Papers Past | Parliamentary Papers | Appendix to the Journals of the House of Representatives | 1915 Session I | TELEGRAPH CABLES (FURTHER PAPERS RELATING TO). [In...

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1915. NEW ZEALAND.

TELEGRAPH CABLES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-8, presented on the 10th August, 1914.]

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

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INDEX.

No. Pagti PACIFIC CABLE 3-13 Accounts, 1913-14. —Capital Account \ Provident Fund Receipts and expenditure > .. .. .. .. 1 Reserves and General Renewal Fund Securities I Board : Death of Lord Straihcona .. .. .. .. .. .. .. 1 Cable Bamfield to Victoria laid, August, 1914 .. .. .. .. .. .. 1 Canvassing by Government officers in New Zealand : Discontinuance .. .. .. 2-11 Excess of expendi,turo over levenue : Proportion to be made good by New Zealand .. 1 Panning Island : Mail communication .. .. .. .. .. .. 1 Interruption: Rates for diverted traffic via Eastern .. .. .. .. .. 12-19 Secretary : Appointment of Mr. P. J. Adye .. .. .. . . .. .. 1 TERMINAL RATES and REDUCTION OF RATES 13-24 • Memorandum of Pacific Cable Board .. .. .. .. .. .. .. 27 Reduction : Announcement to public;.. .. .. .. .. .. .. 32 Eastern Company agree .. .. .. .. .. .. .. 33-37 „ New Zealand representations .. .. .. .. .. 20, 23-25, 27 Pacific Cable Board agree to reduction .. .. .. 24,26-28,30-32 Terminal rates : Australia and New Zealand .. .. .. .-. 21,22,25,27-29,31 PRESS MESSAGES 24 Rates to United Kingdom .. .. .. .. .. .. .. .. [90] Reduction in rate to India, &c. .. .. .. .. .. .. .. 38-40 WEEK-END CABLE MESSAGES 28-84 Delivery at office of destination by post .. .. .. .. 45,48-50,04,65,81,82 on Mondays instead of Tuesdays from 20th July, 1914 .. .. .. 45, 56-62, 64, 65 Fiji: Proposed extension of system .. .. .. .. .. .. .. 78 " Post " messages from Canada .. .. .. .. 46-48, 52, 66-68, 70, 79, 80, 84, 85 United Kingdom .. .. .. 46, 66-68, 70. 72, 74-77, 83 Reduction in rates to Canada .. .. .. .. .. .. 90-93, 95, 97, 98 United Kingdom .. .. .. .. .. .. 86-99 Report of Pacific Cable Board .. .. .. .. .. .. .. [1] Special services .. .. .. .. .. .. .. .. .. 43, 44 System extended to Ascension, St. Helena, &<-. .. .. .. .. 51,55,63,69 Canada .. .. .. .. .. .. 41, 42 India, Burma, and Ce\lon.. .. .. .. .. .. 53 ' „ Portugal.. .. .. .. .. .. .. 54,69,71,73 DEFERRED TELEGRAMS Reduction in rates .. .. .. .. .. .. .. [87], [86], [87], [99] ALL-RED ATLANTIC CABLEProposed lease from Western Union Company .. .. .. .. .. .. [23] WIRELESS TELEGRAPHY 88-52 Advertising advantages of wireless .. .. .. .. .. ..105,108-110,114 Christmas greetings messages between Now Zealand and Australia .. .. 146-148, 156 Marine casualties : Information to be supplied to Marine Information Ager.cies .. 149, 151, 152 Lyttelton, Communication with : Accident to s.s. " Maori " .. .. .. 135-138,141-145 New Caledonia : Wireless station opened at Noumea .. .. .. .. .. 155 New Hebrides : Wireless station opened at Vila .. .. .. .. .. 157-159 " Ocean letter " system between ships .. .. .. .. 132-134,139,140,150 Reduction in rates between New Zealand stations and intercolonial and coastal steamers from Ist January, 1914.. .. .. .. 100-109,112,113,122,125,130 Reduction in rates between Australia and New Zealand and Australian steamers 111-113, 115-117, 121-125, 127-131 Reduction from sd. to 2£d. per word co or from New Zealand steamers voyaging between Wellington and Lyttelton .. .. .. .. 118-120, 126 Telephoning wireless messages to addressee .. .. .. . . .. .. 153, 154

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PACIFIC CABLES.

ACCOUNTS AND ANNUAL REPORT. No. 1. The High Commissioner to the Right Hon. the Prime Minister. Westminster Chambers, 13 Victoria Street, London S.W., Sir, — " 11th December, 1914. Referriug to my letter of the 20th September, 1913 [No. 1, ¥. -8, 1914], I have the honour to enclose herein copy of a letter from the Colonial Office covering a communication from the Imperial Treasury, showing the amounts recoverable from the Colonial Governments in respect to the deficit on the working of the cable for the year ended 31st March, 1914, and asking that arrangements might be made for payment to the Imperial Treasury of the sum of £2,216 14s. 4d., being the amount due from the Government of New Zealand. !g I accordingly telegraphed to the Treasury at Wellington on the Ist instant; and having received in reply, on the sth, a cable bank-order for the above amount, payment has been made to the Imperial Treasury. ... I have, &c, The Right Hon. the Prime Minister, Wellington. Thos. Mackenzie. [P. & T. 11/86.] Enclosure 1 in No. 1. The Assistant Under-Secretary, Colonial Office, London, to the Secretary to the High Commissioner, London. Sir, — Colonial Office, Downing Street, 28th November, 1914. I am directed by Mr. Secretary Harcourt to transmit to you, for the information of the High Commissioner, the accompanying copy of a letter from the Treasury on the subject of the expenses incurred in connection with the Pacific Cable Board for the, year 1913-14, and to inquire whether he can arrange to pay the Imperial Treasury the sum of £2,2.16 14s. 4d., being the amount due from the Government of New Zealand. 2. I am to add that copies of the papers enclosed in this letter have been forwarded to the Governor of New Zealand. I have, &c, •" Henry Lambert, For Assistant Under-Secretary. The Secretary to the High Commissioner for New Zealand.

Sub-enclosure 1 in No. 1. The Assistant Secretary to the Treasury, London, to the Under-Secretary of State, Colonial Office, London. Str, — Treasury Chambers, 14th November, 1914. I am directed by the Lords Commissioners of His Majesty's Treasury to request you to inform .Mr. Secretary Harcourt that the Pacific Cable Board's account of the expenses of the cable for the year ended the 31st March last has now been audited. A copy of the Auditor's report is (mclosed herewith, from which it will be seen that the deficit on the working of the cable for the year 1913-14 amounted to £19,950 Bs. lid., and the sums recoverable from the Dominion Governments are therefore as follows :— £ s. d. Australia (six-eighteenths) .. .. . . .. .. 6,650 3 0 Canada (five-eighteenths) .. .. .. .. .. 5,541 15 10 New Zealand (two-eighteenths) .. ... .. .. 2,216 14 4 £14,408 13 2 I am accordingly to request you to move Mr. Harcourt to communicate with the Dominion Governments concerned, in order that these amounts may be paid as soon as practicable into the credit of the account of the vote for telegraph subsidies and Pacific cable. ' A copy of the printed account as presented to Parliament is also enclosed. I have, &c, The Under-Secretary of State, Colonial Office. Malcolm G. Ramsay.

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Sub-enclosure 2 in No. 1. The Auditor to the Treasury, London, to the Secretary to the Treasury. London. Sir, Treasury Chambers, 25th September, 1914. I have the honour to report that [ have audited the accounts of the Pacific Cable Board, for the year ended 31st March, L914, in accordance with the instructions conveyed in their Lordships' minute of the 17th April, 1902, and have found them correct. The annual expenses of the cable, as defined in section 3 (2) of the Pacific Cable Act, 1901, and extended by section I of the Pacific Cable Act, 191 1. so far as they were not met out of the receipts arising in connection with the cable, amounted in the year to £19,950 Bs. lid. There is, therefore, recoverable from the contributing Dominion Governments a sum of £14,408 13s. 2d. representing thirteenth-eighteenths of the net expenditure, viz. £ s. (1. Australia (six-eighteenths) .. .. .. .. .. 6,650 3 0 Canada (five-eighteenths) .. .. .. .. 5,541 15 10 New Zealand (two-eighteenths) .. .. .. .. 2,216 M 1 £14,408 13 2 T beg to submit that the accompanying account, which has been duly certified, be presented to Parliament in compliance with section 7 of the Pacific Cable Act, 1901. T have, &c. The Secretary to the Treasury. G. H. Hunt, Auditor. Enclosure in Sub-enclosure 2 in No. 1. The CHAIRMAN, Pacific Cable Board, London, to the Lords Commissioners of His Majesty's Treasury, Loudon. The Pacific Cable Board, Queen Anne's Chambers, S.W., My Lords, - sth September, 1914. T have the honour, on behalf of the Pacific Cable Board, to submit, in the form hitherto adopted, the following accounts:---(I.) The sum issued out of the Consolidated Fund, and the expenditure of the Board on Capital Account; (IL) The money borrowed and the securities created ; (III.) The aggregate amount of capital expenditure up to the 31st March, 1914 ; (TV.) The expenses of the cable in the year ending 31st March, 1911 ; (V.) The acoount of the Provident Fund ; and (VI.) The account of the Reserve and General Renewal Fund. 2. The results of the year's working are set forth in the following statement :— RnvuNUE Account. Receipts. £ h, d. Expenditure, £ s. d. Traffic receipts .. .. .. ll((i,0i"J4 II) 7 Head office (salaries and expenses, canvasBank interest (less cost of advance sing, engineers' fees and royalties) .. 8.742 8 10 remittances) .. ~ .. 492 0 4 Cable-stations (salaries and expenses) .. 77,082 Hi 8 yßefund tolls and dues .. ~ 665 Ki 4 Ship's salaries and expenses .. .. 13,244 10 8 Sale of furniture .. .. .. 385 0 0 Provident Fund .. .. .. 2,126 15 II Rent of leased buildings .. , .. 24!) 17 II Renewal Account .. .. .. .'IO,OOO 0 0 Excess of receipts over expenditure .. (in,65! 2 I £197,847 14 2 £197,847 14 2 Net Rbvhntjb Account. By excess of receipts over expenditure £ s. d. To National Debt Commissioners (interest £ s. d. from Revenue Account above .. 66,651 2 1 and sinking fund on £2,000,000 advanced Balance to be provided by Imperial and for capital expenditure on Pacific cable) 77,fj4'4 18 0 Dominion Parliaments .. .. 19,950 811 Renewal Fund (Interest and sinking fund nn moneys provided for Sydney-Auck-land and Doubtless Bay-Auckland cables) .. .. .. .. 9,056 13 0 £86,601. II 0 j £86,601 II 0 The excess of receipts over expenditure is greater by £21,376 Is. (id. than the corresponding figure in the previous year ; and the deficit, to be provided by the Imperial and Dominion Parliaments is £12,319 Bs. 6d. less than the deficit of the previous year. 3. The net traffic receipts as shown in the accounts exceeded those of 1912-13 by £30,028, and were more by £11,055 than was originally estimated by the Board. It will, be seen from the figures given in paragraph 22 of the report that there is a rapid and satisfactory increase in the deferred and week-end traffic, showing that the reduced rates, are appreciated by the public. At the same time, it, must be noted that the traffic at full rates is less than it was in 1911-12, whereas in the three years ending 191112 the full-rate traffic had increased on the average bv about 10 per cent, per annum. This makes it, evident that, as was to be expected, the reduced-rate traffic has, in part, been diverted from the full-rate. 4. The expenditure shows an increase over that, of. 1912 -13 of £8,571. This was due, mainly to the normal increases under the incremental scheme of salaries, to an improvement in the scale of

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locality and lodging allowances, to the provision of electric light and refrigerating plants at Panning Island, and to the increased cost of steamer calls there. 5. The actual sum withdrawn from the Renewal Fund in connection with the provision of the cable Sydney and Auckland, and the extension of the Norfolk Island Doubtless Bay section to Auckland, was £177,251 7s. 4d. To repay this amount to the fund in thirty-five years with interest at 3iJ per cent, in accordance with the provisions of the Pacific Cable Act, 1.9.1 J, an annuity has been created, the first two paymentsjbeing £9,056 13s. each, and the subsequent payments £9,150 ss. Cables. 6. No interruption of communications occurred on the Board's system during the year. The " cables, depots, instruments, and plant generally have been maintained in a high state of efficiency. Land Lines. I. Canada. The land line between Montreal and Bamfield, which the Board leases from the Canadian Pacific Railway Company, has enjoyed a year of exceptional freedom from serious interruptions. During the first half of the year numerous minor interruptions were caused by the operations of railway-construction gangs working along certain sections of the route. The Canadian Pacific Railway Company were able later to devise means for disposing of this difficulty. The traffic on the leased line continues to be handled with expedition and accuracy. The portion of the line which traverses Vancouver Island continues to give the Board some anxiety. The land line from Alberni to Nanaimo has always been insecure, owing to the, climatic conditions and the nature of the country through which, it passes. Moreover, the cable passing through the Alberni Canal, from Bamfield to Alberni (laid by the Board for the Canadian Pacific Railway Company in 1903) has been in service for a number of years, and, being of a light type, can no longer be depended upon. This cable developed its first fault on the 20th April of this year, and was repaired by the company on the 22nd April. After considering various projects for improving the connection between Bamfield and Vancouver, the Board decided to lay a cable from Bamfield to Victoria, thus securing a second and quite independent route .from Bamfield to Nanaimo, the landing-place of the cables from Vancouver Island to Vancouver. The new cable was successfully laid in August, 1914. 8. Australia. —As a result of the laying of the cable between Sydney and Auckland, and the consequent change in the routing of Australian traffic (other than Queensland), which now enters direct into Sydney, the land line between Sydney and Southport, of which the Board had the exclusive use, wits released and was handed back to the Commonwealth Telegraph Department. The Board is now representing to tho Commonwealth Government the urgent need which exists for the allocation of the exclusive use of a copper wire between Sydney and Melbourne for the purposes of their business. The total amount of cable traffic with Melbourne has increased by leaps since 1905, and this fact tenders the demand more imperative. With the exclusive control of a land line —stalled at, Sydney by the Board's officers—-a very rapid and trustworthy service could be maintained with Melbourne, and the Board have every reason to feel assured that a considerable increase in the proportion of Melbourne traffic transiting the Pacific cable would result. They hope, therefore, that the Commonwealth will in the near future be in a position to grant their request. Changes on the Board. 9. The Board have suffered a, loss during the year owing to flit! death on the 2lst January hist of the Right Hon. Lord Strathcona and Mount Royal, G.C.M.G. His association with the Pacific cable began in 1899 with his service on the Pacific Cable Committee of that year, and he was a member of the Board from its institution. Lord Strathcona was held in high esteem by all his colleagues, and his death was deeply deplored. The vacancy in tho representation of Canada on the Board has not vet, been filled. 10. The constitution of the Board underwent a change owing to the retirement in .February last of the .Right Hon. Sir Henry W. Primrose, P.0., K.C.8., C.5.1., who had occupied the chair since July, 1907. Sir Henry Babington Smith. K.C.8., C.5.1., was appointed by the Treasury, in his place, to be one of the British representatives and Chairman of the Board. 11. During the absence from England of the Right Hon. Sir George H. Reid, P.C., G.C.M.G., Captain R. Muirhead Collins acted as one of the representatives of the Commonwealth Government on the Board. Staff. 12. The general health of the staff has remained satisfactory during the year, and the continued zeal and efficiency with which their services are rendered is gratifying to the Board. 13. An age-limit has been fixed at which all officers will be retired. In the case of operators the limit is fifty-five years of age, and for all other officers, sixty. 14. The Board are engaged in the examination of a proposal for instituting a staff pension scheme in lieu of or supplemental to the existing Provident Fund. 15. A vacancy in the head-office staff was caused by the resignation in November, 1912, of the London Manager and Secretary. The Board decided to make a change in the organization of the head office. The post of London Manager and Secretary was abolished, and Mr. F. J. Adye (formerly Accountant and Assistant Secretary) was appointed Secretary and Accountant, with the title Secretary. Hi. Under the instructions of the Board Mr. Milward, Manager in the Pacific, came to London in July, 1913, and remained in England for eleven months. The Board derived great advantage from his presence in London, and from his advice, based on intimate knowledge of the working of the cable and of the conditions in Australasia, Canada, and the Pacific.

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Maintenance Vessel " Iris." 17. The, ship has been maintained in first-class order, and the discipline and efficiency of her company have been in every way satisfactory. The scales of pay of officers and engineers have been revised to their advantage. Stations. 1.8. Manning Island. —Transport and communication during the year was provided by charter of the Commercial Pacific Cable Company's auxiliary schooner " Flaurence Ward" and the s.s. " Kestrel," each vessel making two calls. In addition the " Iris " made a call in July last. The Board's endeavours to obtain a suitable and regular steamer service with the island were continued, and negotiations were reopened with tho Union Steam Ship Company of New Zealand to this end. It was not possible, however, to make any satisfactory arrangements, and the Board were compelled to acquire an auxiliary schooner for the service. They have accordingly placed a contract in Auckland for the construction of a suitable vessel, and it is anticipated that she will be completed by the end of 1914. The total cost of the schooner (including engines and refrigerator plant, which are being sent out from England) will be approximately £9,000, and maintenance, including insurance, will involve an annual charge estimated at £3,300. The prime cost will be charged against capital, stock cable to this value bsing transferred from Capital Account to Renewal Account to produce the funds. 19. Norfolk Island.- —It has been decided to install electric light, at the Norfolk Island station. Plant is being sent out which will produce the necessary power, with a margin sufficient to work the cable relays at that station. 20. Doubtless Bay. —The Doubtless Bay station having been removed to Auckland in December, 1912, the Board's property in that locality has now been disposed of, with the exception of the land. The buildings, which originally cost £6,005, realized £1,050, and furniture and effects, which cost £1,474, were sold for £350. The sale of the buildings was not effected until after the close of the financial year, and the proceeds have not therefore entered into the 1913-14 accounts. 21. Sydney. —In July, 1913, a sub-office was opened in Sydney (Goulburn Street) for the collection of messages. This office is at some distance from the main office, and serves a very important part of the city, being in the vicinity of the premises of fruit and produce merchants who carry on a large cable business. 22. The service of week-end cable letters, which was referred to at some length in the report covering the 1912-13 accounts, has given satisfactory results. There is a steady growth of the volume of traffic under this classification. Since the close of the year under review modifications have been introduced which have added considerably to the utility of this service. Under the original scheme the week-end cable letters were normally transmitted by post to and from the terminal cable-stations, an additional charge being made if telegraphic transmission throughout was desired. In May, 1914, postal transit to and from the cable termini was abolished, all messages being made telegrams throughout, while the charge, per word to the public remains unaltered at 9d. At the, same time the minimum charge, per message was reduced from 18s. for twenty-four words or less, to 15s. for twenty words or less. h\ the same month the service was extended to traffic between Australasia and certain parts of Canada, the tariff being lis. Bd. ($2.90) for a message of twenty words or less, and 7jd. (15 cents) for each additional word. ►.>. In July, 1914, a further facility w r as conceded -viz., the delivery of week-end messages, where practicable, on Mondays instead of Tuesdays. 23. The following statement shows the progress of the international traffic since the opening of the cable :—

Number of Words dealt with. — International.

In addition to the above, a very considerable intercolonial traffic is carried between Australia, New Zealand, and the Fijis. 1 have, &c., H. Babington Smith, Chairman. The Lords Commissioners of His Majesty's Treasury.

Year. I Ordinary. Deferred Ordinary. Government. Press. Deferred Week-end Press Cable rress - Letters. Total. 1902-3 .. 1903-4 .. 1904-5 .. 1905-6 .. 1906-7 .. 1907- 8 .. 1908 9 .. 1909 10 .. 1910-11 .. 1911-12 .. 1912-13 .. 1913-14 .. 24,210 83,116 71,575 74,763 101,307 105,519 116,847 120,415 166,812 164,639 193,6884, 214,971 I I 202,313 744,034 781,028 834,778 I,010,133 1,041,433 1,012,998 1,109,639 1,215,306 I ,346,346 1,288,949 1,329,067| ,1,831 37,819 19,110 13,225 17,222 84,940 95,203 126,081 467,495 501,952 212,500 161,478 228,354 864,969 871,713 922,766 1,128,662 1,231,892 1,225,048 1,356,135 1,849,613 2,131,376 2,660,8071 3,117,839| 46,450* 4.15,616 560.011 7 I , 989| 505,442 44,612$ 525,392 j 326,920 * Introduoi id 1st January, 1 troduced fith '. 'eoember, 1911 J Introduced 1st Jar iuary, 1913. .912. f lu

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Pacific Cable Board (1 Edward VII, c. 31).-Account for the Period ended 31st March, 1914. I.-Statement showing the Sum issued out of the Consolidated Fund, and the Expenditure.

