

28. In the telegraph section it was discove1·ed that the Central Executive had not brought into general use the Wheatstone automatic telegraph instrument on the main lines. The reasons assigned by the Department for the non-application of this improved method of tele­

graphic transmission were the absence of expert Wheatstone operators, and the aHeged disinclination of telegraphists to acquire the necessary skill. Your Commissioners consider that the Department should have overcome these alleged difficulties in the early stages of Commonwealth control, as

they were not of an insurmountable nature. The Department is now adopting Wheatstone working, and during the past twelve months has been employing an expert Wheatstone operator from the Perth office, Western Australia, as instructional officer to the telegraphists in the capital cities.

2 9. During the course of this inquiry it -was made evident that the Department had failed to provide proper facilities for the training of its officers. This failure calls for the severest condemnation, because it has made it impossible for the Department to secure a trained staff .the

Telegraph and Telephone Branches, and it has had a most detrimental effect on the service.

30. The premises and in. the capital cities in the

found to be most inadequate

buildings occupied by the Department Commonwealth (Hobart excepted) were for the proper, efficient, and convenient

Central Executive dilatory.

'\ .

Inspection stalf11 not large enough.

Competent officers re(lulred.

Conferences of De11uty Postmaatera· General

What Permanent Head should h&n done.

Bad methods of sorting mail matter.

Administrative weakness.

Failure to adopt Wheatstone working.

Recent efforts to adopt Wheatstone working.

Inability to secure trained staif.

Buildings unsuitable·

13

Public interests affected.

No provision to purchase stores m quanrtties.

Stores Purchase Account. not insisted on.

Central Ex:ec•1tive respon · ible for congestion.

Reductions opposed bv Permanent Head and Chief Electrical Engineer.

Designation Deputy Postmaster­ General not suitable.

14:

transaction of business. The structural nature of these buildings

Hlso prohibited the effective SUJ)etvision of the officers employed Your ( 'ommissioners do not desire to convey the impression

that the Central Executive is responsible for such unfavorable conditions, as they existed when tl1ese premises were transferred to the Common­ "·2alth. The Central Executive should, however, have been more persistent in its efforts to remedy the unsatisfactory conditions, which have adversely affected public facilities an/d the proper control of the officers.

31. A serious om1sswn bv the Central Executive was that no

provision vvas made for the of stores of a standard character in

sufficiently hrge quantities for the use of the whole Department. The negleet to do this has occasioned heavier expenditure than was necessary, particularly in buying large quantities of material in general use-such as eopper wire and other articles of a standard character. Consequently the Department did not avail itself of favorable markets. The Central · Exeentive, if it had adopted ordinary business-like methods in the earlier

stages of its control, would have insisted upon tlie establishment of a Stores Purchase Account. ·

32. Your Commissioners consider that the Central Executive in neglecting to exercise ordinary foresight by making the necessary provision to uwet the demands of the public when the telephone rates were reduced in 1907, aml in failing- to profit by the experience of other countries in similar circum­ stances, is responsible for the congested state of the telephone service, and the consequent overworking of the officers of the DepartiJient The evidence discloses that the reductions in the telephone rates were made on the advice of a subordinate officer, and in opposition to the advice of the Permanent Head and Chief Electrical Engineer, and your Commissioners consider that the then Postmaster-General took action without having any sound reason tor the drastic reduction made.

Deputy Postmasters- General . .

33. The officials entitled Deputy Postmasters- General are the principal officers of the Department in their respective States, and are answerable for the intel'pretation of the policy as formulated by the Central Executive. They are., in fact, deputies to the Permanent Head, and the designation Deputy Postm[tster-General is a misnomer. The Permanent Head is the actual Deputy Postmaster-General, and your Commissioners suggest that a more descriptive title for the principal officer of a State would

be "State Postmaster."

Lack of ability of 34. There was little evidence of the existence of administrative ability Deputy in many of the present occupants of the office of Deputy Postmaster-General; otherwise they would have delegated their minor duties to a greater extent

to subordinate officers. The evidence also disclosed that most of these officers had not made any sustained or systematic attempt to compel their subordinate officers to assume the responsibilities attached to their offices. The avoid- .

Responsibilities not assumed by subordinate officers.

Serious defect in management.

Delegated powers overriden.

ance of responsibility by heads of branches was said to be most pronounced. The Deputy Postmasters-General are occupied too much with the minutire of administration at the expense of general control, which is clearly incompatible with effective management.

. . 35. There was no evidence that the Deputy Postmasters-General VISited suburban and country post-offices, except to some extent in the less populous States. . Your Commissioners consider this to be a serious omi&Sion, tending to prevent the establishment of sound and progressive management.

36. There was also evidence of want of definite support of the Deputy Postmasters-General by the Central Executive. When the Deputy Postmasters-General exercised delegated powers they were, iu certain

instances, overridden by the Ministerial Head. This undermined the status of the Deputy Postmasters-General with the public and with their staffs. This practice is partly answerable for the flooding of the Centml Executive with petty and ·unnecessary details, the settlement of whi1·h

il!volves needless expense in time and labour. It is also inimical to the Deputy Postmasters'-General assumption and exercise of the higher functions of control and administration.

15

3 7. It was alleged that the general tone of the instructions ilSSHPd by the Central Executive had degraded the Deputy Postmasters-Getwral, and that some had contemplated . retirement on that accon11t. This is not so evident at present as it was formerly. There is now evidenn· of n

desire by the Centrnl Executive to moderate the tone of its instnwtin11s, which has tended to establish more harmonious relations between the Central Executive and the Deputy Postmasters-General.

Tone of Instructions Issued by Central Executive.

38. The practice of relieving Deputy hy ('bief Ohief Oleru u

Clerk,s led to the assumption by the latter that they are eut.itlt•d

to promotion to the office of Deputy, Postmaster-General. Many of tht• GeneuJ. officers now occupying positions as Chief Clerks in the States poss1·ss merely clerical knowledge, and that principally confined to the He:tu Offie<·. They have only a rudimentary acquaintance with the vital matters of

postal administration. This inefficiency is of the most serious Hlomeut. Your Commissioners consider that the most efficient officers would lw obtained if the Deputy Postmasters-General were recruited from tl1e ranks of the inspectors, as the inspectors are conversant with the details of g<·m·ra I management of offices within the States. This opinion is conditional to inspectors being of the standard already referred to in this Report.

39. Your Commissioners consider that the very important. fuuetious which the Deputy Postmasters-General should exercise (functions whi<'h will be more fully detailed in this Report) should command higher than those now paid, which are not sufficient inducement to secure the elass

of officer with the capacity necessary to ·assume with satisfaction to tlu• public and· the Department the responsibilities of local management and control.

DEFECTS INHERENT IN THE SYSTEM oF CoNTROL.

Ministerial Control.

Deputy PostDlAaten­ Gen•ral should be recruited from Inspectors.

Salaries of Deputy Postmasten· General.

40. In the administration of the Commonwealth Post and '! elegraph Continuity of Department it is desirable, in the interests of the public, that continuity policy. of policy .should be maintained. The Central Executive attempted to formulate a definite policy; but it was alleged that a continuous policy

could not be exercised by the Department because of its incompatibility with frequent changes of the Ministerial Head. There have been nine Post­ masters-General since the inauguration of the Commonwealth, and the evidence discloses that most of the Ministerial Heads endeavoured to

effect signal alterations of policy. Ministers are apparently anxious to signalize their occupancy of oftice by some new and distinct act of adminis-tration; but due regard does not appear to have been paid to the effect of such actions. The baneful influence of ill-considered interference in Baneful inftuence

by the Ministerial Head is strikingly illustrate? . by the

alteratiOn of the telephone rates in February, 1907, by the Mm1ster of the time, in opposition to the ad vice of his administrative and technical officers. The disregard of the effects of such drastic innovations is detri-mental to the carrying out of a continuous and definite policy, even it

formulated by the Central Executive. There also seems to have been a strong inclination on the part of Postmasters-General to give too much considera-tion to, and interfere with, details, instead of confining themselves to the Interfering with broader principles of administl·ation. Your Commissioners consider that it details.

Post and Telegraph Department not to be used for

political purposes.

Expenditure vested in independent authority.

Control of staff by Commonwealth Public Service Commissioner.

Divided control.

Multiplicity of control hampers administration.

Condition of services when transferred.

18

is impossible for a Minister to obtain a reasonable grasp of the affairs of a Department of such magnitude as the Post and Telegraph Department, even with a longer tenure of office than has hitherto been the case.

Delavs in the execution of administrative duties are also occasioned l;y enforced absence of the Minister from his De!1artment on political business. The Post and Telegraph Department is an institution daily affecting almost every individual in the community to a greater extent than any other Government Department in the Commonwealth, as it provides publie utilities of paramount importance. It supplies services to the public, the control of which should be independent of political exigencies.

Multiplicity of Control.

41. Your Commissioners strongly disapprove of a system which permitt> expenditure on account of · buildings, repairs, and maintenance being vested in the independent authority of the Department of Home Aftitirs, while permitting the much greater expenditure on account of telegraphs and telephones to be controlled by the Post and Telegraph Department. The practice of obtaining the sanction of another Common­

wealth Department in regard to minor expenditure is absurd. This system involves unnecessary labour and circumlocution.

42. Your Commissioners disapprove of the system under which staff matters affecting the Department are placed under the independent authority of the Commonwealth Public Service Commissioner, for the following reasons:-

( 1) Such a system makes for divided control, which is undesirable and unnecessary.

(2) It gives the Commonwealth Public Service Commissioner power to refuse staff which the Post and Telegraph Department considers to be necessary, whilst no responsibility for the efficiency of the services is incurred with such power.

( 3) The responsible heads of the Post and Telegraph Dep:utment, acting as a Staff Committee, would be, in the opinion of your Commissioners, in a better position to judge the qualifications of their officers than any outside authority.

43. Such divided control, combined with the fact thatthe Department is entirely dependent on the Treasurer for funds for carrying on its services, renders efficient management extremely difficult, if not altogether irnpm;&ble, since independent authorities are vested with power without responsihility,

while the Post and Telegraph Department is divested of power and,. at the same time, charged with responsibility. Power and responsibility should be combined in the one authority. It was ft·equently admitted that the Central Executive had been seriously hampered b; this multiplicity of eontro1.

Ine.fficienc,y of the Services.

44. The evidence clearly discloses that the Depariment did not keep equipment up to requirements, this being common to all the with. Che exception of South Australia, where the telegraph and telephone line& were said to be in good order. With the aoove-mentioued. the condition of the services when handed over to the Common­

wealth wa. s far from satisfactory. This· defect should have been l'ectified in the early days of Commonwealth controL Since the: time referred to, the Central Executive has been continuously forced to .neglect. new and prevented from placing maintenance on an effective· basis,. mainly in

connexion with telegraph and telephone lines a.nd switchooa.rds. Thi&JO pha:se of the investigation will he more fully dealt with u.nder- the ooa,ding of " Finance."

· 4fS. The starved condition of the services is largely answerable f(u· the. imperfect work.ing of the and

Evidence was rece1ved that · the pos1t1on was gettmg worse, owmg to the increased volume of business making the adverse conditions uwre accentuated, but recent action is req1edying that condition tt) some extent.

Poaitloo rettlu1 WOPH.

46. The reason assigned by all the officials for the failure to plaee tlu• Alleged want ot services in proper working was want of sufficient funds. There f®dt.

evidence that tile in lHO l endeavoured, through the Treasurer

of the tinte, to obtain the I'ecessary fund$ to place the services in an efficient condition by resorting to a loan, but Parliament refused to sanction tltis proposal. The CUl'tailnJtmt of fu.nds at that period was apparently the result Ifl'ect or of the to keep the cost of Federation within a limit of £300,000 por of

annum. The adoption of that couf$e, in spite of tl1e demands of the Post and Telegl'ttph Daparttnen.t, in the: opinion of your Commissionl•rs, evidene.(l thllt the system of mamtgement is faulty, in tha,t it permittod thl' Treasurer to assume oontrol of se:rvices for whose efficiency he

not responsible. This of the position is emphasized by the tad th6Lt the Treasurer was a.t that tinHJ Qf th., neeessities of tho Po.-t nnJ

Telegraph Depa1•ttnent, notwithstttndil'lg which he returned to the Statu• Govermnents the whole <>f the surplua reven\\f,l beyond their constitu tiona! p1·opo:rtion. In this connex.ion it would appear that the Postruastol'· General was too in respect to a.ctions of the Treasul't!l'.

The Central Executive, though to the Postmaster-General

the omission to supply sufficient ahould have more Postmaster· Gener&l too urged upon him the ·results that would occur from a contirmation of the complaiaant. starvation poli"ey. This. matter will be further dea,lt with in the finnucil'l section of R0port. Disabilities qf

4'. A distinct weakness in the systern of control, made evident early in the inquiryt W&.S that a somewhat rigid policy of centralization existed. This was more. noticeable in the early stages of Commonwealth control. Although considerable powers had been delegated to the Deputy Post­

masters--General1 apparently for the purpose of avoiding over-centralization, · the Central Executive to a great extent abrogated- those powers by reviewing matters decided by the Deputies under their delegated authority. Jt mu-st be recognised, however, that · a full measure of decentralization is

unattainable under direct Ministerial control when the Minister

permits po?itical pressure to influence him in reviewing actions taken by the Deputy Postmasters-General under their delegated powers. It was alleged that when powers to deal with certain local matters had been delegated to thf' t}ltief t}fficers in each State, and were exercised by those officers, friction

ensued with the Central Executive. The evidence disclosed the fact that, in eases where the chief officers were in close proximity to the Central Executive, strictures were not passed by them on that authority. The inference is that there is a tendencv in such eases to submit more or lesi:l

intricate matters to the Central "ExeClitive for decision, although they could have been decided by the Deputy Postmaster-General.

48. Your the practice whereby Deputy

are by the and the

Perm"ne.llt Head t.o l'eportl instead of being to take on

matters which come within the of their delegated This practice

makes for delay, involves expensive and circumlocutory methods, and has a effect ou. the Deputy Postmasters-General in that it tends to

tlnde.rmine This practice has arisen to some extent through

political being unaware ofth.e deleg;tted of the Deputy

Postmasters·G eneral, and consequently d1rcctly approaclnng the Central F.Sii64.

Delegat41d powers abrogated.

Fnot!onyith CQtrrJ Executive.

Reports instea.d of action.

17

18

Members of Parliament not aware of delegated powers.

Executive. Probably had the Central Executive supplied Members of Parliament with a schedule of the delegated powers, and intimated that first reference should be ma,de to the Chief Officer in the State, it might have greatly minimized the dissatisfaction of the Deputy Postmasters­

General. the Central Executive, and might have lessened the depart­ mental frwtwn complained of by those officers.

General Conclusions.

Change of control necessary. 49 In view of the grave defects outlined, it is apparent that a

continuance of such a state of affairs as exists in the Department

ahsolutely prohibits it trom being controlled on a sound economic or progressive basis. This, together with the Department's neglect to institute reforms in the intP-rests of the public, compels your Commissioners to recommend an immediate change in the system of contrql. The

Post and Telegraph Department should be more self-contained and the management should be independent of direct Ministerial interference in matters of administration. The Minister should be responsible for policy only, and the Central Executive made directly responsible to Parliament. The Estimates of Expenditure should not be subject

to reduction at the will of the Treasurer, but by Parliament alone,

the Government of the day taking the responsibility of submitting to Parliament the Estimates as fraiD;ed by the Central Executive of the Department. It follows from this that the Central Executive must be strong, and vested with extensive powers, a subject which will be dealt with in this Report under" Proposed Scheme of Control." In addition the Department should have complete control of its staff apart from the Commonwealth Public Service Commissioner, and the responsibility for carrying out works and buildings should be removed from the Depart­ ment of Home Affairs and vested in the Post and ,Telegraph Department. .

Department should be self­ contained.

Central Executive must be strong.

Continuance of existing system, with additions,

ALTERNATIVE ScHEMES SuGGESTED BY WITNESSES.

50. During- the course of their investigation several schemes of management uwere suggested, including a continuance of the existing system the present powers of Deputy Postmasters-General increased and made statutory, and with largely increased appropriations. Many officials exhibited a decided to condemn the system unde·r

· which they were working, but they failed toadvance any convincing reasons for its continuance. Beyond the request for additional funds, there was a lack of initiative in most witnesses for overcoming the obvious defects in the existing system. In the opiuion of your Commissioners, this attitude discloses a disposition of indifference to evolving schemes making for the future welfare of the Department.

Proposal that ·

General Manager 51. Two propositions to replace the present system of management were offered, viz. (I) a General Manager with a Ministerial Head, and (2) an

system. independent Board of Commissioners. Your Commissioners do not

Objection of officials to independent Board.

approve of. the first proposition, as it practically means a repetition of the present:system, supplanting the position of Secretary by that of General Manager and perpetuating the office of Commonwealth Public Service Commissioner. It would permit Ministerial eontrol to overrule the General Manager, as far as general administration is concerned. Further, . this proposal must be condemned because the Commonwealth Post and · Telegraph Department is of such magnitude that it cannot be effectively

controlled and supervised by one individual The designation. "General .J1anager" instead of "Secretary" is merely a matter of terminology, unless theGeneral Manager be equipped with full executive authority.

· 52. The fear was generally evinced by officials that if the Department' were administered by an independent Board of Management the staff would suffer in wages and status. This may be interpreted as meaning

19

that these officials were apparently more concerned ahout their own pers< nal welfare than the welfare and conv cnience of the public. This attitude ma ,. hP accountable for the paucity of reforms suggested by these witnesses. ·

53. The earlier portion of this Report has amply demonstrated that the present system is most inefficient, and your Commissioners are compclh•d to recommend a new system of management.

Present syatem inetllcient.

54. Your Commissioners believe that in the conduct of the serviees of Public intoreat the Dep:ntment the public interests should be paramount. The g-enpral paramount. object directing the operations of the llepartment should be to provid<• th<· best and most effective service in all its branches, subject to the eomlitiun

that a high class service should be met with an equitable charge for the services rendered.

PRoPOSED ScHEME oF CoNTROL.

55. Your Commissioners consider that in order to insure sound and Three dlrectora economical administration a basic change is essential, and recommend that required . . a Board of Management, consisting of three directors, namely, a Genernl Manager (Chairman), a Postal Director, and a Telegraph and Telephone

Director, be appointed to control the Department. From a careful consiclern­ tion of the requirements of the Department, it is deemed advisable to allot the functions and duties of the respective directors as follows :-( 1) The General Manager should be the Chairman of the Roard of

Management, and should be immediately responsible for finance and general administration.

(2) The Postal Director should he responsible for the management and general supervision of the mail services.

(3) The Telegraph and Telephone Director should be responsible fot· construction and maintenancf>..

56. Your CommiRsioners are strongly of the opinion, from the evidence Cost of Board given and from personal inspection of the various branches of the Depart- of lTanagement. ment, that the Board of Management recommended would effect great savings within a short period, in addition to the large savin!!S which should result from the removal of staff matters from the control of the Commonwealth

Public Service Commissioner. Evidence was given to the effect that the position of Chairman of the Board of Management would be worth a salary least £2,000 per annum. Your Commissioners are not prepared to recommend the amount of salary necessary, but consider that, in order to

secure suitable members for the Board of Management, it is imperative that attractive salaries be provided, as the service requires ·the highest of

d d f d · · · b'l' · bl Tl 1 adm1mstrative stan ar o a rmmstratiVe a 1 1ty procura . e. 1e constant concern am ability needed. main interest of the Board of Management would be to anticipate publie requirements by continuous assimilation of all the improved methods adopted in the post · and telegraph world, and it would, in order to

populai'ize its own system, be constantly considering the public welfare. Such a Board of Management would doubtless endeavour to establish the Post and Telegraphic Service on a self-supporting basis, without undue sacrifice of facilities to the public. Once effective management is

established, reforms in the Post and Telegraph Department will inevitably follow.

57. lJ nder a Boaxd of Management as recommended, the position of the Ministerial Head would be that of the connectin2: link between the Parli:unent and the Dep:wttnent. The Minister would retain eomplete B 2

PoAition of Ministerial HeRd under Board of

Management.

19

Report and balance-sheet to be supplied.

20

control of matters of poliey as laid down by Parliament. Such Board of :Management should equip Parliament through the Postmaster-General witl1 reliable advice on the financial condition of the services, which would serve as a guide to Parliament and the Postmaster-General, and enable then1 to avoid alterations of a drastic character without the fullest consideration of aJl their bearings ou vital issues. The Board of Manage­ ment should furnish to Parliament an annual report covering the past year's transactions, ineluding a balance-sheet disclosing the financial position of the several branches of· the Department. Your Commissioners contend that without such guidance Parliament is unable to appreciate the necessities of this enormous and ever-expanding Department.

Removal of staff matters from Commonwealth Public Service Commissioner.

58. The establishment of a Board of Management as recommended would necessitate special legislation for the employes of the Depart­ ment.

Removal of works from Home Affairs Department.

Inspection by Board of Management.

Dissatisfaction through want of power.

Deputy Postmasters­ General to possess knowledge of telegraphy and telephony.

:Elxtensions of delel!'ate.d powers

59. A Board of Management would he. better able to gauge the req of the in connex_ion with build.ings, repairs, &c.,

than au outside authonty. Th1s would obviate the necessity for the control of works by the Department of Home Affairs, and would make for economy and despatch.

60. A most dnty of the members of the Board of Manage·

ment if appointed wovld be to t.nake official visits to the to ascertain if the Deputy Postmasters-General had correctly interpreted their policy, and for the further purpose of obtaining ;1 personal knowledge of local conditions to, assist them in their managerial functions.

PosiTION OF DEPUTY .Pos'rMAs'r:E:Rs-GEN:tl:RAL UNDER PRoPOSED Bo4RD oF

MANAGEME:NT.

61. When a definite system of control and management is formulated by the Board of Management, the Deputy Postmasters-General should be vested with full responsibility to manage their branches in accordance with that system. The fact of the Deputy Postmasters-Genern] not having· been furuished with such power is answerable to a considerable degree for the delays occasioned by over centralization, for public dissatisfaction, and for the discontent of the responsible State officers. Vesting the responsibility of local managewep.t in the Deputy Postmasters-General presupposes that the officials holding those positions will possess the requisite administrative ability to enable then1 ·to free themselves from detail work, and to undertake general supervision of the services under their control. ·

· f) 2. Your CommiRsioners are of the opinion that it is to the interest of the service. for the Deputy Postmaste1·s-General to possess a knowledge of tel egraphy and telephony. 1'his would be assurl'd if these officials were appointed from the ranks. of inspectors of the standard prescribed in this Report.

6 3. Y nur cannot r.ecommend the requests by

.ee.rtain Deputy Postma.sters·General that their present administrative p()Wers be rnade statutory, because this would result in conflict with the Board of Management, but they recommend an extension of delegated powers, such as greater powe1· of expenditm·e, acceptance of tenders other than 'the lowest, tenders allowing preference, and all matters of local concern

not invading policy.

21

OBJECTIONS ADVANCgD BY WITNESSES AGAINRT INDEPENDENT

64. Your Commissioners submit the principal objections advancPd during the course of the inquiry against independent manngement. objections are categorically ·arranged, and in each case reasons why they cannot be accepted are set out ..

(1) No Post and Telegraph DepaTtment in the world is unrlr1' tlu' control of growing tendency in pro­

gressive countries is to place the administration of governmental services as are rendered to the public in return for specific payments in charge of no11-political Boards. Tl1t> ·introduction of such systems of 01anagement is the outeonw

of the desire for the application of more busineHs-like nnd economical administtation in the public interest. This ohjt't·t would be attained by the appointment of the proposed B<.mnl of Management.

(2)

(3)

(4)

The Post and Telet(raph Depattment is not a tmdinf( y our Commissioners agree with this contention when thP words "trading concern " are read to mean a mereantilt• establishment conducted for ptofit ; but they consider that

a quick and safe conduct of mail matter, and c•Hiciently managed telegraphic and telephonic services are In the management of such services business-like metl10ds must be adopted to accomplish- these results. Tlw l'oHt

and Telegraph Department is not a purely eommereial pro­ nor is it a taxing Department, but every effort

should be made to conduct' the services otl businc>sH lint's. The proposed Evartl of Management would, undoubtedly, tnake the necessary provision to achieve this result.

The Post cmd Telegraph Dt>partrnent is a monopolq.-Yom· Commissioners admit the monopolistic nature of the Common-wealth Post and Telegraph Department, but realize the grave danger of its monopolit>tic characteristics making for Depart­

mental unconcern in formulating and continuing a progreHsivC' policy of management, This is one of the main reasons why . the establishment of a Board of Management, whose imperative duty it would be to study public requirements, has heen

recommended.

Management by an independent Board would tend to greater centralization.-The unsatisfactory experience of centraliza­ tion under the present system . of control, as disclosed during the course of this inquiry, ab11olutely precludes

the possibility of the adoption of such a policy by a

Board of Management of the nature of that prescribed in this Report.

Answers to objections to Board of Management

t • '

Business-like methods must be adopted.

Possible monopolistic dangers.

Present centralization unsatisfactory.

(5) If Commissioners were appointed, the on(y difference would be three administrators instead of one.-The Commonwealth Post and Telegraph Department is too large for one man to effectively manage, and also personally inspect the State Depa.rtment

brarlches. The proposed Board of Management would make too large for one .c ft' t" · d · · · h b l d · . h man to manage.

10r e ec IVe a tmmstrat10n, as as een a rea y set out m t e

earlier portion of this The present system of

· management makes this essential unattainable.

(6) The Commonwealth Post and Department is onh; in

its irifimcy, and the presrmt SIJStem has not had a fair trial.­ Your Commissioners make ample allowance for this but fail to detect from the evidence a tendencv to a robust y development.

21

Country protected.

Department fosters settlement.

Chief Inspector required.

Sta.:ff Committees.

Staff safeguarded.

22

( 7) Counl?:_tj f aciLities wo,tfd ue CUd"tailed by a Borzrd rif Afanage­ lll t: llt.--;\ltbough this objection was advanced by many of the departmental offi cers against a change of system, the possibility of such a result under the proposed Board of Management is not tangible to your Commissioners. The formulation of the policy governing these facilities would be within the province

of Parliament. A distinctive feature of the Department is that its services are often the only means of conveying the necessaries of life to outlying districts to those who are performing the sturdy work of pioneering and developing the country. The Department assists in a marked degree in

retaining and fostering settlement by bringing the people in outlying districts of Australia into closer touch with civiliza­ tion. From evidence given in the various States it is

indisputable that the Post and Telegraph Department will have to continue and extend this carrying function, which is a most important factor in the development of the outlying districts of Australia. The parcel post, and the value payable parcel

post, have grown to such great proportions and are

expanding at such a rapid rate that the services will require the careful and constant attention of the Board of Manage­ ment, in order to secure an effective, economical, and speedy means of transit. Your Commissioners have fully realized the imrortance of the question of country facilities, and will deal more explicitly with it under subsequent sections of this Neport. ·

( 8) If Commissioners were appointed to control the Post and Telegraph Department it wouLd be necessary to abolish tl1e Commonwealth Public Service Commissioner.-The removal of staff .matters from the control of the Commonwealth

Public Service Commissioner has been recommended in that section of this Report dealing with the proposed scheme of management. In connexion with the proposed Board of Management, provision should be made for the

appointment of a Chief Inspector, attached to the Central Executive, who, in addition to his other duties, would inquire into appointments, promotions, and transfers as recommended bv the Staff Committee . in each State. · These State Staff would take the place of the Service

Inspectors. Under this scheme of staff control the Chief Inspector would hold the power of review over the recom­ mendations of the State Staff Committees, for the purpose of advising the Board of Management. The adoption of this scheme would place the Board of Management in ;:t strong position to adjudicate on staff matters. The Central

.Executive has very recently recognised the necessity of possessing a more intimate knowledge . of the staff require­ ments of the States, and appointed· a staff committee composed of State Senior Inspectors for that purpose,

but under the present system reference must be made to the Commonwealth Public Service Commissioner, who has the power of veto. (9) Some officers representing Associations within the Service considered

that the Commonwealth Public' Service Commissioner safeguards their interests, and maintained that independent Commissioners would be directed by strictly commercial principles, and that the officers' status would be reduced.

Your Commissioners consider that th ose mernb ers of the staff who do their wor k thoroughly need not feat· unjust treat­ ment, as a competent Board of Management would dispense with promotion by seniority , and advancement would depend

upon merit. In obtaining the requisite data to enable the Board of Management to act judicially, it would have the assi.--tan('l' of competent State Staff Committees, composed of otti('ials possessing both technical knowl edge and experience of postal affairs, which would . insure equitable treatment to

members of the Service. It is obvious that the existin!.!,· practice of basing promotion on seniority and merit does not result in obtaining the most efficient set·viee. Tilt' ·adoption of the system proposed would be an incentivl' _ to the staff .to aspire to a higher standard of efficieucy.

The only way to obtain a properly efficient and progressin• Department is by recognition of merit and capacity fi•r development. Recommendations on all vital matters pre­ sented by the Associations during the course of the inquiry

will made and will be set out under "Organization."

EcoNoMIEs TO BE EFFECTED BY IMPROVED MANAGEMENT.

65. Without restricting facilities to public or inflicting hardship on the Service, substantial economies are possible of attainment hy nu alert management. The management, under the new system recommended in this Report, would speedily recognise this, and would prohably l'ftcd other economies far-reaching character.

The following is a list of more important economies that wonhl result from the.scheme of management as proposed:-:-(a)

(b)

RemO'lJal oj stafj matters from the control of the Common­ wealth Public SeTvice Commissione1·.-This would result in an approximate saving of at ]east £10,000 per annum in the cost of administration of staff matters.

Proper Decentmlization.-This would relieve the Central Office of much detail work, as well as of the reviewing· of work executed by the Deputy Postmasters-General, thus tending to destroy the clumsy, cumbersome, and

circumlocutory methods now in vogue.

(c) Direct control of works by Commonwealth Post and Tele­ graph Depm·tment._:_ This system would obviate duplica­ tion d administration .with the Home Affairs Department.

(d)

(e)

P1·ovision of the fullest facilities for officers to hecome versed in modern methods.-Improved and economical methods would result if the Chief Electrical Engineer, and other leading officers, were enabled to become

personally acquainted with the advances made in tele­ graphy, telephony, and postal matters in other eountries.

Delegation of proper duties to Electrical En{fineers.--By relieving these officers of detail administrntive work and affording them full opportunities to attend to their more important duties considerable economies would he

effected.

(.f) Tmining nf

(g) Efficient of a higher stanuard wou1<1

be able to effe ct considerable economies. It is this hraneh of the Service that should be abl e to detect the nt'<:essit.y for, and develop, methods of economy in organization.

Recognition or merit.

23

No reliable data. obtainable.

Return furnished.

Return not of much value.

Proper charges against capital not settled.

on

salaries, not allocated,

Crudest of systems.

Annual statements. useless.

24

(h) Tempora1:1J Officers.-The general employment of this class of official is a most expensive practice. Considerable savings could be effected by the appointment of per­ manent officers when the work is of a. permanent nature.

( i) Uniformity of Accounts and a proper sZJstem rif Bookkeeping. -Such a system, in addition to making for efficiency and simplification, would enable the l>epartment to exercise better control of its finances. This would obviously result in economy, Passed 18th Jun(}, 1910,

FINANCE.

FINANCIAL PosiTION OF THE DEPARTMENT.

6 6. Your Commissioners expPrienced considerable difficulty in procur­ ing satisfactory and definite information in regard to the financial position of the Commonwealth Post and Telegraph Department. This was evident, not only in connexion with the Central Executive, hut was further emphasized when close examination was made of the principal officials in the States. These officials stated that they were unable to provide the requisite information because the State Post and Telegraph Departments did not issue balance-sheets. No attetnpt in this direction has been made under Commonwealth control until quite recently. This inability to supply definite financial information is a severe reflection on the Department for not providing that primary essential of effective proper system

of accounts. ·

6 7. In their endeavours to obtain the particulars your

Commissioners . requested ·the Department to furnish certain returns to enable them to draft an approximate balance-sheet. The Department has complied with the various requests made in this direction, and, in addition, furnished a return (Parliamentary Paper, No. 41, 1909), prepared by order of Parliament, containing cettaill detailed information. This return was confined to the year 1907, but, beyond conveying a general Impression that the Postal Branch of the Department was a profitable section, and that losses were incurted in the telegraph and telephone services, it is not of much value in disclosing, even approximately, the financial position of the Department.

68. There was a great diversity of opinion among leading officials as to the proper debits against capital for interest, depreciation; and sinking fund. Had a capital account been established the Department would have been compelled to come to a· decision as to the correct charges to be so debited.

6 9. It was discovered that a basis had not been fixed for the

allocation of expenditure on salaries, maintenance, and contingencies to the various branches of the Department, and also that little reliance could be placed on the allotment of general expenditure as between new works and maintenance. The proper allocation of the above-mentioned expenditure is a rudimentary essential of accountancy,· and 'its absence in such a great expending Department discloses a deplorable state of affairs, the existence of the crudest of systems, and most irresponsible management.

'70. The Department furnishes annual statements showing only revenue receipts from its chief branches, and the total expenditute, including new works, for all branches of the service. Such statements are absolutely useless for the purpose of supplying the requisite information to determine the filll'l.ncial position of its several branches,

71. At the initial stages of the tt'ansfer of the State Post aJHl

Telegraph Departrpents, a complete review of the whole :financial position should have been insisted upon.. Such action should have been taken hef(n·v affecting reductions in rates,. and granting concessions, involving

loss to the Department. Had the necessary action referred to been takPn hy the Central Executive in the early stages of Federal control, the ParlianH·nt and the Postmaster-General would have been furnished with a harometet· by,means of which accurate readings could have been obtained as to tile

financial position of the services. This would have warned the Centml Executive against allowing the Department to drift into the unsound financial position which it now occupies. Your Commissioners consider that the existing condition of affairs is indefensible, a.nd demands the imllledinh•

introduction of a proper system of keeping accounts of departmental expenditure .. All expenditure should be apportioned between the Telegraphic, and Telephonic services. This is necessary to enahll' tltt• Department to prepare an annual balance-sheet for public information and for the guidance of Parliament. ·

72. Owing to these disabilities, your Commissioners arc unable to present a balance-sheet of the various branches of the Post aiHl TelPgr:tph Department, but, realizing the vital importance of this feature of tlwit· inquiry, they have endeavoured to draft from the information elicited an approximate financial statement, showing the position of the Department at

the close of the financial year the last year for which wer<·

available, .

Approximate Statement of the Financial Position cif the Post and Telegraph Department. 7 3. So far as could be ascertained, the capital account of the Department amounted, on 1st July, 190H, to £7,595,691, which represents the valtw of the post and telegraph properties transferred to the Commonwealth by tl1e

States Governtnents, and the expenditure ou new works and buildings from the inception of the Commonwealth to that date. The following tahle the yearly increase of the capital account.:-1st March, 1901 ... £6,253,88k (Accepted value of transferrerl

1st July, 1902 6,291,036 propE!rtles).

1st July, 1903 6,426,735

1st July, 1904 6,614,544

1st July, 1905 6,746,373

1st July, 1906 6,892,948

1st July, 1907 7,16R,685

1st July, 1908 7,595,691

the above table (which your Commissioners are obliged

to accept) the amount added to capital account since July, 1901, viz., £1,341,803,ean only be as approxi!llately correct, because properly cha¥geable to capital have been mcluded under the headmg of ordmary expenditure, and, in the . absence of prope-r bookkeeping, full reliance cannot be placed 'on the allotment of expendtture between new

works and maintenance.)

I( 4. Since Federation the funds required for expenditure on capital have been obtained from revenue. Prior to Federation such funds were provided from both loan and revenue, but to what respective extent cannot now be asce!tained. The accounts of revenue and expenditure as kept at present

disclosed the position to be as follows :-Total Revenue from lst March, 1901, to 30th ,Tune, 1909 ... .£23,323,453 Expenditure-Ordinary 22,068,268

Works and Buildings I ,882,987

Total £23,951,255

Excess of Expenqiture over Revenue £627,802

Action imperative.

Fl.nanct&l barometer wanted.

Expenditure to be properly apportioned.

Approximate 1lnancla.l statement.

Capital account.

Revenue and expenditure statement.

25

Statement valueless.

28

Your Commissioners consider the above statemf'nt to be absolutely useless, for the following reasons:-( l) Capital expenditure is included as a whole ·in the expenditure, whereas proper charges llgainst capital account only should

have been included. (2) Provision is not · made for interest, and depreciation or

sinking fund, on £6,253,888-the accepted value of the properties transferred by the States Post and Telegraph Departments to the Commonwealth.

Financial position approximately determined.

75. (l) Separating capital expenditure from ordinary expenditure (which covers salaries and other working expenses), and allowing interest on capital at 3t per cent., and sinking fund at 3! per cent. (to redeem capital in approximately 20 years), the following result ensues :-

Estimated loss over 2% mUlton pounds.

Financial provision inadequate.

Total net Revenue, lst March, 1901, to 30th June, 1909 £23,323,453 Expenditure­ Ordinary Interest on capital

Sinking Fund ...

Deficit for Sf years

22,068,268 1,99.5,570 1,982,853

£26,046,691

... £2,723,238

(:l) Allowing interest as above and depreciation (including sites) at 5 per cent. in lieu of sinking fund, the following figures are obtained :-Net Revenue .£23,323,453

Expenditure­ Ordinary Interest on capital Depreciation

Deficit for 81 y.ears

22,068,268 1,707,637

.£26,064,069

£2,740,616

(3) Allowing same charges as in Table (2) above, but excluding sites fr9m depreciation :-Net Revenue Expen(liture­

Ordinnry Expenditure Interest on capital Depreciation

Deficit for 8J years

£23,323,453

22,068,268 I, 707,637 1,880,291

£25,656,196

£2,332,:43

The revenue and expenditure figures have been obtained from the Auditor-General's Financial Statements.

76. Owing to particulars not 'being available for the current financial year ( 190 9- I 0 ), your Commissioners were compelled to confine their deduc­ tions to the period ended 30th June, 1909.

77. Accepting the most liberal reading of the above three tables, the estimated loss on the transactions of the Department from the inception of the Commonwealth to 30th June, 1909, amounted to at least £2,300,000. In addition to this inordinate loss, both the capital and ordinary expendi­ ture of the Department since Federation has, according to evidence, not been sufficient to meet requirements. This omission to make adequate provision for funds has resulted in the necessity for the expenditure in the immediate future of a considerable sum of money in excess of normal requirements. If this necessary provision had been made as requirements demanded, the enormous deficit of £2.300,000 would have been still further swollen by the additional outlay. If this outlay had been incurred there would naturally have been an increase in the revenue, hut such increase would not have appreciably :tltered the result.

27

78. The deficit, as set out in the above tables, umnistakably inlli<'att•s an utter d:sregard uf the correct relationship whi ch should exist bd\\"('('11 revenue and expelllliture. One of the principal causes of the detieit was the granting of concessions to the public vvithout apparent considNatiou

of the financial position, their ultimate cost, and their collective on the finances.

79. The following table indicates the estimated loss to 30th June, 180!l, on the more important concessions :-- ·

EsTIMATED ToTAL Loss T O 30TH JuNrc, 190) , ON CoNCESSION s MAD!<: Si:'\CE F ED ERATION.

