TELEGRAPH CABLE SUBSIDY AND CHARGES (PAPERS RELATIVE TO).

Appendix to the Journals of the House of Representatives, 1885 Session I, F-02

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1885. NEW ZEALAND.

TELEGRAPH CABLE SUBSIDY AND CHARGES (PAPERS RELATIVE TO).

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. The Aqent-Geneeal to the Hon. the Postmasteb-Gbneeal, Wellington. Sie, — 7, Westminster Chambers, London, S.W., 7th November, 1884. I transmit to you herewith copy of a letter I have received from Mr. Pender, M.P., Chairman of the Eastern Extension Telegraph Company, on the subject of the cable communication with New Zealand and New South Wales under the agreement of 1875. In accordance with Mr. Pender's suggestion, a meeting will take place between him, Sir Saul Samuel, and myself to discuss the matter with him, in order that you may have before you whatever information may seem capable of assisting you to arrive at a decision. I have, &c, The Hon. the Postmaster-General, Wellington. F. D. Bell.

Enclosure. The Chaieman, Eastern Extension Australasia and China Telegraph Company (Limited), to the Agent-Genekal for New Zealand. The Eastern Extension Australasia and China Telegraph Company (Limited), Sib,— 66, Old Broad Street, London, E.C., 3rd November, 1884. As the subsidy payable to the above company by the Governments of New Zealand and New South Wales, in terms of the agreement dated 24th June, 1875, is terminable in February, 1886, I take this early opportunity of bringing the subject to your notice, in order that sufficient time may be afforded to obtain your Government's views in reference to future working arrangements when the agreement ceases. The cable between New Zealand and New South Wales has now been open nearly nine years, and, although during that time the traffic transmitted over it has considerably developed, the receipts, including the subsidy, are only sufficient, after paying working expenses, to give a return of 7£ per cent, interest upon the capital invested, without making any provision for the maintenance or renewal of the cable, which our experience proves to be absolutely necessary for the security of our system, and cannot be computed at a lower figure than 5 per cent. Without the subsidy the return is only 5 per cent. The financial aspect of the question is not, therefore, encouraging; and, under the circumstances, the company would find it difficult to carry on the existing arrangements without the same pecuniary assistance from the colonies interested, or an addition to the tariff to recoup the loss which the cessation of the subsidy would involve. As, however, the latter plan would lead to inconvenience on the part of the public, and tend to retard the growth of telegraphic communication with New Zealand, the company would much prefer to be recouped by an extension of the existing subsidy for another ten years. This would accord with the principle adopted by the contributing colonies when fixing the duplicate cable subsidy of £32,400 per annum for twenty years, and would conform to the arrangements with other Governments with whom the company has similar relations. I have therefore to request that you will be good enough to bring the question before your Government, and ascertain their views and wishes in the matter. Should you think it desirable to see me on the subject before communicating with New Zealand, I should be happy to discuss it with you and the Agent-General for New South Wales, either at these offices or at your own, as may be most convenient. I have addressed a similar communication to this to Sir Saul Samuel. I have, &c, John Pendee, Sir F. Dillon Bell, K.C.M.G., Agent-General for New Zealand, Chairman, I—F. 2.

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No. 2. Dr. Lemon, Wellington, to the Agent-Geneeal. Sie, — General Post Office, Wellington, 2nd January, 1885. I have the honour to acknowledge the receipt of your letter of the 7th of November last, covering a letter received from Mr. Pender, M.P., Chairman of the Eastern Extension Telegraph Company, on the subject of cable communication with this colony and New South Wales under the agreement of 1875. I note your intention of discussing the matter at a meeting with Sir Saul Samuel and Mr. Pender, and shall await your report. I have, &c, Sir F. Dillon Bell, K.C.M.G., C. Lemon, Agent-General for New Zealand, London. (for the Postmaster-General.)

