TELEGRAPH CABLES AND WIRELESS TELEGRAPHY (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-8, presented on the 22nd August, 1906.]

Appendix to the Journals of the House of Representatives, 1906 Session II, F-08a

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Session 11. 1906. NEW ZEALAND

TELEGRAPH CABLES AND WIRELESS TELEGRAPHY (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-8, presented on the 22nd August, 1906.]

Presented to both Houses of the General Assembly by Command of His Excellency.

INDEX.

EASTERN EXTENSION CABLE- No. Page. Australia - New Zealand • • • • .. .. .. .. .. .. 2-7 Agreement, proposed, between Commonwealth and company .. .. .. 1 Alleged erroneous information at Wellington that company's office at Melbourne olosed .. .. .. .. .. .. .. .. 2, 3, 4 Decrease in number of cablegrams for Great Britain via Eastern during interruption of company's New Zealand cable .. .. .. .. 4 Diversion of traffic during interruption of route .. .. .. .. 5 Proposed closing of company's office in Melbourne .. .. .. .. 1 Use of alternative route to Australia when either route interrupted .. .. 5 PACIFIC CABLEBuildings, Depot, Finance, &c. •• .. .. .. .. .. .. 8-io Miscellaneous • • • • • • • • .. .. .. .. .. li, 12 Board's wall map and pamphlet .. .. .. .. .. .. 17,21-23 Coloured labour on oable-ship .. .. .. .. .. ~ 7,8 Diversion of traffic .. .. .. .. .. .. .. 19, 20 Expenditure by Department on behalf of Board, 1905-6 .. .. .. 14, 15 Increased traffic : Additional officer at Doubtless Bay .. .. .. 16 Land at Doubtless Bay .. .. .. .. .. .. .. 6, 9-13 Marble Slab, Doubtless Bay: Trans-Pacific Longitudes .. .. .. 24 Opening of Pacific Cable Board's Sydney office .. .. .. ... 18 Reserve at Doubtless Bay, Disposing of (see " Land "). Routes for international traffio when either of New Zealand- Australian cable routes interrupted .. .. .. .. .. .. 19 Wharf at Auokland for cable-steamer .. .. .. .. .. 7, 8 WIRELESS TELEGRAPHY •• 13 International Telegraph Construction Company's system ~ .. ~ 25

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EASTERN EXTENSION COMPANY'S CABLES.

No. 1. The Right Hon. the Secretary of State for the Colonies, to His Excellency the Governor. My Lord, — Downing Street, 10th April, 1906. W 7 ith reference to my despatch No. 85, of the 22nd December last, I have the honour to transmit to you, to be laid before your Ministers, the accompanying copy of a letter from the Eastern Extension Australasia and China Telegraph Company (Limited) of the 24th ultimo, forwarding two letters recently addressed by the company to the Australian Government in regard to the conditional ratification by the Commonwealth Parliament of the agreement of the Bth June, 1903, between the Commonwealth Government and the company. A copy is also enclosed of a letter of the 3rd instant on the subject from the Pacific Cable Board. I have, &c, Governor the Right Hon. Lord Plunket, X.C.V.0., &c. Elgin.

Enclosure 1 in No. 1. The General Manager, Eastern Extension Company, London, to the Under-Secretary of State, Colonial Office. The Eastern Extension Australasia and China Telegraph Company (Limited), S IEj — Electra House, Moorgate, London, E.C., 24th March, 1906. I am instructed by my board of directors to transmit to you, for the information of His Majesty's Government, the enclosed copies of two letters which my company recently addressed to the Australian Federal Government in reference to the Commonwealth's telegraphic communications. I have, &c, F. E. Hesse, . The Under-Secretary of State, Colonial Office, S.W. General Manager.

Sub-enclosure 1 to Enclosure 1 in No. 1. The General Manager, Eastern Extension Company, London, to the Secretary, Post-master-General's Department, Melbourne. The Eastern Extension Australasia and China Telegraph Company (Limited), S IXj — Eleetra House, Finsbury Pavement, London, E.C., 23rd February, 1906. I have the honour to inform you that the letter which you addressed to the company's manager in Australia on the 19th December last in reference to the conditional ratification by the Federal Parliament of the agreement made between the Commonwealth Government and the company, dated the Bth June, 1903, was duly forwarded by Mr. Warren to London, and that its contents, together with the official report of the parliamentary proceedings in connection therewith, have received my board's very careful consideration. In reply, I am directed to point out that in requiring the company to enter into an agreement embodying the Senate's amendment it is proposed to seriously alter the existing position. To the first part of the amendment —viz., " This agreement shall be in substitution for the two agreements and the provisional arrangement mentioned in the fourth recital to this agreement " — my board could not have any possible objection, seeing that it merely makes clear the intention of the contracting parties as expressed in the sixth recital of the Federal agreement. The latter part of the amendment however—viz., " This agreement shall expire on the 31st day of December, 1915 " —would substantially alter the agreement by determining it at the end of 1915; instead of it being left to continue after 1915 unless then terminated by two years' notice. The original document implied a continuing agreement unless at the expiration of ten years it were determined by formal notice, whereas the amended agreement would be an avowedly temporary provision for a limited period. In fact, it puts an end in definite terms to the company's position in all the capitals of Australia in 1915, and decides the question against the company now instead of waiting, as was intended, for the results of the experience of ten years' direct dealing with the public. These alterations completely change the situation contemplated by the parties to the agreement when it was drafted in 1903. In considering this difference in the situation, it is to be remembered that when negotiating the agreement the company stipulated that it should continue for at least twenty years, and at one time the negotiations were nearly broken off on this point. Eventually, however, the company