II.-Statement showing the Sums borrowed and the Securities created.

III. — Statement showing the Aggregate Amount of Capital Expenditure.

IV. — Statement showing the Expenses of the Cable in the Year ended 31st March, 1914.

Details of Expenditure. In the Period ended 81st March, 1913. t s. (I. 429 7 8 In the Year ended 31st March, 1914. I £ s. d. Total to 31st March, 1914. £ s. d. 429 7 S (1.) Head office (furniture, &c.) (2.) Stations — Buildings Accessories .. (3.) Cable— Contract Accessories .. [4.) Instruments . . (5.) ShipContract Accessories Ii.) Engineers' fees and expenses 74,465 10 9 18,828 18 II 1.777,41)3 1 9 335 15 0 28,804 8 I (I 3.531 14 0 620 0 0 77,997 4 9 19.448 IS I I 1,777,463 I 9 335 15 0 28,804 8 10 05,910 0 0 7,161 8 I 20.135 9 7 •• 65,910 0 0 7,161 8 1 20,135 9 7 •V 1.993.534 0 7 4,151 14 0 1*997,685 14 7

Details of Receipts. Parliamentary Grant. ineni rant. Be venue. Details of Expenditure. Annuity for the j Replacement of i Capital and of Loan from General Account. Workingexpenses. £ s. d. 14,157 3 2 12,573 (I 0 £ s. (I. I £ S. (1. 77,544 IS 0 9,056 13 0 £ s. d. Balance on 31st March, 1913 Received from H.M. Treasury out of the parliamentary grant in aid Traffic receipts (loss £4,451 14s. I d. paid out for the insertion of date and timo and for duplicate copies of messages) Bank interest (less cost of advance remittances) Refund of tolls and dues Sale of furniture Rent of leased buildings £ 14, 12, £ I ,1 ,5 1 5 15 57 s. 57 : 73 I 196,054 19 7 492 0 4 . 3 0 ( ! ). Eleventh annuity payment . . First, annuity payment to Renewal Acoount (Pacific Cable Act, 1911. I & 2 Geo. V, cap. 30) Head office (salaries and expenses) Head office (advertising and canvassing, engineers' fees, and royalties) Cable-stations (salaries and expenses) Cable - ship (salaries and expenses) Provident Fund, contribution to (Statement V) Transferred to Cable Repair Reserve and General Renewal Fund (Statement VI) 5.326 15 5 3.415 13 5 665 !(i 4 385 0 0 249 17 11 77,082 16 S • 13,241 III S 197,847 14 2 — 2li. 730 3 2 2,120 15 II 30,000 (I I) 131,196 12 86,601 11 0 Balance on 3|sl, March, 1914 217,798 3 I 6,779 14 3 224,577 17 4 224,577 17 4

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V. — Statement showing (a) the Sums received, and expended, and (b) the Securities purchased and sold on Account of the Provident Fund in the Year ended 31st March, 1914.

V.-Statement, &c.-continued.

VI. — Statement showing (a) the Sums received and expended, and (b) the Securities purchased, and sold on Account of the Cable Repair Reserve and General Renewal Fund in the Year ended 31st March, 1914.

Securities purchased. (For Details see below.) t s. d. I Balance on 31st March. 1913 . . 130,900 0 0 Transferred from the account of annual expenses (Statement IV) Interest on securities .. Securities purchased (as per 30,1111(1 0 (I contra) First annuity in repayment of loan to Genera] Account under the Pacific Cable Act, 1911. I & 2 Ceo. V. cap. 36 (Statement IV) Cash Receipts. £ B. d. 32.390 7 I 30,00(1 0 0 5,399 2 I 9.05(1 13 0 Expenditure on new cables between Sydney and Auckland and .Doubtless Bay - Auokland (Pacific Cable Act, 1911. I & 2 Ceo. V, cap. 36) Securities purchased, viz.— Eio.ooo New Zealand 4-per-oent. stock at lOOj £20,000 New South Wales 4-per-cent. stock at 97| Securities sold or redeemed. (For Details see below.) I £ s. d. Cash Payments. t s. (1. 1.195 2 9 10.OSS 2 (I 19,50(1 0 (I Balance on 31st March, 1914 190.900 0 0 30,753 4 9 46,092 17 5 30,753 4 46,092 17 9 160,900 0 0 76,846 2 2 190,900 (I 0 76,849 2 2

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VI. — Statement, &c. —continued.

H. Babington Smith, Chairman. Examined and found correct. —Cr. H. Hunt, Auditor. Pacific Cable Board, sth September, 1914.

CANVASSING. No. 2. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. The Eastern Extension, Australasia, and China Telegraph Company (Limited), Sir,— Adelaide, 20th November, 1913. I have the honour to refer to the question of canvassing for cable traffic in New Zealand [see No. 207-224, P.-8, 1903]. When the Pacific Board were allowed the privilege of appointing canvassers from the Post Office staff we were compelled to send a representative of the company to all the towns periodically in order to retain a small proportion of the New Zealand business. Recently, however, the Pacific have been sending one of their own staff through New Zealand; and the retention of the Government canvassers, in these circumstances, would seem to be rather a heavy handicap for the company to bear. Although, I understand, the former is not allowed to actually see the traffic, he could of course obtain all the information desired from the Government officer, which it would be quite impossible for the company's canvasser to procure. I would therefore be obliged if you would kindly give the matter your careful consideration, as the existing arrangement does not appear to be quite in accord with the impartial attitude we understood it was the desire of your Government to adopt towards the two cable services. I have, &c, L. Webster, The Secretary, General Post Office, Wellington. Manager in Australasia. [P. & T. 11/89. J

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Details of Securities. Balance on 31st March, 1913. Securities purchased during Period of Account. Total. Securities sold or redeemed during Period of Account. Balance on 31st March, 1914. ] Vi Prici .lue at Market i on 31st March, 1914. Bank of England stock Victoria 3-per-ccnf,. stock Victoria 3|-per-ccnt. stock New South Wales 3-per-cent. stock New South Wales 3£-per-cent. stock New South Wales 4-per-cent. stock Queensland 3-per-eent. stock .. Queensland 3|-per-cent. stock.. New Zealand 3-per-eent. stock Now Zealand 4-per-cent. debenture stock Now Zealand 4-per-eent. inscribed stock Bank of New Zealand 4-per-cent. guaranteed stock Canada 3&-per-cent. stock Canadian Northern Railway 3 - per - oent. first - mortgage debenture stock (guaranteed by the Canadian Government) Grand Trunk Pacific Railway 3 - per - cont. first, - mortgage sterling bonds (guaranteed by the Canadian Government) Local Loans 3-per-ccnt. stock Guaranteed 2|-per-cont. stock.. India 3-per-cent. stock South Australia 4-per-cent. stock £ S. d. 11,500 0 0 10,750 I) 0 10,000 0 0 7,000 0 0 £ s. d. £ s. d. 11,500 0 0 10.750 0 0 10,000 0 0 7,000 0 0 £ s. d. • <! £ s. d. 11,500 0 0 10,750 0 0 10,000 0 0 _7,000 0 0 10,150 0 0 243 J 81 90 86 £ s. d. 28,002 10 0 8,707 10 0 9,000 0 0 6,020 0 0 10,150 0 0 10,150 0 0 92 9,338 0 0 20,000 0 0 20,000 0 0 20,000 0 0 101 20,200 0 0 7,500 0 0 7,000 0 0 1 ,000 0 0 4,000 0 0 7,500 0 0 7,000 0 0 I,000 0 0 4,000 0 0 7,500 0 0 7,000 0 0 I,000 0 0 4,000 0 0 81 91 82 100 6,075 0 0 6,370 0 0 820 0 0 4,000 0 0 10,000 0 0 10,000 0 0 10,000 0 0 99 9,900 0 0 1,500 0 0 1,500 0 0 1,500 0 0 100 1,500 0 0 19,400 0 0 11,000 0 0 19,400 0 0 11,000 0 0 19,400 0 0 I 1,000 0 0 94 76 18,230 0 0 8,360 0 0 13,000 0 0 13,000 0 0 13,000 0 0 78 10,140 0 0 5,000 0 0 1,100 0 0 7,000 0 0 4,000 0 0 5,000 0 0 1,100 0 0 7,000 0 0| 4,000 o o: 5,000 0 0 1,100 0 0 7,000 0 0 4,000 0 0 87 77 75f 99 4,350 0 0 847 0 0 5,302 10 0 3,960 0 0 130,900 0 0 30,000 0 0 160,900 0 0 : 100.900 0 0 161,128 10 0

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No. 3. The Assistant Secretary, General Post Office, Wellington, to the Manager in the Pacific, Pacific Cable Board, Sydney. Sir, — General Post Office, Wellington, 13th January, 1914. In reference to the arrangement under which officers of this Department act as canvassers for your Board, I have the honour to inform you that, as you now have your office at Auckland and a permanent officer engaged in canvassing in the Dominion, it appears to me that the arrangement might be discontinued. I should be glad of an expression of your views on the question of cancelling it. I have, &c, P. V. Waters, Assistant Secretary. The Manager in the Pacific, Pacific Cable Board, 63 Pitt Street, Sydney.

No. 4. The Assistant Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. Sir, — General Post Office, Wellington, 13th January, 1914. In reference to your letter of the 20th November last on the subject of canvassing for cable traffic in New Zealand, I have the honour to inform you that the matter is being dealt with now, and that it is hoped that arrangements will be made which will put the Pacific Cable Board and your company on an equal footing as regards canvassing so far as this Department is concerned. I have, &c, F. V. Waters, Assistant Secretary. The Manager in Australasia, Eastern Extension, Australasia, and China Telegraph Company (Limited), Adelaide.

No. 5. The Acting-Manager in the Pacific, Pacific Cable Board, Sydney, to the Secretary, General Post Office, Wellington. Sir, — Pacific Cable Board, 77 Pitt Street, Sydney, 23rd January, 1914. I have the honour to acknowledge your letter of the 13th January, drawing attention to my Board having established an office in Auckland and employing a member of the staff for canvassingwork, and whether under these conditions the services of your officers in this duty might be discontinued. I shall be greatly obliged if it can be permitted (excepting Auckland) for the practice to be continued for a further two or three months. Mr. Milward is expected to return to Australia by way of Vancouver in April next, and at such time I anticipate he will be visiting Wellington and communicate to you my Board's views on can-Vassing-arrangements and other matters. I have, &c, T. Chapman Judd, The Secretary, General Post Office, Wellington. Acting-Manager in the Pacific.

No. 6. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Acting-Secretary, General Post Office, Wellington. The Eastern Extension, Australasia, and China Telegraph Company (Limited), Sir,— Adelaide, 13th July, 1914. I beg to enclose you a copy of a letter [not printed] I have addressed to the Manager of the Pacific Cable Board in Sydney, for your information, and to inquire whether you have been kind enough to favourably consider our request that the practice of Government officials canvassing for the Pacific route should be abolished. The statement made by the Pacific canvasser in Auckland, that messages occupy an hour or more in transit between Auckland and Sydney via the Eastern route, is a direct reflection upon the working of the New Zealand lines, as I know that the delay between Wakapuaka and Sydney is very small indeed. The fact is, the average delay between the two cities mentioned via Wellington is only about twenty minutes, and non-competitive messages via Pacific handed to my company at Sydney show an average delay of nineteen minutes. It is therefore evident from the foregoing that the Pacific canvasser is well able to protect the interests of his Board without the assistance of the officers of your Department throughout New Zealand; and if you would kindly see your way to abolish tho existing practice I think it would materially assist in the maintenance of an impartial attitude towards the two cable services, which, I have been given to understand, it is the desire of the Minister should be adopted by the Department. I have, &c, L. Webster, The Acting-Secretary, General Post Office, Wellington. Manager in Australasia.

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No. 7. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. Sin, General Post Office, Wellington, 22nd August, 1914. T have the honour to acknowledge the receipt of your letter of the 13th ultimo forwarding m copy of correspondence between yourself and the Manager in the Pacific, Pacific Cable Board, Sydney, on the subject of statements reported to have been made by a permanent, officer of the Board at Auckland in regard to the merits of the " Pacific " and " Eastern " routes. Your company's application for the abolition of the arrangement under which canvassing on behalf of the Pacific Cable Board is undertaken by officers of this Department will have consideration on the return to New Zealand, probably in a month's time, of this Department's Secretary. I have, &c, J. C. Williamson, For Acting-Secretary. The Manager in Australasia, Eastern Extension, Australasia, and China Telegraph Company (Limited), Adelaide.

No. 8. The Secretary, General Post Office, Wellington, to the Manager in the Pacific, Pacific Cable Board, Sydney. Sir, — General Post Office, Wellington, sth November, 1914. In reference to the letter from this office of the 29th January last [not printed], regarding the temporary extension at places other than Auckland of the arrangement under which officers oi this Department act as canvassers for your Board, I have the honour to inform you that the Post-master-General now desires that the arrangement be terminated. I shall be glad to hear that you will make other arrangements as soon as possible. I have, &c, W. R. Morris, Secretary. The Manager in the Pacific, Pacific Cable Board, 77 Pitt Street, Sydney.

No. 9. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. Sir,— The Pacific Cable Board, Auckland, 26th March, 1915. I beg to acknowledge the receipt of your letter dated the 20th instant [not printed], asking ■-> for information in re the discontinuance of the arrangement under which officers of your Department act as canvassers for the Pacific Cable Board. I beg to inform you that the Manager in the Pacific has just cabled me as follows : " The Board understand that it is the wish of Postmaster-General's Department that its officers should cease to act in Board's interests after end March, but am confident would welcome any recommendation by New Zealand. Otherwise Mr. Nesbitt, now in Wellington, will tour New Zealand as may be considered advisable." I have, &c, C. L. Hertslet, Superintendent. The Secretary, General Post Office, Wellington.

No. 10. The Assistant Secretary, General Post, Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 29th March, 1915. Your letter 26th instant: Would be glad it could arrange release all officers Department from acting as canvassers from 31st instant.

No. 11. The Manager in the Pacific, Pacific Cable Board, Sydney, to the Secretary, General Post Office, Wellington. (Telegram.) Sydney, 31st March, 1915. Board understands with regret that officers your Department will cease act as canvassers after 31st March. For the present Mr. Nesbitt will tour New Zealand as required.

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INTERRUPTION OF PACIFIC CABLE.-DIVERSION OF TRAFFIC VIA EASTERN. » No. 12. Communication between Suva and Fanning Island and Fanning Island and Bamfield was interrupted by the destruction of the Fanning Island station by the German warship " Nurnberg " on the Bth September, 1914. Communication between Fanning Island and Suva was restored on the 23rd September, 1914, and between Fanning Island and Bamfield on the 6th Novembar, 1914. [P. &T. 1.1/34.]

No. 13. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 11th September, 1914. Manager wires: "Please ask New Zealand Government for present to only circulate by Auckland and Sydney, for Eastern Company's forward treatment, cablegrams having a tariff from New Zealand 4d. additional to rate of tolls charged from Australia by that Administration." [P. &T. 11/117.]

No. 14. The Bight Hon. the Prime Minister, Wellington, to the Right Hon. the Prime Minister, Commonwealth of Australia, Melbourne. (Telegram.) Wellington, 11th September, 1914. Reported here that you intend to charge land rate of 4d. per word on cable messages from New Zealand sent over Pacific cable to Sydney. This will mean that public has to pay 3s. 4d. per word for a message to England sent over Pacific cable, against 3s. for use of Eastern Extension cable to same point. Can hardly believe this. If any negotiations in progress for regulation of traffic glad to he'ar what they are.

No. 15. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 12th September, 19.14. As your Department is circulating international traffic via Pacific and Eastern, I presume 4d. per word additional to Eastern rate is being collected—namely, 3s. 4d. to United Kingdom, 4s. 4d. to New York. Rate to Cape Colony and other places where New Zealand rate is already 4d. in excess of Australian tariff remains unaltered.

No. 16. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, I.4th September, 1914. Please continue to treat agreeably scheduled Eastern rates from New Zealand to international places concerned. Immediately Eastern reply to my query will communicate their decision. New Zealand Government evidently view Pacific Cable Board transit may be deducted for carrying from Auckland to Sydney- -for instance, where like tariffs obtain from New Zealand and Australia.

No. 17. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, J 4th September, 1914. On what ground is the 4d. being raised against Pacific in Australia ? I have given no instructions yet to charge any higher than the usual rate. Prime Minister has communicated with the Commonwealth Prime Minister, but so far as I know has had no reply. Glad of your early advice.

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No. 18. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 14th September, 1914. There will be no alteration in charges pending result of correspondence between the Manager in the Pacific and the Eastern Extension Company.

No. 19. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 14th September, 1914. Eastern advise agreeable accept via Pacific and Eastern with 3d. per word debit for Pacific transit Auckland to Sydney. Please cancel my service 11th commencing "Ask New Zealand Government for present to only circulate," &c.

TERMINAL RATES AMD REDUCTION OF RATES. No. 20. The High Commissioner to the Right Hon. the Prime Minister. Westminster Chambers, 13 Victoria Street, London S.W., Sir— 4th May, 1914. In continuation|of my letter of the 15th ultimo [not printed], I have the honour to acknowledge the receipt of your cablegram of the 15th April [No. 10, F.-8, 1914] reading as follows : " Pacific cable —Terminal rates : Dominion approves your action. It is hoped Board will not compel Dominion take any action that would disturb present friendly relation. Inform Board." I will bring this message before the Board at its next meeting, which does not take place until, the 12th instant. I have, &c, Thos. Mackenzie. The Right Hon. the Prime Minister, Wellington, New Zealand. [P. & T. 11/68.]

No. 21. The Right Hon. the Secretary of State for the Colonies to His Excellency the Governor. My Lord, — Colonial Office, Downing Street, Bth May, 1914. With reference to Your Excellency's despatch of the 21st November last [not printed], I have the honour to transmit to you for the information of your Ministers the accompanying copy of a despatch from the Governor-General of the Dominion of Canada on the subject of the Pacific cable terminal charges. I have, &c, L. Harcourt. Governor His Excellency thejjßight Hon. the Earl of Liverpool, K.C.M.C., M.V.0., &c. Enclosure in No. 21. His Royal Highness the Governor-General of the Dominion of Canada, to the Right Hon. the Secretary of State for the Colonies. Sir,— Montreal, Canada, 23rd April, 1914. With reference to your despatch of the Ist April [not printed], on the subject of terminal rates on cable messages charged by the Government of Australia, I am informed by my Responsible Advisers that Canada approves of the principle that the gross revenue from the Pacific cable terminal charges, less the amount chargeable at urgent inland rates, be included in the Pacific cable accounts, and is of opinion that Australia should be urged, as'a matter of equity, to accept this proposal. I have, &c, Arthur. The Right Hon. Lewis V. Harcourt, M.P., Secretary of State for the Colonies, London.

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No. 22. His Excellency the Governor to the Right Hon. the Secretary of State for the Colonies. Sir, — Government House, Wellington, New Zealand, 2nd July, 1914. I have the honour to acknowledge the receipt of your despatch of the Bth May, forwarding copy of a despatch, from the Governor-General of the Dominion of Canada on the subject of the Pacific cable terminal charges. 2. In acknowledging the receipt of the information contained in the enclosure to your despatch, the Postmaster-General of my Government makes the following observations : " It is noted that Canada approves of the principle that the gross revenue from the Pacific cable terminal charges, less the amount chargeable at urgent inland rates, be included in the Pacific cable accounts, and is of opinion that Australia should be urged, as a matter of equity, to accept this proposal." I have, &c, , Liverpool, Governor. The Right Hon. Lewis V. Harcourt, P.C., &c, Secretary of State for the Colonies.

No. 23. The Right Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 3rd July, 1914. Pacific cable terminal rate : If proposed reduction ordinary cable rate not upheld Dominion must seriously consider payment terminal rate equal that charged by Australia. Atlantic cable: If you regard terms favourable Dominion desire you support proposed lease cable from Western Union Company.

