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The state of the waiting-lists at the beginning and the end of the year in respect of the three classes of exchanges is as under : —

Of the city exchanges the waiting-list is largest at Auckland, where considerable difficulty has been experienced in maintaining an obsolete manual system incapable of being renewed or extended, and endeavouring at the same time to meet an unprecedented demand for telephone service with an improvised mixed system —partly manual and partly automatic. Somewhat similar conditions exist at Christchurch and Dunedin. Although the continued shortage of suitable poles and arms hampered to some extent the connecting of new subscribers at country exchanges, very good progress was made, during the year, 5,811 new subscribers being connected, as compared with 4,636 connected during 1921. The waitinglist in respect of country.subscribers, which was 3,896 on the 31.sf March, 1922, now stands at 2,569. This number includes 676 applicants awaiting connections at telephone, exchanges authorized but not yet opehed. Party-line service still, continues to be very popular. Party-line connections have increased, during the year by 15 per cent., as compared with an increase of 6 per cent, in respect of exclusive connections. The number of party lines now stand at 6,643, with a total of 24,153 subscribers, an increase of 706 and 3,165 respectively. The telephone-exchange revenue for the year ended 31st March, 1923, was £595,967, a decrease of £18,400 on the previous year's figures, due to the institution of a system of collecting subscriptions monthly instead of half-yearly in advance. The following table indicates the phenomenal growth of the New Zealand telephone-exchange service during the last ten years : —

In addition to the above, there are 4,320 settlers connected by private telephone lines with departmental bureau offices, and 684 settlers connected with non-departmental exchanges which do not have communication, with the departmental system, making a grand total of 107,036 telephonestations in New Zealand on the 31st March, 1923. There is evidence of many new records having been established in connection with telephoneexchange business during the year, and it reflects great credit on the construction, operating, and maintenance staffs that such a volume of work should be so well performed, and that a service of such a high average efficiency should be maintained in the face of many disabilities. By a series of observations taken throughout the year at the four city exchanges it was found that the average time elapsing between the call by the subscriber and the answer by the operator was' 4-72 seconds, while the average lime elapsing between the termination of the, conversation and the disconnection by the operator was 4-24 seconds. Telephone Statistics. The extent of the telephone and telegraph services in. New Zealand compared with other countries can be readily seen from the following graphic charts and tables, published by the American Telephone and Telegraph Company. The first chart indicates the distribution of the world's telephones and the extraordinary preponderance of telephones in the United States of America. The second chart is drawn on a population basis and shows graphically the number of telephones for each 100 of the population in the various countries. It will be observed that New Zealand occupies fourth place, with 7-5 telephones for each 100 of the, population, or one telephone for approximately every thirteen inhabitants ; and that Canada is second to the United States with one telephone for approximately every ten inhabitants. The average throughout the world is one telephone for every 100 inhabitants.

(-,., tj, , Intcrmed ate Uity Lxchangcs. ,. , J B Lxchanges. Country Exchanges. Totals. Waiting-list on 31st March, 1922 Waiting-list on 31st March, 1923 Net reduction in waiting-list during year 1,934 302 1,455 182 479 J 20 3,896 2,569 .1,327 6,132 4,206 1,926

1914. 1915, L916. 191V. Exchanges .. •. 238 250 259 207 Paving subscribers ... 37,486 41,294 44,836 49,086 Bureaux and service con- 4,403 4,827 5,274 *3,663 neetions Slot telephones 93 139 198 237 Extension telephones .. J 7,4,33 8,001 8,008 9,537 Telephone-station totals J49, 4.15 54,201 58,976 62,523 1018. 1910. 1920. 1.921. 1923. 2S0 287 291 290 301 53,501 57,572 04,390 70,770 76,307 3,434 3,451 3,512 3,595 3,666 Percentage Hnij'i Increase as ' ' compared with 1914. 320] 35 82,459 140 3,856! 351! 277 15,S66 107 102,032 107 201 275 295 319 339 10,507 1.1,203 12,520 13,749 14,371 67,763 72,561 80,723 88,439 94,683 * Prior to 1917 bureau stations were accounted for differently.