No. 3. The Agent-Geneeal to the Hon. the Commissionee of Telegbaphs, Wellington. Sie, — 7, Westminster Chambers, London, S.W., Ist December, 1884. I transmitted to you in my letter of the 7th November, the communication which I received from Mr. Pender, the' Chairman of the Eastern Telegraph Company, in which he requested Sir Saul Samuel and myself to meet him on the subject of the cable between Sydney and New Zealand. We accordingly had an interview with Mr. Pender and Sir James Anderson, when Mr. Pender explained the proposal which he had to make, as follows : — The existing agreement to be prolonged for a term of fourteen years from the expiration of the present term, at the same payment as is now made, and the same telegraph rates. Mr. Pender added, on behalf of the company, that unless some arrangement was made for the renewal of the agreement it would be necessary for the company to raise the existing rates at the end of the present term. Sir Saul Samuel and I said that we had no authority on the part of our Governments to enter into any arrangement' of the kind, but. we offered to transmit any proposition which the company might itself desire to make ; and we understood from Mr. Pender that it was his intention to communicate direct with yourself by telegraph. I have, &c, The Hon. the Commissioner of Telegraphs, Wellington. F. D. Bell.

No. 4. The Hon. Mr. Stout to the Hon. the Postmastee-Geneeal, Sydney. Sib,— General Post Office, Wellington, 3rd April, 1885. The time fixed for the cessation of the subsidy to the Eastern Extension Telegraph Company for the cable between New Zealand and Australia has nearly arrived. We have received an unofficial letter from Mr. John Pender, the chairman of the company, asking us to agree to renew the subsidy from the expiration of the present agreement for a period of fourteen years. It seems to us that there is now no need of any subsidy ; but before coming to a determination on the subject we would be glad if you would be good enough to inform us of your views regarding it. I have, &c, Eobeet Stout, The Hon. the Postmaster-General, Sydney. (for the Postmaster-General.)

No. 5. The Hon. the Colonial Secbetaey, Sydney, to the Hon. the Colonial Seceetaby, Wellington. Sib, — Colonial Secretary's Office, Sydney, 9th February, 1885. The Agent-General for this colony in London having submitted a copy of a letter from the chairman of the Eastern Extension Australasia and China Telegraph Company with reference to the renewal for another ten years of the subsidy payable by the colonies of New South Wales and New Zealand to that company, in terms of the agreement dated the 24th June, 1875, which is terminable in February, 1886, I have the honour, at the instance of my colleague, the PostmasterGeneral, to request that you will be so good as to favour me with an expression of the views of your Government on the question. I have, &c, William B. D alley. The Hon. the Colonial Secretary of New Zealand, Wellington.

No. 6. The Hon. the Colonial Sboebtaey, Wellington, to the Hon. the Colonial Secbetaby, Sydney. Sib,— Colonial Secretary's Office, Wellington, 26th May, 1885. I have the honour to acknowledge the receipt of your letter of the 9th February upon the subject of the application made by the Eastern Extension Australasia and China Telegraph

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Company for a renewal of the subsidy payable by the colonies of New South Wales and New Zealand to that oompany, in terms of the agreement dated the 24th June, 1875, which is terminable in February, 1886 ; and inquiring what are the views of this Government upon the subject. I desire to apologize to you for the delay which has taken place in replying to your letter, which was unfortunately misplaced in the Post Office Department here. I find, however, that on the 3rd April Mr. Stout, in the absence of the Postmaster-General, wrote to the Postmaster-General of New South Wales upon the subject, saying that there seems to us to be now no need of any subsidy, and asking for the opinion of your Government on the question. I have the honour to enclose a copy of Mr. Stout's letter (vide No. 4), to which this Government will be glad to have an early answer. I have, &c, The Hon. the Colonial Secretary, Sydney. P. A. Buckley.

No. 7. The Vice-Pbesident, Canterbury Chamber of Commerce, to the Hon. the Postmasteb-Genebal, Wellington. Canterbury Chamber of Commerce, Christchurch, New Zealand, Sib, — 13th June, 1885. I have the honour to hand you copy of resolution adopted at a general meeting of members of this Chamber, held on the 29th ultimo, as follows: " That in the opinion of this Chamber a joint effort should be made by the various Chambers of Commerce in this and the Australian Colonies to secure, if possible, a reduction in rates on messages sent by the New Zealand cable line." When this matter was under discussion it was pointed out that the cable is subsidized by the New Zealand Government to the extent of £5,350, and that the question of continuing that subsidy for a further period of ten years is now under consideration. It was also stated that the cable had required no expenditure for maintenance since first laid. You are aware the present cable charges are extremely high—it is believed much higher than on any cable in the world of about similar length. These charges are almost prohibitory so far as what may be termed " domestic " messages are concerned. It is understood that the present work done on the cable is comparatively so limited that it might without inconvenience be almost doubled; and it is believed that, were the charges considerably reduced —by, say, 2s. for ten words- —a very great convenience would be afforded to the public, and the revenue and profit of the Cable Company be increased, instead of diminished. This Chamber would respectfully ask the Government to communicate with the various Australian Governments, and take such other action as may be deemed necessary in order to secure a reduction. I have, &c, J. Peacock, The Hon. the Postmaster-General and Commissioner of Telegraphs, Vice-President. Wellington.