No. 24. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, 28th July, 1914. At meeting of the Pacific Cable Board to-day I moved that resolution passed by Board February last [see No. 5, F.-8, 1914], referring to reduction of 4d. word on New Zealand cable messages, be given effect to as from Ist August next. Found it could not be carried. Best I could do was secure following:— " Board recognizes it as inequitable, that in case of New Zealand traffic Board should receive Is. lid. for the same service as that in case of Australian traffic it received Is. 7d. for. Board resolves that further representation be made to Commonwealth Government on subject of Australian terminal rate with a view to securing reduction present tariffs for Australia and New Zealand. Resolves, further, that if it is not in position to bring into force such reduction both for Australia and New Zealand by the end of current financial year, rate between United Kingdom New Zealand be reduced to 2s. Bd. word from Ist April next." This is satisfactory to extent that Board acknowledge inequitableness to New Zealand of present rate, and definitely fixes date for reduction. It may lead to greater reduction all round than indicated in motion, as some members of Board favourable, notably Canadian representatives.

No. 25. The Right Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 23rd December, 1914. Failing Cable Board reducing rate to 2s. Bd., this Government proposes in immediate future to increase terminal rate to sd. Inform Board.

No. 26. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, sth January, 1915. Pacific cable : With reference to your telegram of the 23rd December, rate between United Kingdom New Zealand will be reduced to 2s. Bd. from Ist April next, as stated in" my telegram of 28th July, and efforts being made obtain simultaneous reduction in Australian rate. Full memorandum Chairman Pacific Cable Board submitted Imperial Government November is going to you by to-day's mail [see sub-enclosure to enclosure 1 in No. 27].

No. 27. The High Commissioner to tlie Right Hon. the Prime Minister. Westminster Chambers, 13 Victoria Street, London S.W., Sir, — sth January, J 915. Referring to my letter of the 29th July [not printed], I have the honour to acknowledge the receipt, on the 23rd ultimo, of your cablegram reading as under [see No. 25].

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I enclose copy of letter which, upon receipt of the above message, was written to the Chairman of the Board, together with a copy of the reply thereto. After communicating with the Colonial Office, and with the concurrence of the Chairman of the Pacific Cable Board, 1 was to-day able to send you the following cablegram in reply to your message [see No. 26]. I enclose herewith three copies of the Chairman's printed memorandum on the whole subject of terminal rates, dated the 18th November last. You will see by the Chairman's covering letter, of which I enclose a copy, that the memorandum had been transmitted to the Colonial Office with a request that if the Secretary of State saw no objection it might be communicated to the several Governments, and this, I understand, is now being done. I have, &c., C. Wray Palliser, The Right Hon. the Prime Minister, Wellington. For the High Commissioner.

Enclosure 1 in No. 27. The Chairman, Pacific Cable Board, London, to the High Commissioner, London. The Pacific Cable Board, Queen Anne's Chambers, S.W., Sir- 13th November, 1914. The question of terminal rates on cable messages charged in Australia and New Zealand has recently been considered further by the Pacific Cable Board. I have the honour to enclose for your information copies of a memorandum on the subject which was approved at the last meeting of the Board. Copies of the memorandum have been transmitted to the Colonial Office with a request that, if Mr. Secretary Harcourt sees no objection, the memorandum may be communicated to the Governments of Canada, Australia, and New Zealand. A copy has also been forwarded to the Treasury. I have, &c, The High Commissioner for New Zealand. H. Babington Smith, Chairman. [Amended memorandum, dated 18th November, subsequently substituted for one referred to above.]

Sub-enclosure to Enclosure 1 in. No. 27. Memorandum of Sir Henry Babington Smith, Chairman, Pacific Cable Board. TERMINAL RATES IN AUSTRALIA AND NEW ZEALAND. 1. Since the institution of the Pacific cable the inequality of the terminal rates in Australia and New Zealand has caused difficulty. For ordinary messages the terminal rate in New Zealand is Id. per word, and in Australia sd. per word. The rate per word charged to the public for traffic with the United Kingdom, is, in each case, 3s. After deducting the terminal charges and the payments to the Atlantic; cable companies the amount retained by the Pacific Cable Board is, in the case of Australian traffic, Is. 9d., and in the '-''case of New Zealand traffic, 2s. Id. The terminal rate charged in Australia is defended by the Commonwealth Government; but it has from the beginning been considered excessive by the other partners in the Pacific cable. The arguments on both sides will be stated later in this memorandum. 2. The fixing of the terminal rate is a matter within the competence of the Government of the country concerned ; and in ordinary circumstances other Governments would be in no way concerned. But in the present instance the Commonwealth Government is in partnership with the Imperial, Canadian, and New Zealand Governments in the business of the Pacific cable, and it is obvious that the other partners cannot be indifferent to a question which materially affects the distribution of the total revenue received from the cable. If the Australian terminal rate were fixed at a lower level the balance would be available either for diminishing the deficit which is met by the partner Governments, or for reducing rates for the public. So long as it remains at its present high level the Commonwealth Government derives an advantage at the expense either of its partners or of the public, who use the cable. CAN THE EXISTING TERMINAL RATE BE JUSTIFIED ? 3. It is necessary first to examine whether the present charge can be justified. The Pacific Cable Board have throughout held that the terminal charge should not exceed the highest rate charged for internal traffic, this being, in the case of Australia, the " urgent " rate for inter-State telegrams, which may be taken as equivalent to 2d. per word. The Commonwealth Government defends the higher rate of sd. per word, in the first place, by pointing to the great extent of the Australian Continent and its telegraph system, and the consequent expense to the Commonwealth Government of the services rendered. In particular, the expensive character of the transcontinental line to Port Darwin is given as a reason for a high charge. But the Pacific cable traffic does not use the Port Darwin line at all; and, owing to the fact that traffic from and to West and South Australia naturally falls to the Eastern Extension Company, the great majority of the Pacific traffic has a very short land transit. A large part of it is never handled by the Government Telegraph Administration, and does not pass over the Government lines at all.

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The following figures, based on an analysis of a fortnight's traffic in December, 1913, show clearly the actual services rendered by the Commonwealth Government in return for the terminal charges : —

The Pacific Cable Board. — Analysis of Estimated Revenue derived by the Commonwealth on the Board's International Traffic for One Year, based on Two Weeks' Business, 1st to 14th December, 1913.

It will be seen that more than 60 per cent, of the traffic is never handled by the Government at all, and that less than 6 per cent, of the traffic has a land transit of more than 600 miles. The terminal rate of sd. for ordinary messages, and the corresponding rates for Press and other messages, are nevertheless paid to the Commonwealth on the whole of this traffic, with the result that out of a total revenue of £28,817 received by the Commonwealth on this account, £14,748, or more than half, represents a landing-tax pure and simple, since no services whatever are rendered by the Telegraph Administration in respect of the traffic which pays that tax. As already stated, the average land transit of the traffic which does pass over the Government lines is short, and does not give any ground for an exceptionally high charge. 4. The rate is also defended on historical grounds. It is pointed out that when the agreement for the Pacific cable was concluded the Australian States were separate for telegraph purposes, and that where a message passed through several States the total transit and terminal charge was in some cases as high as 1 Id. per word. When the telegraph service was taken over by the Commonwealth a uniform charge of sd. was adopted, resulting in a loss of revenue estimated at that time at over £12,000 a, year. The unification of the rates was, however, far from being a benefit to the Pacific cable, since the greater part of the Australian terminal charges consisted of the portion assigned to South and West Australia. The charge on a telegram to Queensland amounted, it is true, to lid. per word; but, out vof this, 7d. was assigned to South and West Australia and 2d. to New South Wales, the terminal rate accruing to Queensland being only 2d. Presumably, therefore, if these rates had continued in force, the terminal charge on Pacific cable traffic going direct to Queensland and not transiting any other State would have been 2d. Similarly, out of a total charge of 6Jd. for telegrams for New South Wales, sd. was assigned to South and West Australia and ljd. to New South Wales. As the Pacific cable traffic reaches New South Wales without transiting any other Australian State, the terminal charge on this basis would have been lid. To put it briefly, the effect of the unification of the terminal rates was to make the Pacific cable traffic pay a share of the charges for the expensive land lines in South and West Australia, of which it makes no use whatever ; and any diminution in the payments to the Government resulting from the unification was a benefit to the Eastern Company only. Nor can it be considered that this result was a natural outcome of the partnership. The original arrangement for the cable was made with the Colonies of Queensland, New South Wales, and Victoria. It lay outside the sphere of South and West Australia, which were interested in the Port Darwin line and the Eastern connection. The effect of bringing in the burden of the Port Darwin line was to throw on the partnership a liability which was not contemplated in the original understanding. It should be added that any loss incurred by fixing the terminal rate atsd. has been far more than recouped by increase of traffic. As stated above, the loss was estimated at £12,000 a year. Between 1902 and 1913 the yield of the Australian terminal rates has increased by more than £33,000. 5. It has been pointed out that the terminal rate cannot be reduced for the Pacific cable without being at, the same time reduced for the Eastern Company, and that the total loss of revenue resulting from a reduction from sd. to 2d. would amount, apart from African and Asiatic traffic, to a sum exceeding £44,000 per annum, which the Commonwealth cannot conveniently afford to lose. In answer to this it may be said : (1.) It is intended by the Pacific Cable Board that any reduction in the Australian terminal rate should be used to effect a reduction in the rates'charged to the public. Thus any loss to the Commonwealth revenues would be compensated, so far as Australia is concerned, by a reduction in the telegraph rates paid by inhabitants of Australia and their correspondents elsewhere. (2.) Since the date at which the rate of sd. was fixed (1902) the value to Australia of the

Words Revenue de Terminal rived from Charges. 1 Number. Peroentage. £ Percentage. Handled by Government— Transit not exceeding 100 miles Exceeding LOO and not exceeding 600 miles Exceeding 600 and not exceeding 2,000 . . Exceeding 2,000 and not exceeding 3,000 Exceeding 3,000 191,490 527,358 80,262 36,036 4,446 8-98 24-74 3-76 1-69 0-21 3,235 8,912 1,306 528 88 11-23 30-93 4-53 1-83 0-3 Total handled by Government, Not handled by Government 839,592 1,292,418 839,592 1,292,418 39-38 60-62 14,069 14,748 48-82 51-18 2,132,010 28,817

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terminal rates, leaving out of account the transit rate on Eastern traffic to New Zealand, has increased from £40,300 to £73,900 approximately. In the same period the whole length of telegraph-line in Australia has not increased by more than about 15 per cent. 6. It is further argued that, as the rate for internal urgent messages is 2d. (double the rate for ordinary) and as cable messages have precedence over urgent, a charge of double the urgent rate, or Id., is justified. This precedence only applies in the case of those messages (less than 40 per cent, of the whole) which are handled by the Government; and it is sufficient, to say in reply that the Pacific ('able Board would be quite, satisfied if cable messages were treated pari passu with urgent internal messages. They therefore claim that no higher charge should be made. 7. Tt has been urged by tho Australian Post Office that the rates of Id., approximately, for ordinary internal traffic and 2d. for urgent traffic are well known to be unremunerative, and were introduced for the purpose of facilitating communication, and that there is no reason for applying a losing rateto international traffic. If the internal rate in Australia is unremunerative, this is largely due to the long-distance lines which are not utilized by the Pacific cable traffic ; and, in any case, it appears expedient to encourage international traffic no less than internal. It may be pointed out also that since non-urgent messages form the bulk of the internal traffic, it is the Id. rate which is unremunerative, and that the rate suggested for the cable traffic is 2d. ; and even with a terminal rate of 2d. on all traffic this would, in the case of Pacific cable traffic, be roughly equivalent to a rate of 4d. on that part of the traffic which is handled by the Government. Moreover, the other partners in the Pacific cable make no higher charger than their internal rate. Tn the case of New Zealand the rate is the same as that on. urgent inland messages. In the case of the United Kingdom the rate is the same as the ordinary inland rate, which is well known to he unremunerative. The British Government receives the rate only on the traffic which it handles, and not on the traffic which it does not handle, but in the latter case the J-d. is retained by tho Atlantic cable companies, who pay a rent to the British Post, Office for their land lines. It may therefore be roughly estimated that the Government receives the equivalent, of |d. per word on the whole traffic. For all the above reasons it is considered by the Board that the maximum rate which can be justified is the urgent internal rate of 2d. RESULTS OF THE PRESENT ARRANGEMENT. 8. The, result of the present, arrangement, is to create a serious inequality between the partners in the ownership of the cable. The deficit on the cable for the year 1913 14 amounted to £19,950, and the liability was apportioned, in the agreed proportions, as follows : — £ United Kingdom (five-eighteenths) . . . . . . . . . . 5,542 Canada (five-eighteenths) .. .. .. .. .. .. 5,542 Australia (six-eighteenths) .. .. .. .. .. .. 6,650 New Zealand (two-eighteenths) .. .. .. .. .. 2,216 The sums received bv the various partners from terminal or transit rates on the traffic were as follows :— £ United Kingdom .. .. .. .. .. .. ..3,842 Canada .. .. .. .. .. .. Nil. Australia .. .. .. .. .. .. .. .. 34,202 New Zealand .. .. .. .. .. .. .. 2,564 ft may be mentioned that in Canada, the telegraph system being in private hands, no terminal oi' transit charge is made by the Government. A line from Montreal to Bamfield is leased from the Canadian Pacific Railroad, the annual rent being £11,000. This rent, and the cost of working the line, aro included in the Board's expenditure. Leaving out of account for the moment the expense of the services rendered, it, will be seen that in the case of the United Kingdom and Canada a net deficit had to be made up. In the case of New Zealand there was a small surplus, while in the case of Australia a net surplus of £27,552 was realized. If, on the other hand, we deduct the yields of a rate of 2d. in Australia, and of the existing terminal charges in New Zealand and the United Kingdom, as reasonable equivalents of the services rendered, there remains a sum of over £21,000 to set against the deficit of £6,650 borne by Australia, the result being a net profit for Australia of more than £14,350, while the other partners incurred a net, loss, amounting in the case of the United Kingdom and Canada to £5,542 each, and in New Zealand to £2,21 (i. , REMEDIES. 9. The most satisfactory remedy for this inequality would be the reduction of the Australian terminal charge for ordinary traffic to 2d., with a corresponding reduction for other classes of traffic. In this case the Board would be prepared to employ the whole of the resulting advantage to the Board's revenue in reducing rates to the public. They would, in addition, be prepared to make the sacrifice of revenue, necessary to reduce the present rate of 35., not to 2s. 9d.,, but to 2s. Bd., both in the case of Australia and New Zealand, and to effect corresponding reductions in the other classes of traffic. The Board desire at the first favourable opportunity to approach the Atlantic, companies with the view ot getting from them a reduction of their rates for the Atlantic transit, and they could undertake such a negotiation with a better prospect, of success^ f they|were able to offer to meet any reduction made bv the Atlantic companies with a considerably larger .reduction on the part of the Pacific cable and the partner Governments. Tn this way it might, be possible to arrive at, a rate even lower than 2s. Bd.

3—F. 8.

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10. If the Australian Government finds it impracticable at present to adopt tho above suggestion, it has been suggested that the inequity as between the, partners might be remedied by taking into account the revenue derived from terminal rates in assessing the proportion in which the deficit should be borne by the various partners. Various methods for effecting an adjustment on these lines were discussed in Sir Henry Primrose's memorandum of the 19th. November, 1912 [see sub-enclosure to enclosure in No. 3, V. 8, 1914], and need not be repeated here. If this suggestion were accepted in principle the question of detailed application could then lie considered. The advantage of this method would be that it would enable the existing injustice to be removed without a reduction of terminal rates and the consequent loss of revenue. The disadvantage would be that there would be no opportunity for a reduction of rates to the public. 11. Another method which has been suggested is the division of Australia into two zones, Queensland, New South Wales, Victoria, and Tasmania forming one zone, and West and South Australia another zone. The terminal and. transit rate for each zone might be, say, 2d. per word for ordinary messages, so that traffic entering one zone only would pay 2d., while traffic passing through one zone to the other would pay 4d. If these zone rates were adopted, with proportionate rates for other classes of traffic, the loss to Commonwealth revenues may be estimated at, £28,500 out of a total revenue of £73,900 from the traffic by both Eastern and Pacific "routes. This is considerably less than the loss of revenue resulting from the reduction of the terminal rate to 2d., which, as stated above, may be estimated at over £44,000. The International Convention does not offer any obstacle to the creation of zones, which already exist in Egypt and. some other countries. Such a system would be satisfactory to the Pacific' Cable Board. THE NEW ZEALAND CASE. 12. Tt has throughout been admitted that, the present arrangements are unsatisfactory for New Zealand. This is all the more to be regretted since from the beginning the Government and public of New Zealand have been the warmest and most effectual supporters of the Pacific cable. Tn the early stages of the controversy it was proposed to raise the New Zealand terminal rate to sd. This was within the power of the New Zealand Administration, and the Pacific Cable Board felt that they could offer no objection. The New Zealand Government, however, refrained from taking action in this direction, because it would have been necessary to raise the terminal rate for the Eastern Company also, and they did not wish to take a step which would appear to be hostile to that enterprise. At the time of the Conference held in 1905 to discuss various questions which had arisen in connection with the Pacific cable, the Now Zealand representative pressed for the reduction of the Australian terminal rate, or, failing that, the payment of a rebate to the New Zealand Government, More recently, finding that there appeared to be little prospect of obtaining such a reduction, New Zealand has claimed that the rate charged to the public for telegrams to and from New Zealand should be lowered by 4d., on the ground of the difference between the Australian and New Zealand terminal rates. This claim has hitherto not been accepted by the Board on several grounds. It is a recognized principle of the International Telegraph Union that it is undesirable to have differences of rate for places in the same region. Further, although the reduction of the New Zealand rate to 2s. Bd. would meet the injustice of which New Zealand complains, it would not remove the existing inequality between .>, the partners in the Pacific cable. It would, in fact, by increasing the general deficit, make the burden of that inequality heavier. It was also felt, that it, would be very desirable, if possible, to secure a general reduction of rates of larger amount, and not merely a reduction of 4d. in the rate to New Zealand only. Moved by these considerations, and also by the disturbance of the year's finanoial estimates which would be caused by an immediate reduction, the Board unanimously decided, at its meeting of the 7th April, 1914 [see No. 9, F.-8, 1914], not to put in force the resolution adopted on the 10th February, 1914 [see No. 5, F.-8, 1914], for the reduction of the New Zealand rate to 2s. Bd., but, to examine whether a more general reduction of rates could not be effected. It was felt, however, that the removal of the New Zealand grievance could not be indefinitely postponed, and when the case on behalf of New Zealand was further pressed the Board resolved, on the 28th July, 1914 [see No. 24], that if no change could be made in the Australian terminal rate the reduction in the New Zealand tariff from 3s. to 2s. Bd. should come into force on the Ist April, 1915, and that in the meantime further representations should be made to the Australian Government. 13. The Board confidently hope that the Australian Government may recognize the force of the considerations urged above, and that by accepting a reduction of the terminal rate, subject to a corresponding reduction in the rate charged to the public, they may render possible a satisfactory solution of this difficult question. They are encouraged in this hope by the last paragraph of Mr. Oxenham's memorandum of the Ist July, 1913 [see sub-enclosure to enclosure in No. 4, F.-8, 1914], where it is stated that " Should lower charges to the public, be decided upon, the Commonwealth will be quite agreeable to reduce, its charges proportionately." 18th November, 1914. , H. Babinoton Smtth.

