POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1925-26.

Appendix to the Journals of the House of Representatives, 1926 Session I, F-01

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ANNUAL REPORT OF THE POST AND TELEGRAPH DEPARTMENT FOR THE YEAR 1925-26.

CONTENTS. PAGK P^GE Receipts and Payments .. .. 1,9 Relief Date-stamp .. .. .. 14 Telephone Services .. .. .. 1 Cinematograph-films .. .. .. 14 Automatic - telephone - exchange Instal- Post-office Burglary .. .. .. 14 lations .. .. .. .. 2 Postal Convention .. .. .. 14 Cook Strait Telephone-cable .. .. 2 Departmental Motor-vehicles .. .. 15 Buildings .. .. .. .. 2,11 Workshops .. .. .. 15 Establishment of New Postal District .. 3,10 Stores Branch .. .. .. 15 Marine Post-office .. .. .. 3 Work for Electoral Department .. 17 Overseas Mails .. .. .. 3,13 Articles delivered .. .. .. 17 Inland Mail-services .. .. .. 3, 13 Average Number of Letters posted per Auckland - Wellington " Daylight Li- Unit of Population .. .. .. 17 mited" Express .. .. .. 3 Number of Post-offices in Dominion .. 17 Rural Deliveries .. .. 4, 12, 13 Postal Packets posted in Dominion during Parcel-post .. .. .. .. 4,21 Years 1890, 1900, 1910, 1920, and " Insured Box" Service .. ..4,21 1925 .. .. .. .. 18 Cheap Postage-rate for Library Books .. 4 Post Office Savings-bank .. .. 5,19 Post-marking Machines .. .. 4 Undeliverable Postal Packets .. .. 20 Inspection of Post-offices .. .. 4 Prohibited Postal Packets .. .. 20 Money-orders .. .. .. 5 Register of Newspapers and Magazines .. 20 Savings-bank .. .. .. 5,19 Postage-stamps .. .. .. 20 Inland Letter-telegrams .. .. 5,22 Stamp-vending Machines .. .. 20 Reduced Cable Rates .. .. .. 5 Discount-stamps .. .. .. 2] Intercolonial Night Letter-telegrams .. 5, 24 Insured Parcel-post Service to Canada Radio-telephone Broadcasting .. .. 5 and Fiji .. .. .. 21 International Radio-telegraph Conference 6, 29 Cash-on-delivery Service to Fiji .. 21 Establishment of Stores Branch at Auck- Postal Notes.. .. .. .. 21 land .. .. .. .. 6 British Postal Orders .. .. .. 21 Motor Transport .. .. .. 6 Telegraph and Toll Services .. .. 21 Motor Registration .. .. .. 6, 14 Direct Telegraph Circuits between Athletic Work performed for other Departments.. 6 Park, Wellington, and Eden Park, AuckGeneral Election, 1925 .. .. 7 land .. .. .. 21 Outbreaks of Fire .. .. • .. 7, 14 Telephoning of Weather-forecast Tele-Wellington-Napier Train Accident .. 7 grams to Exchange Subscribers .. 22 Visit of United States Fleet .. .. 7 Press Telegrams .. .. .. 22 New Zealand and South Seas Inter- Press Telegram Rates .. .. 22 national Exhibition.. .. ..8,16 Miscellaneous (Telegraphs) .. .. 22 Death of Right Hon. W. F. Massey .. 8 Telegraph and Toll Traffic .. .. 22 Postmaster - General: Relinquishing of Ocean Cable Services .. .. 23 Office .. .. .. .. 8 Pacific Cable Board .. .. .. 23 Details of Revenue, &c. .. .. 8 International Telegraph Conference .. 23 Staff .. • • • • 10 Cable Rates .. .. .. 23 Appeal Board .. .. 10 Daily Letter Cable Messages .. .. 23 Reprint of Staff Regulations .. .. 10 Cable Traffic.. .. .. 24 Audit of Accounts .. .. .. 10 Telegraph and Toll-line Systems .. 24 Transfer of Offices .. .. .. 11 Inter-Island Toll Service .. .. 26 Departmental Correspondence Classes .. 11 Effect of Extension of High-tension Lines 26 Examinations .. .. . ■ 11 Machine-printing Telegraphs .. .. 26 Rural Mails .. .. .. 4,12,13 Maintenance of Lines .. .. .. 26 " Householder" Circulars .. .. 13 Poles and Wire .. .. ..26 Missing Postal Packets . .. 13 New Zealand Submarine Cables .. 27

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CONTENTS—continued. PAGE PAGE Inter-Island Submarine Telephone-cable.. 27 Automatic Telephone Exchanges .. 34 Cross-section of Cook Strait Telephone- Air-conditioning Plants for Automatic cable (Shore End) .. .. .. 28 Exchanges.. .. .. 36 Wireless-equipment Extension, &c. . . 28 Interphone Installations .. .. 36 Wireless Installations on Ships .. 29 Automatic Private Branch Exchanges .. 36 Reception of Signals from British High- Information Bureaux .. .. .. 38 power Station at Rugby .. .. 29 Public Call Offices (Coin-in-slot) .. 38 Imperial Wireless Services .. .. 29 Laboratory .. .. .. 38 Listening Service .. .. .. 30 Aurora Australis .. .. .. 30 (Interleaved is a plan of the Tuatapere new Wireless Communication with Antarctica 30 post-office building ; also illustrations of the Elimination of Interference to " Listeners- new post-office buildings at Eastbourne, Tuatain" .. .. .. ..30 pere, and Paeroa ; sections of the departWireless at Exhibition .. .. 30 mental Court at the Dunedin Exhibition ; a Private Radio-stations and Radio-dealers' section of the switching-apparatus at the Licenses .. .. .. 30 Central Telephone Exchange, Wellington; and Mount Etako Plantation .. .. 30 the laying of the Cook Strait telephone-cable ; Wireless Traffic .. .. 30 together with graphs indicating departmental Radio Broadcasting .. .. .. 30 revenue and expenditure.) Telephone-exchange Service .. .. 31 Extension of Telephone-exchange System 31 Telephone Statistics .. .. 32 APPENDIX. Graph showing the Telephone-exchange Wire in Underground and Aerial Cables, Designation of Offices changed .. .. 39 and Open Aerial Wire, respectively, Cable Business .. .. 39 each Year since 1920 .. .. 34 Radio-telegrams .. .. 39 (For Index to Tables see page iii, and for Detailed Index see pages iv, v, and vi.)

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TABLES. No. I.—Money-orders issued and payable— tagu (a.) Issued in the Dominion ... ... ... ... ... ... 40 (b.) Drawn on the Dominion ... ... ... ... ... ... 40 No. 2.—Number and Value of Postal Notes sold ... ... ... ... ... 41 No. 3.—Number and Amount of Transactions at the Money-order Offices and Post Office Savings-banks in New Zealand ... ... ... ... 42 No. 4. —General Statement of Post Office Savings-bank Business for Year ended 31st March, 1926 ... ... ... ... ... ... ... 43 No. 5. —General Statement of Post Office Savings-bank Business from 1867 to 1926 ... 44 No. 6.—Post Office Savings-bank Receipts and Payments for Year ended 31st March, 1926 ... ... ... ... ... ... ... ... 45 No. 7. —Number of Post Office Savings-bank Accounts open ... ... ... 46 No. B.—Estimated Number of Letters and Letter-cards, Post-cards, Book-packets, Newspapers, and Parcels dealt with ... ... ... ... 47 No. 9.—Registered Articles ... ... * ~. ... ... ... ... 48 No. 10.—Parcel-post ... ... ... ... ... ... ... ... 48 No. 11.—Comparative Table showing the Progress of the Telegraph Department and Revenue received for each Class of Message ... ... ... ... 49 No. 12.—Revenue derived from Toll Calls and Paid Telegrams in respective Postal Districts ... ... ... ... ... ... ... 50

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DETAILED INDEX. A. PAGE F. PAGE Appeal Board .. .. .. 10 Pee f or operator's certificate .. .. 29 Articles delivered .. .. .. 17 Financial operations, statement of .. .. 9 Audit of Accounts .. .. ... .. 10 Fire, outbreaks of .. .. .. ..7,14 Aurora Australis .. .. .. 30 Football matches: Telegraphing results .. .. 21 Automatic-telephone-exchange installations, &c. 2, 34-37 G, B. General Election . . .. .. .. 7 Government motor service .. .. .. 6 Book-packets posted and delivered .. .. 47 Graphs British postal orders sold, &c. .. .. .. 21 Extension of rural-delivery service .. .. 12 Buildings .. .. .. .. ..2,11 Postal packets posted .. .. .. 18 Business done for other Departments .. .. 6 Telephone-exchange wire underground, &c. .. 34 The Post Office Savings-bank.. .. .. 19 C. Cable messages — H. Daily letter .. .. .. ..23,24 Health of staff .. .. .. ..10 Deferred .. .. .. .. 24 «Householder" circulars .. .. .. 13 Intercolonial night letter-telegram system .. 5, 24 ~ traffic .. .. .. . .24,39 International traffic .. .. .. • ■ 24,39 Number .. .. .. .. • .24,39 Pacific and Marconi route 23 Inland letter-telegrams ..5,22 p regg 24 Inland mail-services (see Mail-services ). Reduced rates 1! " " '.'.5,23 Inspection of post-offices 4 Value . ..39 Insured box service .. .. ..4,21 Week-end '' '' ■ °24 Intercolonial night-letter telegram .. .. 5,24 Cables- '' International Telegraph Conference .. .. 23 Eastern Extension (see " Eastern Extension cable "). New Zealand .. .. .. 27 Pacific (see " Pacific Cable "). L. Cable services .. .. .. 23 Laboratory .. .. .. .. 38 Cinematograph films . . .. .. 14 Leave, sick .. .. .. .. 10 Circulars, " Householder" .. .. 13 Letter of credit .. .. .. .. 5 Classes, departmental correspondence .. .. 11 Letters and letter-cards-Cook Strait telephone cable .. .. .. 2,26 Dead, dealt with .. .. .. 20 Correspondence prohibited .. .. .. 20 proportion to number delivered.. .. 20 Customs parcels .. .. .. .. 21 Imperfectly or insufficiently addressed .. 20 Missing .. .. .. .. 13 Posted and delivered .. .. 47 j. Posted : Average number per head of population 17 ~ unaddressed .. .. 20 oo oa ~ with previously used stamps .. . . 20 Daily letter-telegram 23,24 Registered, unclaimed .. .. .. 20 Date-Stamp, Relief 14 With libellous addresses 20 Dead-letters 20 Letter . telegrams 5,22 Death of Mr. i assey .. .. .. .. Library books : Cheap postage-rate .. .. 4 Deferred cable message 24 «< Lim 4 d - express 3 Departmental Correspondence Classes .. ..11 1 Designation of offices changed .. .. 39 Discount-stamps .. .. .. .. 21 M. Machine-printing telegraphs .. .. .. 26 E. Magazines registered .. .. .. 20 ~ removed from register .. .. 20 Eastern Extension cable— Mail-services— Number and percentage of messages forwarded Inland .. .. .. .. .. 3, 13 and received .. .. .. 24 Overseas .. .. .. .. .. 3, 13 Press cablegrams .. .. .. 24 Rural . . .. .. .. .. 4, 13 Share of business .. .. .. 24 Marine post-office .. .. .. .. 3 Electoral Department, work for ..... 17 Missing postal packets .. .. . . 13 Engineers' stock, audit of . . .. . . 10 Money-order— Establishment of new postal district .. 1,3,10 Exchange with other countries .. .. 40 Establishment of Stores Branch at Auckland .. 6 Issued and paid .. .. .. .. 5,40 Examinations .. .. •• •• 11 Number of transactions .. .. ..42 Exchanges, telephone (see " Telephone exchanges "). Motor registration .. .. .. .. 6, 14 Exhibition, New Zealand and South Seas .. 8, 16 ~ service, Government .. .. .. 6 Expenditure of Department .. .. 1,9 ~ transport .. .. .. .. 6, 15

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N - s - Newspapers— pags paqb Posted and delivered .. .. 47 Salaries .. .. ~ .. .. 9 Registered .. .. .. .. 20 San Francisco mail-service .. .. 13 Removed from register .. .. 20 Savings-bank— Returned to publishers .. .. 20 Accounts open, &c. .. .. .. .. 46 New Zealand and South Se»s Exhibition .. 8, 16 Balances at credit of depositors .. .. 19 Cost of management .. .. 43 Deposits : Amount, &c. .. .. 5, 43, 44, 45 Excess of deposits over withdrawals .. 5, 42, 43 Interest .. .. .. .. 43,44,45 Liabilities and assets .. ~ . 45 Ocean cable services (see "Cable messages," Offices open, &c. .. .. .. ..43 44 Pacific cable, &c.). Profit and Loss Account .. .. 45 Officers Receipts and payments .. .. . 45 Absence oa sick-leave, average .. .. 10 Reserve Fund Account .. .. .. 45 Death of .. .. . r 10 Securities .. .. .. .. 45 Health .. .. . . .. 10 Transactions .. .. .. 543 44 Number .. .. .. .. ..10 Withdrawals .. .. .. 543 44'45 Offices (see under " Post," " Telegraph," &c.). Slot telephones .. .. .. .. '38 ~ designation changed .. .. 39 Staff „ transfer of .. .. .. ..11 Casual .. .. .. .. ..10 Overseas mails .. .. .. .. 3, 13 Health .. .. .. .. 10 Number .. .. .. .. .. 10 Personal .. .. .. .. .. 10 p Stamps: New issues, &c. .. .. .. 20 Stamp-vending machines .. .. 20 Pacific cable — Stores Branch .. .. .. .. 6, 15 Board .. .. .. .. 23 Submarine cables, New Zealand .. .. 27 Number and percentage of messages forwarded and received .. .. .. .. 24 Press telegrams .. .. .. 24 Share of business .. .. .. 24 T. Packets alleged to have been posted and not delivered 13 Telegrams— Palmerston North : New postal district .. 1, 3, 10 Daily letter-telegram .. ~ .. 23 Parcels— Government: Number and value .. .. 49,50 Cash-on-delivery system with Fiji .. .. 4, 21 Increase in number .. .. .. 22 Customs parcels .. .. .. .. 21 Inland letter .. .. .. 5, 22,49 Delivered .. .. .. .. .. 17,47 Of all codes .. .. .. . .22, 50 Despatched overseas .. .. 48 Ordinary: Number and value .. .. 22,49 Foreign (inwards), declared value of, and Customs Per 100 letters .. .. .. 23 duty collected on .. .. .. .. 21 Press .. .. .. .. 22,24,49 Foreign (outwards), declared value of .. .. 21 Urgent .. .. .. .. ..22,49 Insured systems with Canada and Fiji .. 4, 21 Weather forecast .. .. .. 22 Posted and delivered .. .. 47 Telegraph— Received from overseas .. .. 48 Amount of business .. .. .. 22,49, 50 Postage-stamp-vending machines .. .. 20 Lines— Postage-stamps .. .. .. 20 Length of, erected, &c. .. .. 26 Postal convention .. .. .. 14 Maintenance of .. .. 26 Postal District, Palmerston North .. 1,3, 10 Poles and wire .. .. .. 26 Postal notes — Superimposed .. .. .. 27 Commission .. .. .. .. 21 Telegraph and toll traffic .. .. 22 Sold .. .. .. .. ..21,41 Machine printing .. .. .. ..26 Postal orders, British, sold .. .. 21 Offices open, &c. .. .. .. 22 Postal packets posted .. .. .. 18 Press rates .. .. .. 22 Postal packets undeliverable .. .. 20 Receipts and payments .. .. .. 9,49 Post-cards — Results of football matches .. .. .. 21 Delivered .. .. .. .. .. 17, 47 Revenue .. .. .. .. 9, 22, 49, 50 Posted .. .. .. .. 47 System, machine-printing .. .. 26 Post-marking machines .. .. .. 4 Telegraph Conference .. .. .. 23 Postmaster-General: Relinquishing of office .. 8 Telegraph and toll-line systems .. .. 24 Post Office— Effect of extensions of high-tension lines .. 26 Fires .. .. .. .. .. 7, 14 Extensions .. .. .. 24 Burglary .. .. .. .. 14 Inter-Island toll service .. .. .. 26 Post-offices — Telephone— Closed .. .. .. .. 17 Cable, Cook Strait .. .. .. .. 2,27 Designation changed .. .. .. 39 Exchanges— Established .. .. .. 17 Air-conditioning plants .. .. 36 Inspection .. .. .. .. .. 4 Attendance .. .. .. 32 Number .. .. .. .. 17 Automatic .. .. .. 2, 34-37 Prohibited postal packets .. .. .. 20 Automatic private branch .. .. 36 Public call offices .. .. .. 38 Connections: Proportion to population .. 2,32 Extension of system .. .. .. 31 Information bureaux .. .. 38 Interphone installations .. .. 36 R- Line, length of, erected, &c. .. 2, 32, 33, 34 New .. .. .. .. ..1,31 Radio broadcasting .. .. .. .. 5,30 Opened .. .. .. .. 31 Radio communications — Party-line circuits.. .. .. ..32,33 Business transacted .. .. .. 39 Plant .. .. .. .. .. 33 Government stations .. .. .. .. Revenue .. .. .. 1, 9,49 Press rate on telegrams exchanged with island Service .. .. .. .. .. 1, 31 stations .. .. .. .. .. .. Statistics .. .. .. 32 Private stations .. .. .. 30 Subscribers' connections .. .. .. 1,33 Radio-dealers'licenses .. .. ..30 Toll traffic: Line available.. .. .. 27 Radio-stations, private .. .. 30 Metallic circuits erected .. .. 31 Radio Telegraph Conference .. .. .. 6, 29 Slot .. .. .. .. 38 Receipts and payments .. .. .. 1, 9 Statistics .. .. .. .. 32 Registered articles .. .. .. .. 20,48 Toll circuits, new .. .. .. 25 Revenue of Department .. .. ..1,9 „ communications .. .. ..22,49 Rural mail-services .. .. .. 4, 12, 13 Train accidents .. .. .. .. 7

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U. PAGE W. PAGE Wireless— Undelivered postal packets .. .. 20 At Exhibition .. .. .. .30 United States fleet .. .. .. .. 7 Broadcasting .. .. •. .. 5, 30 Communication with Antarctica .. .. 30 Conference .. .. •. . ■ 6, 29 Equipment: Extension, &c. .. .. . . 28 Imperial services .. .. .. 29 Installations on ships .. .. 29 Licenses, amateur .. .. .. 30 Listening service .. .. .. 30 V. Mount Etako plantation .. .. 30 Reception from Rugby .. .. ■. 29 Vancouver mail-service .. .. .. 13 Ship operator's certificate .. .. .. 29 Visit of United States fleet .. .. .. 7 Telegraphy.. .. .. .. ..28-31 Work performed for other Departments .. .. 6, 7 Workshops . . .. .. .. 15

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1926. NEW ZEALAND.

POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1925-26.

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

To His Excellency the Right Honourable Charles Fergusson, Baronet; General on the Retired List and in the Reserve of Officers of His Majesty's Army ; Doctor of Laws ; Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George ; Knight Commander of the Most Honourable Order of the Bath ; Companion of the Distinguished Service Order ; Member of the Royal Victorian Order. May it please Your Excellency,— I have the honour to submit to Your Excellency the report of the Post and Telegraph Department for the year ended 31st March, 1926. RECEIPTS AND PAYMENTS. The business of the Department has reached the highest point on record. The excess of receipts over expenditure was £690,840. The income from postages exceeded that of the previous year by £89,214, while the telephone receipts show an increase of £113,065. The abnormal increase in telephone revenue is due to two causes: firstly, to a change in the method of collection of telephone subscriptions; and, secondly, to the creation of the new postal district of Palmerston North. Had the new district not been created, the telephone subscriptions in the Palmerston North district would nob have been collected until April. With the creation of the new district the telephone subscriptions became due on the Ist January. The expenditure has been very closely watched during the. year, and, where possible, economies have been effected. The result is decidedly satisfactory, the expenditure for the year being £6,701 less than that for the previous year. That there has been a decrease in expenditure despite the marked increase in business indicates the extent to which business methods are applied in one of the largest organizations in the Government service. TELEPHONE SERVICES. The remarkable expansion of the telephone-exchange system, which was referred to in last year's report, continues in evidence. To provide for the 13,368 new subscribers joined up during the year extensive construction work was necessary. Last year mention was made of the fact that the 13,304 new connections made during the year ended the 31st March, 1925, constituted a record. It will be seen that the figures for the year just past constitute a fresh record. Perhaps the most popular feature of the present rating-system is its operation in suburban and rural areas, where the reasonable charges for residential telephone connections encourage

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residents to avail themselves of the increasingly popular public utility. Although forcible argument may be adduced by the business community against a ratingsystem designed to promote development in suburban and rural areas, it cannot be denied that, in a country such as New Zealand where town and country interests are so closely related, the widespread use of the telephone in country districts considerably enhances the value of the telephone to the commercial community and thus promotes development generally. It may be mentioned here that the number of exchanges in existence in the Dominion is 341, and the number of miles of wire in use is 402,433. There are now in New Zealand 94"40 telephones per thousand of population. A very full statement of the operation and development of the telephone system is given at pages 31-38. AUTOMATIC TELEPHONE-EXCHANGE INSTALLATIONS. On the 31st March, 1926, the 'automatic telephone exchanges in operation throughout the Dominion provided service for 32,583 subscribers, or over 30 per cent, of the total. The new automatic-exchange system introduced at Auckland and mentioned in last year's report is giving satisfaction to telephone-users, and public appreciation is freely expressed. Notwithstanding that the total number of subscribers in the Auckland area has very largely increased, complaints received during the year in respect of faulty service show a marked decrease compared with those received in previous years. The Wellington Central Automatic Exchange was cut into service in September, 1925, when the remainder of the manually operated subscribers' stations (some 4,600) and a number of waiting subscribers were given automatic telephone service. The automatic system is now in full operation in the Wellington metropolitan exchange area. The telephone system in Christchurch is at present a mixed one, being partly automatic and partly manual. The Christchurch Exchange will ultimately operate on full automatic principles. Satisfactory progress is being made with the work of completing the automatic installation in Dunedin. The Dunedin Exchange will shortly operate on full automatic principles. A detailed statement regarding the automatic telephone exchange appears at pages 34-37. COOK STRAIT TELEPHONE CABLE. The completion on the 26th March, 1926, of the laying of the Cook Strait telephone cable marked another milestone in the progress of telephonic communication in New Zealand. The cable is destined to become an important factor in fostering the development of long-distance telephony in the Dominion, and in promoting a closer relationship, both commercial and social, between the North and South Islands. At present inter-island service is limited to communication between Wellington on the one hand and Nelson, Picton, Seddon, and Blenheim on the other. Ultimately, however, the range of communication will be very largely extended. An account of the laying of the cable, which is of interest, appears at pages 27-28. BUILDINGS. The ever-present need for increased accommodation for the conduct of the Department's business at different places throughout the country serves to reveal in a most unmistakable manner the healthy and steady growth of the Dominion. The difficulties which are at times encountered in providing additional accommodation in existing buildings show all too clearly how little the designers of the original buildings anticipated the growth that would take place in the business of the Department. The rapidity of growth could not possibly have been foreseen. Needless to say, it is the present policy when preparing plans for new buildings to make provision for future additions which, when necessary, will be able to be made with much less trouble than is now the case. The Christchurch post-office building may be cited as one which, owing to the expansion of the city, required extensive alterations, especially in that portion of the building in which the public transacts its business. With the additional accommodation now provided the Christchurch post-office building should meet requirements for a number of years.

