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general telegraphic system of the colony. Where practicable, however, railway telegraph stations are thrown open to the public, when such a course is not likely to act detrimentally to the object for which the station was established —viz., for train signalling. In the North Island the railway telegraph system is worked by this department on its main lines, branch lines being erected where necessary, at the expense of the Railway Department. Up to the present time the arrangement appears to have proved satisfactory, and there is no doubt that for many years to come a system of railway telegraphs can be worked in conjunction with the main colonial system, with a degree of efficiency to meet all the requirements of railway communication in the North Island. The demands for additional assistance at chief stations became so pressing that during the past year a large number of cadets in excess of the ordinarv number trained annually have been admitted ; and to provide sufficient accommodation for teaching them a room has been rented and fitted up with twenty-four instruments, which, with the old training gallery, enables the department to teach thirty cadets at one time. This will place the department in a position to meet the rapidly-increasing -work, and also to satisfactorily arrange the hours in such a manuer that the item for over-tiine will be very considerably decreased, while officers will not be called upon to do more than eight hours' duty daily, notwithstanding the late hour to which chief stations are now open for Press purposes. The nominal strength of the department on the 30th June, 1879, was 801, against 716 in the previous year. The " Urgent Code" referred to in the last year's report continues to increase in public favour, and is very largely taken advantage of by the mercantile portion of the community. The number of urgent messages transmitted during the past year was 80,10(3, giving a value of £1,623 7s. 10d., being an increase over the past year of 16,651 messages, and value £2,523 11s. 2d. Since the date of the last report, a "Delayed" code has been introduced, and is greatly appreciated by the public. The fee for these telegrams is one-half the ordinary fee, in addition to which a postage-fee of one penny is charged. These telegrams are accepted at any time throughout the day, and are forwarded to their destination and posted the same evening after the close of business, so that they may be delivered by the first postal-delivery the following morning. The system was introduced on the Ist of July, 1878, and since that date 50,721 delayed telegrams have been transmitted, yielding a revenue to the department of £2,54G 9s. 2d. The duplex system continues to work with the greatest success, and is now in use upon the following circuits—viz.: No. 1 Cable, 42 miles; No. 4 Cable, 42 miles; Wellington to Napier, 221 miles; Blenheim to Christchurch, 206 miles; Blenheim to Dunedin, 461 miles; Christchurch to Dunedin, 255 miles; and Dunedin to Invercargill, 134 miles. These circuits in reality represent 1,461 miles of a phantom wire, and illustrate conclusively the advautage the introduction of the system has proved to the colony, and is equal to an absolute saving of over £20,000. It ia a matter for congratulation that New Zealand is the first colony on this side of the Line which has introduced, and worked with success, this improved system of telegraphy ; and it is only fair to Dr. Lemon, the general manager of the department, to again express the indebtedness of the colony to him for his persevering and untiring efforts in introducing to his department every new or improved system likely to prove advantageous to the colony. In the annual report of 1874, reference was made to the introduction of the duplex system upon a plan perfected by the general manager ; and Sir Julius Vogel, the then Telegraph Commissioner, referred in flattering terms to the event. Since then, the system has worked with the utmost success, and has been extended to all main circuits where the increasing work has called for additional wire accommodation. Experiments upou the quadruplex system have been tried with every degree of success, and as soon as the necessary instruments, now ordered from England, arrive, it will be put into practical use. On the Ist of "January, 1b79, an agreement was entered into by the Government with the Press Association and Press Agency, for the leasing of two special wires from Auckland to Invercargill and the Bluff, taking in all the intermediate towns of importance. Each of the firms named pay a fixed annual sum, in consideration for which they have the sole use of their respective wire from 8 p.m. till 1 a.m. for five days in the week; from 7 p.m. till 10 p.m. on Saturdays; and from 6 p.m. till 7 p.m. on Sundays. Between the hours named, all matter presented for transmission at any of the " special wire stations" is duly forwarded, or rather, as much as time will admit, the department working the wires to the very best advantage. In the case of interruptions to lines, the department reserves the right to suspend the special wires, in which case all Press matter has to be forwarded at Press rates. During such suspension, the department undertakes to allow to the contracting parties a rebate at per hour, based upon the amount charged for the whole of the section. The svstem has received the most careful attention at the hands of the department, and every endeavour has been used to make it successful. During the past year the Agent-General has succeeded in having New Zealand embraced in the Universal Telegraph Convention; and from its importance it was ranked in the fourth class. This will prove advantageous to the colony, as it will enable this Government to have a voice in any proposed alterations of importance, either in the tariff or otherwise, besides placing the department in immediate possession of any improvements either scientific or departmental. The intercolonial and foreign work is still increasing, but it is feared that a considerable time w?!i elapse before a reduction in the tariff on the 2se\v Zealand and Australian cable can be made, on account of the number of messages transmitted not having reached that number entitling the colony interested to claim the reduction in terms of the agreement. The usual maps and plans of telegraphic circuits are appended to this report. The following work, which was in course of construction at the date of the last report, has now been completed: — Fifth Wire, Wellington to Masteeton, and Poitetii Wiee, Masteeton to Te Nui. These wires, which relieve the remaining wires of a great deal of their former pressure, have since the date of the last report been completed. The cost of the same is shown in Table H.

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