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agreed to the Government having the power to terminate the agreement by two years' notice after 1913 on the representation that the Government could not legally enter into an agreement for any longer period, and that the power of determination was not likely to be exercised so long as the company continued to give satisfaction to the telegraphing public. The amendment is not only contrary both to the letter and spirit of the Federal agreement but is also in marked contrast with the assurances given to the company in 1899 before the Pacific cable was laid. During the debates in the Senate On the Federal agreement adverse comments were made with regard to the company and the Government of New South Wales for entering into an agreement similar to that previously made with the Governments of South Australia, Western Australia, and Tasmania. It should, however, be borne in mind that the agreements in question were exceedingly advantageous to all the contracting States, and that the terms were not only carefully considered by all the Postmasters-General concerned before they were adopted, but involved the company and the Eastern Company in spending, roundly, £1,700,000 in providing additional cables to Australia. At the same time the Eastern Company spent a further large sum of money in strengthening their connections with these new cables. It should always be remembered that the Government of New South Wales, before entering into the agreement, were not only convinced of the policy, but specially consulted Mr. Secretary Chamberlain, and, before signing, obtained his approval of the arrangement. After having shown its desire to meet the wishes of the Commonwealth Government by entering into the Federal agreement so as to extend to Victoria and Queensland the advantages enjoyed by the other Australian States, the company naturally expected to receive equitable treatment from the Australian and British Governments, but thus far my Board regret that this expectation has not been realised. Every effort has been made to divert traffic from the company's cables, and the policy of so doing is avowed and upheld. For instance, ever since the opening of the Pacific cable all unrouted traffic between Australia and Great Britain handed in at Government offices in both countries has been given to the Pacific cable for transmission, although the company with its four cables landed in Australia, as against the single line of the Pacific cable, has greater facilities for dealing with the traffic .than its competitors, and notwithstanding it being the practice of the British Telegraph Department in regard to unrouted traffic to other countries to fairly divide it, in the interests of the telegraphic public, between its own cables and the cables of its competitors. The company has vainly protested against the present action of the Australian and Home Governments towards a great enterprise like ours with respect to unrouted traffic ; but its grievances remain unredressed. Another instance is the refusal by the Government offices in the Australian capitals where the company has a public office of its own to accept telegrams marked "via Eastern," in accordance with the system prevailing in this country, and with the regulations of the International Telegraph Convention. The company nearly two years ago obtained and communicated to your Department the opinion of an eminent Australian counsel that the Government by refusing to accept such messages were acting illegally, but nevertheless the practice continues. The above illustrations, combined with other circumstances, make it still more plain to my board than previously that under present conditions the company should, for its own protection, and in the interest of the public, be in direct communication with its Australian customers. In connection with these subjects, it should be borne in mind that it is the company's cables that provide Australia with direct telegraphic communication with South Africa, India, China, Japan, and other parts of the Far East, and also provide against the consequence of the single Pacific cable becoming interrupted. On the grounds above indicated, I am directed to express my board's sincere regret that they do not feel justified in accepting the Senate's amendment, and must therefore very respectfully decline to execute the proposed new agreement. lam also to state that my Board are advised that, as the agreement of the Bth June, 1903, has not been affirmed in manner required by article 24 thereof, it has now ceased to exist. In conclusion, I am to assure you that, whilst unable in justice to their shareholders to accept the Senate's amendment, my Board wish it to be clearly understood— (1.) That they are desirous of working with your Department in the most amicable manner. (2.) That they are firmly of opinion that an arrangement could be made which, while preserving the independence and autonomy of the Pacific cable route, would produce marked financial and other advantages to all the Governments interested, in that enterprise. I have, &c, F. E. Hesse, General Manager. R. T. Scott, Esq., Secretary, Postmaster-General's Department, Melbourne.