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A list of new buildings and of alterations to existing buildings which it is considered to be required in the next decade has been carefully compiled, and the work will be carried out strictly in order of urgency. It is expected this year to commence extensive alterations to the chief-post-office building at Palmerston North ; and it is hoped also to begin work on a new building at Auckland for the accommodation of stores and workshops. Towards the end of the financial year 1926-27 it is hoped to commence operations on the erection of a new post and telegraph office at Dunedin, in which building provision will be made for the housing of other Government Departments. An endeavour is being made also to build a new post and telegraph office at Napier ; and preliminary action is being taken in anticipation of funds becoming available. ESTABLISHMENT OF NEW POSTAL DISTRICT. On the Ist July, 1925, a new postal district was established with Palmerston North as the chief post-office. The new district embraces portions of the former Wellington, Wanganui, and Napier Postal Districts. MARINE POST-OFFICE. The system of sorting mails on the mail-steamers (" Aorangi," " Niagara," " Makura," and " Tahiti ") travelling between New Zealand and Vancouver and between New Zealand and San Francisco, which was reintroduced in 1923, is being maintained. The expenditure involved is fully justified by the saving in time (twelve to twenty-four hours) that is effected in the delivery of correspondence from the Home-land and foreign parts. Not only is the delivery of inward correspondence expedited, but the time is extended up to which outward correspondence may be posted to connect with a steamer. Correspondence posted too late to be included in the closed mails for abroad made up by New Zealand territorial offices of exchange is forwarded unsorted to the Mail Agent, who while the voyage is in progress makes up closed mails for the places concerned in the same way as is done by a territorial office of exchange. The Mail Agents and assistants have continued worthily to represent the Department abroad. OVERSEAS MAILS. Owing to the severe winter conditions and to the restricted passenger traffic the fast transatlantic steamers of the Cunard line were withdrawn from service from December, 1925. The non-running of the Cunard steamers resulted in an extension of about three days in the time of transmission of mails from New Zealand to Great Britain. Ordinarily, mails from New Zealand despatched via San Francisco make a close connection at New York with steamers of the Cunard line due to sail on Wednesdays. The usual Wednesday sailings of the Cunard steamers were reverted to in April, 1926. INLAND MAIL-SERVICES. The various services continue to be performed satisfactorily, but keen competition is affecting detrimentally the passenger traffic of certain contractors. With the advent on a number of main routes of the passenger-service car the travelling public has ceased to use the mail-service car to the extent that was formerly the case. This is readily understood when the mail-service car's journey with its numerous stops is compared with the non-stop journey of the passenger-service car. The public demands rapid transport, and the passenger-service car is able to supply this better than the mail-service car. Roads in some districts are in a shocking condition, so much so that in a few instances it has been necessary to assist contractors financially to enable them to carry on. It is hoped, however, that with the extension of the " permanent " roading-system such assistance will not be required ; in fact, owing to reduced running-costs the Department hopes to benefit by the receipt of lower tenders. AUCKLAND-WELLINGTON "DAYLIGHT LIMITED" EXPRESS. The inauguration in November, 1925, of the " Daylight Limited" express train between Wellington and Auckland enabled the despatch of letter-mails between the two centres and between other important post-offices in the North Island to be expedited.

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RURAL DELIVERIES. Applications for the extension of rural delivery facilities continue to be received. Many areas formerly served by small post-offices are now served by rural deliveries. For the purpose of meeting a demand for a larger-sized rural box which will give adequate protection both to bulky post parcels and to other goods the Department has introduced a rural box measuring 24 in. by 15 in. by 12 in. Nowadays the rural contractor frequently carries the settlers' bread, meat, groceries, &c., and a box of these dimensions will serve the dual purpose of affording protection to private parcels as well as to postal packets. PARCEL-POST. In October, 1925, a system of exchange of insured parcels was inaugurated between New Zealand and Canada. During the year arrangements were concluded for the inauguration of an insuredparcel service between New Zealand and Fiji. The new service will operate from the Ist July, 1926. The Department has agreed also to the introduction of a cash-on-delivery system for parcels exchanged between New Zealand and Fiji. " INSURED BOX " SERVICE. From the Ist December, 1925, an " insured box" service was inaugurated between New Zealand and Great Britain. Fuller particulars of the service will be found at page 21. CHEAP POSTAGE-RATE FOR LIBRARY BOOKS. A cheap postage-rate for library books was introduced on the Ist January, 1926. Books exchanged between libraries, between libraries and their subscribers, between recognized book clubs, or between recognized book clubs and their subscribers, may now be sent within New Zealand at the rate of 2d. for the first pound and Id. for each additional pound or fraction of a pound up to 5 lb. This cheap rate should prove a boon to the country reader. POSTMARKIN G-MACHINES. In view of the very satisfactory results obtained from the two " Universal" postmarking-machines installed in 1924 at Auckland and Wellington, four additional machines of the same make and type were obtained and installed at Auckland, Christchurch, Dunedin, and Wellington. The machines give very distinct and neat impressions, and they are more economical to operate than the other types of machine in use in the service. Use continues to be made of postmarking-machines for advertising purposes. During the year the postmarkers at the four centres and at Te Aroha carried slogans advertising departmental facilities, New Zealand's value as a tourist resort, and the importance of buying New-Zealand-made goods. The machines at other offices are available for use as required in connection with advertisements of a national or semi-national character. INSPECTION OF POST-OFFICES. In 1925, 1,361 visits of inspection were made to post-offices, an audit of the accounts being carried out at each inspection. On no occasion was any serious deficiency in the official cash disclosed. A conference of Inspectors was held at Wellington in November, 1925, and in order that there might be uniformity in procedure the opportunity was taken to instruct Inspectors fully in their duties.

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MONEY-ORDERS. Money-order business continues to show a steady increase. The orders issued last year exceeded those of the previous year in number by approximately 25,000, and in value by approximately £285,000. There has been a marked increase also in the number and amount of money-orders issued on Great Britain and Ireland. This is due, no doubt, to the substantial reduction in the rate of commission which was made from the Ist April, 1924. On the Ist April, 1925, arrangements were made for a direct exchange for money-orders between New Zealand and the Irish Free State. SAVINGS-BANK. The withdrawals for the year exceeded the deposits by £768,885. A comparison with business done during the year 1924-25 indicates that there has been a slight improvement. The amount at credit of depositors at the 31st March last was £47,911,322, an increase for the year of £962,694. The fact that the total amount standing at the credit of all open accounts has increased by such a large amount affords a clear indication of continued confidence in the people's bank. On the Ist December, 1925, a system of savings-bank letters of credit was inaugurated. Under this scheme it is possible for a depositor to obtain a letter of credit for an amount up to £50 and to withdraw the amount as required at any savings-bank office in the Dominion. There is no doubt that this facility will, as it becomes better known to the travelling public, be availed of to a large extent. The popularity of the system may be judged from the fact that up to the 31st March, 1926, no less that 1,895 letters of credit, of a total value of £48,287, had been issued. INLAND LETTER-TELEGRAMS. Inland letter-telegrams have now become an important part of the Department's business. Not only do they afford a cheap public facility, but they enable telegraph circuits to be employed at times when they would otherwise be idle. REDUCED CABLE RATES. The year marked certain reductions in cable rates by both the Pacific and Eastern routes. The rates via Eastern for full rate and deferred cable messages to any part of the United States of America were reduced to the level of those chargeable for messages sent via Pacific. Reductions were made also in Press rates between New Zealand and Great Britain, and between New Zealand and Canada. INTERCOLONIAL NIGHT LETTER-TELEGRAMS. The popularity of the intercolonial night letter-telegram is indeed remarkable. The service was introduced in 1924. In March, 1925, 6,635 night letter-telegrams were exchanged with the Commonwealth of Australia, while in March, 1926, 10,275 such messages were exchanged. RADIO TELEPHONE BROADCASTING. The company referred to in last year's report as being in the process of formation has been registered as the Radio Broadcasting Company of New Zealand (Limited). It has undertaken to provide radio broadcasting service under the conditions laid down in the Post and Telegraph Amendment Act, 1924, and in the Broadcasting Regulations, 1925. Under the agreement the company is required to maintain during a period of five years an efficient broadcasting service. It is expected that the company will be in a position to operate the new 500-watt broadcasting stations at Auckland and Christchurch very shortly. There is no doubt that when the new stations at the four centres are in operation the New Zealand broadcasting service will be distinctly improved. In the meantime a very good service is being maintained from the existing stations.

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INTERNATIONAL RADIO-TELEGRAPH CONFERENCE. It is proposed to hold a Radio-telegraph Conference next year at Washington, D.C., U.S.A. As the last Conference was held in 1912, and since then wireless telegraphy has progressed by leaps and bounds, the Conference will afford a valuable opportunity for some very interesting discussions. It is intended that the Dominion shall be represented at the Conference. ESTABLISHMENT OF STORES BRANCH AT AUCKLAND. Owing partly to lack of accommodation at other centres the greater part of the Department's stores is housed in Wellington ; but, as the accommodation available in Wellington is limited and the principle of distributing stores direct to the port nearest the point of use could with advantage be developed, the establishment of branch stores is highly desirable. During the year a branch of the Post and Telegraph Stores was opened at Auckland. The new branch controls the issue of stores in the Auckland, Hamilton, and Thames Postal Districts. Its establishment will facilitate the extensions of the system of direct shipment, and will reduce expenditure of both time and money. The system of distributing from Wellington is expensive on account of freight and handling charges, and when material is required urgently it frequently causes a waste of valuable time. Apart altogether from the foregoing aspects of the question, however, it is necessary to consider the chaos which would arise in the Department and the loss of service to the public that would result if a serious fire occurred in the Wellington Stores. From this point of view alone it is highly desirable that the system of establishing branch stores be extended where possible. MOTOR TRANSPORT. The Department's fleet of motor-vehicles continued to grow during the year. At the four centres garage fleets were improved by the addition of sedans. In accordance with Government policy, vehicles of English manufacture were purchased for use on services on which they could be economically employed. My Department continues to purchase motor-vehicles on behalf of other Government Departments. MOTOR-REGISTRATION. The manner in which the registration of motor-vehicles has been carried out has proved eminently satisfactory. It can safely be said that the Department with its widespread ramifications has enabled the owners of motor-vehicles to comply with the requirements of the Motor-vehicles Act, 1924, with the minimum of inconvenience. For handling this class of business the Post Office, unquestionably, possesses greater facilities than any other Government Department. Taking into consideration the volume of work involved in compiling and maintaining the register there have been remarkably few complaints. WORK PERFORMED FOR OTHER DEPARTMENTS. The Post Office in New Zealand is probably unique in its ramifications. There are few, if any, Departments of State that do not at some time or other utilize my Department's organization for work quite apart from the handling of mail-matter and telegrams. The principal assistance rendered other Departments is in the collection of revenue and in the disbursement of amounts due to the public. My Department does not aim at making a profit out of the work. The charge for conducting the various transactions is fixed at a rate calculated merely to meet the cost of carrying out the service. The distribution of the population has rendered necessary the establishment of over two thousand post-offices, of which nearly nine hundred are money-order offices. The agencies of the Post Office are thus sufficiently numerous to permit of the efficient conduct of General Government business. In fact, in a young country such as New Zealand it is difficult to conceive a way of handling General Government business better than the way it is handled through the Post Office.

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A glance at the Department's periodical internal accounts reveals what a variety of transactions is provided for. In making any addition to the already great variety of transactions simplicity of system is aimed at, so that officers are able, with facility, to pass from one class of transaction to another. GENERAL ELECTION, 1925. The general election, which was held on the 4th November, 1925, threw a good deal of additional work on the shoulders of the Department. Appreciative references to the work done by the Engineering, Telegraph, and Telephone Branches appeared in newspapers throughout the country. The Postal Branch also responded splendidly to the calls made upon it in connection with the extra volume of mail-matter posted, both before and immediately after the election. The Chief Electoral Officer expressed his appreciation of the excellent manner in which my Department carried out the duties which fell to its share. OUTBREAKS OF FIRE. The Department was somewhat unfortunate during the year in the number of fires that occurred in post-office buildings. Three fires occurred in non-permanent post-offices conducted in buildings owned by private persons, and one occurred in a building the property of the Department. The departmental building that was destroyed was the post-office building at Lyell, in the Westport Postal District. The building was very old, however, and was of little value. On the 25th February, 1926, while on the way from Auckland to Wellington laden with mails, a railway "Z " wagon attached to a mixed train took fire. As the train was approaching Waiouru it was noticed that smoke was rising from a roofventilator of the wagon. An attempt to obtain water from the engine-tender was not successful. Speed was therefore accelerated to Waiouru (about half a mile distant), where the wagon was run alongside the railway-tanks and a large volume of water was poured into it through holes cut in one of the doors and in the roof. The water escaped from the wagon too quickly, however, and the flames gained rapidly. A door of the wagon was broken open, and a few bags of mail were salvaged before the men were driven off by the flames. The wagon quickly became a seething mass of flame and was pushed into the station-yard, where it and its contents were entirely destroyed. Eleven bags of mails (five intact and six charred), together with a quantity of "loose" letters, were saved. The mails lost comprised 172 bags of newspapers and 48 bags of parcels from Australian offices, and 76 bags of parcels from Great Britain, all for Wellington and southern offices. The subsequent inquiry was not successful in accounting for the outbreak. As the mail-matter destroyed was lost from a cause beyond control, liability for the loss was not assumed by the Department. WELLINGTON-NAPIER TRAIN ACCIDENT. On the 22nd September, 1925, the Wellington-Napier mail-train was derailed near Opapa, and after derailment it took fire. As the result of the accident several persons lost their lives, and many were injured. The mails were in the postal car at the rear of the train, and, with the help of Natives, the Mail Agent succeeded in running the car back some 50 yards out of the fire-danger zone. The accident occurred in a cutting, and the strewn wreckage and the intense heat of the burning carriages rendered it impossible to transfer the mails to the relief train. The mails were therefore taken on to Napier by motor-lorry. The Mail Agent was not injured. VISIT OF UNITED STATES FLEET. In connection with the visit of the United States Fleet in August, 1925, the Department established temporary post-offices in Harbour Board buildings on the Auckland and Wellington wharves. Owing partly to the fact that each ship had on board its own post-office, and, in the case of Auckland, owing also to the temporary office being close to the Auckland Chief Post-office, the temporary offices were not patronized to the extent that was anticipated. However, they proved a convenience to many of the visitors not only in the character of post-offices, but also in the guise

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of information bureaux. Each post-office was furnished with a number of telephones, which were placed at the disposal of the officers and men of the Fleet, without charge. In honour of the visit of the Fleet the chief post-office buildings at Auckland and Christchurch, and the old post-office building and a portion of the telegraph-office building at Dunedin, were suitably flagged and illuminated. The General Post Office building, Wellington, was suitably flagged. The Government's action in placing at the disposal of officers of the Fleet departmental motor-cars at the four centres was much appreciated by the visitors. NEW ZEALAND AND SOUTH SEAS INTERNATIONAL EXHIBITION. At the New Zealand and South Seas International Exhibition, held at Dunedin from the 17th November, 1925, to the Ist May, 1926, the Department conducted a model post and telegraph office which was greatly patronized by visitors to the Exhibition. The post-office was so situated that the public, without entering, could view the methods of working. Thus, in addition to its practical functions, the office served as a postal exhibit. Posting-boxes and slot telephones were placed in various parts of the Exhibition grounds ; and a delivery of correspondence to the various stallholders and exhibitors was made daily. A special series of postagestamps (denominations |d., Id., and 4d.) commemorative of the Exhibition was issued for sale at the Exhibition post-office. The Departmental Court, as distinct from the post and telegraph office, gave an interesting display of telegraph and telephone apparatus, both past and present. Further information regarding the Exhibition post-office will be found at pages 16-17. DEATH OF RIGHT HON. W. F. MASSEY. During the year the Department found itself under the regrettable necessity of attending to transport arrangements for the funeral of the late Prime Minister, the Right Hon. William Ferguson Massey. The Public Service garage fleet of motorvehicles was fully utilized, and a great number of private cars also were hired in this connection. In addition, cars were placed at the disposal of the Government by certain business firms and private people, without charge. Mr. Massey died on Sunday, the 10th May, 1925, and the funeral took place on the following Thursday. From the Monday to Wednesday, inclusive, following Mr. Massey's death, as many officers as could be spared were released from duty in the General Post Office, and the day of the funeral was observed as a day of mourning, the General Post Office and all post-offices throughout the Dominion being closed. POSTMASTER-GENERAL : RELINQUISHING OF OFFICE. The Hon. Sir James Parr, who assumed charge of the Department on the Ist June, 1925, relinquished control on the 22nd April, 1926, and in consequence the report herein is a record of the transactions undertaken principally during his tenure of office. From the Ist April, 1925, to the 31st May, 1925, the Department was in the charge of the Right Hon. J. G. Coates. DETAILS OF REVENUE, ETC. Matters of detail with, reference to the financial operations and business of the Department will be found at length in the statement and tables which follow. I have the honour to be, Your Excellency's most obedient servant, W. NOSWORTHY, Postmaster- General. General Post Office, Wellington, 15th July, 1926.

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POST AND TELEGRAPH REVENUE for Years 1901 to 1926 in Graphic Form

POST AND TELEGRAPH EXPENDITURE for Years 1901 to 1926 in Graphic Form

ANNUAL REVENUE. Postal, Telegraph (including Tolls), and Telephone Branches. For twelve years ended 31st March, 1926.

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STATEMENT OF FINANCIAL OPERATIONS AND BUSINESS OF THE DEPARTMENT FOR THE YEAR ENDED 31 st MARCH, 1926.

RECEIPTS AND PAYMENTS. The receipts and payments of the Department for the financial year 1925-26 are shown in the following table : —

Receipts and Payments for the Years 1881-82, 1891-92, 1901-2, 1911-12, and following Years.

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Item. Postal. Telegraph. Total. Receipts. £ s. d. £ s. d. £ s. d Postages .. .. .. .. •• •• 1,077,600 15 2£ .. 1,077,600 15 21 Money-order and postal-note commission .. ■. 48,447 4 8 .. 48.447 4 8 Money-order commission received from foreign offices .. 933 7 7 .. 933 7 7 Private box and bag rents and rural delivery fees .. 24,546 11 11 .. 24,546 11 11 Miscellaneous receipts .. .. .. .. 168,748 15 10 17,158 3 10 185,906 19 8 Paid telegrams .. .. , • • ■ • • • • 424,642 1 424,642 1 j Paid tolls .. .. .. .. •• •• •• 358,036 12 11J 358,036 12 11* Telephone exchange rentals and miscellaneous .. .. .. 980,282 17 3f 980.282 17 3i Totals .. .. ■■ 1,320,276 15 2£ 1,780,119 15 10 10 Payments. £ s. d. £ s. d. £ s. d. Salaries .. .. .. •• •• 614,628 8 1 903,841 4 8 1,518,469 12 9 Conveyance of ocean mails .. .. .. •• 69,237 1 11 .. 69,237 1 11 Conveyance of inland mails .. .. .. .. 144,779 10 1 .. 144,779 10 1 Conveyance of mails by rail.. .. .. 103,247 13 11 .. 103,247 13 11 Money-order commission credited to foreign offices .. 2,765 84 .. 2,765 84 Maintenance of telegraph and telephone lines .. .. .. 194,748 12 10 194,748 12 10 Motor services and workshops .. .. •• 27,956 14 6 25,566 9 10 53,523 4 4 Miscellaneous .. .. •• •• 164,687 16 5 158,097 5 8 322,785 2 1 1,127,302 13 3 1,282,253 13 0 2,409,556 6 3 Balance of receipts over payments .. .. .. 192,974 1 11J 497,866 2 7J 690,840 4 7 Totals .. .. .. 1,320,276 15 2k 1,780,119 15 74 3,100,396 10 10

„ „ i,, vrn .. f , Balance of Keceipts Excess of Payments iear - lteceipts. Payments. oyer Payments. over Receipts. f £ £ £ 1881-1882 .. .. .. .. 234,529 233,291 1,238 1891-1892 .. .. .. .. 320,058 268,343 51,715 1901-1902 .. .. .. .. 488,573 465,756 22,817 1911-1912 .. .. •• 1,087,710 988,911 98,799 19 2-1913 .. .. 1,167,826 1,069,272 98,554 1913-1914 .. .. •• •• 1,269,921 1,173,314 96,607 1914-1915 .. . • •• 1,359,059 1,246,850 112,209 1915-1916 . .. .. •• 1,695,757 1,296,522 399,235 1916-1917 .. .. •• •• 1,809,317 1,370,810 438,507 1917-1918 .. .. •• 1,837,260 1,489,446 347,814 1918-1919 .. .. •• •• 1,972,539 1,702,048 270,491 1919-1920 .. .. .. .. 2,106,995 1,944,161 162,834 1920-1921 .. .. .. .. 2,590,441 2,591,786 .. 1,345 1921-1922 .. •• •• 2,811,535 2,451,571 359,964 1922-1923 .. •• 2,687,768 2,114,994 572,774 1923-1924 .. 2,688,954 2,120,584 568,370 1924-1925 .. .. .. •• 2,889,450 2,4*6,257 473,193 1925-1926 .. .. .. 3,100,396 2,409,556 690,840

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STAFF. Comparative Return of Persons employed in the Post and Telegraph Department on the Ist April, 1925 and 1926. The total number of persons employed on the Ist April, 1925 and 1926, was as under: — Ist April, Ist April, Permanent staff— 1925. 1926. Administrative Division .. .. .. .. 4 4 Clerical and Engineering Divisions .. .. .. 3,321 3,426 General Division .. .. .. .. .. 4,559 4,752 7,884 8,182 Temporary staff .. .. .. .. .. 306 199 Casual staff .. .. .. .. .. .. 2,194 1,025 Totals .. .. .. .. .. 10,384 9,406 Non-permanent staff — Country Postmasters and Telephonists .. .. 2,031 1,988 Postmasters who are Railway officers .. .. 99 102 Totals .. .. .. .. .. 12,514 11,496 Health op Permanent Staff. The following table gives the average absence of officers on sick-leave — Number Average Absence Average Absence on Staff. per Sick Officer. for each Officer r employed. Men .. .. .. .. 7,293 9-1 3-5 Women .. .. .. .. 889 11-9 7-5 Twenty officers died during the year. Personal. Mr. E. A. Shrimpton, M.1.E.E., Chief Telegraph Engineer, retired on the 31st March, 1926, after completing over forty-three years' service. He was succeeded by Mr. A. Gibbs, M.1.E.E., Deputy Chief Telegraph Engineer. Mr. R. D. Kelly, Chief Inspector, retired on the 6th November, 1925, after completing over fortytwo years' service. He was succeeded by Mr. M. B. Esson, Senior Inspector. Mr. F. T. R. Johnson, Controller of Savings-banks and Accounts, retired on the 22nd October, 1925, after completing over forty years' service. He was succeeded by Mr. H. D. Edwards, Assistant Controller of Savings-banks and Accounts. APPEAL BOARD. The Post and Telegraph Appeal Board, under the chairmanship of Mr. E. C. Cutten, S.M., sat on two occasions during the year. One hundred and six appeals were dealt with, of which one was allowed by the Board. REPRINT OF STAFF REGULATIONS. During the year the Post and Telegraph Staff Regulations were revised and reprinted, and copies were distributed to all officers, with the exception of message-boys and message-girls. AUDIT OF ACCOUNTS. From the Ist July, 1925, responsibility for the audit of accounts at chief post-offices, ledger offices, and offices of District Telegraph Engineers and Telegraph Engineers reverted to the Controller of Accounts, and the auditing will in future be carried out by officers under his control. Owing to the introduction of commercial accounts, the system of auditing was extended to include the branch accounts kept in connection with the several Engineers' districts, Stores Branches, garages, and workshops throughout the Dominion. This audit is undertaken by qualified accountants assisted by juniors who are students in accountancy. ESTABLISHMENT OF NEW POSTAL DISTRICT. On the Ist July, 1925, a new postal district was established with Palmerston North as the chief post-office. By the change the Department is placed in a more advantageous position in regard to the control of the post and telegraph offices in the new district, and it is also enabled to afford a more efficient and expeditious service to the users of those offices. At the commencement- the Palmerston North District embraced 100 offices. The district comprises a portion of the Napier Postal District, a small portion of the Wanganui Postal District,

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and a large portion of the Wellington Postal District. Its boundaries are —North : The former boundary between the Wellington and Wanganui Postal Districts (except that Greatford and Bull's are included in the new district), and from a point on the former boundary between the Wellington and Napier Postal Districts in a straight line to the coast, taking in Matamau and Herbertville. South : From a point north of Otaki Beach, taking in Manakau, Mangahao Hydro, and Mangamaire, thence in a straight line to a point south of Rakaunui, and from there to a point midway between Aohanga and Whakataki. TRANSFER OF OFFICES. On the Ist March, 1925, the Manihiki and Rakahanga post-offices were transferred from the Auckland Postal District to the Rarotonga Postal District. DEPARTMENTAL CORRESPONDENCE CLASSES. Officers to the number of 792 enrolled for instruction in the departmental correspondence classes, and at the various examinations held during the year 86 per cent, of these students gained passes. Officers generally have profited by the facilities provided for study, and the value of the tuition given to students is reflected in almost every branch of the service by the display of increased efficiency. EXAMINATIONS. During the year 2,530 officers sat for departmental efficiency examinations, and of this number 1,415 were either wholly or partially successful. With a view to placing departmental examinations on a more satisfactory footing, and to introducing into the examination .system improvements which were considered desirable as a result of the experience gained since the inception of the present series of examinations in 1919, or which were rendered necessary in consequence of changes that have taken place during the last few years in some branches of the Department, a committee of officers was appointed in June last to inquire into and report on the working of the Department's examination system. As a result of the recommendations of the committee those examinations which were considered no longer necessary were either abolished or combined with other examinations; the scope of examinations was, in a few instances, altered ; anomalies that existed in connection with some examinations were removed ; and the frequency of a number of examinations was reduced. BUILDINGS. Extensive alterations were completed during the year in the Christchurch chief post-office building. The public portion of the office was greatly improved. With the additional accommodation now provided the Christchurch post-office building should meet requirements for a number of years. Not only in the heart of Christchurch City was an improvement effected, but a fine post-office building was erected at New Brighton, the old building being altered to serve as a residence for the Postmaster. The growing marine suburb of Eastbourne, Wellington, also was provided with a new edifice in keeping with the requirements of the district. A new post-office building has been erected at Paeroa, and at Marton one is in course of erection. The extensive alterations to the chief-post-office building, Gisborne, referred to in last year's report, are now completed. The increase in business at Darfield and Hawarden necessitated the erection of departmental buildings at those places. Formerly the work was handled at the railway-stations. It was found necessary to build garages at Cambridge, Gore, Kaikohe, Otautau, Taupo, and Waimate, and to increase the garage accommodation at Wanganui. At Kaikohe a workshop was erected in conjunction with the garage, while at Wanganui a blacksmith's shop was added to the building. Pending the erection of a suitable building at Auckland, a temporary workshop was built at Newmarket. A list of new buildings and of alterations to existing buildings which it is considered will be required in the next decade has been carefully compiled, and the work will be carried out strictly in order of urgency. While there is still much leeway to be made up in the provision of buildings the work is proceeding steadily. In addition to the buildings already mentioned, structures were erected at Ohau, Okaihau, Ruawai, Tuatapere, Waitahuna, Awakino (linesman's residence); and the Department contributed towards the cost of erecting and agreed to meet the cost of maintaining a new building at Maungatapere. Additions were made to the post-office buildings at Albany, Hanmer Springs, Hikurangi, Matata, Moray Place, Newmarket, Patetonga, Queenstown, and Raetihi. At Castlepoint a building belonging to the Marine Department and at one time used as a lookout station was removed to a suitable position, and" was fitted up as a post-office. In order to provide for future expansion additional land was purchased at Wanganui and Pahiatua. For storage purposes land was acquired at Port Ahuriri. While the buildings to be proceeded with during the coming year will be dependent upon the amount of money available, it is anticipated that the comparatively large undertaking of making

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RURAL MAILS. Increase in Number of Rural Boxholders.