Enclosure 2 in No. 27. The Secretary to the High Commissioner to the Chairman, Pacific Cable Board, London. Westminster Chambers, 13 Victoria Street, London S.W., Sir,— 30th December, 1914. Referring to the question of terminal rates, I am directed by the High Commissioner, who is at present in Egypt, to communicate to you the following cablegram which he has received from i

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the, New Zealand Government: " Wellington, 23rd December, 1914. —Failing Cable Board reduction rate to 2s. Bd. this Government proposes in immediate future to increase terminal rate to sd. Inform Board.'' The High Commissioner would be glad to learn as early as possible the reply that can be given to the above message. If you have received from the Colonial Office a reply to your printed memorandum of the 18th ultimo, it, may enable the more complete answer to be given to the New Zealand Government. I may mention for your information that when sending the above, cablegram the New Zealand Government were probably unaware of your memorandum, as, acting on the statement contained in the last paragraph of your letter of the 14th November [not printed], the High Commissioner refrained from sending copies of the memorandum to his Government until you were able to inform him that the Secretary of State saw no objection to its transmission. Perhaps therefore you will kindly say whether copies of the memorandum may now be forwarded to New Zealand. I should be greatly obliged for an early reply, in order that the Dominion Government may be informed by cable of the exact position, taking it for granted they do not at present know the contents of your printed melnorandum. 1 have, &c, C. F. W. Palllser, Secretary to the Department. P.S.—When I saw your representative to-day I was under the impression that the memorandum had been sent to New Zealand. —C. F. W. P. The Chairman, Pacific Cable Board, London. Enclosure 3 in No. 27. The Secretary, Pacific (fable Board, London, to the Secretary to the High Commissioner, London. Pacific Cable Board, Queen Anne's Chambers, London S.W., Siu, — Ist .January, 1915. 1 am directed to acknowledge receipt of your letter of the 30th ultimo, intimating that a cablegram from the Prime Minister of the Dominion Government has been received by the High Commissioner, announcing the intention of the Government to increase the terminal rate on international cable business from Id. to sd. per word in the immediate future unless the ordinary rate between the United Kingdom and New Zealand is reduced to 2s. Bd. 1 note that the High Commissioner refrained from sending the memorandum dated the 18th November, dealing with the matter of terminal rates, to his Government, in view of the fact that it was understood that the Colonial Office would communicate this memorandum. I am now advised by the Colonial Office that they are in communication with the Treasury on the subject, but have, so far, not despatched copies of the memorandum to the partner Governments concerned. It is obvious, therefore, that the Dominion Government are not in possession of this memorandum, acquaintance with the contents of which would probably have modified their decision. The Board would be glad if you would be good enough to cable out a summary of the proposals in the memorandum, and more especially of those contained in the last section of paragraph No. 12, with an intimation that the Colonial Office are sending out by this mail copies of the memorandum, t'he Colonial Office have been approached in this matter, and they offer no objection to this course being taken. I have, &c, The Secretary to the High Commissioner. F. J. Adye, Secretary.

No. 28. The Right Hon. the Secretary of' State for the Colonies to His Excellency the Governor. (Telegram.) London, sth January, 1915. With reference to your despatch of 2nd July, His Majesty's Government have considered further memorandum by Pacific, Cable Board on terminal rates. Memorandum intimates intention to reduce ordinary New Zealand rate to 2s. Bd. as from Ist April next. It recommends that Australian terminal charge should be reduced from sd. to 2d., and states that if this could be done ordinary Australian rate would be reduced to 2s. Bd. also. His Majesty's Government hopes that Government of Commonwealth of Australia will be able to accept this suggestion, so that reduction may take place in case of Australia as well as New Zealand as from Ist April next. They have so informed Government of Commonwealth of Australia. Text of memorandum follows by mail [see sub-enclosure to enclosure 1 in No. 27.]

No. 29. The Right Hon. the Secretary of Statu for the Colonies to His Excellency the Governor. My Lord, Colonial Office, Downing Street, sth January, 1.915. With reference to my telegram of to-day, I have the honour to transmit to Your Excellency, for the information of your Ministers, copies of a memorandum by the Pacific Cable Board [see subenclosure to enclosure 1 in No. 27] on the subject of terminal rates in Australia and New Zealand.

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2. I had understood that this memorandum, which, as you will see, is dated the 18th November, had been forwarded to your Government by the High Commissioner, otherwise it would have been sent out to you as soon as it was received at the Colonial Office. 3. I take this opportunity of enclosing, for your Ministers' information, a copy of a despatch on the subject from the Governor-General of the Commonwealth of Australia. I have, &<;., L, Harcourt. Governor His Excellencythe Right Hon. the Earl of Liverpool, G.C.M.G., M.V.0., &c.

Enclosure in No. 29. His Excellency the Governor-General of Australia, Melbourne, to the Right Hon. the Secretary of State for the Colonies. Sir,— Melbourne, 12th October, 1914. With reference to your despatches of the Bth May and the Bth July 1914 [not printed], on the subject of the Pacific cable terminal charges, 1 have the honour to forward herewith copy of a despatch which has been addressed to me by my Prime Minister on this subject. I have, &C, R. M. Feruuson, Governor-General. The Right, Hon. the Secretary of State for the Colonies, London. Sub-enclosure to Enclosure in No. 29. The Right Hon. the Prime Minister of the Commonwealth, Melbourne, to His Excellency the Governor-General of the Commonwealth of Australia. Sir, Prime Minister's Office, Melbourne, 3rd October, 1914. With reference to the Secretary of State for the Colonies' despatches of the Bth May and the Bth July, 1914 [not printed], 1 have the honour to invite. Your Excellency to be so good as to inform Mr. Harcourt that at the 1905 conference of the partners in the Pacific cable the Canadian representative stated, " I should not like to assent to the view that any Government should charge more for Pacific cable business than it charges for the most urgent kind, of local or domestic business. That, I think, is the sound view to take " ; and this is apparently the view which is now being revived. The reduction of the Commonwealth terminal charge from sd. to urgent inland rate (2d.) is equivalent to a reduction of 3d. In November, 1912, the Chairman of the Pacific Cable, Board commented on the Canadian proposal as follows :— " Assuming that, the Australian terminal rate were taken to be 3d. per word in excess of what it should be, on the, Canadian hypothesis (and slightly adapting the figures) this plan would work out as follows in a year in which the revenue and expenditure were approximately those of 1911-12 (but with an adverse balance of £44,000 instead of £45,000) :— £ " Board's traffic revenue .. .. . . .. .. . . 155,0(X1 Australia (excess revenue on terminal rate taken at 3d. per word) .. 14,000 United Kingdom (excess revenue on terminal rate taken at 3d. per word) Nil. Canada (excess revenue on terminal rate taken at 3d. per word) . . Nil. New Zealand (excess revenue on terminal rate taken at 3d. per word) .. Nil. 169,000 Expenditure .. .. .. .. ..... .. 199,000 Balance to be made good .. . . .. 30,000 "One-eighteenth of £30,000 is £1,666f. Accordingly the liability for the £44,000 by which the Board's revenue fell short of the expenditure (viz., £199,000 -£155,000) would be distributed as follows :— £ £ " United Kingdom. . .. 1,666§ X 5 .. .. .. .. 8,883$ Canada .. .. 1,666| x 5 .. .. .. .. 8,833| Australia .. .. 1,666§ X 6 = £10,000 + £14,000 .. 24,000 New Zealand .. .. 1,666§ X 2 .. .. .. .. 3,333$ Total .. .. .. .. .. .. 44,000 " On these figures the position might be contrasted as follows : — " Under present system Australia receives £23,000 and pays T h „ . 3£J of £44,000 (£14,6661) .. .. .. .. £8,333$ net profit. I Under proposed system Australia would receive £23,000 and . pay £24,000 " .. .. .. .. .. £1,000 net loss. " Australia would thus be £9,333$ to the bad, equivalent to a reduction in her terminal charge of approximately 2d., without any corresponding benefit to those most concerned —viz., the Australian public."

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In view of the foregoing, and for the reasons given in the memorandum addressed by theTPost-master-General's Department to the Department of External Affairs on the Ist July, subenclosure to enclosure No. 4, F. 8, 1911], in connection with the matter, the Canadian proposal cannot be agreed to by this Administration. 1 might add that the quotation in paragraph 2 above is taken from the enclosure to a letter from the official Secretary in Great Britain of the Commonwealth of Australia, which was forwarded to the Postmaster-General's Department by the Secretary, Department of External Affairs, on the 21st January, 1913. I have, &c, Andrew Fisher. Governor-General His Excellency the Right lion. Sir Ronald Munro-Ferguson, P.0., G.C.M.G., &c.

No. 30. The Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 15th .January, 1915. Pacific Cable Board has notified intention reduce rates for ordinary cable messages between New Zealand and United Kingdom from Ist April next to 2s. Bd. a word.

No. 31. The High Commissioner to the Right Hon. the Prime Minister. Westminster Chambers, 13 Victoria Street, London S.W., Sir, — 19th January, 1915. In continuation of my letter of the sth instant, I have the honour to transmit for your information copy of paper issued by the Pacific Cable Board which gives not only the recent correspondence with this office, but also communications that have passed between the Colonial Office and the Governors of Australia and New Zealand on the subject of terminal rates. I have, &c, 0. Wray Palliser, For the High Commissioner The Right Hon. the Prime Minister, Wellington, New Zealand. Enclosure 1 in No. 31. [Sec Enclosure 2 in No. 27.J v Enclosure 2 in No. 31. [See Enclosure 3 in No. 27. |

Enclosure 3 in No. 31. The Under-Secretary, Colonial Office, London, to the Secretary, Pacific Cable Boaid. London. Sir, — Downing Street, London, 2nd January, 1915. 1 am directed by the Secretary of State for- the Colonies to transmit to you, for the information of the Board, copies of papers on the subject of the Pacific cable terminal charges. I have, &c, The Secretary, Pacific Cable Board, London. John Anderson. Sub-enclosure to Enclosure 3 in No. 31. [See No. 22 and Enclosure in No. 29.]

Enclosure 4 in No. 31. [See. No. 26.]

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Enclosure 5 in No. 31. The Assistant Secretary to the Treasury, London, to the Chairman, Pacific (.'able Board, London. Sir, — Treasury Chambers, London, 4th January, 1915. With reference to your letter of the 13th November last [not, printed] I am directed by the Lords Commissioners of His Majesty's Treasury to transmit herewith for your 'information a copy of a letter from the Colonial Office dated the 20th November, and of their reply of even date [not printed], on the subject of the terminal rates charged by the Government of the Commonwealth of Australia. I have, &c, T. L. Heath. The Chairman, Pacific Cable Board, 27 Queen Anne's Chambers, London S.W.

Sub-enclosure 1 to Enclosure 5 in No. 31. The Assistant Under-Secretary, Colonial Office, London, to the Secretary to the Treasury, London. Sir, — Colonial Office, Downing Street, London, 20th November, 1914. With reference to the letter from this Department of the Bth May last [not printed], I am directed by Mr. Secretary Harcourt, to request you to inform the Lords Commissioners of the Treasury that he has received from the Pacific Cable Board a memorandum dated the 11th instant on the question of the terminal rates on cable messages charged by the Government of the Commonwealth of Australia. It is understood that a copy of the memorandum has also been sent to the Treasury. 2. Mr. Harcourt proposes, with their Lordships' concurrence, to forward copies of the memorandum to the, Governors-General of Canada and the Commonwealth of Australia and to the Governor of New Zealand, and to express the hope of His Majesty's Government that the Commonwealth Government will see their way to accept the suggested reduction of the terminal rate from sd. to 2d., so that a corresponding reduction may be made in the rate charged to the public. I have, &c, The Secretary to the Treasury, London. '■ Henry Lambert. [Treasury concurred under date 4th January, 1915, and papers were sent by the Colonial Office to the Pacific Cable Board on the 12th January. |

Sub-enclosure 1 in No. 31. [See No. 28.]

Sub-enclosure 2 in No. 31. [See No. 29].

Sub-enclosure 3 in No. 31. The Right Hon. the Skcretary of State for the Colonies to Their Excellencies the GovernorsGeneral of Canada and the Commonwealth of Australia. (Telegram.) London, sth January, 1915. Your despatch of 19th June [12th October]: His Majesty's Government have considered further memorandum by Pacific Cable Board on terminal rates, copies of which were communicated to Postmaster- General and Department of External Affairs in High Commissioner's letters of 12th November | and 20th November]. They hope that Commonwealth Government will be able to accept suggested reduction of terminal rate from sd. to 2d., so that ordinary rate charged to the public may be reduced from 3s. to 2s. Bd. per word in the case of Australia as well as New Zealand as from Ist April next, and have so informed Commonwealth Government.

Sub-enclosure 4 in No. 31. The Right Hon. the Secretary of State for the Colonies to His Royal Highness the GovernorGenkral of Canada. Sir, — Colonial Office, Downing Street, sth January, 1915. With reference to my telegram of to-day, I have the honour to transmit to Your Royal Highness, for record, copies of the memorandum by the Pacific Cable Board on the subject of the terminal rates in Australia and New Zealand [sec sub-enclosure to enclosure I in No. 27].

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2. I take this opportunity of enclosing for your Ministers' information a copy of a despatch on the subject from the Governor-General of the Commonwealth of Australia. [See enclosure in No. 29. j 1 have, etc., L. Harcourt. Governor-General His Roval Highness the Duke of Connaught and of Strathearn. K.G., K.T., K.P., G.C.8.. G.C.5.1., G.C.M.G., (J.C.l.hi., G.C.V.O, &c Sub-enclosure 5 in No. 31. The Right Hon. the Secretary of State for the Colonies to His Excellency the Govf.rnorGbNEBAL OF THE COMMONWEALTH OF A.UBTBALIA. Sir,-- Colonial Office, Downing Street, sth January, 1915. With reference to my telegram of to-day, I have the honour to transmit to Your Excellency, for record, copies of the memorandum [see sub-enclosure to enclosure I in No. 27] by the Pacific Cable Board on the subject, of the terminal rates in Australia and New Zealand. I have, &c, L. Harcourt. Governor-General His Excellency the Right, Hon. Sir R. Munro-Ferguson, G.C.M.G., &c.

No. 32. The High Commissioner to the Right Hon. the Prime .Minister. Westminster Chambers, 13 Victoria Street, London S.W., Sir,- 12th February, 19J5. Referring to my letter of the 19th ultimo and to previous correspondence, 1 have the honour to enclose for your information copies of cablegrams exchanged between the Pacific Cable Board and their Manager in the Pacific with regard to the proposed reduction in the New Zealand tariff, and the announcement thereof. I have, &c, The Right Hon. the Prime Minister, Wellington, Thos. Mackenzie. Enclosure 1 in No. 32. The Manacer in the Pacific, Pacific Cable Board, Sydney, to the Secretary, Pacific Cable Board, London. (Telegram.) Sydney; 26th January. 1915. AnviSED by Secretary, Wellington, New Zealand, rate to United Kingdom reduced from Ist April. May this be announced ? ,jv Enclosure 2 in No. 32. The SECRETARY, Pacific Cable Board, London, to the MANAGER l.\ THE Pacific, Pacific Cable Board, Sydney. (Telegram.) London, 28th January, 1915. PUBLICATION hardly necessary at present, as reduction does not take effect for two months. Board would prefer to await, decision of Australian Government, in order to make comprehensive announcement. Communicate with Secretary, Wellington, suggesting this, and cable his reply. Enclosure 3 in No. 32. The Manacer ix the Pacific, Pacific Cable Board, Sydney, to the SECRETARY, Pacific Cable Board, London. (Telegram.) Sydney, sth February. 1915. Your telegram 28th January: Secretary, Wellington, says no announcement reduction New Zealand rates will be made pending further advice, but thinks public should he given at least month's notice.

No. 33. The Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 22nd February. 1915. Has company arrived at any decision regarding reduction of rates to lit in with reduction announced bv Pacific Cable Board (

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No. 34. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 23rd February, 1915. Your wire of 22nd : Not yet. Approached Commonwealth without, result. Will advise you any developments.

No. 35. The Managkr in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 25th February, 1915. London wires : "' We are consulting ('is-Indian Administrations as to their assisting by bearing fro rata proportions reduction via Eastern, and when their views available will definitely reply inquiry."

No. 36. The Managf.r in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 12th March, I!)15. Our London office has advised me that the Cis-Indian Administrations having agreed to bear their pro rata proportion, our Board have decided reduce tariff via Eastern for through New Zealand traffic from 3s. to 2s. Bd. per word on and from Ist proximo.

No. 37. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 17th March, 1915. From Ist proximo traffic, via Eastern will be reduced by 4d. ordinary and 2d. Government and deferred to Brazil, and to all places Argentine, Uruguay, Paraguay, Chile, Bolivia, and Peru. Wireless offices, Peru, usual addition.

PRESS MESSAGES. No. 38. The Manager in Australasia, Eastern Extension Company* Adelaide, to the Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 22nd February, 1915. It is proposed reduce Press rate with India, Burma, Ceylon, and South Africa, company accepting lid. and Commonwealth Id. per word. This will make tariffs from New Zealand to India and Burma 9d., Ceylon Bd., Durban 7d., other places Union of South Africa 7W. Will you kindly communicate with Commonwealth about proposed transit rate Id. applying Now Zealand for this traffic ? [P. & T. 11/79.] ■

No. 39. The Assistant Secretary, General Post, Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. (Telegram.) . Wellington, 24th February, 1915. Understand arrangements made reduced Press rates Australia with India, Burma, Ceylon, and South Africa. Glad if same could be conceded this Dominion, Commonwealth transit rate to be Id. per word.

No. 40. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post, Office, Wellington. (Telegram.) Melbourne, 26th February, 1915. Common we a lth transit rate Id. per word on Press messages New Zealand with Tndia, Burma, Ceylon, and South Africa agreed to. [Manager in Australasia, Eastern Extension, informed 27th.]

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WEEK-END MESSAGES. No. 41. The Chairman, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. (Telegram.) London, 13th May, 1914. Board have pleasure in notifying arrangements now completed for introduction week-end rate between Australasia and Canada, commencing 28th May. For the present it will apply only to places in Canada to which the 2s. 4d. rate available. Minimum charge for twenty words lis. Bd., and word-rate 7d. Proportions for New Zealand, and rules regarding acceptance, identical United Kingdom week-end arrangements. [P. & T. 11/16.]

No. 42. The Secretary, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. The Pacific Cable Board, Queen Anne's Chambers, London S.W., Sir— 14th May, 1914. I have the honour, by direction of the Pacific Cable Board, to confirm the following cablegram despatched to you yesterday [No. 41]. It has only been possible, so far, to arrange for the exchange of Australasia week-end cablegrams with telegraph-offices situated in certain parts of British Columbia, and with all offices in Alberta, Manitoba, New Brunswick, Nova Scotia, Ontario, Quebec, and Saskatchewan. Negotiations are now passing with a view to the extension of the service to outlying offices in British Columbia, Newfoundland, and Prince Edward Island, thus making it applicable to the whole of the Dominion of Canada, and it is not anticipated any difficulty will be encountered in this matter. The tariffs for messages exchanged with New Zealand will be apportioned as follows :■ — /m j w j Additional (Twenty Words Wf)rd . rate . or Less). s. d. s. d. Pacific cable .. .. .. .. .. ..92 0 5£ New Zealand Post Office .. .. .. ..010 0 of Canadian Pacific Railway .. .. . . ..18 01 11 8 0 7 The Board will be indebted if you will kindly cause the widest publicity to be given to this new service. I have, &c, The Hon. the Postmaster-General, Wellington. Fred. J. Adye, Secretary. [Acknowledged, 27th June, 1914.]

No. 43. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 29th May, 1914. The following telegram has been received from my Board in London: — " Please ask Postmaster-General, Wellington, if prepared admit to week-end messages all special services which are allowed for deferred telegrams, the conditions to be the same in both cases. That is to say, service itself chargeable at full rates, whilst special indication charged at week-end rate with exception case collation, where proposed rate would be quarter week-end rate."

No. 44. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, Bth June, 1914. Special services for week-end messages : Dominion agreeable to extension special services, with exception of " Urgent " and " Express paid," to week-end messages.

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No. 45. The Secretary, General Post Office, London, to the Hon. the Postmaster-General, Wellington. Sir,— General Post Office, London, 9th June, L914. The Postmaster-General is not aware whether the arrangements for the transmission of weekend letter telegrams within the United Kingdom under the simplified system recently introduced have been fully communicated to your Administration. He thinks it right, therefore, to inform you that, in agreeing to a reduced rate for the work done by the Post Office in connection with week-end telegrams, he found it necessary to stipulate for the right to transmit the messages by post in cases where it was clear that this would not prevent despatch on Saturday or delivery on Tuesday. Outgoing weekend telegrams are therefore forwarded from the post-office of origin to the cable-office in this country by post, where time permits, and similarly inward week-end telegrams are delivered by post where this can be effected by Tuesday. The indication TWT is used for all week-end telegrams from this country for Australasia. I have, &c, The Hon. the Postmaster-General, Wellington. E. W. Farnall.

