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The Agent, Sydney, to the Eastern Extension Company, London. Bth November, 1886. New Zealand terminal charges have always been settled by the Sydney Government; never have passed through company's accounts. This is not the time to change the system. New Zealand Government repeat that they hold us responsible for their terminal charges. I expect they will refuse to balance in a few days, when there will be a deadlock. Victoria is the only colony collectin" New Zealand terminal charges, and they are hesitating over it. Please instruct.
Tho Agent, Sydney, to the Eastern Extension Company, London. 10th November, 1886. Victoria has ceased collecting 4s. terminal rate, and has notified New Zealand.
The Agent, Sydney, to the Eastern Extension Company, London. 10th November, 1886. WelhkcKTON Evening Post says: "Press Association resolved that, if increased rates insisted, on messages will be cut down to lowest limits. All newspapers informed that Association urged Government to arrange terms with company for five years. Association resolved not to interview Vogel after unsatisfactory conversation with Stout. Newspaper representatives of all shades of politics were present, and decision unanimous that another meeting should be held when Parliament assembled."
The Agent, Nelson, to the Eastern Extension Company, London. 10th November, 1886. Wellington Evening Press, November 10th : " The Government undoubtedly are taking great responsibility upon themselves in standing out against the demand of the company. It will be interesting to see the outcome of the dispute. It is unfair of the Australian Press to blame Vogel personally. We are bound to say that the situation is becoming embarrassing. It would be well for the Government to weigh the matter carefully and keep themselves informed of the practical results of their action. The Government will incur great blame if through their handling negotiations telegraphic connection with Australia is even suspended for any considerable time."
The Agent, Nelson, to the Eastern Extension Company, London. 11th November, 1888. Wellington Evening Post, Ministerial paper, Friday, sth : " The present attitude of the Government putting itself in the wrong and raising public feeling on the question against it. If the Government would offer tho company the regular subsidy from year to year, not for a fixed term, but subject to twelve months' notice of discontinuance, public opinion would certainly approve the arrangement and uphold their action. It will be well within parliamentary authority, and would evince desire to meet the company amicably. If the company refuse an offer of this nature then onus necessarily causing inconvenience thrown upon them."
The Agent, Nelson, to the Eastern Extension Company, London. 11th November, 1886. Wellington Times, 9th: "We are not surprised at general anxiety felt for some amicable arrangement We sympathize with the Government in their desire to economize, but the plea of economy is not always a complete answer. We have hitherto given the Government cordial support. Given that the Ministers have accurate views and facts, we must confess our confidence somewhat shaken by recent events. Doubt has been expressed of the company's power to raise the rates ; most practical manner rates being levied. Threatened contention that Government could withhold or charge for accommodation seems to have been equally unfounded. Eefusal Australia collect charges brought matters to something like deadlock. No dignified exit seems practicable. These questions should be answered :Is there any prospect Pacific cable being carried into^ effect ? Who right, Government or company ? If answers favourable Government, then Ministers should be supported; if not, sooner Ministers pocket their dignity, make best terms practicable, the better for every one connected."
The Hon. the Postmaster-General, South Australia, to the Eastern Extension Company, London. 13th November, 1886. We are charging only to Wakapuaka on New Zealand telegrams, leaving that colony to collect her terminal rates on delivery. Victoria and Sydney favourable to joint protest. Am going to Melbourne on Wednesday.
The Chairman, Eastern Extension Company, to the Hon. the Postmaster-General, Wellington. 12th November, 1886. In view of the deadlock which had arisen between the company and the Government, and the serious public inconvenience resulting, the Agent-General suggested to the company to revert to the position occupied by both company and Government prior to the Ist November, so that the New Zealand Parliament should have the opportunity of fully reviewing the whole question next session. The company have agreed to accept this suggestion, believing that it will be viewed as an evidenea