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extensive alterations to the chief-post-office building, Palmerston North, will be commenced. It is hoped also to begin work on a new building at Auckland for the accommodation of stores and workshops. Alterations to the buildings at Hastings and Masterton are also contemplated to meet increased work, while provision will be made for several automatic-exchange buildings and for additions to existing automatic-exchange buildings. Plans for a new post and telegraph office at Dunedin, in which provision will be made for housing other Government Departments, are now in course of preparation, and it is hoped to commence building towards the end of the financial year 1926-27. An endeavour is also being made to build a new post and telegraph office at Napier, and preliminary action is being taken in anticipation of funds becoming available. OVERSEAS MAILS. Correspondence for Great Britain, Ireland, and the Continent of Europe continues to be forwarded by contract steamers via Vancouver and via San Francisco, except when a Vessel sailing via Panama offers a quicker despatch than the next contract steamer, or when correspondence is specially addressed for despatch by other than a contract steamer. Mails from Great Britain are received via Suez, via Vancouver, via San Francisco, and via Panama. During 1925 the average time occupied in transmission of mails from New Zealand to London was, in the case of despatches via Vancouver thirty-one days, and in the case of despatches via San Francisco twenty-nine days. From London to New Zealand the average time occupied by both routes was thirty-one days. INLAND MAIL-SERVICES. During the winter of 1925, which was exceptionally wet, and also in December, 1925, floods were responsible for temporary interruption of mail-services in various parts of the Dominion. Where possible, arrangements were made to maintain mail communication until the normal services were restored. In December the mail-service between Christchurch and Kaikoura was interrupted by floods, and some delay took place in transporting mails to places along the route. At about the same time and for the same reason temporary arrangements had to be made to carry mails to and from Blackball by foot-track, via Stillwater, a distance of eight miles. In this instance difficulty was experienced in maintaining the service. RURAL MAILS. There are now in use 14,547 rural boxes, an increase of 1,481 on the number for last year. The number of rural deliveries (including part rural deliveries) in operation at present is 365, as against 273 for 1924-25. " Householder " circulars. The revenue from this class of matter for the period Ist April, 1925, to the 31st March, 1926, was £8,798, as against £4,847 for the preceding twelve months. In last year's report mention was made of a concession rate of fd. for each packet up to 2 oz. which is payable when circulars to the number of 250,000 are posted by one sender at one time, and it was stated that the concession rate was expected to result in increased business. This expectation has been fully realized, for of the increase of £3,951 in revenue £3,746 is accounted for by circulars posted at the |d. rate. MISSING POSTAL PACKETS. During 1925, 5,670 inquiries for postal packets were lodged by members of the public. In 3,721 cases, or more than half of the total number, the packets inquired for were either traced or satisfactorily accounted for. In 1,020 cases the sender was responsible for the delay, in 1,185 cases the responsibility rested on the addressee, while in 427 cases it was found that the delay was due to failure on the part of the Post Office. In the remaining 1,089 cases inquiries disclosed either that there had been no delay or that there had been delay but that it was not possible to fix responsibility. In 1,949 inquiries no evidence of any kind could be obtained as to the disposal of the packets. This number includes packets mislaid either before posting or after delivery. It includes also misappropriations that may have taken place either inside or outside the Post Office. The actual losses amounted to -0013 per cent, of the total number of articles posted. As has been stated in previous reports, despite warning notices on posting-boxes the public continues to post in unregistered packets articles of negotiable value. From the number of inquiries lodged in connection with this class of packet, and from the number of unregistered packets containing bank-notes and other value received in the Dead Letter Office, it is evident, that the advantages of the registration system are not being availed of to the fullest extent. The registration system protects both the sender and the addressee, and, as particulars of the handling of registered packets from the time of posting until the time of delivery are recorded by the Department, it protects also Postal officers. Two recent cases of failure to register valuable packets are of sufficient interest to warrant special reference to them being made. In one case an amount of £350 in £50 bank-notes was forwarded as an unregistered packet, and in the other case a particularly flimsy envelope opened in the Dead Letter Office was found to contain a £10 bank-note. There was nothing in the envelope to indicate by whom the letter had been posted.

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% From time to time, as a result of Police Court proceedings, comment is made in the public Press regarding the number of cases of theft of moneys by public servants. In this connection it should be pointed out that on the discovery of a theft of any kind committed by a departmental officer Police Court proceedings follow automatically, but the same conditions do not obtain in the outside business community. A fair comparison would be possible only if Police Court proceedings followed automatically in the case of thefts by other than Government employees. RELIEF DATE-STAMP. In order to overcome the inconvenience occasioned when a post-office date-stamp has to be sent away to be repaired, a special relief date-stamp, suggested by an officer of the Department, has been brought into use. The stamp is fitted with movable type which can be arranged to imprint the name of any post-office. CINEMATOGRAPH-FILMS. The new regulations regarding the transmission of cinematograph-films by post, which were referred to in the last report, continue to operate satisfactorily. The regulations provide for the films to be enclosed in special fireproof containers, and the risk of carrying films by post is thus reduced to a minimum. During the year permission was given, with the acquiescence of the Chief Inspector of Explosives, for " trailer " films to be posted in tins measuring 6jin. by 2 in. " Trailer " films are, comparatively speaking, only a few feet in length, and are used to give picture audiences some idea of the principal incidents in the picture which is to form the main item of the programme for the following week. To insist on these small films being enclosed in the large fireproof containers would be somewhat of a hardship so far as the film people are concerned. POST-OFFICE FIRES. On the 24th February, 1926, a fire occurred in the Haumoana (Napier Postal District) nonpermanent post-office, which is conducted in a store building. Fortunately, the conflagation was extinguished before any great damage was done. About forty letters and circulars were partly burnt. The contents of the post-office safe were undamaged. The post-office building at Lyell (Westport Postal District) was destroyed by fire at 2 a.m. on the 16th February, 1926. The circumstances surrounding the fire were inquired into by the police, who were unable to determine the cause. The building, a structure erected in 1874, was of very little value. The building in which the Pukekawa (Auckland Postal District) non-permanent post-office was conducted was completely destroyed by fire on the 9th April, 1925. The building was the property of the Postmaster. A small quantity of mail-matter was burnt. The store in which the Te Pohue (Napier Postal District) non-permanent post-office was conducted was totally destroyed by fire at 1.0.30 p.m. on the 12th September, 1925. A few unregistered letters were destroyed. POST-OFFICE BURGLARY. During the night of the 13th April, 1925, the post-office, Pukeuri Junction, which is situated in the Pukeuri Junction Railway-station buildings, was broken into. The safe was opened, and the sum of £27 10s. 6d. belonging to the Department was stolen. The culprit was apprehended and sentenced to three years' reformative treatment. The amount stolen was recovered. The entry to the office was made possible by the thief stealing the keys from a Railway officer who had custody of them. POSTAL CONVENTION. The Universal Postal Convention of Stockholm came into operation on the Ist October, 1925. The principal changes necessitated thereby were mentioned in the report for last year. REGISTRATION OF MOTOR - VEHICLES. The new system of registration has many advantages over those systems formerly in operation under the control of the various local authorities. Prior to the Ist January, 1925, there was no comprehensive register such as now exists. Registers were then compiled by individual local authorities for their own particular districts. The officers of the Police Department who have to investigate the ever-increasing number of motor accidents, breaches of by-laws, thefts of motor-vehicles, &c., speak in eulogistic terms of the facilities which the new register affords for tracing motor-owners. It is now possible to obtain from the Registrar of Motor-vehicles, General Post Office, Wellington, particulars of any motor-vehicle registered in the Dominion. For every motor-vehicle a separate file is kept. This file contains a record of the life-history of the vehicle from the time of registration until the time of destruction. The number of inquiries received from the Police Department, local authorities, motor-dealers, and the general public is rapidly increasing, and a considerable amount of time is occupied in searching the register for the information required.

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The following is a statement of motor-vehicles registered in the Dominion up to and including the 31st March, 1926 : — Noeth Island. Cars .. .. .. .. .. .. 54,054 Trucks, &c. .. .. .. .. .. 12,227 Cycles .. .. .. .. .. ..15,276 81,557 South Island. Cars .. .. .. .. .. .. 33,951 Trucks, &c. .. .. .. .. .. 5,418 Cycles .. .. .. .. .. .. 11,885 51,254 Total .. .. .. .. 132,811 These figures do not include the vehicles for which 3,102 demonstration-plates were issued to dealers. In 1925-26 the number of registrations of new vehicles'averaged 2,400 a month, while an average of 150 notifications of change of ownership and 30 notifications of change of garage were received daily. The contract for the manufacture of motor-registration plates for the year 1926-27 was let to the Precision Engineering Company, of Wellington. Certain difficulties which, owing to the nature of the undertaking could not be foreseen, were the cause of some delay in fulfilling the contract. However, for a new venture the plates present a creditable appearance. The volume of work in the Motor Registration Branch is rapidly increasing. Several economies have been effected without impairing the efficiency of the system. The requirements of the Motorvehicles Act are gradually becoming better known to motor-owners, and it is hoped that'failures to comply with the Act will shortly be reduced to a minimum. At present the most common breach, and one which has been responsible for a number of prosecutions, is failure to notify promptly change in the ownership of a vehicle. Failure or delay in notifying change of ownership frequently necessitates a great deal of investigation, and is often responsible for inconvenience to the owner for the time being, who sometimes cannot make use of his vehicle until the various transactions have been verified. DEPARTMENTAL MOTOR-VEHICLES. At the 31st March, 1926, the following vehicles were in use : Motor-cars, 89 ; motor-cycles, 125 ; motor-lorries and vans, &c., 274 : total, 488 —an increase of 27 compared with the number of vehicles in use at the 31st March, 1925. The number of new vehicles purchased during the year was 81. The policy of replacing vehicles .as soon as they have outlived their period of usefulness is being maintained, and in consequence approximately 50 vehicles were withdrawn from service and disposed of by public auction. The British Imperial Oil Company, the present contractor for the supply to Government of motor-spirit, provided for the Department at Auckland, Dunedin, Invercargill, New Plymouth, and Timaru tanks and pumps for handling motor-spirit in bulk, the Department being required to pay only an annual rental and a small contribution towards the cost of installing the plants. The question is now under consideration of installing suitable tanks and pumps at several other stations at which bulk supply of motor-spirit is available. As the cost of spirit supplied in bulk is less than that of spirit supplied in cases economy will result from the installing of tanks and pumps. WORKSHOPS. The maintenance of departmental equipment, which is the chief function of the workshops, was successfully continued. A special feature of the year's work was the renovation of a large number of manual telephones which had been replaced by telephones of the automatic type. The condition of the departmental motor-fleet was maintained at a satisfactory standard. The principal manufacturing-work executed during the year was the making of equipment for telegraph-line construction and of apparatus for telephone-exchange construction. Further supplies of automatic slot telephones were made. The demand for motor-vehicle bodies for both the Postal and the Engineering Branches required constant production. The manufacture of parcel-post hampers was expedited, and it is anticipated that in the near future the Workshops will be in a position to supply fully the hamper requirements of the service. In addition to hampers, boxes of an improved type were made to meet the demands of parcel-post traffic. A growing volume of work, both in the way of repairing and in the way of manufacturing, requires to be done for other Government Departments. The value of the services rendered in this connection during 1925-26 was £5,047, an increase of £802 on the figures for the previous year. The value of all work undertaken during the year was £50,835. STORES BRANCH. The following figures indicate the value of stores purchased, issued, and remaining in stock for the year ended 31st March, 1926. For the purposes of comparison the figures for the previous year are shown also. 1925-26. 1924-25. £ £ Balance, Ist April.. .. .. .. .. 243,590 289,758 Purchases .. .. .. •• 701,301 1,018,107 Issues 737,391 1,064,275 Balance, 31st March .. .. .. .. 207,500 243,590

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Compared with the figures for the preceding year, purchases of motor-vehicle and workshop stores and of stationery and office supplies show increases. Purchases of stores for telegraph and telephone purposes show a falling-off ; but the previous year's figures include expenditure on purchases of automatic equipment for large exchanges and heavy items of line-construction material. . The number and value of purchases made for other Government Departments under the Stores Control Board system, as compared with the previous year, were —

During the year the work in connection with obtaining quotations for the purchase of stores was undertaken by a separate division of the Stores Branch. The concentration of the work has proved to be satisfactory, and as the officers gain additional experience a further increase in efficiency may be expected. The new method has advantages over the old one, as the quotation work is now performed along uniform lines. Such was not the case when the work was attended to by officers on different sections. In addition to the work undertaken in the Department's laboratory, extended use was made of the services of the Dominion Analyst in the first place for the purpose of analysing and examining samples and items submitted for purchase, and in the second place for the purpose of providing an efficient check against the quality of goods supplied. The reports obtained provide valuable data which will be of much practical benefit when making subsequent purchases. Wherever practicable, and where the cost has been within the limits of the preference extended by Government to such purchases, the Department has continued the buying of goods manufactured within the Dominion. The number of items and the value of such purchases are increasing, and it is pleasing to note that on the whole the quality of supplies is of a high standard. As the Department's Stores Branch has the -necessary staff and facilities for packing, for transporting, and for performing other kindred operations, its services are being availed of by other Government Departments to an increasing extent. During the year work occupying 1,035 working hours was so undertaken. In addition, 2,909 working-hours were occupied in effecting removals of furniture and personal effects of departmental officers on transfer. Owing, no doubt, to the method being both convenient and economical, other Departments are drawing to a greater extent on this Department's stocks of office supplies and motor accessories. The practice is sound, as this Department, unlike certain smaller Departments, is ab'e to purchase cheaply in bulk. During the year 222 motor-vehicles were purchased for other Government Departments, and approximately ninety old vehicles were disposed of at auction. The contract for supply to Government of motor fuel was extended for one year, and a fresh contract was let for motor-lubricating oils. Both contracts provide for deliveries to be made from a large number of depots. The system under which this Department undertakes the purchase and distribution to Government Departments of the more-commonly-used sizes of motor tires and tubes has proved satisfactory and economical. The work undertaken on behalf of other Departments with respect to motor-transport requirements is extending, and the advantage of one office controlling purchases in this connection is already apparent. A new system of recording, requisitioning for, and advising supplies of uniform clothing was introduced during the year. It is working satisfactorily, and has brought about a reduction in labour. The systems of distributing supplies direct from the place of manufacture to the store nearest the point of use and of landing bulky stores at main ports have been further extended, and are now reaching the point of maximum benefit. Improved methods of local distribution and transport also are receiving attention. From the Ist December, 1925, the control of stores in the Auckland, Thames, and Hamilton Postal Districts was removed from the District Telegraph Engineer, Auckland, to the Stores Branch of the General Post Office. The Auckland Stores Branch is under the immediate charge of a Stores officer whose headquarters are in Auckland. The establishing of branch stores is about to be undertaken in the southern portion of the North Island. It ds anticipated that the transfer of direct control to officers with special stores training will produce beneficial results. From the Ist July, 1925, provision has been made for all stores ordered to be insured under the Government Marine Insurance Fund. Formerly insurance was effected with outside insurance companies. l NEW ZEALAND AND SOUTH SEAS INTERNATIONAL EXHIBITION. At the New Zealand and South Seas International Exhibition, held at Dunedin from the 17th November, 1925, to the Ist May, 1926, a model post and telegraph office and a departmental exhibit were provided, both being situated in the Government Pavilion. The post and telegraph'office, at could be carried out all classes of business (except savings-bank), fobserved 10 a.m. -*s'p.m. and 7-9 p.m. as the hours of attendance. The staff consisted of a Postmaster, three telegraphists, a messenger, and two message-boys. In addition to the facilities provided at the office itself several posting-boxes and slot telephones were erected in the Exhibition grounds. Mails between the Dunedin chief post-office and the Exhibition office were

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Value of Items purchased. Year ended Requisitions. Items. — ; ■ — Total. On Indent. i Locally. £ £ £ 31st March, 1925 .. 1,842 6,488 17,472 40,120 57,592 31st March, 1926 .. 1,548 5,946 32,451 74,154 106,605

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despatched several times daily by tram-car and by departmental vehicle ; and correspondence for the various courts and stallholders was delivered daily — within the buildings at 11 a.m. and in the Amusement Park at 3 p.m. A regular delivery of telegrams also was carried out. From places within the grounds temporary telephone connections with the Dunedin Exchange were provided at reduced rates. As stated elsewhere in the report, a special series of postage-stamps (denominations |d., Id., and 4d.) commemorative of the Exhibition was issued for sale at the Exhibition post-office. The post and telegraph office was fitted with standard articles of departmental furniture, with an electrically-driven postmarking-machine, with stamp-vending machines, and with other machines and appliances showing up-to-date methods of working. The accommodation was so arranged that visitors, without entering, could view the entire office under actual working-conditions. Thus, in addition to its practical functions, the post-office served as the chief postal " exhibit." A feature of postal work at the Exhibition was the use made by visitors of the letter-telegram service. Approximately 10,000 letter-telegrams were lodged at the Exhibition office. The following indicates the volume of business transacted at the Exhibition post-office : — £ s. d. Telegrams forwarded (all codes) .. .. .. 30,167 1,802 10 10 Telegrams received (all codes) .. .. .. 5,138 Stamps sold (Exhibition commemorative issue) .. .. 4,536 5 6| Money-orders issued .. .. .. .. 517 3,200 14 11 Money-orders paid .. .. .. .. 221 782 0 6 Postal notes issued .. .. . . . . .. 363 15 4 British postal orders issued.. .. .. .. .. 34 17 9 Parcels posted .. .. .. .. .. 2,983 Registered articles posted .. .. .. .. 2,147 The Departmental Court, as distinct from the post and telegraph office, displayed telegraph and telephone apparatus past and present, items of postal interest, and charts and models indicating the growth in the Department's business. The more important items were a model automatic telephone exchange ; an automatic telephone intercommunication installation of twenty numbers, worked on automatic interphone principles, together with an interphone key-box installation for communication between different sections of an office ; old and new manual telephone-exchange switchboards ; old and new telephones and apparatus ; a machine-printing telegraph system, also obsolete telegraph instruments ; samples of submarine and other cables ; a ship's low-power transmitting and receiving station by which wireless reception and broadcasting of time-signals from the Wellington Observatory were carried out daily ; a set of clocks (working) showing at a glance at any hour the times at different places throughout the world ; photographs of old and present-day post-office buildings, mail-conveyances, &c. ; and sets of current and obsolete postage-stamps. Demonstrations of the working of the model automatic exchange, the machine-printing telegraph system, and other apparatus were given throughout the course of the Exhibition by a technical officer. In addition to providing post and telegraph facilities, and setting up a Court of Exhibits, the Post Office undertook at Auckland, Wellington, Christchurch, and Dunedin the work of transporting Government exhibits, both before and at the close of the Exhibition. The Department's efforts earned the appreciation of the Exhibition Directors. WORK FOR ELECTORAL DEPARTMENT. In assistance of giving effect to the Legislature Amendment Act, 1924, which requires an elector to notify the Registrar of Electors of any change, either temporary or permanent, in the address of the elector, arrangements were made to print at the bottom of the Post Office redirection order form a form of notice to the Registrar giving the elector's new address. After completion by the elector the form of notice is detached by the Postal officer to whom the redirection order is handed and is by him posted to the Registrar concerned. It is estimated that 70,0C0 such notifications are dealt with annually. POST OFFICE. ARTICLES DELIVERED. The number of articles delivered in the Dominion, including those received from places beyond New Zealand, during the year 1925, compared with the number in 1924, was as under : — 1Q25 1924 Increase UZB " ~ - Per Cent. Letters .. .. .. .. 148,160,011 135,795,141 9-11 Post-cards .. .. .. 4,677,034 3,909,557 19-63 Parcels .. .. .. .. 3,645,057 3,644,506 0-015 All other articles .. .. .. 80,134,655 71,362,283 12-29 236,616,757 214,711,487 AVERAGE NUMBER OF LETTERS POSTED PER UNIT OF POPULATION. 1925, 110-14. 1924, 103-7. NUMBER OF POST-OFFICES IN DOMINION. Offices opened during year, 27 ; offices closed during year, 78 ; offices remaining open on 31st December, 1925, 2,020.

3—F. 1.

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MAIL BRANCH. Postal Packets posted in the Dominion during the Years 1890, 1900, 1910, 1920, and 1925.

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POST OFFICE SAVINGS-BANK. Balances at Credit of Post Office Savings-bank Depositors for Years 1867, 1886, 1906, and 1926.

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UNDELIVERABLE POSTAL PACKETS. The following is a comparison of letters and other articles dealt with as undeliverable during the year, compared with those so dealt with during 1924 : —

The proportion of undeliverable letters to the total number of letters delivered was 0-45 per cent. In 1924 the proportion was the same. MISCELLANEOUS. 1925. 1924. Letters and letter-cards pbsted without addresses .. .. .. .. 19,731 17,352 Letters imperfectly or insufficiently addressed .. .. .. .. 19,380 20,335 Letters intercepted on account of libellous addresses .. . . .. 42 42 Registered letters unclaimed .. .. .. .. . . .. 9,650 8,762 Newspapers received without addresses .. .. .. .. .. 5,221' 4,540 Other articles received without addresses .. .. .. .. .. 4,070 3,937 Newspapers returned to publishers as undeliverable .. .. .. 43,685 28,881 Articles bearing previously used stamps .. .. . . .. . . 81 77 During 1925 there were dealt with in the Dead Letter Office 5,287 packets (other than parcels) the contents of which gave little or no indication of the senders' names or addresses. In the majority of these cases special effort on the part of the Dead Letter Office was successful in tracing either the senders or the addressees. Two hundred and sixty-five letters from overseas bearing insufficient or wrong addresses were specially dealt with, and a large proportion was delivered. During the year an auction of unclaimed packets and parcels was held, at which 164 bundles of miscellaneous articles Were sold. The number of " special request " letters returned unopened to senders shows a satisfactory increase. If business people realized that a special request for return in the event of non-delivery, printed on an envelope, meant a quicker return of a letter, still more would avail themselves of the system. PROHIBITED POSTAL PACKETS. During the year 3,873 letters addressed to persons or firms the transmission of correspondence for whom is prohibited under section 28 of the Post and Telegraph Act, 1908, were intercepted and forwarded to the Dead Letter Office, as against 2,214 in 1924. REGISTER OF NEWSPAPERS AND MAGAZINES. Eighteen newspapers were registered for transmission by post, and fourteen were removed from the register. Ten magazines were registered, and nine were removed from the register. The number of registered newspapers on the 31st March, 1926, was 300, and the number of registered magazines 337. POSTAGE-STAMPS. During the year the following new postage-stamps were issued : On the Ist April, 1925, 4d. and 9d. Official; in November, Is., Niue (printed in New Zealand) ; and on the 17th November, commemorative of the New Zealand and South Seas International Exhibition, id., Id., and 4d. The last-named stamps, which were sold only at the Dunedin Exhibition post-office, were withdrawn from sale at the close of the Exhibition on the Ist May, 1926. Owing to the limited time available it was necessary for the Exhibition stamps to be produced entirely in New Zealand. New postage-stamps of the Dominion which will be issued in the near future are Id., 25., and 35., the design of the Id. being His Majesty the King in military uniform, and of the 2s. and 3s. His Majesty in naval uniform. The Id. stamp will replace the present " Universal " Id. stamp, which was issued twenty-five years ago on the introduction of penny postage ; while the 2s. and 3s. stamps will replace, for postage purposes, the present stamp-duty stamps of those denominations. STAMP-VENDING MACHINES. In March, 1925, an order was placed in England for the supply of fifty stamp-vending machines, and towards the end of the year the machines commenced to come to hand. As the new machines are made ready for issue they are sent to the more important places throughout the Dominion. The convenience afforded by the machines in enabling stamps to be obtained at any hour of the day or night is greatly appreciated by the public.