No. 46. • • The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 18th June, 1914. The supplementary instructions " Post " are now allowed in Canadian week-end messages. Am inquiring if similar facility extends to week-end messages for the United Kingdom.

No. 47. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 20th June, 1914. Your service 18th instant, acceptance week-end messages by Canada with supplementary instructions " Post " : As all week-end messages are posted it is assumed that Canada will now accept such messages to be posted to a destination outside that Dominion, such as " London post Montreal." Is this correct ?

No. 48. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post, Office, Wellington. (Telegram.) Auckland, 20th June, 1914. WEEK-end messages : Yes, " New York post Montreal " will be in order. I understand all week-end messages are delivered by telegraph messengers unless addressees reside beyond the usual delivery limits.

No. 49. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 22nd June, 1914. All week-end messages received in New Zealand are telegraphed to office of destination and delivered by first post Tuesday morning. There is no authority for the delivery of these messages by telegraph message-boys. The recent amendments [see No. 42, F.-8, 1914] provided for telegraphing from office of origin to destination, and did not alter mode of delivery. I should be glad of any information you can afford on this matter.

No. 50. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 22nd June, 1914. The British Postal Guide, also the Commonwealth Guide, indicate that week-end messages have always been delivered by telegraph messengers. 1 have just asked Sydney, and received reply that week-end messages are delivered by telegraph messengers if within free delivery.

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No. 51. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. The Eastern Extension, Australasia, and China Telegraph Company (Limited), Sir,— Adelaide, 25th June, 1914. I have the honour to inform you that my company is desirous of further extending the service of week-end telegrams, and would like to introduce this special class of traffic between New Zealand and Australia and the undermentioned countries, in accordance with the conditions already in operation, at the following rates : — New Zealand. Twenty Words. Per Word, s. d. s. d. Ascension .. .. .. .. .. .. 22 11 'If St. Helena .. .. .. .. .. .. 17 11 0 10f Zanzibar . . .. .. .. .. .. 13 9 0 8| Seychelles, Rodriguez, and Mauritius .. .. 13 9 0 8J Cocos .. .. .. .. .. ..8 9 0 5J Aden .. .. .. .. .. .. 13 9 0 8J Perim .. .. .. .. .. .. 16 3 0 9| Penang, Malacca, Singapore, and Labuan .. . . .. 14 2 0 8J The credit to New Zealand would be the same as for the services at present in force— i.e., |-d. per word. You will observe that the foregoing charges are all based on the quarter-rate principle. 1 would be obliged if you would kindly advise me whether your Department is prepared to accept the proposal, and, if so, the date on which you would prefer the new service to commence. • I have, &c, L. Webster, The Secretary, General Post Office, Wellington. Manager in Australasia.

No. 52. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 29th June, 1914. Manager in the Pacific advises, "Canadian week-end messages for postage outside Canada should be addressed either Vancouver or Montreal. Little or no advantage gained by mailing from any other points, and may cause trouble and confusion."

No. 53. '#he Manager in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. The Eastern Extension, Australasia, and China Telegraph Company (Limited), Sir,— Adelaide, 30th June, 1914. I have the honour to acknowledge receipt of your letter [not printed, but see No. 57, F.-8, 1914] referring to the extension of the week-end system to India, Burma, and Ceylon. The omission of Ceylon from the reply sent by the Director-General, India, is no doubt due to the fact that Ceylon is a Crown colony, and therefore does not come under the jurisdiction of the DirectorGeneral ; but the Government oi the colony had accepted the week-end scheme as arranged by the company before communicating with New Zealand and the Commonwealth. I have, &c, L. Webster, The Secretary, General Post Office, Wellington. Manager in Australasia.

No. 54. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Acting-Secretary, General Post Office, Wellington. The Eastern Extension, Australasia, and China Telegraph Company (Limited), Sir — Adelaide, 4th July, 1914. I have the honour to inform you that Portugal is desirous of exchanging week-end telegrams with Australasia under the same conditions and rates as are now in force for the United Kingdom, and shall be obliged if you will kindly advise me whether your Government will accept this service for New Zealand, and from what date. I have, &c, L. Webster, The Acting-Secretary, General Post Office, Wellington. Manager in Australasia. I

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No. 55. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Eastern Extension Company, Wakapuaka. (Telegram.) Wellington, 4th July, 1914. Letter from Mr. Webster dated 25th ultimo, proposed extension week-end telegram service to Ascension, St. Helena, Zanzibar, &c. : Please inform Mr. Webster this Dominion accepts condition as regards minimum of twenty words and the amount as stated by him for that minimum, but cannot agree to proposed charge for additional words where such charges include farthing. For example, Ascension additional per-word rate in excess of twenty, Is. lfd., Zanzibar BJd. Dominion could only agree in former instance to Is. 2d., and in latter to B|d., and likewise in all other similar instances. Dominion credit to be, as at present in force for similar service, Jd. per word. If Webster agrees will amend proposals and submit Minister for approval.

No. 56. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 10th July, 1914. Company agrees deliver week-ends Monday, to commence 20th instant, but make stipulation under no obligation deliver Monday unless messages in their hands at receiving-station in time, and will not accept any liability for delays over Monday caused by interruptions, pressure traffic, &c. Kindly say whether Dominion will agree foregoing. Re Continental week-ends :If Department accept such messages post London via Pacific please do same Eastern. , , I, .

No. 57. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 10th July, 1914. Eastern agrees delivery week-end jmessages to commence 20th. instant. Stipulates messages must be in their hands at receiving-stations in time, and no liability for delays over Monday caused by interruptions, pressure traffic, &c. Kindly say what action Pacific contemplate.

No. 58. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. ■*■ (Telegram.) Auckland, 13th July, 1914. Following advice! received from London : —Week-end messages if received in time at office of delivery will be delivered Mondays instead of Tuesdays, beginning 20th July.

No. 59. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, 14th July, 1914. Pacific Cable Board decided that week-end messages shall be delivered Monday if they are at delivery office then. Board under no obligation to deliver before Tuesday. Change takes place 20th July. Please notify New Zealand offices.

No. 60. The High Commissioner to the Right Hon. the Prime Minister. Sir, — Westminster Chambers, 13 Victoria Street, London S.W., 16th July, 1914. I have the honour to inform you that I have received a letter from the Pacific Cable Board (copy of which is annexed) stating that the proposal that week-end messages should be delivered on Monday instead of on Tuesday has, subject to certain conditions, been adopted. The substance of this letter was duly communicated to you by my cablegram quoted hereunder [No. 59]. I have, &c, The Right Hon. the Prime Minister, Wellington. Thos. Mackenzie. [Acknowledged, 29th August, 1914.]

F.—B.

Enclosure in No. 60. The Chairman, Pacific Cable Board, London, to the High Commissioner for New Zealand, London. Sir, — Pacific Cable Board, Queen Anne's Chambers, London S.W., 9th July, 1914. As you are aware, the Board at its meeting on the 7th instant decided to adopt the proposal that week-end messages should be delivered on Monday instead of on Tuesday, as at present, provided that the telegram is in the hands of the delivery office on that day. They do not, however, propose to undertake any obligation to deliver week-end messages on Monday if, owing to pressure of traffic or any other reason, the message is not available at the office of delivery until a later time. It is proposed that the change should come into force on the 20th instant, and the Board will be greatly obliged if you will communicate with your Government by telegraph in order that the necessary instructions may be given to all offices of delivery. I have, &c, The High Commissioner for New Zealand. H. Babington Smith, Chairman.

No. 61. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 16th July, 1914. Week-end messages : Delivery onJMonday agreed|to—that is, received messages on hand to be posted Sunday night, messages received subsequently posted immediately upon receipt. To commence 20th instant. Continental messages " Post London " are not accepted by either route.

No. 62. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 16th July, 1914. Week-end messages : Dominion agrees delivery on Monday —that is, received messages on, hand to be posted Sunday night, messages received subsequently posted immediately upon receipt. To commence 20th instant.

No. 63. The Manager in Australasia, Eastern Extension Company, Adelaide, to tho Acting-Secretary, General Post Office, Wellington. *■ (Telegram.) Adelaide, 17th July, 191.4. Your message of 4th instant: Company agrees your proposal re elimination farthings, and our debits against Dominion will then be : Ascension, Is. l|d. ; St. Helena, IOJd. ; Zanzibar, Seychelles, &c, and Aden, Bd. ; Cocos, sd. ; Perim, 9Jd.; Penang, &c, Bd. New Zealand terminal to remain -|d.

No. 64. The Superintendent,'Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 18th July, 1914. Following from Manager, Sydney: Week-end letter telegrams. Please ascertain if possible Secretary's consent for Monday delivery to commence Monday. Messenger delivery is said to obtain in Australia. Hope New Zealand will adopt like practice.

No. 65. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 18th July, 1914. As already notified, this Dominion agrees delivery week-end cable telegrams by posting general night mail Sunday night, messages received subsequently to be posted immediately upon receipt. Offices have been instructed accordingly. Will advise later regarding delivery by message-boy.

P.— 8.

No. 66. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. Sir,— , , The Pacific Cable Board, Auckland, 20th July, 1914. 1 beg to forward herewith copy of a circular issued by the Pacific Cable Board concerning week-end telegrams to be posted to points outside country of telegraphic destination, and shall be glad to know whether your Department has any objection to it being distributed in New Zealand. 1 have, &c., C. L. Hertslet, Superintendent. The Acting-Secretary,, General Post Office, Wellington.

Enclosure in No. 66. [Circular issued by the Pacific Cable Board.] Week-end cablegrams " Via Pacific " may now be posted from telegraph-offices in Great Britain and Canada to other countries. This concession will no doubt meet the convenience of senders in Australasia who desire to make use of week-end rates to the U.S.A., Continent of Europe, &c. (I.) Messages will he mailed by registered post from telegraph-offices in Great Britain and Canada. A fee of sd. is charged for mailing. (2.) The indication P.R. (post registered) will be necessary in addition to the indication TWT (week-end), and will form a chargeable word iii the address. (3.) A full postal address must be furnished. Examples : — (a.) P.R. TWT Schmidt 898 Friedrichstr Berlin London. (b.) P.R. TWT Schuyler 1976 Broadway Newyork Montreal. (4.) Rates. —Continent of Europe, &c. (by post from U.K.), 9d. per word, with minimum charge of 15s. sd. U.S.A., &c. (by post from Canada), 7d. per word, with minimum charge of 12s. Id.

No. 67. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 23rd July, 1914. Week-end messages : Your circular [enclosure in No. 66] stipulates a mailing fee of sd. on messages for posting to places beyond Great Britain and Canada (indicator PR). Your service 18th ultimo named indicator " Post, " for Canada, and offices instructed accordingly. This Administration is of opinion senders should be allowed option under Convention Regulation 59 (a) and (6). Propose withhold distribution of circular until this made clear.

No. 68. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 24th July, 1914. Manager in Pacific has asked me to-supply you with copy of following service from Pacific Cable Board, London : -Week-ends for European Continent other than Belgium, Holland, and France to be posted forward from London now acceptable. Prefix to be TWP. Prefix PR unnecessary, unless as result of New Zealand communications it is decided to offer option of registered and unregistered. Messages must bear full mailing-address. Word ' London ' after address unnecessary, as prefix will explain required disposal.

No. 69. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 24th July, 1914. Your letter 25th June and service of 17th instant, also letter 4th instant, week-end service to Ascension, St. Helena, &c, and Portugal : Department agrees exchange accordingly. Service to commence from Ist proximo. Confirm date commencement early as possible allow notify public.

No. 70. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 24th July, 1914. From Manager in Pacific, : The Pacific Cable Board replies, " Your telegram 23rd, intention was all should be registered, otherwise no evidence delivered, and uniform charge has advantage of simplicity. Suggest maintaining unless you attach importance to option."

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No. 71. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Adelaide, 29th July, 1914. Your service 24th : Portugal agrees Ist proximo for week-ends.

No. 72. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 30th July, 1914. Pacific notify week-end messages for European Continent other than Belgium, Holland, and France to be posted from London now accepted. Prefix TWP. All such messages to be delivered by registered post. Prefix PR, however, unnecessary. Messages must bear full mailing-address. Word " London " after address unnecessary, as prefix will explain required disposal. Please reply quickly whether such messages and conditions acceptable your route.

No. 73. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 30th July, 1914. Exchange week-end services with Portugal from Ist proximo agreed to, and offices notified.

No. 74. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. ■ (Telegram.) Wellington, 30th July, 1914. Your service 24th : Week-end messages for European Continent other than Belgium, Holland, and France to bo posted from London. This Dominion agrees prefix TWP. Messages to be post registered. Offices will be notified accordingly.

No. 75. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Acting-Secretary, General Post Office, Wellington. ' (Telegram.) Adelaide, 31st July, 1914. Yours 30th : Arrangement not same as agreed with Commonwealth for Continental week-ends post >.j» London, but please accept for Eastern same as Pacific, and will meantime obtain further information from London.

No. 76. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Adelaide, Ist August, 1914. My service yesterday : London approves arrangement via Eastern, but asks whether same rules as in force Commonwealth can be applied Continental week-ends post London for sake uniformity.

No. 77. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 3rd August, 1914. Rules in force Commonwealth regarding week-end messages post London not known here. Offices have been instructed accept in terms my service 30th ultimo. Better write details required your route.

• No. 78. The Superintendent, Pacific Cable Board, Auckland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, 24th August, 1914. London office asks whether there is demand for week-end cable rate between New Zealand and Fiji to appreciable degree. [Answered on the 10th September, 1914, there was no demand for such a service.],

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No. 79. The Acting-Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 7th. September, 1914. What is position week-end cable messages addressed Canada for onward transmission by post ? Are indicator TWP and prefix PR necessary in address 1

No. 80. The Superintendent, Pacific Cable Board, Auokland, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Auckland, Bth September, 1914. Following from Manager in the Pacific : —Week-end messages posted from Canada continue need PR and terminal telegraph-office in address.

No. 81. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 30th October, 1914. Re delivery week-end cable letters : Your service telegram of 18th July, commencing " As already no ified " : Has it been finally decided that week-end messages must be delivered through medium of post ?

No. 82. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, 30th October, 1914. Delivery week-end messages : Yes, delivered through medium of post.

No. 83. The Superintendent, Pacific, Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 14th November, 1914. Week-end letters for Europe, except Germany, France, Belgium, and Austria, may be accepted to be from London.

No. 84. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) 28th November, 191.4. Week-end messages : It has been decided that TWP as indicator in messages posted forward from Canada will cover class of message and registered posting.

No. 85. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, Ist December, 1914. Further to my service message of the 28th re week-end messages posted forward from Canada : Bamfield will determine points from which week-end messages are to be posted. It is therefore unnecessary to include terminal telegraph-office in address. Full mailing-address must be given.

No." 86. The Right Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 17th February, 1915. Will reduction 2s. Bd. [see No, 26] reduce deferred and week-end proportionally ? [P. & T. 11/68.]

F.-8

No. 87. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, 18th February, 1915. Pacific Cable Board meeting to-day. Deferred reduced to Is. 4d. ; week-end letters reduced to 13s. 9d. for twenty words and Bd. word after.

No. 88. The Right Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 20th February, 1915. Pacific reduced rates: Confirm minimum week-end 13s. 9d. (query, 13s. 4d.).

No. 89. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, 23rd February, 1915. With reference to your telegram of the 20th February, Pacific Cable Board promised to telegraph you full details through their Sydney Manager on the I.Bth February. Week-end rates, confirm 13s. 9d. and Bd. word after, but it is for you to consider suggestion which is being made Pacific Cable Board through their Manager.

No. 90. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 2nd March, 1915. From Milward :" Am directed by Board to advise you urgently as follows : —' Commencing April Ist international rates from and to New Zealand on pages 1 to 15 Board's tariff list reduced by 4d. per word ordinary and 2d. for deferred, Government by 2d. Week-ends: Terminal rate being, Australia l|d., New Zealand |-d, reduced rate should be for United Kingdom B|d. per word, with minimum 13s. 9d. for twenty words. To avoid practical inconveniences of farthing rate, propose word-rate Bd., with minimum 13s. 9d. If New Zealand can make terminal charges |d., rate would then be 13s. 4d., and Bd. Week-ends, Canada, minimum 10s. 5d., word-rate 6d ; same remarks apply. Press and deferred Press unaltered.' " Board ask publication foregoing deferred until your decision made re terminal rates and charges for week-ends. Please reply." ." ——————^^—^^^^

No. 91. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board' Auckland. (Telegram.) Wellington, 6th March, 1915. Your telegram 2nd : For Milward, rates approved.

No. 92. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 6th March, 1915. Following from Manager, Sydney : —lt is not, clear whether New Zealand agrees accept Jd. per word as terminal rate on week-end, which would make this rate to United Kingdom minimum 13s. 4d., wordrate 8d ; Canada minimum 10s., word-rate 6d. ; or whether the |d. terminal rate is maintained and minimums 13s. 9d. and 10s. sd. respectively. Please reply soon as possible.

No. 93. The Assistant Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) M Wellington, Bth March, 1915. Cable rates, week-end messages : New Zealand requires |d. each word.

5—F. 8.

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No. 94. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office Wellington. (Telegram.) Auckland, Bth March, 1915. From Milward : If week-end United Kingdom minimum made 13s. 9d. and word-rate Bd., will New Zea'and require fd. out of the Bd. or will |-d. only apply to first twenty words and |d. for additional words ? If possible please reply to-day so that I can telegraph London to-night.

No. 95. The Assistant Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Board, Auckland. (Telegram.) Wellington, Bth March, 1915. Cable rates : New Zealand cannot agree £d. rate week-end messages. Accepts United Kingdom minimum 13s. 9d. twenty words, Bd. each additional word. Canada, minimum 10s. 5d., additional word 6d.

No. 96. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, 10th March, ,1915. You will have been advised that Pacific Board have agreed 13s. 4d. minimum rate week-end cables.

No. 97. The Superintendent, Pacific Cable Board, Auckland, to the. Secretary, General Post Office, Wellington. (Telegram.) Auckland, 11 th March, 1915. Following from Milward : " Referring your telegram Bth, Board replies : 'In view strong opinion held by Post Office on ground uniformity, we have agreed adopt minimum 13s. 4d. instead of 13s. 9d. and word-rate Bd. for week-ends to United Kingdom ; also minimum 10s. and word-rate Bd. for Canada. Shall publish alterations London to-day. Suggest simultaneous publication New Zealand.' Kindly arrange publication amended via Pacific rates at once."

No. 98. The Superintendent, Pacific Cable Board, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 12th March, 1915. Following from Milward : " My service yesterday read ' minimum 10s. and word-rate 6d. for Canada.' This of course applies to places in Canada where word-rate was previously 7d. Will advise week-end rates to other places in Canada later."

No. 99. The Manager in Australasia, Eastern Extension Company, Adelaide, to the Secretary, General Post Office, Wellington. (Telegram. Adelaide, 15th March, 1915. Re reduction from New Zealand to Great Britain rate Ist April: Please accept via Eastern deferreds at Is. 4d., Governments Is. 4|d., and week-ends Bd. with minimum 13s. 4d. when company notifies resumption last-named this route. %

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WIRELESS TELEGRAPHY. REDUCTION IN RATES. No. 100. The Secretary, General Post Office, Wellington, to the Resident Engineer, Amalgamated Wireless (Australasia), Limited, Sydney. Sir, - General Post Office, Wellington, 29th August, 1913. I have the honour to bring to your notice the matter of a proposal for reduction in the present rates charged for the transmission of ordinary radio-telegrams. This Department would be glad if you would consider the question as affecting the transmission of radio-telegrams from ship stations in the intercolonial trade —that is, trading exclusively between Australia and New Zealand-- and from ship stations licensed by this Dominion trading between ports on the coast of New Zealand. The ship stations engaged in the Home trade would not be affected ; but probably it would be advisable to consider whether the mail-steamers trading between New Zealand and San Francisco, New Zealand and Vancouver, and New Zealand and the South Sea Islands should not be included in any reduction of rates that may be agreed upon. It is suggested for consideration that the rate for ordinary radio-telegrams to or from the ship stations proposed should be reduced to one-half the present charge—viz., to sd. per word—and should lie allocated thus : ship station, 2d. ; shore station, 3d. It is not suggested that the rate for Government radio-telegrams should be also reduced from the present charge of sd. a word. I should be glad if you would give the proposal your best consideration, and afford me your views at as early a date as possible. I have, &c, W. R. Morris, Secretary. E. T. Fisk, Esq., Resident Engineer, Amalgamated Wireless (Australasia), Limited, Sydney. [Tel. 12/161(10).]