Sub-enclosure 2 to Enclosure 1 in No. 1. The Chairman, Eastern Extension Company, London, to the Right Hon. the Prime Minister, Commonwealth of Australia, Melbourne. The Eastern Extension Australasia and China Telegraph Company (Limited), Sib, — Electra House, Finsbury Pavement, London, E.G., 23rd February. 1906. I have the honour to draw your attention to the letter which the Eastern Extension Telegraph Company is forwarding by this mail to the Postmaster-General's Department expressing the Company's inability, for the reasons therein stated, to accept the Senate's amendment to the agreement made between the Commonwealth Government and the company on the Bth June, 1903.

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I can assure you that before arriving at this decision my board gave the matter the most careful consideration, and sincerely regret that no other course appeared open to them in all the circumstances of the case ; they trust, nevertheless, that their inability to concur in the views of your Government will not in any way impair the friendly relations which have so long subsisted between the Australian Governments and the company. By the terms of the Postmaster-General's letter of the 12th March, 1903, I recognise that the Government are now at liberty to terminate the tentative arrangement by which the company has direct dealings with the public in Melbourne and the use of a special wire on the Government line between that city and Adelaide, and I am fully aware that your Government have been frequently urged to withdraw these facilities, and to assist the Pacific Cable Board in competing with the company more actively than heretofore.- I would, however, venture to suggest that, apart from any loss which the closing of the company's public offices in Melbourne and the withdrawal of the special wire might entail upon the company, a graver loss would be inflicted upon the commercial community of Melbourne; and, putting aside for the moment the interest of the company, may I venture to consider this matter from a purely Australian point of view? One justification for my doing so is that as pioneers the company linked up Australia and the outer world by its cables at great risk to the capital involved, and that ever since, as owners of a great British-Australian enterprise, the company has been, and is, profoundly interested in Australia's prosperity and commercial development. I would ask, then, can it be an advantage for Australian commerce that the Melbourne offices should be closed ? These offices and the special wire were provided with the concurrence of the Government in order to strengthen and improve the telegraphic service between Melbourne and the British Empire, and to put Melbourne in the same position as Sydney and the other capitals by insuring that any errors and delays due to the handling of messages by different Administrations should be as much as possible eliminated. It is universally admitted as a result that there has been marked improvement in the service, and that the average speed of transmission between Melbourne and all parts of the world has been greatly accelerated. . If, then, these desired objects and advantages have been attained, what is the ground on which the requisite facilities are to be withdrawn ? Is it in order that by some hoped-for deterioration of the company's service the telegraphing public which has now two routes at. its disposal should be more or less compelled in future to use only one—viz., the Pacific—and the present competition in efficiency be enfeebled or destroyed ? If this be the aim, I would with all respect point out that in itself such a result cannot be for the advantage of Melbourne. Possibly the Commonwealth Government may reply, " However this may be, we are financially interested in the Pacific cable. It is losing us £30,000 a year. For the sake of our finance we are bound to cripple the company as much as possible and close its Melbourne offices in order to endeavour to get more business for the Pacific cable, and so reduce our loss." Dealing with that position, and again merely from the Australian standpoint, is it not possible to arrive at a reasonable solution ? The object of Australia in engaging in the Pacific cable enterprise was evidently twofold. First, Australia at that date was served by only one cable system. She wanted another, and two separate systems now exist. Secondly, Australia considered that the rates charged were too high. She now enjoys lower rates—rates, indeed, so low that both systems are suffering severely. So far, then, Australia appears to have obtained all that she really wanted. It can scarcely be within her real aims and needs to close the Melbourne offices, and, as not obscurely hinted during the debates in the Senate, perhaps at a later date to exclude us from the other great cities altogether. By so doing Australia would, as I have stated, defeat her primary object of obtaining alternative services, and lose the advantages and guarantees afforded by the company's extensive cable system. Consequently I venture to say that the question which has assumed such large proportions for Australia is one properly and strictly limited to the problem of how to reduce her loss of £30,000 a year from the Pacific cable. Two methods have been suggested for attaining this object: first, that of withdrawing the special wire and closing the Melbourne offices, and entering into more active competition than ever with the company. But, as already stated, this would be clearly detrimental to the vast commercial interests of Victoria, and the further expenditure involved in the opening by the Pacific Cable Board of their own public offices and in canvassing on a larger scale might, after all, while injuring the company, not prove remunerative to the Pacific Cable Board. Another course still remains, but all that I can now venture to say about it is that it should not be beyond the resourcefulness of the Federal Government and the company in consultation to devise some scheme honourable and satisfactory to all parties which would diminish, and perhaps in due time extinguish, the financial loss now accruing to Australia from the Pacific cable, and at the same time guarantee the Pacific cable enterprise against the results of possible interruption. In this connection may I be permitted to refer to the statement reported to have been made by the Minister of Defence in the Senate on the 6th December last, in regard to the pooling arrangement which has been proposed between the Pacific Cable Board and the company, that " The Eastern Extension Telegraph Company said they would not entertain the proposal except for a period of thirty years or more, and then only on the distinct understanding that at the end of the term all the State agreements into which they had entered—the agreements made with South Australia, Western Australia, Tasmania, and New South Wales —should be revived." I would respectfully point out that if the Minister be correctly reported he must have been misinformed as to the negotiations, seeing that what the company required was that the arrangement should, in the absence of other conditions, continue for the reasonable period of thirty years ;