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Returned direct t> , , , Returned to other 0 , ■, . t. i. o j Returned direct A , ... ,. Returned to other Destroyed to benders , 0 , Administrations a ± ,a j i \t . u . c to Senders , £ Administrations (benders unknown Year. from l.hief £ r\ from Chiet , t-j a n *. 4. t lotal. ncc /a a -i irom Dead I(( 0 . t trom L*eaa and Contents ot Offices ("Special j Offices ('Special Letter 0ffice . n o Value). Request ). Request ). ' Letters. 1925.. 247,934 j 291,598 j 54,556 39,091 26,308 659,487 1924.. 235,015 ] 272,653 I 44,854 35,564 14,688 602,774 Other Articles. 1925.. 157,543 j 9,211 i 75,377 | 24,532 I .. I 266,663 1924.. 130,363 | 6,013 I 72,926 | 19,481 I .. ! 228,783

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DISCOUNT-STAMPS. Owing to the lack of demand, discount-stamps (which were created under the Trading-stamps Abolition and Discount-stamps Issue Act, 1900) were withdrawn from sale at the 31st March, 1926. The redemption of such stamps is, however, being continued until the 31st March, 1927. PARCEL-POST. Insured Parcel-post to the Dominion op Canada and Fiji. On the 21st October, 1925, a system of exchange of insured parcels was inaugurated between New Zealand and the Dominion of Canada. The maximum amount for which any one parcel may be insured is £20. In the case of insured parcels posted in Canada for New Zealand the Administration of Canada is responsible for loss, damage, or abstraction of contents up to the point at which the parcels are delivered into the custody of the Administration of New Zealand. In the case of insured parcels in the reverse direction New Zealand assumes liability up to the point at which the parcels are delivered into the custody of the Administration of Canada. In response to a request received from the Post Office of Fiji the Department agreed to the introduction in the New Zealand - Fiji parcel-post service of a system of insurance for parcels. The system will operate from the Ist July, 1926. Responsibility for damage is to be allocated as in the case of the New Zealand - Canada insured-parcel service. Cash-on-delivery Service to Fiji. The Department has agreed also to the introduction between New Zealand and Fiji of a cash-on-delivery service for post parcels. It is considered that this step will prove of benefit to traders in New Zealand. The cash-on-delivery service has not yet come into operation. Customs Parcels. The following table shows the declared value of goods received by parcel-post from abroad and the Customs duty thereon ; also the declared value of goods despatched by j)arcel-post. The figures for the years 1925 and 1924 are shown in each case. 1925. 1924. £ s. d. £ s. d. Declared value of received parcels .. 1,492,300 0 0 1,333,745 0 0 Customs duty .. .. .. 311,055 19 7 277,467 16 7 Declared value of forwarded parcels .. 76,980 0 0 75,572 0 0 "INSURED BOX" SERVICE. On the Ist December, 1925, the " insured box " service, which has long been in operation between Great Britain and certain other countries, was introduced between Great Britain and New Zealand. The service provides for the conveyance by letter-mail of articles of gold or silver, precious stones, jewellery, and other articles of a like nature which are prohibited transmission by the ordinary insured-letter service. Prior to the introduction of the " insured box " service such articles could be forwarded only by parcel-post. An "insured box " must not exceed in weight 2 lb., in length 12 in., and in breadth or depth 4 in. For packing, a strong wooden or metal box must be used. The postage is 2d. an ounce, with a minimum charge of Iod., plus an insurance fee of Bd. for the first £12 of insured value and sd. for each additional £12 of insured value. The limit of insurance is £400. POSTAL NOTES. The popularity ol the method of remitting small sums to places within the Dominion by means of postal notes is ever increasing. Postal-note business again shows a decided increase, the sales for the year ended 31st March, 1926, being 3,040,722, of a total value of £922,873, an increase over the previous year of 194,389 in numbers and £62,844 in value. The commission totalled £20,754 3s. 4d., an increase of £1,283 7s. sd. on that earned in the year 1924-25. BRITISH POSTAL ORDERS. The sale of British postal orders also shows a marked increase : 136,763 orders, of a value of £78,030 lis. 4d., were sold, as against 132,348 orders, of a value of £75,554, sold during the previous year. The number of orders paid was 30,248, of a value of £17,666, as against 27,168, of a value of £16,135, paid during the previous year. TELEGRAPH AND TOLL SERVICES. DIRECT TELEGRAPH CIRCUITS BETWEEN ATHLETIC PARK, WELLINGTON, AND EDEN PARK, AUCKLAND. A direct Morse circuit between Athletic Park, Wellington, and Eden Park, Auckland, was provided on the 12th, 19th, and 26th September, 1925, to enable scores in the Hawke's Bay - Auckland Rugby Football Match (at Auckland) and the Wellington - Otago match (at Wellington) on the 12th, the New South Wales - New Zealand match (at Auckland) and the Wairarapa-Wellington match (at Wellington) on the 19th, and the Wellington-Auckland match (at Auckland) and the WellingtonManawatu match (at Wellington) on the 26th to be exchanged as soon as they occurred. In addition, individual, half-time, and final scores in the Auckland - Hawke's Bay match (at Auckland) and the Poverty Bay - New South Wales match (at Gisborne) on the 12th, the TaranakiAuckland match (at New Plymouth), and the Wanganui-Otago match (at Dunedin) on the 19th, and

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the'fWanganui-Canterbury match (at Christchurch) on the 26th were telegraphed to Eden Park and Athletic Park and exhibited for the. information of spectators. The scores werejpromptly conveyed to the Rugby Union officials responsible for announcing them to the public. . The Department's service was performed free of charge. At Athletic Park and Eden Park telegrams giving progress results of the matches or other information were accepted also from the public. During the three days that the offices were open 45 telegrams (exclusive, of Press messages) were lodged at Eden Park, and 5 were presented at Athletic Park. Great appreciation of thejfacilities provided was expressed. TELEPHONING OF WEATHER-FORECAST TELEGRAMS TO EXCHANGE SUBSCRIBERS. Weather-forecast telegrams may now be telephoned to an exchange subscriber at the prescribed charge irrespective of the length of line of his connection. Formerly the facility was not granted in the case of a subscriber whose premises were situated within a mile of the exchange. INLAND LETTER - TELEGRAMS. The inland letter-telegram service has now become an important factor in the Department's telegraph business. The growth of letter-telegram business is no doubt due to the very cheap rate that applies to this class of telegram. Such messages may now be accepted written in Maori language. As letter-telegrams are transmitted after other telegrams and throughout the day as opportunity offers, they are the means of keeping the telegraph circuits engaged at times when they would otherwise be idle. The number of letter-telegrams sent during the year was 317,484, an increase of 102,011 on the number sent during 1924-25. PRESS TELEGRAMS. In order that people throughout the Dominion might be kept in touch with the progress of the Dunedin and South Seas International Exhibition the free transmission was authorized of a daily Press telegram relative thereto, not exceeding 200 words, addressed to all Press Association newspapers. PRESS-TELEGRAM RATES. Up to the 31st March, 1926, evening newspapers were permitted to receive, at Press rates, between 8 a.m. and 5 p.m. daily, an aggregate of 2,000 words of inland news. Any excess of that number was charged for at the rate of Id. a word. As it was found that occasionally the restriction pressed heavily on evening newspapers, authority was given for the number of words that may be charged for at Press rates to be increased to 3,000. The alteration came into operation from, the Ist April, 1926. MISCELLANEOUS (TELEGRAPHS). Particulars of the offices opened, &c., during the year are as follow : — Offices opened, 30 ; offices closed, 73 ; offices remaining open on 31st March, 1926, 2,212. Of this number 340 are operated by Morse, 1,858 by telephone, 4 by radio-telegraphy, and 10 are toll stations only. There are also four other radio stations on the mainland (Awanui, Auckland, Wellington, and Awarua) and five in the Cook Islands. As was the case in the year 1924-25, the number of offices closed exceeded the number opened. This decline is due to the extension of the telephone-exchange system in rural areas rendering a number of small offices unnecessary. TELEGRAPH AND TOLL TRAFFIC. The figures which follow show the position in regard to telegraph and telephone traffic. Fuller information is contained in Table 11.

Total of all Classes of Message and Value thereof.

Schedule of Paid Telegrams, Cable Messages, and Toll Communications. , T , Value. Number. Ordinary .. .. .. .. .. .. •• 6,043,563 508,169 Urgent 317,021 32,385 Press . .. .. .. .. •• 488,487 67,481 Letter •• 317,484 14,738 Toll communications .. .. .. .. .. ■■ 8,976,859 358,037 16,143,414 980,810 Less net amount paid to other Administrations on cable and radio messages .. 198,130 Net total for paid messages of all codes, 1925-26 .. .. .. 16,143,414 782,680 Net total for paid messages of all codes, 1924-25 .. .. .. 15,410,390 749,100

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i 1925-26. ; 1924-25. Increase. pe^Cent Number .. .. .. 16,201,874 15,471,950 729,924 4-717 Value .. .. .. £787,670 £753,520 £34,150 4-532

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Table showing Use by the Public of Telegraph and Toll Services. 1925-26. 1924-25. Number of ordinary telegrams sent per unit of population .. .. .. 4-54 4-43 Number of toll communications per unit of population .. .. .. 6-37 6-54 Number of paid messages, telegrams, or toll communications per unit of population 11-49 11-71 Number of paid telegrams for every 100 letters posted .. .. .. 4-39 5-05 OCEAN CABLE SERVICES. Although a number of minor troubles occurred on the overseas cable routes, there was no serious interruption of cable traffic during the year. As remarked in last year's report, the Pacific cable is worked to its full carrying-capacity. Duplication of the Vancouver - Fanning Island and the Fanning Island - Fiji sections will be commenced shortly, and when the work is completed a faster service will be given. During the year 322,722 messages were transmitted from and 290,728 received in New Zealand by overseas cables. This is an increase over last year's totals of 38,471 messages in the case of forwarded and of 38,792 messages in the received. PACIFIC CABLE BOARD. After considerable delay in selecting a successor to Mr. John Milward as Manager in the Pacific the Pacific Cable Board recently appointed Mr. Percy Hunter. Mr. Hunter is a man of very wide commercial experience, both in Australia and in London, and that experience should prove of great value to him in his new position with its onerous duties. Mr. Hunter, whose headquarters are in Sydney, visited New Zealand in May, 1926, and conferred with the Postmaster-General and with the Secretary of the Department. In view of the approaching duplication of the cable between Fiji and Vancouver, and the consequent greater capacity of the line, the discussions proved of considerable interest. INTERNATIONAL TELEGRAPH CONFERENCE. After having been postponed from time to time since 1913, owing in the first place to the Great War and in the second place to post-war conditions, an Internationa] Telegraph Conference was opened at Paris on the Ist September, 1925. Previous similar Conferences at which the Dominion was represented were held at London in 1903 and at Lisbon in 1908. At the London Conference New Zealand was represented by Messrs. W. P. Reeves and R. J. McKay, the latter being an officer of the British Post Office. At the Lisbon Conference Mr. W. P. Reeves was New Zealand's sole representative. It was considered that as a suitable departmental officer could'not be spared to attend the Paris Conference the services of a competent person resident in London should be availed of, and it was finally decided to appoint Major T. E. Donne, formally of the High Commissioner's Office. The British Post Office authorities very generously offered to afford the New Zealand representative every assistance ; and the assistance given was much appreciated. A considerable number of amendments were made to the regulations governing the exchange of telegrams between the countries adhering to the Convention, and these will come into operation on the Ist November, 1926. CABLE RATES. From the Ist April, 1925, the rates via Eastern for full rate and deferred cable messages to any part of the United States of America were reduced to the level of those chargeable for messages sent via Pacific. The ordinary Press rate between New Zealand and Great Britain was reduced from 7|d. to 6d. a word from the 7th July, 1925. On the Ist August, 1925, the cable rate for Press messages exchanged between New Zealand and Canada, via Pacific, was reduced from sd. to 4d. a word. The special rate of 3Jd. on messages exchanged with Vancouver City was reduced to 2fd. a word. The whole cost of the reduction was borne by the Pacific Cable Board. From the Ist August, 1925, the rate for cable messages to France by both Eastern and Pacific routes was increased to 2s. 6|d. ordinary and Is. 3|d. a word deferred. This represents an increase of Jd. and Jd. a word respectively. From the 25th January, 1926, cable messages for Belgium, France, Holland, and Switzerland have been accepted " via Pacific and Marconi " at the same rate as " via Pacific," and cable messages for Germany have been accepted " via Pacific and Marconi " at the same rate as " via Pacific and Imperial." Formerly the rates via Pacific and Marconi were 2d. a word higher. DAILY LETTER CABLE MESSAGES. The daily letter-telegram service has been extended to include Iraq, Newfoundland, and Prince Edward Island. In order that daily letter-telegrams lodged on Saturdays might not be at a disadvantage in the matter of delivery as compared with the cheaper week-end messages, it was decided to effect delivery of the former on Mondays irrespective of the hour of lodgment on Saturdays. The daily lettertelegram service which was introduced in 1923 is now firmly established, no fewer than 31,340 such messages being sent from New Zealand during the year.

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INTERCOLONIAL NIGHT LETTER-TELEGRAM SERVICE. The night letter-telegram service with the Commonwealth of Australia, introduced in 1924, has become very popular with cable users. Although this service is relatively new, no less than 10,275 such messages were exchanged with the Commonwealth during March, 1926, as against 6,635 in March, 1925. The requirement that a sender of an intercolonial night letter-telegram must sign a declaration to the effect that his message is in plain language and that it bears no secret meaning was recently withdrawn. CABLE TRAFFIC. The number of cable messages, excluding Press, sent from New Zealand to international offices shows an increase of 9-67 per cent, on the number sent during 1924-25, and the number sent to Australian offices shows an increase of 11-90 per cent. Messages received from international offices increased by 11-18 per cent., and messages from Australia increased by 11-57 per cent. The proportion of cable messages sent " via Pacific " was less than that sent by the same route during the previous year, the percentages being 65-0 and 65-3 respectively. The following table shows the total number of cable messages, excluding Press, forwarded by each route during each of the past five years ; also the percentage of such traffic falling to each.

Press messages numbering 3,163 were sent via Pacific and 4,827 via Eastern, compared with 2,534 and 4,369 respectively during 1924-25. The number received via Pacific was 5,921 and via Eastern 4,208, compared with 6,628 and 4,176 respectively. The following table shows the total number of each class of message, excluding Press, forwarded during 1925-26, as compared with the number forwarded during 1924-25 : —

TELEGRAPH AND TOLL-LINE SYSTEMS. Extensions. The rapid growth during the last few years in the number of subscribers' stations has led to a corresponding increase in the use of the telephone toll-line system. Consequently, toll circuits which a few years ago were adequate are now heavily loaded. Wherever practicable, congestion on trunk lines has been relieved by providing short branch lines for intermediate offices, thus eliminating such offices from the main arterial circuits. By the adoption of this practice and by the application of superimposed methods by employing subsidiary apparatus it has been possible to rearrange the trunk circuits to much better advantage and to obtain additional circuits without erecting extra wires. Where existing facilities could not be augmented other than by the erection of additional circuits, rearrangements effected in conjunction with the erection of new circuits have almost invariably resulted in the traffic-carrying capacity of the original speech-channels being considerably increased. The progress made during the year in extending the toll-line system generally has been most satisfactory, and has resulted in a very appreciable improvement in the standard of toll service. There has now been completed a comprehensive scheme, comprising a reconstruction and extension of the telegraph and telephone circuits in the North Auckland district, which provides greatly improved facilities for intercommunication between the various exchanges in the North Auckland district and between that district and Auckland. The new scheme is characterized by the following important features : — A new trunk line of four wires has been erected between Auckland and Kaitaia via Kirikopuni and Kaikohe, this route being forty-three miles shorter than the previous one. These wires are

24

Pacific. Eastern. Meesage,, | Year. I Messages. I I 1921-22 147,781 68 1921-22 69,515 32 1922-23 157,895 67-4 1922-23 76,455 32-6 1923-24 167,922 65-9 ' 1923-24 86,797 34-1 1924-25 185,680 65-3 1924-25 98,571 34-7 1925-26 204,586 65 1925-26 110,146 35

1925-26. 1924-25. Forwarded. Received. Forwarded. Received. Full-rate international cable messages .. .. 84,074 81,115 80,381 76,611 Deferred international cable messages .. .. 21,263 21*642 17,295 18,196 Daily letter-telegrams .. .. .. .. 31,849 21,086 27,408 15,579 Week-end telegrams .. .. .. .. 28,020 15,837 25,549 15,253 Australian cable messages .. .. .. 96,266 98,592 103,147 102,464 Australian night-letter telegrams .. .. 53,260 42,327 30,471 23,833 Totals .. .. .. .. 314,732 280,599 284,251 251,936 (For further statement of the Dominion's cable business see page 39-.)

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designed to serve as main arterials between Auckland and the two areas for which Kaitaia and Kaikohe are the switching-centres. Thus good channels of speech are now available throughout the day between Auckland and all places north of Kaikohe. South of Kaikohe increased facilities have been given by providing new trunks to the switchingstations at Dargaville, Whangarei, Ruawai, Paparoa, Maungaturoto, Waipu, and Warkworth. Every part of the North, therefore, shares in the improved service with Auckland. The erection of the new circuits, together with the adoption of special methods, has made it possible also to provide intercommunication between switching-centres in North Auckland without the previous necessity of utilizing Auckland as a switching-centre. By means of special apparatus and improvised methods additional Morse circuits have been provided between Auckland and Kaitaia, between. Auckland and Whangarei, and between Dargaville and Whangarei. Ultimately, the arterial system of trunk lines in the North Auckland district will form a section of the proposed inter-trunk system whereby telephonic communication will be practicable between any two exchanges in the North Island. A commencement has now been made with the erection of new trunk circuits between Kohukohu and Kaitaia by means of which the Hokianga and Mangonui Counties will be linked up with efficient channels of telephonic communication. The completion of two toll circuits between Taumarunui and Raetihi, and of one additional circuit between Taumarunui and Ohakune, has rendered practicable an extension of toll facilities between certain groups of exchanges in the King-country and the Waikato, Wanganui, and New Plymouth districts. At many exchanges such extension has meant the introduction of continuous toll service. With a view to improving their efficiency, a rearrangement of the toll circuits on the west coast of the South Island is now being carried out. Already an improvement has been effected in the toll service between Greymouth and Westport. A Morse circuit has also been provided between the last-named place and Reefton. A rearrangement of the wires between Westport and Seddonville is now in hand, and when completed the exchanges and toll stations north of Westport will have a much improved service. Three direct telephone circuits have been provided between Ashburton and Timaru. In addition, an improved utilization of the existing circuits between those places has enabled new or additional circuits to be* made available between Ashburton and Hinds, Hinds and Geraldine, Ashburton and Geraldine, Geraldine and Temuka, Teniuka and Timaru, and Geraldine and Timaru. Thus toll facilities available to telephone subscribers in the areas named have been improved to a very appreciable extent. The section of main line between Timaru and Dunedin was reconstructed during the year, and the circuits were grouped to much better advantage. This rearrangement, together with the erection of new wires, has resulted in two additional circuits being provided between Dunedin and Timaru, an equivalent increase in the circuits between Dunedin and Oamaru, and a much improved service generally between Dunedin, Timaru, and intermediate stations. Dunedin now has two circuits to Palmerston, four to Oamaru, and three to Timaru, one of the last-mentioned being used when necessary for DunedinChristchurch traffic. The completion during the next few months of new toll circuits between Dunedin and Gore, Gore and Invercargill, and Clyde and Cromwell will have the effect of very considerably reducing the delay on toll traffic between those places. The more important of the additional toll circuits provided during the year are as follows : — later-Island telephone cable. Martinborough-Pirinoa. Auckland-Kaitaia. Nuhaka-Morere. Auckland-Kaikohe. Raetihi-Raurimu. Auckland-Whangarei. Richmond- Appleby. Auckland-Dargaville. Richmond - Spring Grove. Whangarei-Kaikohe. Tokomaru Bay - Ruatoria. Wha ngarei- Dargaville. Wairoa-Nuhaka. Dargaville-Kaikohe. Waipawa-Ongaonga-Tikokino. Kaikohe-Kaitaia. Wakefield-Kohatu. Kaitaia-Awanui. Upper Moutere - Neudorf. Maungaturoto-Mareretu. Ashburton-Geraldine. Mareretu-Waikiekie. Christchurch-Dunedin. Maungaturoto-W aipu. Hinds-Geraldi ne. W ellsf ord-W arkworth. Mayfield-Spri ngburn. Kaikohe-Okaihau. Timaru-Ashburton. Whangarei-Pakotai. Timaru-Fairlie. Whangarei-Parakao. Ti maru-Geraldine. Whangarei-Maungatapere. Timaru - Pleasant Point. Dargaville-Paparoa. Timaru - St. Andrew's. Dargaville-Ruawai. Ti maru-Temuka. Auckland-W arkworth. Timaru-W aimate. Auckland-Waipu. Oamaru-Waimate. Hamilton-Matamata. Oamaru-Timaru. Ohinepanea-Matata. Dunedin-Timaru. Paeroa-Ngatea-Turua. Dunedin-Oamaru. Taumarunui-Ohakune. Dunedin-Palmerston. Taumarunui-Raetihi. Dunedin-Ranfurly. Te Aroha - Morrinsville. Palmerston-Oamaru. Tirau-Cambridge. Dunedin-Balclutha. Waitakaruru-Pokeno. Dunedin-Clinton. Havelock-Canvastown. Invercargill-Edendale-Wyndham.