No. 101. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. Sir, General Post Office, Wellington, sth September, 1913. I have the honour to enclose for your information copy of my letter of the 29th ultimo to the Amalgamated Wireless (Australasia), Limited, Sydney, proposing that a reduction lie, made in the charges for the transmission of ordinary radio-telegrams to and from ship stations engaged in the intercolonial and New Zealand coastal trade, &c. The matter was discussed with Mr. Fisk on his recent visit, and it was decided to put the proposals in writing with the view of an agreement being come to. I should be glad of your views on the matter, and whether your company have any objection to the proposed -reductions. I have, &c, W. R. Morris, Secretary. The General Manager, Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 102. The Secretary, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir, — Dunedin, 11th September, 1913. I beg to acknowledge receipt of your letter of the sth instant enclosing copy of your letter of the 29th August to the Amalgamated Wireless (Australasia), Limited, Sydney, proposing a reduction in the charges for the transmission of ordinary radio-telegrams. This question was raised by the writer some months back, but we were asked to let the matter remain in abeyance until the new radiostation in Wellington was opened for business, and as your Department approves of the suggestion we are quite willing to agree to whatever is arranged. I shall be glad to know if you wish us to communicate with Mr. Fisk on the subject, or whether you prefer our waiting till you have his reply. I have, &c, The Secretary, General Post Office, Wellington. C. Hughes, Secretary.

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No. 103. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney, to the Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Culwulla Chambers, Sir,— ? l| Castlereagh Street, Sydney, 12th September, 1913. I have the honour to acknowledge receipt of your letter dated the 29th August, in the matter of proposals for reduction of radio-telegraphic rates. I brought this matter before my board yesterday, and strongly recommended itlfor favourable consideration, and I am pleased to inform you that my views were endorsed by the board. We are now investigating past records and the possibilities of future development; and although it is not possible to give a definite answer to your proposals at the present moment, I am pleased to inform you that this company is in favour of making some reduction for colonial ships trading between New Zealand ports, and that the matter is now receiving our best consideration. I will communicate with you further at as early a date as possible, but I may not be able to give you our final decision until after the next meeting of our board, which will be held in the second week of October. I have, &c, E. T. Fisk, Technical Manager, Amalgamated Wireless (Australasia), Limited. The Secretary, General Post Office, Wellington.

No. 104. The Assistant Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. Sir, — General Post Office, Wellington, I.6th September, 1913. With reference to your letter of the 11th instant, regarding the proposed reduction in the charges for the transmission of ordinary radio-telegrams, I think there is no need for you to communicate with Mr. Fisk. I anticipate he will send you a copy of the reply he gives the Department. I have, &c, F. V. Waters, Assistant Secretary. The General Manager, Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 105. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney, to the Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Culwulla Chambers, ..Sir, — Castlereagh Street, Sydney, 9th October, 1913. I have the honour again to refer to your communication dated the 29th August and my reply thereto of the 12th September. The proposals you were good enough to make were fully discussed at our board meeting yesterday, and I am pleased to inform you that we shall be agreeable to comply with your suggestions for reducing the present radio-telegraph rates on board ships operated by this company trading exclusively between Australia and New Zealand, and between ports on the coast of New Zealand ; the total charge to be sd. per word, and divided in the proportion of three-fifths to the coast station and two-fifths to the ship station. With reference to the mail-steamers trading between New Zealand and San Francisco, New Zealand and Vancouver, and New Zealand and the South Sea Islands, we should prefer not to make the reduction at the present time, but to watch the effect of the reduced rates on those ships already mentioned, and then, if after a suitable trial-period an extension appears to be justified, we shall be very pleased to again consider the question. For the exchange of telegrams exclusively between ships to which the reduced rates will apply I foresee some difficulty in making a similar reduction, because the arrangement at present applies only when they are in communication with the New Zealand coast stations, and not during other parts of their voyage. I think the best arrangement for the time being will be to make a rate of 4d. per word for messages exchanged between any two ships licensed by your Administration i.e., 2d. per word for each ship ; and when communicating with ships licensed elsewhere the present ship-tax of 4d. per word should be charged for such other ships, and 2d. per word for the New Zealand ship. We propose, if after a suitable trial the reduction is justified by a sufficient increase in traffic, to approach the Commonwealth Government with a suggestion to apply similar rates on the Australian coast, and if this is done the reduced ship-tax can be applied to all communications between any ships registered in the Dominion or the Commonwealth. We suggest, if suitable to you, that the new rates should come into force on the Ist January, 1914 ; and simultaneously with their introduction we have decided to expend a considerable sum upon thoroughly advertising the service, as we realize that at the present time the public has not been educated to the use of wireless telegraphic communication between shore and ship.

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In conjunction with our advertising, we shall be very pleased to provide our periodical, communi-cation-charts to each of your head post-offices, if you will be good enough to arrange for a list to bo published at every telegraph-office in New Zealand informing the public what ships are in communication with, and may be expected to communicate with, New Zealand coast stations. A similar arrangement to this has been made with the Postmaster-General's Department in Melbourne. We are providing copies of each communication-chart to the Deputy Postmasters-General in every State, and they will cause to be exhibited in the public office a list of all ships expected to be in Australian coast stations ; at the same time they will telegraph the information to every sub-telegraph-office, where similar lists will be posted. These lists are to be exhibited in conjunction with an attractive circular which the Department is now getting out. We shall be pleased to co-operate with your Department in. all efforts to increase the amount of radio-telegraph traffic. I have, &c, E. T. Fisk, The Secretary, General Post Office, Wellington. Technical Manager.

No. 106. The Secretary, Union Steam Ship Company, Dunedin, to the SECRETARY, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir,--- Dunedin, ,13th October, 1913. Referring to your letter of the, Kith September, regarding a proposed reduction in charges for the transmission of ordinary radio-telegrams, we are just in receipt of the following cable from the Amalgamated Wireless Company in Sydney : " New Zealand Government propose reduction of coast and shore rate, by half. We agreeable and will accept. Do you concur ? Reply." In view of the expression of opinion in your letter of the 16th September we have not cabled acquiescing, and I shall be glad if you will be good enough to wire us on receipt if there is any objection, so far as your Department is concerned, to our expressing our being agreeable, to adopt the proposed arrangement. 1 have, &c, The Secretary, General Post Office, Wellington. C. Hughes, Secretary.

No. 107. The Secretary, General Post Office, Wellington, to the, Secretary, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 20th October, 1913. Your letter 13th instant, wireless charges : Formally agree to proposed reduction of coast and shore rate by half. [[Acknowledged 20th October, 1913.]

•-* . No. 108. The Assistant Secretary, General Post Office, Wellington, to the Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney. Sir, — General Post Office, Wellington, 4th. November, 1913. I have the honour to acknowledge the receipt of your letter of the 9th ultimo, announcing that the proposals of this Department for a reduction by one-half of the radio-telegraph, rates on board ships operated by your company trading exclusively between Australia and Now Zealand and between ports on the coast of New Zealand have been approved of by your Board. This Department is gratified that its proposals have been adopted, and will be pleased to aid in advertising the service. The introduction of tho reduced rates at the beginning of next year will be satisfactory to this Department. I have, &c, F. V. Waters, Assistant Secretary. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Culwulla Chambers, Castlereagh Street, Sydney.

No. 109. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney, to the Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Culwulla Chambers, Sir, — Castlereagh Street, Sydney, 14th November, 1913. I am in receipt of your favour of the 4th instant, in which you were good enough to mention that your Department would be pleased to aid in advertising the radio-telegraph service under the, reduced rates which are to come into force on the Ist January next.

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In connection with the proposals for publicity, I am making arrangements for advertisements to appear periodically in some of the leading New Zealand newspapers ; at the same time,[our methods of advertising on board the ships will be entirely reorganized, and steps will also be taken to advertise, as far as possible, at all the hotels and other public places in New Zealand. It would be of great assistance if your Department will make arrangements to keep every telegraph-office in New Zealand supplied up-to-date advice of the ships in range with New Zealand coast stations, so that any inquiries/jan be answered for the public, and messages can be routed to the proper coast stations. In addition to this we should be pleased to supply copies of our intercolonial, Pacific, and Australian to your chief if you are agreeable to have them exhibited in suitable some convenient place in the public part of the offices. From these charts can be seen not only tho ships which are in range with New Zealand, but the date on which any ship trading to New Zealand and Australian ports may be expected to communicate with various land stations, so that the public will know when their messages should be handed in and when they might expect to receive communication from the ships. As these charts may prove to be a little complicated for uninformed persons, it would enhance their value if your telegraph officers at the counter would endeavour to examine and understand them, so that they themselves can readily obtain and give information from the charts. They are, of course, quite simple when understood, and are used with great facility and advantage by all our operators at sea. You will, no doubt, fully realize with me that any advertising you may do at your telegraphoffices, and whatever we do on board the ships, in hotels, and other places, operates to our mutual advantage ; and I would suggest that we (this company) advertise thoroughly on board tho ships, in the hotels, &c, at our own expense, your Department advertise, as far as it thinks advisable, in the post-offices, and perhaps in other public Government buildings, at its own expense, but that advertising in the Press might be done jointly. lam sure that periodical advertisements in the newspapers, under the advice of some one who thoroughly understands newspaper advertising, will be well repaid in telegraphic traffic, and we should be prepared to carry these on systematically, paying for' the necessary expert advice, if your Department will bear half the actual cost of advertisements up to a limit of £100 per annum. I should be very grateful to have your views on these points as soon as you have had time to give them due consideration. I have, &c, E. T. Fisk, The Secretary, General Post Office, Wellington. Technical Manager.

No. 110. The Assistant Secretary, General Post Office, Wellington, to the Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney. Sir, — General Post Office, Wellington, 9th January, 1914. I beg to refer to your letter of the 14th November last on the subject of advertising wireless telegraphy as a means of communication. This Department agrees to pay up to £100 per annum half the cost of advertisements in some of the leading New Zealand newspapers ; to exhibit at post-offices a suitable poster drawing the attention of the public to the facilities afforded for exchange of wireless telegrams ; to keep New telegraph-offices posted up to date with the advice of ships within reach of New Zealand coastal stations ; to exhibit at its principal offices your intercolonial, Pacific, and Australian coast communica-tion-charts ; and to instruct counter officers to study and thoroughly learn the means of using the charts so that their contents may be given the public immediately on request. . I have, &c, F. V. Waters, Assistant Secretary. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Culwulla Chambers, Castleragh Street, Sydney. ■

No. 111. The Acting-Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Sir, - Postmaster-General's Department, Melbourne, 25th February, 1914. In confirmation of my cablegram of to-day's date [not printed], I have the honour to inform you that arrangements have been completed by this Administration for the reduction, from the Ist proximo, of the charges on wireless messages exchanged with vessels licensed by this Department, to 6d. per word, which includes coast station (3d.), ship station (2d.), and land line (Id. with no minimum). The following is a list of the vessels affected [not printed]. 2. I might add that it has been suggested to this Administration by the Amalgamated Wireless (Limited) that the vessels fitted with that company's system and licensed by your Administration may also desire to participate in the reduced charges. 3. This Department therefore is prepared to agree to a similar reduction on messages exchanged with vessels licensed by your Administration as from the Ist proximo if the vessel originating or receiving the message charges 2d. per word in respect of the ship-station handling of messages. 4. Should this proposal meet with your approval and you will be so good as to furnish me with a list of New Zealand vessels so fitted, the necessary instructions will be issued in the matter. I have, &c, Charles E. Bright, Acting-Secretary. The Secretary, General Post Office, Wellington.

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No. 112. The Secretary, General Post Office, Wellington, to the Acting-Secretary, Postmaster-General's Department, Melbourne. (Telegram.) Wellington, 26th February, 1.914. Reduced wireless charges : Dominion agrees ship charge 2d. Charges, applicable all vessels engaged exclusively intercolonial trade or between ports Dominion, were reduced to ship 2d., coast station including inland charge 3d., total 5d., from Ist ultimo for messages to or from Dominion.

No. 113. The Acting-Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 4th March, 1914. Yours 26th ultimo : Information received here that " Maheno," L ' Maitai," " Manuka," " Maori," " Maunganui," " Moeraki," " Riverina," " Ulimaroa," " Victoria," " Wahine," " Warrimoo," " Westralia," and " Willochra " licensed by your Administration, are charging reduced rates on New Zealand traffic. To prevent confusion collection charges, please state whether those vessels will charge 2d. per word ship-handling of traffic via Commonwealth stations. See my letter 25th idem.

No. 114. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney, to the Assistant Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Culwulla Chambers, Sir,— Castlereagh Street, Sydney, 9th March, 1914. I have pleasure in referring to your letter of the 9th January, and thank you for the advice that your Department agrees to pay up to £100 per annum, half the cost of advertising in some of the leading New Zealand newspapers ; to exhibit at post-offices a suitable poster; and»to keep your tele-graph-offices supplied with advice of ships within range of your coast stations, as well as showing our communication-charts at the principal offices and instructing your counter officers to make full use thereof. I have to inform you that my board thoroughly appreciates the co-operation and assistance to be given by your Department in this matter, and wishes me to tender our best thanks. As you have no doubt observed, we have been making a trial of advertising in the leading newspapers at Wellington and Auckland. As a result of this trial lam instructing our Mr. Gill to provide full information in reference to the use of larger and more prominent spaces in those journals, so that with the assistance you have promised we may be able to make a very good feature of this form of publicity. I regret that your letter has not been acknowledged previously, but owing to pressure of other matters I have had to leave the question of advertising in abeyance up till just now. I have, &c, E. T. Fisk, The Assistant Secretary, General Post Office, Wellington. Technical Manager.

No. 115. The Secretary, General Post Office, Wellington, to the Acting-Secretary, Postmaster-General's Department, Melbourne. (Telegram.) Wellington, 10th March, 1914. This Dominion no objection ship stations licensed by New Zealand and engaged exclusively in intercolonial trade participating in your reduced rates. New Zealand will avail itself of similar privilege ship stations licensed by Commonwealth. Ship-station charge 2d. per word in both cases.

No. 116. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 28th April, 1914. Instructions issued vesselsjliocnsed yourJAdministration participate reduced wireless rate 6d. per word from Ist proximo.

No. 117. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Melbourne, 9th May, 1914. Reduced wireless rate applies to all vessels licensed by Dominion communicating with Commonwealth stations independent of vessel's route.

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No. lis. The Technical Manager, Amalgamated Wireless (Australasia), Limited (at Wellington), to the Secretary, General Post Office, Wellington. • Amalgamated Wireless (Australasia), Limited, Australasia Chambers, Sir,—- Wellington, ,24th June, 1914. I have much pleasure in advising you that the reduced radio-telegraph charges recently introduced for intercolonial and coastal steamers have proved to be attractive to the travelling public, with the result that an increasing amount of traffic is being obtained from ships engaged in the intercolonial trade. The existing rates are, however, too high to be made use of by passengers on ships trading exclusively between two ports in New Zealand e.g., between Wellington and Lyttelton. I feel certain that if a special rate were introduced for vessels trading exclusively between two ports within the Dominion of New Zealand, and not going more than two hundred miles from the coast on a regular voyage, the increased facility would be appreciated and made use of by the travelling public, to the mutual advantage of all concerned. At the present time little or no paid traffic is obtained from such ships, and for that reason a special rate is justified if it produces revenue where none has been obtained in the past. Special rates have been applied by mutual arrangement between the British Post Office and the wireless-telegraph companies in the case of ships crossing the North Sea and the Irish Channel. The rates for radio-telegrams exchanged, through the medium of British coast stations, between ships at sea and any place within the United Kingdom, including ship charge, coast station and inland charges, are given below : — (a.) To or from ocean-going ships making voyages to ports over 1,000 miles from the United Kingdom, lOfd. per word, without minimum. (/).) To or from ships making voyages to ports over 200 miles but under 1,000 miles from the United Kingdom, sd. per word, with a minimum charge of 2s. 6d. per message. (o.) To or from ships making voyages to ports less than 200 miles from the United Kingdom, 2|d. per word, with a minimum charge of 2s. Id. per message. If your Department will agree to a total charge of 2Jd. per word for messages exchanged through New Zealand coaSt stations between any place in New Zealand and a ship trading exclusively between two ports within the Dominion of New Zealand, my company will be pleased to confirm that arrangement for all ship stations controlled by us. The division of tolls would be, of course, at, the rate of I-Jd. per word to the coast station and Id. per word to the ship station. At, this low rate I do not see any objection to a minimum charge of Is. 3d. per message of six words, and I think such a charge should be made in this case. I should be very grateful if you will give this your best consideration and inform me of your views in due course. I have, &c, E. T. Fisk, The Secretary, General Post Office, Wellington. Technical Manager.

No. 119. vThe Acting-Secretary, General Post Office, Wellington, to the Technical Manager, Amalgamated Wireless (Australasia), Sydney. Sir,— General Post Office, Wellington, 17th July, 1914. In reference to your correspondence of last month with this office, and your interviews with Mr. Morris and myself, I have the pleasure to inform you that the Postmaster-General, as a tentative measure, is willing to reduce the cost of wireless messages exchanged between ships in the Wellington.-Lyttelton ferry service and land stations in New Zealand from sd. to 2£d. a word. Taking into consideration the representations which, have been made by the responsible officers of the Department, it has seemed proper to restrict the operation of the reduction to that particular sea voyage for the present. If, as is anticipated, the step proves by results to be justified, the Minister contemplates extending the reduction further, in the hope of being able to give full effect to the scheme as you proposed it. I have, &c, F. V. Waters, Acting-Secretary. The Technical Manager, Amalgamated Wireless (Australasia), Limited, 97 Clarence Street, Sydney.

No. 120. The Technical Manager, Amalgamated Wireless (Australasia), Limited, Sydney, to the ActingSecretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Sir, — Wireless House, 97 Clarence Street, Sydney, 23rd July, 1914. I have to acknowledge receipt of your letter dated on the 17th instant, from which I learned with much pleasure that the Postmaster-General, as a tentative measure, is willing to reduce the cost of wireless messages exchanged between ships in the Wellington-Lyttelton ferry service and land stations in New Zealand from sd. to 2Jd. per word. Although it is not particularly mentioned in your letter, I presume the Postmaster-General has also agreed with my suggestion that a minimum charge of Is. 3d. per message should be made in

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respect of this reduction. lam writing to our Mr. Gill in Wellington to-day, requesting him to issue to our operators on the ferry-steamers the necessary instructions which will enable the new rates to be brought into operation on the Ist August, but if that date should not be suitable to tbe arrangement of your Department I should be very pleased if you will inform Mr. Gill, so that he can defer issuing the instructions until some later date. I am asking Mr. Gill to include with his instructions the minimum charge of Is. 3d. per message. I note that you consider it advisable to restrict the operation of the reduction to the ferry service for the present, but if the step proves by results to be justified the Minister contemplates extending the reduction further. I have, &c, E. T. Fisk, The Acting-Secretary, General Post Office, Wellington. Technical Manager.

No. 121. The Secretary, Postmaster-General's Department, Melbourne, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 25th August, 1914. As it has not been definitely stated you agree reduced rates applying all vessels licensed by Australia and New Zealand when communicating with Australian stations irrespective of vessel's route, shall be glad cable advice to this effect. Failing agreement, old rates of 6d. coast station and 4d. ship station will be reverted to by this Administration from Ist proximo.

No. 122. The Acting-Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. (Telegram.) Wellington, 28th August, 1914. Your telegram 25th : This Dominion agrees to its reduced wireless rates applying to all vessels licensed by Australia and New Zealand trading exclusively between Commonwealth and Dominion when communicating with Dominion stations. Regret unable extend concession to vessels engaged other routes. No objection to Commonwealth extending its reduced rates to vessels licensed by this Dominion when communicating with Australian station irrespective of route.

No. 123. The Amalgamated Wireless (Australasia), Limited, Sydney, to the Acting-Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Sir, — Wireless House, 97 Clarence Street, Sydney, 29th August, 1914. We have to inform you that after a considerable amount of discussion between tho Department in Australia and this company, tho Department has intimated that the reduced rates for radio-telegraph messages should apply to all vessels licensed in Australia and New Zealand when communicating with Australian stations, and if this is not agreed upon the old rates of 6d. and 4d. will be reverted to by the Australian Government. We are informed that the Australian Department has communicated with you by cable in the matter. For your information I enclose herewith copies [not printed] of the last letters which have been exchanged with Melbourne, and we should feel grateful if you will acquaint us with your views in the matter. ■ We have, &c, E. T. Fisk, The Acting-Secretary, General Post Office, Wellington. Technical Manager.

