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11

F.—2a.

The Agent, Adelaide, to Easteen Extension Company, London. 3rd November, 1886. Leading article in Monday's Advertiser: —"Pender has not shown perfect temper or entire ingenuousness, but contrasts most favourably with Vogel's spirit of overbearance, and whose slipperiness is anything but creditable. We shall be surprised if the matter is allowed to rest where it is." I have advised Adelaide and Perth, and hope they will join with the other colonies in protesting against Vogel's action. There is to be a Postal Conference held in Melbourne in two weeks' time, to consider colonies joining Postal Union and the Ocean Steamship services. I believe Cockburn (Minister of Education) and Todd will represent Adelaide. Todd has telegraphed Chairman.

The Agent, Sydney, to the Eastesn Extension Company, London. 3rd November, 1886. Sydney Postmaster-General telegraphed following to Vogel: " From late telegrams in newspapers it seems you are only charging your public the old rates on messages sent from New Zealand, losing the four shillings to make up the company's charges of ten shillings. I think it unfair that senders of messages from here to New Zealand should be asked, to recoup your loss and bear all the disadvantages of the position, and am clearly of opinion now that the proper course to adopt is not to collect any New Zealand terminal charge from senders in this colony, but to collect the cable rate to Wakapuaka and our own terminal charge only, leaving New Zealand to fix and collect their own land tariff both ways. W re shall commence this arrangement to-morrow, 4th November."

The Agent, Sydney, to the Easteen Extension Company, London. 3rd November, 1886. Browning will notify New Zealand Government that we cannot be accountable for their land charges, and will hand them our messages with that understanding. * /

The Agent, Melbourne, to the Easteen Extension Company, London. 3rd November, 1886. Saw Derham to-day. He has communicated with Suttor, proposing that Victoria and New South Wales reduce their rate to sixpence each, if New Zealand comes to terms with the company. I drew his attention to the chairman's proposal to give 2s. 6d. rate for European messages, if colonies give the company the amount asked by Pacific scheme promoters. He made note of the same, and said the Government have received no definite proposal from Pacific people yet.

The Agent, Sydney, to the Eastern Extension Company, London. sth November, 1886. Australian papers publish Suttor's message to Vogel third without comment, cautioning senders that their messages are liable to further charge on delivery in New Zealand. Superintendent of New Zealand Telegraphs notifies Browning as follows : "Instructed to say we decline receive messages on any such conditions. We adhere to our terminal rates." Browning again informed him that "we hand Australian messages on conditions stated, that means of stopping rests with Government. Company will not be responsible." Vogel telegraphs to Suttor: "I think you should help us and not the company in their exactions, and collect our inland rates irrespective of new terminal rates on same scale as hitherto, we collecting your full rate. Let me know if you will do this. We find company's Superintendent is forwarding to persons here copies newspaper articles as if he were Press agent. Do you allow these free on your lines ? they should not be. We intend to surcharge as ordinary messages, and wish to add, in case you be influenced by statements made, that I have no personal feeling in matter; am only carrying out decision of Government. Sydney Herald publishes telegram from Auckland saying cable dispute ended in deadlock, company refused to collect terminal charges, and Government decline to forward messages unless charge collected. I have sent following to New Zealand Press Association : " Telegram from Auckland says company refuse to collect New Zealand land line or terminal charges on Australian telegrams. These charges are now question in dispute between Governments of Sydney and New Zealand. The money hitherto collected to cover them has never passed through the company, who have not the power to collect in from public. We have simply informed New Zealand Government that, whilst handing them the telegrams, we cannot be accountable for their charges."

The Agent, Melbourne, to the Easteen Extension Company, London. sth November, 1886. Letters received to-day by Eeuter's agent, dated New Zealand, 30th October. Premier indicated, in reply to deputation of Press Association, that Government might probably be disposed to offer annual subsidy. Opinion Eeuter's New Zealand Agent: If company willing accept yearly subsidy indefinite term subject reasonable notice to terminate same, Government are likely to grant it, Parliament would be afforded an opportunity of finally deciding the question next year. If you think this worthy of consideration could arrange that Government be advised indirectly that company would probably consider such proposal, 2—F. 2a.