4—F. 1. *

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INTER-ISLAND TOLL SERVICE. Prior to the laying, in the last week of March, 1926, of the telephone cable across Cook Strait toll communication between the North and South Islands was available between the hours of midnight and 8 a.m. Erom the 31st March, 1926, toll communication was made available continuously. Pending the installation of amplifying-apparatus the service will be an improvised one, and will be confined to calls from Wellington on the one hand and Blenheim, Nelson, Picton, and Seddon on the other. A full report of the laying of the cable appears at pages 27-28. EFFECT OF EXTENSION OF HIGH-TENSION LINES. The continued activity of electric-power Boards throughout the Dominion has involved the carrying-out by the Department of a considerable amount of protective work and the removal and readjustment of many sections of toll and telephone-exchange lines. In addition, a number of earthworking toll lines and exchange systems have been converted to metallic-circuit working in order to eliminate inductive interference from power-lines. The work involved in carrying out these modifications has to some extent hampered a more vigorous prosecution by the Department of its own telegraph and telephone developmental works. MACHINE-PRINTING TELEGRAPHS. The installation of machine-printing telegraph apparatus at Wanganui for communication with Wellington was completed on the 17th December in readiness for the Christmas traffic. Steady progress was made with the scheme for linking up, by means of the multiplex machineprinting system, Wellington, Wanganui, New Plymouth, and Auckland via the west-coast lines, and Wellington, Napier, and Auckland via the east-coast lines. With the completion of this scheme multiplex channels will be available for telegraph traffic between the following places : — Auckland-Christchurch. Napier-Auckland. Auckl and-D unedin. N api er-W elli ngt on. Auckland-Napier. New Plymouth - Auckland. Auckland-New Plymouth. New Plymouth - Wellington. Auckand-W anganui. W anganui -Auckland. Auckland-Wellington (three routes). Wanganui-Wellington. Christchurch-Auckland. Wellington-Auckland (three routes). Christchurch-Dunedin. Wellington-Christchurch. Christchurch-Wellington. Wellington-Dunedin. Dunedin- Auckland. Wellington-Napier. Dunedin-Christchurch. Wellington - New Plymouth. Dunedin-Wellington. Wellington-W anganui. In addition, it will be possible to provide a multiplex channel between Christchurch and Wanganui to meet any abnormal traffic requirements between those places. MAINTENANCE OF LINES. Notwithstanding heavy snowstorms in the Canterbury District and violent gales elsewhere during the year, telegraph and telephone communication was satisfactorily maintained, there being but few serious interruptions. In April an exceptionally heavy rainstorm at Christchurch caused several aerial telephone cables to become inoperative, with the result that over a thousand subscribers were temporarily deprived of service. (The whole cable system at Christchurch is now being reconstructed preparatory to the Christchurch Exchange being converted to automatic working.) A severe storm in the Auckland District in May resulted in the cutting-ofi of all communication between Auckland and Whangarei, and between Auckland and the east coast north of Waiwera, but within three days all services were restored. In July a heavy snowstorm in the Canterbury District resulted in the interruption of all the main east-coast wires between Kaikoura and Clarence Bridge. Further heavy falls of snow occurred in August, all the Christchurch-Greymouth wires west of Springfield being interrupted. As a result of the same storm 60 exchange subscribers' lines at Methven were broken and 40 subscribers at Springfield were cut off. In all, about 100 poles were completely destroyed ; and many miles of wire had to be replaced. Another snowstorm occurred in September, and was the cause of considerable damage on the West Coast, particularly between Bealey and Jackson's, and at Reefton. The damage on this occasion, however, consisted chiefly of broken wires, which were quickly replaced. On the morning of the 27th January Morse and multiplex circuits in the Auckland District were markedly affected by earth currents of a very variable nature due to an auroral disturbance ; but conditions soon became normal. POLES AND WIRE. During the year 170 miles of pole-line and 3,486 miles of wire were erected or acquired for telegraph and telephone (toll) purposes, while 53 miles of pole-line and 287 miles of wire were dismantled, or, in localities where no longer required by the Department, sold to settlers for use as private telephone-lines.

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The lengths of pole-line and wire in use for telegraph and telephone toll purposes on the 31st March, 1925 and 1926, respectively, were as follow : —

The telegraph and telephone wire in use on the 31st March, 1926 —viz., 59,791 miles —is classified as under :— Miles. Used exclusively for telephone toll traffic .. .. .. .. 4,152 Used exclusively for telegraph traffic.. .. . . .. 10,902 Used simultaneously and (or) conjointly for telegraph and telephone toll traffic .. .. .. .. .. .. .. 44,737 The total length of wire that may be used for telephone toll traffic is therefore 48,889 miles ; the total length that may be used for the transmission of telegrams, 55,639 miles ; and the length of telephone toll-lines over which telegrams may be transmitted by telephone, 23,060 miles. The total length of Morse circuit derived from the superimposing of telephone circuits is 12,114 miles, and the total length of additional telephone toll circuit improvised from the existing wire circuits by the use of subsidiary apparatus associated therewith (so-called phantom working) is 4,333 miles. NEW ZEALAND SUBMARINE CABLES. The Wanganui-Wakapuaka (Nelson) cable and the No. 3 Cook Strait cable are still out of commission. Repairs to these cables are being deferred until there is sufficient cable-work available to warrant the chartering of a cable-repairing steamer. Cables which developed faults and which were repaired were the Mititai -Te Kopuru, the Tokatoka-Tatarariki, and the Tiritiri and Great Barrier (Auckland) cables. On account of their being of no further use, two small sections of cable at Dog Island and Centre Island (Foveaux Strait) have been abandoned. Intek-Island Submarine Telephone Cable. The 26th March, 1926, marked the completion of the laying of the Cook Strait telephone cable, which is destined to become an important factor in ' fostering the development of long-distance telephony in New Zealand and in promoting a closer relationship, both commercially and socially, between the North and South Islands. The cable, which is a four-core continuously loaded type, was manufactured by Messrs. Siemens Bros, and Co. (Limited), of Woolwich, England. The total length of cable purchased was 41f nautical miles, made up of 6J miles of shore-end cable and 35 miles of intermediate cable. The shore-end cable weighs approximately 11 tons per nautical mile, and the intermediate cable 7f tons per nautical mile. As the Pacific Cable Board's cable-steamer " Iris," which usually undertakes the repair of the Department's cables, could not be made available for this special work, arrangements were made with the Marine Department for the Government steamer " Tutanekai " to be recommissionedforthe occasion. The cable was shipped from London by the s.s. " Tongariro " on the 16th January, 1926, and reached Wellington on the 7th March. Discharging operations commenced on the 9th March, and within three days the whole of the cable had been transhipped direct from the tank in the " Tongariro " into the holds of the " Tutanekai." On the 22nd March the " Tutanekai " proceeded to the mouth of the Blind River (approximately 5 miles south-east of Seddon, in the Awatere County) for the purpose of laying the South Island shore end, measuring If nautical miles. On the following morning the Seddon shore-end cable was landed and anchored, the If nautical miles paid out, and the end buoyed. The " Tutanekai " then returned to Lyall Bay in the hope of laying the main portion of the cable on the following day. During the night, however, a strong southerly wind sprang up and prevented the ship from working on the 24th. On the 25th March, the weather being favourable, the ship dropped anchor at Lyall Bay at 6 a.m. The Lyall Bay end of the cable was secured on shore at 7.20 a.m., and the ship commenced paying out at 8.30 a.m. The paying-out of cable continued until 4 p.m., when the " Tutanekai " reached the buoy at the extremity of the Seddon shore end. Testing and jointing operations proceeded throughout the night, and the section containing the splice between the main cable and the Seddon shore end was dropped from the ship at 9 a.m. on the 26th March. The laying of the cable was carried out without mishap of any kind ; and much credit is due to the officers of the Marine Department who were in command of the " Tutanekai " during the cablelaying operations.

27

t, i v j w Year ended Year ended T Pole-lme and Wire. 31st March) 192g 31st March> 1926 . Increase. Miles of pole-line .. .. .. .. 12,935* 13,052 117 Miles of wire .. .. .. .. .. 56,592* 59,791 3,199 * Revised figures.

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The cable was shipped from the manufacturers' works in two lengths, one length consisting of lj: nautical miles of shore cable for the Seddon end, and the other length consisting of 5 nautical miles of shore cable and 35 nautical miles of main cable for laying between Lyall Bay and the sea end of the Seddon shore cable. This arrangement necessitated the making of only one splice at sea, the cable being so arranged in the special tank in the " Tongariro " as to permit of its being laid from the " Tutanekai " in the order set out above. The total length of cable actually laid between Lyall Bay and the South Island landing was 38-1 nautical miles, this being made up of 5 nautical miles of shore-end cable at the Lyall Bay end, 1-25 nautical miles of shore-end cable at the Blind River end, and 31-85 nautical miles of intermediate or main cable. A few days after the laying of the cable continuous telephone service was established between Wellington on the one hand and Nelson, Seddon, Picton, and Blenheim on the other. For the present the inter-Island service is limited to communications between Wellington and the exchanges mentioned, as the cable itself does not constitute the complete equipment necessary to link up and provide satisfactory communication between all North and South Island exchanges. The next work to be undertaken ill connection with the Cook Strait cable is the connection of its extremities with the Wellington Central and Seddon Exchanges respectively by means of special trench cable, 3J miles of which is to be laid between Lyall Bay and the Wellington Central Exchange and 5 miles between the mouth of the Blind River and the Seddon Exchange. The characteristics of the trench cable are similar to those of the submarine cable, except that the armouring is somewhat lighter and the cores are enclosed in a lead sheathing. Preparations for the laying of the trench cable, which has already been delivered at Wellington, are now in hand. Meantime aerial land-lines connect the extremities of the submarine cable with the Wellington and Seddon Exchanges. A further work preliminary to extended range working via the new cable is the installation at the Wellington and Seddon Exchanges of special telephone repeaters or amplifiers, which in turn necessitate the installation of storage batteries and associated power plants, together with a considerable amount of special electrical apparatus. A new building to accommodate the repeaters and associated equipment at Seddon is in course of erection. The manufacture of the repeater equipment at Messrs. Siemens Bros, works is nearing completion, ind it is expected that it will be ready for use about December next. Appended is a sketch of the cross-section (actual size) of the shore end of the submarine telephone cable.

Cross-section of Cook Strait Submarine Telephone Cable (Shore End).

The intermediate section of the cable is of similar construction, but is smaller in diameter.

WIRELESS SERVICES. WIRELESS EQUIPMENT, EXTENSION, ETC. As a result of the careful attention that has been paid to routine maintenance, the operation of the New Zealand coast stations was carried out without interruption. On the 30th July and 9th October respectively radio-telegraph stations were installed in the lighthouses at Puysegur Point (in Foveaux Strait) and Stephens Island (in Cook Strait). These stations are owned and operated by the Marine Department, and are primarily for the purpose of 'reporting passing ships. Ordinary telegraph traffic also is handled, the charge for telegrams being 2J"d. a word, with a minimum of Is. 3d, a message. The stations are for fixed point-to-point working, Puysegur Point communicating with Radio-Awarua at £Kl5 a.m. and 4.15 p;m. daily, and Stephens Xsland with Radio-Wellington at the same times. - -

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A radio-telegraph station was erected on the Island of Atiu, in the Cook Group, and was opened for traffic on the 17th December. The hours of attendance are from 8 a.m. to 8.30 a.m. on Mondays, Wednesdays, Thursdays, and Saturdays. The rate for telegrams from New Zealand is Is. 9d. a word. During a hurricane experienced at Apia, Samoa, on the 2nd January, 1926, considerable damage was caused to the aerial system of the radio station. Temporary repairs were effected immediately, and operations were resumed on the following day. Fortunately, no other damage was caused. WIRELESS INSTALLATIONS ON SHIPS. The number of wireless licenses in force on the 31st March, 1926, in respect of ship stations was 56, an increase of 24 on the number in force in the previous year. The increase is largely due to the Marine Department's new regulations. These regulations provide that every ship which is registered in the Dominion and to which one or more of the following conditions applies must be provided with wireless telegraph apparatus :— (a.) That is of 1,600 tons gross registered tonnage or upwards ; or (b.) That carries more than twelve passengers ; or (c.) That carries more than twenty-five persons. For the purpose of the regulations ships are classified as follows :— Class I : Foreign-going ships carrying two hundred persons or more ; Class II : Foreign-going ships carrying seventy-five but less than two hundred persons other than those in Class 111 : Class 111 : (a) Foreign-going ships carrying less than seventy-five persons ; (b) foreign-going ships proceeding between ports of call within the Dominion of New Zealand when carrying less than two hundred persons ; (c) home-trade ships carrying four hundred persons or more. Class IV : Home-trade ships other than those in Class 111. Provision is made for the wireless installations on Class IV ships, which are all small vessels engaged in the coastal trade, to be operated by one of the ship's officers qualified as a wireless telegraph signaller, instead of by a regular qualified operator as is required in the case of other ships. Twentytwo ships registered in New Zealand are being operated by wireless signallers. Radio-telegrams exchanged with vessels the wireless installations of which are operated by wireless signallers are restricted to messages to or from officers of the ship relative to urgent maritime matters. The qualifications of a wireless signaller are that he must be able to send and receive satisfactorily at a speed of not less than ten words a minute for a continuous period of five minutes, and that he must have a sound practical knowledge of the transmitting and receiving apparatus and its accessories, and also of the care and adjustment necessary to maintain the equipment in an efficient condition. The Department conducts the examination for these certificates, the fee for which is ss. Up to the 31st March, 1926, eighty-eight wireless signaller certificates had been issued. Provision has been made also for the issue of wireless watcher certificates, but no candidates have yet presented themselves for examination. RECEPTION OF SIGNALS FROM THE BRITISH HIGH-POWER STATION AT RUGBY. The opening of the high-power station at Rugby, England, in December last marked an important step in radio communication between Great Britain and the Dominions. The new station is designed to provide a reliable means whereby communication with all parts of the Empire can be obtained during any period of the day or night. Since the Ist January, 1926, the British Official News Service messages previously sent from the Leafield Station have been sent from the Rugby Station on a wave-length of 18,740 metres. Tests of signal strength and reliability are being conducted at Radio-Awarua, and it is hoped that at an early date reliable reception in New Zealand will be an established fact. PROPOSED INTERNATIONAL RADIO-TELEGRAPH CONFERENCE. The last Radio-telegraph Conference was held in London in 1912. The next Conference should have been held at Washington in 1917, but was postponed owing to the war. After peace had been declared, negotiations were commenced with a view to combining the International Telegraph Convention and the Radio-telegraph Convention, the former of which was set down to be held in Paris. The negotiations were prolonged ; and, finally, as an agreement with one or two of the principal allied countries could not be reached, the French Government decided to proceed with the Telegraph Conference, which was held in Paris in September and October, 1925. Arrangements are now being made to hold the Radio-telegraph Conference at Washington in 1927. . As the last Conference was held in 1912 and wireless telegraphy has made such enormous strides since then there will be many important matters' to -be discussed. It is intended that the Dominion shall be adequately represented- at the Washington Conference. - IMPERIAL WIRELESS SERVICES. " The High Commissioner for.New Zealand and Mr. John Milward, late Manager in the Pacific for the Pacific Cable .Board, have-been selected to represent .New Zealand on the Standing . Committee appointed, to advise on matters of-detail arising out of the conduct of the Imperial wireless services

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to be opened between Great Britain on the one hand and 'Australia, Canada, and South Africa on the other. Although New Zealand is not yet directly interested in the service, it is desirable that the Dominion should be represented on the Committee from its inception. LISTENING SERVICE. In January, 1922, the continuous listening service previously observed at Radio-Awarua for the reception of distress-signals was restricted practically to correspond with the hours of daylight. On the 23rd May, 1925, the continuous watch was re-established. AURORA AUSTRALIS. A brilliant display of Aurora Australis on the nights of the 27th and 28th January had its effect upon radio operations. On the 27th the signals at Radio-Awarua were much above normal strength, but on the following day fierce crashes were in evidence. The effects on wireless signals were in no way similar to those observed during the magnetic disturbance of 1921, when considerable variation in reception was experienced. No sudden variations in signal-strength were noticed in the case of this year's phenomenon, signals from all directions remaining fairly constant. The disturbance was experienced also at other radio stations, but to a lesser degree. WIRELESS COMMUNICATION WITH ANTARCTICA. Opportunity was taken during the voyage to the Antarctic of the whaling-steamer " Sir James Clark Ross "to conduct experiments in wireless communication with Antarctica. The experimental and commercial transmissions were carried out by Radio-Awarua and the " Sir James Clark Ross,'' and were chiefly by means of short waves. ELIMINATION OF INTERFERENCE TO " LISTENERS-IN." In order to eliminate the interference caused to broadcast listeners-in by the spark transmissions from Radio-Auckland, provision was made for a combined continuous-wave and interrupted-continuous-wave valve transmitting attachment for that station. Until such time as the permanent attachment is installed use is being made during broadcasting-hours of a low-power-valve transmitting set. WIRELESS AT EXHIBITION. A wireless transmitting and receiving set installed in the departmental court at the New Zealand and South Seas International Exhibition proved of considerable interest to the general public. By means of the set the daily time signals transmitted from the Dominion Observatory at Wellington were received and reproduced through a loud-speaker in the Exhibition building. PRIVATE RADIO-STATIONS AND RADIO-DEALERS' LICENSES. The number of radio receiving licenses issued during the year was 3,588. A percentage of this number was, however, for short terms. A large number of people renewed their licenses during March, 1926 ; and it is hoped that the number of licenses issued during the coming year will be very greatly increased. Licenses were issued also in respect of 98 transmitting and receiving stations, 6 private broadcasting stations, and 1 experimental station. The number of radio-dealers' licenses issued was 191. MOUNT ETAKO PLANTATION. The considerable area planted with native trees and shrubs on Mount Etako (in the vicinity of the Wellington radio station) was increased during the year by the planting of 320 pohutukawa-trees. WIRELESS TRAFFIC. The numbers of forwarded and received radio messages show increases of 0-06 per cent, and 1-29 per cent, respectively. The amounts earned by New Zealand show a decrease under both headings of 5-14 per cent, and 2-26 per cent, respectively. The number of words of paid forwarded radio Press telegrams decreased from 123,018 to 64,502 ; 57,956 words of Press news were broadcasted free of charge to all ships and coast stations within range of Awanui. For statement of radio business transacted by New Zealand coast stations see page 39. RADIO BROADCASTING. After prolonged and unsuccessful negotiations with the New Zealand broadcasting syndicate, Mr. W. Goodfellow, of Hamilton, and Mr. A. R. Harris, of Christchurch, as trustees of a company registered as the Radio Broadcasting Company of New Zealand (Limited), undertook, on the Ist August, 1925, to provide a radio broadcasting service on the conditions laid down in the Post and Telegraph Amendment Act, 1924, and the Broadcasting Regulations, 1925. Under the agreement the company is required to take reasonable steps to provide and maintain during a term of five years an efficient broadcasting service in pursuance of the Broadcasting Regulations, and to provide any new apparatus that may be necessary to keep the stations up to date. The agreement provides also

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for two of the four stations mentioned in the regulations (one at Auckland and the other at Christchurch) to be in operation within six months after the date of the agreement. The right was retained, however, to extend the time beyond six months, provided that all reasonable steps were taken by the company to have the stations erected within that period. Further, the trustees undertook to erect stations at Wellington and Dunedin when requested by the Minister of Telegraphs so to do, and to form a company with a capital of £20,000 to ratify the agreement within a month. Except in regard to the time allowed for the erection of the Auckland and Christchurch stations the conditions of the agreement have so far been met. Although an order for the apparatus for the Auckland and Christchurch stations was placed in England by cable immediately the agreement was signed, and every effort was made to hasten delivery, the manufacturers have not been able to ship the order. It is expected, however, that shipment will not be much longer delayed. The delay is disappointing ; but, in view of the circumstances, it was agreed to extend the time allowed to the 30th June. From the beginning of April, 1925, when the annual license fee for a receiving station was raised from ss. to £1 10s., and when radio-dealers' licenses were first issued, up to the 31st July, 1925, the broadcasting stations operating in Auckland, Wellington, Christchurch, and Dunedin were subsidized out of those fees to the extent of £15 per week each. Since the signing of the agreement by Messrs. Goodfellow and Harris on the Ist August, 1925, £1 ss. out of every license fee of £1 10s. and 90 per cent, of the fees received in respect of the radio-dealers' licenses has been paid to the Broadcasting Company. The company purchased the existing Auckland, Christchurch, Dunedin, and Wellington broadcasting stations, and with the aid of additional apparatus and various improvements has carried out a satisfactory broadcasting service. There is no doubt that when the new stations are in working-order broadcasting in the Dominion will be improved. When the New Zealand and South Seas International Exhibition opened in November, 1925, the Dunedin station was transferred to the Exhibition buildings, and was able to broadcast excellent vocal and instrumental items rendered at the Exhibition. TELEPHONE-EXCHANGE SERVICE. EXTENSION OF TELEPHONE-EXCHANGE SYSTEM. The demand for telephone-exchange service was consistently steady throughout the year, and to provide telephone facilities for the 13,368 new subscribers joined up extensive construction work was necessary. As a result many rural areas previously unserved are now enjoying the benefits of telephone service. One of the most popular features of the present rating-system is its operation in suburban and rural areas where the reasonable charges for residential connections encourage the residents and settlers to avail themselves of this increasingly popular public utility. On account of the erection of power-lines having rendered inefficient many privately owned earth working sections of exchange lines, numerous requests were received for the replacement of privately owned lines by metallic circuits owned and maintained by the Department. Settlers are evidently finding this course more satisfactory and profitable than undertaking on their own account the erection and maintenance of new circuits on the metallic-circuit principle. Although this form of development is revenue-producing, it involves a good deal of construction work without any corresponding increase in the number of subscribers' stations. The amalgamation of small exchanges for the purpose of obtaining more extensive local service and longer hours of attendance has resulted in the local exchanges at Aratapu, Northcote, Southbridge, and Tangowahine being closed, and the subscribers' stations being connected with the exchanges at Te Kopuru, Birkenhead, Leeston, and Dargaville respectively. A work of considerable magnitude now in progress is the reconstruction of the whole cable system at Christchurch, which is being undertaken preparatory to the conversion of the Christchurch Exchange area to automatic working. Earthenware ducts manufactured locally are being used for accommodating the cables underground. Already 20 miles of ducts have been laid, into which 15 miles of large-size cable have been drawn. Of this cable 10 miles have already been brought into operation, enabling a much improved service to be given to 1,500 subscribers who were previously working through defective aerial cables. During the year the number of subscribers to the Whangarei Exchange passed the 1,000 mark, and from the Ist November, 1925, the status of the exchange was raised from Class 111 to Class 11. The reclassification had the effect of increasing subscribers' rentals, and also of extending the limits of the base-rate area. Among other operations, the year's work included — The opening of new manual exchanges at Kohuratahi, Okaihau, Rai Valley, Tadmor, Te Kauwhata, Upper Moutere, Waitakaruru : The conversion to automatic working of the Wellington Exchange system by the opening of the Wellington Central (Stout Street) Main Automatic Exchange : The extension of the switching equipment at 55 manual exchanges and two automatic exchanges: The erection of 1,606 miles of pole line and 12,159 miles of open aerial wire for telephoneexchange subscribers' circuits : The laying or erection of 270 miles of lead-covered cable containing 73,770 miles of wire for subscribers' circuits : The connection of 13,368 new subscribers' stations : The maintenance of 125,372 telephone stations.

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The steady growth of the telephone system in New Zealand is exemplified in the following table, which shows annually since 1917 the number of exchanges, the total wire-mileage, the revenue, and the total number of telephone stations, together with the number of telephones for each 1,000 population in New Zealand : —•

TELEPHONE STATISTICS. The manner in which the exchanges are classified, the number of exchanges in each class, and the number of stations connected therewith on the 31st March, 1926, arc shown in the following table : —

lii addition to the above there were 4,448 stations connected by private telephone-lines with departmental toll stations, and 366 stations connected with non-departmental rural exchanges, making a grand total of 130,186 telephone stations on the 31st March, 1926. Of the new connections made during the year, 4,896 were with Class I exchanges, 2,217 with Class II exchanges, 2,382 with Class 111 exchanges, and 3,873 with Class IV (country) exchanges. The waiting-list at these exchanges now stands at 960, 227, 329, and 677 respectively : total, 2,193 —a reduction of 1,429 on the figures for the year ended 31st March, 1925. The waiting-list for Class IV exchanges includes 116 applicants for connections at telephone exchanges authorized but not yet opened.

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Number of Telephone Stations. Year. Number of Miles of Wire. Revenue. Exchanges. _ AAA Total. p Per J'? 00 ropulation. £ 1917 .. .. .. 267 142,469 317,275 62,523 54-32 1918 .. .. .. 280 154,799 344,368 67,763 58-67 1919 .. .. .. 287 165,962 373,169 72,561 61-59 1920 .. .. .. 291 177,509 419,318 80,723 65-26 1921 .. .. 296 192,027 533,535 88,439 69-80 1922 .. .. .. 301 207,529 614,367 94,683 72-78 1923 .. .. .. 320 229,882 595,967 107,036 80-78 1924 .. .. .. 327 269,421 830,470 111,441 82-67 1925 .. .. .. 340 331,453 867,218 120,097* 87-09 1926 .. .. .. 341 402,433 980,281 130,186* 94-40 * Includes approximately 4,000 non-exchange stations.