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but when thirty years was objected to and only ten years were offered, the company stipulated that in. that case the agreements with South Australia, Western Australia, Tasmania, and New South Wales should be revived at the end of the ten years, unless the pooling arrangement were renewed. In conclusion I would venture to suggest that a conference should take place between representatives of the Commonwealth and the company with a view to endeavouring to arrive at a satisfactory solution of this complex and difficult question. I have, &c, J. Wolfe Barry, Chairman. The Right Hon. Alfred Deakin, Prime Minister and Minister for External Affairs, Commonwealth of Australia.

Enclosure 2 in No. 1. The Secretary, Pacific Cable Board, London, to the Under-Secretary of State, Colonial Office. Sir, — Queen Anne's Chambers, S.W., 3rd April, 1906. I am directed by the Pacific Cable Board to state, for the information of the Secretary of State for the Colonies, that, having regard to Reuters telegram of the 28th ultimo, to the effect that the Eastern Extension Company had informed the Commonwealth authorities it did not propose to accept the cable agreement with that Government as amended by the Senate, the Board, at a special meeting held yesterday, resolved to despatch forthwith the following telegram to the Postmaster-General, Melbourne: " Pacific Cable Board at special meeting to-day understood that Eastern has refused to accept Commonwealth agreement ; wishes to know whether Eastern is now prevented from accepting telegrams at their Melbourne offices, and whether all privileges State of Victoria are withdrawn from company. If not, on what date will both these things be done? See Board's letter, November, 1905, Q. 2/234." I am, &c, Hugh Latham, Secretary. The Under-Secretary of State for the Colonies, Colonial Office, S.W.

No. 2. The Manager in Australasia, Eastern Extension Company, Melbourne, to the Secretary, General Post Office, Wellington. The Eastern Extension Australasia and China Telegraph Company (Limited), Sir,— Melbourne, 18th May, 1906. I have the honour to bring under your notice the statement made in the attached letter received from the General Manager of the Royal Insurance Company, that the agents of his company in Wellington were informed by the receiving officer of the Wellington Telegraph-office that the Melbourne office of the Eastern Extension Company had been closed, and that future messages would have to be sent " Via Pacific." I therefore beg to ask if your telegraph-offices generally have been instructed to so inform senders of cablegrams, or if the Wellington officer acted on his own responsibility and without authority. In either case I must respectfully ask that any such instructions, if issued, may at once be cancelled, or such impression dispelled, as the action complained of is most unfair and detrimental to my company, since it has never had the privilege of direct dealings with the public in any of the Australian States for the receipt and delivery of New Zealand messages. Moreover, the officer himself must know perfectly well that the Eastern Extension Company has no offices in' New Zealand, yet messages " Via Eastern " are delivered throughout the State; also that under the International Telegraph Convention Regulation XLI senders have the right to prescribe the route by which their messages are to go. I have, &c, W. Warren, Manager in Australasia. The Secretary, Post and Telegraph Department, Wellington.

Enclosure in No. 2. The Manager, Royal Insurance Company, Melbourne, to the Manager, Eastern Extension Company, Melbourne. Royal Insurance Cornpanv, 414 Collins Street, Melbourne, Sir,— 17th May, 1906. We received from our Wellington agents, Messrs. W. M. Bannatyne and Co. (Limited), on the 30th April, a cablegram which, contrary to our instructions, was despatched " Via Pacific," and on requesting an explanation from them they write me as follows : "In reply to your inquiry, our cablegram was headed ' Via Eastern' but on same reaching the Telegraphoffice we were informed that the Melbourne office of the Eastern Extension Company had been closed, and that future messages would have to be sent ' Via Pacific' We may mention that cables have appeared in our papers from time to time, notifying the closing of the Melbourne • office of the ' Eastern.' "

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This denotes an extraordinary state of things, and if the statement be correct it appears from our agents' letter very much as if the money for that cablegram had been obtained from us under false pretences and by a deliberately untrue statement ; but before taking any further action in the matter I think it right to bring it under your notice in case you are able to afford me, with your usual courtesy, any information which will tend to throw light upon such extraordinary proceedings. I am, &c, Chas. Salter, Manager. The Manager, the Eastern Extension Australasia and China Telegraph Company, Melbourne.