Reduction of telegraph rates, 1st November, 1902 ... £-180,000

Adoption of uniform termin al and transit charges on inter­ national telegrams, 1st June, 1902 Abolition of cable charge on Inter-State telegrams from 1st October, 1906, to 30th April, 1909

Reduction of telephone rates, 1st February, 1907 Abolition of charges previously made on trunk lines to Central Exchange,.;, 22nd July, 1902 ... Reduction in telephone trunk line charges, 1st F ebruary, 1907,

and 13th September, 1907 Relluction of public telephone charges, 1s t February, 1907 .. .

Heduetion in pos tage rates to United Kingdom and British Possessions, 1st July, J 905 Reduction of charges, Inter-State mon ey orders, l st February, 1906 Reduction of private box and bag fees, 1st June, 1907

Abolition of Inter-State poundage on postal notes, 1st July, 1902 -

92,000

25,000 160,000

8,;)00 ;),500

:w,ooo

ta,5oo ;),200

3,500

Total £863,700

. 80. Other contributing causes of the deficit were. alleged to be-( 1) Non-pa: IJing Mail Services to Countn1 Districts.-At the inception of the Commonwealth 1,42 : ·> services were taken over, involving a loss (compiled on latest information, 1908)

of £57,000 per annum. Two hundred and fifty new services have been added since Federation, the loss on which was estimated at £6,900 for the year l!J08. Your Commissioners are unable to state the total loss since Federation on these

services, as the necessary particulars are not obtainable.

(2) on Over-sea Mail principall,y the Vancouver and

Orient Mail Services.--The spproximate loss on these two services is estimated to be-1901, to 31st Dec., 1909)

Orient Mail Service (l5ti;J. April, 1905, to 31 st Dec., 1909) £156,948 1:19,930

£296,878

The amounts involved in supplying the above-mentioned non-paying services account for a portion of the disparity between revenue and expenditure. The information {umished would make 'it appear eertain that the postaL sect ion of the Department returns a p1;otit as a whole,

but the extent of such profit was not ascertainable. In view of this

fact, th e postal section of the Department cannot be beld responsible for the deficit, since if these non-paying services had not' been granted the result would simply !tav e been a further inflation of the profit on the postal section.

. '

Utter disreprd of financ11ll relat1o.ablp.

Louea 1D conceutona.

27

Non-paJing man services.

Loss, .£296,878.

28

(3) Salaries and Wages Account.

The following tables show the respective increase in revenue as compared with ordinary expenditure, and also a comparison of the percentage increase in revenue with the percentage increase in ordinary expenditure from the year to the year :-

TABLES.

( 1) ExCESS OF ORDINARY EXPENDITURE OVER HE VENUE, and vice versfl for the years 1901-2 to 1908-9.

1901-2. Excess of Ordinary Expenditure over Revenue 1902-3. Excess of Ordinary Expenditure over Revenue 1903-4. Excess of Revenue over Ordinary Expenditure 1904-5. Excess of Revenue over Ordinary Expenditure 1905-6. Excess of Revenue over Ordinar.v Expenditure 1906-7. Excess of Revenue o•er Ordinary Expenditure 1907-8. Excess of Revenue over Ordinary Expenditure 1908-9. Excess of Revenue over Ordinary Expenditure

£558 64,714 186,259 438,212 381,261 339,558

£57,784 28,417

£1,410,562 £86,201

Total Excess of ReYenue over Ordinary Expenditure, 1901-2 to 1908-9 ... £1,324,361

(2) Cor.IPARISON OF THE PERCENTAGE INCREASE IN REVENUE with the Percentage Increase in Ordinary Expenditure from to 1908-9.

Year.

PercenJage increase 1902-3 over 1901-2 Percentage increase 1903-4 over 1902-3 Percentage increase 1904-5 over 1903-4 Percentage increase 1905-6 over 1904-5 Percentage illcrease over

Percentage increase 1907-8 over 1906-7 Percentage increase 1908-9 over 1907-8

Percentage increase 1908-9 over 1901-2

Revenue.

l · 3 per cent.

4 · 4 per cent. 4 · 8 per cent.

7 · 3 per cent. I 0 · 7 per c.ent. 5 · 5 per cent. 3 · 3 per cent.

43 · 7 per cent.

Ordinary Expenditure. 0 ·I per cent. 3 ·I per cent. 2 · 3 per cent. 2 · 7 per cent. l · 9 per cent.

8 • 5 per cent. 5 · 2 per cent.

26 · 3 per cent.

(3) CoMPARisoN oF PE:tw:ENTAGE INcREASE oF SAr.AmEs AND P:t&CEN'rAGE INCREA!'.E oF REVENl1Nl for calendar years 1901 to 1910! according to figures supplied by Commonwealth Public Sm•vice Commissioner. ·

1901 1903 1904 1905 1906 1907 1908 1909 1910

Year.

INCREASED SALARIES . Jj;XPENDITURE.

Permanent Officers.

Amount.

£1,208,222 1,262,530 1,31.5,369 1,357,426 1,369,3H8 1,389,054 1,436,563 1,516,358 1,566,393

Petcentage increase of Salaries over previous year.

4·18 3·19 ·88 1•43 3•42

5·5 3•29

Percentage increase on 1901 29·64

Percerttage increase of Revenue over previous year.

2·51 6·01 5·0:> 10•

7·69 4·4 4•86

43·7

29

Permanent, Temporary, and. Exempt Salaries. Percentage Increase in Salaries anJ Wages over Payments for 1901-3!)·2.

Accrued Cost of Minimum Wage. ] 902-3 £44,000

1904 17,000

1905 17,000

1906 17,000

1907 17,000

1908 17,000

1909 IO,OCO

£139,000

These amounts are greater part approxi­ ma,te, but i(, is considered the tota,l expendi· ture has not exQeeqed £140,000.

Average Salaries.

New South Wales Victoria Queensland South Australia

Westerrl Australia Tasmania

1901.

... £118

122 138 11:1 127 107

£121

liJIU.

I :z;; 133 13!)

13a

.£128

These averages do not take into paymE)pts by way of District Allowance.

81. From these tables it is apparent that the increase in working expenses is not accountable for . the deficit since the percentage cost of earning the revenue decreased during the period reviewed.

82. Your Commissioners therefore conclude that the DepnrtuJent's unsound financial position is due to the fact that telegraphic and telcphoni<' services are rendered at rates which do not return revenue sutticJent to cover aU charges a.gainst capital account, and working expenses.

FINANCIAL oF SERVIcEs.

83. From evidence presen,t.ed by various lea

( 1) That the services should be conducted without concern as to their solvency, . the Department relying on Consolidated Reve:nue to reimburse losses. ·

(2) That the services should be conducted on a basis,

the Department being treated as a commercial proposition. (3) That the services1 with special provision for sections,

such as mail subsidies and outlying services in country districts, should be self-supporting. Such special provision to be made by grants in aid from Consolidated Revenue, or by grants of assistance from tile States' Governments. ( 4) That the services should be as a Commonwealth

concern.

84. With regard to the first proposition, your Commissioners consider that this has to a great extent been the financial policy of the Department in the past, and that it is a policy that calls for immediate alteration.

86. As to the second proposition, your Commissioners desire to dispose at once of the propriety of making the services profit-making, since the Der,:;u:tment:. as well as performing functions of a character, fal'1ht1es which tend to develop the country. In many mstanees contmuous

settlement depends upon constant and regular mail services. This is notably the case in the outlying parts of Western Australia and Queensland, where ordinary necessaries of life are supplied by means 1of the mail services. In such cases it can be said that these services are auxiliaries to the main­

tenance of progressive settlement, and tend to ameliorate the conditions of the pioneering section of the Commonwealth. Subsidies for mail and cable services ca.n be classified for treatment a,S, in the preceding paragraph. It can readily be understood that outsid.e

the immediate interests of the commercial community a speedy o-versea mml se.rvice and a cheap cable sel'Vice pe:ri-orm national work of the highest

' , \ '\

Telegraph nud Telephone ra\01 too low.

Diverse opiDion.

Department not to be solely profit-making.

29

Speedy oversea and cable l8l'Vioe requisite.

30

importance, such services being the connecting link between Australia and the outside world. The subvention increase to tl1e Orient Mail Service, in addition to the conveyance of mails, provides ihcrcased facilities fur the carriage of perishable products. This increased cost should not, in the opinion of your Commissioners, l!ave be<'l1 debited against the Post and Telegraph I lepartment, but against Consolid:ued Hevemw.

Posr. and Tel"graph Department should Le troated as a complete ttnanci11.l

proposition.

86. In regard to the third propositioJl, viz., that t1JC Department be self.supporti1lg with eertain grants in aid for special services, your Com­ rnissioners are of the opinion grauts in aid are not justifiable, and

consider that tl1e services should be treated as a c01nplete financial proposition. The revenue from States with larger population and larger volume of business should (without unduly increasing the rates) make up for the losses on the services in Jess populous Stc.tes. Your Commissioners did not obtain information sufficient to warrant them in recommending that the States' Governments assist the Commonwealth in cor.nexion with

unremunerative services which assist in development.

Services should be self­ supporting.

Postal side profitable.

Loss on telegraphic and telephonic services.

Limited information available.

8 '7. Regarding the fourth propos1tron, that the Departnwnt be self­ supporting as a Commonwealth concern. the balance of evide11ce is in favour of the services being made self-supporting as far as possible. Your Commissioners recommend that the Department should be self-supporting as a whole, and consider that this is practicable without the lessening of facilities. The services should be vi ewed as a Commonwealth concern, and

the term " self-supporting " should be applied to the functions of the Department as a whole, irrespective of any particular State, and also to each main branch of the services, viz., postal, telegraphic, and telephonic.

88. The evidence shows that on the postal side proper a profit is made. The mail serviees furnish nn instance where each member of the public is levied upon for the services actually rendered, while those who use the telegraphic and telephonic services do not recoup the Department for the :,ervices rendered. Consequently, the postal section of the Department has to assist in carrying the financial burden · of the telegraph and telephone sections. This is di stinctly inequitable, and the result is that the mail facilities to outlying districts suffer while telegraphie and

telephonic facilities are furnish ed at a loss. For the purpose of obtaining reliable information on this point, your Commissionel's in all cases when accountants were under examination endeavoured to obtain a statement of the relative cost of obtaining £1 of revenue in the various services of the

p epartm.ent, but with few exceptions the officers were unable to supply this mformatwn. ·

89. Your Commissioners endeavoured to obtain the above mentioned witlr the obJect of definitely establishing which were paying

and whwh were non-paymg branches of the Department, and of showing the relative extent to which they were paying or non-paying. The ·

Accountant in New South ·wales estimated the cost of earnino· £1 of, revenue to be as :--

0

Postal Service

Telegraph Service

Telephone t:lervice

£0 14 10

9 6

l 5 0

The only other information on this subject was supplied by the South · Australian representative of the Commonwealth Auditor-General, who had for many years been associated with the Accounts Branch in New South

31

Wales. This witness' estimate of the cost of obtai'ning £1 of revenue m South Australia was as follows :---:-Service

Telegraph Service Telephone Service

£0 15 10

1 1 5

1 a 2

90. In addition .to the figures quoted, the Chief Electrical Engineer Figorea only stated that to obtain £1 of revenue from the telephone service involved :ut approximate. expenditure of £1 7s., exclusive of sinking fund. Your Commissioners are not prepared to recorinnend the acceptance of the above fignres impiicitly, as the bases of the cal culations were uot. "?-niform. The Accountant in New South Wales and the Audit Inspl't'tor

m Australia varied considerably in their estimate of charges np:ninst capttal account, while the Chief Klectrical Engineer confined his estin1:1te to the telephone service, as it applied to the telephone networks of

Melbourne and Sydney. This portion of the evidence was of such :ut involved nature that it makes clear the difficulty of obtaining detiuite financial information.

91. Your in recommending that the Common wealth Deficit to be

Post and Telegraph Department be made self-supporting in the future, written off. recommend that the deficit of £2,300,000 should he written off'.

INSUFFICIENCY OF FUNDS.

92. Evidence was received that under . State control insuf'licieut provision had been. made for funds for the purposes of the States Post and Telegraph Departments, and that the services (with the exceptiou of the telegraph and telephone lines in South Australia) were more or less 'starved for many years prior to Federation, the result beicg that 1lwy

were handed over · to the Commonwealth in a far from effective condition From this it is evident that a serious burden was placed on the Common­ wealth Post and Telegraph Department at its inception. This starvation process has, however, been continu . ed under Commonwealth

and the position became a cute intheyears 1907-8 and·l9U8-9. It may be observed . that for the current year 190H-JO more liberal financial provision has been made. Sufficient fu nds have not been provided to construct necessary works to meet the ever-expanding business of the

Department. Neglect of thorough and effective maintenance has caused the lines and plant to deteriorate, and its postponement has simply resulted in increasing the financial burden .

. 93. The starving process also applied to the funds for permanent staff, necessitating the employment of temporary hands, the money spent on which could have been more economically expended by appointing necessary permanent staff.

94. Public complaints of inability to obtain effi cient telegraphic telephonic services are largely due to this very deplorable state of affatrs. Later in .this Report will be described in detail the condition ?f the telegraphicand telephonic services in each State, as shown by the evidence

of the Chief Electrical Engineer, the Electrical Engineers of the States, and other officials.

Starvation process continued.

Deterioration of lines 1\nd plant.

9 5. In the more populous 8tates, the enormous iucrease in business has not been met by the provision of adequate funds to meet the increased demand. This is answerable for the insufficient permanent staff, cient telegraph lines to carry the business expeditiously, and . m the

generally inefficient telephonic service, as di sclosed during the of this .inquiry. Spasmodic attempts to remedy this lamentable condition · · f' ·h· cond1t1on

have been ·made by the Department since the commencement o t IS ·

investigation.

31

Misuse of surplu!l revenue.

9 6. The departmental officers examined alleged that the want of funds, and the consequent inefficient condition of the services, are due to the action of the Treasurer in curtailing and cutting down the Estimates as submitted by the Department. Your Commissioners found that there was a desire on the part of the various Commonwealth Treasurers . to return as

much revenue as possible to the States Governments beyond their consti­ tutional proportion. A portion of the la1•ge sums (amounting to over £6,000,000) that the States Treasurers have thus received should have been employed in properly maintaining- the services of the Post and Telegraph Department, and in providing for its proper staffing and for necessary extensions. Had the Commonwealth retained, as it was entitled to do, some of the surplus revenue handed to the States Governments, and used it in the direction indicated, the services would now have been in a healthy condition, so far as their working capacity is concerned.

Cutting down Estimates.

9 7. To show the extent to which the Estimates of the Department have been reduced, the following table is submitted, which sets out the amounts originally asked for by the Deputy Postmasters-General, and the appropriation· finally granted by Parliament :-

STATEMKNT s HoWING R1WUCTIONS IN THE EsTJ¥4T.J£S ol!' THE PosTMASTER-GENERAL's

DJi:PAR1'MENT, FROM TQ.

(I!'urni$ht:d by Central Office.)

____ ..........._ _ _ __ __

Year,

Ordinary 1901- 2 1902-3 1903-4 1904-5 1905-6 1906- 7 1907-8 1908-9

- .. .. .. .. .. .. .. .. ele· and New Works, T graph phone- 1901-2 1902-3 1903-4 1905-6 1907-S 11108-9 Totals- 1901 - 2 1008-4 ]904- 5 190li-6 1906-7 1907-8 1908- 9 ..

..

..

..

..

..

..

..

..

..

..

..

..

..

..

..

Draft Estil!l!>tel! as submitted by D.l'.)'4.'sG. (Includes Central

£

2,51],441* 2,509,245t 2,567,270 2,596,715 2,659,228 2,681,271 2,911,893 3,196,189

..

-----

413,588 332,846 322,721 283,947 200,622 244,870 558,155 806,068

-.----- .. - ----2,925,029* 2,842,091t 2,889,991 2,880,662 2,859 ,750 2,926,141 3,470,048 4,002,257 ----- ..

Al submitted by Treasury to

farliallle.nt. -----

£

2,431,441* 2,379,700t 2,460,299 2,533,539 2,578,838

2,805,277 2,1>55,917 ---- .. ------

32,729 197,066 194,812 155,000 149,150 217,722 300,000 356,140 ------ .. ------2,464,170* 2,576,775t 2.655,111 2,727,988 2,863,923 3,105,277 3,312,057 ..

'l'otal

Reductions.

-----

£

80,000 129,586 106.971 63;176

80,390 35,070 106,616 2,0,272 -- .-- .. ------

380,8fi9 135,780 127,909

51,372 258,155

----- . . -------460,859 265,3!5 234,880 192,12? 131,762 62,\l18 364,771 690, 200 .. • Including arrears .o 30th June,"1901, £125,128. t lneludlng arrears 1901-2, £37,056.

'rota) (}! Total Amount\! l,!ltl:!pate Appro- granted by pri.atiQ!l.· -----£ £ 37,240 2,4ft8,681 54, 7Q!} 84,117 2,544,416 32,432 2,5l)&,971 56,262 2,635,100 M81!,57l 117,375 .2,922,652 72,5119 --- -- < Uil,lH 21,21!2,;75 .. 32,729 .. 197,066 194,812 4,61() 149,150 05,01)1) 365,009 ---- ---- 110,631 \,713,25<1 ---- -----37,240 2,501,410 54,769 2,&31,544 84,ll7 37,042 2,725,581 56,2611 2,784,!!50 2,913,166 182,.384 :1,2S7;6§1 100,728 . . . . . . 601,785 2il,991>,625 -·- -· · . -. ·- - .. ..

Tqta.! Amounts

Expenditure. ·c uv,l>lt• pended.

----£ £ 2,395,6l)9 ll,;lao,ns 2,457,857 86,559 2,577,796 57,304 lill,ll?ll 2,859,410 63,242 - .--- ---. 20,792,t79 489,1"6 32,f29 ii9:754 97,812 131,332 63,480 91,486 68,176 118,814 35,336 USii 856,'7411 8,261l l!S.S,;l99 ---- __ ____,__ ----2,428,418 72,992 2,478,W5 153,519 2,689,189 150,039 2,691,610 2,845,0f2 6$,18i 8,216,1 3 ?UQ& 1),367,887 ?T4,M2 -r • L 1 t . lllcblucUng for Ye!'rs 1906-?, ;J.IJ.d lMS-1), as .. rds ordinary votes lllAQiWI;.

. Qg, The drastiQ nature of these reductions is emphasi:r.ed hy the declaration of the responsible State officials that in no instance were thl' reductions. Estimates inflated. The effect of these reductions has simply been thl· postponement of the liabilities. This discloses want of fort•- Want of foresight.

sight, and absence of thorough consideration of the needs of the Depart-ment by the Treasurers; resulting in fal se economy at the expense of tlw public. It was claimed by some witnesses that it was not alwny:-; insufficiency of funds which prevented works from being carrieLl out. l t

was shown that during the period 190 to 1907-8 £282,970 out of tlu• total money provided for telephone and telegraph works was not exp(•n

now expends practically all the money appropriated for telegraph a11tl telephone workE. Considerable sums provided for works under the control of the Department of Home Affairs have not. been expended, owiug to tlw late passage of the Estimates by Parliament, and, in many instances, through

the States Works Departments giving priority to their own works. This defect would be overcome if the Post and Department established a capital_ account, and assumed responsibility for the construction of its own works. · ·

99. Another effect of the curtailment of funds is that the stores account has been placed on such a meagre basis as to compel the Depart­ ment to purchase supplies in the most primitive manner. This is the falsest of economy. The Chief Electrical Engineer gave instances where Fa1a' economy.

the Department had to buy odd lots of copper wire and job lots of insula-tors, while in many cases lines had to be built without insulators. Tlw absence of reserve stocks of materials was the cause of general eomplaint. It was alleged that the Department was unable to obtain sufficient Living from

construction materials, and was "living from hand to mouth." hand to mouth.

100. Another aspect of the question of insufficient funds was that votes for conveyance of mails had also been considerably reduced, with the result that facilities were thereby unjustifiably restricted . .

33

101. With reference to the question of funds, your Commissioners •consider that the Treasurer is not the financial expert of the Post and Tele­ graph Department, because it is impossible for him to have a thorough grasp of the financial needs of that Department. In view of this, the

assumption of all power by the Treasurer in regard to the expenditure of the Post and Telegraph Department is a striking instance of one authority holding power, and another authority being compelled to assume responsibility. Such a policy has had the effect of depriving

the Post and Telegraph Department of power to carty out its respon­ sibilities. In the appropriation for the current year (1909-10) the provision for ordinary expenditure has been increased £100,000, and a sum of £180,ll00 in excess of the previous year has been provided for new

works. This apparently indicates that the folly of astarvation policy has now been recognised, and to some extent rectified.

TreASurer nnable to thoroughlv grasp needs of Depa1tment.

SnoRTAGE oF STAFF.

Folly ot' star-vatton policy tardily recognised.

102. The continuous curtailment of the provision made in the yearly Excessive use at Estimates for permanent staff has compelled the Department the Commonwealth to employ temporary assistants. These temporary officmls, after being trained to some degree of efficiencv, have to be discharged, and a fresh batch of' untrained men is appointed. This is a costJy and

dumsy method of administration, necessitating the withdrawal of manent office:s from their regular duties for the purp?se _instructmg temporary asststants. The neglect to make adequate staff pro':1s1on to meet the natural increase of business, as well as new business occaswned by the granting of concessions, has been the cause, to a considerable degree, of

F.8564. o

Shortage ot staff.

Increase recently made.

Disregard of ordinary business methods.

Purchase of material by tender.

Buying agent.

Preference to local material.

Wholesale purchasing.

Illustration' or • · · ;: unnecessart loss. \

public complaints. It also had the effect of 111aking fot discontent in the Public Service by causing overtime, postponement of leave, and other disabilities. In every State serious complaints were mad.e of shortage of staff, practically in every branch of the Department's serviCes.

In 19{16-7 1,000 additional officers were provided for on the Estimates for Commonwealth requirements, but funds for only 600 were granted by the Treasurer. Of 1,157 additional officers asked for by New South Wales for the period 1905-6 to 1 907-8 only 848 were granted. The position in regard to staff shortage was found to be most acute in New South 'iV and most noticeable in the engineering, construction, telephone, and mall branches. Evidence of the seriousness of the position is disdosed by the fact that on the Estimates for the year 1909-10 provision has been made for

1,500 additional officers, at an immediate annual cost of £130,000.

PURCHASE OF MA TERTALS.

103. Insufficiertcy of funds prevents the Department in all the States frotn holding reserves of materials. The Chief Electrical Et1gineer, the States' Electrical Eng,ineers, and other responsible officers, complained of the want of reserve stocks. So far as construction materials are concerned1 the Department has been working in a most primitive manner, exhibiting an utter distegard of ordinary business methods, and entailing .a cumbersome and expensive system of pmchase. Your Commissioners recommend that six to nine months reserve stocks should be held.

i 04. Your Commissioners consider that the purchase of all construction materials by tender (claimed by witnesses as the most economical system) is not as economical as is generally deemed by the offidals. All mat€lrials of a standard character, such as wire, cables, switchboards, insulators, battery material, &c., could be purchased more satisfactorily if the Department had! a buying agent in London with power to purchase material in the various:

centres of production, thus availing itself of favorable market conditions. Arrangements could be made for goods to be consigned to the various centres in the Commonwealth as required. It is not desired to convey the impression that, by the adoption of the preceding recommendation,, it is either necessary or desirable that Australian manufacturers should be excluded fron1 consideration. If supplies of local production can be: procured, preference of a reasonable nature should be given.

105. The wholesale purchase of supplies has been adopted by tne Department only within reqent years, and is confined to a few lines. The Department is now extending the practice, but its earlier application would have resulted in considerable economies. .

1 06. Your Commissioners recommend that a " Materials Purchase Account'' or " Suspense Account" shoul-d be immediately established, ia order to pl3ce the Department in a position to secure its constraetion in a systematic manner, and avail itself of favorable markets. A

remarkab1e example of the necessity for holding surplus stocks was the purchase in a high market of copper wire for the Sydney-Melbourne telephone line. The Department had to pay no less a sum than £11,000 more than it would h.ave paid if an earlier ptl.rchase had been mad.·e when ceppe.r was

quoted at a normal figure.

CoNDITION OF TELEGRAPHIC SERVICES.

Neto South Wales.

r ' l07> .When taken over from the State, certain main lines in New Soutli (1"W-'alles but apart from this the lines were in fairly good

,t:ntr ·orier. Sinc<:9·:that date repairs and strengthening have been carried out so i d:f,:t :' -far as possible ; but it was alleged that the funds provided have not bee·n ,]il{ '· '

35

sufficient to fully maintain the lines, and provide new lines necessnt·y to cope with the business expeditiously. Repair and maintenance work has had to be postponed to some extent through the maintenance staff \)eing· employed on new works. Funds for new lines have been asked for,

but not granted, with the result that existing lines are in many cases seriously congested. The present position is that the main lines are in fairly good order; but on country lines there is a large amount of mainten­ ance and duplication requiring attention when funds are provided. A

number of new lines are also stated to be required to carry the tratiie, especially between. Sydney and Albury, Sydney and Wallangarra (an extrn line has already been built from Brisbane to Wallangarra), Sydney nnd Cootamundra, Sydney and Moss Vale, Syd.ney and Tamworth, Glen Innes

and Tabulam, and Taree and Kempsey, &c.

Victoria.

108. The lines when taken over were in a bad state of repair, antl in urgent need of attention, owing to inadequate maintenance. The State Electrical Engineer said that in 1901 it would have cost at lt•nst

£30,000 to put the lines in order. Since Federation maintenance parties have been formed, and an attempt has been made to remedy this state of affairs, but maintenance has been starved under Commonwealth control also, and the lines in Victoria are still in a most unsatisfactory condition.

In no other State is such a se1·ious amount of arrears of mainten:uwe to be overtaken. It was alleged that for fifteen or twenty years fuuds supplied for maintenance had been insufficient. There are over 3,000 miles of lines needing more or less repair, and it was stated that

if the lines do not receive better there may be a serious

collapse. In 1908 an inspection of the metropolitan district disclosed the astounding fact that 1,617 poles were unfit for further use, and had to he condemned. Some of these poles are absolutely rotten, and a menace to public safety. At the time of this inspection there were only 267 poles in stock, and funds were not available to procure more. The number of

lines was said to be sufficient. ·

Queensland.

109. It was stated that in 1901 the main lines in this State were in good condition) and that wooden pole lines in one or two western districts were in a bad state of repair, but generally the branch lines were in govd order. Since Federation maintenance has been carried

out so far as funds would allow. It was claimed by the State

Electrical Engineer that the lines are now maintained in an efficient condition. Some of the poles in the metropolitan area are overloaded, but this will be relieved when the telephone lines are undergrounded. The present lines are stated to be insufficient for the traffic. Additional lines are said to be required between Bowen and Cairns, Cloncurry and Richmond,

and Brisbane and Toowoomba. Delays between Brisbane and Sydney are frequent owing to want of an additional line between WaUangarra and Sydney, but the Queensland section between Brisbane and Wallangarra has been completed for some time.

South Australia.

110. When taken over the lines in South Australia were in excellent order. Since Federation they have been maintained in that condition. The lines are fairly adequate for present traffic requirements.

Western Australia.

111. Maintenance had not been systematically carried out on all lines prior to Federation, and certain sections of line, particularly in the north, required overhauling and strengthening. Since Federation the has been systematized, and is receiving attention so far as funds permit.

02

Re:t>air and mamtenance work postponed.

New lines required.

Ba.d state ot linea.

Danger of collapse.

Lines not sutllcien t.

Lines in good order.

35

Poles overloaded.

"£462,485 necessarv.

Installation of obsolete switchboards.

No improvement in construction methods.

The liries are now in fair condition, but the Iimintemince provisioh is said to be insufficient to keep them in a proper state of efficiency. The poles of the Perth aerial lines are so overloaded that the wires actually

support the poles. An additional line of 2,116 miles to the notth-west is urgently required.

Tasmania.

112. In many instances the Tasmanian lines when taken over were in need of extensive repairs. In 1907 an Electrical Engineer was appointed, and the necessary work undertaken.

CoNDITION oF TELEPHONE SERVIcEs.

113. In May, 1901, a Departmental Committee.' cons1stmg of Sir Charles Todd, Deputy Postmaster-General and Supermtendent of Tele­ graphs, South Australia; J. Y. Nelson, Chief Electrician, New South Wales; H. W. Jenvcy, Chief Electrician and Telegraph Engineer, Victoria; and J. Hesketh, Electrical Engineer, Queensland, was appointed by the

Commonwealtp. Postmaster-General to inquire into all matters connected with the telephone systems of the several States. This Committee reported that an expenditure of £4t12,485 was necessary to put the telephone systems in good order. This amount was made up as follows:-

New South Wales £93,001

Victoria 226,3f:l4

Queensland ... 20,300

South Australia 90,000

Western Australia ... 32,800 (exclusive of new switch boards

for Perth and l<,remantle.)

Tasmania (no estimate prepared)

£462,485

114. Provision for this expenditure was not and the funds pro· vided since Federation for new telephone works have been such as to barely enable new subscribers to be connected to the existing systems, and had not, until after the commencement of this inquiry, a1lowed any expenditure on reconstruction works of any magnitude. Systems and switchboards not up to date have had to be insta1led on account of want of modern material and trained staff. Although the growth of telephone business has been abnormal it has not been met by provision of necessary funds.

115. The result of unduly curtailing expenditure was p.ointed out repeatedly by the Department, and the required provision was made on the Estimates, but was reduced by the Treasurer. The longer reconstruction is deferred and the longer installation of a new system is postponed the more expensive the work becomes, on account of extensions made to the old . system. Construction methods were found to be practically the same as

in 1901, as the Department claimed it had been impossible to improve those methods since that date, although the adoption of improved methods would obviously have tended towards economy. It may be mentioned that between 1886 and 1904 the New York Telephone Company's plant was reconstructed three times to bring the equii)ment up to the highest standard, and to . render the service more efficient. From 1900 to 1907 the Bell Telephone

Company, United States of America, spent about £70,000,000 on telephone undertakings.

116. A detailed account is submitted of the condition of the

telephone services of the several States when taken over by the together with a description of the attempts made by the Department

. to Improve those conditions, and to meet the demands of the public.

New South Wales.

117. When taken over by the Commonwealth, the telephone boards and instruments in Sydney were at that time The main

routes of all lines were in underground tunnels, in which were Jniu cables provided ·w ith metallic circuits, but distribution . to subscribers' premises was by single wires ; junction lines were also single wires. A common battery is being installed in the Central Telephoue

Exchange, a section of which is now in use. The evidence showed that additional junction lines had been. provided between the central and suburban exchanges, and tl1at to a considerable extent the junction liut•s had been made metallic circuit. Plans for new exchanges have been

drafted, and specifications prepared for new switchboards for man.Y of the branch exchanges, whose equipment is insufficient to cope expeditiously with tl1e traffic. The important requirements in the Sydney netwol"k were found to be---'-New buildings for branch exchanges; new switchboards

for branch exchanges ; extension of underground conduits for cables ; and extension of metallic circuits from cables to subscribers' premises. ' r : • , . .

Common b&tterJ switchboard installed.

118. The arrears in regard to switchboards for branch exchanges in Arrears serious. the Sydney area are serious. In country districts in New South Wales many of the exchanges require immediate attention, owing to the rapiu growth of business. One of the most important of these is at N ewcastlc, for which a new switchboard has been ordered, but the wires have not hee11

undergrounded owing to alleged insufficiency of funds.

119. The telephone aerial wires and cables in the city and suburbs of Sydney are seriously congested, and further undergrounding is necessnry. Sufficient funds and trained staff are not available for this purpose. The magneto switc1Jboanl at the Central Exchange, Sydney, for flat rate

subscribers is out of date. Your Commissioners also found that the great demands made upon it impaired its efficiency. On the ne w common battery Impaired 1)o:w1 there is sufficient accommodation for all measured service subscribers, efficiency hut nnt for all subscribers. There are not enough transfer lines between

the common battery board and the magneto boards in the Central Excl!auge. More junction lines are required with branch exchanges.

Victoria.

120. The Victorian telephone service was found to be in the most unsatisfiwtory condition of any in the Commonwealth. In Melbourne the switchboard and instruments were obsolete. The Chief Electrical Engineer staten that he knew of only one other system in the whole world which

was in a similarly antiquated condition. The switchboard was condemned . twenty years previously, at the time when the State Government took over the service from the private company which conducted it. The technical experts reported at that time that metallic circuits and undergrounding

were necessary ; but the State Government did not provide the funds requisite for the purpose. The deplorable condition of the Melbourne telephone service when transferred to the Commonwealth is evident from the fact that at that period the Electrical Engineers' Committee

estimated that it would cost £226,000 to place the service in an efficient condition. Although since Federation attempts have been made to improve the service by the provision of additional junction lines, extra attendants, and new instruments at subscribers' premises, the funds provided are stated

to have been inadequate even to extend the old system, much less to replace it with a proper system. The evidence disclosed that the Melbourne TelcplH'ne Exchange and lines were in much the same condition as in 1901, the only difference being that the network was larger, and, therefore,

expensive to reconstruct. Recently steps have been taken to put the in an efficient condition, and a common batterv switchboard is now m course of erection, and undergrounding of line& lirovis.ion fo:r metallic circuits are being , ,

37

New switch­ boards and lines req11ired.

38

Queensland.

121. When taken over by the Commonwealth the Brisbane telephone service was in a fairly efficient condition. Since Federation many urgent extensions of telephone lines have been deferred, owing to alleged insuffi­ ciency of funds. A common battery switchboard is being erected in the Central Exchange, but many important country exchanges require new switchboards and extensive provision for new lines. With the completion of the new common battery switchboard and the installation of metallic circuits the Brisbane service should be satisfactory.

South Australia.

_ 122. In Adelaide, in 1901, the telephone switchboard was not up to date, and the lines were single wire aerial lines, but the instruments New switch- at subscribers' premises were good. New switchboards had been

boards ordered. ordered for Adelaide and Port Adelaide, and undergrounding of lines had been proceeded with to a considerable degree, but the poles were seriously overloaded. Subscribers have had to put up with an inefficient service owing, it was said, to want of sufficient funds to underground the wires and supply metallic circuits. In Adelaide, at the time of this inquiry, about 60 per cent. of the wires were metallic circuit. More junction lines are required between telephone exchanges ; 'this is especially the case between Adelaide and Port Adelaide.

Good service impossible.

Poles overloaded.

Only efficient I!,YStem m the Commonwealth.

Enforced limitation of inquiry.

Weste1·n Australia.

123. The system taken over by the Commonwealth at Perth was the original system with aerial lines, the congestion on which made a good service impossible, although metallic circuits were provided for the majority of subscribers. The undergrounding of wires at Perth, Fremantle, Kalgoorlie, and other towns in this State await the voting of the neces­ sary funds. The poles are overloaded, threatening danger to life and property. The switchboards and instruments at the large exchanges are not modern. A common battery switchboard is being procured for Fremantle, and a similar board is required for Perth.

Tasmania.

124. In Hobart, in 1901, the oldest pattern of non-multiple switch­ board was in use with aerial single wire lines, and indifferent instruments. Since that date a common battery switchboard has been installed at Hobart with metallic circuits, and the Hobart service was found at the time of this inquiry to be the most efficient in the whole Commonwealth.

The system in Launceston is obsolete, but a common battery switchboard has been ordered for that city. In the country exchanges reconstruction is necessary, especially in regard to metallic circuits.

Telephone T1·unk Lines.

125. In all the States necessary extensions of trunk lines were stated to be delayed through insufficiency of funds.

General Deductions.

126. Your Commissioners, in reporting on this important section of their inquiry, consider it necessary to state that their investigations were limited to the evidence submitted by the Chief Electrical Eno-ineer, the State Electrical Engineers, and other leading officials, who were

39 39

responsible for the services. Independent expert evidence was not obtainable. All the officials examined claimed ins"Q.fficiency of fLmds to be the sole cause of the ill-conditioned state of the services. It is probable that tlw ."\vant of efflGient method and foresight may also be answerable to some extent

for the unsatisfactory condition of the telegraph and telephone services. Had a Chief Electrical Engineer been appointed in 1901 probably thL· a.c 1ng. introduction of improved methods would have been the restllt. N. B.- . Since this was u;ritten Dr. Bell, inventor of the le.lep!tone, has

been examined. !lis epi£/,er2ce mainly oorrob01·ated #v1-t of the local techn:iml experts.

Amount now 1·equired to put the Telegraph and Telephone Services in an efficient condition, and to provide for necessary e.r:tensions.

12 7, Evidence was by the Chief Electrical Engineer and the £2,69(1,000 odd St3te Ele.ctrical Engineers that a SJ.un of £2,519 1079 was to place requued. the Telegrtlph . and Telephone BranGhe& of the Department iu proper working condition, A summary of the a,lleged reqnirements is submitted

hertl11nde:r. (Full details will be found in to the Minutes of

·

NEw WoRKS, EQUIPMENT, AND STAFF FOR THREE YEARS FOR TELEGRAPIIIC AND TELEPHONIC SERVJ_C]i'.S .

New South Wales Victoria ...

Queensland South Australia ...

Western ···â€¢

Total

Instruments,

New Wor)<:s. B.atteries, MainteJ,!.;mce. Stll>ff. Tote.!.

Ma.tl)ria.ls, &c,

- .- . . --- -- .-.--- . ----·---

£656,258 £48,000 £118,5.00

622,398 12,000 167,830

160,000 15,555 71,503

144,241 13,418 18,850

.••.• · I98,5ll . J5,000

. 1;500 1Q,9:,17

l,82s,o52 -ro5,4n45s,I76j

.£64,270 36,651 12,815 5,136

9,455 4,061

132,378

£887,028

259,H7:l 181,64.) 282,.'522 69,)32

2,519,079

•

N.B.-Tl).!) tptal 1/.lllOuJJ.t cpy!)rs am:):ars and extensions, for which figures are not obtainable. ·

1 As a result of neglect and in Capital account

to pt!ovi.de for absolute reqmrements durmg the next few years, a consider- of £2,000,000 able amount of capital, amounting probably to about £2,0.00,000, will have necessary. to be provided. Your Commissioners consider that any further delay in providing for this expenditure will be fraught with serious consequences.

129. Your Commissioners do not deem it within their province to recommend in what manner the necessary funds should be obtained. They consider that this is distinctly ·a matter of Government policy.

PREPARATION .AND TREATMENT OF EsTIMATES.

130, A complaint was made generally by the officials that the ment had experienced serious difficulties in regard to securing funds through the repeated late passage of the Esthnates by Parliament, a:nd thro\lgh the lapsing of funds on the 30th June i,n each year. As a

re&Qlt of this practice works hav,e had to be deferred l).ntil the latter part of the financial year, often necessitating a re-vote, for

Belated passage of Estimates.

40

How to avoid lapsing of moneys voted.

delay in establishing an efficient and economical service. Further, this treatment of the Estimates enabled the States Governments to obtain large sums of money beyond their constitutional amount, particularly in 1907-8, when the total unexpended balance for all Departments was £457,000. In that year £330,613 beyond the constitutional amount was returned to the

States. Had the additional Estimates of that year, amounting to £321,000, been passed earlier, the Commonwealth would have been the gainer to that extent, and the Department would have consequently received a large sum, which would have materially assisted in placing its services in a more efficient condition. If the recommendation (made in the earlier portion of this Report) that money for new works be voted in the form of

a capital account be adopted, it will dispose .of the recurrence of such difficulties.

Suggestion not aoproved.

\ 7

oting of 1 ump ::ums.