Class I. Class II. [ Class III. Exchanges or Net- Exchanges or Net-1 Exchanges or Networks observing works observing works observing Class IV. Continuous Continuous Continuous Exchanges Attendance and Attendance and Attendance and or Networks Dominion having more than having 1,001 to having 201 to where the Totals. 3,500 Paying 3,500 Paying 1,000 Haying Attendance Subscribers' Main Subscribers' Main Subscribers' Main is restricted. Stations con- Stations con- Stations connected therewith. nected therewith. necied therewith. Subscribers'main stations .. 34,496 21,569 39,271 27,173 102,509 Toll and service stations .. 580 470 674 2,216 3,940 Public call offices .. . . 298 74 32 5 409 Extension stations —■ P.B.X. .. .. .. 4,964 1,201 341 96 6,602 Ordinary .. .. .. 6,645 2,858 1,447 962 11,912 Telephone stations : Class totals.. 46,983 26,172 21,765 30,452 125,372 Number of exchanges in each class 4 12 41 284 341 Percentage of new connections made 37 16 18 29 with each class of exchange during the year

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The following table shows the number of telephone stations in each engineering district in the Dominion on the 31st March, 1925 and 1926, respectively, and the percentage of increase in each case:—

The number of subscribers' stations (main and extension) connected with each of the fourteen principal exchanges on the 31st March, 1926, was —Wellington, 14-;686 ; Auckland, 14,655 ; Christchurch, 10,055; Dunedin, 7,158; Wanganui, 3,274; Hamilton, 2,574; Palmerston North, 2,574; Gisborne, 2,510 ; Invercargill, 2,450 ; Napier,|2,422 ; Hastings, 2,308 ; Masterton, 1,820 ; Timaru, 1,774 ; New Plymouth, 1,580. The number of party and rural lines on the 31st March, 1926, was 8,831, to which were connected 33,740 main stations—an increase of 444 and 2,553 respectively on the figures for the previous year. The following table shows, for each class of exchange, the respective percentages of business and residential stations, also the respective percentages of individual and party-line stations, on the 31st March, 1926 : —

The length in miles of the various items of telephone-exchange plant in existence on the 31st March, 1925 and 1926, respectively, was as follows :

The percentages of the total wire-mileage in underground and aerial cables and open aerial wire respectively for the year ended 31st March, 1926, are as under : — Telephone-exchange wire in underground cables .. .. .. .. 61 Telephone-exchange wire in aerial cables .. .. .. .. 19 Telephone-exchange wire in open aerial wires .. .. ~ .. 20

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Number of Stations on 31st March, Engineering District. 1925. I 19-6. p (1J p i • — j 1 —; — — centage Main | Extension m„ t , Main i Extension ! „ , , T Stations. Stations. a ' Stations. Stations. 0 a ' Increase. Auckland .. .. 28,528 4,262 32,790 31,528 4,668 36,196 10'4 Wellington .. .. 41,941 7,236 49,177 44,825 8,003 52,828 7*4 Canterbury .. .. 15,148 3,151 18,299 16,230 3,399 19,629 7-3 Otago .. .. 13,016 2,267 15,283 14,275 2,444 16,719 9-4 Totals .. 98,633 16,916 115,549 106,858 18,514 125,372 8*5

I Percenta e of ' Class I [ Class II Class III Class IV Dominion 1 Exchanges. Exchanges. Exchanges. Exchanges. Percentages. Business stations .. .. 43 35 | 31 24 34 Residential stations .. .. 57 65 69 76 66 100 100 100 100 100 Individual-line stations .. .. 89 74 59 42 68 Party- and rural-line stations .. 11 26 41 58 32 100 100 100 100 100

Cable. Wire. Pole-line. Under- I . . , In Under- In Aerial „ « • 1 Under all ground. Aenal " ground Cable. Cable. °P en AerlaL j Headings. Iii existence on 31st 9,499 557 641 188,102 74,532 68,819 331,453 March, 1925 Erected during year .. 1,606 187 83 65,808 7,962 12,159 85,929 Dismantled during year 48 22 62 6,631 6,016 2,302 14,949 In existence on 31st 11,057 722 662 247,279 76,478 78,676* 402,433 March, 1926 * Includes 2,666 miles of earth-working circuit.

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Graph showing the Telephone-exchange Wire in Underground and Aerial Cables and Open Aerial Wire respectively each Year since 1920.

AUTOMATIC TELEPHONE EXCHANGES. A considerable amount of installation work was carried out during the year at the different automatic exchanges, and, where necessary, provision was made for increasing the existing equipment to meet future growth of telephone business. With a view to meeting future requirements, a good deal of development work was also done in connection with the planning and extension of automaticexchange building accommodation. Installation work and the maintenance of automatic-exchange equipment made big demands on skilled labour. In connection with this work, there is scope for lads having secondary technical-school education. To meet the growing demands it has been found necessary to recruit for training purposes a number of juniors who had already acquired at secondary schools elementary experience in mechanical and electrical work. On the 31st March, 1926, automatic exchanges in operation throughout the Dominion provided service for 32,583 subscribers' main stations, or over 30 per cent, of the total. In the four metropolitan areas 23,621 subscribers' main stations, representing 22 per cent, of the total, were connected with automatic exchanges. Auckland Metropolitan Area and District Automatic Telephone Exchanges. The new automatic-exchange system in the Auckland metropolitan area has now been in operation for a little over twelve months. Satisfaction with the system and with the service given to the public is freely expressed. Notwithstanding that the total number of subscribers in the area has very largely increased, complaints received during the past year show a marked decrease compared with those received in previous years. This satisfactory state of affairs is due to the decided improvement which the system shows over the old mixed manual and automatic systems. The Devonport Automatic Exchange, with 408 stations, was completed and brought into service on the 13th March last. Subscribers connected with this exchange are now able to communicate with the metropolitan area, free of toll charges. The Takapuna Automatic Exchange is nearing completion, and when cut into service will be absorbed in the multi-office area, thus providing Takapuna subscribers with the same switching-facilities as are now enjoyed by the Devonport telephone users.

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The following extensions to the present exchange equipment are in view : Mount Eden (400 individual lines), Remuera (200 individual lines and 100 two-party lines), Ponsonby (600 individual lines and 100 two-party lines), Devonport (100 individual lines and 100 two-party lines). At the Hamilton Automatic Exchange an extension of 200 individual lines has been sufficiently advanced to allow of new subscribers being connected. The extension of the toll and rural sections of the equipment is in progress. Provision will be made during next year for an extension of 100 two-party lines and 200 individual lines. Wellington Metropolitan Area and District Automatic Telephone Exchanges. The Wellington Central Exchange (Stout Street) was cut into service on the 26th September, 1925, when the remainder of the manually operated subscribers' stations (4,600) and a number of waiting subscribers were given automatic telephone service. The automatic system was thus brought into operation in the whole of the Wellington metropolitan exchange area. Coincident with the opening of the Stout Street Exchange, there were diverted from the Courtenay Place Automatic Exchange 1,200 lines which properly belonged to the Stout Street area but had been temporarily accommodated at Courtenay Place. All public telephone business, such as applications for exchange connections, payment of accounts transfers and removals of telephones, inquiries, &c., are transacted in the public offices provided in the Stout Street new building. Facilities for the payment of accounts, however, continue to be available at the Chief Post-office. A public toll office, with hours of attendance 9 a.m. to 5 p.m., has been provided at the new building. The conversion from manual to automatic working of the telephones in the central area of the City of Wellington involved a considerable amount of preparatory work. The underground cables, which terminated in the old exchange building, had to be diverted to the new exchange in a manner that would not only not interfere with the operation of the old system prior to the cut-over, but would permit of the dissevering of the old exchange connections after the cut-over without dislocating the working of the new system. The accomplishing of this result involved the installation in the new building of nineteen cables each containing 1,200 insulated wires. In addition, the telephone equipment in subscribers' premises had to be supplemented by automatic apparatus, so arranged that a simple and rapid change could be made at the time of the cut-over from one telephone to the other. This was done with the least possible inconvenience to subscribers. In order to obtain the best possible results the installation of subscribers' apparatus was delayed until the last moment. The old equipment was recovered as early as possible. Eight thousand new telephones were installed in five weeks ; and the whole of the old apparatus was recovered in about eight days. In addition to attention to the actual telephones, the cut-over necessitated special treatment to a number of telephone accessories. To enable them to be merged satisfactorily into the automatic system the circuit wiring of twenty comparatively large private branch exchanges was altered, and 168 smaller private branch exchanges were converted from the cord-and-plug system to the key-box "interphone " system. The last-named operation involved the installing of about 1,200 key-boxes of various sizes, and the laying in subscribers' premises of 19,000 yards of telephone cable. As may be well imagined, the satisfying of the varying needs of the many types of businesses in a city such as Wellington required considerable thought on the part of the construction staff. The erection of the automatic equipment itself was a work involving 'an immensity of detail as can be gathered from a glance at the following figures : — The installation of the switching-apparatus for 6,000 subscribers' lines necessitated the making and testing of 3,850,000 soldered connections, and the use of 37,000 relays, 14,000 driving-magnets, 4,400 timing-switches, and 4,164 selecting-machines. In addition, after the erection of this apparatus the more intricate work of testing still remained to be done. The installation work was commenced at the end of April, 1924 ; and the system was brought into service at the end of September, 1925—thus to complete the whole of the work only seventeen months were taken. In addition to work at the Central Exchange it was necessary to rewire all the impulse-receiving mechanism at the other automatic exchanges in the area. As the rewiring had to be done in exchanges that were working careful organizing was necessary to obviate interruptions. The power-supply used in the automatic exchange normally comes from the city power-mains, but a storage-battery installation and an automatic cut-over mechanism have been provided to ensure uninterrupted service in the event of a breakdown in the city power-supply. Among many other subsidiary services that might be mentioned are the toll-board and the telephone directory. The latter was, in itself, a task of considerable magnitude, calling for the exercise of the greatest care and attention. A careful analysis of the exchange load had to be made in order that the new numbers might be allotted in such a manner that the traffic would be evenly distributed throughout the system. In view of the foregoing it will be appreciated that after the cut-over a few days elapsed before all minor installation defects could be removed and final adjustments made. During the year the following extensions to equipment were installed : Courtenay Place Automatic Exchange (400 exclusive lines) ; Kelburn (100 four-party lines). At Wellington South 400 individual lines are at present being installed, and at the Wellington Central and Khandallah Exchanges contracts have been let for extensions of 100 two-party lines and 200 exclusive lines respectively. To relieve the congestion in the Wellington South Telephone Exchange area consideration is now being given to the question of erecting at Miramar an automatic branch exchange to serve the Lyall Bay - Miramar - Seatoun area.

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Provision is being made for an extension of 100 two-party lines at the Masterton Exchange. The more modern portion of the Strowger automatic equipment previously in use in Auckland is now in course of installation at Napier. Prior to its being brought into operation at Napier the equipment is being completely overhauled and readjusted so that it will function with precision and furnish an up-to-date automatic system. Additional switching-apparatus which is being installed at the Palmerston North Automatic Exchange will provide increased accommodation for subscribers. At Wanganui provision has been made for utilizing a portion of the latest type of Strowger automatic material released from Auckland, which, when installed, will provide accommodation for 300 additional subscribers. The Blenheim Automatic Exchange equipment is taxed almost to its full capacity, and provision is being made for an extension of 100 exclusive lines and 10 rural lines. The automatic-exchange equipment for the Dannevirke, Hawera, and Stratford Exchanges is expected to arrive in the Dominion shortly, and as soon as the apparatus is available a commencement of the installation work will be made. Christchurch Metropolitan Area Automatic Telephone Exchanges. As soon as the Auckland City exchanges were converted to automatic working a section of the manual switchboard was transferred to Christchurch in order to tide over the transition period pending the completion of the Christchurch underground distribution work and automatic-exchange installations. As a result of this action the Department was enabled to increase the capacity of the exchange by 400 lines. At the present rate of progression the time when this increased capacity will be fully availed of is close at hand. The system in Christchurch at present is a mixed one, being partly automatic and partly manual ; and when the manual section was transferred from Auckland opportunity was taken to introduce into the Christchurch system certain features which greatly improved the service and which will continue in operation until the full-automatic system is introduced. Almost the whole of the apparatus for the Western Electric full-automatic exchanges at Christchurch is now in hand. Satisfactory progress is being made with the installation work ; and a good deal of the equipment is already in position. This is a work of considerable magnitude, and every effort is being made to hasten its completion so that it will be ready when the final stages of reconstruction of the outside cable and aerial plant are reached. The auxiliary Strowger automatic apparatus which is at present in use has "given satisfactory service during the year. Dunedin Metropolitan Area and District Automatic Telephone Exchanges. In April, 1925, a section of the Auckland manual switchboard, which was released when the Auckland Exchange was converted to automatic working, was transferred to Dunedin, and. it is now being utilized to provide accommodation for new subscribers until the automatic system is brought into operation. The Dunedin Exchange will ultimately operate on full automatic principles, and will in every respect be similar to the automatic systems in operation in the Auckland and Wellington metropolitan areas. The installation of the automatic-exchange equipment in the Dunedin area is well advanced, but a considerable amount of detail work still remains to be done before the intricate mechanism can be made available for service. The Oamaru Automatic Exchange continues to provide an efficient and smooth-running service. The present equipment has sufficient capacity to meet all immediate requirements. Air-conditioning Plants for Automatic Exchanges. The air-conditioning plants introduced at the latest machine switching exchanges have given good service, maintaining the air in the switch-rooms at suitable relative humidities and keeping it free from dust. The elimination of dust and excessive humidity has largely contributed to the comparative freedom from apparatus irregularities at those exchanges. The benefits derived have fully justified the introduction of air-conditioning plants as part of exchange equipment. " Interphone " Installations. A system of telephone intercommunication for business houses having up to twenty extension stations has been introduced. In addition to the scattered departments of a business house being linked up, each extension station is able to connect directly with the central telephone exchange. The system is at present confined to the Wellington Exchange area, but as further equipment becomes available other centres will be given similar service. In Wellington City 168 subscribers have availed themselves of the so-called " interphone " system. The simple manipulation of the " interphone," the low operating-costs, and the quick and efficient inter-office service provided thereby are features which are making the system an increasingly popular adjunct to business stations. Automatic Private Branch Exchanges. A commencement has been made in the introduction of small automatic-exchange units (private automatic exchanges) for use in business premises where the "interphone " key-box system does not fully meet requirements as regards number capacity, secrecy, or variety of services rendered. Further private-exchange equipment is now under order. It is expected that this important aid to efficient business organization will be greatly in demand.

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Hereunder is a return showing automatic-exchange equipment installed and in use in the Dominion on the 31st March, 1926 : —

In the telephone statistics of the world (compiled on the Ist January, 1924) the United States leads as regards density, with 13*7 telephones per 100 of population; Canada is second, with 11 telephones ; Denmark is third, with 8-7 telephones ; while New Zealand takes fourth place, with 8-3 telephones. Australia and Great Britain occupy seventh and eleventh places respectively, with 5 and 2-5 telephones per 100 of population. The number of telephones per 100 of population of the world is I*4.

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Number of j j Total Number Party Lines Number Number Total Number Numb( , r of installed. of j of .Number Exchange. Individual Individual Party- of Ext e nsion Auto ° matic Lines Line line Main *• mi , installed. | Two- , Four- , Stations. Stations. Stations. a 1 n Stations 6 party, j party. | Auckland Exchange Area — Wellesley Street .. .. 7,200 .. 100 5,501 120 5,621 1,906 7,527 Remuera .. .. .. 1,600 .. 100 1,493 235 1,728 129 1,857 Mount Eden .. .. 1,600 .. 100 1,579 274 1,853 83 1,936 Ponsonby.. .. .. 1,200 .. 100 1,049 94 1,143 95 1,238 Onehunga .. .. 400 .. 307 .. 307 31 338 Devon port .. .. 500 .. .. 432 .. 432 22 454 Christchurch Exchange Area — Hereford Street* .. 1,500 .. .. 1,498 .. 1,498 155 1,653 St. Albans* .. .. 500 .. .. 497 .. 497 53 550 Sydenham* .. .. 300 .. 299 .. 299 30 329 Wellington Exchange Area — Courtenay Place .. 3,800 100 100 3,058 316 3,374 733 4,107 Wellington South .. 1,400 100 100 1,355 489 1,844 113 1,957 Kelburn 1,200 .. 100 925 128 1,053 61 1,114 Khandallah .. .. .. 100 100 115| 235 350 7 357 Stout Street .. .. 7,600 .. 100 3,430 192 3,622 2,608 6,230 Single-office exchanges — Blenheim .. .. 700 100 687 142 829 93 922 Hamilton .. .. 1,600 .. 100 1,461 311 1,772 283 2,055 Masterton .. .. 1,000 .. 100 987 188 1,175 192 1,367 Oamaru .. .. 700 100 681 73 754 92 846 Palmerston North .. 1,800 .. 100 1.827J 207 2,034 248 2,282 Wanganui .. .. 2,500 200 100 2,046 352 2,398 533 2,931 Totals .. .. 37,100 500 1,500 29,227 3,356 32,583 7,467 40,050 * Auxiliary apparatus. t Party lines used for individual stations. J Twenty-seven party lines used for individual stations.

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INFORMATION BUREAUX. Arrangements were made for much useful information to be made available to subscribers through the " Information " attendants at the exchanges at each of the four chief centres. In addition to information relative to the telephone numbers of new subscribers, to removals and transfers of existing connections, and to other matters of general information concerning the telephone service, subscribers to the exchanges at the four centres may obtain the correct time, the results of sporting events (except horse-racing) as supplied by the secretaries of athletic associations and clubs, information regarding departures and arrivals of overseas mail-steamers, the times of closing of overseas mails, the names of ships within range of New Zealand radio stations, and times of departure and arrival of the more important trains, &c. PUBLIC CALL OFFICES (COIN IN THE SLOT). The revenue derived during the year from public call offices (coin in the slot) bears testimony to the value of the utility to the public. As an indication of the extent to which some of these telephones are used it may be stated that the total number of calls made from the public call offices outside the General Post Office, Wellington, was nearly a quarter of a million. Twenty-nine new installations were completed during the year. This number includes four temporary installations provided at the Dunedin Exhibition. In several of the larger towns additional installations are required to meet growing needs and the question of sites is being carefully looked into. The number of slot telephones available at Auckland and Wellington particularly will probably be materially increased. In August, 1925, the flat rate of Id. was made to apply to calls from all public call offices situated within the base-rate area of any exchange. Later, a charge for calls from public call offices outside the base-rate area was fixed as follows : Up to three miles from the base-rate boundary, 2d. ; beyond three miles from the base-rate boundary, 3d. The reduced charge which affects quite a number of installations is being brought into operation as equipment becomes available for the necessary alteration in mechanism in the apparatus affected. It is anticipated that the increased number of calls will soon more than make good the loss of revenue resulting from the lowering of the charge. The new type of public-call-office telephone, referred to in last year's report, for use in areas where the telephone system is wholly automatic is now in general use in three automatic telephone centres —namely, Auckland, Wellington, and Palmerston North. With the adoption of the uniform charge of one penny per call from all public call offices in base-rate areas, the new automatic telephone has superseded in the base-rate areas at the automatic centres mentioned the one-penny, two-penny, and three-penny manual types previously in use. The operation of the new telephone is similar in all respects to that of the subscriber's automatic instrument, with the single exception that when the wanted party answers the call it is necessary for the caller to insert a penny in the machine to enable conversation to take place,. The adoption of this " coin-last " principle was immediately recognized by the users of public call offices as a decided advance upon the methods previously in existence, and this feature combined with the uniformly satisfactory operation of the automatic telephones has caused a marked increase in the popularity of public call offices. The total number of public call offices in operation on the 31st March, 1926, was 409, and the revenue derived from them amounted to £25,187, an increase of £540 on the figures for the previous year. LABORATORY. With the rapid development now taking place in* scientific and technological matters relating to telegraph and telephone services the technical laboratory of the Department is being called upon year by year to carry out an increasing number of investigations regarding the characteristics — mechanical, chemical, and electrical—of materials and apparatus before the materials and apparatus are brought into service. The number of tests and investigations now carried out annually is approximately 3,000, and the total value of the material coming under review is about £300,000. These developments have rendered necessary an extension of the laboratory premises, the greater amount of the additional space being utilized for the accommodation of thfe more delicate testing instruments and apparatus. The careful study and examination of the characteristics of electrical plant are becoming more and more essential in order that the Department may secure the full benefits which result from the application to telegraphy and telephony of modern invention and discovery.

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APPENDIX.

DESIGNATION OF OFFICES CHANGED.

CABLE BUSINESS. The Dominion's outward International and Australian cable business, excluding Press, for the years 1925-26 and 1924-25 was as follows : — INTERNATIONAL. Number of Value. Messages. £ 1925-26 .. .. 165,206 .. .. .. 189,221 1924-25 .. .. 150,633 .. .. .. 185,468 Increase 14,573 = 9-67 per cent. Increase 3,753 = 2-02 per cent. AUSTRALIAN. Number of Value. Messages. £ 1925-26 .. .. 149,526 .. .. .. 30,626 1924-25 .. .. 133,618 .. .. .. 27,409 Increase 15,908 = 11-90 per cent. Increase 3,217 = 11-73 per cent. There was a total increase of 30,481 messages, and an increase in value of £6,970. Of the total revenue received on forwarded cable messages —viz., £219,847 —£206,947 was paid to other Administrations and £12,900 was retained by New Zealand. RECEIVED CABLE MESSAGES. The number of cable messages received in New Zealand during the years 1925-26 and 1924-25, exclusive of Press, was as follows - International. Australian. 1925-26 .. .. 139,680 .. .. .. 140,919 1924-25 .. .. 125,639 .. .. .. 126,297 Increase 14,041 = 11-18 per cent. Increase 14,622 = 11-57 per cent. The total revenue earned by New Zealand on received cable messages during the year 1925-26 was £10,441 as compared with £9,318 for 1924-25. RADIO-TELEGRAMS. The radio business transacted by the New Zealand coast stations during the years 1925-26 and 1924-25 was as follows :—

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Postal District. Changed from Changed to Wellington .. .. .. .. Whakaronga . . .. Whakarongo. Nelson .. .. . . .. Onakaka .. .. Onekaka. Hamilton . . .. .. . . Onekeneke .. .. The Terraces.' Invercargill . . .. .. . . Matuku* .. .. Glenelg. New Plymouth .. . . .. Tahurangi .. . . North Mount Egmont. Auckland .. .. .. .. Flax-mill.. .. .. Parore. Wanganui . . . . . . .. Ohutu . . . . .. Ohotu. Gisborne .. . . .. .. Ruatorea .. .. Ruatoria. * Another office open under same name.

Forwarded. Received. Year. Number of I Amount Number of Amount earned by Total Value. — earned by Messages. Words. New Zealand. Messages, | Words. New Zealand. £ £ £ 1925-26 .. .. 16,270 241,621 3,467 7,064 26,002 280,71'6 4,669 1924-25 .. .. 16,259 293,189 3,655 7,331 25,669 270,814. 4,777 Increase .. 11 .. .. .. 333 9,902 Decrease .. .. 51,568 188 267' .. .. 108

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Table No. 1. Table showing the Number and Amount of Money-orders issued and of Money-orders payable in New Zealand since the Year 1863. Issued in the Dominion.

Drawn on the Dominion.

40

Where payable. Totai. Commission in the Dominion. United Kingdom.* Fore 'S n Countries.t Year. received. No. Amount. No. Amount. No. Amount. No. Amount. No. Amount. _ 1 ]___ £ £ £ \ £ | £ \ £ 1863 1,057 2,201 9.614 4.74° 21,944 j 4,645 24,145 J .. .. 11,586 55,7°3 1873 3,562 34-288 142,642 11,913 48,548 6,150 28,068 .. .. 52,351 219,258 1883 9,023 132,232 402,559 26,211 91,634 14."3 46,94° | •• •• 172,556 54 I > I 33 1893 10,249 146,133 576,359 29,616 86,545 35,208 88,025 j .. .. 210,957 750,929 1903 15,882 273,535 1,108,067 63,309 157.790 59,468 150,368 .. .. 396,312 1,416,225 1913 16,872 516,536 2,821,624 100,634 336,992 73.575 199,158 •• .. 690,745 3,357,774 1914 16,336 536,674 2,933,911 87,774 299,155 67,070 194,439 .. .. 691,518 3,427,505 1915 15,819 511,487 2,986,021 81,483 263,371 71,890 222,426 .. .. 664,860 3,471,818 1916 15,966 520,476 3,108,197 60,876 214,254 70,817 221,700 17,186 62,936 669,355 3,607,087 1917 16,077 508,209 2,977,997 54,852 216,835 63,662 212,144 15,960 69,669 642,683 3,476,645 1918 17,487 508,813 3,120,183 48,133 198,452 61,899 217,512 19,655 "3,224 638,500 3,649,371 1919 19,329 558,344 3,994,055 48,592 224,667 58,974 240,437 24,381 144,900 690,291 4,604,059 1920 31,302 572,432 4>69 i ,7 i 7 49,184 235,295 66,027 310,409 12,031 39,355 699,674 5,276,776 1921 31,268 535,897 4,276,158 52,021 254,342 67,893 292,036 13,572 28,284 669,383 4,850,820 1922 27,431 526,906 3,776,896 53,079 221,447 64,523 249,454 15,435 30,732 659,943 4,278,529 1923 28,357 545,6o5 3,849,423 54,461 223,143 68,044 284,778 16,869 32,815 684,979 4,390,159 1924 28,542 580,569 4."3,8i3 57. 1 75 232,436 75,743 312,624 18,024 34, 0 56 731,5" 4,692,929 1925 28,843 610,972 4,406,461 64,777 259,439 72,519 278,050 18,421 33,280 766,689 4,977,230

Where issued. Total. , t-v . . it • _ j v j * Australia and other British u ~ . . , Year. In the Dominion United Kingdom.* Possessions. Foreign Countries.! No. Amount. No. Amount. No. Amount. No. Amount. No. Amount. £ £ £ £ £ 1863 2,067 9,169 415 1,824 558 3>°7 8 •• •• 3 >°4° 14,071 1873 34,288 142,642 1,482 6,626 1,668 7,689 .. .. 37»438 1 561957 1883 132,232 402,559 3.725 15.553 5.697 23,300 .. .. 141,654 44 1 .4 11 1893 146,133 576,359 8,746 32.617 10,679 40,929 •• •• 165.558 649,905 1903 273,535 1,108,067 13,035 49,I8I 17,777 68,340 .. .. 304,347 1,225,589 1913 516,536 2,821,624 12,693 70,084 110,487 .. .. 560,679 3,002,194 1914 536,674 2,933,9" n,439 60,324 3°,974 110,032 .. .. 579,087 3,104,268 1915 511,487 2,986,021 12,409 58,189 30,356 107,510 .. 554,252 3,151,720 1916 520,476 3,108,197 8,337 39,908 35,8oo 128,370 2,445 10,587 567,058 3,287,162 1917 508,209 2,977,997 6,872 34,973 36,978 123,390 2,311 10,348 554,370 3,146,708 1918 508,813 3,120,183 6,802 40,365 33,868 114,652 2,281 12,055 551,764 3,287,255 1919 558,344 3,994.055 8,498 65,526 25,697 104,093 2,410 12,353 594.949 4.176,027 1920 572,432 4,691,717 8,806 67,552 22,946 111,325 1,416 4.420 j 605,600 4,875,014 192X 535,897 4,276,158 8,696 65,818 24,197 122,938 1,366 6,104 : 57°, i 56 4,471,018 1922 526,906 3,776,856 8,788 1 65,516 25,095 121,331 1,587 6,124 j 562,376 3,969,867 1923 545,605 3,849,423 11,042 63,313 26,042 123,703 1,813 8,669 j 584,502 4,045,108 1924 580,569 4,113,813 8,310 60,862 28,543 127,350 2,348 10,309 | 619,770 4,312,334 1925 610,972 4,406,461 9,857 69,098 27,318 1x9,073 2,140 8,391 j 650,287 4,603,023 * Includes foreign offices to year 1915. f In previous years included in United Kingdom and foreign offices.

