TELEGRAPH CABLES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-8c. presented on the 17th November, 1903.]

Appendix to the Journals of the House of Representatives, 1904 Session I, F-08

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1904. NEW ZEALAND.

TELEGRAPH CABLES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-8c. presented on the 17th November, 1903.]

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

INDEX. Eastern Extension Cables— Cape-Australia and Fremantle-Cocos. Agreement with the Eastern Extension Company, 1,5; Conference to discuss, 9, 48; Hansard Eeport of Debate, 4 ; New Zealand Officer proposed to collaborate with Mr. Reynolds, 3 ; New Zealand protesting against ratification, 7, 10; Queensland protesting against ratification, 6; Reynolds's Visit, Mr. 2, [28, 48]. Confeience: Disoussing Customs Duties, 9 ; Discussing Terminal Rates, 9; Personnel 9, 10 ; Place, 9. Direct Communication with South Afrioa, 8 .. .. .. '23 Australia-New Zealand. Signalling Name of Country free, 11 .. .. .. .. ~ ~ _ _ 4 Pacific Cable— Buildings, Depot, Finance, &c. Business, Increase in, 36. Copper Wire, Southport-Sydney, 18. Depot: Auckland Harbour Board granting Accommodation, 44, 45 ; Examination of Sites, 28-31, 35, 40 ; Plan of Site, 43, 44; Presentation by Government of Site at Auckland, 27, 35; Removal, Fiji to Auckland, 14, 15, 17, 42. Direot Working, Southport-Sydney, 18, 32; Duplex, 19 ; Quadruplex, 18, 19. Doubtless Bay Cable'station: Dividing Cost of working, 13; Expenditure, 12, 16, 21-23, 26, 38, 39; Salaries recoverable, 20,22, 24, 25 " Equipment," Definition of, 40. Estimated Expenditure and Revenue, 36, 41. New Zealand's Share of Loss on working Cable, 33, 34, 37. Payments made on behalf of Cable Board, 21; for oanvassing, 21, 22. Queensland Traffic, Second Circuit, 32. Reynolds's Visit, Mr., 2], 28, 48 ..4-11 Bates. European, on extra-European Telegrams, 49 ; British Delegates at International Conference, 1903, 49, 52. German Trans-Atlantio Company's, for European Telegrams, 53, 54. Government Telegrams, 46; proposed Reduction of Terminal, 46, 47. Atlantic Telegraph and Canadian Paoific Railway Companies reducing, 46. Federal Parliamentary Paper on proposed Reduction, 50, 51. Ordinary Telegrams to Fanning Island and to New Zealand, 46. Pooling Terminal, 48 .. .. ~ 11-14 Canvassing. Booklets, 58 ; Maps, 64 ; Office Card, 58 ; Rubber Stamps, 63 ; Specially superscribed Forms, 63 ; Tariff Pamphlets, 58. Expenditure, 63. Firms and Companies in London doing Business with New Zealand, 65. Interruption from Physical Causes, Report of, 60, 61. New South Wales, Queensland, and Victorian Appointments, 56, 57. New Zealand Herald Article, 55, 59. Personal Canvass, 62. Speoial Representative in Australasia, 65. Times of Transmission, 58 .. .. .. .. .. 15-18 Press Telegrams. Australasian Association using Cable, 67. Distribution from Norfolk Island and Southport refused, 67, 70, 71. Free Press News for Three Months proposed, 66, 69. Larke's Report, Mr., 66. Limited News Servioe, Sir Sandford Fleming proposes, 72, 73 .. .. .. .. .. 18-20 Miscellaneous— Wireless Telegraph, Australia-New Zealand, proposed, 74, 76, Wireless Telegraphy Act, 75 ~ ~ 20

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EASTERN EXTENSION COMPANY'S CABLES.

CAPE-AUSTRALIA AND FREMANTLE-COCOS.

No. 1. The Secretary, Pacific Cable Board, London, to the Hon. the Prime Ministee, Wellington. Pacific Cable Board, 24, Queen Anne's Gate, London, S.W., g _ 20fch July, 1903. I am directed by the Pacific Cable Board to acknowledge, with thanks, your letter of the 18th ultimo enclosing a cony of further correspondence [F.-Ba, 1903] with the Bight Hon. Sir B Barton Prime Minisier of the Australian Commonwealth, relative to the agreement with the Eastern Extension Company, in which correspondence is embodied a copy of the agreement in Question 1 am ' &c -' The Hon. the Prime Minister, Wellington. Hugh Latham, Secretary.

No. 2. The Hon. the Postmaster - General, Wellington, to the General Manager, Pacific Cable Board, at Vancouver. (Telegram ) Wellington, 29th July, 1903. As Parliament sitting, regret unable meet you unless you come on to Wellington. Hope you can arrange. If not, Gray will meet you at Auckland.

No. 3. The Agent-General to the Hon. the Prime Minister. (Telegram.) n London, Ist August, 1903. Pacific Cable Board suggests that New Zealand Postmaster-General or some other responsible officer should meet Mr. Eeynolds at Auckland on the 24th August, and go to Australia with him to devise means for obtaining a settlement of differences with Federal Government.

No. 4. The Hon. the Prime Minister, Commonwealth of Australia, Melbourne, to the Hon. the Prime Minister, Wellington. Commonwealth of Australia, Department of External Affairs, g m Melbourne, sth August, 1903. In continuation of my telegraphic despatch of the 30th ultimo [E.-Ba., 1903, p. 12], reporting the confirmation by the House of Representatives of the agreement with the Eastern Extension Company, I have the honour to enclose for your information copies of Hansard containing a report of the "debate. I have, &c, ° Edmund Barton. The Hon. the Prime Minister of New Zealand, Wellington.