Generalization of expenditure not advisable.

Loss by fire • .

131. Numerous objections were raised by leading officials in con­ nexion with the preparation of the Estimates. were made that

the Deputy Postmasters-General should meet at the office of the Central Executi\'e for the purpose of dealing with the Estimates by consultation, and by discussion with the Minister and the Permanent Head. Your Commissioners do not approve of this suggestion, and have provided for .the proper treatment of this subject, and the discontinuance of such

conferences, under that section of the Report dealing with Management.

132. It was contended that a lump sum should be provided for unfore­ seen expenses on account of new works and materials. This will not be neces­ sary under the scheme of voting funds for works and construction material in the form of a capital account. As to voting a lump sum for staff and

contingencies to meet sudden developments or unforeseen emergencies, your Commissioners are of the opinion that a continuation of the present practice of using the Treasurer's Advance Account meets all such requirements.

133. The suggestion that, in the preparation of the Estimates, many of the details now given should be generalized, your Commissioners are unable to approve, as the power of revision and control exercised by .Parliament would thereby be :curtailed, and the public would be restricted in obtaining information as to the expenditure of public funds. Further, the process of generalizing items of expenditure might lead, if not to extravagance, to careless expenditure by the Department.

134. The Estimates as now prepared group telegraph and telephone repairs, instruments, material, and maintenance. These items sho.uld be shown separately, so as to disclose more definitely the actual expenditure for each branch of the service.

INSURANCE FuND.

135. The Post and Telegraph Department does not make any provision for underwriting or insuring its property, and officials were examined as. to the advisability of forming a departmental insurance fund. The losses by fire during the last few years amount to a very consider­ able sum. The loss by the fire at the Melbourne Post Office Stores, in 1907, was about £13,000, and by the fire in Sydney, in 1909,at the

George-street Stores, about £10,000. The replacing of such destroyed material is a heavy charge against one year's revenue. In view of this experience, your Commissioners recommend that a departmental fire insurance fund be established, thus follgwing a course similar to that adopted by large shipping companies,

41

. PosT.AGE l1.ATES ON LETTERs.

136. The postage rates within the Con1momvealth are not uniform. The existing rates are : Victoria, 1 d. per i- oz. throughout the State (this uniform State rate was only introduced on the eve of Federation, and js esti­ mated to result in a loss, at the present time, of £:)0,000 per annum); :::;outh

Australia, 2d.per-! oz. throughout the State; N ew South Wnh·s, Queensland, 'Western Australia, and Tasmania, 1 d. per oz. in cities and towns, and 2d. per oz. for districts outside cities and towns. li'or letters between States :t uniform rate of 2d. per oz. is charged. 'VI1ile your Commissioners arc of . opinion that the postage rate within the States should be made uniform Un1o:imrate

at the rate of 1d. per oz., tl1cy cannot recommend its adoption until till' nee e · telegraph and telephone services are placed upon a self- supporting hasis.

137 .. The suggestion made by certain offi cials thnt it would he mon• prudent to increase the weight of letters from oz. to 1 oz., if carried out, would, in the opinion of your Commissioners, be the means of cheapening postal facilities to a section of the community , with no distinct ad

to the general public.

138. It was estimated about four years ago by fhe Accountant to tlw Central Executive that the introduction of a Commonwealth penny postnge would result in a loss of £:265,000 per annum. Your Commissiouer:-; consider that if penny postage were applied throughout the Commonwcaltl1 at the present time, a further loss of about £120,000 per annum would he incurred, amounting to a total loss of about £38!1,000 per mmum. The

universally-accepted view is that the revenue will decrease ou the introdue­ tion of r educed rates, but that the deficiency is more than made up in a tew years by the largely-increased volume of business resulting from reduced rates. This feature is strikingly borne out by the experience qf Victoria.

On the introduction of penny postage in that State th e ntnnber ofletters per capita posted within the State for places within the State was In the year 1904 the number had increased to 72 ·29. During the snme period in the other States the increase was:-New South Wales, from 46 to 55;

Queensland, 34 to 37; South Australia, 44 to D3; \Vestl'rn Australia (decrease), 46 to 43; and Tasmania, 33 to 36. Your Cmi1missicners consider that when the other services of the Department arc placed on a self­ supporting basis, and allowance is made for the increased business that will

accrue from the r·educed postage rates, the Commonwealth Government would bejustified in making this reduction.

139. Your Commissioners have been impressed with the enormous increase of mail matter handled by the Department. The following figures show the number of letters, postcards, packets, newspapers, and parcels handled during the years 1901 and 1908 :-

1901 1908

Period.

Increase

TABLE 1.

p ,Jstcd Inland for Delivery within the State.

_L_e_tt_ .e r_s __ an_d_P_o_st- ca _r_ds_ . -- . I __

191,731,881

1 05,28 7,011

31,827,198 61,130,647

29,303,449

P t;crease,

78,70R,l46 7 5,0-1.5,1:!89

*3,662,257

1,112,700 2, (1 55,302

942,602

of

weight to 1 oz. no to

[ eneral pu bhc.

Commo• wealth penny postage.

growth of

postal business.

41

42

TABLE 2.

Inter-Sta.te

Period.

l

-

Letters and Postcards. Packets. Newspapers.

-·------ ------ -· --- -- ------- .

1901 ... 18,472,865 4;568,267 13,675,031 140,llS

1908 ... 29,1.33,5;)9 7,438,500 21,313,162 308,3.55

.

Increase ... 10,680,694

J

2,b70,233 7,638,131 168,237

Inter-State Received.

Period.

I

. .

Letters and P ostcards. Packets. Newspapers. Parcels.

.........._._., __ _..,...,........_,_ _ _ _

1901 18,514,915 3,711,875 13,686,449 I 141,318 ... 908 ... 35,613,480 9,141,727 22,051,985 301,966

ncr ease ... 17,098,565 5,4'29,652 8,365,536

I

l60.648

. .

I

T.A.IILE 3.

International Despatched.

Period, I

Letters aud Postcards. Packets. . Newspaper!!. P!trcelJ!,

1901 1908

Increase

Period.

...

- ···

4,945,046 10,6;H,050

5,679,004

Letters !tnd · Pol!tc.ards.

1,318,509 2,191,162

872,659

3,055,235 5,400,189

International Reooived.

Ps.cke.ts and Newspapers.

35,027 68,4915

3.3,4;68

Parcel!J .

.. -- --. -----------

1901 1908

5,681,795 13,699,090

10,159,009 1 ;;?,f569,66:9

Increase 8,017,295 2,410,660

TABLE 4 ..

Total number of articles ha ndled by Australia, 1901 Total number of articles handled by Australia, 1908

Increase (equal to 4 7 · 22 per cent.) ...

80,674

26,149

365,51! ,501 538,123,784

172,612,283

For detailed State Statistics, see Appendix VIII. to the Minutes of Evidence.

Oversea Postage.

140. The postage rate is 2d. per to the United Kingdom a.ml

British Possessions ; per oz. to foreign countries. The rate to United Kingdom is four times as much as from the United Kingdom to Australia., and twi<'-.e as much as from other countries in the Postal Unjon, with the exception of Japan.

. 141. In view of the loss sustained by the Department on its oversea service (which has recently been increased by the payment of higher subventions) irrespective of the cost of handling this mail matter, your Commissioners cannot an immediate reduction of rates to

British and foreign countries. But ·if the finances of the several branehcs were placed upon a self-supporting basis consideration could be given to the question of reducing these rates.

NEWSPAPERS.

142. On 1st November, 1902, the Commonwealth rate on newspapers Rates. posted in bulk was fi:x:ed at ld. per 20 ozs. Previous to that date the rates charged in the States were as follows :-New South Wales

Victoria Queensland ... South Australia Western Australia Tasmania ...

Newspapers posted within seven day11 of publication for delivery within the State outside the metropolitan area, free. ld. for 16 ozs.

ld. for 16 ozs . ... · 1d. for 16 ozs.

1d. for 16 ozs. Free within the State, ld. for 16 ozs. Inter-State.

143. Estimated gains and losses resulting from the introduction of the Gains and Iouea Commonwealth rate on newspapers posted in bulk were obtained, showing on newspapera. that the net gain to the Department, exclusive of Western Australia, for which the figures ·were not available, from 1st November, 1902, to 31st

December, 1907, amounted to about £38,000, ma.de up as follows:-New South Wales-Gain £61,615 Tasmania-Gain 2, 14:6

.£63,761

Victoria-Loss Queensland-Loss South Australia Western Australia-Not

obtainable

£.16,357 . 6,173 3,330

.£25,860

144. The actual cost to the Department of the transmission of this No alteration mail matter was not available, but the general trend of evidence from proposed. responsible officials in the various States showed that considerable losses were made in .this branch of postal work. As newspapers may be con-

sidered of importance in the dissemination of information to the public, your Commissioners are not prepared to recommend ttn alteration of the conces-sion rates on newspapers posted in bulk.

. 145. Under the present regulations governing the postage on newspapers the country press is placed at a great disadvantage, as the newspapers are often posted singly and cannot be posted at travelling post­ offices unless bearing a stamp. To facilitate the despatch of these newspapers,

and to afford some relief to the country press, your Commissioners recommend that the Department should supply stamped wrappers on the estimated weight of the newspapers they are intended to envelop.

146. Under the provision for bulk postage the Department is subjected Bulk postage of to a considerable amount of imposition, whereby merely trade notifications and ephemeral electioneering publications are enabled to get the benefit of cheap postal rates intended only for legitimate newspapers, thus involving circulars.

the Department in great expense, particularly by overloading the country mail services. The Regulations, if strictly interpreted, would obviate the possibility of such imposition. Such publications should be charged packet rates, which is a fair rate for the service rendered.

43

Payment of bulk

an:l expmsive system.

Ex:t ·nsion of parcel po.it,

Parcel post

p1yable.

44

147. The practice IS for bulk postao-e to be paid in stamps affixed to dockets and cancelled. The evidence this point is strongly in fa:vour of such postage being paid in cash. Yom Commissioners recommend that payment of bulk postage by stamp be abolished, thus obviating the

present circumlocutory and expensive system.

l' AIWEL PosT.

148. The parcel post section of the Department's services fulfils a function which exceeds the boundaries of what is generally accepted as legitimate postal business, and comes more definitely witl1in the range of carriers' work. Recognising the peculiar and distinct conditions ·obtaining in the Commonwealth, and the great facilities afforded by the parcel post, particularly to those inhabitants residing in the remote parts of Australia, your Commissioners consider that it is to the general interest of tiJc, community to recommend not the restriction of these facilities, but their further exten­ sion in outlying districts. There are some districts in Queensland nud

\Vestern Australia where the postal service is the only means of obtaining supplies.

149. From the general trend of the evidence, your Commissioners have come to the conclusion that under existing conditions and present rates the parcel post is approximately a paying proposition. In some States the parcel post apparently produces considerable profit, notably in Victoria, where the excess of revenue over expenditure amounted approximately to £11,000 in the year 1907, while in New South Wares a similar excess of slightly over £1,500 was shown for the same year. In South Australia an excess of £270 was shown, and in Queensland £!1,400; but in this latter estimate Customs duties to the amount of .£10,.500 are included, which should not be credited as postal revenue. Beyond a general statement by the Deputy Postmaster-General that the parcel post branch in

\Vestern Australia is the best paying branch of the senrice in that

State, no return has been furnished. In Tasmania, according to a

return furnished, there is a debit of £1,400 for the year 1907, although the Veputy Postmaster-General, in his evidence, considered that the parcel post paid.

Amalgamation to s ).Ve expense. 150. Your Commissioners are of the opinion that the parcel post and packet post should be amalgamated, as by such an arrangement economical

management would result. More definite advice will be given on this matter under Organization."

Neglect to cater for suburh:m businesJ.

Parcel post in la1·ge c;:ities.

151. A recommendation cannot be made, either in the direction of approving of the present rates or their alteration, because definite financial information is not procurable.

152. A payable of the parcel post is overlooked by neglecting· to cater for suburban business by fixing suitable rates. This is a feattu:O of the traffic for which special provision should be made, as a very profitable source of revenue remains uriexploited by the Department. The Post and Telegraph Department entering into the trade of carrying is not :m innovation, as in some countries considerable attention is paid to this class of work. One striking instance is that of Manchester,

England, where the Post Office carries on a large parcel business, and competes with railway eompanies. The utilization of the various tramway and ferrv services in the Comnwnwealth in connexion with suburban parcel business should be considered by the Department. Evidence was given that in Switzerland the parcel post system had been developed to a remarkable extent. After earefuiJy reviewing the parcel post branch in its Commonwealth bearing, your Commissioners consider that there is ample scope for such services to be made remunerative when confined to tho transport qf articles of reasonable portability.

, ' .,

lnsurance of Parcels. •

153. 1n the insurance of parcels ail anomaly exists which pet'tllits lnstlring pa·eet.. insurance on all parcels sent to foreign countries, but not within tla• Comnion wealth or to N.ew Zealand. Your Commissioners recommend that the Department sh9uld insure parcels containing valuable artieles sent

to any part of the Commonwealth, and should make arrangenwnts to extend the principle to New Zealand.

Value Payable Parcel Post.

154. The representative of the Storekeepers' Association of New South Wales desired the abolition of this service, on the grountl thnt the city retailer is thereby provided with unreasonable facilities as against the country trader. Your Commissioners are unable to accept this view.

The value payable parcel post is most largely availed of in tl1c Statl'S of Importance ot Queensland and VYT estern Australia, owing to the nature of tlw

population, and the great distances from commercial eentres. This traffi(' is asserted not only to be growing· in those States, but to be protitahlt· to the Depa.rtment. In the States of New South ·wales, Victoria, and South Australia the value payable parcel post is not much availed of, 011

account of the high rates impm:ed and the proximity of the grPatt>J' pnrt of. the population to large provineial towns. Complaints were matle that the present rates were too high, and it was requested tl1at the

registration fee of 3d. be abolished. Your Commissioners are not prepared Reduclion of to recommend a reduction of the charges.

CoMMONW:EALTH PosTAGE STAMPS AND STAMP PRINTING.

155. Under the present conditions stamps of different design arc printed for each State, and the stamps of any particular State are only usable within that State. Your Commissioners reeommend that this be disconnnued, and that a uuiform Commonwealth issue should Be!lefit of

be printed as early as possible. '1 his would be of considerable advautag(• uniform stamp. to the travelling public and the commercial community. By the issue of such a Commonwealth stamp it is estimated that a saving of about £1,000 per annum would be effected in printing the ld., and denominations.

At the present time stamps for four States, viz., Victoria, South Australin, Western Australia, and Tasmania are printed in Melbourne, while New South Wales and Queep.sland print the stamps locnlly. The printing of stamps, postal nolts, money orders, and post cards could be more economi-

cally executed at a common centre. This should not retard the immediate introduction af a Commonwealth stamp.

45

156. The objection was raised that the interchangeability of Stnte stamps would inflict a financial loss on individual States. Your

Commissioners are of the opinion that the loss, if any, would be infinitesimal.

No from

interchange­ ability of stamps

Automatic Stamping Ma chines.

157. While. dealing with the matter of postage stamp printing, your Commissioners consider that automatic ,stamping machines, as now in general use in New Zealand, where tliey have proved both safe and economical, could be introduced into the Commonwealth with cwsiderable

advantage. In addition to the employment of these machines by mer­ cantile houses and Government Departments eaeh important post-office shotild be similarly equipped. Automatic stamping machines, Automatic for telegmms and postage, would be of considerable service to

the public, and would afford to the Department the protection of a cash register. ·

Concessions to large firms.

RecomunnJ.a. .. tion.

46'

• Stamp Commission .

158. Licensed vendors of stamps receive a commission of per cent., limited to 30s. per week. Evidence was received that the Depart­ ment does not exercise sufficient discrimination in the granting of stamp licences, and that licences have been obtained in the interests of large firms, and not of the general public. The granting of licences to these large firms practically amounts to a discount on their stamp purchases, In many instances firms adjacent to post-offices hold licences for the sale of stamps, which is a deflection of postal revenue. Your Commissioners recommend that the granting of stamp licences should be strictly guided by the principle that they are solely for the purpose of providing facilities for the general public to purchase stamps. The large amount of revenue that is lost iu commission on the sale of stamps can be 1·eaJized when it is stated that in New South \Vales a sum slightly over £51000 a year is now paid in commission.

Payment rif Postage by Commanwealtll and Stale Government Departments.

159. The practice in conne.xion with the payment of postage by Government Departments of affixing O.S. stamps causes unnecessary work, and involves considerable bookkeeping by those Departments. Fot· instance, the Secretary to the Home Affairs Department stated in evidence that the stamping of letters and recording postage costs that Department from £600 to £700 a year. Your Commissioners recommend that the Government Departments should make use of automatic stamping machines wherever advisable. ·

TELEGRAPH RATES.

160 .. The following table shows the rates when the Department was under State control :-I. Suburban Telegrams (address and signature

New South Wales, Queensland, South Australia, { Western Australia, Tasmania ...

1fictoria {

First ten words-6d. Each additional word-Id.

First nine Each additional word-ld.

2. Inlan'd T elegrams, other than Snbnrban (address and signature free)-New South Wales, Queensland, S outh Australia, { \Vestern Australia, Tasmania. ... First ten words-Is.

Each additional wonl-IJ.

· Victoria { First nine words-9d.

Each additional word-ld.

3. Inter-State Telegrams (address and signature free)-New South Wales to Victoria or Queensland and { vice ver sEt ...

New South Wales, or Victoria, or Western Australia to South Australia and vice versa Victoria to Tasmania and vice versa

Victoria to Queensland and vice versa

New South Wales to Tasmania and vice versa

New South Wales or Victoria to Western Australia and vice versa ...

Queensl11nd to South Australia and vice versa South Australia to Tasmania and vice versa

Queensland to Western Australia or Tasmania and vice versa ... .... ... ...

Western Australia to Tasmania and vice versa

t

}

{

{

1

}

First ten Each additional

First ten words-2s. Each additional word-2tl.

First ten .word s-2s. Each additional word-3d.

First ten 6d.

Each additional

First ten words-3s. Each additional word-3d.

First ten Each additional word-oid.

- ----

. 161. 'rhe following table shows the present tates under Conttnoll· \vealth'control- • Within each State-Within 15 mile radius First 16 words, 6d.; and each

additional word. ld.

Others

Inter-State-

First 16 words, 9d.; aud each additional word, ld.

_First 16 words, ls.; and 1 d. each additional word.

162. Inquiry into this question has convinced your Commissioners that the reduction of telegraph rates made by Parliament in 1S02 was too drastic, and proper consideration was not given to the financial effect of such reduced rates. The evidence obtained is that there is a considerable loss uudcr

present rates, and that it is impossible to overtake the shortage hy

increased business unless the ra:tes be increased-. Some leading officials contended that the removal of concessions as to rates would be a retrogressive policy.

163. When the enormous distances in Australia are taken into con­ sideration, together with the great expense involved in the construction and maintenance uf telegraph lines, it is clear that, by comparison with the rates cha1·ged in other countries, the rates in the Commonwealth are

too This branch of the Department should, in the opinion of your

Commissioners, be made self-supporting. The following table shows the rates charged in other countries :-

TELEGRAPH RATEs 1N OT:ttER. CotJ'N'rRtil:s.

Great Britain ... ..• 6J. for 10 wot'ds, and each additional word.

Minimunt CkMge.

France 10 words, 5d.

Germany 12 words, od.

Austria 12 words, 6d.

Italy 15 words, lOd. . .

Switz-erland ..• 2 W-ortls, 3d. ; and id. per additional word.

India 16 words, ls. 4d.; and .2d. per additional word.

Cape Colony ld. per word; minimum charge, Is.

;Natal ld. per word; minimum charge, ls.

Orange Rivet Colnny . 12 words, ls. ; and l cl. per additional word. · {10 words, lS. ; and ld. per additional word. lO words, ls. 8d.; and per additiQnal word, U ni te.d States o. f America .. 10 worrls, 2s. ; .a. nd l ¥1· per 1Hldi .. a. I. w_orc.l. (pnvate control) .. . 10 words, 2s. 6d.; and 2d. per add1twnal word. 10 wurds, 3s. hi. ; and per additi6nal word. 10 words, 4s. ld. ; and per additiGlltil wQI'd. The American charges are based on a zone system, the approximate distances applicnble to the above rates ranging I.rom 500 to ol'er 4,000 miles. Address and signature are sent free. · Canada ... Same rates -as in Unit-ed States of Ame-riea. 164. When it is recognised that most of the Australian States are larger territorially than the countries mentioned, with the exception of lndia, Cattada, and the Unit-ed States of America, it is apparent that the construction and maintenance of the telegraph lines in Australia nm.st he ttrore costly. Several witnesses contended that the zone system should be established. Your Gommissioners, while appreciating the benefits .of a eystem in countries, consider th:tt under tb-e excepbon?tl conditi·on-s existing in Australia the application of the zone would resul;t in the larger States receiving inequitable treatment, 'and w.ould certainty be most confusing to the general public. From a bu-suress stand-point there is much to recommend the zone system.

,,

Reductions too drastic.

Branch should be aelf-auppor ting.

Zone system not favoured.

47

Want of accurate financial advice. i65-68. Beyond a statement that t11is service is being

conducted at n loss, reliable financial advice ·was not obtainable upon which to definitely fix the telegraphic rates to place the senice on a paying basis. ·In tlteir· efforts to a basis to guide them in this

vour Commissioners enlled for a mnnher of returns, but on a close analysiS these returns tltev were uuable to obtain sufficient data upon which to

hase a sound equitable schedule of rates, wltich difficulty is made apparent hy reference to Appendix 10 to the Minutes rif Evidence.

ImP.OJsible to fix equitable rat£s.

167. Your Commissioners consider that the present telegraphic rates arc too low. The concensus of opinion expressed by the offit.:ials was that to place this branch of the Department's services on a self-supportjng basis would necessitate an increase of the present rates by 40 or 50 per It

would be fi1tilc to attempt to fix the mtes evf'n roughly upon an basis. The rates coulJ only be approximately determined by calculatmg· the cnpital cost involved in the constntction of telegraph lines, and debiting the proper cnarges thereon, together with working expenses and maintenance. Owing to the general confusion existing in. the Depart­ ment as to the financial position of the services, the requis1te data were

unprocurable.

Drastie reductions without proper consideration

168. Your Commissioners cannot too emphatic,1I1y express their condemnation of the Government's action in sanctioning such drastic reductions in the telegraph rates without previously investigating the financial position of the services, and ascertaining the exact condition of aftiirs for the purpose of advising Parliament.

169. Your Commissioners are, however, enabled to express definite opinions on the general bearing and application of the telegraph rates, especially (a) in connexion with charges made for additional words beyond the statutory number; (b) the treatment, consideration, and charges for urgent telegrams ; (c) code and cipher messages and their abuses; (d) cable service ; and (e) P!ess messages.

170. The present system of charging a minimum rate for messages of sixteen words (including address and signature), and one penny for each additional word, is anomalous, because the first sixteen words of a message are charged a less rate per word than the succeeding wordS. Under this system it is apparent that the sender of lengthy messages is unfairly Oppo3ed to taxed, which is opposed to business methods, and conveys the idea that a busiuess methods. toll is imposed. The following illustrations demonstrate the inequitable

incidence of the scale of charges. State messages within a I5 mile radius of a telegraph office, containing I6 words (inclusive of address and signature) are charged 6d., and each additional . word 1d. Therefore a message of 32 words costs Is. IOd., nearly four times as much as one of I6 words. In State 9d. messages the second 16 words cost ls. 4d., almost twice as much as the first 16 words. Inter-State Is. messages, second I6 words cost Is. 4d., or an increase of 33! per cent. on the first

I6 words.

Telegraphic charges anomalous.

1 71. Beyond mere simplicity of calculation for the Department there . appears to be nothing to warrant the continuance of this practice. The only reason your Commissioners can assign for the Department's adherence to this system of charges is that in the first portion of a message

there is a concession to the senders, and that the high charge proportion­ ately for each additional word is intended to recoup the Department. lf additional words were charged for at a slightly lower rate than the first Sixteen words, it would make for increased traffic, and would establish·fairer

conditions .

.. ··-- ···· ·· - ··

r------- 49

49

' , ' '

17 2. In regard to urgent 111essages, it was discovered that there is a growing tendency to despatch ordinary messages as urgL·nt by payment of double rates. This is to secure expedition. The irwn·ase of this· practice is evidently Cftused by the congestion of traffic, wlrieh

arises from insufficiency of staff, insufficiency of lines, and tlw muhu· ttse of the condenser telephone system on telegraph circuits. Tlw main effect of the use of urgent messages is that the pul)1ic by paying douhl" rates for ordinary messages are compelled to bear an impost in their· nttPnrpt

to obtain expedition, which should be the first essential of au dlici(•nt telegraphic service. . The lioes should he placed in such good workin.!!." condition as to iusure expeditious service without the public lw ring to resort to urgent messages.

Tendency to send urgent meaugea.

17 3. Code and cipher messages are apparently useJ fol' the 111ain purpose of obtaining a cheaper telegraphic service, as messages cnu he lSl'llt hy means of a code up to twenty times as cheap as in ordinary languagP. The evidence of telegraphists is that code messages cause slower work, and

increased liability to enor, and that this is intensified by the ciplrer Consequently the transaction of this clnss of business is more l'X p<·nsi n· than the handling of the ordinary traffic. The use of code a·rHI ('ipiJ(•r messages is rapidly growing, as is indicated by the fact that the business transacted by code and cipher systems in New South Wn )ps is

computed to amount to about 20 per cent, of the total Inter-State tratHc of that State. To prevent the users of code and cipher messages obtaining an undue advantage over the general public in regard to the telegraph mt(•s, your Commissioners recornmend that code and cipher messages should he

charged considerably increased rates, and that the number of lettt·rs constituting code and cipher words be reduced.

Payment nf Telegmrns.

Code measagc11 rause slower work.

Recommendation.

1 74. The question of payment of telegrams by means of adhesive stamps or by cash as formerly was responsible for a considerable amount of con:Bicting evidence, some witnesses affirming that the stamping system for the safety of the revenue, and involved less la hour. It

appears that the practice of stamping is the policy of India n.nd Great Britain, while the cash system obtains in France and Germany. The bulk of the evidence favoured the cash system, and your Commissioners Bulk of evidence adhere to the opinion advanced by the Auditor-General, who approved of cash

the return to the cash system on the grounds that the stamping system wns liable to cause errors, and involved extra expense and extra work in checking. Frauds in connexion with the st;1mping system have occurred. and there is a danger ofthe continuance of such frauds. The estimated cost

of checking the stamps on telegrams by the system now prevailiug amounted to about £2,600 per annum. Your Commissioners consider a return to the cash system would make for the convenience of the general public, nnd therefore recommend the abolition of the stamping system. Abo .itiou of

stamp recommended.

Injustice of present Cable Conditions.

17 5. existing cable conditions as applied to Australia cannot be too forcibly condemned. The cable service is supplied to ...-\ ustralia by two distinct bodies, namely, the Pacific Cable Board and the Eastern Extension Telegraph Company. The Eastern Extension Telegraph

Company is a purely mercantile concern, buttressed by a contract, originally ?mwn between several States Governments, which permits the res<'ind­ mg of the agreement by mutual consent. This aO"reement was entered into shortly prior to the inception of the Commonwe::5th. The exceptional

character of this agreement gives to the Eastern Extension Telegraph Com­ pany a controlling power over cable rates, and allows it ·to hold the key to the position. F.8564. D

Eastern Extension Company's contract.

Controlling power over ca. ble rates.

Energetic canvassing.

No through counexion.

Existence of monopoly.

N aticnalization.

C'oser ac , uainiance ,., ith outside world.

50

176. The evidence demonstrates tha t the Eastern Extension. Tele­ graph Company by the adoption of a more system of ca:nvassing

attracts the larger volume of cable business. The Eastern ExtensiOn Tele­ O'raph Company captures from three aud a half to four words to the Pacific

Cable Board's one of public business. The following table shows that the Eastern Extension Telegraph Company transacts about 80 per cent. of the transmitted business (ordinary and press) of the Common wealth :­ STATEMEN T lilh owing the number of Outward Messages from Australia to the United Kingdom

Ol'er th e Pacific and !!:astern Extension T elegraph Company's cables resp ectively during th e year 1 90i

- New South Victoria. ·Queens· South Western IT . Total. WaleH land. Australia. Australia. a.smama. ·-- -------------

Via Pacific-Ordinary ... 8,260 4,801 4,510 310 719 463 19,063

Press .. . 325 392 131 156 2 ... 1,006

Via EasLern-Ordinary .. . 40,488 18,296 548 8,467 8,201 1,189 77,189

Press .. . 554 464 3 135 77 ... 1,233

1 7 7. The position in regard to the Pacific Cable Board is that the Common wealth's proportion of loss is about £4,700 a year. The total losses are guaranteed by Great Britain and Canada to the extent of five­ ninths, New Zealand one-ninth, Victoria, Queensland, and New South Wales one-ninth each.

1 7 8. It was contended by r epresentative commercial men that the reason why the Pacifi c ( able was not more availed of was that the service has no through connexion across the Atlantic, althoug h as a set-off it is contended that the Facific Cable Board controls the American traffic. As demonst rating the evil effects of the close control of cable traffic to-day, it was alleged that only two cables are employed by the cable syndicate across the :\ tlantic, while eleven are lying idle, presumably with the object of destroying competition.

179. As regards press cables, it was disclosed that as far as outward business was concerned the two services were used as follows :-Via Pacific, about 1,000 messages per annum ; via Eastern, 1,230 messages per annum. The inward press cable business was confined to tqe Eastern Extension Company, all messages being addressed to Adelaide, and distributed from that office, amounting to about 2,600 messages per annum.

180. The cable r ates are- Ordinary, 3s. ; Government, ls. 7 !d.; and Press, Is. per word.

181. In reviewiug the general position your Commissioners are of the opinion that the pre.sent condition of the cable service is most

unsatisfactory , and constitutes a monopoly for the Eastern Extension Telegraph Company. Under existing conditions the All Red Route proposal is frustrated. ·

182. Your Commissioners are of the opinion that the cable service should be nationalized, and, consequently, co.ntrolled by the Goverument. This matter is somewhat outside the scope of this inquiry as affecting the Commonwealth Post and Telegraph Department's services, but such an important auxiliary to the telegraphic service could not be allowed to pass without comment, particularly as it affects Australia's relations with the outside world.

183. The necessity to cultivate closer acquaintance with the outside world, as well as the wisdom of acquainting the outside world of Australian affairs, should, in the near future, compel the Commonwealth Government to introduce considerably reduced rates by the construction of alternative routes, or the resumption of the Australian rights of the Eastern Extension

Telegraph Company. .

/ 51

51

P1·ess

184:. It is obvious that, as ordinary messages are not .payable, the press rates, which are ls. 6d. for the first 100 words, and 60.. for t•ach

additional 100 words, involve c.onsiderable loss to the Department. This concession to the press may be reg·arded as a facility for the dissemination of information to the public. The continuance of these lo\"

rigid adherence to the principle of ordinar.y messages taking precedence of press messages, but there should be a suffieiency of lines to prcvt•nt congestion, either by ordinary or press business.

to

press juatified.

TELEPHONE RATES.

185. During the course of this inquiry the most exhaustive infonuatiou was obtained in regard to the telephone service. In addition to a close examination and personal investigation of the conditions of the variou:-: State services your Commissioners examined the telephone service in its financial bearing, both from the subscribers' and the Department'"

stand-points.

186. The telephone service of most of the States of the Commonwealth was discovered to be in an unsatisfactory condition in the earlier stages of the inquiry, and the subsequent improvements made have been fully to in this Report under the sub-section of Finance, entitled " The condition

of the services."

18 7. This section of the Report will be to the telephone

rates and char,ges imposed upon the public during the period of Federation. The evidence disclosed considerable confusion as to the basis of the charges Confusion aa to to be adopted. Your Commissioners are of the opinion that the present rates. charges are grossly inequitable to certain sections of the public.

188. It is deemed advisable to furnish an epitome depicting the chaotic condition of affairs, which was the result of fixing a new

scale of rates without proper consideration, and the neglect to establish facilities to meet the demand of the public for telephone services. Prior to February, 1907, the telephone service was supplied to

subscribers at a fixed sum per annum under the flat rate system,

irr2spective of the amount of service rendered. Subscribers (business or domestic) who used the telephone a few times only paid as much as subscribers who were almost continuously using the service. The flat rate system is open to abuse by allowing this class of subscribers to grant the

use of their telephones to non-subscribers without payment. The Depart­ ment, apparently seized with the injustice of this inequitable condition of affairs, and desirous of affording telephone facilities to a larger section of the community, introduced at the instance of the then Postmaster-General a system of a compound character, partly a flat and partly a measured rate Compou.nd afeatem

system, which experience has demonstrated to the fullest to have inflicted not equitab e. financial loss on the- Department, and which has not been relatively equitable to each section of subscribers.

189. The rates dP.termined upon were too low, :mel were fixed in opposition to the declared opinions of the Permanent Head and the Chief Electrical Engineer, who were the expert advisers to the }Iinister . .

1 90. From the evidence, your Commissioners are forced to conclude that these rates were established without full consideration of the ultimate result, and a total disregard of the experience of other countries. Further, prior to the introduction of the new system care was not taken to see

whether the Department ;vas sufficiently prepared with material, instru­ ments, and staff to meet the development that would naturally occur. In addition to cheapening the service without proper consideration, a further D:l.

Rates estahliahed without full consideration.

Expense increased.

Monopolising effect of flat rate system.

£300 worth of service obtained.

52

waR placed upon this branch of the Department eleven months

afterwards (January, 190t; ) by the extension of the radius from 1 tnile to 2 miles, an action which your Commissioners consider was unwarranted, and ·which c0nsiderably increased the expense to the Department without increasing the tevenue.

191. Another feature of the system introduced in 1907 which is of considerable importance, and which has great bearing on the

difficulties of the Department, was that it permitted the existing subscribers to continue on the purely flat rate system, or to transfer to what has been described as the compound system.

192. Illustmtions showing the monopolistic nature of the flat rate system were supplied by several leading officials, who stated that flat rate subscribers pay only about 7d . a day, while many of them use their

telephones a hundred times a day. Certain mercantilefirms and tradesmen are said to use their telephones as much as one hundL"ed and thirty times !1 day. It is obvious that the of this practice is a great disadvantage

to the average subscriber in two ways, ( 1) the congestion of the service, therehy militating against efficient service to other subscribers, (2) the extensive user contributes no more to the revenue than does the casual user. Some subscribers are said bv the officials to have admitted that they obtained from £100 to £300 annum in value from tile telephonic

193. Your Commissioners have not solely relied on evidence relating to Australian conditions1 but have obtained documentary inforiilation frorri other countries: showing that complaints, such as the overloading of the switch boards during certain hours of the day by an ·excessive number of ca1ls, and the too long occ'upation of the wires by a particular subscriber, causing disabilities to be imposed on other subscribers, and additional work on the telephone attendants, are common wherever the fla( rate system prevails.

Flat rate inequitable to small subscribers.

. 1 94. Your Connnissiotiers are decidedly of opinion that it is inequitable to make the general subscriber, such as the SI1:lll1l shopkeeper, the small m:mtlf.'lcturer, and the domestic user: pny a higher rate than he should, for the benefit of the htrger business firms who make almost continuous nse of the telephonic service. Further, the flat rate system is manifestly unfair to the Department, providing, as it does, an unlimited service at a limited charge. Your Commissioners recommend the total abolition of the flat rate system. Recommendation.

Purchase system to be abolished.

Recommendation.

Purely measund service advocated.

195. A still more glaring case of injnstic'e exists in New South \Vales, where about 580 subscribers are on a flat rate "purchase " system, and receive an unlimited service for £5 a year. This absurdly insufficient charge of 4d. a day permits of connexion with a. network supplying a service to 16,000 subscribers. This purchase system is a remnant of. the early days of telephone management in i\ ew South Wales. It enabled the fiubsctibers to purchase the instruments and installation, while being subject to fi charge of only £5 a year. Your Commissioners recommend the immediate abolition of the purchase system.

196. The compound flat and measured service system with 1,000 free calls half-yearly, apparently inaugumted for the purpose of affording equitable treatment to the small user, has failed to effect that purpose. .

19 7. Your Commissioners, recognising that the present system is inequitable to the general subscriber, and an increasing financial burden to the Department, recommend, in addition to the abolition of the flat rate, the abolition of the free call system, because it is practically an extension of

the flat rate system up to the limit of 2,000 calls annually. In view of these facts, it is imperative in the best interests of the public and of the Department to introduce a purely measured rate system, accompanied by an effective system of recording calls.

_/

53

198. Your Commissioners consider that the Telephone Bmnch of tlw Department should he regarded strictly as a self-supporting eoncet·n, an

subscribers will pay for services rendered.

19 9. It was contended that, prior to charges being impospd f(>r services rendered,_ the telephonic service should be established on up-to-date lines. The Departmeut has recently, to so111c extl·nt,

rehabilitated the telephone plant, and further improvements being· made. In the opinion of your Commissioners such rehabilitation has been hastened by the disclosures of this investigation, but tl1ere is stilln considerable amount of reconstruction to be accomplished before tlw Sl'l'Vi<·<· can be placed on a thoroughly satisfactory basis, as outlined in parngmph

127. But the improvements made, and the tendency to the further mpid improvement of the telephone plant, when associated with the aholitiou of the flat rate system, and the application of the improved seale of

charges, as recommended la.ter in this Report, will facilitate tlH· spe<·tly attainment of an efficient service.

200. A peculiar feature of the tdephone business was made evidt•nt which appears paradoxical to the ordinary conm1e2·cial mind, ua.mely, that the larger a telephone exchange becomes the more costly it is to hand!<· per unit. That is, an increased number of subscribers necessitates a lnrg(•r

network, which increases the costliness of the system, and the inerensl•cl trade resulting from additional subscribers does not resuit in a decreased cost per unit. This phase of the subject is of the utmost importance in fixing a scale of rates equitable both to the subscribers and the Department.

It is obvious that a telephonic service with a large number of is of greater value to each subscriber than a service with a small num\)('r of subscribers. This is illustrated by comparing two networks of 5,000

a.,nd 10,000 subscribers respectively. The cost of connecting nnd the working expeni'es per subscriber would be greater in tbe latter t!Jan in the former network. In view of this fact it is necessarv to base the rates

on the size of the network.

201. Hepresentatives of commercial firms and public bodies admitted that. in their opinion, the charges made for telephone services were too low, and expressed a willingness to meet increased charges, subject to an efficient service being supplied by the Department.

202. Your Commissioners experi enced considerable difficulty in framing a scale of cq uitable charges. A number of offi cials were

unable to supply accurately the information sought, namely, the capital cost, and the full debit of the proper charges fur interest, depreciation, and working expenses, and they suggested investigation by competent accountants to ascertain this information. This has since been partly done

by a Committee of Accountants, who were specially appointed for that purpose, and who have furnished a report dealing with the Victorian section only of the telephone service. This Com.mittee came to the conclusion that the capital value invested in the metropolitan network of ;\Jelbourne is about

£3S5,0011, making the average cost per subscriber approximat ely £31. This valuation is apparently based on the eapital value of the transferred properties, plus subsequent expenditure. But this network is in a deplorable condition, necessitating further expenditure on a new switchboard, conduits,

metallic circuits, &c., amounting to ov er £200,000, representing a cost, together with the £3l mentioned above. of approximately £5() per sub­ scriber. This estimate appears to be excessive, and is owing probably to the sadlv necr]ected co ndition of the whole of the t elephone

system in network of Melbourne. Yo .tr CommissioiiCl'S

Objections di'Spoaed or.