6—F. 1.

F.—l.

Table No. 2. Table showing the Number and Value of Postal Notes sold from 1st January, 1886— the Date upon which they were first issued— to 31st March, 1926.

41

Number of Postal Notes sold. Total. Year. j — j . j j ; | j ; ! At Is. At Is. 6d. At 2a. At 2a. Sd. At 3a. ; At 5s. | At 7s. 6d. At 10s. At 12s. ed. j At 15s. At 17s. 6d. | At £1. At £5.* ; Number. Value. I £ Quarter ended Mar. 31,1880 3,019 2,046 1,-012 .. 2,039 909 j 2,379 695 992 425 2,866 .. 16,442 6,910 1886-87 .. ! 16,605 12,283 .. 6,647 . 11,566 5,729 1 13,103 4,090 5,187 2,375 14,961 .. 92,546 37,659 1887-88 .. 22,467 17,167 9,162 .. 15,553 7,671 17,487 5,278 6,940 2,952 17,578 .. 122,255 47,729 1888-89 .. .. 27,428 21,900 .. 11,912 .. 19,741 9,477 21,149 6,618 8,243 3,633 19,778 .. 149,879 56,842 1889-90 .. .. 32,754 25,387 .. 14,478 .. 23,550 10,894 24,011 7,809 9,386 4,158 22,596 .. 175,023 65,484 1890-91 .. .. 35,915 28,559 .. 16,092 .. 25,204 12,229 25.906 7,969 10,172 4,366 23,503 .. 189,915 69,722 1891-92 .. .. 42,416 33,722 .. 19,383 .. 29,550 14,019 30,132 9,058 11,611 4,953 25,839 .. 220,683 79,326 1892-93 .. .. 48,612 38,849 .. 22,038 .. 33,012 16,072 32,747 9,904 12,330 5,369 28,969 .. 247,902 87,857 1893-94 .. .. 56,761 44,706 .. 25,461 .. 37,771 18,096 37,687 11,016 13,800 6,156 33,935 .. 285,389 101,002 1894-95 .. . . 62,306 49,846 .. 28,975 .. 43,829 20,423 43,167 11,864 15,567 6,790 36,601 .. 319,368 112,308 1895-96 .. .. 68,454 56,185 .. 32,801 .. 49,204 22,802 47,787 13,601 17,191 7,020 33,390 1,192 349,627 123,368 1896-97 .. ■■ 74,534 I 62,056 .. 35,322 .. 54,219 -24,871 51,963 14,365 18,102 7,406 32,868 1,090 376,796 129,012 1897-98 .. -. 81,958 | 69,981 .. 38,617 .. 60,843 26,968 55,748 15,463 19,477 7,904 32,179 728 409,866 134,378 1898-99 .. 86,529 ! 72,710 .. 41,991 .. 64,386 28,448 59,631 16,202 19,990 8,193 32,696 673 431,449 139,957 1899-1900 .. .. 93,762 | 77,431 .. 44,384 .. 70,416 30,680 63,787 16,957 21,393 8,539 33,491 607 461,447 1+7,686 1900-1901 .. 85,478 | 68,068 13,834 52,691 14,702 80,630 24,497 71,001 13,304 23,875 6,799 35.067 560 490,506 I 154,436 1901-1902 .. .. 49,529 | 30,255 62,285 70,683 65,467 109,663 .. 92,708 .. 32,128 .. 43,042 556 556,316 ! 173,317 1902-1903 .. .. 54,268 | 33,409 70,122 76,613 75,700 119,593 .. 102,641 .. 34,508 .. 48,852 558 616,264 | 191,905 1903-1904 .. .. 61,379 37,514 85,909 86,626 89,276 134.270 .. 114,755 .. 38,030 .. 58,629 656 707,044 ! 220,070 1904-1905 .. .. 65,484 40,263 86,711 96,228 99,739 154,281 .. 130,430 .. 42,317 .. 69,206 688 785,347 ! 250,123 1905-1906 .. 74,389 45.358 98,503 108,493 114,411 167,430 .. 143,216 .. 46,228 .. 76,508 788 875,324 276,279 1906-1907 .. - - j 82,417 54,375 106,311 120,321 128,384 187,083 .. 159,045 .. 51,559 .. 91,193 954 981,642 314,053 1907-1908 .. .. | 89,906 58,202 124,052 136,392 143,854 205,500 .. 171,951 .. 57,637 .. 104,714 423 1,092,631 j 347,300 1908-1909 .. - . 97,285 | 59,484 153,925 162,588 146,148 227,471 .. 188,677 .. 62,916 .. 123,786 .. 1,222,280 : 389.143 1909-1910 .. .. I 113,825 I 67,406 181.791 195,168 166,486 261,045 .. 214,453 .. 70,967 .. 143,611 .. 1.414,752 I 447,619 1910-1911 .. ■ ■ 130,645 i 79,792 211,298 244,941 201,569 301,707 .. 242,854 .. 82,253 .. 171,900 .. 1,666,959 1 524,943 1911-1912 .. .. 141,504 [ 85,130 236,665 263,829 215,984 337,338 .. 261,600 .. 88,693 .. 190,82.3 .. 1,821,566 574,980 1912-1913 .. .. 154,201 | 92,342 264,844 279,311 220,109 367,942 .. 283,206 .. 95,535 .. 213,153 .. 1,970,643 636,473 1913-1914 .. .. 172,400 j 103,753 298,669 324,417 256,231 418,712 .. 312,870 .. 106,560 .. 245,230 .. 2,238,842 721,743 1914-1915 .. • • 182,733 I 107,483 307,934 346,011 263,522 444,427 .. 325,071 .. 107,506 .. 229,640 .. 2,314,327 725,118 1915-1916 .. .. 186,873 | 114,570 319,115 364,086 267,383 461,137 .. 334,277 .. 111,095 .. 211,543 .. 2,370,079 723,314 1916-1917 .. 184,873 [112,639 322,946 343,031 260,956 440,215 .. 301,825 .. 108,978 .. 211,000 .. 2,286,463 695,819 1917-1918 .. ■ 187,005 115,867 316,266 337,418 258,421 401,696 .. 252,396 .. 103,348 .. 194,180 .. 2,166,597 638.246 1918-1919 .. 181,824 114,553 299,791 326,398 253,728 381,202 .. 238,337 .. 102,467 .. 192,751 .. 2,091,051 619^605 1919-1920 .. 196,327 | 121,037 310,105 339,341 268,032 396,994 .. 246,688 .. 110,819 .. 208,177 .. 2,197,520 655,910 1920-1921 .. 217,553 120,888 309,649 342,040 266,119 410,584 .. 254,868 .. 123,917 .. 234,601 .. 2,280,219 705,027 1921-1922 .. .. 239,187 | 120,780 314,035 352,681 259,372 445,995 .. 269,863 .. 137,192 .. 238,517 .. 2,377,622 739,783 19°2- 1923 .. .. 262.172 130,275 331,376 348,779 236,877 475.947 .. 276.650 .. 138,621 .. 233. S09 .. 2,434.506 747,025 1923-1924 .. •• 285,065 145,277 366,241 385,307 247,915 528,178 .. 299,987 .. 151,288 .. 243,519 .. 2,652,777 804,343 1924-1925 .. .. 297,019 154.406 397,666 428,707 253,311 577,873 .. 316,947 .. 162.281 .. 258,123 .. 2,846,333 860,029 1925-1926 .. .. 318,454 1159,549 448,307 458,634 254,038 607,000. ..' 339,864 .. 170,376 .. 284,500 .. 3,04-0,722 922,873

F.— J

Table No. 3. Table showing the Number and Amount of Transactions at the Money-order Offices during the Year 1925, and Savings-bank Offices of New Zealand during the Year 1925-26.

42

Money-orders. Savings-banks. Postal District. Issued. Paid. Number Deposits. Number Withdrawals. of New ; L of I Accounts Accounts Number. i Commission. Amount. j Number. Amount. opened. i Number. Amount. closed. Number. Amount. I I I L_ ! ! I i £ £ £ £ £ Auckland .. .. .. 139,152 5,254 821,052 168,415 1,103,335 17,493 256,587 5,703,522 13,697 236,944 5,774,584 Blenheim .. .. .. 9,160 298 53,463 4,519 33,756 965 14,923 302,510 753 12,572 323,977 Christchurch .. .. .. 68,222 2,593 454,113 71,130 593,925 12,513 218,973 5,020,936 9,357 195,312 5,127,256 Dunedin .. .. .. 62,949 2,139 359,804 62,651 435,974 6,546 118,005 2,398,705 5,420 97,277 2,516,006 Gisborne .. .. .. 19,590 701 133,258 9,807 83,491 2,410 33,351 683,309 1,572 26,637 671,748 Greymouth .. .. .. 21,960 713 125,210 10,753 67,782 1,291 16,961 372,385 1,104 11,742 379,576 Hamilton .. .. .. 76,660 2,394 469,115 40,695 258,248 7,097 77,484 1,503,788 5,086 55,894 1,483,785 Invercargill .. .. .. 33,075 1,047 193,159 21,703 141,223 2,792 38,203 816,988 2,348 32,040 941,598 Napier.. .. .. .. 37,017 1,289 258,567 25.040 205,289 5,228 66,884 1,609,284 6,268 57,493 1,865,551 Nelson.. .. .. .. 16,496 551 99,644 12,344 87,275 1,458 240,049 462,370 1,218 20,384 525,000 New Plymouth .. .. .. 32,196 1,038 193,882 20,809 170,799 4,159 54,213 1,270,954 3,178 41,066 1,285,992 Oamaru .. .. .. 9,660 282 94,949 4,463 29,376 894 14,152 372,340 758 12,644 371,760 Palmerston North .. .. 21,794 595 148,873 14,346 105,717 13,695 61,656 2,220,070 2,146 42,089 1,249,554 Thames.. .. .. .. 29,740 965 182,290 13,160 86,773 2,792 29,320 627,829 2,297 18,828 642,652 Timaru.. .. .. .. 20,269 643 224,160 10,423 72,451 2,389 35,374 923,546 1,822 31,277 975,256 Wanganui .. .. .. 41,953 1,256 301,912 22,235 151,639 4,357 63,727 1,311,045 3,637 53,168 1,406,564 Wellington .. .. .. 110,693 4,237 763,318 134,715 947,066 17,040 310,943 6,044,287 20,114 245,652 6,868,608 Westport .. .. .. 13,205 423 70,006 4,639 28,086 606 8,509 132,472 509 5,029 141,412 Western Samoa .. .. .. 1,813 104 16,462 216 1,340 513 2,326 42,476 119 1,138 40,476 Rarotonga .. .. .. 1,085 70 13,993 534 14,268 209 890 14,804 37 799 11,151 i " : Grand totals .. .. 766,689 26,592 J 4,977,230 652,597 4,617,813 104,447 1,446,530 31,833,620 81,440 1,197,985 32,602,506

7—F. 1

F.—L

Table No 4. POST OFFICE SAVINGS-BANKS.— GENERAL STATEMENT. Table showing the Business of the Post Office Savings-banks in the various Postal Districts in New Zealand during the Year ended 31st March, 1926.

43

°Offlc| t Num .ber Amoutt Number Average Cost Qf Cost If Number Number Nu mber Total Amount imoSIt S bank 8 s S Deposits Deposit With- Total Amount of of each Deposits over Withdrawals Transac- Interest Accounts Accounts teS?ain tS Cred^frfaU' 6 the Credit" Postal Districts. Open at r <| cel . yed received during received dra ?als Withdrawals Withdrawal Withdrawals over Deposits : durln „ ,t ion - for the opened closed Open Accounts, j of each the dl S ln£ the Period during : during during the Period. during during during !' 0, g£8 ! Deposit Period. during during '"5A& inclusive of ! Open AcClose of t, the tile : ' e e .n the Period. the Period. jPeriod , or . the the of the Interest to the count at the Perlod - Period. Perl0,J - Period - j Period. with . Perlod PerioeL j of the close of the Period) Close of Period. j drawal. renoa. ' the Period. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. i £ d. £ s. d.' £ s d £ s d Auckland .. .. 183 256,587 5,703,521 16 3 22 4 7 236,944 5,774,583 19 7 24 7 5 .. 71,062 3 4 : 277.025 9 4 1 17,493 13,697 133,098 7,764,890 14 Tj 58 6 9 Blenheim .. .. 15 14,923 302,510 12 8 20 5 5 12,572 323,977 0 2 25 15 5 .. 21,466 7 6 .. .. 23,150 3 4 965 753 10,112 636,017 7 10 62 17 11 Christchurch .. 73 218,973 5,020,935 11 9 22 18 7 195,312 5,127,256 2 7 26 5 0 .. 106,320 10 10 j .. 275,877 13 11 12,513 9,357 112,919 7,583,129 5 10 67 3 1 Dunedin .. .. 74 118,005 2,398,705 4 7 20 6 6 97,277 2,516,006 0 0 25 17 1 .. 117,300 15 5< ! 173,989 1 S' 6,546 5,420 71,902 4,735,799 6 9 65 17 3 i | Gisborne .. .. 28 33,351 683,308 17 0 20 9 9 26,637 671,748 4 2 25 4 4 11,560 12 10 .. .. .. 39,732 13 81 2,410 1,572 19,320 1,102,877 18 7 57 1 8 Greymouth .. 25 16,961 372,385 1 0 21 19 1 11,742 379,575 14 11 32 6 8 .. 7,190 13 11 .. j 29,750 18 4' 1,291 1,104 12,800 811,309 16 2 63 7 8 Hamilton .. .. 84 77,484 1,503,788 8 3 19 8 2 55,894 1,483,785 8 7 26 10 11 20,002 19 8 .. .. .. 78,323 15 4; 7,097 5,086 33,743 2,210,627 8 7 65 10 3 InvereargiU .. 37 38,203 816,987 19 0 21 7 8 32,040 941,597 14 5 29 7 8 .. 124,609 15 5 70,794 19 4 2,792 2,348 28,759 1,867,206 11 5 64 18 6 Napier .. .. 37 66,884 1,609,284 8 0 24 1 2 57,493 1,865,550 13 6 32 8 11 .. 256,266 5 6.. .. 84,500 1 6 5,228 6,268 36,803 2,267,108 0 6 61 12 1 Nelson .. .. 31 24,049 462,370 7 8 19 4 6 20,384 525,000 0 0 25 15 1 .. 62,629 12 4 .. .. 34,872 9 3 1,458 1,218 16,218 935,886 18 6 57 14 1 New Plymouth .. 40 54,213 1,270,954 4 4 23 8 11 41,066 1,285,992 5 2 31 6 4 .. 15,038 0 10 .. .. 67,758 0 4 4,159 3,178 28,701 1,917,499 8 6 66 16 2 Oamaru .. .. 11 14,152 372,340 3 10 26 6 3 12,644 371,759 11 7 29 8 1 580 12 3| .. .. .. 25,266 6 10 894 758 9,031 694,422 4 4 76 17 11 *Palmerston North .. 43 61,656 2,220,069 17 4 36 0 2 42,089 1,249,553 16 8 29 13 9 970,516 0 8 .. . . .. 68,690 7 6 13,695 2,146 26,865 2,263,943 13 6 86 1 2 Thames .. .. 41 29,320 627,829 5 0 21 8 3 18,828 642,652 1 1 34 1 8 .. 14,822 16 1 .. .. 39,071 1 4 2,792 2,297 20,740 1,096,439 4 0 52 16 4 Timaru .. .. 18 35,374 923,546 8 2 26 2 2 31,277 975,256 6 11 31 3 7 .. 51,709 18 9 .. .. 59,279 9 1 2,389 1,822 21,834 1,609,201 10 1 73 14 0 Wanganui.. .. 44 63,727 1,311,045 2 0 20 11 6 53,168 1,406,563 11 0 26 9 1 .. 95,518 9 0.. .. 71,300 14 9 4,357 3,637 34,382 1,963,244 6 9 57 2 0 Wellington .. 59 310,943 6,044,287 4 11 19 8 9 245,652 6,868,608 5 0 27 19 4 .. 824,321 0 1 .. .. 297,118 15 5 17,040 20,114 133,535 8,040,958 6 11 60 4 4 Westport .. .. 18 8,509 f32,471 13 5 15 11 4 5,029 141,412 8 11 28 4 0 .. 8,940 15 6 .. .. 12,757 19 5 606 509 5,920 345,606 18 9 58 7 7 WesternSamoa .. 3 2,326 42,475 12 10 18 5 3 1,138 40,475 10 10 35 7 4 2,000 2 0 .. .. .. 1,561 1 0 513 119 975 44,611 18 2 45 15 1 Rarotonga .. 6 890 14,803 11 5 16 13 4 799 11,151 2 1 13 19 1 3,652 9 4 .. .. .. 756 15 10 209 37 498 20,540 10 8 41 4 11 Totals for year ended 870 1,446,530 31,833,621 9 5 22 0 1 1,197,98532,602,505 17 2 27 4 3 .. 768,884 7 9 95,000 8-62 1,731,577 17 2 104,447 81,440 758,155 47,911,321 10 3 11 31st March, 1926 1 * Palmerston North created a chief office, 1st July, 1925.

F.—l

Table No. 5. POST OFFICE SAVINGS-BANKS— GENERAL STATEMENT. Table showing the Business of the Post Office Savings-banks in New Zealand, by Ten-year Periods, from the Date they were established in February, 1867, to the 31st December, 1918, and Yearly Periods thereafter to the Year ended 31st March, 1926.

44

of Post Average a™„„„ Number Number "< Total Amount Amount Office Number of m . , . * Amount of Number Average »*«««« 01 standing to the standing to Savings- Deposits T °J a ' ) each of With- Total Amount of f™™ , 0 ' ® XC '?, 3S t™ w„-„+w Accounts Accounts Credit of all the Credit Year. banks received ° 1D ®F? 5l 'f„„ Deposit drawals Withdrawals f ?5 v?« opened closed Open Accounts, of each Open at durit.g ?he Year received during during the Year. furinc dwine tee Year durfne the Year the posiWr" during during at g °lose inclusive of Open the the Year. the Year. during the the Year. during the Year, during the iear. the posit or , th the at Close i ute rest to the Account at Close of Year. the Year. Yea.. With- Year. Year. ° f * ® Close of the Year. Close of the Year drawal. Year. the Year. £ a. d. £ s. d. if s. (1. £ s. d.| £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Year ended 31st Mar., 870 ;1,446,53031,833,621 9 5 22 0 11,197,98532,602,505 17 2! 27 4 3 .. 768,884 7 9 95,000 0 8-62j 1,731,577 17 2104,447 81,440 758,15547,911,321 10 5 63 3 11 1926 Year ended 31st Mar., 855 1,371,009 29,582,897 2 9 21 11 71,108,29130,413,609 3 11 27 8 10 .. 830,712 1 2 95,000 0 9-191,680,919 10 10 95,595 70,604 735,148 46,948,628 1 0 63 17 3 1925 Year Mar., 846 1,261,14129,598,372 4 8 23 9 4 1,075.037 29,510,320 19 6 27 9 0 88,051 5 2 .. 90,000 0 9-24 1,649,976 4 8 92,465 73,098 710,157 46,098,420 11 4 64 18 3 1924 Year ended 31st Mar., 840 1,175,10426,682,426 11 4 22 14 21,081,30027,769,262 16 3 25 13 8 .. 1,086,836 4 11 70,650 0 7-51 1,605,525 1 10 78,490 66,630 690,790 44,360,393 1 6 64 4 4 1923 Year ended 31at Mar., 831 1.227,59129,125,997 10 0 23 14 61,119,662 30.236,231 6 5 27 0 0 .. 1,110,233 16 5 60.000 0 6-131,599,907 2 0 89,859 75,748 678,930 43,841,704 4 7 64 11 6 1922 ♦Fifteen months ended 819 1,664,206 44,302,852 5 4 26 12 51,458,008 41,162,486 9 10 28 4 8 3,140,365 15 6 .. 80,000 0 6-141,818,534 5 2 152,930118,894 664,819 43,352,030 19 0 65 4 2 31st March, 1921 Totals for 1919 .. 794 1,289,16129,758,448 9 7 23 1 8 994,247 25,962,378 2 6 26 2 3 3,796,070 7 1 .. 52,000 0 5-46 1,178,935 6 6118,109 77,531 630,783 38,393,130 18 4 60 17 4 1918 .. 786 1,213,353 18,101,104 18 1 14 18 4 727,729 14,938,841 10 0 20 10 7 3,162,263 8 1 .. 32,000 0 3-96 1,059,471 17 8 76,869 53,015 590,205 33,418,125 4 9 56 12 5 • 1908 .. 593 706,101 9,674,075 4 0| 13 14 0 484,672 9,417,820 10 3 19 8 8 256,254 13 9 .. 27,000 0 5-44 379,808 6 7 80,133 57,829 342,077 12,159,293 18 1 35 10 11 1898 .. 409 281,749 3,279,611 7 5 11 12 10 196,764 3,194,893 16 7 16 4 9 84,717 10 10 .. 8,500 0 4-26 128,128 16 6 37,265 26,628 169,968 4,957,771 5 5 29 3 5 1888 .. 290 145,355 1,544,747 7 11 10 12 6 96,204 1,387,471 1 10 14 8 5 157,276 6 1 .. 4,000 0 3-97 78,080 6 0 21,307 16,543 84,488 2,048,441 10 9 24 4 10 1878 .. 147 69,908 762,084 12 0 10 18 0 42,746 742,053 14 3 17 7 2 20,030 17 9 .. 2,500 0 5-33 31,664 12 9 13,005 9,634 32,132 819,071 8 2 25 9 9 1868 .. 55 13,014 194,535 11 6 14 18 11 6,365 107,094 17 3 16 16 6 87,440 14 3 .. 789 0 9-77 4,880 7 3 3,282 1,186 4,252 163,518 15 7 38 9 1 Total* from 1st Feb. to 46 6,977 96,372 7 10 13 16 3 1,919 26,415 18 9 13 15 3 69,956 9 1 .. 822 1 10-18 1,241 5 0 2,520 364 2,156 71,197 14 1 33 0 5 31»t Dec., 1867 1 * Termination of Savings-bank year altered from 31st December to 31st March, with effect from 31st March, 1921.

F.—l.