No. 8. The Hon. the Postmasteb-Geneeal, Wellington, to the Vice-Pbesident, Canterbury Chamber of Commerce, Christchurch. Sib,— General Post Office, Wellington, 30th June, 1885. I have the honour to acknowledge the receipt of your letter of the 13th June, in which you forward the copy of a resolution of the Canterbury Chamber of Commerce concerning the cable charges between New Zealand and Australia, and urge that steps should be taken to reduce them. That a reduced rate would be convenient to those who use the cable is beyond doubt; but the same remark applies to every function performed by the Government or by private companies. The cheaper the service, the more serviceable it is to those who use it. The question is, what is a fair rate ? and I have to point out that you are entirely mistaken in the view you take of the existing charge. You write, " You are aware the present cable charges are extremely high—it is believed, much higher than on any cable in the world of about similar length." You are quite misinformed on the matter ; for the New Zealand-Australian cable charge, instead of being the highest, is, I am informed, the lowest in the world, as you will see by the attached information in tabular shape. When the moderate subsidy now given was arranged, it was pointed out by the contractors that lower rates were exacted by the Governments of New South Wales and New Zealand, as a condition of the subsidy, than obtained anywhere else. . The contractors now threaten to raise the rates unless the subsidy, which shortly, under the present agreement, ceases, is continued for a long period. With this information before you, I should like to have your views on the subject. That the mercantile interest which you naturally so carefully defend would benefit by low cable charges, or, indeed, by free messages, goes without saying; but the question is, are the Government justified in adopting a protectionist policy to foster, at a considerable cost to the whole community, the interests of the comparatively few who will be specially benefited ? Even in America, where the policy of protection reigns, it has never yet been extended to payments to enable cablegrams to be obtained at less than the rate competition regulates. Here there is no competition; but if the rate is reasonable as compared with those in other parts of the world, is a subsidy to obtain

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abnormally low rates justifiable ? When, in order to obtain a cable, a subsidy was necessary, I was the means of obtaining, after very obstinate resistance, the present low- rates. Under a mistaken impression, you urge they should be made lower; but the more important question will shortly arise, whether any subsidy should be given to prevent the rate from being raised. I have, &c, The Vice-President, Canterbury Chamber of Commerce, Julius Vogel, Christchurch. Postmaster-General.

Enclosure. Return showing the Length of the following Telegraph Cables, and the Charge per Word for Messages sent between the Countries connected by each.

No. 9. The Acting Seceetaey, Chamber of Commerce, Auckland, to the Hon. the PosthastebGeneeal, Wellington. Sie, — Chamber of Commerce, Auckland, 20th June, 1885. I have the honour, by direction, to forward copy of a resolution framed and passed by the Canterbury Chamber of Commerce, and which has been adopted in its entirety by this Chamber: "That, in the opinion of this Chamber, a joint effort should be made by the various Chambers of Commerce in this and the Australian Colonies to secure, if possible, a reduction in rates on messages sent by New Zealand cable line." In forwarding the foregoing, I am directed to respectfully point out that this Chamber fully concurs in the grounds put forth for a reduction in the rates, and that, from practical experience as a commercial body, they are in a position to state that not only would the mercantile community be much benefited by the proposed reduction of 2s. on the present charge for ten words, but that such reductions would conduce to a corresponding enhanced revenue and profit to the Cable Company. This Chamber therefore trusts that, before the renewal of the subsidy is decided upon, the Government will take into their earnest consideration the advisability of procuring a material reduction in the rates. I have, &c, The Hon. the Postmaster-General and Commissioner E. Menzies, of Telegraphs, Wellington. Acting Secretary.

No. 10. The Superintendent, Post Office and Telegraph Department, to the Seceetakt, Chamber of Commerce, Auckland. Sib,— General Post Office, Wellington, 3rd July, 1885. I have the honour, by direction of the Hon. the Postmaster-General and Commissioner of Telegraphs, to acknowledge receipt of the representations of your Chamber, conveyed in your letter of the 20th ultimo, in favour of a reduction in the charges for the use of the New Zealand-Austra-lian cable.