53

Efficient service possible.

The greater the numbAr or anbacribera the greater the COlt·

RepreaentativJI puolic bodies admit charges are too low,

Report of Commitr.ee of Accoun tan ta.

Network in a dep1orable condition.

Ascertaining capital cost.

Equitable determination of capital coat.

Estimate cost per line, £39

Estimate of cost in foreign countries.

Basis of estimating c , st.

More stability in telephony than formerly.

v

54

endeavoured to ascertain the original capital cost for the Commonwealth, but were unable to do so on account of an accurate record not being

kept. This prevents them from definitely ascertaining the amount of capital that has been invested in making provision for telephone ·services.

203. In view of the telephone services being now in process of

rehabilitation in all the large cities of the Commonwealth by the installation of new switchboards, conduits, and metallic circi1its, your Commissioners are of the opinion that the only equitable method of determining the capital cost is to accept as the basis the actuai cost under the new system.

The estimate of the Chief Electrical Engiueer and the State electrical engineers fixes the average cost of connecting a subscriber with the tele­ phone networks of the large centres in Australia under the new common hatterv svstem at about £39. This minimum estimate is based on the condit.ion; existing in Australia, but it is corroborated by the conditions obtaining in other parts of the world. That the estimate is excessive

mav he seen from the fact tha.t the cost of the London service m 1904 was £73 per subscriber, including spare plant, which cost had fallen to £50 in J ; in Pnris the cost per subscriber was found to be £4 7 ; in Vienna,

£.10 ; in Brussels, £82 ; and in Stockholm, £2'2. It was stated that

American experts estimate the cost at from ,£25 to £50 per subscriber, according to local conditions and the size of the network.

204. Your Commissioners have decided to base their calculations in regard to the fixing of equitable rates upon the estimated average cost of connecting a subscriber at the present time. The actual capital cost would necessarily vary considerably with individual subscribers, but an average must he struck for practical working. The initial cost for the new system, including spares, would for a few years exceed the amount of but the deduction drawn from the evidence of the technical experts is that the amount of £3H will he the approximate capital cost per subscriber when the new system has been fully developed. This estimate errs distinctly on

the side of liberality as far as the general public is concerned.

20n. Having accepted J39 as the approximate capital cost, your Commissioners consider that the proper rates chargeable for telephone services should be determined upon the following basis :-Interest on capital eost, 31 per cent.; depreciation (reconstruction based on a life of twenty years), 5 per eent.; ordinary maintenance and operating charges, £4 12s. 6d. per annum. r n regard to the low percenta.ge fixed for depreciation, your

Commis5ioners are aware that modern estimates of telephone companies assume that 8 per cent is requi1•ed for that purpose to provide for frequent changes of plant f01· an up-to-date service. Your Commissioners have accepted the lower rate of 5 per cmt. because they desire to provide for the public a service on a self-supporting . basis, not for profit, and because there is now more stnbility in telephony than formerly.

206. Ordinary maintenance and operating charges cover salaries of the administrative and fitting staff, and ordinary repairs as distinct from renewals. The amount of £4 12s. 6d. quoted as necessary to meet these charges is bnsed on the actual working cost of the Sydney and Melbourne telephone networks for the year When common battery switchboards have been installed, and the meaS\·lred service system is in general operation, probably a reduction can he made in these charges.

20 7. The following tahle sets out the annual average cost based upon the conditions alread v described :- ., A cost £39 0 0

Interest at. cent. £1 7 3

Depreciation and reconstruction, at 5 per cent. ... I 19 0

Ordinary maintenance and cost of operating ... 4 12 6

Total annual avera::-e cost ... 7 18 9

55

In this estimate it is assumed that construction will be financed out of revenue, in which case there will be no necessity to provide a sinking fuml. Should, however, the capital account be obtained from loan funds, a further charge of per cent. for sinking fund, based on life of twenty year:-;, will

have to be made. . ·

55

208. With the object of establishing the service on a self-supporting basis, your Commissioners recommend the fixing of such ratefo ns will Rate to returu return approximately an average revenue per subscriber of about £H per £7 18a. 9d annum in large networks. The adoption of the_ scale proposed, witlt

proportionate reduction in rental for party line services and for stnall<·r networks, wi11 provide for equitable to all subscribers.

209. For the purpose of estimating the necessary revenue required to cover expenses, your Commissioners have ascertained the average numher oi' calls per subscriber per day in the Commonwealth. It was found that in the United States· of America, where the measured service s\·stl•JH prevails, the average number of calls per subscriber . is six per. day,

while in Australia, as ascertained from returns furnished, the averngt· Average calla number of calls is higher. This is occasioned, according to the eviden<·e, per day ill h Australia. by t e excessive and alleged inordinate use of the telephone by the fiat ra.tt· subscribers.

The following table shows the average number of calls per telephone subscriber per day :-

Place.

Average Number of Calls per Day.

. I Measured Rate Subscribers. Flat Rate Subscribers. Metropolitan. Country. Remarks.

New South Wales Victoria

Queensland South Australia Western Australia

Tasmania

17 15

U·6 14•4 13·1

9·8

6 to 7

3·R

3 to 4

·96 to 2·7 Figures re measured service sub­ scr-ibers taken from n re<:ord kept fox 92 days, November, 1908, to January, 1909.

7.8 3·5

5.75 1·68

4·6

a•s I J·5

(Hobart and L aunceston) I

These figures are for the whole of the State for the year 1908.

210. Your Commissioners are of the opmwn that if the measured service system as recommended iR applied to all subscribers the averagP calls per subscriber will unquestionably decrease, and will probably amount to about six per day.

211. Your Commissioners recommend the adoption of the following oommiuionera' rates, which are fixed upon a minimum of cost, and afford most liberal charges for call". treatment to the subscribers, and which will produce a return slightly in excess of the minimum revenue necessary to cover expenditure, viz, annual

rental of £3 5s. per annum, based upon interest on capital cost and deprecia-tion charges :-Calls at the rate of .Ss. per 100 for the first 500 calls ; 4s. per 100 for the next 1,000 calls ; and 3s. per 100 for all calls over 1,.)00 half-year. rJerewith your Commissioners submit a schedule showing the cost

under (a) the present system, (b) suggested departmental system, and (c) the proposed system of your Commissioners, which schedule covers all classes of

56

subscribers. In the scheme recommended, should it be decided to construct the works out of loan money instead of out of revenue, it will be essential, to meet the demands of sound finance, to add to the rental charge an extra sum of about 25s. per annum:-

TELEPHONE RATES.

(For towns of 100,000 and upwards.)

S c HEDULE showing comparison between (a) Present Measured Service Rates; (b) Rates

proposed to be introduced by the Department ; and (c) Rates recommended by your Commissioners.

No. o! Ca lls per day.

(a ) P resent rates are-£5 per annum, with 1,000 free callB per half-year; calls over 1,000, and up to 2,000 per half-year, per ca.ll ; over 2,000 and up to 3,000, 3 calls ld.; over 3,000, 4 c11.lls ld. ·

(b ) Department's Proposed Rates-£4 per annum. Calls up to 2,000 per half­ year, per call; over 2,000 and up to 3,500 per half-y ear, 3 calls Jd.;

over 3,500 calls, 4 calls ld. • (c) Rates recommended by Commisaion-£3 5s. per annum ; 500 calls per half­ year at 5s. per 100 ; above 500 and up to 1,500 calls per half-year, 4s. per 100; over 1,500 calls per half-year, 3s. per 100. In all cases fractions of ld. to be charged as ld.

I Presen t Rates. I Department's Proposed Rt>tes. R'tes Recommended,

Half-yearly. Half-yea rly. Half-yearly. No.

Yearly Yearly Yearly

-- _ Total. Total. Total. RentaL Calis. Rental. Calls. ---- --·- -------- £ s. d. £ 8. d. £ 8· d . I£ s. £ s. d. £ s. d . . £ £ s. d. £ 8, d. I l ... 2 lO ... 5 0 0 2 0 7 8 4 15 4 1 12 6 0 1.1 2 4 3 4 1 3 ... 1 2 10 ... 5 0 0 2 l 2 10 6 5 8 1 12 6 1 611 5 18 10 3 6average 2 10 0 4 0 5 8 0 2 2 5 8 8 ll 4 I 12 6 2 8 10 8 2 8 ' 6 10 ... 2 10 l 14 5 8 8 lO 2 3 16 1 ll 12 2 1 12 6 314 9 10 14 6 lO 15 ... 1 2 10 3 2 2 11 4 4 2 5 3 10 14 7 8 1 12 6 5 2 2113 9 4 15 :zo ... I 2 10 4 3 1 13 6 2 2 6 8 2 16 16 4 1 12 6 6 9 6 16 4 0 20 30 ... 2 lO 6 1 1 17 2 2 2 8 6 2 20 12 2 I 12 6 9 4 3 21 13 6 30 0 ... I 2 w 7 19 1 20 IS 2 2 10 4 2 Z4 8 4* 1 12 6 1119 0 1 27 3 0 40 4 * I n the scale finally adopted by the Department aij from l st September, 1910, .j:d. calls wero eliminated. This will increase t he cost to the larger user, e. g., in lieu of £24 Ss. 4d. in the a bove table, the charge under the new scale would be £ 27 ls. 4d. (O)lPARATI VE STATEMENT showing amounts payable by subscribers using 70, 100, and 130 calls per diem, under fl a t rate, present measured service rate, Department's proposed and ra tes recommen ded by the Commission. I Calls p er I Flat rate day. (max.). Present Measured Service I Proposed Rates necommended by ____ __ No 70 100 130 Calls. Rental. Total. Calls. Rental. Total, Calls. Rental. Total. £ !) £ s. d. 23 10 6 £ £ s. d. £ .•. d. £ £ 8. d. £ 8, d. £ 8. d. £ s. d. 5 28 10 1) 28 0 8 4 32 o 8" 34 17 4 3 5 o 38 2 4 9 _4 1 9 43 1 10 5 48 1 10 47 12 o 4 51 12 o• 63 o 10 3 5 o 66 5 10 • Under the n ew scale these figures would be £37 4s. 2d., £50 5s,, £63 15s. 10d. Pt•tsent Flat Rates. State Capitals. I Other Towns. _ £ 8. d. £ d. £ '· d. £ 8. d, N ew South Wales 9 0 0 5 0 0 8 0 0 5 0 0 Victoria 9 0 0 5 0 0 7 0 0 5 0 0 Queensland 6 0 0 6 0 0 6 0 0 6 0 0 South Australia 10 0 0 5 0 0 £5 to £10 5 0 0 Western Australia 7 0 0 5 0 0 7 0 0 5 0 0 Tasmania 6 0 0 4 10 0 £3 to £6 £3 to £4 lOs. N or&.--For Telephone R ates in other countries, see Appendix IX. •

57

Trunk Line Charges.

212. Your Commissioners have arrived at the conclusion tlwt tlw present system of trunk line charges do es not provide for proper distribu­ tion of the financial load, and recommend tbat this section of th e telephone

' ,, -,

service be dealt with as a distinct proposition. From the evidence it is Rate• should be clear that the lower rates now charged should be raised. Trunk lim• raised. charges, taken as a whole, are Ct1nsidered to be payable to the Department, but the minimum appears to be too low, because the cost of operating alom•

on any trunk line is e'stimated to be Twopence, without making provision to repay capital outlay. On the the maximum charge appears to lw

57

too .high. Your Commissioners th erefore recommend a revision of tiH•sP R c d t . l · h h b' f · ffi · . t' e o:nmen a 1011 • c 1arges, wit · t e o o earnmg su I'IP.nt revenue to cover cost. o operating, plus proper charges on the capital cost, whieh necessarily varies with length of line. Further, the longer lines require a higher gauge und

more expensive class of wire.

Cundition of Telephone lnsb·uments.

213. An unreasonable demand made by telephone suhserihers (involving considerable expense) is for modern telephone instruments to replace existing instruments, although those instruments may possess au effective life of many years. Your Commissioners consider that in sudt

cases it is gross extravagance to discard effective instruments merely at the caprice of a subscriber, unless the subscriber is prepared to heat· au equitable proportion of the extra cost of the new instrument.

· EcoNOMIES To BE EFFECTED BY ADOPTION OF A PROPER SYSTEM 01'

FINANCE • .

214. ( 1) Establishment of a Capital Account.-The economies arc self-evident in this matter, as the Department would be enabled to proceed systematically, and therefore economically, in all construction work.

(2) Efficient Maintenance.-Deferred maintenance ultimately makes for considerably increased expt>nJiture.

(3) Stores.-'-Considerable savings could be made by wholesale purchase of stores. By the possession ·of a tltores Purchase or Suspense Account favorable markets could be availed of. Modification of the tender system of purchase by the appointment of a buying agent would result in economy.

Departmental insurance fund would cover losses by fire,

( 4) Stamp Issues.-Considerable savings would result from the intro­ duction of a Commonwealth stamp, the printing of all stamps at a common centre, eloser attention to granting of stamp licences, and by the use of automatic stamping machines.

( 5) Pa.11ment of Telegrams and bulk postage in cash.-This would reduce possibility of fraud, and also the cost of checking.

( 6) Parcel and Packet Post.-The amalgamation of these two services would result in economy in administrative expenses.

Passed 24th June, 1910

Effective instruments should not be discarded.

Discontent in Service.

iS

ORGANIZATION, INCLUDING DISCIPLINE.

215. Your Commissioners desire to state that the bulk of the

evidence presented during the course of the investigation related to Organization. Under this section are included all the ramifications of the Service, extending from the office of the Central Executive to every State branch and sub-branch. In addition to examining witnesses, your Commissioners made personal inspection of the accommodation and the

working' conditions in the General Post Office and other Post Offices in each State. The responsible officers of tlte Uepartment stated that the branches were insufficiently staffed, and alleged that under existing conditions it was impossible for the DPpartment to render a thoroughly efficient service to the public. The evidence disclosed the existence of an abnormal amount of discontent within the Department. Your Commis­ sioners c:onsider that a sound system of organization is impracticable without an effective system of managetnent, together with highly competent support in the :-ltates branches. It is also requisite to provide proper

working conditions, and ample and well arranged office accommodation, in order to secure the necessary facilities for the transaction of public business, and to enable thorough supervision to be exercised.

216. Your Commissioners have arranged under t.heir respective headings a summary of the complaints, together with evidence in rebuttal, and have submitted recommendations in connexion therewith, which they believe will make for improved organization and discipline. In dealing

with this aspect of their inquiry, your Commissioners are influenced by a desire to secure in the public interest a more efficient, economical, and contented service.

STATISTICAL·.

21 7. On the transference of the Department in 1901 from the States to the Commonwealth, there were 9,930 permanent officers employed, at a salary expenditure of £1,20H,222, the average salary per officer being £121. On lst January , 1910, . of H,OOO permanent officers employed in the Commonwealth Public Service, 12,240 were in thP- Post and Telegraph Department. They were distributed as follows :-

Central Executive New South Wales Victoria Queensland ... South Australia. Western Australia Tasmania

Total salaries

....

Total

Average salary per officer

42

4,639 3,345 1,442 1,109 1,240

423

12,240

£1,5i7,261 129

The officers are grouped into divisions as follows :­ Administrative Division (Secretary, Assistant Secre-tary, anJ Deputy Postmasters-(;eneral) ... Professional Division Clerical Division General Division ..

8

60

3,382 8,790

59

218. In addition to the above officers the Department employs a large of exempt and temporary officials, the figures in connexion with

whwh are set out below :- ·

N:umber Employed.

March, 1901. 1904. 1906. 1907. 1908. 1909.

Exempt 5,109 8,871 9,107 11,290 12,605 l3,tii5

Temporary 535 1,341 1,527 2,773 3,048 ') ..... ) .. -,1-i)

Total 5,644: 10,212 10,634 14,063 1.'5,653 16,4\l()

Expenditure.

£ £ £ £ £ £

Exempt 117,639 142,17 5 ... 156,738 171,67t.i 210,684 244,9:1!4

Temporary 50,14:2* 13,707 ... 20,868 53,535 . .. 81,244 62,830

--- --- ---- --- --- ---·-- Total ... 167,781 ... 155,8':32 . .. 177,606 ... 225,113 . .. 291,928 . .. 30i,76H --- ----- ---- --- ---- ---·-* Includes linemen, then temporary, now permanent. than official offices, '.'Exempt officers" includes persons employed in po!-!t otflcee otht'r CENTRAL ExECUTIVE. 219. The Central Executive being responsible for the general control of the Department, including the issue of regulations and instructions governing the working of the services, its leading officials should he highly qualified and possess n.onsiderable experience in post and telegraphic affairs. Your Commissioners consider that the Central Executive is not so highly equipped in this respect as it should be, and recommend that immediate provision should be made to effect this end. 220. In the office of the Central Executive, as now constituted, provision is not made for a Commonwealth inspectorial staff. Consequently the Central Executive has been in the unfortunate position of possessi!1g little acquaint­ance with the actual conditions existing iu the States branches, beyond that obtained by the unsatisfactory method of official correspondence. 221. In the section of their Report dealing with Management, your Commissioners have recommended the appointment of a Chief Inspector, whose duty it would be to supply the Central Executive with the information required. This is essential to an effective system of organization. 222. The accountancy section of the Central Executive was found to be insufficiently staffed to deal effectively with the proper functions of such nn important bmnch. This branch has been strengthened by the addition of three officers within the last eighteen months. Prior to 1907 the Accountant.to the Central Executive hnd the assistance of only one clerk. In such circumstances it is not surprising that a proper and uniform system of bookkeeping was .not established ; to obtain complete and reliable financial information was a matter of impossibility. The Chief Accountant should be an expert in his profession, and should be supported by a com­petent and adequate staff', so that a correct annual balance-sheet of the Department's business could be prepared, and a proper system of book­keeping instituted. The Chief Accountant should be the controlling and directing Accountant for the Department. The absenee of a proper accountancy staff in the present organization is, in the opinion of your Commissioners, one of the most serious defects which exists in the office of the Central Executive. An extraordinarv fenture is that the status of the Aceountant in the office of the Central Executive is lower than that of the Accountants in the States of New South Wales and Victoria. Your Com­missioners consider that the Central Executive Accountant should be the superior offieer. Under the proposed Board of Management the fullest consideration would be given to the establishment of this very important branch of the Central Executive on the highest standard of efficiency. I' ._

Experienced oflicers requlrecl.

Inspection from Central 0111.ce.

Chief Inspector necessary.

Central Accounts Branch.

Status of Accountant to Central Executive.

59

60

Statistical Branch required. 223. The Central Executive should be provided with a Statistical

Branch to collect statistics in addition to those required by the Postal Convention. It is necessary to simpli(y the method of collecting statistical information, as your Commissioners found that a considerable amount of duplication took place in the States' branches in connexion with this work. This branch should be attached to the Accounts Branch of the Central Executive, as the bulk of the statistics collated would relate to finance.

Chief Electrical Engineer hampered.

224. The Chief Electrical Engineer has been hampered in performing his technical duties by being confined too largely to administrative and detail work, and he has not been provided with sufficient opportumt1es to inspect the State Electrical Engineers' Branches, or to thoroughly standardize construction material and methods.

Too much clerical work. 2 2 5. The Chief Electrical Engineer should ,_be relieved of clerical work, beyond that inherent in the preparation of estimates, specifications,

drawings for the guidance of State Electrical Engineers, and in the drafting of technical instructions. The staff of this official (up to the time of this investigation) consisted of one temporary clerical assistant, which condition of affairs made it necessary for the Chief Electrical Engineer to work a considerable amount of overtime.

Recent increase of staff.

226. Since the commencement of this inquiry the staff of the Chief Electrical Engineer has been increased by two assistant electrical engineers. This discloses the difficulties with which the Chief Electrical Engineer has had to cope. Much of this important officer's time has been taken up on work which slJOuld have been performed by junior officials.

Organization defective.

Salary of Chief Electrical En­ gineer inadequate.

Secretary and Assistant Secre­ tary not required.

· 22 7. U ndee a proper system of organization the Central Executive would have provided its foremost professional officer with full opportunities of inspection, which is essential to the proper performance of his duties. In the scheme of recommended by your Commissioners this

has been recognised, and provision made for the Chief Electrical Engineer to be a member of the Board of Management.

228. In view of the importance of the office of Chief Electrical Engineer, and the necessity for sound engineering advice and effectivi=l control of engineering matters, its occupant should have the fullest opportunity to exercise his professional skill for the benefit of the Department. The salary

of £7 50 attached to this office is, in the opinion of your Commissioners, most inadequate.

229. Should the proposed scheme of management be adopted, it wm not be necessary to equip the Central Executive with a Secretary and Assistant Secretary. The appointment of a lower-salaried officer to a,ct as Secretary to the Board of Management would suffice.

Send1:ng OtficeTs to other Countries .for the purpose of

230. Under the Management section of the Report your Commis­ Periodical visits to sioners have recommended the advisability of officers periodically visiting other countries. h c • f b · · d · l h k ot er countries 10r tne purpose o ecommg acquamte w1t 1 t e wor ing . conditions of their Post and Telegraph Departments. They consider it,wiH

be impossible to acquire a sound organization unless leading officials are sent on necessary trips of inspection.

231. There is evidence of only one official (the Chief Electrical Engineer) haYing been provided with such facility. A subordinate Electrical Engineer, while on a private visit, inspected the telephone construction and equipment in England and America, and reported the result pf his inquiries

61

on return to the CommonWealth. witness claimed that the nppli­ catwn of some of the methods adopted m other countries would save the Department thousands of pounds. The Chief Electrical Engineer admitted that several of these reforms had been adopted with advantag·e to the

Department, a.nd that probably more would be adopted when opportunity occurred.

61

,, ... ,

Reformed methoda.

232. Your Commissioners recommend that periodical trips to other Recommendation. countries be arranged for the Chief Electrical Engineer.

Instructions to O.fficers.

233. A great number of instructions on departmental practice :m• issued by the Central Executive to the States Branches of the Departnwnt, and by the latter to the officets concerned. Complaints were received as to the voluminousness of these instructions, and the consequent difficulty

experienced by officers in becoming thoroughly c.onversant with them. In the opinion of your Commissioners simplicity and greater effeetiveness would result if all instructions to officers were revised, codified, and issued in pamphlet form. It may be mentioned that such a system has he(•Jl adopted with success by the New Zealand Post and Telegraph Department.

Complaints were also made that regulations affecting the staff' arc not always supplied to the officials. This defect should be remedied, in justi('c.' to the officers concerned.

Regulations.

234. Until the present yeat a separate Postal Guide was published in each State. These guides contained little entirely local matter. In March, 1910, ·a Commonw-ealth Postal Gttide was issued by the Central Executive. Earlier actio)l in this direction would have resulted in economy and puhlie

convenience.

It was stated in evidence that the present Telegraph Regulations

are confusing, especially those dealing with code and cipher messages. A revision of these, and other regulations in the Postal Guide, by expert officers, is desirable, and would lessen the danger of misinterpretation by officials.

DEPUTY PosTMASTERs-GENERAL.

236. Under the Management section of this Report your Commis­ sioners have dealt with the n1any disabilities under which the administrative officers in the States have ·been labouring. These officers should be released from detail clerical work which they are now performing.

Such work should be delegated for definite action to subordinate clericfll officers, such as the Chief Clerk and senior clerks. This course of action · would give the Deputy Postmasters-General ample opportunity to supervise and control the organization of their branches, and would provide the

necessary facilities to enable them to obtain the knowledge requisite to deal effectively with staff matters. Further, they would be able to beco!lle sufficiently acquainted with the capabilities of their subordinates to gmde them in their decisions and recommendations as chairmen of the State Staff

Committees.

Superabundance of instructions.

Codification of instructions.

Issue o! Common· wealth Poatal Guide delayed.

Telegraph regula­ tions. contusing.

Deputy Post­ masters-General do too much clerical work.

23 7. Several witnesses suggested . that the Deputy Postmasters- of

General could, with advantage, be periodically exchanged between Stat.es on · the ground that a wider experience would be gained. Your CommJs-sioners consider that such exchanges are not warranted, as they would hamper continuity of administration. The scheme of control recommended obviates the necessity for the adoption of such a practice.

Visits of inspec­ tion necessary.

Objections by officers.

62

238. For the purpose of obtaining :t personal knowledge of the work­ in

the State, but should not absent themselves for any lengthy perwd from the head office or m anv wa;' assume the le

239. In accordance with the provisions of the Common wealtb Public Service Act, which came into operation ou 1st January, 1903, the Common­ wenlth Public '· ervice Commissioner elassified the Service into four divisions, prescribed by Section I:> of the Commonwealtl1 Public Service Act,

VIZ,;-

( 1) The Adt11inistrative Division. ( :2) The Professional Division ( 3) The Clerical Division. ( 4) The General Division.

240 The Classification was completed in June, 1904, and, after being submitted to Parliament for approval, came into operation in July, 1904.

241. The representatives . of associations su.bmitted numerous objec­ tious to the existing classification scheme,

242. The following is a brief summary of the .more important objections:-( l) The basis of the Classification was wrong, the status of

officers under State control not being a fair guide. (:2) The salaries determined were too low in many instances. ( 3) The Classification was based on seniority, and not on merit. Officers' ability was not investigated. Positions were

classified, and not the officers. ( 4) A scheme common to the Commonwealth, with its varying conditions, could not possibly meet requirements. The special conditions of Western Australia did not receive

consideration. ( 5) Many positions were not inspected by the Commonwealth Public Service Inspectors prior to classification, and full inquiries were not marie. ·

( 6) Pre-Federal rights were not recognised. In South Australia the Classification was lower than that of the State Board's dassification of 190 1. (7) Officers in receipt of excessive salaries were not removed to

positions commensurate with their pay. (8) Subdivisions have been created in the General Division, according to salary, and not according to the work (e.g., sorters' grades). (9) Assistants, letter carriers, mail-drivers, and grooms were

classified on the same level, although the work varies greatly in importance. .

( 10) Incorrect designations were used. For example; officers performing telegraphic work were classified as clerical assistants. (11) Officers doing clerical work were graded in the General

. Division.

(12) Officers with clerical status doing General Division work at time of Classification were classified in the General Divioion. ( 13) Similar positions were differently classified (e.g., telegraph

counter work was classified clerical, and stamp and other counter work was classified as General Division).

63

243. Some witnesses requested that the Service should be re-elassifit:.'

244. The Commonwealth Service Commissioner stated that upon the issue of the Classification scheme in 1904, it was recognised tllllt, while a large amount of work had been performed in bringing into aeeord the h eterogeneous elements of Public Service administration brought O\"<•r

from the States, much still remained to be done in perfecting and har­ monising the system; that this has since been kept steadily in view, and a continuous re-appraisement of duties and of officers, together with of rates of pay wherever necessary, has been carried out; that the requpst

made in evidence for a re-classification of the whole Public Service is ha;-;pd apparently. upon insufficient knowledge of the system in operation ; that such a re-classification, instead of being made arbitrarily and at a fixed dnte, can best be secured by continuous investigation, report, and adjustlllent,

and that this is the only business-like way of dealing with a Public Sen-ice such as that of the Commonwealth.

245. The Commonwealth Public Service [nspector of New South Wales stated that salaries were riot reduced, o1· officers retired ll\· tl1v Classification ; and that no injustice was done by the Classification. · This witness stated that before the original Classification officers' work was inspected ; and that General Division officers doing clerical work were uot

classified clerical where there were clerical men available for the work.

246. The Commonwealth Public Service Inspector of Queensland considered that the Classification was con1plete and satisfactory. HP stilted that under State control the Service was built on politicai influence ; tl1at overpaid officers were taken over at their State salaries, but the Service was re-arranged as opportunity afterwards offered, and that there are still some

overpaid officers.

247. The Commonwealth Public Serviee lnspectol' of South Australia stated that if the Service is to be treated as a whole, the Classification must be on one basis with no exception in any particular State ; that the Classi­ fication scheme was founded on the Public Inspectors' recomrnenda­

tions ; that the State Classification of 1901 was never brought into

operation ; that it was according to the Civil Service Act 187 4, .which gave the minimum and maximum salary to each class of officer; and that in 1 \l04 the officers in South Australia were classified on the volume of the work of each office, the s·ame as in the other States.

for

r&-cl&881Aca t1011.

Commonwealth Public Service Commiaaioner' a

statement.

63

New South Wales Public Service Inspector' a statement.

Queensland Public Service Inspector'• vtewa.

South Australian Public Service Inspector' 8 statement.

248. The Common wealth Public Service Inspector of Western western Austre.­ Australia stated that there was no classification in Western Australia prior lian Service d 1

. . I! l · . h d b Inspector 8

to 1904, an that consequently the sa anes m 10rce at t Jat time a to e statement.

taken as the basis ; that the Common wealth Public Service Commissioner had to consider the States where classifications previously existed, and formulate a system to meet conditions obtaining at the various places, and nrrive at a scheme which would be fair to the officers; that Western

Australia was not treated differently from any of the other States ; taat Western Australian officers were under a disadvantage as regards salaries which was adjusted by district allowances ; that seniority was based absolutely on salary exclusive of allowances ; that under State regime

portions of allowances had been in some cases into salaries, but,. so far as the Commonwealth is concerned, this had nothing to do w1th seniority ; that the Commonwealth Public Service Commissioner had reports ·on all the officers from the Ueputy Postmaster-General, and, as n?ne

of these were bad, he had to accept efficiency and good conduct as bemg established. ·

64

Each objection to be 249. Your Commissioners will fully consider each objection made to the existing Classification scheme when the separate divisions of the Service

are being dealt with. Under distinct headings, recommendations will be 'made which will, in their opinion, tend to provide a more equitable 'classification.

I) . " p -·:· ;.-;._;7 ,. . ... ·· ·-· ·· ,._ 250. · Com1)laints were received in everv State that in almost every I " O.fficers doing W01·k above their Gmding. .\branch of the Department officers are called upon to perform, for lengthy Higher grade work ': periods, work of a higher grade than their own status without extra without extra ,) remuneration. This state of affairs is alleged to be occasioned through payment. jwant of a sufficient permanent staff. The only exception in regard to the J' non-p ayment of extra remuneration is that of linemen acting as line foremen, for which duty they receive an extra allowance of £6. I 251. Your Commissioners do not approve of officers performing work above their grades for lengthy periods without additional remuneration. agree with the opinion expressed by the Commonwealth Public Service that it is a good practice, for educational purposes, to allow 61 juniors t o do the work of seniors while the latter are absent on leave ; but, vacancies of per- the work is of a permanent character, vacancies should be filled by manent character of the proper status. In other cases, when officers are called upon should be filled. .. f' d . f l . h d h h ld b . l h 1 h' Clerical work at ueneral Division pay. .:to per vrm utles o a 11g er gra e, t ey s ou e pai< t e sa ary attac mg . to the higher grade, if they are employed therein for a period of three months General Division Officers doing Clerical Work. :.-'1 _, 252. Complaints were submitted that in a number of cases General :Division officers are performing clerical work for General Division pay. '.:This was especially the case in regard to postal assistants. The work ·performed by some of these officers is of such a charactel' that it is difficult to determine whether it is Clerical or General Division work. 253. Further, it was alleged that many of these officers exchange duties with clerical officers, and also relieve postmasters. 254. Your Commissioners are of the opinion that in many instances this class of work is more removed from General Division than it is from officers entitled to clerical work, and that in such cases the offi cers are entitled to clerical clerical status. status. Officers superseded. Commonwealth Public Service Commissioner's statement. Clerical Officers doinp; Genm·al Division Work. 255. Complaints were made by representatives of the Associations in New South Wales, Victoria, Western Australia, and Tasmania that there are a number of officers with clerical status employed in the General Division, these officer3 being regarded as General Division so far as promotion and privileges are concerned. It was alleged that some of these officers had been superseded by others,. who had qualified for clerical · positions more recently·. It was claimed on behalf of these officers that many of them are capable of performing clerical duties satisfactorily; and that in those cases their retention in tht:l General Division is unfair to them­selves, and to the officers in the General Division. 256. The Commonwealth Public Service Commissioner explained that, when the Service was classified in 1904, 672 officers with clerical status were found employed on what was .regarded as General Division work ; that the clerical status of these officers was preserved ; and that about one-half have since been transferred to clerical vacancies, while. some have renounced their claim to clerical grading.

65

2 57. Your Commissioners conside1: that such of these officers as ar<· capable of performing clerical work should be appointed to clerical positions, and should receive preference to other· persons for such positions. Thus<• who do not show capacity for attaining to clerical positions should be gra

definitely in the General Division, thus removing the existing anoma(y.

State Rt'ghts.

258. The representatives of the Post and Telegraph Association in South Australia stated that-(1)

(2)

(3)

F.8564.

The loss of accrued and accruing rights is the South Aus­ tralian officers greatest grievance. Officers were assured before Federation that the constitution effectively preserved rights accrued and accruing, but the compact was broken

by the Commonwealth authorities in every instance, exeept in the matter of retiring allowances. Consequently, a very large proportion of the South Australian ufficers ltav'e suffered monetary losses ranging from £5 to £150 per

annum, and loss of status to such an extent that iJl some cases postmasters with R5 and 40 years' service are juniol' to officers who served under them as messengers. South Australian postmasters, postmistresse:;;, and a number of assistants were deprived of accrued and accruing rights by

the abolition of emoluments under the 1904. Classificatiou. These emoluments were not gratuities. Under the State the officers in question were remunerated partly by statutory salary, and partly by sundry such as Savings

Bank salary, rebate on sale of stamps, and free quarters, which were regarded as part of their salaries. Individual losses range from £1 4s. to £157 per annum, and subsequent promotion has made up the losses in some cases. The total amount involved is about £4,000 per annum, or a total of about £20,000 up to the time of giving evidence.

The hard-earned recognition granted to South Australian officers just prior to Federation was minimised by the Commissioner's action in stopping increments due to them under the South Australian Ci vii Service Act of 18 7 4,

which provides for yearly increments in the various classes. Shortly before Federation (about six months) a number of officers who had been at the maximum of their classes fl)r from five to twenty years were promoted to tbe next class,

entitling them to annual increments of £10 for five years. Ori transfer to Commonwealth these increments were paid for three years, but they were stopped when Parliament approved of the 1904 Classification, and the right to su bse­

quent increments was repudiated by the Commissioner on the Attorney-General's orinion. They considered that if Parliament had been aware of the conditions this would not have happened. Several of the officers received their

increments pending the adoption of the Classification by Parliament, but were subsequently put back to their classified salaries, being deprived of £10 to £4:0 per annum thereby.

In South Australia there was no age limit for retirement prior to Federation. Since Federation the Civil Service Act of South Australia has been amended, making 70 years the retiring age. The Commonwealth Public Service Act

fixes the age at 65. This right should be preserved to South Australian officers, more especially as they have no pension rights. Officers have been retired at 65, thereby losing financially,,

E

Otlleers who shout be appointed to Clerical Division.

South Australian Post and Tele­ graph Association representative's

statement.

65

Alleged decision or High Cotirt.

Deputy Post­ master-General indorses state­ ments.

settlor Postal Inspector cocro bora tes.

Commonwealth Public Service Inspector's · 11tJe.tement.

Commonwealth Public Service Commissioner's explanation.

Request for West­ ern Australian rights to be preserved.

66

259. These witnesses claimed that the High Court's decision in the test cases concerning State rights wHs not logical, and that restitution should be made.

260. The Deputy Postmaster-General of South Australia indorsed the statements of the representatives of the South Australian Post and Telegraph Association, and stated that officers in South Australia have been deprived of privileges which should have remained to them, and that the new rule should have been applied only to their successors. He considered that the sweeping away of the privileges was legal, but '

261. The Senior Postal Inspector of South Australia corroborated the statement that country postmasters have sustained serious loss of money and status through repudiation of State rights, and stated that retirement at 65 years of age works unjustly in absence of pensions ; that under the State no age was fixed ; that accruing rights to annual increments were unjustly stopped through the Classification ; that emoluments· for work done for other departments were considered part of salary under the State ; that these emoluments should have been left to the officers receiving them, and the new rule applied to their successors .

. 262. The Commonwealth Public Service Inspector of South Aus­ tralia stated that Savings Bank work done by postmasters was taken into consideration by the Commonwealth Public Service Commissioner in classi·· :tying offices, and in s0me cases caused raising of grades; that in other

States this work was done without extra pay ; that through the Classifica­ tion postmasters and country officers lost emoluments for Savings Bank work and selling stamps ; and that they were not reduced in salary. . He considered that these emoluments should be paid to revenue, as the work is done in office hours, and is not similar to work of Clerks of Courts, and B.egistrars of Births, Marriages, and Deaths, allowances for which were retained under the Commonwealth. He also stated that postmasters have not benefited by Federation, because the emoluments they drew under the

State were enormous, being as much as the salary in some instances ; that the work was done by the staff; and that in some places the work has been withdrawn because the Savings Bank has opened branches. This witness considered that the officers' claim for £4,000 per annum was not a fair one.

263. The Commonwealth Public Service Commissioner explained that Saving Bank emoluments were not regarded by State Acts as salary ; that the officers having no constitutional rights in the matter were classified uniformly with the officers in other States that the emoluments under th.e

State law were superseded by the Classification, under which Commonwealth benefits were received by the officers. This witness considered that special legislation to secure continuance of these so-called rights was not justifiable, and would involv-e similar action in other States, thus destroying the

Commonwealth classification scheme.

264. Your Commissioners are unable to recommend the introduction oflegislation by the Commonwealth Parliament to overcome the decision of the High Court ..

The representatives of associations in Vvestern Australia stated

that an Act was passed by the State Parliament on 5th December, 1900, providing for three months' leave on full pay, and three months' on half pay, fur every six year's service. These witnesses requested that this right should be preserved under the Constitution and the Common wealth Public Service Act, but, recognising the very heavy expense that would result to the Department by granting this claim, the bulk of the officials were prepared to accept monetary compensation in lieu of this leave of absence. It was asserted that the alleged right was first recognised, and afterwards denied.

67

266. A leading official in Western Australia stated that officers . in Western Australia are di scontented owing to the loss of this long service leave, which they considered a State right. This official further claimed that the loss of f'ree medical attendance and medicine, which was a privilege

under State control, was a · serious one. · ·

2 6 7. The Commonwealth Public Service Inspector in Western A us­ tralia stated-that it had been decided that the long service leave and free medical attendance given in Western Australia coul'd not be regarded as :State rights.

268. Your Commissioners agree with the Commonwealth Public Service Commissioner that the general improvement in salaries and condi­ under the Common wealth . more than compensates for the alleged

disadvantages, and, therefore, they cannot recommend the restoration of these alleged rights.

Technical Division.

269. Representatives of associations throughout the Commonwealth complained that the Classification scheme did not provide for a Techuieal Division. These "Witnesses claimed that the grading of technical officers in the General Division gives little inducement for the best men to remain in

the Service, and alleged that the telephonic service is suffering from the loss of a number of good officers who have resigned on account of the poor prospects in regard to salary ; that this class of work requires educational · qualifiGations at least equal to those of the Clerical Division, a.nd entails

study at outside electrical and engineering classes. This course of study was stated to involve considerable expense. It was chtime.d that junior instrument fitters having to pass an examination constitutes a claim for a higher grade than General Division officers.

2 7 0. Requests were made that a Technical Division should be established to include telephone managers, assistant managers, mechanicians, exchange foremen, inspectors, foremen, instrument fitters, district super­ visors, and foremen of the Electric Light Branch.

