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"A complete copy of the correspondence relating to the negotiations between the company and the Governments of New Zealand and New South Wales will be received in a few days, when it will be forwarded to you for publication." The telegram to forward with above letter is from Chairman to Vogel, dated 20th instant. The remainder of correspondence, excepting the last two telegrams, was posted Sydney and Nelson 13th August. The international tariff will remain unchanged.
Squieb to Hesse. 24th September, 1886. Messages received. Informed Sydney Postmaster, who regrets publication Chairman's telegram. Contends company no power to raise rate beyond figure in clause 11. AttorneyGeneral of same opinion, and the Government threaten retaliate under clause 13. See also clause 8.
The Agent, Sydney, to the Eastern Extension Company. 25th September, 1886. Vogel stated in Parliament, Government not decided course adopt, thinks doubtful under original contract company right raise tariff. Question will be considered Cabinet meeting to-day. Sydney Government telegraphed following to Vogel: " Company apparently not considered consequence raising tariff Zealand as intimated. Government, under clause 8, can cease to provide company with accommodation at termini if tariff raised, and under clause 13 Governments can charge anything they please for use of land line if tariff raised. Propose that you and I reply in foregoing terms, expressing hope that, to prevent inconvenience to public and future trouble, their proposal will be withdrawn."
The Bastebn Extension Company to the Agent, Sydney. 25th September, 1886. Company have done everything in their power since expiration subsidy eight months ago to conciliate New Zealand Government, but negotiations were terminated abruptly by the Government declining to do anything to meet company's views. W Te are advised by eminent legal authorities that we have perfect right to raise tariff, and we believe telegraphing public will approve of our action when they read the correspondence. They certainly are not likely to approve of landline rate being raised. We arc advised that article 8 only empowers Governments to withdraw accommodation at expiration of ten years after subsidy terminated. If land lines rate raised, public will suffer more than company, and responsibility must rest with Governments. We now await Government's communication intimated in your telegram. If no communication received carry out company's instructions.
The Agent, Tasmania, to the Eastekn Extension Company, London. 27th September, 1886. 27th.—Representatives Melbourne Chamber of Commerce interviewed Postmaster-General on Friday, and urged co-operation of Government in taking steps to facilitate an understanding between company and New Zealand Government. Opinion expressed that company's notice to raise the rates too short, and likely excite prejudice against company on the part of the mercantile community, as not sufficient time allowed to make provision for increased tariff. Up to the present no comments made by Victorian Press.
The Agent, Tasmania, to the Eastern Extension Company, London, 28th September, 1886. 27th. —Following from Eeufcer: Melbourne Chamber of Commerce doing utmost to urge the Victorian Government to take steps to bring about a satisfactory arrangement re New Zealand subsidy.—lf tariff raised Government will not move in matter. Suggest company postpone increased rate another month or two, to give time to carry out negotiations with New Zealand ; very probable if this done Victorian Government will be induced to contribute a portion of the subsidy for another five years. Chamber of Commerce and leading merchants promise to do utmost to promote a satisfactory settlement for the company.
The Agent, Tasmania, to the Eastebn Extension Company, London. 28th September, 1886. 27th.— Following from Reuter : Deputation of Wellington, Dunedin, and Ohristchurch Chambers of Commerce interviewed Vogel to-day and urged that Government renew subsidy. Vogel replied company not given requisite legal notice intention raise tariff, also that it was contrary to spirit and intention of the contract entered into with company in 1876 —did not consider company justified raising tariff, and Government would try prevent it being carried out. Government were satisfied with present tariff, but in event increase insisted on would ask Legislature to sanction the laying of a duplicate cable from New Zealand to Australia.
The Agent, New Zealand, to the Easteen Extension Company, London. 28th September, 1886. 27th.—To-day Vogel replied to deputation of Wellington Chamber Commerce, and said Government determined not to yield. If company raised rate Government will enforce terminal charges, and ask Legislature to lay new cable, for which tender already received.