No. 124. The Secretary, Postmaster-General's Department, Melbourne, to the Acting-Secretary, General Post Office, Wellington. Sir, — Postmaster-General's Department, Melbourne, Ist September, 1914. With reference to your cablegram of the 28th ultimo, and previous correspondence, relative to the reduction of wireless-telegraph rates, I have the honour to inform you that this Department has been in communication with the Amalgamated Wireless (Australasia), Limited, on the subject, and the following is an extract from a communication which has been received from them in regard to the matter :— " We must ask you to reconsider your decision to revert to the old rates on the Ist September, as it would be impossible to advise all our ship stations in the time. In reference to the alternative suggested by you, of making the low rates generally applicable to all ships licensed in Australia or New Zealand, we also think that this is a question which, requires careful consideration; and, further, if we were agreeable to your suggestion it would not be right for us to adopt it without consulting the New Zealand Administration, because it would place them in the position of having to make a similar

6—F. 8.

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reduction for their coast stations or having a much higher rate than would be charged in Australia. We wish to suggest that the present arrangements be continued until the 1 st November, so that in the meantime some definite decision can be mutually arrived at between your Departnient, the New Zealand Department, and this company." 2. In view of that notification, and as intimated in my cablegram of yesterday [not printed], it has been decided to allow the present rates to continue until the Ist November next, before which time it is hoped that a decision will be arrived at whereby the reduced rates will apply t.o all boats licensed by Australia and New Zealand when communicating with Australian stations, irrespective of the route on which any particular vessel might be employed. I have, &c, Justinian Oxenham, Secretary. The Acting-Secretary, General Post Office, Wellington.

No. 125. The. Acting-Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. Sir, — General Post Office, Wellington, 21st September, 1914. With reference to your letter of the Ist instant regarding the reduction of wireless-telegraph rates, I have the honour to inform you that this Department offers no objection to radio communications being made at reduced rates from ship stations licensed by this Dominion when working with Australian land stations, irrespective of the vessel's route. The reduced wireless rates in force in this Dominion apply to vessels licensed by the Commonwealth as well as this Dominion so long as the conditions are complied with—viz., the vessels must trade exclusively between the Commonwealth of Australia and the Dominion of New Zealand, or between ports on the Dominion coast. The scope of this Department's reduced wireless rates was agreed upon between this Department and the Amalgamated Wireless (Australasia), Limited, as a means of ascertaining whether similar reductions to vessels trading on other routes could be made when considered desirable. Further, this Department is of opinion that at present it would not be justified in departing from its agreement with the Amalgamated Wireless (Australasia), Limited. It is hoped, however, that this will not affect the Commonwealth's reduced rates being applied to vessels licensed by this Dominion engaged in the intercolonial trade. I have, &c, F. V. Waters, Acting-Secretary. The Secretary, Postmaster-General's Department, Melbourne. '

No. 126. The Acting-Secretary, General Post Office, Wellington, to Chief Postmasters and S uperintendents . (Telegram.) Wellington, 21st September, 1914. The charge for transmission of radio-telegrams to or from ships trading exclusively between ports von coast of Dominion, while such ships are voyaging between ports of Wellington and Lyttelton, from or to any telegraph-office in Dominion is now 2-Jd. (twopence half-penny) per word, with a minimum charge of Is. 3d., equal to message of six words. [Amalgamated Wireless, Limited, informed of date of introduction — 21st September —on sth November, 1914.]

No. 127. The Acting Assistant Secretary, General Post Office, Wellington, to the Amalgamated Wireless (Australasia), Limited, Sydney. Gentlemen, — General Post Office, Wellington, Ist October, 1914. In reference to your letter of the 29th August last, regarding the reduction of wirelesstelegraph rates, I have the honour to inform you that this Department offers no objection to radio communications being made at reduced rates from ship stations licensed by this Dominion when working with Australian land stations, irrespective of the vessel's route. The reduced wireless rates in force in this Dominion apply to vessels licensed by the Commonwealth as well as this Dominion so long as the conditions are complied with—viz., the vessels must trade exclusively between the Commonwealth of Australia and the Dominion of New Zealand, or between ports on the Dominion coast. The scope of this Department's reduced wireless rates was agreed upon between this Department and yourselves as a means of ascertaining whether similar reductions to vessels trading on other routes could be made when considered desirable. Further, this Department is of opinion that at present it would not be justified in departing from its agreement with you. It is hoped, however, that this will not affect the Commonwealth's reduced rates being applied to vessels licensed by this Dominion engaged in the intercolonial trade. This Department has informed the Postmaster-General's Department of the Commonwealth in the above terms. I have, &c, J. C. Williamson, Acting Assistant Secretary. The Amalgamated Wireless (Australasia), Limited, Wireless House, 97 Clarence Street, Sydney. [P. & T. 71/120.]

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No. 128. The Amalgamated Wireless (Australasia), Limited, Sydney, to the Acting Assistant Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Sir, — Wireless House, 97 Clarence Street, Sydney, 7th October, 1914. We thank you for your "letter of the Ist instant, in which you have advised us that your Department offers no objection to radio communications being made at the reduced rates from ship stations, licensed by the Dominion, when working with Australian land stations, irrespective of the vessel's route. . . . We think it is better to have the reduced rates applicable to all vessels licensed in the Dominion or in the Commonwealth than to go back to the higher rates which were previously in force. We therefore propose to agree to the general reduction so far as Australian stations are concerned, but we are reserving the right to return to the original charges if it is found necessary at some future time. We have, &c, E. T. Fisk, The Acting Assistant Secretary, General Post Office, Wellington. Technical Manager.

No. 129. The Secretary, Postmaster-General's Department, Melbourne, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 15th October, 1914. Your letter 21st ultimo re wireless rates : Amalgamated Wireless advises as follows : " Wellington states New Zealand Department has no objection reduced rates being applied generally to all vessels licensed in that Dominion when communicating with Australian stations. In view fact Australian Administration insisting upon reduced rates being applied all vessels licensed Australia New Zealand or abandoned altogether, are obliged agree your suggestion for introducing reduced rates for all vessels on and from November Ist, subject to your agreeing reduced rates with " St. Albans," " Tahiti," " Niagara," " Aparima," also on understanding we at liberty withdraw from arrangement and revert to higher rates upon three months' notice if found advisable." Please confirm.

No. 130. The Acting-Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. *" (Telegram.) Wellington, 16th October, 1914. Your cable yesterday regarding letter 21st ultimo : Dominion offers no objection Australia applying reduced rates to all vessels when communicating Australia, but Dominion can only apply its reduced rates to vessels intercolonial trade communicating New Zealand. This course does not interfere with Commonwealth action.

No. 131. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post « Office, Wellington. Sir, — Postmaster-General's Department, Melbourne, 29th October, 1914. With reference to previous correspondence relative to the rates for radio-telegrams, I have the honour to inform you, in confirmation of my telegram of yesterday [not printed], that the Post-master-General has decided to continue the reduced rates —viz., 2d. ship charge, 3d. coast station, and Id. land line—for all traffic to and from Australia and vessels licensed by the Commonwealth or the New Zealand Administration, irrespective of the vessel's route ; the reduced rates also to apply, from the Ist proximo, to the following vessels licensed by the British Administration- -viz., " Tahiti," " Niagara," "St. Albans," and "Aparima." The "St. Albans" was included in the list of vessels furnished with my letter to you of the 25th February last. 2. I shall be glad if you will kindly favour me with an up-to-date list of the New Zealand vessels affected. I have, &c, The Secretary, General Post Office, Wellington. Justinian Oxen ham, Secretary. [Acknowledged, and list sent, 13th November, 1914.]

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MISCELLANEOUS. No. 132. The Secretary, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. , Union Steam Ship Company of New Zealand (Limited), Sir,— Dunedin, 28th April, 1913. I am enclosing copy of a circular received from Marconi International Marine Communication Company, London, regarding a new class of radio-telegram which we are informed came into operation as from the Ist April last, and I shall be glad to know whether the intimation affects the ship stations licensed by your Department, including those engaged in the trans-Pacific service. I have, &c, The Secretary, General Post Office, Wellington. C. Hughes, Secretaiy. [P. & T. 7.1/19.]

Enclosure in No. 132. The Marconi International Marine Communication Company (Limited). —Circular No. 229. On and after the Ist April, 1913, a new class of radio-telegram, which shall be known as the " ocean letter," will be introduced, and to which the following regulations shall be applicable : — The " ocean letter," which shall bear the prefix SSD, is a radio-telegram which may be sent from one ship to another ship going in an opposite direction, for delivery by registered post from the first port of call of the latter vessel. ■ Tariff. The rate for SSD messages will be ss. 6d. for the first thirty words, including postage and registration fee, and Id. per word thereafter up to a maximumjof 100 words, international counting. The conditions under which the newsservice is authorized are as follows : — (I.) That the message shall not be transmitted when either of the ships concerned is within range of a shore station. (2.) That they shall only be exchanged between ships/proceeding in opposite directions. (3.) That only one ship-to-ship fcransmissiontshall be allowed. (4.) That radio-telegrams accepted under the provisions of the International Convention shall not be delayed. (5.) SSD messages will rank in priority after fully paid and franked messages, and shall not interfere with the prompt despatch of all ordinary traffic. No franking authority will be applicable to this class of message. (6.) " Ocean letters " are until further notice to be transmitted only to ship stations controlled by the undermentioned, and under no conditions whatever may they be sent to a coast station for delivery by post: — The Marconi International Marine Communication Company (Limited), Marconi House, Strand, London W.C. La Compagnie Francaise Maritime et Coloniale de Telegraphie sans Fil, 35 Boulevard des Capucin.es, Paris. La Compagnie de Telegraphie sans Fil, Rue Bredcrode .13, Brussels. The Marconi Wireless Telegraph Company of Canada (Limited); 86 Notre Dame Street, Montreal. The Marconi Wireless Telegraph Company of America, Lords Court Building, 27 William Street, New York. La Compagnia Internazionale Marconi per la Comunicazioni Marittime, Via del Collegio Romano No. 15, Rome. An operator receiving an SSD message for delivery will see that it is properly enveloped and addressed, and will arrange for it to be sent forward to its destination by registered post from the first port of call. In any case where registration cannot be effected the SSD message is to be despatched by ordinary letter-post, and a note of explanation is to be made on the back of the office copy of the received-form. For abstracting purposes SSD messages will be entered on Forms Nos. 7 and 9 in the usual manner. The sender of an " ocean letter " may not choose a ship to which the message shall be sent. Its disposal will depend solely on local conditions, and is to be effected in accordance with the above regulations. Special forms and envelopes in connection with this new class of traffic will be issued, and telegraphists should be careful to see that this stationery is put to the proper use. The Marconi International Marine Communication Company (Limited). Marconi House, Strand, London W.C, 19th February, 1913.

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No. 133. The Secretary, General Post Office, Wellington, to the Secretary, Union Steam Ship Company, Dunedin. Sir,— General Post Office, Wellington, 6th May, 1913. In reference to your letter of the 28th ultimo, forwarding copy of a circular (No. 229) from the Marconi International Marine Communication Company (Limited), notifying the introduction of "' ocean letters," I bog to inform you that this Department has no objection to radio-stations on your vessels licensed by this Dominion receivingjand sending "ocean letters" in accordance with the arrangement made by the Marconi Company. I have, &c, W. R. Morris, Secretary. The Secretary, Union Steam Ship Company of New Zealand (Limited), Dunedin. [Acknowledged,|lothjMay,|l9l3.]

No. 134. The Hon. the Prime Minister to the High Commissioner. Sir,— Prime Minister's Office, Wellington, 17th May, 1.913. I have the honour to advert to the system of ocean letters introduced by the Marconi International Marine Communication Company (Limited), of which no doubt you are already informed. The ocean letter is a radio-telegram which may be sent from a ship to another ship going in the opposite direction, for delivery by registered post from the first port of call. The tariff for the first thirty words is ss. 6d., including postage and registration fee, and for each word thereafter up to a maximum of 100 words, Id. At present the messages are exchanged only between ship stations controlled by the Marconi Company. I shall be glad if you will inquire whether this system of ocean letters has been reported to the International Office and to the General Post Office, London ; and, if so, what action (if any) is proposed to be taken to extend the benefits of the system beyond the present restricted area over which they can be enjoyed. I have, &c, • |H""|lL Heaton Rhodes, '■' Forjthe Prime Minister. The Hon. T. Mackenzie, Commissioner for NewjZealand, London.

No. 135. The Master, S.s. " Niwaru," Lyttelton, to the Hon. the Postmaster-General, Wellington. Sir,— - S.s. " Niwaru," Lyttelton, 15th June, 1.9.1,3. Enclosed please find a letter from my Marconi operator, also a copy of a radio-telegram [not printed] I handed in at 3.15 a.m. yesterday. I feel sure it is unnecessary to point out the possibilities had this been a distress call, as you can easily imagine them; and I would thank you to make inquiries as to the time the operator on duty in r*- the Wellington Station received this message, and why, if, as he says, he received it earlier, he did not then inform us that the land line was closed until 8 a.m. I have, &c, The Hon. the Postmaster-General, Wellington. S. W. Hayter, Master. [P. & T. 71/37.] '

No. 136. The Secretary, General Post Office, Wellington, to the Master, S.s. " Niwaru," Wellington. Sir,— General Post Office, Wellington, 27th June, 1913. With reference to your letter of the 15th instant regarding a wireless " call " from your steamer on the morning of the 14th instant, I beg to inform you that the operator on watch at the Radio-Wellington Station on the morning in question heard a call about 3.35 a.m., but owing to electrical disturbances could not distinguish the call of the boat signalling, and called the " Pyramus " and the " Paparoa " to ascertain whether it was either of those steamers that had called. This is probably when your operator heard the Wellington Station working to the boats named. At 4.10 a.m. Radio-Wellington received a call from the " Niwaru " (the signals being much stronger than formerly), and immediately responded, but received no reply. At 4.13 Radio-Wellington called the " Niwaru," but met with no response. At about 4.16 a.m. H.M.S. " New Zealand," who heard RadioWellington respond to the call from the " Niwaru " and also heard the call to the " Niwaru," advised that he would keep a lookout for any further call from the " Niwaru." At 5.54 a.m. Radio-Wellington again heard the " Niwaru " calling, and immediately responded, but unfortunately at this time Radio-Auckland jammed the signals, and effective speech with the " Niwaru " could not be obtained, until 6.16 a.m., when the message was received. You are in error in supposing that the message had been previously received. It is regretted that the Radio-Wellington operator was not aware that telephone communication could have been obtained with either Christchurch or Lyttelton as desired, a circuit being joined up after the close of telegraph business. I have, &c, W. R. Morris. Captain S. W. Hayter, s.s. " Niwaru," care of W. M. Bannatyne and Co., Wellington.

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No. 137. The Secretary, Lyttelton Harbour Board, Christchurch, to the Hon. the Minister of Marine, Wellington. Sie, — Lyttelton Harbour Board, Christchurch, 3rd July, 1913. I am instructed to inform you that, at its meeting held on the 2nd instant, the Board passed the following resolution : " That this Board is strongly of opinion that direct wireless communication should be established with Lyttelton." While bringing this resolution under your notice I am instructed to point out that in the event of a serious accident occurring to a steamship anywhere between the Kaikouras and Timaru, Lyttelton would be the natural port from which assistance would be expected, and where the Board keeps a powerful sea-going tug-boat always under steam. The late slight mishap to the, s.s. " Maori," on which occasion a blade was cast off one of her propellers, when the information, after having been communicated through the " Niwaru," did not reach Lyttelton until after the arrival there of the " Maori " herself, has drawn attention to the dangers of the present state of affairs ; and it is felt that, in view of the recent regulation compelling passengersteamers to carry wireless installations, it is necessary that a port of the importance of Lyttelton should be equipped as a wireless station. I have, &c, Cyrus J. C. Williams, The Hon. the Minister of Marine, Wellington. Secretary, Treasurer, and Engineer. LP. Se T. 71/48.1

No. 138. The Hon. the Postmaster-General, Wellington, to the Hon. the Minister of Marine, Wellington. (Memorandum.) Postmaster-General's Office, Wellington, I.2th August, 1913. In reference to the letter to you of the 3rd ultimo from the Secretary, Lyttelton Harbour Board, requesting that a wireless station be established at Lyttelton, I beg to inform you that there are strong technical objections to a station being opened at Lyttelton, and that in any case one is not required. Lyttelton is well within the daylight range of the Wellington station. Under normal conditions in the daytime the Wellington station can wo,rk with vessels in Otago Harbour ; and at night it has a much wider range. Stations at Lyttelton and Wellington would at night interfere with each other ; and because of such interference practically only one could work at a time. As an indication of how interference affects working, it may be stated that even stations in Australia may interfere with signals being received in New Zealand from ships at a distance, and prevent, their being deciphered. In a short time wireless stations will be open near Bluff and at Awanui, near Doubtless Bay. Any ship on the coast midway between Bluff and Wellington or Wellington and Auckland will not be more than about two hundred miles from one of these stations, and may be closer ; and under normal conditions ship and coast stations easily cover a distance of two hundred miles at night. When abnormal conditions arise any wireless station may be out of action even at short range. The s.s. " Niwaru " incident recently was such a case. It happened that the ship operator left his post when the conditions began to improve and his signals were being read. In cases of danger a special signal, " SOS," is used ; and this signal would be answered by an} r ship or coast station hearing it. Had the mishap to the s.s. " Maori," which was advised to the " Niwaru," been dangerous, the call "**' SOS " would have received attention, as the, warship " New Zealand " was listening, and other vessels were in the Dominion waters. In such an extreme case the wireless operator at Wellington would have arranged for Christchurch to be communicated with by ordinary telegraph. R. Heaton Rhodes, Postmaster-General. The Hon. F. M. B. Fisher, Wellington.

No. 139. The High Commissioner to the Hon. the Prime Minister. Westminster Chambers, 13 Victoria Street, London S.W.. Sir,— 22nd August, 1913. I have the honour to acknowledge the receipt of your letter of the 17th May last, and in reply to state that I at once addressed communications to the Colonial Office and the General Post Office with reference thereto. I annex copies of both these letters, also copy of the reply from the General Post Office upon the inquiry you desired should be made, and so soon as I obtain any information on the, subject through the Colonial Office from the International Office it shall at once be transmitted to you. I have, &c, C. Wray Palliser, The Hon. the Prime Minister, Wellington. For the High Commissioner.

Enclosure 1 in No. 139. The Secretary to the High Commissioner, to the Secretary, General Post Office, London. Sir,— 13 Victoria Street, London S.W., 3rd July 1913. I am directed by the High Commissioner to inform you that he has received a letter from his Government with reference to the system of ocean letters introduced by the Marconi International

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Marine Communication Company (Limited). It is pointed out that the ocean letter is a radio-telegram, which may be sent from a ship to another ship going in th j opposite direction, for delivery by registered post from the first port of call, the tariff for the first thirty words being ss. 6d., including postage and registration fee, and for each word thereafter, up to a maximum of 100 words, Id. At present the messages are exchanged only between ship stations controlled by the Marconi Company. If this system of ocean letters has been reported to you, the High Commissioner will be glad to learn what action (if any) is proposed to be taken to extend the benefits of the system beyond the present restricted area over which they can be enjoyed, so that he may transmit the information to the New Zealand Government. I have, &c, C. Wray Palliser, The Secretary, General Post Office, London E.C. Secretary to the Department.

Enclosure 2 in No. 139. The Secretary to the High Commissioner, to tho Under-Secretary of State, Colonial Office. Sir,— 13 Victoria Street, London S.W., 4th July, 1913. I am directed by the High Commissioner to inform you that he has received a letter from the New Zealand Government with reference to the system of ocean letters introduced by the Marconi International Marine Communication. Company (Limited), asking if the system in question has been reported to the International Office and to the General Post Office, London; and, if so, what action (if any) is proposed to be taken to extend the benefits of the system beyond the present restricted area over which they can be enjoyed. I enclose herein copy of letter addressed to the Secretary, General Post Office, inquiring for particulars so far as that Department is concerned, and the High Commissioner would be obliged if you could kindly ascertain and furnish any information from the International Office that will enable him to reply to his Government. T have, <fcc, C. Wray Palliser, Secretary to the Department. The Under-Secretary of State, Colonial Office.