2 71. The Commonwealth Public Service Commissioner stated that he objected to the establishment of a Technical 1 Jivision, because the Service is already complicated by the number of divisions, classes, and grades, and the creation of a new division would only serve to intensify · existing difficulties of administration; that delaJS would be in filling

vacancies; ·that General Division officers would complain at having to qualify for transfer to a Technical Division. This witness considered that instrument fitters have no better claim for inclusion in a special division than have carpenters, blacksmiths, and painters. He was of the opinion

that a Telephone' Manager's main qua1ifications should not be technical.

272. The Commonwealth Public Service Inspector of New South Wales stated that objection to classification in the General Division is largely sentimental; that if a Technical Division be created, higher pay and greater privilP-ges would not necessarily follow.

2 7 3. Your Commissioners, while recognising the great importance of the technical section of the Service, cannot recommend the fol'mation of a Technical Division, as it would only tend to a further complication of an already over-graded Service, but consider that if the Board of Management

as recommended be appointed action would be taken to adapt the Classifica­ tion to the requirements of the Service. Under the various divisions of the Service, your Commissioners have made recommendations which, if, will obviate the continuance of many of the objections referred

to by the associations' representatives. E 2

Loss of tree medical attendance.

Alleged rlghta not to be restored.

Grading ot technical ol!lcers.

Objection to estab­ lishment of Tech· nical Division by Commonwealth

Public Service Commissioner.

New South Wales Inspector's view.

RecoJllmenda tion.

67

Long service in· crements provided.

Complaints of block at £160.

Further complaints.

Clerical Division.

7 4. The Comnwnwealth Public Service Act, secti011 19, ptovides

that-

The Clerical Division shall be divided into five classes. Each of such classes shall be subdivided as set forth in the

Tl1ird Schedule to this Act aJJd the rate of salary of an officer in a subdivision of any such class shall be that assigned to such subdivision in such Schedule. 'l'HIRD. SCHEDULE.

ScALE s HOWING RATEs OF ANNUAL SALARIES o.F 0FFI(;E R S or•' THE CLERICAL DIVISION.

Class.

First Class Second Class Third Class Fourth Class

Fifth Ciass J

l

Fi"t.

Subdivision.

£

520 420 310 185

40 50 60

Second Su bdivision .

£

540 440 335 :!10

,( 80

I l I

Annual Salary of Subdi\'ision of Cln•s.

Third Fourth Fifth 3ixth

Subdid sion. Subdi rision . I Subd i vision. Subdivision.

_ __ j

I

£ £ ! £ £

560 580 600

460 480 500

360 380 400

235 260 285

100 120 140 160

2 7 5. Since the passing of this Act the maximum of the Fifth Class (£160 per annum) has been increased by two long service increments of £10 each, the first after three years' service on the former statutory maxi­ mum, and the second after two years further service.

276. Represenbttives of associations complained that a considerable num her of clerical officers remain stationarY at the maximum of the Fifth Class, with little prospe<:>t of advancement ·to the Fourth Class. It was stated that there are 700 officers in the Service who nrc so situated.

2 7 7. The representative of the New South Wales Professional and Clerical Officers' Association stated that there were in that State 114 clerks in the Fifth Class, and only 31 had been promoted since the inception of Federation. Some of these officers had given from fourteen to thirty years' service. This witness consi.dered that the long service increments to £180, while a present boon, may militate against officers obtaining promotion to the Fourth Class ; that there are a number of Fifth Class clerks performing Fourth Class work, but their promotion is blocked because the Commonwealth Public Service Commissioner considers that there is a preponderance of Fourth Class over Fifth Class officers.

Suggested amend­ ments of Act.

::Maximum salary q),esired.

(06ll1DUlnwealth Service

•Commissioner 's :Statement.

Z 7 8. It was suggested that section 21, sub-section 3, of the Act should be amended to provjde for two yearly increments of £10 to officers after they attain a salary of £160 per annum; that section 23, sub-section 1, be amended to provide for promotion to Fourth Ciass where Fifth Class officers have done Fourth Class work for six months or more.

279. Some leading officials considered that the maximum salary for Fifth ·Class clerical officers should be £200 per annum ; the· increments not to be statutory, hut subject to passing non-competitive practical examinations.

280. The Commonwealth Public Service Commissioner considered that .Fifth Class officers receive adequate remuneration. H e stated that their positions are classified on work value, and not on length of service, and that officers cannot advance beyond the Fifth Class without reference

69

to work -\ralue or capacity; that the percentage of officers in the Clerical Division above the Fifth Class is 50 per cent., so that there can be no block at the maximum of the Fifth Class. This witness considered that manv Fifth Class officers in the Postal Department are unfit to perform highe'r

grade work. He was of the opinion that increases of £20 annuaJly are too liberal, and considered that for the first five years' service increments of £10 each would be sufficient, the present advancement being so rapid that officers complain when stopped at the maximum of the Fifth Class.

281. The Commonwealth Public . Service Inspector of New South Wales stated that the salaries of Fifth Class clerical officers are higher than they were under State control. He expressed the opinion that th'ere is an enormous amount of routine clerical work not worth more than Fifth Class

grading.

282. Your recommend that the maximum of the Fifth

Class be increased to £:WO per annum; that advancement to £160 by statutory increments remain as established; and that increases beyond £160 per annum be at the rate of £10, subject to work value, good conduct, and efficiency. ·

283. Your Commissioners also recommend that, should the scheme of proposed management be adopted, the t;taff Committee be empowered to recommend all increases beyond £160 pE>r annum.

HRADS OF BRANCHES.

Commonwealth Public Service Inspector • a statement.

Recommend& tiona.

284. Your Commissioners consider that the utmost care and Discrimination discrimination are necessary in appointing officials to positions as heads required. of branches, in order to insure that these positions shall be filled by competent officers who would exercise their responsibilities in matters of

administration and control.

285. Evidence was obtained that in many instances these officers did work of a minor clerical nature which could have been performed by junior officers.

286. Many of the heads of branches were unable to properly supervise the work of their subordinates. This was largely due to want of space, and the faulty arrangement of the office accommodation at their disposal. This matter will be dealt with in this Report under "Buildings and

Accommodation."

287. Your Commissioners failed to recognise in many of the ·officials now holding positions as head of branches the possession of the qualifica­ tions requisite to properly control their branches, and they are of the opinion that these officers r{'lied to a very great extent on the abilities of their

subordinates. In arriving at this conclusion your Commissioners did not confine themselves to the evidence of these officers, but in every State made a personal inspection of their branches.

288. Being impressed with the unsatisfactory condition of affairs in this respect, your . Commissioners asked superior officers to explain the reason for appointing to such positions officers not of the highest standard. The reason given by the superior officers was that the heads of branches

were the best available at the time of appointment.

289. When it is realized that under the present system the heads of branches are immediately in the line of promotion to the higher executive positions in the Service, the 9f position ·iii

obvious. ·

Serious state or aft' airs.

Requisite qualifi­ cations lacking.

Reasons for ap­ POiP.tml)nts liesired.

69

70

290. Your Commissioners are of the opinion that this lamentable state of affairs is the result of adherence to:the of promotion by

Baneful influence seniority, and they consider that investigation would reveal the presence of of seniority. many other officers in the Service with the necessary qualifications to fill

Importance of inspectors.

Position unattractive.

Staffs inadequate.

Neglect of inspection.

Neglect to pcovide 1f1spectors.

matters

take up time.

these important positions. ·- ·-'"-· .. " ....... -.. -- , . ...

. 2 91 Your Commissioners consider that the proposed Board of

Management, if appointed, would speedily remedy this condition of affairs.

INSPECTORS.

292. Your Commissioners attach great importance to the office of Inspector, as it is solely from the inspectors that the Deputy Postmasters­ General are enabled to obtain reliable ad\ri ce as to the efficiency or other­ wise of the services in the branch offices. It is only by the closest scrutiny of the working of the branch offices that it is possible for the Department to ascertain whether the services are being effectively administered.

293. The very large districts and sparse settlement in Australia render the duties of inspectors very arduous, necessitating almost constunt travelling, which makes this position unattractive to many competent officials in the Service.

2 94. Your Commissioners consider that the present inspection staff is not adequate. The following table shows the inspection staffs of the various States :-I

I No. of Clerks. N". of I No. of State. Districts. I Inspectors. I New South Wales 7 I 9 l 1 Victoria 3 I 4 7 Queensland 4 I 6 4 South Australia 2 l Western Australia 4 I 5 6 TasmP.nia ... I 1 I 295. The Auditor-General stated that, during the year 1907-8, 1,072 offices in New South Wales, 300 in Victoria, 139 in Queensland, 30'3 in South Australia, 53 in Tasmania, and 22 in Western Australia were not_ inspected. 296. The neglect of such an important duty as inspection must be condemned, as it prevents an effective check on the accounts of country offices, and completely precludes the Department from possessing any knowledge of the efficiency or otherwise of the branches. It was acknowledged that some offices in New South Wales had not been inspected for a number of years. Inspection to be effective should be both frequent and systematic. 297: The continuous neglect of inspection is alleged to be the result of shortage of staff, and vour Commissioners consider that the Central Executive has been remiss in its duty in neglecting to make the necessa:y provision for an adequate inspectorial staff. . 2 9 8. The evidence discloses that the district inspectors have been employed on matters of a trivial nature (such as deciding the limitation or extension ofletter carriers' beats) to the neglect of more important work. . 299. The inspectors should be empowered to decide minor matters locally, instead of reporting to the Deputy Postmaster-General.

. 71

300. Requests were made by several witnesses that senior inspectors should act as reviewing officers of the work of district inspectors prior to the submission of their reports to the Deputy Postmasters-General. Your Commissioners are unable to recommend the adoption of this practice.

301. In this Report recommendations have been made which, if adopted, will enable .the Deputy Postmasters-General to obtain a closer personal knowledge of the branches under their control, and of the ne<·essity for increased facilities as reported on by the inspectors.

302. Senior Inspectors, in addition to their inspectorial duties, are responsible for the s.upervision of the caretaking and cleaning staffs of thP General Post Offices. Your Commissioners consider that this duty shonl

' , -, '

Senior Inspector no' to be

olllcw.

Removal or l.nap. proprlate duties rrom senior inllpector.

71

303. The designation "Senior Inspector" should be abolished, and Deslpatton NDior that of "Metropolitan Inspector" substituted, ==ry.

304. At present the inspectors' districts are too large and unwieldy to allow of reasonable inspection.

305. Your Commissioners recommend that the inspectorial statt' of Smaller dlatrlcta the Department be considerably augmented, and that smaller districts h<:: required. ·

306. Evidence was given to the effect that there was a strong disinclination on the part of officers of a suitable standard to apply for tl1e position of inspector, particularly for country work) and it W!lS contended that the salaries attached to the office are not sufficiently attractive to

obtain the class of officials required. Your Commissioners recommend that the Inspection Branch be staffed with high-class officers with commen· surate salaries.

High clau ollcml wanted.

· 307. Because inspectors are brought into close contact with puhlie =:::ctora and requirements these officials should be discriminative, and p0ssess progressive reqniremente. ideas.

308. For the purpose of more effective inspection your Commissioners Recommendatio11L recommend that-( 1) Each State be divided into smaller districts, to all ow of regular inspections.

(2) ,Each office b.e inspected at least once a year, the more important offices half-yearly or quarterly, according to their importance. ( 3) The metropolitan district be more strictly confined to the actual metropolitan ::trea; the in.spector in c;h;trge thereof not

to have control over district inspectors. ( 4) The position of Senior Inspector be abolished. (5) The Deputy Postmasters-General he responsible, for the inspec· tion of General Post Offices.

(6) Other arrangements be made the performance of the follow­ ing duties now undertaken by the senior inspectors :-(a) Inquiries re missing letters . . (b) Control of caretakers and cleaners.

(c) Control of messengers {supervisor of messengers to be appointed). (d) Boards of Inquiry and Appeal. (e) Condemned Materials Board. (f) Annual mail contracts. (g) Supervision of letter deliveries (inspector of letter carriers

to be appointed),

Officers not suf­ ficiently qualified.

Department remiss.

Methods not uniform.

Spasmodic attempts of Department.

System of book­ .keeping faulty.

Annual balance­ sheet required.

Difficulties.

72

(7) Each district be in charge of a comuetent inspector with sufficient clerical assistance. .l

(8) Inspectors to report direct to Deputy Postmaster-General, but all minor matters to be decided locally, ( 9) Deputy Postmasters-General should visit districts themselves when necessary. ( 10) Inspectors be transferred triennia11y from district to district.

(ll) Arrangements be made with the Auditor-General to furnish postal inspectors with copies of audit reports on accounts of post offices, in order to avoid duplicate auditing.

AccouNTANCY BRANCHES. Accountants.

3 0 9. The Accounts Branches of mnst of the States are controlled by officers not sufficiently qualified in the work of accountancy. As these officers should be the financial advisers to their respective Deputy Post­ masters-General, it is essential that they should be of a high standard of proficiency. The necessity for efficient methods of accountancy is recognised by all mercantile concerns, 'hnt the Department has been lamentably remiss in failing to obtain the class of official requisite for the effective performancP- of these duties.

Unijormity rif Accounts.

310. As shown in the sections of this Report dealing with ment and Finance, the bookkeeping methods of the State branches of the Department are neither uniform nor satisfactory. Your Commissioners have already recommended the inauguration of a proper system of keeping accounts by the establishment of a capital account, and the allocation of expenditure between the several branches. Spasmodic attempts have been made by the Department to secure a uniform -system of accounts. The Committee which was appointed in 1908 for the purpose of attaining this end appears to have relinquished its efforts; although it was stated in evidence that its report would be ready in the early portion of last year.

311. The evidence discloses that there has not been a proper system of bookkeeping set out for the guidance of the Accountants in the States branches of the Department. This is a serious dereliction of duty on the part of the Central .Executive, and action should be taken to remedy the omission at the earliest possible moment. Your Commissioners consider that the establishment of a proper and uniform system of bookkeeping would result in economies, and that this matter should have received the early attention of the Central Executive. Your Commissioners recommend that this work he immediately undertaken by the Chief Accountant.

Balance-sheet.

312. It should be the duty of the Chief Accountant to prepare an annual balance-sheet showing the finar..cial position of the postal, telegraphic, and telephonic sections of the Department. To attain this object it will be necessary to keep separate accounts of the expenditure of each of these three branches.

313. It was stated that the main difficulties which prevented the Department furnishing the required financial information were-(1)

(2)

(3) (4)

The employment of the same officers in the work of each branch of the Service, and the consequent difficulty of apportioning their salaries. The separation of expenditure on account of telegraph and

telephone maintenance and repairs. The absence of a knowledge of the capital outlay. The absence of a basis for apportionment of expenditure on sites,, and rent the poetal, telegraphic

1 aml

telephomc semces, ·

73

314. The a"Qove-mentioned difficulties are admittedly serious, hut. in the opinion of your Commissioners, they are not insuperable, and a determined effect to overcome them must be no longer postponed. Since the commencement of this inquiry it is reported that the Dep:utment has

attempted to overcome the difficulties mentioned.

315. It is most essential that the Department should be ahle to sbow

Determined eflon needed.

the finnncial position ofits branches, and the following recommendations are Rocommondatlons. made for the att..

(2)

(3)

(4)

Expenditure on account of salaries, wages, and contingeneit•s for postal, telegraphic, and telephonic services should he kept separate. Wlwre officers perform mixed duties a reeord should be taken of the time spent on each section for a tixPtl

period, such record to be made the basis of the apportionntt>nt of their salaries, subject to review from time to time.

Expenditure on account of telephonic and telegraphie mainten­ ance and repairs should be shown separately in the appropria­ tions, and in the departniental accounts.

The capital account has now been approximately determined hy the valuation of the transferred properties, together with expenditure on new works and buildings since Federation. The statistics quoted in this connexion in the Finance settioll

of this Report should serve as a basis on which to caleulatc the capital outlay of the Department.

Rent of buildings and interest and depreciation on on buildings and sites should be apportioned between the three sections of the Department on the basis of the space occupied by each section.

11£oney Orders and Postal Notes.

316. The volume of money order and postal note business transaeted shows great development, particularly in connexion with postal notes, as is shown by the following table :-

Year.

1901 .. .

.. .

1909 .. .

Year.

1901 .. . 1908 .. . 1909 .••

M on ey Orders .

Nu m l.Jer and Value.

Commh;slon .

Issued. r a id .

------ -----·

No. Yalue. N o. I Value.

1 ,3lK,000 £4,1!:13,000 1,339,000 1.£4,082,00 (1 ! *

1,437,000 £5,i33,000 1,402,000 £5,725,000 £49,986

1,459,862 £6,003,2ti5 1,4 25,35'/ £5,934,614 "

Notes .

:Kumher nnd ·value .

- - - - ----t.--- --- --- ----- - ---··· l'ound a

Issued.

N o.

3,507,000 6,32 1,000 6,874,0!:!6

Value.

£1,290,000 .£2,392,000 £2,.j94,928

P a id .

! --- ----- --- ---- - -

!{o.

3,505,000 ti,321 ,ooo 6,874,175

Va lue,

£1 ,2!:HJ,U00 £ 2 392,(100 £2,595,138 ! .£46,419

..

* In the i\nancial year 1901-2 the commis5ion Of! mon ey onl{lrs pouudp,g(l post!ll tontn!lr to £88,169, .. qd tn to ·

73

74

Money order work. 317. The opinion was advanced by some witnesses that money order

Telegraph money orders.

:Foreign money orders.

Swiss system of paying money orders.

Paying and collecting country accounts.

Money order offices to be closed Sa.turdays noon.

Simplification of system·

Duties to be transferred.

business i s quite distinct from th e ordinary work of the Post and T elegraph Department, a nd that it should for m part of the functions of a Post Office Savings Bank, if such were established. Other witnesses suggested that this work should be removed from the accountants' branches, and be formed into a separate branch. In view of the great public facilities afforded by the postal note and money order branch of the 1 }epartment, your Commis­ sioners cannot recommend any alteration of the present practice.

318. In some of the States requests were made that the Department should advise the payee of the remittance of telegraphic money orders, and that the presE.nt system of requiring two messages, at the expense of the remitter, should be discontinued. Your Commissioners consider that the

present system is preferable.

319. A witness a commercial firm in New South Wales

complained that the commission charged on money orders to Europe is four times as much as from Europe to Australia, and alleged that certain moneys now remitted by bank drafts would, under reduced charges, be transmitted through the Money Order Branch. Your Commissioners are unable to recommend any alteration in these charges: because the necessary financial information to form an accurate opinion on the question is not available.

320. Another witness stated that in Switzerland money orders are paid to the addressees by letter carriers. Your Commissioners recognise the advantage of this system, which saves the payee the trouble of

presenting the money order at the post office, and consider that, if pre­ cautions are taken to prevent fraud, a similar practice could be adopted in the Commonwealth. ·

321. Only in New South and Queensland does the Department use the Money Order Branch as a medium for paying and collecting accounts in country districts. Your Commissioners approve of this system. as it is an economical method, and recommend that . it be made uniform throughout the Commonwealth.

Closi'!ig ,}JoneJJ Order Offices at Noon on Saturdays. 322. A considerable amount of evidence was tendered by official witnesses, mostly in New South Wales, in support of closing money order offices at noon on Saturdays, of 5 p.m., as is now the practice.

Your Commissioners recommend that money order offices be closed at noon on Saturdays, as is now done at the · General Post Offices. If the weekly half holiday is not held on some other day in the week the public would be put to very little inconvenience by closing money order offices on Saturdays at noon.

Telegraph Checks.

323. The present practice of check-ing telegraph revenue is to select nine days in each month by ballot, and to audit the telegraph business of those days. Your Commissioners consider that one day each week, selected promiscuously, would be as effective as the present system, and would save .about 50 per cent. of labour in checking, and recommend accordingly.

Your Commissioners · recommend that a similar check on trunk line telephone conversations should be adopted.

Certifying and AuthoTizing Officers. . 324. It '\yas stated in evidence .that much of the time of Deputy Postmasters-General is occupied in signing vouchers as Certifying Officers under the Treasury Regulations. Your Commissioners are of the opinion that this work more naturally appertains to the State Accountants, to whom it should be transferred. The .work of Authorizing Officer (i.e., authorizing

the payment of accounts), now performed by the Department's State Accountants, should be transferred to the State Accountant's immediate subordinate.

75

Registration rif Accounts.

325. The Accountant oftheNew South Wales Branch expressed the opinion that the alphabetical register of accounts, prescribed under the Treasury Regulations, is unsuitable for so large a ·branch as the Genernl Post Office. He stated that the New South Wales Accounts Branch dealt

with 30,000 to 40,000 accounts each year ; that the present register l:u·ks completeness as a record ; that it is cumbersome as a check against douhh• payments, and that it entails an enormous amount of clerical labour. HP recommended a reversion to the former system of keeping · copies of accounts.

3 2 6. Your Commissioners are not in favour of imposing upon the public the duty of rendering claims in duplicate, and consider that til<• making of copies. of all accounts by the departmental officers would · as much labour as entering the accounts in the register.

32 7. In respect to the completeness of the record in the register, uo difficulty should be experienced in entering the accounts in sufficient detail to attain this end. For the purpose of providing a safeguard against the danger of double payments, .which arises from the number of accounts dt.•alt

with, your Commissioners suggest that a separate heading under the proper letter be kept in the present register for each person whose transactions with the Department are numerous.

Work rif Appointment Branch.

328. The Accountant in New South Wales complained that, under an amalgamation SC'heme, work was transferred to his branch from the

75

' ,... . ......

:Method ot rert&­ tratlon unsuitable and cumber110me.

Alteration not recommended.

System recommended.

miscellaneous and appointment branches. Your Commissioners consider Appointment that the work of an appointment branch, dealing, !tS it does, with staff' 1l114er

matters, should be immediately under the control of the Deputy Postma-ster- masters-General. General, as is proposed by your Commissioners in the section of this Report dealing with the duties of Deputy Postmasters-General.

Statistical WO?'k.

3 2 9. Statistical work should be delegated to a special section of the Accounts Branch, which should be responsible for the collection of statistics under the direction of the Chief Accountant, as recomme11ded in paragraph 223 of this Report:

MAIL BRANCH.

Superintendent rif Mails.

330. In everv State there is attached to the General Post Office an officer entitled of Mails, and in the two more populous States

provision is made for an Assistant Superintendent of Mails. Several of these officers com}llained that they were eonfined too dosely to clerical work Too much clerical - work. to the neglect of supervisory work. Your Commissioners consider that the supervisory work of the Superintendent of Mails should receive primary attention, and under the section of this Report dealing with the responsi­bilities of heads of branches definite recommendations have been made. E.rpeditimts Handling rif Mail Matter. 331. The present practice is to convey mail matter arnvmg by and train to the respective General Post Offices for sorting or despatch. This imposes on the Department the re-conveyance of a able part of the mail matter to the railway stations and the wharfs. Th1s practice is a most expensive way of conducting the business, and involves considerable delay. Expensive and slow methods.

Jtecent action in Sydney.

Mail depots at railway stations.

76

332. Your Commissioners are aware that siuce the coinmenccment of this inquiry attempts have been made to cope with this aspect of the question in Sydney by securing accommodation for a Mail Deput at the l'entral Railway· Station.

:333. Your Commissioners recommend tl1at, for the purpose of expedition, in all the capital cities and large provincial towns accommoda­ tion should be secured adjacent to the principal railway stations for the receipt and despateh vf country and Inter-State mails. To render this proposal more etfecti ve, your Commissioners recommend the sorting of all Inter-State mails on the trains, and the installation of a pneumatic tube service between the proposed Mail Depot and the principal offices. Sorting to be done on trains. 334. In regard to inward oversea letters nrriving by the English

mail, the practice is to sort the letters on the trains between Adelaide and Melbourne, Melbourne and Sydney, and 'Vallangarm nnd Brisbnne. .Yolilr Commissioners consider that it would be advisable to sort tl1e English inward mails, as far as practicable, on the mail stenmer between Fremantle ami Adelaide. This arrangement, if adopted, would enable the South

Australian portion of the mails to be delivered on the day of arrind. These mails usually arrive at Adelaide on a Saturday, :md under the present practice are held over until the following Monday. The . sorting of the inward English mail on the steamer instead of on the train would provide increased facilities for sorting the Inter-State mails in transit. Arrauge­ ments should also be made for Inter-State letters to Hobart to he sorted in the train betweei1 Launceston and Hobart.

Advisable to sort English mail on steamer.

Different methods adopted.

Cost of motor service in Sydney.

Motor service in Melbourne.

Recommendation.

Additional letter deliveries.

Transport qf Jlfail Matter.

335. Two systems are adopted by the Department for the transport of mail matter. In Sydney and Melbourne this work is done by the ·

Department, whi!e in all the other State capitals it is done by contract. In Sydney the transport of mail matter is by horf'c :md waggon, while recently in Mel bourne experin1ents have heen made with motor traction. .

336. The Deputy Postmaster-General of New South Wales furnished your Commissioners with an estimate showing that the annual extra cost of a complete motor service for the city of Sydney, to replace horses and . waggons, wou1d be about £7,500 per annum ; but, in the opinion of your

Commissioners, the charges for depreciation in this estimate are considerably overestimated. ·

3 3 7. From an estimate of the relative cost of horse and motor traction in Melbourne the Deputy Postmaster-General of Victoria concludes that there is an annual saving of about £30 per motor. In addition to

economy, motor traction confers the great advantage of expedition. In view of the practical experience of the transport of mail matter in .Melbourne by motor cars, your Commissioners recommend the use of this class of traction for mail transport purposes in Sydney and Melbourne.

338. \Vhen the postal business in other capital cities increases sufficiently, the substitution of motor traction for the existing contract system should be considered.

Mail Deliveries.

339. It was di scovered that certain anomalies exist in connexion with mail deliveries in the capital cities, notably in Brisbane and Sydney. In Sydney there are three mail deliveries daily as against four in Melbourne. Your Commissioners consider that a uniform practice should be adopted, and Sydney supplied with an additional delivery. The delivery of letters in Brisbane could with be re·arranged, and additional deliveries established.

77

Mail Contmcts and Contractors.

340. It was alleged by a Central Executive official that tltc cost of the conveyance of mails by rail throughout the Commonwealth has increased since Federation by £50,000 a year. An official in New Soutlt W stated that there was an increase in the mail contracts fol' tlmt State

for the :{ear 1908 over 1907 of 20 per cent., and for Hl09 an inct·ease of per cent. over 1908, amounting to about £7,600. It was also allt•ged

by an official in Queensland that mail contractors combined witlt a view to obtain higher prices.

341. Your . Commissioners consider that tlJe above-mentioned increases cannot be solely due to the necessary provision for a number of mail services, and to incrc>ased rates of wages. ThPy at'l' of the opinion that this aspect of the mail services should be compll't<·ly

reviewed, and in place of mail contracts being fixed for one year th(•y should be extended.

342. Your (" ommissioners are also of the opmron that a Board of Management would effect considerable economies by a more business-like treatment of this question.

343. It was stated by a witness in Kalgoorlie, Western Anstrnlia, that a driver employed by a local mail contractor was paid £2 a week, wlticlt is be1ow the local rate. The outside rate for similar services was said to lw £3 lOs. per Mail contracts provide for the payment of current rates

of wages by contractors, and your Commissioners consider that the Depart­ ment should rigidly enforce this provision.

34:4. A complaint was made in New South Wales that some mailmen employed in country districts cannot read and and that the regulation in this respect was disregarded. The truth of this statement was deniPd by the senior inspector of that State. Your Commissioners consider that care

should be taken hy the Department to see that this regul::ition is observed.

Registered Letters.

345. A request was submitted that the Department shoulcl issue receipts for registered letters instead of requiring the to make out n, form in duplicate. Your Commissioners cannot recommend any alteration of the present practice.

346. Evidence was received t!tnt in Sydney the practice is for the General Post Office letter carriers to obtain receipts for registered letters in a book, while suburban letter carriers obtain such receipts on slips. Witnesses alleged that, although not possessed of facilities for preservation

of receipts, they are responsible for the same for a period of six months. Your Commissioners recommend the extension of the General Post Office practice to nllletter carriers, and that when handing over receipt books a receipt should be given to the letter carriers.

347. In the United States of America letter carriers are empowered to register letters in residential suburbs on receipt of the usual fee. Your Commissioners are of the opinion that this practice could with considerable public advantage be adopted in the Commonwealth.

Unclaimed Mail Matter.

77

\ ,..... '

Increased cost ot maU services.

Complete review or mall servic:et needed.

Current rates ot should be

enforced.

Regulation shoul.d be observed.

Registered letter receipts to be untronn.

348. Complaints were made by representatives of certain commercial Delays. firms in Sydney tliat considerable delay occurs in returning unclaimed trade mag·azines, which causes a loss to senders. It was claimed that this class of mail matter should be returned within a month.

Close adherence to regulation recommended.

Distribution to charitable institutions.

Forwarding of letters to dead letter office.

Departmental practice upheld.

Alleged abuse of poste restante privilege ..

?S

349. Your Commissioners recommend the close adherence to the t-egulation goYerning this matter, which provides for the return of the articles within a month, and further recommend that postage be imposed on the return of such matter.

350. The existing practice of the Department is to return undelivered papers on payment of postage, otherwise they are destroyed. Your Com­ missioners approve of the system of imposing postage on returned papers, but recommend that, instead of destroying undelivered papers, a portion should be distributed to charitable institutions, and the balance sold a!'! waste paper, as is the practice in the United States of America.

351. In the principal offices the practice of the Department is to "call out" the addresses of undelivered letters to the assembled letter carriers, in order to ascertain if the addressees are known. If the addressees are not known, the letters are kept in the Post Office from one to four months, and if not claimed are eventually forwarded to the Dead Letter Office.

Your Commissioners recommend that if the calling out of addresses proves resultless, the letters should be immediately forwarded to the Dead Letter Office.

Trade CircvJars addressed to "Householder." 352. A request was Country Storekeepers' Associatiop.

of New South Wales that city firms .should not be allowed to post pric9 lists and catalogues to. country towns addressed simply ''Householder," but that the full name and address should be insisted on in each case.

353. Your Commissioners cannot recommend a departure from the present praetice, as the suggested alteration would be a restraint of trade, and would impose considerable labour and expense both on the sender and the Department. ·

Poste Restarde.

3 54. It was stated in evidence that the privileges of having letters addressed care of the Post Office, "to be left till called for," was abused, and that this privilege should either be limited or alJolished.

3 55. Your Commissioners are of the opinion that the poste restante is a privilege more intended for the accommodation of strangers and travellers, and not for lengthy use by constant callers.

Rc:>mmendations. 3 56. Your Commissionersrecommend that the privilege free of cost should not be extended beyondsix months. Beyond that period a charge should be made by the Depa:ttinent for the service rendered. To minimise the possibility of the poste restante being used for. other than legitimate purposes, letters addressed to initials or to palpably names should not be accepted. ' ·

3 57. In regard to letters to your Commis­

sioners recommend that after the expiration .of three months these letters should be forwarded to the Dead Letter Office.

358. In cases where former box holders desire their letters to be addressed to posle nstanle the present practice of holding such letters indefinitely should be discontinued, and the privilege of holding letters until called for should be limited to a period not exceeding one week, after

which period such letters to be forwarded to the Dead Letter Office.

3 59. Circulars, papers, and all printed matter similarly addressed as in th,e precl:'ding section, should remain at the po.

79

Letter Bo.xes.

360. It was stated that the delivery of letters would be expedited if householders in towns and cities were compelled to provide letter·boxt>s. The Deputy Postmaster-General of New South Wales stated that in that State, if houses are more than · I 00 feet from the pathway, they must he

provided with letter-.boxes.

79

. ,.,

3 61. Your Commissioners recommend that the Post artd Telegraph Act be amended to make it compulsory on householders iu cities and towns to provide letter-boxes, wh ere residences are more than 50 feet from the pathway. By such a provision a considerable amount of work would he

removed from letter carriers, and the more expeditious delivery -of letters would result.

Letter-boxes to be provided.

Inquiry Fee for JJ/issing Art·icles.

362. Complaints were received regarding the imposition of an inquit·y fee of for missing postal articles. Instances were given where firms refused to meet this charge. Apparently there is no legal means of enf(m·­ ing it. Your Commissioners consider that this charge is both exacting and

irritating, and they recommend that it be abolished. As the fee is a Postal Convention matter, arrangements should .be made by the Postmaster-General to have it annulled. ·

Mail Bags and Seals.

363. The practice adopted by the Department is to seal mail bags

Fee shoUld bo abolished.

with sealing wax and tape. Your Commissioners consider this is a primitive Primitive system. system, and it appears to be to the health of the employes. It

was stated that in the United Kingdom and in other European countries lead seals are used for sealing- mail bags in preference to. wax, and this .is claimed to be a more economical method. Your Commissioners recommend Recommendation. the adoption of lead seals.

364. Fot mail bag labels the uniform practice in the Commonwealth is to use the Cole-Bentley label, which was adopted on the reports of Deputy Postmasters-General and senior inspectors. Your Commissioners were shown by an official employed at the General Post Office, Sydney, a model of a reversible label (hearing nap:1e of sending and receiving office) inserted Reversible label

in a metal sheath attached to a ring fastened to the of the mail bag. recommended. Your Commissioners consider this style of label an improvement on the one in use1 and belie\'e that its adoption would effect considerable savings.

Packet and Parcel Post.

385. The postage rate for ordinaty packets is ld. for every 2 ounces or fraction thereof. The weight is limited to 5 lbs. For parcels the Intra­ State rate is 6d. for the first lb., and 3d. for each additional lb.; for Inter· State parcels, 8d. for the first lb., and 6d. for each additional lb. The rate for oversea parcels is higher, ranging from ls. upwards per lb. The limit

or weight is 11 lbs. .

366. Packets, unless registered, are posted in the usual way . in a posting box or pillar., Parcels cannot be posted at posting boxes oi.' pillars, but must be banded in at a parcel post office. The Department enters all parcels, and forwards them with a waybill, and obtains receipts frotn

addressees. This involves considerable labour. Parcels a.re practically treated as registered lette:rs at lower rates of postage than unregistered letters. This is an anomaly.

36 7. Many officials did not favour the parcel and packet post. being separate services. It was suggested that houses when forwarding should. furnish a duplicate list instead of the Department making out

Parcel and packet rates.

Posting of packets and parcels.

80

How £1,000 a year could be saved.

the list, the origiual to he retained by the Department, a.nd the duplicate returned as a receipt. A witness alleged that at least £1,000 per annum would be saved by the Department in the Victorian office alone if the practice of entering were abolished.

Abolition of elaborate, expen­ sive, and cumber­ some method.

368. Your Commissioners consider that the existing practice of treating parcel8 and packets as distinct services should he abolished in the interests of economy, and recommend that parcels should be· treated as packets, thereby Rholishing the present elaborate, expensive, and cumber­ some method.

Extent of compensation.

Extension recommended.

Responsibility and strain on sorters.

Commonwealth Public Service Commissioner's opinion.

Qualifications of sorters.

3 6 9. Your Commissioners consider that the adoption of this recom­ mendation would result in considerable savings by the Department. The amalgamf!tion of the parcel and packet post ·would necessitate the remodelling of the rates, but, as your Commissioners have shown in paragraph 151 of this Report, they are unable to recommend a new scale of charges.

Departmental Liabilit1J:

370. Compensation for losses is confined to insured parcels, and to registered letters, packets, books, and newspapers. In the case of registered articles, the compensation which may be paid is limited to £2 in any one case. A leading official expressed the opinion that the Department escapes too much responsibility, and that the public should be more generously treated.

3 71. Your Commissioners recommend that the Post and Telegraplt Act be amended to give the Postmaster-General discretionary power to increase the indemnity for loss of registered articles, and to grant compensa­ tion for losses ' proved to be occasioned by telegraphic errors, or avoidable delays of messages, caused by the neglect of the Department.

LelteT Sorters' Duties.

3 7 2. Your Commissioners received evidence from representatives of Letter Sorters' Associations in every State of the Commonwealth except Tasmania. These witnesses asserted that their work involved a consider­ able amount of responsibility, imposed a sustained physical and mental and required almost complete concentration.

373. Further, it was stated that the work has greatly increased since Federation without provision being made for a commensurate increase of staff'. The Commonwealth Public Commissioner stated that the

work of sorting did not require a high mental equipment, and that there was not a great mental strain ; that it is a matter of memory principally ; that after a time a sorter can almost shut his eyes and throw the letter on one side ; and that " it strikes one at once that there is no great strain on the brain of the sc>rter."

37 4. Your Commissioners' opinion on this matter is that to efficiently perform the duties. of a sorter visual and manual dexterity, combined with accuracy and concentration of attention to prevent missorts, are essential. Your Commissioners do not consider this class of work merely automatic. Further, officers must, in order to be able to pass the sorting test and satisfactorily perform the work of sorting, possess ready and retentive memories. The extent to which the memory is taxed may be appreciated when it is known that the numbers of post towns sorters are required to memorize are as foliow :-

New South \Vales Victoria Queensland ... South Australia Tasmania Western Australia .. •,

2,438 2,363 1,437 665

421 368

811

S'i 5. to be efficient also require to possess a

geographical knowledge.

Jl1etlwds ol Sorting.

3 7 6. Since Federation the system of bag sorting, as recomnwnd('ll by a Sorting Committee in 1904, has gradually been adopted in all the large cities of the Commonwealth. Delay in its adoption in some plal"l'S has been occasioned by insufficient accommodation. This matter will lw

more fully dealt with under "Buildings and Accommodation."

3 7 7. Your Commissioners recommend that in the larger suhurl,an offices the system of night sorting should be adopted so as to enable tl1t> early despatch of inorniug mails.

Sorters' Salm·ies.

378. The salaries paid to sorters commence at £144, and advmwe by two £6 annual increments to £156. Senior sorters receive £162 with n £(; increment to £168. Despatching officers receive £17 4 with a £6 iucrenwut to £180. Mail officers are in two grades, namely,£192 to £2HJand .£2lli

to £228 per annum.

379. The average salary of sorters throughout the Commonwealth (including despatching officers) is £Hi2 per annum.

380. By common agrePment representatives of Letter Sorters' Associatioris in States other than Victoria refrained from. dealing (except by a general reference) with the question of salaries, and desired your Com­ missioners to· accept the evidence tendered by the Victorian Postal Sorters'

Union, as representing the views of the sorters generally on that matter. These representatives requested that the salaries of sorters he fixed :llt £1 ;,(; to £192, attainable by increments of £6 every two y'ears, with two long service increments of £6 each at intervals of five and ten years after attaining the maximum.

381. The following table was submitted, showing salaries paid and privileges given to sorters in other countries :-TABLE SHOWING SALARIES AND PRJVII.EGES IN OTHER COUNTRIES.

Rate of Salary.

1

!

£160 by annual incre- I In all cases

I

ments !

London"'

Glasgow , £ 156 by annual incre- II In aU case,;

[ ments

Chicago ... i 500 to 1,100 dollars ••• I Nil

Canada-First class ! 400 to 700 dollars to 5 per cent. off salary

despatch clerl

New Zealand ... £200 by increments- In all cases

I six of £10, four of

Australia ...

£5, three of £10 Sorter, Grade I., £144 to £156; Sorter,

Grade II, £162 to

£168; Despatching Officers, £174 to I

£lt\0

Two-thirds of sorters are in Grade I.;

one-third of sorters are in Grade II.

