.—8

Maintenance Vessel " Iris." 17. The, ship has been maintained in first-class order, and the discipline and efficiency of her company have been in every way satisfactory. The scales of pay of officers and engineers have been revised to their advantage. Stations. 1.8. Manning Island. —Transport and communication during the year was provided by charter of the Commercial Pacific Cable Company's auxiliary schooner " Flaurence Ward" and the s.s. " Kestrel," each vessel making two calls. In addition the " Iris " made a call in July last. The Board's endeavours to obtain a suitable and regular steamer service with the island were continued, and negotiations were reopened with tho Union Steam Ship Company of New Zealand to this end. It was not possible, however, to make any satisfactory arrangements, and the Board were compelled to acquire an auxiliary schooner for the service. They have accordingly placed a contract in Auckland for the construction of a suitable vessel, and it is anticipated that she will be completed by the end of 1914. The total cost of the schooner (including engines and refrigerator plant, which are being sent out from England) will be approximately £9,000, and maintenance, including insurance, will involve an annual charge estimated at £3,300. The prime cost will be charged against capital, stock cable to this value bsing transferred from Capital Account to Renewal Account to produce the funds. 19. Norfolk Island.- —It has been decided to install electric light, at the Norfolk Island station. Plant is being sent out which will produce the necessary power, with a margin sufficient to work the cable relays at that station. 20. Doubtless Bay. —The Doubtless Bay station having been removed to Auckland in December, 1912, the Board's property in that locality has now been disposed of, with the exception of the land. The buildings, which originally cost £6,005, realized £1,050, and furniture and effects, which cost £1,474, were sold for £350. The sale of the buildings was not effected until after the close of the financial year, and the proceeds have not therefore entered into the 1913-14 accounts. 21. Sydney. —In July, 1913, a sub-office was opened in Sydney (Goulburn Street) for the collection of messages. This office is at some distance from the main office, and serves a very important part of the city, being in the vicinity of the premises of fruit and produce merchants who carry on a large cable business. 22. The service of week-end cable letters, which was referred to at some length in the report covering the 1912-13 accounts, has given satisfactory results. There is a steady growth of the volume of traffic under this classification. Since the close of the year under review modifications have been introduced which have added considerably to the utility of this service. Under the original scheme the week-end cable letters were normally transmitted by post to and from the terminal cable-stations, an additional charge being made if telegraphic transmission throughout was desired. In May, 1914, postal transit to and from the cable termini was abolished, all messages being made telegrams throughout, while the charge, per word to the public remains unaltered at 9d. At the, same time the minimum charge, per message was reduced from 18s. for twenty-four words or less, to 15s. for twenty words or less. h\ the same month the service was extended to traffic between Australasia and certain parts of Canada, the tariff being lis. Bd. ($2.90) for a message of twenty words or less, and 7jd. (15 cents) for each additional word. ►.>. In July, 1914, a further facility w r as conceded -viz., the delivery of week-end messages, where practicable, on Mondays instead of Tuesdays. 23. The following statement shows the progress of the international traffic since the opening of the cable :—

Number of Words dealt with. — International.

In addition to the above, a very considerable intercolonial traffic is carried between Australia, New Zealand, and the Fijis. 1 have, &c., H. Babington Smith, Chairman. The Lords Commissioners of His Majesty's Treasury.

6

Year. I Ordinary. Deferred Ordinary. Government. Press. Deferred Week-end Press Cable rress - Letters. Total. 1902-3 .. 1903-4 .. 1904-5 .. 1905-6 .. 1906-7 .. 1907- 8 .. 1908 9 .. 1909 10 .. 1910-11 .. 1911-12 .. 1912-13 .. 1913-14 .. 24,210 83,116 71,575 74,763 101,307 105,519 116,847 120,415 166,812 164,639 193,6884, 214,971 I I 202,313 744,034 781,028 834,778 I,010,133 1,041,433 1,012,998 1,109,639 1,215,306 I ,346,346 1,288,949 1,329,067| ,1,831 37,819 19,110 13,225 17,222 84,940 95,203 126,081 467,495 501,952 212,500 161,478 228,354 864,969 871,713 922,766 1,128,662 1,231,892 1,225,048 1,356,135 1,849,613 2,131,376 2,660,8071 3,117,839| 46,450* 4.15,616 560.011 7 I , 989| 505,442 44,612$ 525,392 j 326,920 * Introduoi id 1st January, 1 troduced fith '. 'eoember, 1911 J Introduced 1st Jar iuary, 1913. .912. f lu