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F.—2a,

The Agent, Adelaide, to the Eastern Extension Company, London. 6th November, 1886. Postal Conference to be held Melbourne 19th : New South Wales, Mr. Suttor; Victoria, Mr. Derham ; South Australia, Dr. Cockburn, and Mr. Todd probably accompanies.

The Agent, Sydney, to the Easteen Extension Company, London. 7th November, 1886. Wellington Evening Neius says : " Imposition terminal charge absolutely incomprehensible and unjustifiable. If Government charged for accommodation and clerical services company probably had to pay for it. Beyond slight decrease in traffic, charge will not fall on company, but heavily on public and Press. All Press messages being paid for in Queensland must cause serious diminution in cable news. Impossible to conceive of anything more unfair than making senders to Now Zealand pay extra cable charge on messages from Now Zealand. As largo proportion of received messages aro addressed to Eeuter and Press Association, it moans Press will have to make up main part of difference between old and new rates on messages sent from Queensland by general public."

The Agent, Sydney, to the Easteen Extension Company, London. 7th November, 1886. Auckland telegram to Australian Press says : " Terminal charges not imposed on Press messages. Government determined maintain present attitude." Lyttelton Times says : " Cannot compliment Government. Public are victims. Suffer through newspapers, cable correspondents, and pocket. Company opened fire after long period of threats. Government put newspapers into front rank victims first. Besult struggle for cheaper rates, they become prohibitory. Company do not suffer from this blunder. If tone Melbourne Argus criterion, retaliation in Australia probable. Australians reminded us that wo have free use of cables they subsidize when they find use ours inordinately high, quite easy to raise their rates. Wool market grave, only allayed, by daily bulletins. Critical affairs in the East, Importance cheap rates imperative. Government trump card is new cable. Cannot be played till session six months hence. If played victimizing continues another year. If beyond doubt after suffering eighteen months new cable gave boon low rates without costing more than Government was year ago prepared to pay for five years, it would be set off, but detailed estimate not yet published. Public not assured that point, but will trump card be allowed ? Economists have so much power that to obtain Parliamentary sanction for great work very different from what it was few years ago. After six months' exasperation public mind may prove too strong for economists. Under all circumstances better have accepted company's proposal to arbitrate. Dignified, prudent course conducive to public interests."

The Agent, New Zealand, to the Easteen Extension Company, London. 7th November, 1886. Leading articles in Australian papers favourable to company distributed to New Zealand Press. Auckland Evening Star says : " Think Government should act in union with New South Wales." Auckland Chamber of Commerce is urging Government to settle dispute cable question.

The Agent, Sydney, to the Easteen Extension Company, London. Bth November, 1886. Nelson Evening Mail says : " Dispute is gradually assuming more serious proportions. From published telegrams company checkmated Treasurer's move of charging high for land line by refusing to accept in Australia the responsibility of forwarding messages beyond Wakapuaka, thus throwing onus on Government. Meantime the public are suffering owing to the absence of but the baldest cable news, and before many days there will be a general outcry throughout the colony. Vogel not only fights the company —a most powerful organization—but has taken up a position entirely opposed to the views of the Australian Government, and against such a combination he must prove powerless. The sooner he beats a retreat the better for the colony. The company are not making exorbitant demands, and, though we cannot blame Treasurer in trying to make a good bargain, it is foolish to persist when the chances of winning are hopeless."

The Agent, Melbourne, to the Easteen Extension Company, London. Bth November, 1886. On message from Victoria and Tasmania, Sydney and Victoria, get Is. each. Derham's proposals, in the event of New Zealand making terms with company, reduce to 6d. each, making cable 55.; each colony, 6d. Total from Melbourne, 6s. 6d.

The Agent, Sydney, to the Easteen Extension Company, London. Bth November, 1886. Wellington Post says : " Company and Government bluffing one another. Company too greedy. General understanding last session subsidy not to be renewed for five years. To refer to London question of arbitration would yield everything to company. Government wrong in refusing all offers; should subsidize at year's notice. Ministers could not discontinue subsidy without consent of Parliament, which will not be withheld while company in the right." Same paper next day advises Government to promise subsidy of £10,000 to proposed Pacific cable.

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