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via Eastern as had been arranged for that via Pacific, and the users of both routes ware placed upon the same footing. (See circular as to facilities " Via Eastern " herewith |_uot enclosed].) 5. It, will be seen from the following categorical list showing the facilities given by the Department, as against those said to have been afforded by the Eastern Extension Company, that the most important among the latter so-called startling facilities, as well as minor ones, have been enjoyed by clients of the Department since the year 1903, and that the statements of Mr. Warren, purporting to indicate departmental methods in the various matters, are in many instances quite contrary to the facts: — Cablegram forms have been supplied by the Department free of charge since September, 1903. Cablegrams have been delivered by the Department in duplicate sine* September, 1903. The new cablegram form recently approved provides for a triplicate copy, and instructions were recently given for the latter to be retained by the Department. The following arrangements have been in force since September, 1903: " The rectificatory messages under Regulation XVII of the International Telegraph Convention will be sent without prepayment on the person asking for the repeat signing and undertaking to pay in the event of the error not having occurred in the telegraph service." It has been reported to the Department that the Eastern Extension Company has not required payment for these messages when no error was made in the telegraph service, and when consequently the public should have been required to pay. Such action is contrary to the provisions of the International Regulations, by which both the Eastern Extension Company and the Department are bound. («.) The following arrangement has been in force since September, 1903: " Persons who desire to do so will be allowed to deposit a sum of money calculated to provide payment for cablegrams sent during one month; a monthly account of the amount duo for such cablegrams will be rendered, and if promptly paid the deposit will not be drawn upon. The amount deposited, which must be equal to the credit given, will be held as a guarantee for payment." It was amplified as follows, when the Eastern Extension Company's office in Melbourne was closed: "However, wellestablished firms who use the ' via Eastern ' route may, at the discretion of the Deputy Postmaster-General, be granted daily credit accounts without cash deposits, the Eastern Extension Telegraph Company having guaranteed the Commonwealth in such cases. Cheques will be accepted if marked or guaranteed by a bank. This guarantee may be waived when asked for in the case of banks, insurance offices, and large public companies or corporations." Similar arrangements apply where the Pacific Cable Board has given a guarantee, (b.) No fee lias been charged by the Department for receipts since 1904. (c.) Accounts are allowed, vide answer to (a). Cablegrams can be telephoned in the same way as ordinary telegrams. It has been approved that in the case of cablegrams the nominal charge for telephoning be not made. The following arrangement has been in force since September, 1903: "If requested in writing by any person who is a subscriber to the telephone exchange system, cablegrams will be telephoned free of any additional charge between such hours' or on such days as may be arranged, and a copy of the cablegram will subsequently be sent by post without any unnecessary delay through the usual channel for postal delivery." The following arrangements were made in September, 1903, for the delivery of insufficiently addressed telegrams: " In all cases where insufficiently addressed cablegrams have been accepted in the sending country at the sender's risk, reasonable diligence will be used in order, if possible, to effect delivery to the person for whom they are intended liefore reporting non-delivery, and such non-delivery reports will not be sent without the instruction of a superior officer, who must satisfy himself that proper t-are has been taken to effect delivery. However, in cases of doubtful address, the supposed addressee will be required, by written notice, to attend at the office, prove to the satisfaction of the officer in charge that the cablegram is intended for him, and accept delivery." It does not appear, in view of these arrangements, that advertising would be of any benefit to the petitioners, though it might be to some persons who have not complied with the regulations regarding the registration of code addresses. This is covered by the arrangement referred to in answer to No. 9 [in circular referred to above, not enclosed]. Xo objection would be raised to compliance with any request to that effect. A list of tariffs appears in the Postal Guide, and our offices are notified of changes, which are not frequent. This is a matter of opinion, and as the opinion expressed is that of the Eastern Extension Company, and not of the petitioners, no remarks by the Department appear to be necessary. 6. 1 am to add that it is thought the memorialists should be informed as to these facts, and that as the Eastern Extension Company, without, so far as can be seen, any sufficient reasons refused to complete its agreement with the Commonwealth Government after having had more than ample time for consideration, the Government cannot, under existing circumstances, comply witli their request, but that all reasonable facilities will be afforded to "the users of the Pacific and Eastern cables at all the Department's offices. Any suggestions for additional facilities that can be granted to users of both cables will be carefully and favourably considered. I have, &c, m , ' , Justinian Oxbkham, Acting-Secretary. Ihe Secretary, Department of External Affairs, Melbourne.