Table No. 6. Post Office Savings-bank. Receipts and Payments for the Twelve Months ended 31st March, 1926. Dr. £ s. d. Or. £ s. d. Balance at credit of depositors on Ist Withdrawals, Ist April, 1925, to 31st April, 1925 .. .. .. 46,948,628 1 0 March, 1926 .. .. .. 32,602,505 17 2 Deposits, Ist April, 1925, to 31st Balance at credit of depositors, 31st March, 1926 .. .. .. 31,833,621 9 5 March, 1926 .. .. .. 47,911,321 10 5 Interest credited to depositors, Ist April, 1925, to 31st March, 1926 .. 1,731,577 17 2 £80,513,827 7 7 £80,513,827 7 7 Reserve Fund Account. Dr. £ s. d. Gr. £ g. d. Balance at credit on Ist April, 1925 .. 1,000,000 0 0 Amount at credit of Reserve Fund Account on 31st March, 1926 .. 1,000,000 0 0 £1,000,000 0 0 £1,000,000 0 0 Liabilities and Assets. Dr. £ s. d. Cr. £ s. d. Balance at credit of Post Office Savings• Securities (Post Office Savings-bank) 48,221,311 16 9 bank depositors on 31st March, 1926 47,911,321 10 5 Balance uninvested .. .. 889,688 13 2 Balance on transfer .. .. 9,396 9 4 Balance at credit of Reserve Fund Account .. .. .. 1,000,000 0 0 Balance of assets over liabilities .. 190,282 10 2 £49,111,000 9 11 £49,111,000 9 11 Profit and Loss Account. Dr. £ s. d. Gr. £ s. d. Interest credited to depositors during Balance forward .. .. .. 214,961 10 3 the year ended 31st March, 1926.. 1,731,577 17 2 Interest received dur- £ s. d. Savings-bank profits carried to Postal ing the year .. 1,965,503 5 8 Revenue .. .. .. 160,000 0 0 Accrued interest, 31st Paid Public Account for cost of Sav- March, 1926 .. 561,475 11 5 ings-bank management .. .. 95,000 0 0 Balance forward to next account .. 190,282 10 2 2,526,978 17 1 Less accrued interest on 31st March, 1925 571,644 10 4 1,955,334 6 9 Sundry receipts .. .. .. 6,564 104 £2,176,860 7 4 £2,176,860 7 4

45

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Table No. 7. Savings-bank Accounts remaining Open on 31st March, 1926, classified according to Balance at Credit of each Account.

46

K ,. Exceeding Exceeding Exceeding Exceeding Exceeding Exceeding Exceeding ! Exceeding j Exceeding | Exceeding | Exceeding | Exceeding Exceeding I Exceeding | Total _ . . . a vlv? I £50 £100 £200 £300 £400 £500 £600 I £700 ! £S00 £900 ! £1,000 I £2,000 £3,000 £4,000 Exceeding Number of ,8 ron I ivjv | and up to and up to and up to and up to and up to and up to and up to i and up to ! and up to and up to i and up to i and up to and up to i and up to I £5,000. Accounts U P 10 iou - j £100. £200. i £300. £400. £500. £600. £700. , £800. j £900. | £1,000. j £2,000. i £3,000. £4,000. | £5,000. open. __ . - . ■ . ___ . Ashburton .. 1,037 367 238 204 105 | 89 , 50 32 21 9 10 5 17 1 .. .. 2,185 Auckland .. 95,234 10,566 7,350 6,848 3,311 1,930 1,402 1,065 639 417 333 225 714 94 25 14 16 130,183 Blenheim .. 6,971 951 605 630 339 j 206 135 82 56 28 27 22 54 3 3 .. 10,112 Christchurch .. 76,258 10,168 7,490 6,589 3,421 2,117 1,393 1,021 643 392 283 229 625 70 18 10 7 110,734 Dannevirke .. 1,336 282 263 191 98 58 33 28 15 17 6 10 20 3 .. .. 2,360 Dunedin .. 48,219 6,721 4,984 4,795 2,490 I 1,554 1,073 728 426 233 173 121 351 23 5 4 2 71,902 Feilding .. 1,312 451 313 288 139 | 102 65 48 25 16 8 8 23 4 1 .. .. 2,803 Gisborne .. 13,944 1,783 1,103 975 467 ! 316 192 159 123 76 38 33 88 15 6 2 19,320 Greymouth .. 7,461 855 629 585 336 j 214 166 131 73 43 29 19 69 2 .. .. 10,612 Hamilton .. 23,027 3,582 2,247 2,146 902 541 ! 380 271 177 115 78 70 175 29 1 1 1 33,743 Hastings .. 2,887 858 623 562 299 j 196 ! 103 98 56 32 21 12 49 6 1 1 5,804 Hawera .. 1,916 495 347 310 153 ! 106 84 43 34 26 11 7 28 2 3 1 3,566 Hokitika .. 1,619 163 105 113 63 49 26 20 11 8 3 1 7 .. .. .. 2,188 Invercargill .. 19,028 2,938 2,061 1,913 991 I 569 431 312 167 90 69 54 116 15 1 3 1 28,759 Masterton .. 2,322 629 493 444 208 | 123 ; 95 68 41 31 22 13 46 5 1 2 4,543 Napier .. 22,411 2,765 1,785 1,594 793 i 450 321 241 175 103 74 56 182 32 12 3 2 30,999 Nelson.. .. 11,161 1,608 1,101 932 565 j 284 198 128 71 54 27 25 59 4 .. 1 16,218 New Plymouth .. 17,443 2,389 1,692 1,424 725 419 340 214 135 83 58 48 137 21 4 3 1 25,136 Oamaru .. 5,620 960 732 697 343 215 177 93 52 37 22 20 57 4 1 1 9,031 Palmerston North 12,834 2,731 1,755 1,617 1,099 482 386 255 131 118 69 50 144 19 7 3 2 21,702 Thames .. 15,134 1,702 1,329 1,072 544 292 178 161 99 60 30 39 81 13 3 2 1 20,740 Timaru .. 13,847 2,409 1,764 1,490 767 j 483 306 235 146 106 76 45 137 15 4 2 2 21,834 Wanganui .. 24,801 3,024 1,979 1,818 926 j 584 394 270 165 102 79 51 158 23 5 2 1 34,382 Wellington .. 92,195 11,450 7,947 7,112 3,364 i 2,127 1,343 948 598 450 330 223 762 96 22 13 12 128,992 Westport .. 4,315 485 302 306 165 [ 119 73 55 21 18 12 13 30 4 1 1 5,920 Western Samoa 696 109 73 41 20 13 8 5 4 1 5 .. .. .. 975 Whangarei .. 1,664 409 294 248 105 j 54 39 46 21 7 4 10 11 2 .. .. 2,914 Earotonga .. 372 44 41 16 6 j 5 5 2 3 1 1 1 1 .. .. .. 498 Totals 31st March, 525,064 70,894 49,645 44,960 22,744 | 13,697 1 9,396 6,759 4,128 2,672 j 1,894 ! 1,410 4,146 505 123 67 51 758,155 1926 Totals 31st March, 500,951 70,365 50,875 46,088 22,621 ! 13,544 ! 9,479 6,626 4,029 2,685 1,816 1,378 4,011 457 116 62 45 735,148 1925 I I

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Table No. 8. Table showing the Estimated Number of Letters and Letter-cards, Post-cards, Book-packets, Newspapers, and Parcels posted and delivered in the several Postal Districts of New Zealand during the Year ended 31st December, 1925.

47

i Posted in the Dominion. Delivered in the Dominion. Total posted and delivered. Postal —; i '' ~ ~ ' j T_ <1 f 5) " ! Le e ttlr r ca a rds. p °st-eards. Books, &c. Newspapers. Parcels, jitter™ ards. Post-cards. Books, &c. Newspapers. Parcels. Letter-cards. Post-cards. Books, &c. pa p™s. Creels. Auckland j.. 34*702,393 1,230,801 14,594,718 5,512,557 941,447; 34,207,789 884,104 12,432,019 4,138,888 619,411 68,910,182 2,114,905 27,026,737 9,651,4451,560,858 Blenheiiji L 1,683,019 29,471 395,766 239,668 19,942 1,763,567 56,966 560,352 478,998 67,275 3,446,586j 86,437 956,118 718,666 87,217 Christehurch j.. 18,474,536 685,360 8,087,639 1,931,006 459,160 19,120,127 923,884 7,114,744 2,295,462 340,587 37,594,663i 1,609,24415,202,383 4,226,468 799,747 Dunedin t. 13,527,352 661,180 6,273,568 1,824,620 324,480 11,411,946 448,578 5,333,302 2,063,113 320,879 24,939,298| 1,109,75811,606,870 3,887,733 645,359 Gisborne L. 2,908,656 58,825 747,609 603,275 51,870! 3,308,812 78,208 1,224,275 1,233,050 134,069 6,217,468) 137,033 1,971,884 1,836,325 185,939 Greymouth .. 1,694,150 41,613 401,739 280,631 39,533 1,991,574 45,890 483,730 506,038 82,615 3,685,724 87,503 885,469 786,669 122,148 Hamilton L.. 9,300,10l! 239,590 2,067,444 1,075,536 112,645! 9,442,862 338,637 3,208,127 1,875,159 313,885 18,742,963! 578,227 5,275,571 2,950,695 426,530 Invercaigill j.. 6,976,484j 192,218 2,409,585 787,101 93,834! 7,204,990 213,811 2,598,752 1,198,262 164,229 14,lSl,474j 406,029 5,008,337 1,985,363 258,063 Napier j t. 6,842,376 140,556 2,661,288 788,167 95,069! 7,797,699 169,000 3,315,559 1,666,028 208,429 14,640,075, 309,556 5,976,847 2,454,195 303,498 Nelson .. 2,315,740 62,582 649,970 231,660 49,426 2,591,550 58,227 897,494 574, 795 1 110,305 4,907,290 120,809 1,547,464 806,455 159,731 New Plymouth 4,643,332 113,373 1,774,712 786,034 73,398 5,112,952 154,882 2,073,409 896,714 170,989 9,756,284 268,255 3,848,121 1,682,748 244,387 Oamaru 1. 1.393,149 52,026 753,222 131,196 16.965: 1,498,952 94,458 668,161 325,494 41,392 2,892,101 146,484 1,421,383 456,690 58,357 Palmers|on N. 65,689 1,105,534 380,034 50,635; 3,447,847 118,404 1,899,976 654,134 102,661 6,534,195! 184,093 3,005,510 1,034,168 153,296 Thames! i. 2,835,144 75,166 862,295 280,059 42,653' 3,478,306 130,182 1,358,110 584,259| 131,651 6,313,450 205,348 2,220,405 864,318 174,304 Timaru ' .. 3,214,655 84,006 1,008,875 277,449 48,113i 3,554,837 150,306 1,467,726 556,400! 94,055 234,312 2,476,601 833,849 142,168 Wanganui 5,776,573 146,185 1,914,276 934,925 89,648 5,413,733 165,620 2,152,137 1,037,101 201,435 11,190,306 311,805 4,066,413 1,972,026 291,083 Wellington .. 26,168,239 532,734; 13,879,684 4,601,402 931.591! 25,605,356 596,538 9,189,649 3,456,505; 489,583 51,773,595 1,129,272(23,069,333 -8,057,907 1,421,174 Westport .. 793,802 16, 146j 124,211 135,174 14,326! 1,075,412 48,529 245,375 300,066; 44,005 1,869,214 64,675 369,586 435,240 58,331 Rarotonga .. 52,830 1,410 2,856 534 1,290 39,786 360 4,626 14,514 2,406 92,616 1,770, 7,482 15,048 3,696 Western Samoa 81,870 1,116 2,238 11,376 546 91,914 450 2,130 50,022 5,196 173,784 1,666' 4,368 61,398 5,742 ' ; ' ' ; ' ' i j - Totals .. 146,470,749 4,430,047 59,717,229 20,812,404 3,456,571jl48,160,011 4,677,034 56,229,653 23,905,002! 3,645,057 294,630,760 9,107,081|115, 946,88244, 717,4067, 101, 628 Previous year.. 136,516,784 3,364,245 50,578,257 18,352,868 3,383, 995| 135,795, 141 3,909,557 48,112,654 23,249,629 3,644,506 272,311,925 7,273,802 98,690,91141,602,497 7,028,501

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Table No. 9. Beoistered Articles. The number of registered articles dealt with in 1925, compared with the number in 1890, 1900, 1910, and 1924, is as follows :— 1890. 1900. 1910. 1924. 1925. From places beyond the Dominion 26,374 52,343 132,493 198,792 210,931 Registered in the Dominion ... 169,321 464,036 993,675 2,046,831 2,103,229 Totals ... .. 195,695 516,379 1,126,168 2,245 ; 623 2,314,160

Table No. 10. Parcel-post. The following shows the number and weight of parcels posted during the years 1890, 1900, 1910, 1924, and 1925

SS§ The following table shows the number and weight of parcels exchanged with Great Britain and Ireland and the undermentioned places during the years 1924 and 1925 : —

48

— 1890. j 1900. 1910. 1924. 1925. Number .. j 121,292 199,413 1,190,711 3,383,995 3,456,571 Weight. .. | 336,6431b. 12 oz. 682,104 lb. 7 oz. 3,953,284 lb. 15 oz. 17,031,0481b. 17,396,310 1b. I I ! ____

Received. Despatched. Places. 1924. 1925. 1924. 1925. Number. Weight. Number. Weight. Number. Weight. Number. Weight. lb. lb. lb. lb. Great Britain and Ireland and 176,284 1,112,534 179,973 1,313,782 19,340 82,024 21,353 82,877 foreign countries via London United States of America .. 62,486 412,116 62,656 408,086 3,939 16,983 5,024 20,342 Canada .. .. .. 9,806 61,123 j 11,350 77,440 1,323 3,962 1,606 5,891 Victoria .. .. .. 16,963 72,827 ' 17,305 73,650 4,330 15,814 4,704 15,785 New South Wales.. .. 27,474 98,490 28,163 108,729 8,524 28,758 9,038 30,396 South Australia .. .. 844 2,259 916 2,671 654 2,484 721 2,344 Queensland .. .. 1,112 3,105 1,107 3,193 1,078 3,333 1,164 3,718 Tasmania .. .. 449 939 409 844 580 1,427 693 1,963 Western Australia.. .. 483 1,025 530 1,335 495 1,554 556 1,809 Fiji .. .. •• 666 1,412 682 1,464 1,739 6,476 1,702 5,975 Ceylon .. .. .. 453 2,112 446 2,458 132 824 128 601 Cape of Good Hope .. 1,163 4,234 986 3,834 95 399 127 605 Natal .. •• •• •• •• •• 334 1,168 393 1,453 India .. .. 2,571 16,949 2,348 14,385 707 3,755 845 4,698 Tonga .. .. •• 49 158 59 262 1,115 5,245 1,403 7,507 Tahiti .. .. •• 39 235 50 218 1,006 6,192 502 3,353 Hong Kong .. •• 1,561 11,078 1,359 9,685 451 2,041 462 2,158 Straits Settlements .. 323 1,050 316 1,134 230 966 230 1,030 Solomon Islands .. .... .. 2 2 5 9 9 24 New Hebrides .. .. 2 11 .. 2 5 4 15 Uruguay •• ■ • •• •• •■ •• 60 249 58 296 Pitcairn Island .. .. 293 636 386 838 98 452 156 692 Norfolk Island .. .... .. 6 19 5 8 14 40 Nauru Island .. .... .. 2 4 Aden .. • • • • 30 160 32 170 .. .. .. ,, Fanning Island .. .. 41 203 .. 101 394 72 310 Egypt .. .. •• •• 253* 1,607 17 83 83 634 Totals .. .. 303,092 1,802,656j 309,336 2,025,810 46,360 184,605 Si,047 194,516 * Previously forwarded through the intermediary of the Commonwealth of Australia.

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Note. Inland Telegram Tariff : Prior to the Ist September, 1869, inland telegrams were charged for on a mileage basis. From that date a uniform rate was fixed of 2s. 6d. for ten words and 6d. for each additional five words. From the Ist April, 1870, the minimum charge was reduced to Is. From the Ist November, 1873, the rate was further reduced to Is. for ten words and Id. for each additional word, address and signature, hitherto charged for, being free up to ten words. From the Ist July, 1877, there was introduced the " urgent" code, at double the ordinary rate. From the Ist July, 1878, a "delayed" system was introduced, the rate being fixed at 6d. for ten words, exclusive of address and signature up to ten words, and £d. for each additional word. From the Ist February, 1892, the number of words allowed for the minimum charge in each case was increased to twelve, with free address and signature up to six words. From the 15th August, 1892, the ordinary rate was fixed at Is. for eighteen words, including address and signature. From the Ist June, 1896, the rate was fixed at 6d. for twelve words, including address and signature, and Id. for each additional word; and "delayed" telegrams were abolished. From the Ist November, 1906, the charge for additional words was reduced to Jd. each. From the 23rd September, 1915, the ordinary rate was increased from 6d. to Bd. for twelve words (" urgent" Is. 2d.); and on the Ist August, 1920, it was further increased to Is. for twelve words and Id. for each additional word ; ("urgent" 25., and 2d. for each additional word); Sundays and holidays, double rates. From the Ist November, 1920, there was introduced a system of night letter-telegrams, to be delivered by post on the morning following the day of presentation. The rate (since altered) was Is. 6d. for thirty-six words and for each additional word. From the Ist February, 1923, the rate for ordinary telegrams was reduced to 9d. for twelve words, the charge for each additional word remaining at Id. ("urgent" Is. 6d., and 2d. for each additional word). From the same date the night letter-telegram rate was reduced to 9d. for twenty-seven words and Id. for each additional three words.

Table No. 11. Comparative Table showing the Development in the Telegraph, Toll, and Telephone-exchange Services during the Ten-year Periods ended 30th June, 1866 and 1876, the 31st December, 1886, the 31st March, 1896, 1906, 1916; and the past Five Years.

49

Telegraph and Toll. Number of Telegrams and Toll Messages forwarded during the Year. Revenue in respect of Telegraph, Toll, and Telephone-exchange Services. Telegrams. Telegraph. Total Year. Number Number number : r Tote! ; 1 i 7 r 1 Telephone Tele 8 ra P h > M pn?e°' Miles °' Offices Inland | Total Inland j Miscel- Total Revenue. ® xchan g e Telephoneline" Wire - °P ened - Ordinary. Urgent. Press. mint"" I Number of Messages. Ordinary, i Urgent. Press. fS™* mint?" Teksranh Tele g ra Ph Eevenue. exchange gjams. j Telegrams. gSms. | Revenue RCTeIlue - I j 1 I ! 1 1 £■££££ £ £ £ £ £ 30th June, 1866 699 1,390 13 *24,761 .. .. .. 2,476 27,237 .. *5,562 .. .. .. 483 .. 6,045 .. .. 6,045 1876 3,154 7,247 142 *890,382 .. .. .. 160,704 1,051,086 .. *62,716 .. .. .. 16,154 .. 78,870 .. .. 78,870 31st Dec., 1886 4,546 11,178 412 *tl,583,717 .. .. .. 252,549 1,836,266 .. *f88,385 .. .. .. 27,281 .. 115,666 .. {18,254 133,920 31st Mar., 1896 6,245i 15.764J 743 fl,553, 232 59,038 198.108 .. 224,579 2,034,957 89,254 f 7 3.160 7,510 9,508 .. 25,844 4,889 120,911 2,110 25,934 148,955 1906 8,355 25,116 1,312 3,995,998 211,571 379,185 .. 289,135 4,875,889 764,330 133,204 12,807 18,095 .. 24,168 3,895 192,169 16,368 89,542 298,079 1916 13,684 48,052 2,413 6,062,131 299,823 383,155 .. 127,841 6,872,950 3,963,801 223,843 22,770 27,557 .. 9,085 163,488 446,743 111,969 287,547 846,259 1922 13,767 52,176 2,327 5,341,479 238,024 364,535 18,210 152,428 6,114,676 6,819,789 336,660 31,366 47,437 1,639 8,458 12,009 437,569 268,753 614,367 1,320,689 1923 11,912 48,616 2,307 5,285,175 228,904 389,607 32,880 170,385 6,106,951 7,406,257 322,372 27,448 52,695 2,554 9,728 13,936 428,733 294,374 595.967 1,319,074 1924 12,954 52,910 2,295 5,581,185 265,772 432,120 106,219 69,597 6,454,893 3.021,973 288,183 27,686 61,661 5,287 4,930 11,566 399,313 317,512 830.470 1,547,295 1925 12,938 56,415 2,264 5,827,745 292,885 461,875 215,473 61,560 6,859,538 8,612,412 300,426 30,145 63,601 10,535 4,420 15,190 424,317 344,393 867,218 1,635,928 1926 13,052 59,791 2,221 6,043,563 317,021 488,487 317,484 58,460 7,225,015 8,976,859 310,039 32,385 67,481 14,738 4,992 17,158 446,793 358,037 :980,283 1,785,113 ! ' ' I ! j I _J I > j * Includes private, Press, and Provincial Government messages. t Includes " delayed" telegrams. X Includes miscellaneous telegraph revenue.

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Table No. 12. Table showing the Number forwarded and the Revenue derived from Toll Calls and Paid Telegrams of all Codes and the Value of franked Government Telegrams at the undermentioned Postal Districts during the Twelve Months ended 31st March, 1926.

Approximate Cost of Paper.—Preparation, not given; printing (1054 copies), £135.

Authority: W. A. G. Skinner, Government Printer, Wellington.—l 926.

Price 2s.]

50

Re f™mPaW Ved Value of franked %1™ U / O 0 f f Number of T °t'wZ^ 0 ' Postal District. Telegrams of all Government all rv>Hes Paid Telegrams and | (-ll lL nil TvIh I t«ii rv,rt»a nnri Tnll ' Teloirrnttia a " Co(les Toll Onlla (xovernment all Codes and Toll CaH« i lelegrams. and Toll Callg J.OU Ualls. Telegrams. Calls. £ ! £ £ Auckland .. .. 121,385 | 733 122,118 2,685,647 7,770 2,693,417 Blenheim .. .. 12,292 250 12,542 278,247 2,003 280,250 Christchurch .. .. 84,458 511 84,969 1,651,859 6,710 1,658,569 Dunedin.. .. .. 63,800 ! 270 74,070 1,276,656 3,343 1,279,999 Gisborne.. .. .. 27.366 j 165 27,531 468,552 2.231 470,783 Greymouth .. .. 15,637 ! 206 15,843 283,583 3,619 287,202 Hamilton .. .. 57,772 I 9 57,781 1,358,240 130 1,358,370 Invercargill .. .. 36,119 55 36.174 792,367 778 793,145 Napier .. .. .. 47,121 129 47,250 1,016,948 1,623 1,018,571 Nelson .. .. .. 14,859 320 15,179 332,103 4,689 336,792 New Plymouth .. .. 34,359 I 51 34,410 787,582 730 788,312 Oamaru .. .. .. 10,636 37 10,673 176,826 513 177,339 Palmerston North .. 35,369 17 35,386 776,882 218 777,100 Thames.. .. .. 20,481 22 20,503 498,037 271 498,308 Timaru .. .. .. 25,367 | 98 25,465 506,366 1,312 507,678 Wanganui .. .. 38,269 81 38,350 745,427 1,197 746,624 Wellington .. .. 131,343 1,899 133,242 2,385,775 19,655 2,405,430 Westport .. .. 6,046 139 6,185 122,317 1,668 123,985 Totals, 1925-26 .. 782,679 ! 4,992 787,671 16,143,414 58,460 16,201,874 Totals, 1924-25 .. 749,100 4,420 753,520 15,410,390 61,560 15,471,950

Building completed 13th March, 1926. (See photograph on following page.)

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Plan of Tuatapere Post-office Building A Type of Country Post-office with Quarters.

Tuatapere Post-office.

Building completed 13th March, 1926. (For plan of building see previous page.)

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TYPE OF SUBURBAN POST-OFFICE, WITH QUARTERS.

Eastbourne Post-office.

Building completed 12th September, 1925.

A COUNTRY POST-OFFICE OF THE SMALLER TYPE, WITH QUARTERS.

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A COUNTRY POST-OFFICE OF THE LARGER TYPE, WITH QUARTERS.

Paeroa Post-office.

Building completed 27th May, 1926.

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NEW ZEALAND AND SOUTH SEAS INTERNATIONAL EXHIBITION.

Section of Departmental Court, showing World's Time, Wireless Apparatus and Model Automatic Telephone System.

Section of Departmental Court, showing Past and Present Telegraph Apparatus.

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CENTRAL AUTOMATIC TELEPHONE EXCHANGE, WELLINGTON.

Section of Switching Apparatus.

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LAYING OF COOK STRAIT TELEPHONE CABLE

Hauling-in Shore End of Cable at Lyall Bay.

Preparing Trench for Shore End of Cable at Lyall Bay.