Between Length in Knots. ?ot ich ord. Remarks. sfew Zealand and New South Wales 1,282 s. d. 0 7J For first ten words, 6s.; for every additional word, 7d.; with Id. for New Zealand, and Id. for New South Wales. direct United States Ireland and Newfoundland ... Lisbon and Madeira ... England and Spain ... Madeira and St. Vincent Suez and Aden Lden and Bombay ... and Zanzibar ... 5t. Vincent and Pemambuco 3ort Darwin and Java ava and Singapore ... Singapore and Eangoon (India) 2,422 1,876 613 619 1,196 1,443 1,888 1,908 1,844 1,131 919 1,243 1 8 1 2 1 0 0 6 2 5 1 3 2 4 4 0 5 0 3 9 1 4 2 4 Singapore to Malacca, 116 knots; Malacca to Penang, 274 knots; Penang to Eangoon, 853 knots : total, 1,243 knots. Length estimated. Length estimated. Distance between Cuba and the mainland of Florida is only 140 miles. i jingapore and Madras Jnited States and Havana (Cuba)... 1,800 250 2 4 0 7

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I enclose a copy of a letter (vide No. 8) of the 30th ultimo from the Postmaster-General to the Chamber of Commerce at Christchurch, in answer to a communication from that body of similar purport, which I am to beg you to be good enough to accept as a reply to your own, in so far as it applies. I have, &c, C. Lemon, The Secretary, Chamber of Commerce, Auckland. Superintendent.

No. 11. The Secretaby, Chamber of Commerce, Invercargill, to the Hon. the Postmaster-General, Wellington. Sir,— Chamber of Commerce, Invercargill, 20th June, 1885. In pursuance of a resolution passed by the Chamber at a meeting held on the 19th instant, I have the honour, on their behalf, to recommend that a reduction be made in the rates on cable messages sent by the New Zealand cable. This Chamber is of opinion that if the rates were considerably reduced the result would be a sufficient increase of the number of messages sent as to increase the revenue from this branch of the service. I have, &c, Charles Bout, The Hon. the Postmaster-General, Wellington. Secretary.

No. 12. The Superintendent, Post Office and Telegraph Department, to the Secretary, Chamber of Commerce, Invercargill. Sib,-— General Post Office, Wellington, 3rd July, 1885. I have the honour, by direction of the Hon. the Postmaster-General and Commissioner of Telegraphs, to acknowledge receipt of the representations of your Chamber, conveyed in your letter of the 20th ultimo, in favour of a reduction in the charges for use of the New Zealand-Australian cable. I enclose a copy of a letter, of the 30th ultimo, from the Postmaster-General to the Chamber of Commerce at Christchurch, in answer to a communication from that body of similar import; which I am to beg you to be good enough to accept as a reply to your own, in so far as it applies. I have, &c, C. Lemon, The Secretary, Chamber of Commerce, Invercargill. Superintendent.

No. 13. The Chairman of Directors, United Press Association, to the Hon. the Postmaster-General. Sir, — United Press Association, Wellington, 23rd July, 1885. [Referring to the interview which you were good enough to grant to the directors of this association on Wednesday, in reference to the cable rates between Australia and New Zealand, I have now the honour, on behalf of the directors, to bring under your notice the position in which the Press of this colony is placed in regard to obtaining cable news. There is no concession whatever made to the Press for news messages on the cable between Australia and New Zealand, and full rates have to be paid for every word received, including even the address and signature of messages. We believe that it is not the practice on other cable-lines to insist on ordinary full rates for Press news; but, on the contrary, half-rates, and in some cases one-third rates, are charged. A large reduction, which it is anticipated will be made on the rate for Press messages from England to Australia, will place the New Zealand Press at a most serious disadvantage as compared with that of Australia, unless some corresponding concession of rates is made on the cable between Australia and New Zealand. Heretofore the New Zealand Press, by arrangement with the Australian papers, have been enabled to obtain equal cable news ; but they are not in a position to pay the present full rates for the greatly-increased quantity of news which will reach Australia from England upon the conclusion of negotiations which are now in progress. The United Press Association has no desire to use " code " messages or to decrease the present expenditure on obtaining cable news, and are quite willing to continue to pay an amount at least equal to what they have hitherto paid. As the cable between Australia and New Zealand is not, and is not likely for a long time to come to be, fully occupied with the transmission of messages, the directors would submit that the cable proprietors might, without loss of revenue or extra cost to themselves, reduce the rates of transmission for Press messages to 3d. per word, so as to enable a largely-increased quantity of news to be obtained in return for continued and guaranteed expenditure at least equal to the present average. Such a reduction would also enable the Australian Press to obtain much fuller New Zealand news than is at present supplied to it, and would probably encourage increased expenditure in this direction. On all these grounds, therefore, the directors venture to ask you to be good enough to use your