No pensions or retiring allowances are provided under Australian classification. * Medical attendance is provided for sorters and others in London.

Six months fnll ;

six months half Six months f111l ; six months half Nil

Six months fnll ;

six months half Very liberal

382. The Commonwealth Public Serviee Commissioner stated in evidence that the contention of the sorters7 representatives that the 1:\ ew Zealand sorters received higher salaries than the Commonwealth sorters is F.8564. F

Bag sorting.

Night sortlng recommended.

Salary requested by sorters.

New Zea1and and Australian sorters' salaries compared. not borne but by the New Zealand Post Off-ice Classification 1908--9, and

that such classification slHnYs that 4 .') per cent. of the sorters are receiving less salary than the minimum for Australia (£1H ), and that the average salary in New Zealand is £148 as against £162 in the Commonwealth.

Position in New Zealand.

Commissioners' recommendation.

383. From an examination of the New Zealand Post and Departmental List, 1908-9, your Commissioners discovered that a number of sorters now in receipt of £180 will reach the maximum of £200 per annum, in accordance lrith the Post and Telegraph Clrtssi/ication Act 1907.

This Act came into force in April, 1908, and pro\'ides that officers in the Non-Clerical Division may fl'LI tn £2ou per mmmn in fifteen years by £10 increments.

384. Your Commissioners consider that when the New Zealand Classifieation comes into full effect it will provide liberal treatment to this class of officer than does the Commonwealth Cl assification.

385. Your Commissioners recommend that tl1e minimum salary for sorters be £150 per annum, and the llll'IXimu.m £190 per annum, with biennial increments of £8.

Recommendations re despatching and mail o:t11.cers.

386. The representatives of the Sorters' Association elni!Hed that the salaries paid to despatching officers should be from £198 to £225. Your Commissioners recommend that the salaries of this class of officer should he £200 per annum. The representfttives also elaimed tlwt tQe paid to mail officers should be ti·om £234 to £250. Your Commissioners recommend that the salaries be from £210 to £240 bv annual increments

Sorting conditions.

Inequitable charac­ ter of sorting test.

London sorting test.

"Promotion on 'Character of work

of £5. ,;

Sorting Tests.

7. T"'O sorting tests prqvided, viz.:- ( 1) For Jetter

desiring to qq.f!,ljfy as sorter& ; (2) for sorters wishing to qq::j,lify for promo­ tion to senior rank. Under the first test eandidates are now reqnired to i>ort 500 letters at the rate of 30 a minute ; under the seco11d test sorters are now requireq tq sort letter!'\ ftt the rate of45 a minq.te. In hoth instances there is a maximum allowance of 2 per cent. pf and metropqlitap l:lnd suburban letters are excluded from the test.

388. Priqr to 1st May, 1909, each candidate had to pass a test on the total numher of the post towns and receiving or intercpange offices of the State in which he was examined. The inequitable character of this test is obvious. The salary was uqiform, but the cl1aracter of the test was not. For instauce, State of New South vV ales has 2,438 post towns, while Western Australia has only 368.

389.. Your Commissioners are surprised that these inequitable condi­ tions remained so long in existence. It was stated in evidence the

sorting test in London requires the sorting of.l,OOO cards in thirty minutes for junior sorters, and 400 cards in ten for senior sorters.

390. In dealing ·with the question of sorting tests your Commissioners met with the difficulty that, under t4e pr13sent systqn of grading, however qualified a sorter may become, it is impossibl e for him to reach the position of senior sorter (Grade II.) unti I there is a vacancy.

3 91. Your Commissioners consider that in granting promotion the officer's work should be the main guide, and that promotion should be based on the recommendation of the Staff Coinmittee. Your C01mnissioners recommend that the test for senior sorters be abolished, and that advance­ ment depend upon the eharact«:r of the work done h,v each indiridual

Qffirer.

98

G 9 2. Your Commissio.p.ers :recommend the entrance test t'or tlw position of sorter should be of ten minutes' duration, at the rate of cartls a minute, with an allowance of 3 per cent. for missorts.

83

393. A representative of the Letter Sorters' AsRociation eornplained test cards become sticky through excessive handling, rendering the

passing of the test more diffi cult.

Sorting cards Mtlcky.

394. Your Commissioners recot11\ll ep d the. Depnrtnw11t shouhl see, wb en the test is being applied, that the t est cards are free fi·om su<'h objections. Further, your Commissioners consider thnt the eards should he enclosed in in order to make the test approach as nearly as

possible to the sorters' working conditions.

Promotion of Lette1 · Sorters.

395,. Complllints were made throughout the Commonwealth tlutt the present system of gradin:g is a serious hindrance to adv;:tncement, two-thirds of ttw sorters being in Grade I., one-third in Grade II., or nf seuior

sorters. The Conunonwealth P.uolic Service Courmission,er contended that there is nothing to prevent sorters obtaining to the positions of

senior sorters in fifteen years, owing to retireme11t aud expansion of tltc Department. . '

396. A responsible official in th e Mail Branch, New South Wales, stated that Gr11de l· sqrters do sarne work Grade U. sorters, and thnt are compelled to wait too long fop ppomotion. The only ::tvenues of

prorr10tio11 now open to senior sqrte1·s, witholl.t passing the clerical examina .. tion, are tl10se of despatch officer and mail officel\ but the vacancies ordi­ narily occurring in these positions are not numerous.

3 £) 7. Y op.r Commissioners }l ave !llre!ldy recomme11ded, under the sectiqn dealing with tests for thM the gqtde be abolished,

and that pfficers be promoted by reason of merit !'hown in work.

Travelling Post Offices.

398. Representatives of Sorters' Associations contended that the position of travelling sorter is as responsible as that of postmaster, many mails being recei\'ed and despatched in transit. Travelling sorters frequently have charge of valuable packets, in cluding, ip some States,

parcels containing gold.

8 9 Y O\lr Commissioners consider that in charge of mail

vans shQtdd be of the rank of despatching officer. Where it a common practice tq cqqsign valuable registered parcels, such as parcels co11taining gold, two officers should be provided.

Sorters' Hours.

40Q. The hours of sorters are as follows :-(1) Continuous day work between 6 a.m. and 8 p.m.-five days at nine hours, with half-an-hour off for lunch, and one day of four hours, equal to 46! hours per week, or 93 hours per

fortnight. This coincides with the ordinary hours of the General Division. (2) Broken hours between 5 a.m. and 8 p.m.---five days eight and a half hours, with half-an-hour for lunch, and one day four

hours, equal to 44 hours per week, or 88 hours per fortnight. (3) Broken hours between 6 a.m. and 10 p.m.-five. dayS, ;:tt eight honrs, with half-an-hour off fpr refreshments, one day fonr hOl-ll'S, equal to 4) pqurs per week, Of 8& hours per

fortnight.

Cards should ba enclosed in envelopes.

Gradilllt IUifiOI&I bar to

adva.uceutent.

Sorters' avenues of promotion.

Responsibility of tra. velling sorters.

Travelling sorter to be of status of despatching officer.

Disabilities of sorters.

Broken hours said to be unavoidable.

Recommendations.

Arduous and responsible duties.

Letter carriers' loads.

( 4) N"ight work between 10 p.m. and 6 a.m.-six days at sevE!l1 hours, with half-an-hour offfor refreshments, equal to 39 hours per week, or 78 hours per fortnight. Equivalent time off, or, in the event of tl1at being impracticable,

overtime is allowed as follows (1) and (2)-For time employed in excess of an aggregate of 93 hours per fortnight. (3) and ( 4 )-For time employed in excess of an aggi:egate of 83 hours per fortnight. Broken hours are defined as one break exceeding two hours in the

day's work, or two breaks exceeding one hour each. An officer working less than the daily hours above mentioned may be called upon to perform additional duty within the fortnightly aggregate, provided that on any one day he is not compelled to

work more than nine liours.

401. Complaints were made by the sorters' representatives that their hours are too long. lt was claimed that night work (which is common in the sorting branch) is most trying on account of the artificial light, and that time worked at night should be calculated as time and a quarter.

402. 1\ umerous complaints were recei\-·ed in regard to l)roken time, it being alleged that a day's work on broken shifts is often spread over a period of from fourteen to sixteen hours.

403. The sorters' representatives requested that the hours for continuous day work be 84 per fortnight ; for night work 72 per fortnight ; and that broken time be abolished, or the hours reduced. It was requested by some witnesses that 'hours be computed on a weekly instead of a fort­ nightly basis.

404. It was stated in evidence by responsible officers that broken time in sorting is una voidable, owing to the irregularity of the arrival and despatch of mails, ·and that more favora,ble hours for broken sl!ifts could not be arranged on account of staff shortage.

405. Your Commissioners consider that a day's work shonld not be spread over so long a period as fourteen hours, and that broken time should be avoided as much as possible by providing adequate staff to deal with the work. Where broken shifts are unavoidable the period during which they are worked should be limited to twelve hours. Your Commissioners recom­ mend that the hours he computed on a weekly basis, and he as follows :-

For continuous day work For night work For broken shifts For work beyond these hours overtime should be paid.

Lettn· Carriers' Duties.

Maxhnum per week.

44 hours 36 hours 40 hours

406. In the evidence given by the representatives of the Letter Carriers' Associations throughout the Commonwealth it was claimed . generally that the duties of letter carriers were arduous and responsible, and required the exercise of tact and courtesy. Some representatives contended that the work of a letter carrier involved considerable mental strain.

407. Your Commissioners regard this class of work as chiefly requiring expedition and civility, and they consider tltat the plea of responsibility can be sustained to the extent that letter deli \'ering is a position of trust. 'With referenee to the Jaboriousness of the work, it was alleged that the loads now carried by letter carriers are much heavier than

prior to Federation. Your Commissioners consider that the Superin­ tendent of Mails should see that only a reasonable load is imposed.

r; • ·- - - -

Letter Ca1Tiers' Sala1'ies.

. 408. Representations were made by the Letter Carriers' Association.<; m all_ the States that the present salaries are too low. The witnesses were pract1cally unanimous as to the amount of salary that they considered Salaries aald to be

too low.

commensurate with their work -

. 409. It ·was requested that the existing maximum of £150 per annum 1?creased to £156, attainable by yearly increments after receiving the

mmunum wage of £110 per annum. It was contended that under the scheme letter carriers appointed at eighteen years of age at a salary

ot £(50 per annum about twenty-five years to reach the maximum.

Increase of maximum aal&q requested.

410. A witness for the Letter Carriers' Association of New 8ont.h Wales stated that there were letter carriers in that State receiving £110 to £115 a year who had given sixteen to twenty years' service, and that it wou!d ta.ke these officers another seventeen years to reach the prcseut

maximum of £ i 50.

Advancement alow.

411. The Commonwealth Public Service CommissiOner submitted a table showing that the average rate of pay of letter carriers has increased under Federation, anu stated that t4e Commonwealth average· in the year 1901 was £110, and in the year 1909 £122. These averages vary iu the Average salaries.

States as follo\v :- ·

N ew Sout1J 'N ales Victoria Queensland South Australia

W estern Australia Tasmania

£125 130 122 126

128 125

412. The Commonwealth Public Service Commissioner c0)1tendeu commonwealth that under the present scheme letter carriers can advance from £110 to Pu 0 £150 · b · · h . ] f omm sa oner 11 m a out 21 years, attammg t e maximum at approx1mate y 40 years o view. age. This witness stated that he fi xed the maximum value of a letter carriers' work at £1 26 per annum, any payment beyond that amount being regarded as a solatium to slow and unambitious officers who do not secure promotion to · higher positions. 413. Representatives of the Letter Carriers' Association quoted rates paid in other countries in support of their claim for. an increased rate of pay . In the United States of America letter carriers' salaries are said to range from £125 to £250, and in New Zealand from £1LO to £200, with an extra 6d. a day after fifteen years' service. 414. The Commonwealth Public Service Commissioner denied the accuracy of the statement that the letter carriers of !\' ew Zealand received a higher salary than those of the Commonwealth, and stated that the average salary in New Zealand is £104, and in the Commonwealth £122 . . He further stated that the letter carriers of the Commonwealth have opportuni­ties of promotion in the hi gher grades of the General Divisi0n, there being 868 positions u.s sorters, despatching officers, and mail officers, with a maximum salary of £228, to which they m:ty rise, while in New Zealand th ere are only eleven General Division positions superior in grade to letter carriers in their line of promotion, and the maximum sal:lry provided for these higher positions is £200 per annum. The Commonwealth Public Service Commissioner calculated that, if the· New Zealand Classification were adopted in Australia, it would mean an immediate reduction of £26,964 in th e salaries of Australian letter carriers. 41 5. Under the Common wealth Classification scheme a letter carrier of eighteen years of age commences at £60 a year, and after three years' service at £110 (wbi<;:h amol.lnt is received at 21 years of age) h e advances to Pay 1n other

countries.

Comparative rates of pay ln the Commonwealth and New Zealand.

Salary progress of letter carriers.

Work value of letter carrier.

Recommendation.

Opportunities not given.

Progress of letter carriers.

Speed and accuracy required.

Recomtnenliations.

£114, and thence to £126 .by two £6 annual increments. After three years' service at £126 per annum, he is advanced to £132, and thence to £138 after another year's service. Two long-service increments, of £6 each subject to good conduct and efficiency, are also payable at intervals of five years after twenty years' service, thus bringing the maximum pay of a letter carrier up to £150.

416. In arrivirtg at a recomtnendatioh of what is a just salary for a letter cattier, yonr Commissioners are influenced by the work value alone, and not by the lerigth of sel'vice, and consider that the work value of a letter carrier is greater between 25 and 30 years of age tha.n after that period.

41 7. Y out Cori1missionets cannot accept the dictum of the· COii1inon­ wea1th Public Service Commissioner that any kind of increased payment should be paid as a solatium to slow and UiHtmbitious officers. They recommend that the maximum of £150 now existing should rem:tiv 1 but be made possible of attainment by efficient officers at a much earlier period.

418. Your Commissioners recommend that after reRching 21 years of age, and receiving£ 110 a year, the present thtee years' service at that salary he reduced to two years, and then by eight annual increments of £5 letter carriers should advance to the maximum of £150.

Letter Opportunities fur Advancement.

419. Representatives of Letter Carriers' Associations COmplained that opportunities are not given them to learn sbrting and qt:tali(y for promotion to the rank of sorter, and that those letter carriers desiring to become sorters are compelled to wait uutil they are senior letter carriers.

420. The Commonwealth Public Service Commissioner in rebuttal of this evidence stated that the average service of the last 40 letter carriers promoted to positions as sorters was 17 years, and that twelve of

tbein had not reached the maximum of letter carriers. He stated that a nurhbet _of in cout1try suburban offices have qualified for sorters by passmg 'the test. He further stated that the average age of the last twenty letter carriers promoted as sorters in Victoria was .19 years ;- that since July, 1904, 60 Jetter carriers have been promoted, but in the sntne period the junior officer in the grade has seen 218 vacancies occur above him ; th:.tt juniors of 18 years of age in 1904 will 011ly be 38 years of age \vhen their turn for promotion to sorter artives ; that the avetage dcctittenee of vacalicies is 3 per cent. or I 00 vacancies per annum ; and that. a letter carrier commencing at 18 years of age will at 43 years have attamed the rank of sorter.

421. Your Cotnmissioliers recognise that the opportUnities of pro­ motion to the rank of sorter ai;e necessarily very few, but they hold the opi11ion thnt the special duties of a sorter are such that speed and accuracy, llecessitating the possession of both visual and manUal dexterity, are essential.

422. Your Commissioners therefore recommend that letter carriers, aftei· reaching the age of 21 years, be provided ·with opportunities to qualify for any va.eancy occurring in the sorting branch ; and that the Department should supply Jetter carriers desiring to qlialify for sorters with the necessary diagrams and cards to enable them to practise i11 their own time. Your Commissioners further recommend that before bejng tested a short probationary period he allo1-ved candidates in actual sorting work.

423. Your Commissioners have been informed that in the Sydney General Post Office a somewhat similar svstem to the ahove recentlv been adopted1 and they recommend its apJ;lication throughout the wealth. · , ·

87

Letter CcHriers' H'OUrs ..

424; The regulation hbuts are 88 per fortnight, but overtime or tilut· in lieu cannot be claimed until 96 hour& have been wdrked; were made of broken shifts, resulting in a day's work being spread ove1· periods ranging up to fifteeti hours. It was also alleged that as overtimt• is not recognised until after % hours have been worked per fortnight there

is a tendency to make that number of hours the mihimum.

425. Your Commissioners consider 44 hours a week fa,ir hours for letter ca.rriers1 and recommend that staff adequate to contimn with these hoilrs should Be provided; In this division of the service hrokt•n time is unavoidable, but your Commissioners recommend that broken shifts

should_ be limited-to periods of ten hours a

Letter Cah•ier.f B eats.

428. Complaints were made that the beats were tthequal, a11d thnt the erection of large ·new· buildings i11 cities accentuated this inequnlity. ) our Commissioners recommend that the beats be made equal as tiu· ptacticable, and that this question be frequently reviewed to cheek inequali­

ties, and to distribute the work more equitably.

Inspection of Letter Carriers.

427. For the effective supervisitm of letter carriers it is that a regular and efficie11t s_ysteth of inspectio11 be established. the States the present system of inspection is itiadequate.

imperntiv<' !n most t1f

428. Your Commissioners recommend that of letter carriers be appointed in capitals and other large cities. In addition to super-. visory duties these officers should advise the Superintendent of Mails wh(•JI the adjustment of letter carriers' beats is necessary, and also prevent

by telegrap h messengers. Your Commissioners consider that senibr letter carriers would inake suitable officers for this class of work.

lJiail Drivers and Grooms in Charge. 429. Thl3 present salaries of mail drivers are-£60 to £110, by four :l.rinual incrl3ments; three years at £110, then advance to £114; to £126 by two annual increments of £6; three years on £126; theuce to

£132, with one annual increment of £6 to £138. Two long-service incre-ments of £6 each are provided after t\venty years' service to £150, five years being served on £138, and five years on £144. It takes fourteen yeats to reach £138 from £60, and 30 years to reach £150.

430. Grooms in charge receive £132, with £6 increm ent to £138, and long-service increments to £150.

431. Evidence was given by the representatives of the Victorian Mail Drivers' Association that the ptesent salary of mail di'ivers is inadequate that the maximum of £ t50 will take eleven vears and upwat'ds to reach : that they have little prospect of advancement "to higher positions, and they.

requested that they should advance after reaching the minimum salary of £110 per annum to a maximum of £156 by annual increments .. . Jhese witnesses claimed that mail drivers have not the sam e o}1portuintles for advancetnent as 6Utside Carters, and that their work is arduous and

responsible.

43 2; These ·witnesses claimed that grooms in charge should receive a minimum salary of £162, and a maximum of £168 per annum.

' ,.,

Broken ahlf'ta.

Recommend& tlon.

Beata ehoulcl be uniform.

l.Jlspectlon inadequate.

Recommend& tloo..

Salaries.

Mail-drivers' reiitesbii.iittte 'I reiliieiib.

433 .. Your Commissioners recommend that the salaries for mail R9commmd&ticma. drivers be placed on the same basis as recbmmended for letter carrieh, paragraph 418, and that grooms in charge be paid .£156 per annum.

88

Luads on Portm·s.

434. The representative of the Mail Drivers' Association of New South Wales stated in evidence that boys are at times called upon to handle 6-ft. mail bags, weighing over 1 cwt. when fill_ed, and another witness said that mail bags from the General Post Office to North Sydney were at times too heavy to lift, owing to their containing heavy printed matter, Sl.lCh as telephone lists. These loads should be fairly proportioned, and prompt attention should be given to this matter. Inter-State mails are handled in

bags of 4 feet dimensions, and the normal size of mail bags in the United Size of mail bags.. States of America and Italv is 4 fe et. Your Commissioners r ecommend should be reduced. that the mttil bags of the be limited to similar dimensions.

Highly qualified technical officers required.

Salaries not adequate.

Disabilities of elec­ trical engineers.

Engineering functions circumscribed.

ELECTRICAL ENGINEERS' BRANCHES.

435. In addition to examining State electrical engineers and assistant engineers your .Commissioners personally inspected the works immediately under the control of these officers in the capital city of each State.

436. Owing to the great expenditure involved in construction work and the intricate nature of the services, your Commissioners consider that the Electrical Branch requires the services of highly-qualified technical officers. This necessitates the payment of sufficient salaries to attract the class of engineers requisite to secure sound methods of construction and control. The Department has in some degree reeognised this by providing salaries for these positions slightly in excess of those given to the heads of other branches. The salaries attached to these offices are-

N ew South Wales Victoria Western Australia Queensland

South Australia Tasml'tnia

£725 700 560 520 500 360

43 7. In the opmwn of your Commissioners these salaries are not adequnte for the offices, if the officers holding them fulfil their pr·)per technical duties.

438. The Electrical Engineer's Branch comprises the following · sections :-Electrical Engineering. Mechanical Branch.

Construction and Maintenance. Telephone Branch.

439. It was discovered that all the State Electrical Engineers were restricted by a great amount of and administrative work to the

, detriment of their technical and supervising duties. Their branches were under-staffed in all the States, and it was alleged that these professional officers worked hours in excess of those which any business firm or corpora­ tion ·would demand. The employment of valuable officers on detail work, which should have been delegated to subordinates, shows a disregard of proper organization.

440. Your Commissioners are of the opinion that the unsatisfactory condition of the telegraphic and telephonic services may be, to some extent, traceable to the fact that these officers have been circumscribed in the exercise of their engineering functions. The close confinement of these officers to minor work prevents their having any reasonable opportunity to effect improvements and economies,

441. To enable the State Electrical Engineers to cope with thP important practical side of their work they should be relieved of minor duties, such as the supervision of the telephone traffic and and the

control of the construction staff.

442. The State Electrical Engineers should be afforded ample oppol'tuuity for inspection, not only in the metropolitan area, but in country districts, the importance of the work warrants it.

443. In South Australia representntions were made that li11e eoll­ struction and maintenance should be removed from the direet control of tlH' Electrical .Engineer and p-laced in charge of a sepantte official. Your Colll­ missioners are of opi!lion that the greatest economy and efficiency would lw

secured by the appointment of engineers for lines directly responsible to the Electrical Engineers, such as is now the practice in most ofthe

444. A grave defect in . tl1e State Electrieal Engineers' Branehes the absenee of properly equipped workshops, and trained staff. Till' necessity for proper provision in this respect will be amplified under tlw Rections of this neport dealing ·with ''Training."

... , .. -

Providing opportunttic" or in8pection.

nnd

maintenance.

Scriollll dcf

445. Your Commissioners received complaints of shortage of Shortage of permnnent staff' in the engineering branch in every State, the result of permanent such shortage being that the Department was compelled to attempt to carry on with untrained temporary men in the construction and fitting

sections. The responsible officers of these branches stated that the necessary staff had been requisitioned for but not provided.

446. The Electrical Engineer for New South declared that

the working of his branch "\'l'as hampered through want of staff in til(• engineering, construction, and telephone sections. He pointed out tlwt the engineering work was sufferin g through want of sufficient supervising staff, and that assistant engineers, and senior inspecting officers, thoup.h applied for, had not been granted. The fitting staff' was also stated to be

inadequate. The Construction Branch was declared to be seriously undermanned, about 7 5 more linemen and line foremen being required. In the Telephone Branch there was said to be a shortage of attendants :md monitors. In this State the branches under the control of the Electrical

Engineer were alleged to be undermanned to the extent of some 300 officers.

44 7. The Victorian Electrical Engineer stated that he required four or five additional clerks to relieve the assistant engineers from clerical work. Additional officers were also required as follows :-Fitters and for country telephone exchanges.

Permanent maintenance parties. Telephone monitors. Telephone supervisors for branch exchanges.

New South Wales branch undermanned.

The Victorian branch was stated to be undermanned to the extent of 250 Victorian branch officers. undermanned.

448. Tbe Queensland Electrical Engineer stated tha.t required another assistant engineer, two junior assistant engineers, two line inspectors, and three clerks.

449. In South Australia the following· additional officers were said to be necessary in the Electrical Engineer's Branch :-Two junior assistant engineers, another lineman in each of the five principal maintenance parties, a foreman instrument titter, and another senior instrument fitter.

450. In Western Australia more clerks, line inspectors, and fitters required, the total shortage being stated to be 46 officers.

Further shortages of staff.

Recommendation.

90

451. The Tasmanian Electrical Engi11eer said that he required an assistant engineer, seven instrument fitters, and nine linetneu.

45 2. As alreadv stated, considerable increases have beeh rt1ade to the permanent staff the Department during the course of this investi­ gation. Your Commissioners recommend that the permaneht . staff of the Electrical Engineers' Branches should he put on an adequate basis without further delay. ·

Expansion.

453. Since Federation the work of the Department has increased Great di1ticulty in ·enormously, and the Department has found great difficulty in .coping with meeting public public demands. The great difficulty i11 these demands is most

demands. '-'

pronounced in the Telephone Branch. Prior to granting increased facilities

House count system.

Studying future developments.

How construction and maintenance work is done.

The more economical system.

Thorough mainten­ ance of lines imperative.

by the reduction in rates, proper care should be taken to make provision for extra staff, materials, and equipment.

454. It was stated in evidence that American Telephone Companies have a special staff to study require111ents fifteen years ahead. There is a system known as the "House count system," under which . districts are inspected, the number of telephone services assessed, together with the probable number within fifteen years, a.nd maps are prepared accordingly, and the 1lecessary provision made for switch board accommodation and cables for distribution of lines. This system has been instituted by the Central Executive in the Common.wealth, but it is stated that little has been accom­ plished in the matter owing to want of staff.

455. Your Commissioners are of the opnnon that the Department should be equipped with a developmental staff attached to the Chief Electrical Engineer's Branch, and tbat each State Electrical Engineer should be provided with an assistant engineer to study developments of the tele­ graphic and telephonic services.

456. In regard to ordinary postal business the ·difficulty generally occurs through want of sufficient accommodation and staff. Your Commis­ sioners have tendered definite recommendations dealing with these dis­ advantages under their proper headings.

Construction and Jl1aintenance.

457. This section of the Electrical Engineer's Brtmch IS condlicted under different conditi011s in the several S-tates. In some States con­ struction and maintenance work is carried out by contract, while in others this class of work is performed departmentally. Some leading ofHcials recommended that the men employed by the Department in ·. construction work should be placed on an unestablished list, as they wei'e of the opinion that the fluctuatin g nature of construction work rendered it inadvisable to establish a large permanent staff. -

458. Your Commissioners are of the opinion that the more efficient and economical svstem is for construction and maintenance work to be executed, as far possible, by a departmental staff. Any exceptional demand of a distinctly temporary character for construction work could be met by the employment of additional men until the completion of the work.

459. The thorough maintenance of lines is imperative to secilre ah efficient tel<'graphic telephonic service. Tlw lamentable condition of liues has hecn dcscf'ihed in tl1i:-: Report n llder tlw heading of" Finance,"

paragraphs 107 ·to 124.

460. It was stated that at the irtceptioil of the Commonwealth the State Electrical Engineers' Branches had the following mainten:tnl'(' parties :-New South Wales

Victoria Queensland • South Australia "\V estern Australia

Tasmania

•!'•

Four parties None Ten parties Nine ,,

Not stated Six parties ·

46 1. The Electrical Engineer for Victoria stated that he has

continuously applied £01' the appointhieht of permanent maintenance parties, and that in 1907 four such parties were appointed.

91

462. Your Commissioners are of the opmwn that additional Additionnlliue maintenance parties should be appointed in N e'v South Wales, Victoria, parties required. and Western. Australia, and that the existing parties should be strengthened. Sufficiently staffed permanent parties wonld, in the opinion of your

tend to give better results than does the contract

T echnicul Matters.

463. A considerable amount Of technical evidence. was subii:litted in regard to construction, including poles; cross-arms, sags, spans, iron and copper wire, pole preservation, &c. In regard to technical matters youl' Commissioners do not feel competent to r ecommend any change in tlw

methods adopted by the Electrical Engineers, beyond stating that iron poles should be mote extensively used, eSiJecially ih cotintty districts, where poJes are subjected to ravages by white ants and dan1ag tl. by bush fires.

Linemert's Duties.

464; Evidence wa,s given by representatives of AssociatiollS in several States to the effect that linemen's work is far more and important

than that of many other sections of the General Division, and that the responsibility of linemen has increased considerably during recent years. The witnesses contended that the nature of their occupation exposes them to risks unknown in other branches of the Service, partic.ulady in cities,

there is a danger of coming into contact with high voltage electric

Wires.

46 5. T,he :tepresentatives of the Linemen's A ssociatioh in New South Wales alleged that serious accidents have occurred owing to the limited experience of officers in charge of the work, and to want of knoWledg e on the part of their assistants, and to the want of proper equipment . . It was

admitted by the Electrical Engineer for New South Wales that accidents to linemeh have been more· frequent of recent date than formerly. It was stated by the linemen that they take every precaution to avoid accidents .

. ·.· 466. In order to minimize the possibility of accidents, and to secure effectiYe working, your Commissioners consider that it is essential that officers in charge of work be men of experience, and that the linemen be with proper e quipment. ·

46 7. Y out Commissioners are of the opinion that linemen employed in country districts wol'k under less fa·vorable conditions than those employed in n:ibre populous centres, and r ecomrnerid thatlineillen who have served a stated period in country di stricts should have the opportunity of transfer to

city parties.

468. Your Commissione1·s consider that, at main centres, it would be advisable for the Department to establish some defined system of training its men in construction work. Such a method, if adopted, would make for increased efficiency and ecortotny in carrying out construction work.

More extensive use of iron poles recommended.

Responsibility of linemen.

Acciaeiitil to linemen.

Men of experience to be in charge.

Transfer of country linemen.

Definite system of training.

Instructions in book form.

Waterproof clothing.

Wages paid to poledresserl!.

New Zealand salaries.

Recommendation.

469. Complaints were made that typewritten instructions, as now supplied to linemen, are unsatisfactory, being at times uudecipherable. Your Commissioners recommend the printin

470. in the performance of their duties are frequently

exposed to wet weather, your Commissioners recommend that the Department should snpply them ·with waterproof clothing.

Pole Dres.sing.

4 71. Your Commissioners received evidence in Melbourne from ship­ wrights, formerly employed as poledressers, who stated that the work of pole-dressing is not now so well done as formerly. The departmental officers stated that this class of work was efficiently performed by linemen who had had a training in the work. It was also stated that the average wage paid in Victoria for this work is 8s. 5d. a day, as compared with 1 Os. a day formerly paid to shipwrights.

4 7 2. Your Commissioners consider that the wage now paid for this class of work is not sufficient, and should be increased, and that it would be preferable and more economical to employ tradesmen for the work at standard rates of pay.

Linemen's Salaries.

473. The present salaries of linemen are as follows :-The mmnnum salary is £114 per annum, with two annual £6 increments to £ The

next grade is £132, with one increment to £138, and provision is made that officers of twenty years' service may be granted, after five years on £138, a long service increment of £6, and another £6 after a second five years' service. Thus it would take a lineman thirty years to get £150 a year,

providing he did not qualify in the meantime for promotion. The greater proportion of linemen are now on a salary of £126 per annum.

474. Senior linemen commence at a salary of £144, and advance to £156 hv two annual increments of £6 each. A line foreman's salarv is £162, with one increment to £168. Provision is made in the Classification for line inspectors at £174 to £180, £192 to £210 by three £6 annual increments, and £216 to £228 by two £6 annual increments. There arc

three other grades of line inspectors, viz :-£234 to £240, £252 to £276, and £282 to £348.

47 5. It was stated that in New Zealand the rates of pay were­ Linemen, £130 to £170 per annum; foremen, from £1b0 to £200 per annum.

4 7 6. A witness in South Australia stated that officers entitled line foremen performed work classified in other States as line inspector's work.

4 7 7. Your Commissioners consider that the present grading is inequitable, because the nature of the work in the various grades of linemen is practically identical. Your Commissioners recommend the abolition of grading, and are of the opinion that adequate salaries would he as follows :-

Linemen £120 to £156, by six biennial increments

Line Foremen

Line Inspectors,.,

of £6 each. .£168 to £19:!, by three biennial incre­ ments of £8 each. £200 to £350, according to the import.

ance of the post held.

' .. ' \ ,.,., '

'

TELEPHONE BRANCH.

Telephone Management and Manap,·e1·ts. . 4 '7 8. Your Commissioners found that there is an absence of uniformity Lack of uniformity m the management of the Telephone Branches. There is, under the control of management. of the Electrical Engineers. a telephone manager for the metropolitan

exchanges of New South Wales, Victoria, and Queensland. In South Australia and "\Vestern Australia the State Electrical Engineers are directly responsible for the control of telephone staff and traffic niatters, while in Tasmania the telephone traffic is under the telegraph manager.

47 9. Your Commissioners consider that the present method of tel<•- Not conducive to phone management is not conducive to economieal organization, as it economical imposes work of a non-technical nature on the State Electrical Engineers organization. which is detrimental to the proper performance of their more important

duties. Your Commissioners recommend the appointment of telephone managers to the metropolitan. exchanges in the Statea not already provided with telephone managers.

480. Your Commissioners also recommend that the Telephone Branch, as far as the traffic is concerned, be under the control of the

T elephone Manager, and they are of the opinion that telephone managers should possess sufficient technical knowledge to efficiently cope with tratlic requ.irements.

t"n1:I 481. The necessity for telephone managers to possess tcehuieal

knowledge, in addition to traffic experience, is clearly shown by the faet that the most competent telephone manager in the was originally a fitter.

482. All questions involving distinctly engineering matters should he referred to the State Eleetoral Engineers for decision, while all matters of a non-technical nature, such as telephone complaints and staff matters, should be attended to by the Telephone Manager.

483. Telephone managers should be afforded the fullest opportunity to supervise the working of the exchanges, and, where required, derical assistance should be provided to free them for such duty. .

Traftlc to bo under control or telephone manager.

Technical know· ledge required.

Duties of telephone manager.

484. Country telephone exchanges should remain under the control Countrytelephone of the postmasters, with a monitor in charge of the traffic. exchanges.

Sepamtion cif Telephone Branch frorn Post and Telegraph Department. 485. Your Commissioners inquired into the question of the advisa­ bility of separating the Telephone Branch from the Post and Telegraph Department. The evidence received was to the effect that the telegraphic Telegraphic and and telephonic services are closely associated, and could not be separated telephonic services

'th d t Tl · · d · k f b th th closely associated. WI a van age. 1e engmeermg an constructwn wor o o ese branches is performed by the staffs of the Electrical Engineers' Branches.

486. To create a distinct Telephone Department would mean dupli­ cation of staff, and consequently result in unnecessary expense. In the opinion of your Commissioners all requirements in this direction will be How the require­ met by the adoption of the recommendation that the traffic side of the ments are met.

telephonic se:rvices be removed from the control of the electrical engineers and placed under the telephone managers.

TelPphon e E:rchanges.

48 7. The evidence of technical officers was to the effect that the number of subscribers connected to a telephone exchange should be limited to 10,000. The concentration of traffic of a reasonable area into one central Concentration of traftlc.

93

Suburban exchanges.

Technical investi­ gation required.

Hours of attendance.

Extended service desired.

Alleged absence of night calls.

Recommendation.

Thorough inspec­ tion not provided.

Recommendation.

94

exchange (with the above limitation) is a better method than the establish· ment of a number of small suburban exchanges, the latter being more expensive, and presenting less facilities for supervision.

488. In the Sydney telephone area there are 27 hranch exchanges. The geographieal f(m11ation of that eity necessitates more branch exchanges than is usually the ease, lmt some of the suburban exchanges were alleged to be unnecessary. These exchanges were established prior to Federation, and the transfer of the subscribers to a central exchange would involve a large expenditure, increasing "in proportion to the growth of the exehanges.

489. The Electrical Engineer of Queensland gave evidence to the effect that the abolition of the suburban eichapg('S attached to the Brisbane central exchange, and the transfer of the subscribers to that exchange, would result in an improved service.

490. Your Commissioners are of the opmwn that these matters call for a technical investigation by the IJepartment, in order to ascertain ·whether the outlay neeessary to convert these exchanges would he jnstified by the resultant economy in working and supervision.

CountJ:y Telephone E:rc!tanges.

491. The Telephone Regulations provide that when the revenue of a telephone exchange is less than . .fl50 per annum, attendance shall he given 011ly during the hours the post-office is u,suall_y opeP fqr the transactipn of p11hlic business, apd that when the is £15,0 annum or over,

continnotts attepdance slwJl he provif.lecL .

492. Your Commissioners received a public complaint that it is diffi­ cq.lt to obtain more than a day jn mf!ny srp;:tll cpunt1 y towns, where it was an extended woulcl result in an, increased nJlmber of

su\)scrihers. A suggestion was m!lde th;tt jp such f?ases l.J. sixteen or eighteen hours' service should pe prqviflfjd UI+til a})qut 1 0 p.rp.

49q! Complaints were also received from representatives of Associa­ tha,t nu.ny coJlntry exchanges were kept opep continuously day

and night, althouglt tpere -rras :t1most entire absence of n.ight cnlls, and requests were made for the discontinuance of such all-night services.

494. Your Comn1issipners recqJilrpepd thfl.t at telephone exchanges, where the revenue is less than £150 per annum, and where night calls are seldom made, provision should be made to attend to calls of vital importance after the usual business hours. Instead of r.equiring the constant attendance

of a telephonist at snch excb::J-n.ges, f!-F;tngen:lents should l:)e made for the person in of the post-office tq attend night cAHs. Few these services fl small annual allpw:i)..nce should he gnwted.

Telephone Inspection.

4 9 5. Systematic inspection of telephone instruments is essential to maintain a telephonic system in efficient working conditio11. Your Cprpmis­ sioners found that thorough inspection is not provided for, the reason. alleged being want of staff. The general practice is to. inspect instruments

after a fatl.lt has occurred. This practice causes il}conveniep.ce to Sl.J.hsc:pihers, and is not to the Department. To prevent the occp.rrence of

faults, the instruments should he inspected periodic:1lly.

496. Your Commissioners recommend that metropolitan networks be divided into districts, each in charge of an officer whose duty it shcmld be to see that every instrument is regularly inspected. Similar arrangements shonld also be made for the thorough inspection of instruments of coq11try by the appointment of a sufficient number of telephone

95

A lllomatic Switchboards.

49 7. vVith the object of obtaining infol'mation teg:1,rJ ing tlH• utm;t. up-to-date methods fnr vV\lrking telephone exchanges, your examined the technical experts as to the advisability of installing autolllati(• in preference to ·mrtn ual working s\vitchboa.rds .

498. The Ohief Electrical Engineer stated that the cost of the auto­ matic svstem would be g,Teater than that of the common batten· . .svst('lll, and it ;ou:ld l{6t be im under AustraJjan conditions. "' lie also

stated that the American Telephone Company investigated the nwtter, and htmu that the cost of the automatic system was not less than that of tlH· common battery system, while the disadvantages of the automatie system were such as to justify th e retc:ntion of the common battery system.

Automatic versus cou1mou battery system.

499. Your Commissioners were advised that there are a numher of Automa.ttcswltch· ex.ch a.ngeE! in America under the automatic switchboard ::;yste111, boards tn America. nqtably at Chic!'Lgo, with I\ 1,000 1mb.scribers. One has recently he en established at Qqba which is claillled to be the most up-to-date telephoue

system in the world.

