E.—No. 2

operations. "We therefore, at 4 p.m., cut the cable, after buoying it, and proceeded with the four miles we had picked up to Port Underwood to anchor for the night. At 5 a.m. on the 26th instant we started in search of the buoy which was attached to the end of the cable that had been previously paid out from the " Weymouth," and so accurate were the observations taken by Captains Kennedy and Mundle, and Mr. Balfour, that we run right upon the buoy at once. The cable was quickly secured by Messrs. Donovan and Stafford, with their assistants, brought on board, and the splice made. At 12 noon the paying-out machinery was put in motion, and after everything progressing most satisfactorily and smoothly, we anchored in White's Bay (having paid out about three miles of cable) at 135 p.m. At 2 p.m. I went on shore with Mr. Smith, the Mechanician, to lead the line wires into the cable house, when, at 430 p.m., just as all the instruments were fixed, the cheers of the workmen announced that the cable was on shore. At 5 p.m. the cable was carried along the trench and fixed in the cable house, and in a few minutes more I had signalled the first telegram congratulating His Excellency the Governor and his Ministers on the safe landing of the Cook's Straits Cable. After watching for some time with satisfaction the successful working between Wellington and Blenheim, we proceeded with our instruments to the steamer, in hopes of reaching Wellington that night. No sooner, however, were the engines started than they were brought up and stopped, and it was evident that something was foul of the screw. Mr. Donovan, being an excellent swimmer, volunteered at once to go down and examine into the cause of the stoppage, and his examination resulted in his reporting that the telegraph cable was foul of the screw, and consequently must be cut. It was, however, decided not to cut the cable till after low water, when a further examination was to be made by Mr. Donovan and Captain Mundle conjointly, in the hopes that the cable might be removed, and the screw set free without the necessity of cutting. This further examination, however, proved the accuracy of Mr. Donovan's first examination, and the correctness of his impressions that the cable must be cut, and another splice made. ■ This decision once arrived at not a moment was lost, and Mr. Stafford and his assistants again went to work with the utmost willingness, notwithstanding their previous fatigues and unremitting labors. At 7 a.m. the cable had been grappled, and the splice completed. Our telegraphic instruments were again transferred to the cable house and fitted up, and we commenced alternately calling Wellington and Blenheim till 740 a.m., when the telegraphist at Wellington announced his presence in the office. The cable was now found to be all right and as good as ever, and when, at 9-10 a.m., we connected Wellington and Blenheim, we watched them working satisfactorily for a short time, and then took our instruments again on board to return to Wellington. The fouling of the screw must have been caused by the floating of the piece of line which was attached to the cable when it was cut away from the ship, and which, being very light, and the water very shallow, was drawn up by the screw, and carried the cable with it. The cable has tested well all through the operation of paying out; and after all the difficulties the contractors have had to contend with, the laying of the Cook Strait cable may be regarded as a signal success. Before concluding this Eeport, I would urge upon the Government the desirability of retaining in its possession the s.s. " St. Kilda," which has proved herself admirably adapted for picking up and re-laying the cable. She might be usefully employed for lighthouse and survey purposes, and should accident happen to the submarine telegraph cable, she might then be called at once into requisition. I have, &c, Alfred Sheath, The Hon. the Postmaster-General, Wellington. Telegraphic Engineer. No. 17. Regulation for the management of the Electric Telegraph in New Zealand. G. Grey, Governor. Order in Council. At the Government House, at Wellington, the fifth day of September, 1866. Present: His Excellency the Governor in Council. Whereas by " The Electric Telegraph Act, 1865," it is enacted that it shall be lawful for the Governor, by Order in Council, to make regulations for the transmission and delivery of all despatches, messages, and communications by the Electric Telegraph Lines referred to in that Act: And whereas it is further enacted by the said Act that it shall be the duty of all officers and others employed in the working of any such Telegraph Lines, to transmit all messages which may be lawfully transmitted under any such Regulations : Now therefore, His Excellency the Governor, with the advice and consent of the Executive Council of New Zealand, in pursuance and exercise of the above recited power and authority, doth hereby make the following Regulation : Megulation. —No message or communication relating to the Customs shall bo transmitted by any officer or other person employed in working any Telegraph Line belonging to the New Zealand Government,, or be allowed by him to be transmitted by such line, during any period which shall be specified in any order from the Honorable the Commissioner of Customs, unless under the written authority of the said Commissioner, or of some person authorized under his hand in that behalf. PORSTER GoRUs-O, Clerk of the Executive Council.

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FURTHER PAPERS RELATIVE TO SUBMARINE TELEGRAPH.