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influence with the proprietors of the cable to induce them to grant such a concession as we have suggested. The directors respectfully request that you will kindly communicate the purport of this letter by cable to the Eastern Extension Company, so that an early reply to their application may be given. I have, &c, W. Beeves, The Hon. Sir Julius Vogel, K.C.M.G., Postmaster-General. Chairman of Directors.

No. 14. The Chairman, Chamber of Commerce, Auckland, to the Hon. the Postmaster-General, Wellington. Sir, — Chamber of Commerce, Auckland, 18th July, 1885. I have the honour to acknowledge receipt of your letter of the 3rd instant, enclosing copy of a letter of the 30th ultimo from yourself to the Canterbury Chamber of Commerce re a reduction in the charges for use of the New Zealand-Australian cable, and asking this Chamber to accept such as a reply to its representations on the same subject. In reply I have to state that the matter has received the further serious consideration of the Chamber, and, with due deference to the arguments advanced by you, adhere to the opinion already expressed, that a reduction in the rates would lead to increased business and corresponding enhanced revenue and profit to the company; and they are further confirmed in this opinion, seeing that such satisfactory results have followed the materially-reduced rates now in force between Victoria and Tasmania. This Chamber would therefore again respectfully urge upon the Government the advisability of securing more favourable rates, and would suggest that an arrangement be made on the same basis as that existing between Victoria and Tasmania —viz., a Government guarantee against loss, in room of a subsidy. I have, &c, The Hon. the Postmaster-General and Commissioner of Gbaves Aiokin, Telegraphs, Wellington: Chairman.

No. 15. Hon. Sir Alexander Stuabt to the Hon. the Colonial Secretary, Wellington. Sir, — Colonial Secretary's Office, Sydney, 16th July, 1885. Referring to your letter of the 26th May last, respecting the necessity for the renewal of the subsidy towards the cable of the Eastern Extension Australasia and China Telegraph Company, I have the honour to inform you that a communication has been received from the Post Office Department, intimating that the question of the renewal of the subsidy, raised by the company, as also the question of a reduction in the rates over the New Zealand cable, have been under the careful consideration of the Postmaster-General, who has caused a letter dealing with both of the questions to be addressed to the Superintendent of the Company here to the effect that a renewal of the subsidy will be recommended if the charges on messages be reduced. I have, &c, The Hon. the Colonial Secretary, New Zealand, Wellington. Alex. Stuart.

Enclosure in No. 15. Secretary, General Post Office, Sydney, to the Superintendent, Eastern Extension Australasia and China Telegraph Company. Sie, — General Post Office, Sydney, 15th June, 1885. In November, 1884, the Agent-General forwarded from London a copy of a letter addressed to him by Mr. John Pender, Chairman of the Eastern Extension Australasia and China Telegraph Company, proposing that, as the New Zealand cable subsidy agreement, dated the 24th June, 1875, will terminate in February, 1886, the question of renewal of the subsidy for a further term of ten years should receive consideration. As New Zealand is jointly concerned in the maintenance of the cable, an expression of that colony's view was invited, and in April last the Postmaster-General intimated his opinion that there is now no need of any subsidy. But in close connection with the question of renewal or termination of the subsidy another question has arisen—namely, that of alteration of the tariff of charges. Strong representations have been made by both Melbourne and Sydney newspaper proprietors that the present tariff for Press messages is almost prohibitively high; and, on the Colonial Secretary's recent visit to New Zealand, the Press Association there also strongly urged the desirableness of the charge being reduced to 3d. a word. The Association offered, if this were done, to guarantee that the aggregate amount expended by them on cablegrams should not be less than it is at present. Sir Alexander Stuart quite concurs that the present charges are excessive. Of course no arrangements can be finally made by this colony without consulting New Zealand, but, as a preliminary step towards determining the questions at issue, the PostmasterGeneral directs me to request that you will ascertain whether, in the event of the proposal to renew the subsidy being favourably considered, your company will be willing to (1) reduce their charge to ss. for ten words, and 6d. for every subsequent word, both for private and Government messages, and (2) to reduce the charge on Press messages to 3d. per word, on being furnished with

