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Provision is being made for an extension of 100 two-party lines at the Masterton Exchange. The more modern portion of the Strowger automatic equipment previously in use in Auckland is now in course of installation at Napier. Prior to its being brought into operation at Napier the equipment is being completely overhauled and readjusted so that it will function with precision and furnish an up-to-date automatic system. Additional switching-apparatus which is being installed at the Palmerston North Automatic Exchange will provide increased accommodation for subscribers. At Wanganui provision has been made for utilizing a portion of the latest type of Strowger automatic material released from Auckland, which, when installed, will provide accommodation for 300 additional subscribers. The Blenheim Automatic Exchange equipment is taxed almost to its full capacity, and provision is being made for an extension of 100 exclusive lines and 10 rural lines. The automatic-exchange equipment for the Dannevirke, Hawera, and Stratford Exchanges is expected to arrive in the Dominion shortly, and as soon as the apparatus is available a commencement of the installation work will be made. Christchurch Metropolitan Area Automatic Telephone Exchanges. As soon as the Auckland City exchanges were converted to automatic working a section of the manual switchboard was transferred to Christchurch in order to tide over the transition period pending the completion of the Christchurch underground distribution work and automatic-exchange installations. As a result of this action the Department was enabled to increase the capacity of the exchange by 400 lines. At the present rate of progression the time when this increased capacity will be fully availed of is close at hand. The system in Christchurch at present is a mixed one, being partly automatic and partly manual ; and when the manual section was transferred from Auckland opportunity was taken to introduce into the Christchurch system certain features which greatly improved the service and which will continue in operation until the full-automatic system is introduced. Almost the whole of the apparatus for the Western Electric full-automatic exchanges at Christchurch is now in hand. Satisfactory progress is being made with the installation work ; and a good deal of the equipment is already in position. This is a work of considerable magnitude, and every effort is being made to hasten its completion so that it will be ready when the final stages of reconstruction of the outside cable and aerial plant are reached. The auxiliary Strowger automatic apparatus which is at present in use has "given satisfactory service during the year. Dunedin Metropolitan Area and District Automatic Telephone Exchanges. In April, 1925, a section of the Auckland manual switchboard, which was released when the Auckland Exchange was converted to automatic working, was transferred to Dunedin, and. it is now being utilized to provide accommodation for new subscribers until the automatic system is brought into operation. The Dunedin Exchange will ultimately operate on full automatic principles, and will in every respect be similar to the automatic systems in operation in the Auckland and Wellington metropolitan areas. The installation of the automatic-exchange equipment in the Dunedin area is well advanced, but a considerable amount of detail work still remains to be done before the intricate mechanism can be made available for service. The Oamaru Automatic Exchange continues to provide an efficient and smooth-running service. The present equipment has sufficient capacity to meet all immediate requirements. Air-conditioning Plants for Automatic Exchanges. The air-conditioning plants introduced at the latest machine switching exchanges have given good service, maintaining the air in the switch-rooms at suitable relative humidities and keeping it free from dust. The elimination of dust and excessive humidity has largely contributed to the comparative freedom from apparatus irregularities at those exchanges. The benefits derived have fully justified the introduction of air-conditioning plants as part of exchange equipment. " Interphone " Installations. A system of telephone intercommunication for business houses having up to twenty extension stations has been introduced. In addition to the scattered departments of a business house being linked up, each extension station is able to connect directly with the central telephone exchange. The system is at present confined to the Wellington Exchange area, but as further equipment becomes available other centres will be given similar service. In Wellington City 168 subscribers have availed themselves of the so-called " interphone " system. The simple manipulation of the " interphone," the low operating-costs, and the quick and efficient inter-office service provided thereby are features which are making the system an increasingly popular adjunct to business stations. Automatic Private Branch Exchanges. A commencement has been made in the introduction of small automatic-exchange units (private automatic exchanges) for use in business premises where the "interphone " key-box system does not fully meet requirements as regards number capacity, secrecy, or variety of services rendered. Further private-exchange equipment is now under order. It is expected that this important aid to efficient business organization will be greatly in demand.

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