No. 3. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Melbourne. Sir, — General Post Office, Wellington, 2nd June, 1906. I have the honour to acknowledge the receipt of your letter of the 18th ultimo enclosing copy of letter from the General Manager, Royal Insurance Company, Melbourne, complaining that Messrs. Bannatyne and Co., agents for his company in Wellington, had been informed when presenting a cable message on the 30th April at the local Telegraph-office that your Melbourne office was closed, and that future cable messages would have to be sent via Pacific. In reply, I have to inform you that full inquiries have been made, with the result that it is found that there is not the slightest foundation for the statement of the alleged misrepresentation by this Department's officer. The message in question was handed over the telegraph counter here, marked " Via Eastern," and the counter-clerk pointed out to the person presenting it that the Pacific route was the only one then open to Australia, owing to the interruption to the Eastern Extension Company's cable, and the alteration of the route was accordingly authorised. No mention of your Melbourne office was made by the counter-clerk, who is a junior officer, and was unaware that your company had an office in any of the Australian States. Mr. Dix, of Messrs. W. M. Bannatyne and Co., was also called upon, and he frankly admitted that the statement of the counter-clerk was probably true. He also stated that the person who presented the message had been dismissed from the firm's employ as unreliable. Mr. Dix also stated that the information about the closing of your company's Melbourne office was obtained from Press reports from Australia, and further admitted that as he was unaware of the interruption to the Wakapuaka -La Perouse cable he could only ascribe the amending in the telegram of the cableroute to this closing. It should be explained that the interruption to the cable was duly notified to all newspapers on receipt of advice from the International Office at Berne. Convention Regulation XLI has always been strictly observed in New Zealand, and paragraph 3 of that regulation was acted on in this instance. I have, &c, Thomas Rose, Acting-Secretary. The Manager in Australasia, Eastern Extension Australasia and China Telegraph Company (Limited), Melbourne.

No. 4. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Melbourne. Sir,— General Post Office, Wellington, 29th June, 1906. I have the honour to acknowledge the receipt of your letter of the 15th instant [not printed], asking, with reference to the complaint forwarded with your letter of the 18th ultimo, why so few messages marked " Via Eastern " for Great Britain were sent by that route during the late interruption of your company's New Zealand cables, whereas those for Europe were sent " Via Eastern." In reply, I have to inform you that this Department is not in a position to explain the reason for the reduction in the number of messages forwarded to Great Britain by way of your company's cables during the interruption referred to. While it has not been possible to re-examine all the cable-work sent during the period of the interruption, a sufficient examination has been made to show that the telegrams presented were forwarded as routed or as instructed by the senders. I would again repeat that no departure from Convention Regulation XLI was permitted. I may add that the manager of the Royal Insurance Company, Melbourne, has forwarded an apology for the unfounded complaint in his letter to you on the 17th ultimo. I am, &c, Thomas Rose, Acting-Secretary. The Manager in Australasia, Eastern Extension Australasia and China Telegraph Company (Limited), Melbourne.

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No. 5. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Eastern Extension Company, Wakapuaka. Sir,— General Post Office, Wellington, 23rd July, 1906. I have the honour to acknowledge the receipt of your letter of the 11th instant [not printed] stating that several cable messages were handed to your office the previous day bearing the following instructions : " Diverted via Extension and Southport.—D.l.L., N.Z.," which you concluded were inserted by this Department's office at Wakapauka. In reply, I have to inform you that in no instance was the route of outward cable messages on the occasion in question inserted by this" Department's office at Wakapuaka, but the instructions of all such cable messages from New Zealand were in accordance with the wishes of the senders. That being so, Regulation XLI of the International Telegraph Convention appears to meet the case, and your company would therefore appear to have no cause for complaint. I would point out that the privilege of making use of the alternative route to Australia when the other was interrupted was enjoyed by cable-users during the recent interruption to the Waka-puaka-La Perouse cables. Messages for Great Britain and other places beyond Australia routed via Eastern by the senders were sent forward via Southport and Eastern. I have, &c, Thomas Rose, Acting-Secretary. The Superintendent, Eastern Extension Australasia and China Telegraph Company (Limited), Wakapuaka, Nelson.

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PACIFIC CABLE.

BUILDINGS, DEPOT, FINANCE, ETC.

No. 6. The General Manager, Pacific Cable Board (at Wellington), to the Right Hon. the Prime Minister. Sir,— Wellington, New Zealand, 20th April, 1906. In compliance with your verbal request, I have the honour to bring to your notice that when the site of the Pacific cable-station at Doubtless Bay was acquired by the Board by purchase from a Mr. Harris, the New Zealand Government allotted to the Board, as a part of the site for the station, an adjoining piece of land of about 16 acres as a permanent reserve for the cable-station. This piece of land is rough bush, of no value for agricultural purposes, and the Pacific Cable Board was charged in 1901 a sum of £32, or, roughly, £2 an acre, as the purchase value of the land. The Board has cleared and fenced the land, and the Public Works Department has recently erected a cottage for the Board's staff partly on this land. As other buildings may hereafter have to be erected on this land, it is desirable that the Board's title should be defined; and, as it appears that under ordinary conditions Government reserve land cannot be sold outright, I beg to apply that the Board's exceptional position as trustees for the Governments owning the Pacific cable may be recognised by the confirmation of the sale of this piece of land for £32, as above stated. I have, &c, C. H. Reynolds, General Manager for the Pacific Cable Board. The Right Hon. R. J. Seddon, P. 0., &c, Premier of New Zealand.