500. During the preparation of this R.eport your Commissioners personally inspected a mechanical device of local invention termed an "electro-mechanieal selector," which was alleged to be automatic, an iuter­ cqmmunication :)nd a lipe saver. Yoqr Cmnmissioners consider that

PepartplentshP.Hld test th e !-ltHity of a step py step" st1ch as

that refjjrred tp 1 for the purpose of a1'\certainipg whether these instruments coulq qe satisf;wto:rily :'l.dopted in wjth party line services, and

in dit1tricts-

Electro-mechnntcal selector.

oO l· your. the attraetivenes$ of alltomatic Automatic switch·

for of messages; from

tbe ;tt then: wonld seem that, the pf Y •

the use of automatic systems for small installations an.d local exehanges, humnn agency .is still required for junction and trunk line ·working.

502. Your Commissioners recommend that the Depar:tment should w·atch the pf th.e a.utmpl'!-tic syst!'lm to sfle if it can be

1'!-nq econmnically to

at th!3 s:=j.me time providing a me:ms qf a cc:>rrect

qf the p.umlwv of Ci\llE! wade v.nder a servioe.

and Metallic Circ'/_lits,

503. Expert clearly shows that in. large centres the under­

ground systml'l is the mo st economical and effective method of dealing with lines. In addition to the economy of maintaining the under­

ground as against the aerial system, the element of danger of contact with aerial lines is eliminated by the underground system. The economic result of under.groundingis evident, as it is estimated that the cost of of the underground system is about one-half that of the aerial system.

504. In all large cities of the Cmnmop.wealth the underground system should be completed. This has been recognised by your Commissioners in the section of this Repo.rt, paragraph 127, by recommending that the necessary be provided for such work.

In addition to the evidence from the Department's

engineers on undergrqunding telephone lines, your Commissioners

have information oq this matter from the report of tbe German

Post ami Telegraph Department for 1901- 5 (a guinquenni:\l publication ) to the ·effect that in many instances outside of cities telephone cables were

Development to be watched closely.

Economy of underground lines.

95

96

tlflrfiiati practice. embeddecll.n the ground. In the initial stages of these experiments it was found that the conversations were not so distinct as over aerial lines, but on the insertion of Pupin's self-induction spool at intervals of 1,300 to 1,6.00 metres sufficient distinctness w-as obtained to meet aU the demands of the serviCe.

Metallic circuits.

Importance of metallic circuits.

506. A considerable amount of evidence was supplied in regard to the installation of metallic circuits. It was stated that in the metropolitan area of Sydney about 40 per cent. of the lines were metallic circuit ; that in Melbourne only two lines out of 1,600 in the Central Exchange were metallic circuit; and in the City Exchange 200 out of 1,600; that in Adelaide, 60 per cent. of the lines were metallic circuit; in Brisbane, about 75 per cent.; in Perth, about 70 per cent. ; in Hobart, where the common battery system is in operation, all the lines were metallic circuit.

507. Your Commissioners are of the opinion that to obtain an efficient telephonic service the installation of metallic circuits is essential in large networks, as such circuits minimize induction, and consequent confusion in the transmission of conversations. The important part that metallic circuits play in rendering an efficient telephonic service is illustrated by the ineffective telephonic service existing in Melbourne, where the non-metallic circuit is in common use.

Under grounding of telegraph lines. 508. Your Commissioners are of the opinion that the undergrounding of some of the telegraph lines could be adopted with advantage by the Depart­

ment, and recommend close consideration of this matter by its technical officers. In support of opinion, your Commissioners point out that an lmderground telegraph line between Berlin and Halle has been in existence for 30 years, and is said to be still in good working condition. The under­ grounding of telegraph lines between cities such as Sydney and Melbourne

would reduce to a minimum the stoppage of the telegraphic traffic by adverse weather conditions, which are answerable for frequent and serious delays to business on that line.

Manufacture of telephone instru­ ments by Depart­ ment not advisable

at present.

Difficulty in , obtaining trained men.

Mrtnufacture of Telephone Instruments and ]J.:[aterials .

. 50 9. Your Commissioners examined the technical officers and the Victorian representative of the Amalgamated Society of Engineers with reference to the advisability of the Department manufacturing its own telephones. Your Commissioners consider that, as telephone instruments of efficient make are procurable at a cost of about £3, and as the demand in the Commonwealth at present is not very considerable, their manufacture by the Department would not result in economy. But your Commissioners consider that, if future developments make the proposition a sound financial one, a Commonwealth factory should be established for the purpose of manu­ facturing these instruments. In addition to the manufacture of telephone instruments, this Government factory could undertake the manufacture of construction material, such as cables, wire, switchboards, and insulators. Such a would also provide an excellent training school for mechanicians and fitters.

Instrument Fitters.

51 0. The technical witnesses examined were unanimous in stating that the Department experienced great difficulty in obtaining trained men to perform the work of fitting, and were compelled to employ to a

considerable extent temporary men, whose services have to be dispensed with (according to the Oommmzwealth. Public Service Act) at a stage when they are becoming most useful. As the Department is almost the sole employer of telephone fitters, it is imperative that it should train its own fitting _ sta:ff. .. .. .. ... . ..: ,_ _ __ J .'!) __ _ _ ______ _ - - " --'---" ''

97

511. Your Commissioners consider that the State Electrical Engineers' Branches are most inefficiently equipped with machinery and workshop::; for the proper performance of their work, and for the necessary training uf the staff. ·while this condition of affairs continues, it will be impossible for tlw

electrical engineers to secure efficient and economical service. The absence of effective training, associated with shortage of permanent staff, is most unsatisfactory. YourCommissioners found that instrument fitters, particu­ larly in New South Wales, were confined too closely to certain branches of

their work at the expense of obtaining general experience.

I nstrurnent Fitters' SGdaries.

512. The classification of instrument fitters fixes th. eir salaries as under:-

97

, ' . \

Want or C!JUipmont and a ot

training.

Atlvancement o!

Junior instrument fitters commence at £26, and advance to £110 hv llttorn. eight annual increments. This is subject to the minimum wage provision that all officers of 21 years of age, with at least three years' service, shall receive salaries at the rate of£110 per annum.

Officers thus promoted to £110 have t o "mark time" through the grades between the salary from which they were promoted a,n

after proving their efficiency, become fitters at £114 per annum. From £114, fitters advance to £129 per by two annual

increments of £6, ·remain at least one year at £126, then may advance to £138 by two more ammal increments of £6, ) remain at £138 for at least one year, and then may by three £6 annual increments attain to £156 per annum, which is the maximum

salary for instrument fitters.

513. Under the present classification, it takes an instrument fitter at least eighteen years to attain a salary of£156. As a contrast, it may be mentioned that a youth entering the Service as a clerk commences at £40 a year, and advances to £160 in six years.

514. Senior instrument fitters are classified in two grades, namely, one £162 to £168 a year, and one £174 to £180. Foremen instrument fitters commence at £192, and advance to £210 by three annual £6 increments. A higher grade proceeds from £216 to £228, and a further grade from £234 to

£240.

Striking comparison.

Grades of senior Instrument fitters.

515. Mechanicians are classified in five grades, namely, £192 to £210, Mechanicians' £2l6 to £228, £234 to £240, £252 to £276, and £282 to £348. grades.

516. Representatives of Instruments Fitters' Associations claimed that instrument fitters' work is worth at least £150 a year, which should be attain­ able more speedily, and they alleged that the minimum of £110 had become practically the maximum. The South Australian representatives stated that

there is a greater proportion of junior fitters employed in that State than in any other portion of the Commonwealth, and alleged that proficient mechanics had resigned fro.m the Service owing to the lowness of the status of fitters in the Department.

51 7. It was represented that in New South Wales and South Australia salaries of certain senior positions had been considerably reduced by the Commonwealth Public Service Commissioner when vacancies occurred in connexion with these positions.

518. The Victorian representative of the Amalgamated Society of Engineers stated that the present rate of wages of instrument fitters in the Department is at least 2s. per day lower than that Society's minimum, and that this debars the members of the Amalgamated Society of Engineers

fr<;>m entering the service of the Department. ·

F,8564, G

l"tttars • a!!soeta­ tions' claims.

Stated reduction of salaries by Commonwealth Public Service Commissioner.

Wages below standard.

98

Public Service 519. The Public Service Inspector of New South Wales stated that Inspector's view. instrument fitters' work is not uniform, and cannot all be claimed to be worth £150 per annum, and that much of their work is of a simple nature.

520. Your Commissioners consider that the salaries paid to instrument fitters are not sufficient to induce capable men to remain in the Service, and that a rearrangement of wages, with more frequent increments, must be provided if the Department is to place this branch of the engineering division

on a sound basis.

Recommendations 5 21. Your Commissioners recommend that junior fitters; after reaching as to salaries. the minimum wage of £ll0 per annum and proving efficient, should be classified as fitters, and be to £120 per year; then proceed by five annual

increments of £8 to £160 per annum; that the present system of two grades for senior fitters be abolished, and that their salary commence at £170, and advance by two £10 annual increments to £190 per annum; that the salary

Change of designa­ tion recommended.

Proportion o! supervisors to a ttertdants.

Provision for clerical assistance.

· of foremen fitters commence at £200 and advance to £250 per annum, according to the _importancej,of the,..position_toccupied.

Telephone Traffic Supervision.

52 2. The present system '"provides for supervision of telephonists by officers designated supervisors .i..and monitors, only the largest telephone exchanges being equipped with -supervisors in addition to monitors.

5 23. Your Commissioners are of the opinion that the officers designated supervisors are performing work similar to that of senior monitors, and that they should be designated traffic supervisors ; also tliat officers now classed as monitors should be designated junior supervisors.

5 24. Branch and country exchanges in larger towns are equipped with monitors, who should, in the opinion of your Commissioners, be designated traffic supervisors. These supervisors should possess sufficient mechanical knowledge to enable them to rectify minor telephone faults.

525. Your Commissioners consider that in large telephone exchanges there &hould be one supervisor to eight attendants. In small exchanges, where there are not less than five attendants employed, provision should be made for a supervisor.

526. In branch exchanges, monitors, in addition to traffic supervision, a.re called upon to perform a considerable amount of clerical work, such as keeping records and furnishing weekly and monthly returns. Where this class of work precludes effective supervision by these officers provision should be made by the Department for the requisite clerical assistance.

52 7. It was claimed by the of monitors in branch

exchanges in New South Wales that monitors should be enabled to qualify for· the positions of telephone inspectors and managers; by a practical exami­ nation. Your Commissioners are of the opinion that every facility for advancement should be provided these officers, and consider that an effective Facility for advancement required. · , , knowledge of the control and the equipment of exchanges should be the main

consideration prior to granting promotion.

Supervisors' Salaries.

528. The present salaries of supervisors and monitors are as follow:­ Telephone monitor, £ll4, with two annual increments of £6. The officers remain at £126 for three years, then proceed to £132 with a further increment to £138 after one year's service at £132. Two long-service increments of

£6 each are provided at intervals of five years after twenty years' satisfactory service. Supervisors commence at £132 per annum and advance to £156 by four annual increments of £6 each.

OD

52 9. Your Commissioners consider that the of these officers Salaries are not commensurate with their duties, and recommend that the salaries recommended. be as follows :-Junior supervisors-£120 to £156, by £6 biennial increments.

Traffic supervisors-£162 to £180 by £6 biennial increments.

·Traffic Supe·rvisors' Hours.

530. Your Commissioners received evidence from a representatiyP of branch exchange monitors in New South Wales that the number of hours worked is 41! per week; and, in some instances, it was alleged that work on broken shifts in branch exchanges extended over thirteen hours a day.

531. The Telephone Manager in New South Wales stated that in the Sydney Central Exchange the average daily hours worked by supervisors were 6 hours 50 minutes ; male monitors, 6 hours 24 minutes ; and female monitors, 6 hours 33 minutes ; and that in branch exchanges, monitors'

hours average 6 hours 42 minutes per day.

532. The Telephone Manager in Victoria stated that in the Melbourne Central Exchange, male monitors average 36 hours 23 minutes, and female monitors 35 hours 57 minutes, per week.

53 3. Your Commissioners recommend that the Department s4ould Recommendation. establish throughout the Commonwealth a uniform system in regard to the number of hours, and that as far asJpracticable broken shifts should}be avoided. ·

Telephonists.

99

f)34. Your Commissioners received evidence that telephone work has Medical opinion an injurious effect on the health of the telephonist. In Perth, the Common- of telephone work. wealth medical officer was most . emphatic in his condemnation of this class of work as a fit occupation for women, and claimed thathis experience and close study of the condition of the health of the female telephonists warranted

him in condemning this class of work for females. He asserted that the majority of female telephonists suffer from nervous breakdown, and he was of the opinion that they should not serve for more than three years continuously, at the end of which period they should have a rest for one or two years, and not be engaged subsequently for periods of more than two years.

This witness did not consider that the occupation of a telephonist was so severe in its effect on males.

535. Several officials corroborated the above-mentioned opmwn to a certain degree, but alleged that with a well equipped exchange the percentage of nervous troubles is not greater than in any other occupation in which females are employed. Some witnesses stated that the deterimental effect

of this class of work was more noticeable when the strain became excessive, and when the telephonists had to work overtime.

536. Your Commissioners recommend that a medical examination be held to prevent candidates subject to nervous complaints being admitted into the telephonic service, and that the telephonists should be submitted , to a periodical medical examination, with a view to ascertaining whether

the work is having a detrimental effect on their health.

53';'. Your Commissioners, from personal inspection of the work, are satisfied as to the correctness of the statements made that the occupation of a telephonist in busy exchanges is most nerve racking. Your Commissioners consider that females are the most expert telephonists, and that the Department

G2

Opinions of officials.

Medical examina­ tion advised.

Nerve-racking occupation.

Hygienic conditions to be observed.

Number of sub­ scribers attended to by each telephonist.

Load on Sydney telephonists.

Load should be reduced.

Average numbel.' of calls per · telephonist.

:Rate of working.

l'tesult of common battery installa­ tions.

100

should exercise every care to obviate nervous breakdown by improving in every way the working conditions of telephonists. Special attention should be given to the space, light, and ventilation of exchange rooms. Suitably equipped retiring rooms should be provided for telephonists.

Telephonists' Work.

538. There is an absence of uniformity in theJ):mmber of,subscribers' lines attended to by telephonists in the various States. In Hobart, where the common battery system is in operation, each telephonist is able to attend to i40 lines. Under the old system the number dealt with was 100. In the Melbourne Exchange three telephonists attend to 200 flat rate subscribers, and one telephonist to each 100 measured;;service subscribers. On the improved switchboard in the Central Exchange,·'ane telephonist deals_,with 1?0 lines. In Brisbane, each telephonist has to attend to 100 subscribers. ThiS, it is stated, results at times in excessive strain.

539. In Sydney the load per telephonist is 100 subscribers, and com­ plaints were submitted by the telephonists that this load results in excessive overwork. That these telephonists were overloaded was freely admitted by the Chief Electrical Engineer, and the State Electrical Engineer of New South Wales, who both stated that 75 to 80 subscribers per telephonist would be a fair load. The overloading was attributed by the State Electrical Engineer to the excessive use of the telephone by fiat rate subscribers. Recently steps have been taken to reduce the load on Sydney telephonists by erecting a temporary auxiliary switchboard.

540. Your Commissioners consider that the' load on the Sydney tele­ phonists should be reduced at the earliest possible moment, and that the number of subscribers attended to by each telephonist should be made uniform throughout the Commonwealth.

641. To emphasize the extent to which the work of telephonists varies in the several States, the following table is quoted showing the average number of calls answered per telephonist per hour :--Sydney

Melbourne Adelaide Brisbane Robart Perth ..

145·16 126 122•3 113·27 71 68

542. This average is spread over the twenty-four hours of the day, and the average during the busy times (9 a.m. to 5 p.m.) is much greater.

543. The official standard of working is that each telephonist should not be called upon' to answer more than 200 calls per hour, but the Sydney female telephonists stated that their average rate of working was 400 calls an hour. One witness stated that she had answered calls at the rate of thirteen a minute, and that there are other telephonists in the Sydney Exchange who answer 600 calls an hour in busy times. This state of affairs requires immediate remedy.

544. It was also alleged that the work of telephonists is increased by docket recording of measured service calls on magneto-boards, by attending to public telephones, and by the morning test of all lines.

645. Your Commissioners consider thatwhen the flat rate is abolished, and common battery installations completed, it will be possible to attain uniformity of loads on telephonists. The evidence shows that with complete common battery installations each telephonist could attend to frohl 140 to

160 subscribers. This will result in staff economies, and also enable the working hours to be put on an equitable basi!>.

101

Recording Galls.

546. On the common battery switchboard, calls are recorded by means of a meter, the telephonist making the record by pressing a button after an effective call has been made. It appears.that no automatic register has yet been devised which will record only effective calls. The present system is

claimed by the Departmental experts to be satisfactory, and it is stated that no difficulty will be found in keeping account of calls if the measured service is made general.

547. The calls of measured service subscribers who are still connectPd with magneto switchboards are recorded on dockets by the telephonists. This adds considerably. to the work of these officers, and the representa­ tives of the telephonists in New South \Vales stated that1 under present

conditions, it was impossible to record every call. It is claimed, however, by responsible officials that, if the flat rate be abolished, the working conditions will be improved to such an extent that no difficulty will be experienced in ·recording calls on magneto switchboards.

Public Telephones.

548. The Sydney telephonists complain that public telephones arc ·mixed up with ordinary telephones on the various portions of the switch­ boards, and suggested that a special section of the switchboard should be set apart for public telephones. Some action has been taken in this direction,

and the Telephone Manager, Sydney, stated that 18 out of 50 such telephones had.been removed to a special position on the common battery board.

549. The transfer of public telephones to a special section should be completed, as it would result in a better service, relieve the telephonists, and insure collection of the fees, which has sometimes t(be neglected, owing to the strain under which the telephonists work.

Telephone Cabinets.

5 50. Your Commissioners consider that the telephone cabinets, through not being sufficiently ventilated, are most uncomfortable and unhealthy, and recommend that the Department should introduce an improved cabinet.

· Morning Test.

.. '

No automatic register.

101

Work lncroaRod.

Public telophonoa unsuitably placed on

5 51. The morning test (the daily ringing up of each subscriber by tele- Morning test not phonists to ascertain whether the instruments· are working satisfactorily) required. places additional work on telephonists, who claimed that the test was not necessary, as it rarely disclosed .faults. It was stated that time does not

pe.rtnit of the test being made in every case, and that in many instances ·subscribers use their telephones before the test is made. Further, it was alleged that some subscribers object to answering the morning test call.

55 2. Yom Commissioners consider that the results of this morning test are not commensurate with the work imposed . on the telephonists, and that it can safely be abolished, if provision, as recommended,_ be made for efficient inspection of telephones at subscribers' premises.

Check Calls.

55 3. In addition to supervision of telephonists by indoor supervisors and monitors, there is a system of check calls by telephone inspectors who ring up from subscribers' premises to test the manner in which calls are answered. The representatives of the telephonists claimed that these check

calls were unnecessary, and were unfair to them.

5 54. Your Commissioners are seized with the importance of thorough outside checks supervision of the telephonic traffic, but consider that proper supervision within the exchange should reduce the necessity for· outside checks to a mm1mum,

Cords not always available.

102

Equipment.

55 5. Complaint was made by the representatives of the telephonists in New South Wales that proper equipment was not provided for efficient working. Telephonists at the Central Exchange are furnished with fifteen pairs of cords per 100 subscribers, but it was stated that these were not always available, as some had to be used for public telephones and lines from auxiliary positions. Personal inspection of the Sydney Exchange corroborated this

evidence.

Spare outfits not in good order.

55 6. It was further complained that fifteen pairs of cords are insufficient during busy periods. Branch exchange telephonists have ten pairs of cords per 100 subscribers, and it was asserted that fifteen pairs are required for expeditious working; It was alleged that spare outfits of telephonists are not always kept in good order, necessitating a trial of three or four before finding an effective outfit.

Appointment of monitors.

Night duties.

Hours of duty.

55 7. Your Commissioners consider that proper equipment should be furnished in the interests of the public and the telephonists.

Branch Exchanges.

558. The following complaints were made by the representatives of the branch exchange telephonists in New South Wales

(I) Senior telephonists, in addition to working their own positions, are in charge of the exchanges. It was claimed that monitors should be appointed in such cases. Your Commissioners have already recommended the appointment of a supervisor in suburban and country exchanges where the number of telephonists is not less than five. The appointment of supervisors in exchanges when the number is less than five is not justified.

(2) Some night telephonists have to compile returns of calls of each · subscriber during the day. This work was stated to occupy four or five hours each night, in addition to the telephonists' ordinary work, and was claimed to be unjust. It was also

stated that unnecessary testing of connexions has to be performed every night. A claim was submitted that night telephonists' duties should be defined. Your Commissioners consider that this request is a reasonable one, and that efforts should be made not to impose such duties on the telephonists as would seriously interfere;withltheir ordinary work.

·Telephonists' Hours.

55 9. Your Commissioners found that the hours worked by telephonists are not fixed on a uniform scale. In the exchanges ofthe States' capitals, the hours were stated to be as follows :-Sydney average 33 hours 43 minutes per week.

Melbourne

"

33

"

15

" " Brisbane "

37

"

56

" " Adelaide " 44 " per week Perth " 36 " " Hobart " 39 " " 560. In branch exchanges the telephonists work on an average about seven and a half hours a day, and the hours prescribed oy the Department for country exchanges vary from 41! to 46! per week. 561. The hours for night duty (city and suburbs) are 46! to 50 hours, and in country exchanges from 57 to 66 hours per week. A special provision is made that the telephonists in country exchanges need not constantly remain on duty, as an alarm bell is provided to awaken these officials when their services are required.

103

· 103

<'

562. Your Commissioners. recognise the great difficulty in uniformly adjusting the hours of telephonists, but recommend· that in busy exchanges. where these officials are required to give almo&t continuOU3 attention t.J t.lt('ir duties, the hours of working for females (who are employed during the busit':.t period of the day, viz., from 8 a.m. to 9 p.m.) should not exceed 6! lwurs

a day, including a meal interval of 45 minutes, and lO minutes' rest interval

Recommenda t1o111 as to hours.

563. In busy branch exchanges where females are employed, approxi-· mately the same number of hours should be worked. In branch exchangt\s where the traffic is more or less of an intermittent nature, the working homs of all telephonists in the daytime should not exceed seven hours a day, including

a meal interval of 45 minutes.

564. A complaint was made by the representative of the New South Wales Telephone Exchange Association that male telephonists at branch exchanges average over seven and a half hours a day, that in some cases telephonists work from 7 a.m. to 3 p.m. without a break for meals, and that

long broken shifts are worked with only a short break for meals.

565. Your Commissioners consider these hours to be excessive forthe work of telephonists, and are of the opinion that it is to allow at

least 45 minutes for meal intervals. The Department should so staff its services as to be able to make the requisite arrangements for instituting this provision. In main branch exchanges, where the work of male telephonists is confined to night shifts, the hours of duty should not exceed eight per

night.

TELEGRAPH BRANCH.

Automatic Teleg1·aphy.

566. There are several systems of automatic telegraphy, the best known of which are the Wheatstone, the Baudot, the Murray, and· the Hughes. Evidence was given to the efiect that of automatic systems the Wheatstone is the most economical and the most suitable for Australian conditions.

56 7. The use of automatic telegraphy is justifiable on lengthy lines, such as the Inter-State lines, and on shorter lines where the traffic is excessive. It is especially useful in disposing of accumulated work after interruptions or breakdowns of telegraph lines, on account of the greater speed which can

be attained by this apparatus compared with manual working

56 8. In addition to evidence supplied by departmental experts, your Commissioners have obtained the following information from an address delivered · before the Institution of Civil Engineers in Great Britain, on 22nd June, 1910, by the Chief Electrical Engineer of the British Post Office:-

There are two distinct methods of increasing the output of telegraphic wires-the Mercardier or tuning fork system, and the automatic ·or machine transmitting instruments.

(1} Mercardier System.

This system depends on the superimposition of musical vibrations on a telegraphic circuit at one end of the line, or, if duplexed, at both ends. To effect this a number of electrically driven tuning forks, arranged to vibrate at different frequencies, are

connected through telegraphic keys to the line wire, so that in depressing any one key a series of electrical vibrations, of the frequency of its companion tuning fork, are sent through the line. The receivers at the other end of the wire are mono-telephones.

each of which is made and adjusted to respond to only one frequency. This method in theory, of sending as mnny

as twelve simultaneous messages in one direction, or double that number if duplexed.

Hours at branch exchanges.

Recommenda tiona for branch exchangea.

Automatic systems.

Use of a.utoma.til systems.

Tuning forl­ system.

Machine transmitting system.

104

(2) Automatic, or Machine Transmitting Instruments.

The Wheatstone system has been very fully developed in the United Kingdom. It is capable of dealing with traffic at a maximum rate of 450 words a minute. In the central London office, items of news may have to be transmitted to 50 or more towns taneously. Circuits are made up for news transmission, each providing for a number of towns, some of the circuits being of a permanent character, and some formed temporarily to meet special requirements. As many as eight \:Vheatstone slips can be punched simultaneously in one operation, and each length of slip is run through the transmitters at the highest speed considered judicious. When long press messages are received they are divided into sections, and each section handed to a separate telegraphist for perforating, so that the transmitting apparatus . can be kept at its maximum capacity. For ordinary public

message traffic on lines of moderate length, the ·wheatstone has certain disadvantages, namely, the initial outlay in perforating the slip, its distribution, and the re-distribution of the received slip amongst the writing telegraphists. Generally, it is con­ sidered best to work the Morse simplex, duplex, or quadruplex on circuits of moderate length. By the substitution of a chemical for an electro-magnet receiver in

Wheatstone working, a maximum speed of from 1,000 to 1,200 words is possible under favorable conditions, but the difficulties arise of dividing and distributing the slips amongst the large nu,mber of writers necessary to keep pace with the instrument, the pre­ cautions needed to avoid loss of messages and words, and the delay in obtaining repetitionslwhere errors, false signals, and missing

words render this necessary. ·

(3) General.

Both the foregoing methods increase the carrymg capacity of the wires, but none of them increase the output per operator, nor do they diminish the working cost in the instrnment room. To get over this difficulty, electrically or mechanically driven typing apparatus has been substituted for manual transcription. The Hughes method of transmission has many advantages, as it provides

a clearly typed message for delivery, instead of a written one ; it removes a possible source of error in transcription, and the speed of working is 25 per cent. higher than that of the Morse system. The disadvantages of this instrument are the interval of time that elapses between the transmission of two consecutive signals. This waste· of' time is obviated in the Baudot system

by the adoption of multiple telegraphy, by means of which four or six channels simultaneously can be provided on the one wire, each being worked manually. The Baudot system admits of the transmission of a much lagrer number of messages over each wire than the Hughes, and it isialso more flexible. It isllargely used in France. The Murray system has undergone extensive trials. Both this system

and Creed's improved Wheatstone transmitter are used in the British Post Office. Besides the above systems there are several writing telegraphs, such as the Pollak and Virag system. There is also the photographic

printing method of Siemens and Halske.

569. Expert witnesses admitted generally that the Wheatstone is Saving of lines. a great line saver, but it was alleged that its use necessitated increased staff in preparing and transcribing the messages. Against this contention it should be stated that with Wheatstone working the traffic could be disposed

o£ with less lines than are required under the present system, · _

1ua

105

57 0. Although the advantages of the Wheatstone working were known No sustained effort to the Department, no sustained effort was apparently made to introduce by Department. that system until the end of last year. It had been successfully used Perth and Adelaide to some extent, and is now being generally adopted on

Inter-State lines.

5 71. Your Commissioners consider that the earlier introduction of the Wheatstone system would have resulted economy to the Department, and would have given satisfactory results to the public, and, therefore, recom­ mend its adoption on all lines where the volume of business is sufficient to

warrant its application.

Wireless Telegraphy.

Recommendation

57 2. Your Commissioners examined· the technical officers of the Depart-ment on the matter of wireless telegraphy. The evidence showed that the employment of wireless telegraphy for ordi1i.ary traffic is not financially Not ftnncially ju.sti:fiable, as it cannot compete on an economic basis with telegraphy by justifiable. Wire.

573. With regard to the cable traffic between Tasmania and the main­ land, it was assBrted that the volume of business transacted is beyond the capacity of a wireless system.

57 4. The establishment of wireless stations at prominent points on the Establishing Australian coast appears to be necessary in connexion with shipping and wireless stations defence matters) but that is a subject foreign to the scope of this on coast.

Concentrator System.

57 5. The attention of your Commissioners was directed by several witnesses to the concentrator system, or intercommunication switch, in connexion with telegraphy. This is a system by means of which telegraphic lines leading into a common centre can be switched on to one another as desired,

thus obviating the repeating of messages at the Central Office .. This system is said to be in use in England and Belgium.

57 6. It was stated by the representative of the Commonwealth Post and Telegraph Association that the intercommunication switch is used in Sydney in cases where a suburban station has a number of messages for another station, thus saving repeating at Head Office. The system would,

apparently, only be of advantage in the large c?-pital cities of the Common­ wealth. The development of telegraphic traffic may, in the future, render it advisable to make further use of the concentrator system in the large cities.

Condenser Telephones.

IntercoiDZnuwdca­ tion switch.

Mainly of advantage in large cities.

57 7. The condenser system permits of telegraph lines being used for use in country telephonic purposes, and enables telephonic services to be supplied to districts districts. where the cost of erection of separate telephone lines would be excessive.

57 8. Complaints were made that the superimposition of condenser telephones on telegraphic circuits .has the effect, in many cases, of reducing the working capacity of the lines telegraphically, and instances were quoted in which telegraph lines have been thus unduly overloaded.

579. Although the condenser system is, in certam cases, of great advantage in providing telephonic facilities, its use should be restricted to those lines on which no detrimental effect results to the working of the telegraph lines. Where it is found that it interferes with telegraphic working, the

condenser service should be discontinued, and the necessary telephone lines provided.

Telegraph lines affected.

Restriction of condenser system.

Complaints received.

Objections to proportional grading.

Base of proportional grading.

Commonwealth Public Service Commissioner's view.

Commonwealth Public Service Inspector's statement.

106

Teleqraphists.-Proportional Grading.

580. Complaints were received from representatives of Post and Telegraph Associations throughout the Commonwealth in regard to the system of proportional grading of telegraphists.

581. The general objections to proportional grading were-that it leads to differential treatment; that it•is a barrier to progress not encountered by any other class of clerical officer; and that it creates discontent by establishing invidious distinctions. It was further contended that proportional grading fails to remunerate many officers according to value of the work done, prevents recognition of merit, and will ultimately lead to the deterioration of the Service.

582. Originally proportional grading was based on the proportion of one-third in the Fourth Class, and two-thirds in the Fifth Class. Subsequently, it was fixed, as at present, namely, two-fifths in the Fourth Class, and three­ fifths in the Fifth Class.

583. The Commonwealth Public Service Commissioner stated that, of the existing staff of 1,259 telegraphists, no less than 411, or nearly one-third of the total number, have received promotion from Class V. to Class IV. since July, 1904 (inclusive of Classification), and this independently of promotions from grade to grade in Class IV., or to other positions, such as postmaste.rs and clerks outside the telegraphists' ranks.

5 84. This witness further stated that the responsibilities and duties of this class of officer are not heavy; that the hours are short; that the remune­ ration is most adequate; and that their avenues of promotion far exceed those of any other class. ·

585. The Commonwealth Public Service Inspector of.New South Wales submitted the following evidence, viz. :-The[scheme now in operation provides for the retention of three-fifths of the total number of telegraphists in the Fifth Class, Clerical

Division, two-fifths being maintained in the Fourth Class, and of these two-fifths seven-twelfths receive £185 per annum, and are known as Grade I., Telegraphists; one-quarter receive £210 per annum, and are known as Grade II., Telegraphists; one-twelfth receive £235 per annum, and are known as Grade III., Telegraphists; one-twenty-fourth receivei£260 per annum, and are known as Grade IV., Telegraphists; one-twenty-fourth receive £285 per annum, and are known as Grade V., Telegraphists.

To understand the system, it is necessary to show the difference between telegraphists' work and ordinary clerical employment.

The work of a telegraphist does not as a rule improve in quality with the lapse of time. Presuming that he has attained the expert stage, he may until the end of his service continue to perform the same class of duty. He has to send receive messages, and

though sending and receiving may vary to some extent in difficulty with the amount of business on his line, or with the frequency of code messages, or with the inferior working of circuits, it cannot be said, as may be said of many clerical positions, that the work is definitely increasing in value. Even the factors of experience and knowledge, which go so far in increasing an officer's value in other positions, have small weight in the position of telegraphist. Instead of improving he not seldom deteri,orates with the lapse of time, and even if his mental quality and experience show better­

ment, if these are not accompanied with the retention of his manipulative skill, he has to give place to others who have reached or retain the)xpert standard.

• 107

A telegraphist through his career is practically kept to his work of translating from the written message into code-signals on his instrument or performing the reverse operation. His work involves no originality, and would not ordinarily justify the payment of

the maximum salary awarded under the proportional grading scheme to telegraphists. On the question of value, it can be shown conclusively by the returns compiled by the officers themselves, under instruction from the Commissioner, that the average

graphist does not work at high pressure continuously, nor does he as a rule maintain, even through his short day, an averagt> nearly approaching that declared by the Chief Electrical Engineer to be a fair amount to require from an operator, viz., 40 messages

per hour.-There are cases where this rate is exceeded forlshort periods, but these are rare, and are succeeded by intervals where the work is much below the maximum rate referred to. The normal records indicate

that many circuits are only intermittently busy, nor is the work difficult to learn or hard to. carry out. The success in teaching telegraph messengers who possess aptitude shows that to beconw a good manipulator does not depend upon education. . Ru,pidity

and accuracy in sending and ability to interpret inferior signals and read inferior manuscript may be characteristic of a telegraphist, whose quality otherwise is inferior to men with less operating expertness.

If the Commissioner had been governed by considerations of work value alone, the telegraphists would have been worse off than are to-day, and the prospects of advancement would have been inferior, as they certainly were, under the State.

In the arrangement now in force, therefore, it was recognised that the ordinary principles of promotion did not apply. Stagnation in the class would have resulted with consequent discontent, and the desire to escape into other avenues of work would have been

accentuated with the resultant loss of efficiency.

By providing for advancement of a part of the class beyond the u,ctual work value, an incentive to maintain efficiency is provided. Opportunities of promotion for many deserving men from the Fifth Class have been made, and the average remuneration of the whole class materially raised.

At the inception of Federation the average rate of pay in this Sate was £153 Is. per man; it is now £175 2s. 9d.

It can scarcely be said, therefore, that the telegraphists in New South Wales have suffered under proportional grading. It should be added that the telegraphists have shared in the scheme for long­ service increments to Fifth Class officers, and this will make the

comparison even more favorable for the

586. Upon consideration of the evidence your Commissioners cannot indorse the proportional grading system, which provides for an arbitrary division of telegraphists into grades irrespective of work value. It is obvious that the system of proportional grading must be inequitable in its incidence

when the varying conditions of the States are taken into consideration.

58 7. Your Commissioners recommend the establishment of a minimum and a maximum salary, with a definite line of advancement.

Salaries of Telegraphists.

Proportional grading inequitable.

58 8. The representatives of the Post and Telegraph Associations varied Telegraphists' in opinion as to the amount of salary considered equitable remuneration for salaries. their duties. The salaries claimed to be equitable for expert telegraphists

107

Scale of salaries.

108

ranged from £210 to £285 per annum. Telegraph managers stated that the average salary of a competent telegraphist should range from £200 to £235 per annum. Other leading officials e:xpressed the opinion that the present salaries are 'sufficient.

589. The scale of salaries provided by the Commonwealth Public Service Commissioner is as follows :-Three-fifths of the telegraphists shall be in Class V. of the Clerical Division, minimum £4:0 and maximum £160 a year, with long-service increments to £180 ; the remaining two-fifths in Class IV. are graded-seven-twelfths at £185 per annum, one-fourth at £210 per annum, one-twelfth at £235 per annum, one twenty-fourth at £260 per annum, and one twenty -fourth at £285 per annum.

590. The Commonwealth Public Service Commissioner submitted the following table, showing the average salary of telegraphists at the inception of the Commonwealth, 1901, and in the year 1!)09

Average Salary of Telegraphists.

State,

- ------

New Scuth Wales Victoria Queensland South Australia ...

·westem Australia rrasn1ania

and stated-

At Federation.

£

158 154 153 156 156 118

At 1st ,January, 1909.

£

180 165 176 179 183. 175

Increased average per officer.

£

27 11 23 23 27 57

"The number of telegraphists at lst January, 1909, was 1,259. If these officers were paid at the State rates in vogue at the date of Federation, instead of the e:xisting Commonwealth rates, a saving of £28,8ll per annum would be effected. In other words, under the proportional grading system, which has been adversely criticised, these officers are nearly £30,000 pe.r annum (or £23 per annum per officer)\ better off than they wouldjhave been under State

conditions. -

"In comparing Commonwealth with State conditions, it is sufficient to mention that Victorian telegraphists under State law only had si:xteen positions in Class IV., with a maximum of £235, while under Commonwealth they have 125 positions in Class IV., with a maximum of £285. In Queensland, the ma:ximum salarv for telegraphists under State was £250 as against· £285 under "com­ monwealth. Under the State, it took an operator ten years to rise from £65 to £160, while under Commonwealth, a similar

officer at the same age would advance from £60 to £160 in five years. In Western Australia, the highest salary paid telegraphists by the State was £210, and there were only eighteen officers receiving above £180, while at present there are 59 telegraphists receiving over that amount, including ten with salaries above £210 and ranging up to £285.

"Complaints have been frequent that postmasters and ordinary clerical officers are placed at a disadvantage in the matter of promotion as compared with telegraphists,"

109

5 91. Your Commissioners consider that the iD;equitable incidence of the present scheme of proportional grading is shown in the following tabk, which accepts for the purpose of illustration the number of telegraphists at 1,200:-

. '

Grade- Number-

Class V. 720.

Class IV., Grade l .. _ 280

1:!0 40 20 20

" " 2

" " 3

" " 4 , , 5

Salary--

From £120 to £160, with Long Sen·ice hH:reml'nts to .t.:i ... tl.

£185 \ :dO ( Telegraphists are able to get i11to 235:, Class IV. only when vaea11eies 260 '\ oecur

285)

59 2. Your Commissioners recommend that the minimum salary of Salaries telegraphists be £120, as at present, and that the maximum for ordinary recommended. telegraphists be £210, attainable from £120 by two annual increments of £20 each, and five annual increments of £10 each. For the positions of senior telegraphist, supervisor, testing officer, assistant manager, and manager,

salaries should range from £235 to a maximum of £600 for the position ol' State Telegraph Manager. Promotions beyond £210 to depend upon the recommendations of the Staff Committee.

Hours of Telegraphists.

59 3. 'rhe Commonwealth Public Service Commissioner ruled in May, 1906, that the hours for staff offices should be six for continuous work, and at other offices, seven hours per day, with an extra hour in each case to meet emergencies. In many instances ·the Department arranges the work

upon the basis of a short and a long working day. The ho_urs are averaged on a fortnightly basis before recognising overtime.

5 94. Complaints were received from representatives of telegraphists in several of the States that the Commissioner's ruling (which was admitted to be equitable) was not enforced, and that the hours worked by telegraphists were not uniform throughout the States.

