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43,793 telegrams of the urgent code, of the value of £5,542 165., were forwarded. In 1883 the number was 39,816, for £5,487 9s. Bd. 201,769 delayed messages were transmitted, compared with 168,141 in 1883, and 139,208 in 1882. The Government telegrams increased in number by only 930, but decreased £099 19s. 7d. in value, as against an increase of 11,545 messages, and £947 7s. 3d. in value for the previous year. The average number of messages transmitted during the year for every 100 letters posted was ' 10-32, compared with 10-78 for 1883. The average number of telegrams forwarded to every hundred letters in 1883 and 1884, from offices within the undermentioned districts, was as follows: — 1883. 1884. 1883. 1884. Auckland ... ... 8-95 8-92 New Plymouth... ... 17-17 16-09 Christchurch ... ... 6-57 6-46 Wellington ... ... 15-03 14-93 Dunedin ... ... 8.85 7-57 Westport ... ... 23-03 24-97 Nelson ... ... 18-91 17-92 16,496 money-order telegrams, for £65,241 Is. 7d., were transmitted. The commission amounted to £824 16s. The number of orders increased by 235, and £505 15s. in amount. The number and value of the money-order telegrams forwarded from offices within the several postal districts will be found in Table No. 27. Auckland sent 21-95 per cent.; Christchurch, 8-92 per cent.; Dunedin, 9-55 per cent.; and Wellington, 14-30 per cent, of the total number. These four districts sent more than one-half of the orders. Telegraph offices were opened at Ellerslie, Pairlie Creek, Ellesmere, and Seacliff. The telegraph offices at Worser's Bay, Parihaka, and Baling were closed. Telephone offices were established at Okaihau, Opua, Eaglan, Upper Symonds Street, Wade, Whatawhata, and Waitetuna (Auckland District); Dillmanstown, Kanieri, Stafford, Waimea (Hokitika); Havelock North, Taradale (Napier); Okaiawa (Wanganui) ; Frankton and Otama Bridge (Invercargill); North-East Valley, Port Molyneux, Eavensbourne, Waipori (Dunedin) ; Tapu (Thames) ; Wainuiomata (Wellington) ; Spring Creek and Wairau Bar (Blenheim) ; Akaroa Lighthouse, and View Hill (Christchurch); Hakateramea (Timaru) ; Kurow (Oamaru). There are now 110 offices connected by telephone. A Morse instrument was substituted for the telephone at Woodville. The names of the following offices were changed : Havelock to Havelock North (Napier) ; Ohinemutu to Eotorua, Waterford to Katikati (Thames); Waimea to Goldsborough (Hokitika); Elbow to Lumsden (Invercargill). The number of offices, telegraph and telephone, open at the end of the year was 350. Sixteen cadets were trained in the Learner's Gallery, and another class is being instructed. As a means of extending the usefulness of the telegraph, all offices which previously closed at 5 p.m., now re-open for an hoar in the evening between 7 and 8 o'clock. A further change in the interests of the public has been made since the Ist October last, by the abolition of the receipts hitherto taken for telegrams. Ordinary telegrams for delivery within the colony through a post office are no longer liable to postage. The postage on delayed messages has also been abolished. From the Ist October last all telegrams are prepaid in stamps. This has resulted in a simplification of accounts and an economy of labour. The number of miles of line maintained increased from 4,074 to 4,264. The average cost for maintenance per mile was £4 18s. 4d., against £4 16s. Bd. for the former year. The number of miles of wire increased from 10,037 to 10,474, which, with 2,820 miles of duplexed wire, give 13,294 miles of wire accommodation. The expenditure out of loan during the year for telegraph extension, &c, was £25,911 12s. 6d., and the total expended up to the 31st December last on telegraph lines, cables, &c, amounted to £542,441 7s. 6d. The telephone-exchange system is being rapidly extended. An exchange was established at Nelson on the Ist November last, and one at Oamaru on the 25th of the same month. A branch exchange was opened at the Bluff. Arrangements are already completed for establishing an exchange at Timaru, and one will probably be opened at Napier. ; The dates on which the several exchanges were established, the number of subscribers at the date of opening, and the number on the 30th April last are given in the following statement: — Auckland: Established on 24th October, 1881, with 26 subscribers ; on 30th April, 1885, 306 subscribers. Wellington: Established on Ist March, 1883, with 31 subscribers; on 30th April, 1885, 192 subscribers. Nelson: Established on Ist November, 1884, with 29 subscribers; on 30th April, 1885, 36 subscribers. Christchurch : Established Ist October, 1881, with 27 subscribers; on 30th April, 1885, 179 subscribers. . Oamaru: Established on 25th November, 1884, with 30 subscribers ;on 30th April, 1885, 32 subscribers. Dunedin : Established on 26th April, 1882, with 56 subscribers ; on 30th April, 1885, 329 subscribers. Invercargill: Established on 7th November, 1883, with 32 subscribers; on 30th April, 1885, 40 subscribers. A total of 1,114 subscribers on 30th April last. Auckland shows an increase of 112 subscribers; Wellington, 68; Christchurch, 26 ; Dunedin, 45 ; and Invercargill 5 for the year,