No. 7. The Under-Secretary, Public Works Department, Wellington, to the Acting-Secretary, General Post Office, Wellington. (Memorandum.) Public Works Department, Wellington, 24th April, 1906. Wharf for Cable-steamer at Auckland. In your letter to the Secretary of the Pacific Cable Board of 7th February, 1905, copy of which was supplied to this Department, you stated that the above work was to stand over pending receipt of an intimation of the Board's intention in respect of the employment of coloured labour on the cable-steamer. The General Manager to the Board has made certain proposals (with which Mr. Logan is familiar) in reference to the wharf, but before acting thereon this Department would be glad to know if anything further has yet transpired in reference to the coloured-labour question. Kindly let me know the present position of the matter. H. J. H. Blow, Under-Secretary. The Secretary, Post and Telegraph Department, Wellington.

No. 8. The Acting-Secretary, General Post Office, Wellington, to the Under-Secretary, Public Works Department, Wellington. (Memorandum.) General Post Office, Wellington, 16th May, 1906. Wharf for Cable-steamer at Auckland. The present position in respect of the employment of coloured labour has not been officially communicated to the Department. It is understood that Mr. Reynolds informed the Superintendent of Electric Lines that all Chinese had been discharged except two or three stewards, and that the stewards would be discharged also as soon as their places could be filled. This information is also understood to have been given to the Right Hon. the Prime Minister. Thomas Rose, Acting-Secretary. The Under-Secretary, Public Works Department, Wellington.

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No, 9. The Acting-Secretary, General Post Office, Wellington, to the Under-Secretary, Lands and Survey Department. (Memorandum.) General Post Office, Wellington, 22nd May, 1906. 1 forward herewith copy of a request from the General Manager of the Pacific Cabrfe Board, who was recently in Wellington, that Block IV, Mangonui Survey District, consisting of 15 acres 2 roods 16 perches of Crown land, for which the Board has been charged £32, might be vested in the Board. A copy of subsequent correspondence, including Solicitor-General's opinion as to the course to be pursued to meet the desire of the Pacific Cable Board, is also attached. I shall be glad if you will arrange for the preparation of a Bill as decided upon by Cabinet. Particulars of the block of land will be found in the New Zealand Gazette of the 13th February, 1902, No. 12, page 339. Thomas Rose, Acting-Secretary. The Under-Secretary, Department of Lands and Survey, Wellington.

No. 10. The Acting-Secretary, General Post Office, Wellington, to the Under - Secretary, Public Works Department, Wellington. (Memorandum.) General Post Office, Wellington, 28th May, 1906. Pacific Cable Station, Doubtless Bay. In reference to my memorandum of the 26th March last [No. 27, F.-8, 1906], replying to yours of the 7th March, on the subject of the land at Doubtless Bay reserved by Government for the purposes of a cable-station, but presumed to have been subsequently purchased by the payment of £32 by the Pacific Cable Board, I have now to inform you that the amount of £32 is not being refunded meantime. It is proposed to sell the land to the Board, and, as there is no legislative power to do so at present, that power will be sought at the coming session of Parliament. Thomas Rose, Acting-Secretary. The Under-Secretary, Public Works Department, Wellington.

No. 11. The Right Hon. the Prime Minister to the General Manager, Pacific Cable Board (at Sydney). Sir,— Prime Minister's Office, Wellington, 31st May, 1906. In reply to your letter of the 20th April last about an area of 15 acres 2 roods 16 perches at Doubtless Bay reserved by Government for the purpose of a cable-station, I have now the honour to inform you that it is ascertained that the Government has no power to alienate the land permanently without further legislation. As the period for which the land could be leased would be too short for your purposes, I propose seeking the necessary legislative authority at the coming session of Parliament. Meantime the amount of £32 which it was proposed to retransfer to you as wrongly paid for the fee-simple of the land will be retained in anticipation of being treated as the purchase-money or part purchase-money of the land in question. I have, &c, Albert Pitt, C. H. Reynolds, Esq., General Manager, Pacific Cable Board, For the Premier, care of the Deputy Postmaster-General, Sydney.