595. In Sydney the average hours were said to be 6! per day. The morning staff works 6! hours, the evening staff 5! to 5! hours a day, but it was alleged that the evening staff is sometimes called upon to do " roster " duty up to 2, 3, or 4 a.m.

596. In Brisbane the daily average hours were stated to be-Morning staff .. 5·hours, 55 minutes. Afternoon staff [, " 57 " All dav staff .. 7 " 10 " Night "staff 6 " 36 " The telegraphists in Brisbane complained that the afternoon staff there works longer hours than do similar staffs in Sydney and Melbourne. .

Ruling of Commonwealth Public Service Commissioner.

Telegraphists' complaints.

Sydney hours.

Brisbane hours.

59 7. In Hobart, where telegraphists' average hours were said to be Hobart hours. 6!- hours a day, there are alternate "short" and "long" days, the former being 5 hours. Complaints were made that the long day averaged from 6! to 13 hours, and that each telegraphist worked after midnight at least once

a week. It was stated that these long shifts nullify the advantage of the 5-hour day.

o98. In Great Britain, telegraphists work 8 hours a day, including a Hours in meal interval of half-an-hour, and also two rest intervals of 15 minutes Great Britain. It was alleged that the English. telegraphists work under easier conditions than obtain in the Commonwealth.

10

Recommendations.

Effect of telegraphists' work.

Alleged severe nervous strain.

Grading of telegraphists.

•

Promotion.

Promotion tests.

Commonwealth Public Service Commissioner's view.

Telegraphists who have lost skill.

110

599. Representations that in staff offices work in excess

ofm hours in any one day should be paid for as overtime, and that in oth:r offices where the work is of an intermittent character, overtime should be paid for after 8 hours work in any one day.

600. Your Commissioners recommend that protracted shifts should be avoided as much as possible, and that a sufficient staff be appointed to enable this to be done wherever necessary. Your Commissioners consider that the ruling . of the Commonwealth Public Service Commissioner as to hours for telegraphists in staff offices should be enforced. In the less busy offices, whei"e · the work is of an intermittent character, your Commissioners recmnmend a hours working day, with a meal interval of 45 minutes.

6 01. Your Commissioners, in recommending the number of hours to be worked, and in their conclusions as to salaries, have been influenced by the knowledge that continuous telegraphic operating is a most trying occupation. It was alleged that the opinion of leading medical experts is that, pathologically · considered, the occupation of a telegraphist is more deleterious in its effects

than any trade or profession hitherto regarded as dangerous, and that the strain on the brain and heart is very severe. Evidence was tendered that the work of telegraphy, when consta.nt, imposes a severe nervous strain on

the operator, occasioning in many cases nervous breakdown, insomnia, and mental depression, and instances were quoted of serious cerebral troubles.

Telegraphists' Promotion.

602. Telegraphists have been graded by advisory boards o£ expert officers into five grades of efficiency, viz :-(1) First class, (2) very good, (3) good, (4) moderately good, and (5) fair. Promotion is stated to be made in accordance with this grading. Since this evidence was given the number of grades has been reduced from five to three .

6 0 3. Your Commissioners are of the opinion that this system of internal grading is unnecessary, and that telegraphists' promotion should depend upon their general capacity. Your Commissioners recommend that pro­ motion be based on the efficiency of the opera tor to be determined by the Staff Committee.

604. Your Commissioners have previously recommended that two grades of telegraphists are sufficient. Advancement :from £120 to £210 should be by annual increments dependent on good conduct, and general efficiency. For promotion above £210 a year a practical test should be imposed, in addition to judging officers on general capacity. The present test for promotion is a test of speed and accuracy at the rate of 32 words a minute. Complaints were made that such test is unfair, as many candidates for promotion fail on account of nervousness. Your Commissioners are of the opinion that a fairer test would be three tests, each of .an hour's duration, under actual working conditions.

605. Complaints were also made by telegraphists that their avenues of promotion outside their own class are restricted. The Commonwealth Public Service Commissioner stated that telegraphists have three avenues of pro­ motion, namely, as telegraphists, as clerks, and as postmasters.

606. It was claimed by the telegraphists that they are discriminated against in regard to clerical vacancies. The practice is to transfer tele-graphists, who have deteriorated in manipulative skill, to postmasterships.

6 0 7. Your Commissioners consider that telegraphists should not be retained at telegraphic work after showing deterioration, and that these officers should be absorbed into other clerical branches; those with the necessary qualifications being appointed postmasters. Your Commissioners are of the opinion that postmasters should possess a knowledge of telegraphy

111

Use of Mecographs.

608. It was stated that telegraphic operating frequently caused break­ down of the wrist, and a mechanical device known as the mecograph is requisitioned for the purpose of affording relief to telegraphists who are so affected. Your Commissioners do not recommend the compulsory use of

this appliance by all telegraphists, but consider that the Department should sufficiently equip the offices with these instruments, or other similar mechanical devices, so that relief may be provided before an actual breakdown occurs.

Typewriters for Telegraphists.

609. The use of typewriting machines by telegraphists is governed by Public Service Regulation 166, which provides that where any telegraphist is required to use a typewriter, and to supply the machine and accessories, an allowance not exceeding 15s. a month may be made by the authority of

the Chief Officer.

61 0. The representative of the Commonwealth Post and 'relegraph Officers' Association stated that in some of the States lOs. a month was allowed for typewriters, and requested that a uniform rate of 15s. a month should be allowed until the machine is paid for, the hire to be subsequently fixed at

lOs. a month. A leading official stated that the Department found this a more economical practice than for the Department to supply machines.

611. Your Commissioners do not consider that the hiring of typewriting machines is an economical practice, and, therefore, recommend that the Department should provide these machines, and make theiT use general throughout the Commonwealth, where the volume of business is sufficient

to warrant it.

Tf(legraph Messengers.

612. Numerous complaints were received as to the unsuitability of many of the lads employed in the capacity of telegraph messengers. The evidence was unanimous that the statutory provision requiring the retire­ ment of messengers at the age of 18 years (unless previously promoted) has not proved beneficial to the Service. Owing to this provision the Depart­

ment has lost the services of a number of useful officials. Further, it has had the effect of preventing a desirable class of youths from entering the Service; but it was stated that the retirements necessitated by the above-mentioned provision are now infrequent.

. 613. During the course of this inquiry, the retiring age has been extended to 20 years by an amendment of the Commonwealth Public Service Act. 614. Your Commissioners recommend that the provision relating to the retiring age of telegraph messengers should be abolished, and that youths once

admitted should be retained in the Service after serving a period of satisfactory probation.

615. In view of the rapid expansion of the Department, the great use made of temporary employment, and the difficulty in obtaining experienced officers, your Commissioners consider that it would be a sound policy for the Department to retain these messengers. They would provide an excellent

recruiting ground :from which to draft staff for other branches of the Depart­ ment. If this recommendation be adopted, it will be necessary to exercise more discrimination in the admission of these youths to the Service.

616. Your Commissioners recommend that the age of admission, now 13 years, should be raised to 15 years, and as an additional inducement to that of permanency of employment, the salary attached to the position should be increased.

Inspection of Telegraph Messengers. 61 7. Your Commissioners found that the outdoor supervision of telegraph messengers was not sufficient. The times of departure and return of the mes­ sengers are recorded in the Telegraph Despatch Branch, but, in the opinion

Use of mecograph.

Use of typewriting machines.

Recommendation regarding type­ writing machines.

Retiring age.

Provision should be abolished.

Retention of messengers.

Age of'admission.

Insufficient inspection.

111

Supervisors recommended.

Receipts for telegrams.

Commonwealth Public Service Inspector says boys discouraged

on men's work.

Recommendation.

Post-office

112

of your Commissioners, this does not provide a sufficient check. Promptness on the part of telegraph messengers is a primary essential of good servjce. Some wi·tnesses con1plained that the boys loitered in the execution of their duties.

618. Your Commissioners recommend that outdoor supervisors of telegraph messengers be appointed to see that these officers carry out their duties with promptness and efficiency. Recently the Department announced its intention of taking action in the direction indicated.

619. A number of witnesses recommended the re-introduction of the receipt system for t elegrams. Responsible officers stated that such a system is impracticable owing to the delay which would be occasioned by obtaining receipts. Your Commissioners consider that effective supervision of telegraph messengers' work would obviate the necessity for such receipts.

Boy

620. Representatives of associations in many of the States alleged that boys are employed on men's work, and they complained that the Department ·thus secured cheap labour. Several witnesses stated that boys fourteen to eighteen years of a,ge were employed as night telephone attendants, and to

deliver telegrams to suburbs inside certain metropolitan districts. The Commonwealth Public Service Inspector of New South ·wales stated that the employment of boys on men's work is discouraged by the Commonwealth Public Service Commissioner.

6 21. Your Commissioners recommend that boys be not employed continuously on men's work, and that night duty for boys (except delivery of telegraph messages) be abolished.

PosT OFFICES. • Grading.

6 2 2. The Commonwealth Public Service Commissioner has provided a classification scheme which grades post-offices into four classes (corresponding with the lowest fo11r classes of the Clerical Division), and which subdivides these classes into thirteen grades, as follows :-Fifth Class, Grade 13, . salary £120 to £180; Fourth Class, Grades 12 to 8, salary £185 to £285; Third Class,

Grades 7 to 3, salary £310 to £400; Second Class, Grades 2 to l, salary £420 to £500.

623. The following table shows the number of official post-offices on 1st January, 1910:-

CO• I I _ _N_e'_w _vi_ct_or- ia.'""

£

460-500 420-440

2 1

3

4

5

2

3

4

5

6

7

8

9

10 11 12

13

400 380 360 335 310

285 260 235 210 185

120-180

l

l

13 2

9

15 8

29 35 40 92 41

65

2

1

2

5

9

10

21 21 11 16 19

51

land.

2

3

3

3

1

2

2

13 9

15 18 .14

7

South Australia.

1

1

I

1

10 5

9

26 20

25

Western Australia.

2

1

3

2

5

1

IO 13 15 14 10

40

Tastnanin..

1

2

2

1

3

7

1I

18

Total.

7

"(

18 II

18 33 23

83 84 93 173 115

206

Total 351 168 92 99 116

1

871

.

This classification scheme originated 1908.

A statutory period has not been fixed for further regrading. .

113

624. The Commonwealth Public S:;rvice Commissioner stated that the grading of post-offices is determined by the volume of business transacted, not by the revenue earned, and that a uniform system is applied to the Com­ monwealth. This witness further stated that the whole of the business at a post-office, including letters posted and received, ma,ils despatched and received,

telegrams despatched, received, or repeated, money orders and postal notes issued and paid, savings bank deposits and withdrawals, telephone work, Treasury transactions, supervision of staff, &c., is taken i o account in fixing the grade of every office.

625. The Commonwealth Public Service Inspector of New South Wales considered that the grading system was fair, and that in the event of the number of grades being reduced anomalies would result in: regard to salaries and work value.

626. Complaints were made by witnesses, including leading officials and representatives of Associations, that this grading scheme is too elaborate in its application, and necessitated considerable expense in transferring officers to fit in with the multifarious grades. It was stated that the cost of thes('

transfers in 1908 was from £3,000 to £4,000, in addition to the cost of alteration of quarters to suit the incoming postmasters.

62 7. Further, it was alleged that considerable disadvantage was experi­ enced' by the publie owing to postmasters not being possessed of local know­ ledge. Several leading officials in the Department stated that the grades should be reduced to five to correspond with the grades in the Clerical Division,

which they alleged would overcome the expense and general disadvantages mentioned.

628. Commissioners consider that the basic principle of the grading scheme is equitable, as the work done by officials, and not the revenue earned, should be the predominant factor in fixing grades. It is conceivable that in some offices a very large revenue may be returned, but the work may

be of small account, while in other offices the contrary applies.

629. Your Commissioners have observed that since the evidence in connexion with post-office grading was given, the Commonwealth Public

113 ' \

How the grade is fixed.

Public Service Inspector on grades.

Scheme too elaborate.

Reduction of grades advocated.

Basic principle equitable,

Service Commissioner contemplates reducing the number of grades from Reduction of thirteen to seven, with the object of removing the defects that are apparent number or grades. in the existing scheme.

630. It was the intention of your Commissioners to advise that the number of grades be considerably reduced. Your Commissioners recommend Recommendation. that the proposed alteration in grading, as indicated by the Commonwealth Public Service Commissioner, be immediately adopted, witli

a view to a further

reduction to make the grades correspond with the classes of the Clerical Division. The reduction in the number of grades would result in large savings, while at the same time ministering to public convenience, and making for contentment in the Service.

Hours of Postmasters.

631. Representatives of Associations in some of the States alleged that country postmasters work excessive hours, and that certain postmasters are Excessive hours not able to properly supervise on account of the great amount of work required alleged. of them. It was also alleged that country postmasters are obliged to .work on

Sundays. The Commonwealth Public Service Inspector of New South Wales stated that in some instances postmasters may be overworked, owing, to some extent, to the abnormal conditions which have prevailed for some time, but that, with reasonably staffed offices, postmasters need not be overworked.

This witness contended that in the vast majority of cases postmasters are not overworked. F.8564. H

Rebuttal by Commonwealth Public Service Commissioner.

114

6 3 2. The Commonwealth Public Service Commissioner stated that while, in some few instances, a postmaster might find the strain of supervision and control pressing heavily, this was inseparable from the nature of his calling, and was not greater than that experienced outside the Service by men in charge of important undertakings. He was satisfied that in the vast majority of cases the statements submitted as to the hours of postmasters were absolutely unreliable, and always showed that they commenced at an early hour if a mail was received or despatched, and were on duty to a later hour, if the same work was required. An instance was quoted in which a postmaster in Western Australia informed the Commissioner that his dav's work com­ menced at 4.30 a.m., but, on further inquiry, the learned that

this officer opened his bedroom window at that hour, took the mail in, and retired to bed again. This witness further stated that, in the generality of instances, apart from "worki_ng" the long hours indicated, postmasters are not even in attendance either at the offices or their quarters during the periods mentioned.

Recommendation.

633. Your Commissioners are of the opinion that the larger offices should be so staffed that effective supervision and control shall not be impaired through insufficiency of staff. They recommend that in cases where it is indisputably shown that excessive hours of working in country offices are in any sense continuous, provision should be made for increased staff. The conditions existing in country offices do not allow of definite hours being fixed, but your Commissioners consider that the work of postmasters should not exceed eight hours a day on average working.

Salaries considered fair.

Claim for abolition of rent charge.

Rent deduction said to vary.

Must reside on premises.

Commonwealth Public Service Commissioner against free quarters.

Postmasters' Salaries.

634. The average salary paid to postmasters has increased about £20 per annu.m since Federation. The minimum rate in New South Wales has been advanced since Federation from £100 to £160 per annum, and provision has been made for a still further increase by long-service increments to £180. Your Commissioners have made recommendations under the heading of

"Clerical Division" which will apply to Fifth Class postmasters. The S?

Rent for Quarters.

635. The practice of the Department is to charge postmasters 10 per cent. on salary for rent of quarters. Representatives of Postmasters' Asso­ ciations claimed that this rent charge should be abolished. These witnesses stated that the practice of postmasters residing in the official premises resulted in public and official convenience.

636. Further, it was contended that postmasters, through residing on the premises, acted 'as caretakers and watchmen, which duties should be set off against the rent charges. It was alleged that a saving to the Department was thereby effected of the cost of extra assistance, which would have amounted to more than the rent charged.

637. It was stated that the deduction for rent for the same quarters varies with the salaries of the officers occupying them.

638. The Commonwealth Public Service Commissioner stated that one of the conditions of service is that postmasters must reside on the post-office premises in order to be available at times of emergency; that the rent fixed is mu.ch pelow the rental value. of the quarters; that instances have occurred where postmasters, on transfer to post-offices without quarters, have com­ plained of having to pay higher rent for private residences; that 86 per cent. of the postmasters are charged rent ranging only from 6s. to lOs. 9d. a week. This witness contended that there was no warrant for conceding free · quarters; that if rent were abolished the value of the quarters would have to be considered in fixing salaries.

115

Total 180

642. In New South Wales these officers' salaries range from £140 to £265; one postmistress only being in receipt of the latter salary; one receiv­ ing £235; and another £210. In Victoria the salaries range from £160 to £210, on which mark there are only four postmistresses. The salaries paid

in South Australia range from £UO to £160. The postmistresses of Western Australia are all in the 5th Class of the Clerical Division. In Tasmania the salaries range from £140 to £210. The only evidence "' received from postmis!resses was that tendered by the Victorian Women's Post and Tele­

graph Association, whose representative complained that the work of post­ mistresses had been undervalued, and that £210 is the present maximum for postmistresses in Victoria. It was claimed by this witness that post­ mistresses should be allowed to advance as far as they can prove their

capacity, and that females have capably managed offices graded subsequently at £260. 643. It was stated by other witnesses that females are not so suitable as males for controlling post-offices where the supervision of staffs is required.

Your . Commissioners consider that, while this may be generally the case, postmistresses now in the Service should, if they show the necessary capacity, receive equal treatment in the of promotion.

644. Your Commissioners do not recommend the employment of females tC\ take charge of official post-offices, but consider that those now in the .Service should receive the same treatment as other officers. (See also Minority Report, paragraph 1072.)

PosT-OFFICES . OTHER THAN OFFICIAL OFFICES. 645. The Department provides, in addition to official post.offices, three other classes of offices, namely, the receiving, the allowance, and the semi­ official office. The following table shows the number of such offices in 1908 :-

::' ew . . Queens- South

VJCtoria. land. Australia

Tasntania TotaL

_..;.._ __________ --------------

Number of semi-official and allowance offices . . . . 1,615 1,465

Number of receiving offices 526 713

407 896

587 29

Totals 2,141 2,178 1,303 . 616

H 2

204 72

276

333 4,611 36 2,272

369 6,883

Postmistresses' salaries.

Suitability of women for post-oftlces.

•

Recommendatioa.

115

Free mail bag.

Nature of receiving post-office.

What constitutes an allowance office.

Nature of semi­ official offices.

Alleged disabilities resulting from semi-official offices.

Conflicting evidence.

•

Semi-official salaries said to be inadequate.

Appointments to semi-official offices.

Status not uniform.

116

646. The respective functions and powers of the above-mentioned offices are as follow :-Receiving 0/fice.-This is the lowest grade of office. The first facility provided is a free bag wherever there are two or settlers

on the mail line. The letters are sent in care of one person, who is deputed by the other settlers to undertake the receiving of correspondence, its delivery, and enclosing of same in the mail bag, which has to be taken to the nearest post-office. In this case the Department accepts no responsibility. The next facility provided is a receiving office, the revenue from which must

amount to approximately £5 per annum. The allowance paid varies from £1 to £8, the usual allowance being £5. Allowance Office.-When the revenue amounts to £15 per annum, a receiving office becomes an allowance office. The allowance paid

ranges from £10 to £70 a year. ·

6 4 7. To afford equitable treatment to this class of employe, your Commissioners recommend that the Department review the whole question of allowance and receiving offices, with the object of ascertaining the volume of business transacted by these offices, so as to enable fair remuneration to be provided in each case on its merits.

Semi-official 0/fice.-A semi-official office is established when the minimum revenue amounts to £200 per annum (£40 of which must be telegraphic and telephonic revenue), and continues at that amount of revenue or over for a period of twelve months. When the revenue has reached £400 per annum, a semi-official

office is entitled to become an official office. The allowances paid were stated to range from £78 to £ll0 per annum.

648. Representatives of Associations contended that the practice of reducing official offices to semi-official status where the revenue is £400 or under vis open to abuse, as it tends to defeat the principle of the minimum wage by securing the services of a certain class of employe at a low rate of wage. It was also said to have the effect of discouragjng younger officers in the service, whose avenues of promotion are restricted by this class of office not being classified as official. It was also contended that no office in the line of important telegraphic circuits should be semi-official.

649. Your Commissioners received a considerable amount of conflicting evidence in regard to the allowances paid. It was stated by the Permanent Head of the Department that the allowance for semi-official offices must amount generally, including quarters, to £ll0 per annum, and that an additional allowance is made if assistance is required. Another witness stated that the minimum personal allowance in connexion with semi-official offices is £78, in addition to rent, and whlltever is required for the purpose. of employing a telegraph messenger and payment for lighting.

6 50. Representations were received from semi-official postmasters and postmistresses complaining that their present salaries are inadequate, and many asserted that they were qualified telegraphists, and were perform­ ing the work of staff officials without receiving the salaries and privileges of permanent officers. It Jwas stated that these offices are given to deceased officers' widows or relatives, who in very few cases could qualify for permanent appointment, even if eligible. Appointments are made to semi-official offices by the Deputy Postmasters-General on the recommendation of the Tender Board. Several official witnesses stated that semi-official offices render as efficient service as official offices, and are less expensive.

651. Your Commissioners discovered that a considerable number of post-offices in the Commonwealth now scheduled as official should, according to the revenue basis, be reduced to the status of semi-official offices. There are also a number of semi-official offices which should on similar grounds be scheduled as official offices. This is mostly apparent in the State of Victoria. It was stated in evidence that it was the intention of the Department to place some of the offices referred to on the official list.

117

6 52. Your Commissioners recommend that the principle which should guide the Department in scheduling semi-official offices should be the amount of business transacted, and not on the revenue receipts. Offices that are important as line repairing or repeating stations should not be classed as semi-official. The minimum salary of the person in charge of a semi­ official office should be £110 per annum, and a stipulation should be made

that messengers employed should not be under 15 years of age, and should be paid the full amount of salary granted by the Department for this position. Persons engaged in semi-official offices should be permitted to qualify for staff appointments on passing the prescribed examination for appointment

as telegraphists.

STORES BRANCH.

653. Your Commissioners, in addition to receiving evidence from the Controllers of Stores, inspected the Stores Branches, and the system of keeping stores accounts in all the States, except New South \¥ales, in whieh State the Chief Stores Branch had been destroyed by fire. ·

654. The stores were found to be well kept, except in Western Australia. The class of accommodation provided for the Stores Branches will be reported upon under the section of this Report dealing with Buildings and Accommoda­ tion.

655. Your Commissioners found that the Controllers of Stores, with one exception, were without previous commercial training, and that most of these officials were devoid of previous experience in the Stores Branch. Your

Principle of classification.

. '

117

RecollUllendation.

Condition of stores.

Commissioners recommend that in future appointees to positions as Controllers R9cumm ndation. · of Stores should be selected from those who possess some experience in dealing with stores and material.

System of Okeckinq.

656. Your Commissioners discovered that stock was not taken, nor a valuation wade of stores, when the States' Post and Telegraph Departments were transferred to the Commonwealth. This appears to your Commissioners a most serious omission.

657 .. The general practice of the Department is to take stock annually, and, in addition, the Auditor-General provides a t pecial audit inspector to attend to the auditing of stores. This audit officer visits each State, but is unable to inspect each Store Branch annually.

658. The Chief Clerk in the Audit Office stated that sufficient regard is not paid by the Department to the control of stores ; that there is not a proper check; and that there are numerous discrepancies due to carelessness and want of proper bookkeeping. On the other hand, it was claimed generally

by the departmental witnesses that the check on stores is effective. It was, however, admitted by the Accountant in Western Australia that, up to the time of his evidence, the check on stores issued had not been effective in any of the branches of that State. This is clearlv borne out bv the recent irregularities in connexion with the Electrical Engineer's Branch, in which an

officer was convicted of considerable misappropriations of stores.

659. The Electrical Engineers of the States are responsible for stores issued to their branches after they leave the Stores Branch. These stores are issued to and used by linemen and others, who keep material conversion ledgers. The Controller of Stores in Queensland acknowledged that he had

known construction material to go astray.

660. Your Commissioners consider that the present system of checking issues of stores is unreliable and misleading. The establishment of a Materials Purchase Account 1 as recommended in· paragraph would :'_necessit.at e

•

Valuation of ltores not made.

System of stock-taking.

Check on stores not effective.

Responsibility for stores.

Stores' check unreliable.

Annual stock-taking recommended.

Additional care required.

An extravagant Board.

Recommendation.

•

Decentralization of stores.

Uniformity desirable.

Commonwealth factory recommended.

118

the inauguration of a proper system of bookkeeping. The value of all stores issued would then be debited to the branches concerned. This account would, in the opinion of your Commissioners, provide a more effective check than has hitherto prevailed.

661. Your Commissioners recommend that stock be taken annually in the Stores Branches, and that certain lines be selected and balanced each month, as an additional check, as it is of paramount importance that effective checks be established to prevent leakage.

662. It was generally claimed that the check on materials issued to line foremen by the Electrical Engineer's Branch was efiective; but your Com­ missioners recommend the exercise of additional care in this direction.

Obsolete Stores.

6 6 3. Obsolete stores and materials are dealt with by a Departmental Board, and if condemned are sold by public auction. The Board consists of the Electrica1 Engineer, the Senior Inspector, and the Controller of Stores. Your Commissioners consider that to occupy the time of highly-salaried officials to condemn worn-out horses and old horseshoes is ridiculous and extravagant, and they recommend that such matters be relegated to the officer in charge of the stables.

664. In regard to obsolete material of a technical nature, your Com­ missioners recommend that the State Electrical Engineer be empowered to condemn such material. As to other obsolete material, your Commissioners recommend that the Controller of Stores be empowered to take the necessary . action. In all such cases the officials mentioned should advise the Deputy Postmaster-General prior to ultimate action being taken .

Stores .Distribution.

6 6 5. Your Commissioners are of the opinion that the issue of stores could be decentralized to some degree with advantage to the Department. Instead of supplying small country offices with stores from the Head Office arrangements should be made to hold sufficient stocks at the large provincial

offices to furnish the ordinary demands of smaller offices, thus saving time in supplying those offices.

Standardization of Material.

666. Standardization of specifications and sealed patterns of materials has been undertaken by the Chief Electrical Engineer, and proceeded with in the most urgent directions. It is alleged that want of staff has prevented the completion of this work. Your Commissioners consider that uniformity as regards material is desirable in the interests of economy and efficiency, and that early arrangenH•nt,<; should be made by the Department to have this work completed.

Uniforms.

6 6 7. Departmental uniforms forletter carriers and telegraph messengers are supplied by contractors, who are supposed to pay standard wages. Evidence was given that, in some instances, it would be better if the Depart­ ment purchased the material, and had the clothing made in State factories. Your Commissioners are of opinion that economies would be effected ifthe Commonwealth Government established its own factory for the manufacture of uniforms. Such a factory could undertake the manufacture· of mail bags, letter carriers' bags, and other classes of material as the expansion of the Department justified it.

119

Tenders.

668. Your Commissioners received complaints from certain commercial :firms that the time allowed by the Department between the inviting and closing of tenders for supplies of electrical material, such as switchboards and similar material of a· special nature, is too limited, and in many cases insufficient to permit contractors to send the and specifications

abroad to the manufacturers, and obtain their tenders by mail or even procure quotations by cable. ·

6 6 9. It was also complained that the time allowed for the first deliveries of supplies after tenders are accepted is too short, as it is necessary, when material has to be supplied to specification, to send full details, and sometimes forward samples, t·o the manufacturers before the manufacture of the material

ca.n be proceeded with.

6 7 0. Your Commissioners have already recommended the direct purchase of such materials by a buying agent at the centres of production, in preference to the tender system. Should this recommendation be not adopted, the establishment of a capital account, and a materials purchase account, would

allow the Department to proceed in a more systematic manner than in the past, and put these matters on a basis more satisfactory to contractors and itself. ·

Deposits on Tenders.

6 7 1. Your Commissioners received a complaint in connexion with t}le deposits, which have to be lodged with each tender by contractors for switchboards or other materials. It was suggested· that it would be fairer and more convenient to the parties concerned if the Department accepted

a bank deposit receipt for a :fixed sum to be held as a guarantee in connexion with tenders submitted. Your Commissioners see no objection to the adopting of such a practice, and consider it would effectively protect the Department while freeing it from the work of dealing with such deposits.

Preference to British Manufacturers. 6 7 2. In the acceptance of tenders the Department allows a preference to the extent of 10 per cent. on goods or material of British manufacture, as against foreign goods. Your Commissioners received complaints on this

matter from local representatives of foreign manufacturers, who asked for the removal of the Departmental preference on British goods, on the grounds that the Tariff now provided to what extent preference shall be given. This being a matter of Government policy, your Commissioners do no't deem it

within their scope to make any recommendation thereon.

CoRRESPONDENCE AND RECORDS BRANCHES.

6 7 3. Your Commissioners consider that much time and effort are wasted in the Correspondence Branch by over-elaboration in writing letters. Sim­ plicity of style, and the general use of the memorandum form of correspondence would, in their opinion, result in savings and in expedition. The use of open­

faced envelopes should be resorted to.

6 7 4. In th.e Record Branch the card index system· has been introduced to some extent. Your Commissioners are of the opinion that the of this system should be extended.

AssrsT ANTS.

6 7 5. In the present Classification provision is made for two classes of assistants, namely, clerical assistants in the 5th Class of the Clerical Division (£40 to £160, with long-service increments to £180), and postal assistants, who are classified in the General Division, with minimum salary of £60 and

max!mum of £138, with two long-service increments to £150, after 20 years' serv1ce.

119

Insuftlcient time allowed for tenders.

Insuftlcient time for first deliveries.

Purchase of materials.

Bank deposit receipt.

Removal of preference requested.

Simplification of correspondence.

Classification ol assistants.

120

Cle1·ical Assistants.

Duties of clerical assistants. 6 7 6. Clerical assistants are employed at suburban and country offices. rrheir work includes telegraphy and counter work, and it was stated in evidence

by the representative of the Postal Clerks and Clerical Assistants' Association of New South \Vales that clerical assistants sometimes occupy the place of postmasters, and that 90 per cent. of them are qualified telegraphists. This witness claimed that their position should be re-qlassified, three-fifths to remain in the 5th Class and two-fifths to be promoted to the 4th Class

(£185 to £285).

Commonwealth Public Service Commissioner's and Commonwealth

Public Se1·vice Inspector's statement.

6 7 7. The Commonwealth Public Service Commissioner and the Common­ wealth Public Service Inspector of New South Wales stated that the maximum pay for clerical assistants under State control was £125, and that under the Commonwealth these officers are well paid, much of their work being of a General Division nature ; further, that clerical assistants with sufficient telegraphic ability are in the direct line of promotion as telegraphists and postmasters.

Recommendation. 6 78. Your Commissioners are not in favour of a grading system for these officers, but consider that the designation of " clerical assistant " should be abolished, and that these officers should be entitled clerks. Those who are capable of performing clerical work of a more important nature would then be eligible for advancement on equal terms with other clerical officers, in addition to their eligibility for promotion to the position of telegraphist.

Postal Assistants.

6 7 9. Your Commissioners received evidence from Postal Assistants' Associations in New South Wales and Victoria, and reference was also made to this class of officer by other Associations' representatives.

Duties of postal 680. Postal assistants are employed in the General Post Office, mainly assistants. in the Accounts, Mail, Telegraph, Electrical Engineer's, and Telephone Branches, and in suburban and country offices. Their duties at the General Post Office include sorting of postal notes, checking telegrams, delivery of

"called for" letters, and sale of stamps. In the suburban and country offices they perform general postal work, including counter work, Savings Bank work, and telegraphy. It was claimed that· in some instances postal assistants relieve postmasters, telegraphists, and clerical assistants in suburban and country offices.

Claims of postal assistants.

Case against claims of postal assistants.

681. It was further alleged that the employment of postal assistants on telegraphic work prevented the appointment of telegraphists, and thus restricted telegraphists' opportunities for advancement.

682. The claims advanced by the postal assistants were that those doing telegraphic and clerical work should be so graded ; that the salaries now paid are inadequate; and that the maximum salary should be increased to £168 a year, as follows :-Two years at £ll0, one year at £114, one year at £12), two years at £126, and then to £J56 by yearly increments of £6, remaining on £156 until vacancies occur, then advancing to £162 and £168. Under the present Classification it takes a postal assistant nineteen years to advance from £110 to £150.

683. Evidence was given by the Commonwealth Public SeTvice Com­ missioner and inspectors to the e:ffect that, at offices where postal assistants perform telegraphic work, postal duties predominate, and that it would be out of all reason to appoint telegraphists in such cases; that under State control in New South Wales these officers were designated "supernumerary oper­ ators " or " supernumerary assistants," with maximum salaries of £120 and £96 respectively; that postal assistants' maximum salary under State control in Victoria was £108; that most of the work they perform in General Post

121

Offices is routine work, and not worth 5th Class pay; that the counter work performed is simple and only of a minor clerical nature at best; and that there is nothing to justify its classification as clerical work. These witnesses contended that the salaries now paid are fair remuneration for the work,

and stated that postal assistants can obtain promotion by passing the clerical examination.

684. Since the above evidence was given, the Commonwealth Public Service Commissioner has, to some extent, remodelled the classification of postal assistants. Provision has been made for positions of senior assistants at Grade XI. (£210) and Grade X. (£235) post offices, with maximum salary

of £156 attainable by yearly increments of £6. The maximum salary of postal assistants occupying certain positions in the General Post Offices, where the work is more clerical than General Division, has also been similarly increased under certain conditions. The classification of other postal assistants

whose work is purely General Division in character remains as at present. Your Commissioners consider that this re-classification has considerably improved the condition of many of these officials.

685. Your Commissioners cons1der that the designation "Postal Assis­ tant" is too general in character, as it embraces widely divergent classes of work. The work performed by a considerable number of these officers is unquestionablY General Division work, but it appears that in other cases,

especially at country and suburban offices, the work is similar to that required of clerical assistants. The spasmodic nature of the telegraphic work done at these offices does not justify the appointment of telegraphists, but your Commissioners recommend that the officers satisfactorily performing such work, in addition to other duties which more closely resemble clerical than

General Division work, should be transferred to clerical . positions, on passing the examination for appointment as telegraphists; a similar practice to be adopted in regard to postal assistants performing work of a semi-clerical character at the General Post Offices.

686. With' regard to postal assistants performing solely Genera Division duties, your Commissioners recommend that the maximum salary remain at £150, but be attainable as follows :-£60 to £no· by four annual increments, as at present; £110 for two years; thence to £150 by annual increments of £5.

FEMALE OFFICERS.

6 8 7. The number of female officers on the permanent staff of the Post and Telegraph Department on 1st January, 1910,· was as follows:-Postmistresses Telephone attendants

Monitors and supervisors Postal assistants Clerks and clerical assistants Typists

Telegraphists, New South Wales Victoria South Australia Tasmania

Telegraph messengers, Victoria South Australia · Western Australia

Relieving officers

180 768 59 126

42 "! v

5

52 2

1

60

1

2

I

4

5

---1,247

. \

Re-modelllng of classification.

Recommendations.

Salaries recom­ mended for postal assistants doing General Division work.

Number of female officers.

- -- --- ---

Limitations of female employment.

Female telegraphists' qualifications.

Restriction of female employment.

Training methods not satisfactory.

Establishment of well-equipped schools advocated.

Dearth of efficient telegraphists.

Recommendation.

Method of training.

122

688. Your Commissioners disapprove of the employment generally of female officers, except as telephonists, monitors, and typists. (See also paragraph 1072.) The admission of female employes to the Department is restricted to the position of telephonist and typist under General Division tests. Most of those now occupying other positions in the Service were admitted prior to Federation. ·

689. Evidence was given that female telegraphists are quite as capable as males for ordinary telegraphic work, but they are considered unsuitable for the heavierwork. Victoria is the only State in which female telegraphists are employed in the General Post Office. The representatives o·f the W omens' Post and Telegraph Association of Victoria complained that female tele­ are debarred from· promotion to the 4th Class. This was contra­

diCted by the Commonwealth Public Service Commissioner, who stated that female telegraphists are not debarred from promotion if possessing the necessary qualifications.

6 9 0. Your Commissioners agree with the contention that female tele­ graphists now in the Service should be eligible for promotion where they display capacity for performing the higher class of work, but are of the opinion that females should not in the future -be appointed as telegraphists. The same opinion applies to female clerks, clerical assistants, and postal assis­ tants. (See also paragraph 1072.)

TRAINING OF OFFICIALS.

Telegraphists.

6 91. Your Commissioners discovered that effective training for the work of the various branches of the Department has been seriously neglected. This matter has been referred to in paragraph 29 of this Report.

6 9 2. The leading officials of the Department admitted that it is neces­ sary to make provision for training, and that at the chief offices schools of telegraphy and telephony should be established. The present practice is to afford General Division officials in the principal offices facilities for learning telegraphy by delegating senior telegraphists as instructional officers. The courses are purely voluntary, and the officials who attend must do so in their own time. This system has not been successful.

6 93. Representatives of Associations were unanimous in supporting the establishment of well-equipped schools of instruction. The Australian Commonwealth Post and Telegraph Officers' Association's representative alleged that it attempts to educate young officers in telegraphy by instruction in its journals, and that it has also established a library for that purpose. It was stated by the Telegraph Manager, Sydney, that many officers who had learnt operating by self-instruction never became proficient through want of proper initial tuition.

694. It was alleged that, through the want of provision for the effective training of telegraphists, there is not only a dearth of efficient telegraphists, but those who qualify for appointment are not of a standard that will furnish a thoroughly efficient service.

695. Your Commissioners recomme'nd that the Department establish in each of the chief centres a well-equipped school of instruction in charge of highly. competent instructors, and that attendance at such classes by those officers who desire to become telegraphists be made compulsory.

Training of Telephonists.

696. In the year 1907 the Department instituted a system of training for all telephone appointees, preparatory to taking up switchboard duties. It is stated that the practice in South Australia is for telephonists to be trained on the main switchboard at slack periods of the day, and that this is not beneficial to the switchboard, the subscribers, or the probationers . .

123

6 9 7. The representati¥e of the Female Telephone Attendants' Associa­ tion, New South \Vales, stated that the present system of training telephonists in that State is satisfact orv, and that it requires three months' training to fit a telephonist for the shift; It was stated that it takes 18 to 24

months to make an efficient telephonist. The Telephone Manager, Sydney, stated that a school of instruction for t elephonists is provided, at which they are afforded a month's training. This school was established after your Commissioners had commenced their inquiries, although the Department had issued instructions for the establishment of such schools of training in 1907. It was stated that a school of instruction for t elephonists had been established

at the Central Exchange, Melbourne, in the year 1907.

Schools of instruction.

123

6 9 8. Your Commissioners recommend that the present facilities for the Recommendations. training of prospective telephonists be made uniform, and that the instructions issued by the Central Executive be enforced.

Training of Fitters.

699. The inadequate provision for the general training of fitters and Attempts at proper linemen is a serious defect. The Chief Electrical Engineer stated thRt training. instructions have b <3en issued for the proper training of fitters, but that the staff has not been provided. These instructions were issued in the year

1907, and provide for a course of twelve months' training in the Department, which it was Rlleged cannot be procured elsewhere.

7 00. Your Commissioners consider that the training of fitters and junior technical officers should be more systematic, and that a staff for training should be provided.

701. Your Commissioners recommend that, in conjunction with these Recommendations. schools, the Department should establish suitable libraries dealing with electrical engineering, as applied to telegraphic and telephonic services. They consider that the thorough training of employes in the technical branches is most

essential, if the Commonwealth is to secure aJ1 economical and efficient service.

702. To illu.strate the great value attached to training, your Com­ missioners consider it appropriate to mention the system of training in operation in other countries.

Training in Britain.

703. In Great Britain probationers in the Post and Telegraph Depart­ ment. are drafted in to a training school, and undergo a course of fre e instruc­ tion until they receive permanent appointments.