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a Press guarantee that three times as much business will be done by the Press under the reduced charge as that done now. Although agreeing with the Postmaster-General of New Zealand that it would be preferable to abolish the subsidy if possible, yet, in view of all circumstances, and especially of the greater necessity for a lower tariff, the Postmaster-General thinks that the time for its abolition has not yet arrived; and if, therefore, the above reduction can be made, he will be prepared to recommend a renewal of the subsidy (from February next) for a further term. I have, &c, The Superintendent, Eastern Extension Australasia and S. H. Lambton, China Telegraph Company, La Perouse. Secretary,

No. 16. Mr. Gray to the Chairman, Eastern Extension Telegraph Company, London. (Telegram.) Wellington, 29th July, 1885. Newspapers very dissatisfied with present rates Sydney-New Zealand cable, especially at Press messages being charged at ordinary rates. They are willing to guarantee your company at least equal revenue with a rate reduced to threepence (3d.) per word. Postmaster-General will be glad if you give the matter early and favourable consideration, and cable reply. W. Gray, The Chairman, Eastern Extension Telegraph Company, London. Secretary.

No. 17. The Hon. Sir Alexander Stuart to the Hon. the Colonial Secretary, Wellington. Sir, — Colonial Secretary's Office, Sydney, 6th August, 1885. Referring to my letter of the 16th ultimo, respecting the renewal of the subsidy towards the cable of the Eastern Extension Australasia and China Telegraph Company, I have now the honour to enclose for your information a copy of the reply that has been received to the communication that was addressed to the Superintendent of the Company to the effect that a renewal of the subsidy would be recommended if the charges on messages were reduced. I have, &c, The Hon. the Colonial Secretary of New Zealand, Wellington. Alex. Stuaet.

Enclosure in No. 17. The Superintendent, Eastern Extension Australasia and China Telegraph Company (Limited), to the Secretary, General Post Office, Sydney. The Eastern Extension Australasia and China Telegraph Company (Limited), Sir,— Sydney Station, 13th July, 1885. In reply to your letter of the 17th ultimo, in which you state that the PostmasterGeneral is prepared to recommend the renewal of the subsidy for the New Zealand cable from February next, if my company be willing, first, to reduce-their charge to. ss. for ten words, and 6d. for every subsequent word, both for private and Government messages, and, secondly, to reduce the charge on Press messages to 3d. per word on being furnished with a Press guarantee that three times as much business will be done by the Press under the reduced charge as that done now, I have the honour, by direction, to inform you that, if the subsidy is renewed for the same term of ten years, my company is prepared to make the proposed reductions in charges for telegrams, subject to a satisfactory engagement being entered into by the Press as stated. I have, &c, S. H. Lambton, Esq., Secretary, General Post Office, J. Euston Squier, Sydney. Superintendent.

No. 18. The Hon. the Postmaster-General to the Hon. the Postmaster-General, New South Wales. (Telegram.) Wellington, 14th August, 1885. Referring to your letter 6th instant, we are inclined to submit your proposal to Parliament; but do you not think that Victoria, which has moved in the matter, will bear a share of subsidy. She and you might each pay a quarter, and we pay a half. You might try to arrange this with Melbourne during the next few days. We must know soon; as, failing what I now propose, we will submit your proposal to Parliament. Session nearly over. Julius Vogel, The Hon. the Postmaster-General, New South Wales. Postmaster-General.

No. 19. The Hon. the Postmaster-General, New South Wales, to the Hon. the Postmaster-General, Wellington. (Telegram.) Sydney, 27th August, 1885. Postmaster-General, Victoria, says, " I find that New South Wales does two and a half times

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more business than Victoria on the New Zealand cable. It would not, therefore, be a fair portion for this colony to pay one-quarter. Moreover, this colony pays the larger share of the loss on the guaranteed revenue to the Tasmanian cable, while the other colonies benefit by the reduced rates without contributing to make good the loss. I cannot concur in contributing to the New Zealand cable subsidy unless both subsidies are thrown into a general fund." In sending you foregoing reply, may mention that New South Wales has never previously been asked to contribute Tasmanian cable, and, of course, no time now to do so. J. Noeton, The Postmaster-General, New Zealand. Postmaster-General.

Authority: George Didsbubt, Government Printer, Wellington.—lBBs.