No. 12. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubless Bay. (Memorandum.) General Post Office, Wellington, Ist June, 1906. In reference to recent correspondence, I have now to inform you that Mr. Reynolds has been written to from this office, and informed that, as it is impossible to alienate the area of 15 acres 2 roods 16 perches permanently without further legislation, legislative authority is to be sought for the purpose at the coming session of Parliament. Meantime the amount of £32 paid for the land is being retained as the purchase-money or part of the purchase-money ultimately. Thomas Rose, Acting-Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

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No. 13. The Under-Secretary, Lands and Survey Department, Wellington, to the Secretary, General Post Office, Wellington. (Memorandum.) Department of Lands and Survey, Wellington, sth June, 1906. Pacific Cable Station, Doubtless Bay. In reply to your memo, of the 22nd ultimo, I have to inform you that a clause will be drafted for the Reserves Disposal and Public Bodies Empowering Bill providing for the necessary change of purpose of the cable-station site; but before this is done I should be obliged if you would please enable me to peruse the previous papers relating to the subject. If you will let me have them at earliest convenience I will have the clause drafted and your file returned without delay, as the Bill is now in the Printer's hands. F. W. Flanagan, The Secretary, General Post Office, Wellington. For Under-Secretary.

No. 14. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. Sir,-— General Post Office, Wellington, 7th June, 1906. I have the honour to forward herewith an account for £116 6s. 9d., being the amount expended by this Department on behalf of your Board during the year ended the 31st March, 1906. I have, &c, Thomas Rose, Acting-Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

No. 15. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. Sir, — General Post Office, Wellington, 9th August, 1906. I have the honour to acknowledge the receipt of your -letter of the 31st ultimo [not printed] forwarding a cheque for £116 6s. 9d., in full payment of this Department's account for canvassing, " Pacific " telegram pads, and miscellaneous items, for the year to the 31st March, 1906. I attach formal receipt for the amount, and return my letter of the 7th June, with enclosures. I have, &c, D. Robertson, The Superintendent, Pacific Cable Station, Doubtless Bay. For Secretary.

No. 16. The Secretary, General Post Office, Wellington, to the General Manager, Pacific Cable Board (at Wellington). Sir, — General Post Office, Wellington, 9th August, 1906. Referring to previous correspondence, and to your interview with Sir Joseph Ward and myself, I have the honour to inform you that the Minister has now approved the payment by this Department of the salary of a fourth officer at the Doubtless Bay Station. lam indeed pleased to hear that the increase of traffic requires the services of a fourth Morse operator. I have ascertained that Cadet Moore is still willing to be transferred to the service of the Pacific Cable Board, and his services will be placed at your disposal as from the Ist proximo. I have, &c, C. H. Reynolds, Esq., CLE., General Manager, Pacific W. Gray, Secretary. Cable Board, Wellington.

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MISCELLANEOUS.

No. 17. The Secretary, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. The Pacific Cable Board, Queen Anne's Chambers, S.W., Sir,— 26th March, 1906. The Pacific Cable Board has directed Messrs. Waterlow and Sons, of London, to send you 1,000 copies of a wall-map illustrating the Pacific cable route. It is hoped that this map will be of interest to the public, and the Board will be much obliged if you will have copies distributed to the Ministers and members of Parliament, and the balance exhibited in the principal post-offices in New Zealand, where they will be likely to advertise the cable and attract traffic. Any expenses of distribution will be met by the Cable Board, if the New Zealand Government should think it necessary in advertising a cable in which that Government is largely interested. I am, &c, The Postmaster-General, Wellington. Hugh Latham, Secretary.

No. 18. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 18th June, 1906. Board's Sydney office opens to-day 11 a.m.

No. 19. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 21st June, 1906. General Manager wires : " Did I not definitely arrange with New Zealand Government that in the event interruption Sydney-Brisbane or Doubtless Bay - Auckland, international traffic via Pacific was to be booked at usual rates, Board paying Extension cable charges ? "

No. 20. The Acting - Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram.) " Wellington, 22nd June, 1906. Diverted traffic : See my letter to you of 23rd November, 1904 [No. 36, F.-8, 1905], stating that this Department had already agreed to come into line, and recommending that your General Manager should communicate with Federal Post Office in the hope that some reasonable basis might be found for an agreement respecting diverted traffic. A letter dated 20th January, 1905, from General Manager to Secretary, Postmaster-General's Department, Melbourne, copy of which will be found in telegraph cables papers for 1905, page 19, states that Board would bear whole additional cost of interruptions if Australian transit reduced to one penny per word. On 20th January, 1905, General Manager informed this office that settlement of the case was referred by Postmaster-General of Australia to the Pacific Cable Conference.

No. 21. The General Manager, Pacific Cable Board, at Sydney, to the Secretary, General Post Office, Wellington. The Pacific Cable Board, Devon Chambers, 40 Hunter Street, Sydney, Sir,— 25th June, 1906. In continuation of my letter [not printed : see No. 17] advising you that 1,000 wallmaps had been despatched to you from London for distribution in New Zealand, I now write to advise you of the despatch from Sydney to your address of 1,000 tariff pamphlets for the same purpose.