Enclosure 3 in No. 139. The Secretary, General Post Office, London, to the High Commissioner. Sir, — • General Post Office, London, 20th August, 1913. In reply to your letter of the 3rd ultimo concerning the system of " ocean letters " which has been introduced by the Marconi International Marine Communication Company, I am directed by the Postmaster-General to inform you that the system was introduced in January last under his authority. It was already in operation on certain foreign ships, and the Postmaster-General would have no objection to its extension to British ships whose wireless installations are controlled by other companies. As, however, the charges are less than those authorized by the international regulations, any proposals >.> tor the extension of the system should originate with the shipowners or wireless companies concerned. The conditions under which the system is operated on British ships are as stated in your letter, but there are further conditions as follows :— (I.) That the messages shall not be transmitted when either of the ships concerned is within range of a coast station ; (2.) That only one ship-to-ship transmission is allowed ; and (3.) That radio-telegrams accepted under the provisions of the International Convention shall not be delayed. I have, &c, E. Crabb, The, High Commissioner for New Zealand. For the Secretary.

No. 140. The Right Hon. the Secretary of State for the Colonies to His Excellency the Governor. My Lord, — Downing Street, 27th August, 1913. I have the honour to transmit to Your Excellency, for the information of your Ministers, a copy of a letter from the General Post Office furnishing particulars of a system of " ocean letters " which the Marconi International Marine Communication Company (Limited) were authorized by the Postmaster-General in January last to introduce. 2. As regards the extension of the system to British ships whose wireless installations are controlled by companies other than the Marconi International Marine Communication Company, the Postmaster-General has pointed out that as the charges to be made by that company are less than those authorized by the international regulations any proposals for the extension of the system should originate with the shipowners or wireless companies concerned. I have, dec, L. Harcourt. Governor His Excellency the Right Hon. the Earl of Liverpool, K.C.M.G., M.V.0., &c.

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Enclosure in No. 140. The Secretary, General Post Office, London, to the Under-Secretary of State, Colonial Office Sir, — General Post Office, London, 20th August, 1913. With reference to your letter of the Bth ultimo [not printed] enclosing a copy of a letter from the High Commissioner for New Zealand asking for information as to the system of " ocean letters " introduced by the Marconi International Marine Communication Company (Limited), I am directed by the Postmaster-General to state, for the information of the Secretary of State for the Colonies, that the Postmaster-General authorized the company in January last to introduce the ocean-letter system under the following conditions : — (1.) That the messages should not be transmitted when either of the ships concerned was within range of a coast station : (2.) That they should only be exchanged between ships proceeding in opposite directions: (3.) That only one ship-to-ship transmission should be allowed : (4.) That radio-telegrams accepted under the provisions of the International Convention should not be delayed. The rates which the company were authorized to charge for ocean letters were ss. 6d. for the first thirty words, including postage and registration fee, and Id. for each word over thirty up to a maximum of 100 words. A similar arrangement was already in operation on certain German ships when the Marconi Company applied to the Postmaster-General for his authority to introduce the system ; and the Post-master-General would have no objection to its adoption on British ships whose wireless installations are controlled by other companies. As the Secretary of State is aware, provision is made in the regulations of the new Radio-telegraph Convention, which have just come into force, for the exchange between ships of radio-telegrams to be posted at a port of call of the receiving ship ; and, in the absence of any special arrangement such as that referred to above, the ship charges for radio-telegrams exchanged under the new regulations will in practically every case be Bd. a word (4d. a word for each of the two ships), a rate of charge which, with the addition of the charge for postage (2|d.), will be higher for every message containing more than seven words than under the ocean-letter system introduced by the Marconi Company. I have, &c, E. Crabb, The Under-Secretary of State, Colonial Office. For the Secretary.

No. 141. The Hon. the Postmaster-General, Wellington, to the Hon. the Minister of Marine, Wellington. (Memorandum.) Postmaster-General's Office, Wellington, Bth September, 1913. Provision is made for telephonic communication between Wellington and Christchurch when the telegraph-offices are closed. If required in the case of an urgent call, the Harbourmaster at Lyttelton can be communicated with by telephone from Christchurch at any time of the day or night. .j. The Hon. the Minister of Marine, Wellington. R. Heaton Rhodes.

No. 142. The Secretary, Lyttelton Harbour Board, Christchurch, to the Hon. the Minister of Marine, Wellington. Sir, — Lyttelton Harbour Board, Christchurch, 2nd October, 1913. I am instructed to acknowledge receipt of yours of the 12th ultimo [not printed] in reference to the question of wireless communication with Lyttelton, which came before the Board at its meeting on the Ist instant, and to thank you for the information conveyed therein. I was, however, further instructed to say that, while recognizing from your statement that it is possible to communicate wireless messages for Lyttelton, received at Wellington, to the port for which they are intended, there is no indication that such messages will as a matter of course be so communicated immediately on their receipt. Indeed, it appears from the late case of the mishap of the " Maori " that it may depend on the judgment of the officer in charge of the wireless station, or the telegraph-office, or the telephone-office, as the case may be, whether such wireless messages shall be passed on immediately or kept until the telegraph-office opens next morning. In the case of the " Maori" before referred to, the master of that vessel considered the information of sufficient importance to communicate to the " Niwaru," and the master of that vessel also considered it of sufficient importance to pass it on, while some officer in Wellington appears to have decided that it was not of sufficient importance to pass it on to Lyttelton, although it now appears that this could have been done. The Board, expressed the hope that such instructions would be issued that all wireless messages for Lyttelton would be passed on to that port immediately. I have, &c, Cyrus J. C. Williams, The Hon. the Minister of Marine, Marine Department, Wellington. Secretary.

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No. 143. The Hon. the Postmaster-General, Wellington, to the Hon. the Minister of Marine, Wellington. (Memorandum.) Postmaster-General's Office, Wellington, 14-th October, 1913. Instructions have been issued that if urgent calls for Lyttelton are received from ships at the Wellington wireless station when the telegraph-offices at Wellington and Christchurch are closed they arc to be transmitted by telephone to Christchurch, thence by telephone to the Harbourmaster at Lyttelton. The Harbourmaster can be reached by telephone from Christchurch at any time during the day or night. In addition three persons in Wellington will be communicated with by telephone in the case of the Union Company being concerned, and two others in the case of any other company being concerned. It should now be practically impossible for any failure to occur in respect of any such call. The Hon. the Minister of Marine, Wellington. R. Heaton Rhodes.

No. 144. The Secretary, General Post Office, Wellington, to the Superintendent, Telegraph Office, Christchurch. (Memorandum.) General Post Office, Wellington, 24th October, 191.3. Instructions have been issued that if urgent calls fer Lyttelton are received from ships at the Wellington wireless station when the telegraph-offices at Wellington and Christchurch are (dosed they are to be transmitted by telephone to Christchurch. If not already done, please give instructions to your officers that on receipt of the calls the information is to be immediately sent by telephone to the Harbourmaster at Lyttelton. W. R. Morris, Secretary. The Superintendent, Telegraph Office, Christchurch.

No. 145. The Secretary, General Post Office, Wellington, to the Superintendent, Telegraph Office, Wellington. (Memorandum.) General Post Office, Wellington, 24-th October, 1913. Instructions have been issued that if urgent calls for Lyttelton are received from ships at the Wellington wireless station when the telegraph-offices at Wellington and Christchurch 'are closed they are to be transmitted by telephone to Christchurch, thence by telephone to the Harbourmaster at Lyttelton. If such calls are received at Wellington from a vessel of the Union Steam Ship Company during office hours a telephone message is to be sent to the Union Company's office, Wellington, and, if after office hours, to Mr. Kennedy, Mr. Horton, and Captain Stott, telephones 1029, 998, and 1785 respectively. If such calls are received from steamers other than those of the Union Company during office hours a telephone message is to be sent to the Harbourmaster, No. 1313, and after office hours to the Harbourmaster, No. 481. The Marine Department is also to be notified of the distress call of any ship during office hours. Please give the necessary instructions to your officers if this has not already been done. The Superintendent, Telegraph Office, Wellington. W. R. Morris, Secretary.

No. 146. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 19th December, 1913. Proposed with your concurrence to institute scheme for transmission Christmas and New Year greetings from and to Australia and New Zealand by wireless. Greetings to consist of not more than four words plus name and address of addressee and name of sender. Messages to be handed in at any post and telegraph office in Australia or New Zealand on or before 23rd instant in case of Christmas, and 28th in case of New Year greetings. Charges to be 45., apportioned thus : Is. each Australian land line, Australian radio, New Zealand land line, New Zealand radio. Stereotyped form greeting to be indicated by code letter, viz. : X to represent " The compliments of the season," Y to represent " Christmas greetings," Zto represent " New Year's greetings," Kindly replv early. [P. & T. 71/103.] '

No. 147. The Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. (Telegram.) Wellington, 22nd December, 1913. As special arrangement agree exchange wireless Christmas and New Year greetings telegrams. Officers instructed accordingly.

No. 148. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 22nd December, 1913. Instructions issued here re season's greetings wireless.

7—F. 8.

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No. 149. The Telegraph Engineer, Auckland, to the Chief Telegraph Engineer, General Post Office, Wellington. (Memorandum.) Telegraph Engineer's Office, Auckland, 14th January, 1914. I have received the attached letter from the Campbell and Ehrenfried Company (Limited) with reference to the transmission to that firm, as Lloyd's agents, of any information concerning maritime casualties, derelicts, or overdue vessels. They are particularly anxious for an early reply. Will you please direct whether such information acquired at our wireless station could be forwarded, and upon what arrangements ? [ R. M. Baird, The Chief Telegraph Engineer, General Post Office, Wellington. Telegraph Engineer. P. & T. 71/90.]

Enclosure in No. 149. The Campbell and Ehrenfried Company (Limited), Auckland, to the Telegraph Engineer, Auckland. Sir,— Auckland, 12th Januaiy, 1914. As Lloyd's agents we are in receipt of a communication from the secretary of Lloyd's, which is as follows : " I shall be glad if you will be good enough to endeavour to make arrangements with the authority controlling the operation of the station for the immediate transmission to your office of any information coming to the knowledge of the operatois concerning maritime casualties, derelicts, overdue vessels, &c." We shall be glad to hear if your regulations peimit making the above arrangements, and, if so, what conditions you would require to make in regard to payment of the above. We propose writing to the secretary of Lloyd's by the outgoing Vancouver mail, and shall be glad to have your reply as soon as possible. We have, &c, Campbell and Ehrenfried Company (Limited) : The Telegraph Engineer, Auckland. Edward W. Rowllings, Secretary.

No. 150. The Assistant Secretary, General. Post Office, Wellington, to the New Zealand Inspector, Amalgamated Wireless (Australasia), Limited, Wellington. Sir, — General Post Office, Wellington, 15th January, 1914. 1 beg to inform you that in May last this Department informed the Union Steam Ship Company that it had no objection to radio-stations on the company's vessels licensed by this Dominion receiving and sending " ocean letters " in accordance with the arrangement made by the Marconi Company. It is hoped the conditions set out in the Marconi Company's circular No. 229 [see No. 132] will be strictly observed in the case of ships in New Zealand wateis. it is important that, in order to avoid " blocking," such messages shall not be transmitted when either of the ships concerned is in ..range of a coast station. I have, &c, F. V. Waters, Assistant Secretary. J. Gill, Esq., New Zealand Inspector, Amalgamated Wireless (Australasia), Limited, Australasia Chambers, Wellington. [P. & T. 71/19.] ___^^^^_^^^___>„

No. 151. The Telegraph Engineer, Auckland, to the Chief Telegraph Engineer, General Post Office, Wellington. (Memorandum.) Telegiaph Engineer's Office, Auokland, Ist May, 1914. With further reference to my memorandum of the 14th January last, I have now received the following reply from the Campbell and Ehrenfried Company : — " Confirming ouis of the 25th March [not printed], with reference to maritime intelligence fiom the wireless station at Auckland, we have now received a communication from the secretary, Lloyd's, which is as follows : ' Regarding the transmission to your office of maritime intelligence fiom the wireless station at Auckland, I.shall be obliged if you will be so good as to infoim the Telegraph Engineer of the Auckland District, in reply to his letter enclosed with your communication, that it is provided by Article XLV, paragraph 4, of the Service Regulations appended to the International Telegjaph Convention of 1912 that Administrations shall facilitate communication to marine-infoimation agencies of information respecting wrecks and casualties at sea or presenting a general interest for navigation ; and that it is suggested that information of this nature should be forwarded to-your office in older that the same may be telegraphed to Lloyd's. The Telegiaph Engineer should also he informed that this information is required at Lloyd's in the general inteiests of the maritime and insurance communities, and with a view to the prevention of fraud on underwriters.' " We shall be glad to hear that you will be able to make the necessary arrangements as indicated in the above." Will you please put me in a position to reply. R. M. Baird, Telegraph Engineer. The Chief Telegraph Engineer, General Post Office, Wellington. [P. &T. 71/90.]

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No. 152. The Assistant Secretary, General Post Office, Wellington, to Lloyd's Agents in New Zealand, and Shipowners and Steamship Companies. Gentlemen, — General Post Office, Wellington, 21st May, 1914. I have the honour to inform you that under Article XLV (4) of the Detailed Seivice Regulations appended to the International Radio-telegraph Convention, Administrations are required to facilitate the communication, to the marine-infoimation agencies which they may appoint, of the information respecting wrecks and casualties at sea or presenting a general interest for navigation, which the coast stations can communicate regularly ; and that the Postmaster-General has appointed Lloyd's agencies and the steamship companies in New Zealand as the " maiine-infoi mation agencies " referred to. The Department will not collect any infoimation from private sources for the infoimation of the agencies. It will announce the fact of hearing distress calls, or communicate other infoimation concerning casualties- —such, that is to say, as comes to the knowledge of wireless stations in the course of business apart from private messages, or is given the Department for communication. A fee will not be charged for the service for the present. I have, &c, F. V. Waters, Assistant Secretary. The Campbell and Ehrenfried Company (Limited), Lloyd's agents, Auckland; and also to Lloyd's agents at Christchurch, Dunedin, Gisborne, Invercargill, Napier, Nelson, New Plymouth, Timaru, and Wellington. The Union Steam Ship Company of New Zealand (Limited), Dunedin, and eighteen other steam ship companies in New Zealand.

No. 153. The Amalgamated Wireless [(Australasia), Limited, Sydney, to the Acting-Secretary, General Post Office, Wellington. Amalgamated Wireless (Australasia), Limited, Sir,— Wireless House, 97 Clarence Street, Sydney, 18th July, 1914. It has come to our notice that messages handed in on board ships the evening before their arrival in port are often not delivered until after the passengeis have gone ashore next morning. To obviate this trouble and enable us to assure the public that their messages will be delivered shortly after transmission, we suggest for your kind consideration that radio-telegrams received from ship stations, in the address of which a telephone-number is included, be, transmitted by telephone to theaddressee while the exchange is open. The oiiginal message to be deliveied by post, bearing the endorsement " Telephoned to addressee." The telephone-numler could te included in the addiess in the, following manner: "Smith Limited, Wellington; telephone 155." The additional words in the address would, of course, be taxed, but in con sidei ation of this and for the sake of convenient charging we suggest that no fees be levied for telephoning. The regulations for transmission of radio telegians by telephone do not deal with this subject, and we shall be glad if you will kindly favour us with your view on this matter. We have, &c, W. H. Payne, The Acting-Secretary, General Post Office, Wellington. Traffic Superintendent. |P. & T. 71/133.]

No. .154. The Acting - Secretary, [ General Post Office, Wellington, to the Amalgamated Wireless (Australasia), Limited, Sydney. Gentlemen, — General Post Office, Wellington, 10th August, 1914. In reference to your letter of the 18th ultimo, suggesting that radio-telegrams received from ship stations, in the address of which a telephone-number is included, be transmitted to the addressee by telephone while the exchange is open, I beg to infoim you that this Department agrees to perform the service and not to make any charge therefor. I have, &c, J. C. Williamson, For Acting-Secretary. The Amalgamated Wireless (Australasia), Limited, " Wireless House," 97 Clarence Street, Sydney. [Acknowledged, 21st August, 1914.]

No. 155. The Deputy Postmaster-General, Sydney, to the Acting-Secretary, General Post Office, Wellington. (Telegram.) Sydney, 7th September, 1914. Wireless station has been opened at Noumea. [P. & T. 71/84.]

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No. 156. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Sir, — Postmaster-General's Department, Melbourne, sth December, 1914. With reference to )'our letter of the 23rd December last [not printed, but see No. 147] relative to the transmission of special-rate Christmas and New Year greeting messages, I have the honour to inform you that in view of the present international crisis it has been decided to make no arrangements for that class of traffic this year. I have, &c, The Secretary, General Post Office, Wellington. Justinian Oxenham, Secretary. [Acknowledged, 19th December, 1914.] [P. & T. 71/103.] '

No. 157. The Consul for France, Auckland, to the Secretary, General Post Office, Wellington. Sir, — Consulat de France en Nouvelle-Zelande, Auckland, 17th December, 1914. I am advised by the Governor of New Caledonia that the French Resident of Port Vila, New Hebrides, has a receiving plant for wireless telegraphy, but that it is not sufficiently strong to record in daytime the Press messages coming from Auckland. The New Hebrides having no other means to be posted with war news,- the Governor has requested me to apply to you and ask if it would not be possible to arrange that the messages be forwarded in the evening between 8 and 9 o'clock, in order that they can be received without difficulty. He would consider it a favour which would be of valuable service to the English residents as well as to the French colonists of New Hebrides. The attempts made thus far in order to communicate by radiograms between New Caledonia and Port Vila are constantly disturbed by telluric influences, and have given only poor results. I should be obliged to you to consider the above-mentioned question, and to let me know what answer can be made to the Governor's request. With anticipated thanks, I have, &c, For the French Consul, The Secretary, General Post Office. Wellington. E. Halk, Secretary. [P. &. T. 71/143(1).]

No. 158. The Consul for France, Auckland, to the Hon. the Postmaster-General, Wellington. Sir, — Consulat de France en Nouvelle-Zelande, Auckland, sth January, 191.5. On the 17th of last December I had the honour to apply to your Department, on behalf of the Governor of New Caledonia, in order to ascertain whether radiograms from Awanui to Port Vila (New Hebrides) could be sent in the evening instead of during the daytime —that is to say, between 8 and 9 o'clock—so that they could be received without difficulty. The Governor's request in this case being rather urgent, I should feel much indebted to you to send me your reply at your earliest convenience. With anticipated thanks, I have, &c, •.* J. Rigoreau, Consul for France. The Hon. R. Heaton Rhodes, Minister of Posts and Telegraphs, Wellington.

No. 159. The Hon. the Postmaster-General, Wellington, to the Consul for France, Auckland. Sir, — Postmaster-General's Office, Wellington, 16th January, 1915. I have the honour to refer to your letters of the 17th ultimo and the sth instant on the subject of the request of the Governor of New Caledonia for the despatch of Press news from the Awanui Radiostation to Port Vila, New Hebrides, between 8 and 9 p.m. My Department's experience in sending wireless messages to Samoa shows that the work is more satisfactorily disposed of by being despatched as soon after 6.30 p.m. as possible, it being found that atmospheric conditions are less troublesome at about that time than later in the night. It is not unusual for much difficulty to be experienced about 8.30 p.m. and later. There are, of course, occasions when the atmospherics do not seriously hamper working during the night hours. In view of the difficulties experienced, the Department does not propose to despatch the news to Samoa later than at present. It is suggested that Port Vila might be able to receive satisfactorily tho messages despatched from Awanui to Samoa at about 6.30 p.m. if an increased spread of " aerial " were erected and tho height of the " aerial " increased. But if it is found that the difficulty does not then disappear this Department is agreeable to despatch Press news especially to Port Vila between 8 and 9 p.m. conditionally on its being paid for the service at the rate of 10s. for one hundred words or fraction thereof in a single message, and 2s. 6d. for each additional twenty-five words or fraction thereof in a message exceeding one hundred words. I have, &c, ft. Heaton Rhodes, The Consul for France, Auckland. Postmaster-General. [Acknowledged, 18th January, 1915.]

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