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¥.— 2a

10

Vogel says: "We shall collect same amount as at present, and trust to increase in rates on inward messages which the company will have collected and be accountable for to us to recoup the additional amount for which we shall have to be accountable to the company."

The Agent, Melbourne, to the Easteen Extension Company, London. Ist November, 1886. Half-yeaely report published, and good leader to-day's Argus reviews whole question, throws blame on Vogel; concludes better for colonies hold Chairman to his word to accept same subsidy asked by Pacific, now Australia made to pay for Vogel's humours and caprices. Acting direct opposition Victoria and Now South Wales ; latter advised him take sensible course gain reduction, leaving question of competition to the future. Vogol flouts idle scheme not only against company but against wishes two most popular colonies; declines advice, rejects arbitration, follows isolated policy to annoy Australia and New Zealand; high rates direct tax on public might have been avoided. Victoria pays liberally for communication with Europe and interested in maintaining complete intercolonial system. Matter must not be allowed rest if Vogel stands out against other colonies, having himself to blame for any retaliatory measures they may be obliged to adopt.

The Agent, Nelson, to the Easteen Extension Company, London. Ist November, 1886. The intention of the New Zealand Government is to collect the old rates on intercolonial messages from New Zealand, and debit the company with the new terminal charges on incoming telegrams, trusting that the amount debited against the company will recoup .the Government for loss on outgoing messages.

Agent, Nelson, to the Easteen Extension Company, London. 2nd November, 1886. Midnight. All the leading journals denounce the terminal charge, and urge the Government to come to terms. Full particulars later.

The Agent, Sydney, to the Easteen Extension Company, London. Ist November, 1886. Sydney Herald says : " Increased rates almost prohibitory. Seriously affect business. Responsibility rests with Zealand Government, which has acted all through without slightest consideration for public, company-] shown no regard for public either. Zealand Government blundered sadly. Vogel may be right better for colony lay cable than pay subsidy. Cable, however, cannot be laid in week. Absurd fight when company hold whip hand. As new cable idea thought of too late, best accept company's offer." Ghristchurch Times says : " Terminal proposal bad one. Public will suffer. Press messages much curtailed." Auckland Herald says : "For unpleasant relations engendered we have to thank Melbourne Press, which, with usual tendency intermeddle with other people's affairs, took up cudgels in company's behalf, inveighed in an offensive way against colony and Government."

The Agent, Melbourne, to the Easteen Extension Company, London. 2nd November, 1886. Peess strongly denounce terminal charge. Consider company have bosc of dispute. Vogel must give way, and make terms to meet requirements of telegraphing public.

The Agent, Nelson, to the Easteen Extension Company, London. 2nd November, 1886. Otago Daily Times affirms not slightest chance of Parliament consenting to lay new cable in competition with present one, and describes portion of arguments relied on by Government as to illegality of increasing tariff as bounce.

The Agent, Sydney, to the Easteen Extension Company, London. 2nd November, 1886. Sydney Herald publishes half-yearly meeting report, and all New Zealand Press comments. Eeuter's Auckland telegram says : " All leading journals denounce terminal charge, and urge Government come to terms with company."

The Easteen Extension Company, London, to Postmasteb-Geneeal, South Australia. 3rd November, 1886. Peoposal made by Chairman at general meeting of half-crown tariff for £100,000 subsidy was based on assumption that Eastern and their partners would come into arrangement, which Chairman believes could be brought about, and is dependent on your Government accepting vro rata reduction of transit rate as contemplated for guarantee proposal, and that Government, ordinary, and Press telegrams are carried at uniform tariff, company of course taking risk of providing and maintaining plant necessary for carrying large increase traffic.