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Please have twenty-five wall-maps and twenty-five pamphlets sent to the Superintendent of the Board's office at Doubtless Bay for the use of his station, &c. As the maps and pamphlets are handsome and costly, I shall be glad if you will give instructions to the canvassers and others who may distribute them, to give them away with discretion and not too lavishly. All important public bodies and customers should, of course, be supplied, as well as Ministers, &c. My Board hope that the wall-maps may be prominently exhibited in all the leading post-offices in New Zealand. As noted on the tariff pamphlets, you will observe that the rates therein given are liable to change at any time. The authoritative rates will, of course, be those contained in the Postal Guide, to which the rates in these pamphlets will -be subject. Your Government will be advised as hitherto from London of all changes in rates, or of new rates. Meanwhile the pamphlet is correct for the present, and may form the basis for the rates to be published in your next Guide, subject to any corrections that may meanwhile be received by you. I have, &c, C. H. Reynolds, General Manager, Pacific Cable Board. The Secretary, General Post Office, Wellington.

No. 22. The Acting-Secretary, General Post Office, Wellington, to the General Manager, Pacific Cable Board (at Melbourne). Sir,— General Post Office, Wellington, 21st July, 1906. I have the honour to acknowledge the receipt of your letters of the 23rd January last [not printed] and of the 25th ultimo, stating that 1,000 wall-maps and 1,000 tariff pamphlets issued by your Board had been forwarded to this office for distribution. In reply, I have to inform you that the maps and pamphlets have been received and arrangements made for their distribution to principal cable-users throughout the colony. As desired, Ministers, members of Parliament, customers of the Pacific cable, and important public bodies will be supplied with copies, and the required number will be sent to your Board's Superintendent at Doubtless Bay. Officers concerned have been instructed that the maps and pamphlets are to be distributed with discretion and not too lavishly. A copy of the wall-map will be exhibited prominently in each of the principal offices. I have, &c, Thomas Rose, Acting-Secretary. C. H. Reynolds, Esq., General Manager, Pacific Cable Board, Melbourne.

No. 23. The Acting-Secretary, General Post Office, Wellington, to the Secretary, Pacific Cable Board, London. Sir,— General Post Office, Wellington, 21st July, 1906. I have the honour, by direction, to acknowledge the receipt of your letters of the 26th March and 9th May last, stating that 1,000 copies of a wall-map illustrating the Pacific cable route had been forwarded to this office for distribution. In reply, I. am to inform you that 1,000 maps, together with a similar number of tariff pamphlets, about which the General Manager of your Board wrote this office, have been received, and arrangements made for their distribution to principal users of the cable throughout the colony. As desired, Ministers, members of Parliament, customers of the Pacific cable, and important public bodies will be supplied with copies, and twenty-five copies will be sent to your Board's Superintendent at Doubtless Bay. Officers concerned have been instructed that the maps and pamphlets are to be distributed with discretion and not too lavishly. A copy of the wail-map will be exhibited prominently in each of the principal offices. I have, &c, Thomas Rose, Acting-Secretary. The Secretary, Pacific Cable Board, Queen Anne's Chambers, London, S.W. [Letter in similar terms on same date to Superintendent, Pacific Cable Station, Doubtless Bay.]

No. 24. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office. Sir, — Pacific Cable Station, Doubtless Bay Station, 18th August, 1906. I beg to inform you that the Pacific Cable Board has sent me a marble slab to be placed on the top of the pillar from which Dr. Klotz made his observations to determine the transpacific longitudes. The slab bears the following inscription : — Doubtless Bay. Lat. 34° 59' 22" S. Lon. 173° 29' 2" E. Dr. Otto Klotz . F. W. O. Werry. The General Manager instructed me to convey to you, for the information of Sir Joseph Ward, the above particulars, and, later on, similar information regarding the slabs at other Pacific stations. I am, &c, C. L. Hertslet, Superintendent. The Secretary, General Post Office, Wellington.

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WIRELESS TELEGRAPHY.

No. 25. The International Telegraph Construction Company, New York, to the Secretary, General Post Office (New Zealand), at New York. International Telegraph Construction Company (Shoemaker Wireless System), Sir,— New York, 6th July, 1906. We enclose copies of various official letters [not printed] relative to the working of our system. We would call your attention to the fact that the U. S. S. " Maryland" is installed with a 2 k.w. apparatus, which, of course, is a very small capacity. The work on board the " Brooklyn " is interesting, as a comparative test was made at this time, and five other systems besides our own were operated from the " Brooklyn." The capacity of the St. Augustine station is also 2 k.w. This is one of two land-stations we have installed for the Government on the Atlantic coast, and we have established another at Point Arguello, on the Pacific Coast. We will write you more at length in a day or two, taking up the question of specifications. Yours, &c, International Telegraph Construction Company. The Secretary, Post and Telegraph Department (New Zealand), Hotel Waldorf Astoria. Approximate Cost of Paper.— Preparation, not given; printing (1,550 copies), £8 4s. 6<3.

Authority: John Maokay, Government Printer, Wellington.—l9o6.

Price 6d.]

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