F.—s

20

Statement. £■ The existing traffic between' Europe and Australasia consists of 1,306,716 words, and its value to the Eastern, Indo-European, and Eastern Extension Telegraph Companies, and the Persian Gulf Department of the Indian Government, at the present rates, after deducting Government out-payments, is ... ... £209,628 If the rates were reduced, as proposed by the Wellington Conference resolution, to 3s. per word for ordinary telegrams, 2s. for Government telegrams, and Is. 6d. for Press telegrams, existing traffic would produce only . .. .. . 119,572 And consequently result in a loss of .. .. 90,056 £209,628 If half the traffic were diverted to the Pacific line this would be increased .. £149,842 By the Pacific route the tariffs, after deduction of out-payments for Australian and Canadian land-lines and Atlantic cables, would probably be as follows Is. 6d. for' ordinary telegrams, Bd. for Government telegrams, and lOd. for Press telegrams , and if the Pacific cable carried one-half of the existing traffic it would earn about 44,765 Leaving to be made up by the subsidy or guarantee, to cover its expenses and interest on capital 192,235 £237,000 These have been estimated as follows :— -==mb Capital, £1,800,000. Working-expenses by £25,000, maintenance, £35,000 ... .. .. 60,000 Amortization to replace cable at end of fourteen years' guarantee 105,000 4 per cent, interest on capital .. .. . 72,000 £237,000 Less estimated earnings as above .. . .. .. ... 44,765 Total amount subsidy or guarantee required ... ... 192,235 £237,000 Even if whole of existing traffic were diverted to the Pacific cable it would only earn £89,530, or £147,470 short of the amount above shown to be required. [Letter of same text, with statement, received from the company's Manager for Australasia in Melbourne.]

No. 8. The Acting-Superintendent, Eastern Extension Australasia and China Telegraph Company, Wakapuaka, to the Hon. the Postmasteb-Geneeal, Wellington. The Eastern Extension Australasia and China Telegraph Company (Limited), Sir, — Cable Bay, Wakapuaka, Nelson, New Zealand, 17th April, 1894. I have the honour to forward you copy of a letter I have sent the Premier by direction of Sir John Pender, Chairman of this company [See No. 7.] I have, &c, S. L. James, The Hon. J G. Ward, Postmaster-General, Wellington. Acting-Superintendent.

No. 9 The Hon. the President, Postal and Telegraph Conference, Wellington, to the Hon. the Premier, Ottawa. Postal and Telegraph Conference, Wellington, New Zealand, Sic,— 18th April, 1894. I have the honour to forward herewith copy of a resolution in relation to the proposed "Canadian-Pacific cable, passed at the Australasian Postal and Telegraph Conference, which commenced its sittings at Wellington on the sth ultimo. You will observe that the terms of the resolution suggest that the countries interested in securing cable communication between Canada and the Australasian Colonies should join in guaranteeing for fourteen years a sum of £72,000 per annum—the amount of interest on the proposed capital—to any company undertaking the laying of a Pacific cable by either of the routes mentioned; and the representatives to the Conference, with the exception of those from South and West Australia, will recommend their Governments to this effect. I have accordingly to ask whether your country will be prepared to join the colonies in the proposed guarantee , and, if so, I venture to express the hope that the interests of your country will admit of your Government being able to affirm its determination to bear a substantial proportion of the cost. I shall also be glad to hear at the same time that you will co-operate with the colonies in securing the assistance of the Imperial Government in the guarantee. I have, &c, The Hon. the Premier, Ottawa, Canada. J G. Ward, President.