No. 5. The Hon. the Prime Minister to the Agent-General. g IR) _ Prime Minister's Office, Wellington, 13th August, 1903. I have the honour to acknowledge the receipt of your letter of the 11th June last, transmitting copy of a letter from Sir Horace Tozer, addressed to the Times, on the subject of the Pacific cable, and of one referred to therein from Sir John Cockburn. Both letters have been printed and laid before Parliament as an addendum to the Parliamentary Paper F.-Ba, giving the correspondence as well as the agreement between the Commonwealth and the Eastern Extension Telegraph Company, and bringing the history of the case up to date. You will receive a copy of both papers in the usual course. I have, &c, The Hon. W. P. Beeves, R- J. Seddon. Agent-General for New Zealand, London.

No. 6. The Hon. the Premier, Brisbane, to the Hon. the Prime Minister, Wellington. (Telegram.) Brisbane, 17th August, 1903. Pacific cable : Have strongly protested against Federal Government ratifying agreement with Eastern Extension Company without special Conference of parties interested. Consider Conference should be held. Hope you will support protest,

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No. 7. The Hon. the Prime Minister, Wellington, to the Hon" the Premier, Brisbane. (Telegram.) Wellington, 18th August, 1903. New Zealand Government strongly protested against Federal Government ratifying agreement Eastern Extension Company. Have sent to-day the following telegram to Barton :— " Still urge objection ratification of agreement Eastern Extension Company. Hope matter may stand over until, at all events, Conference partners Pacific cable held. Courtesy and consideration would, I feel sure, tend soften tension existing." Firmly of opinion no exigency of Australian States who were original partners Pacific cable would warrant departure intended. To refuse to confer intensifies feeling that other contracting parties being unfairly dealt with.

No. 8. The Deputy Postmaster-General, Sydney, to the Secretary, General Post Office, Wellington. (Telegram). Sydney, 24th October, 1903. Direct communication with South Africa was restored on twelfth instant.

No. 9. The Hon. the Prime Minister, Commonwealth of Australia, Melbourne, to the Hon. the Prime Minister, Wellington. Commonwealth of Australia, Department of External Affairs, Sir,— Melbourne, 18th November, 1903. In continuation of my letter of the 10th instant [not printed] in which the receipt of yours of the 23rd October [No. 14, F.-Bc, 1903] was acknowledged, I have the honour to inform you that I am in receipt of a telegram from the Acting Agent-General for New South Wales in London, one of the representatives of the Commonwealth on the Pacific Cable Board, to the effect that the Colonial Office consider that the subjects for discussion at the Conference in connection with Pacific cable matters should be those which are mentioned in your communication. I do not anticipate that there will be any difficulty with regard to terminal rates and Customs duties, as the last proposal made by this Government respecting terminal rates goes a very long way towards meeting the wishes of the Board ; and this Government has conceded that, though it is not possible to exempt cable material from being charged with Customs duties, all such duties will be refunded to the Board. Will you be so good as to intimate more precisely the points on which it is hoped that a discussion in regard to the agreement with the Eastern Extension Company will enable the Commonwealth to secure more advantageous terms than those which have been provisionally agreed upon ? • With regard to the personnel of the Conference, the Colonial Office apparently desire that it should be held in London, and the Secretary of State has intimated that he will personally preside over it. As all these questions have been closely considered by the Cable Board, it would appear that the proceedings at any Conference constituted solely of members of that Board would not be likely to throw any new light upon them. I think it would be advantageous, therefore, if the partners were at liberty to nominate one or two additional representatives. I have telegraphed to London that I have put this suggestion before you, and shall be pleased to learn at the earliest convenient date that it has your concurrence. I have, &c, The Hon. the Prime Minister, Wellington. Alfred Deakin.

No. 10. The Hon. the Prime Minister, Wellington, to the Hon. the Prime Minister, Commonwealth of Australia, Melbourne. Sir, — Prime Minister's Office, Wellington, 29th December, 1903. I have the honour to acknowledge the receipt of your letter of the 18th ultimo on the subject of the Conference which is to be held in London presently in connection with Pacific cable matters. I note that you have received from the Acting Agent-General for New South Wales a telegram announcing that the Colonial Office considers that the subjects for discussion should be those mentioned in my letter of the 23rd October last. With reference to the question in the third paragraph of your letter, I desire to repeat that New Zealand disapproves altogether of the proposed agreement between the Commonwealth and the Eastern Extension Telegraph Company. Briefly, lam of opinion that the discussion should show that the agreement is one which should not in the interest of the Pacific cable be ratified— certainly not without the consent of all the partners. That the agreement practically binds the Commonwealth to a period of thirteen years, assuring to the company during that time all the material advantages in business rivalry secured by the right to have separate offices and to deal with the public directly at the principal centres in Australia, besides allotting special wires for international traffic handled by the company, which, in my opinion, would seriously interfere with the business and success of the State-owned cable. Regarding the personnel of the Conference, I may say that this Government is quite satisfied to have the colonies represented by their Agents-General. I have, &c, R. J. Seddon. The Hon. the Prime Minister of the Commonweath of Australia, Melbourne.

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AUSTRALIA-NEW ZEALAND.

No. 11. The Acting Superintendent, Eastern Extension Company, Wakapuaka, to the Secretary, General Post Office, Wellington. Eastern Extension Australasia and China Telegraph Company (Limited), Sir, — Cable Bay, Wakapuaka, 21st December, 1903. I have the honour, by direction, to inform you that this company will from this date accept and signal, free of cost to the sender, the name of the country in all cablegrams where such may be deemed necessary by your Department, as is done by the Pacific Cable Board. I have, &c, H. E. A. Twyford, The Secretary, General Post Office, Wellington. Acting-Superintendent.

PACIFIC CABLE.

BUILDINGS, DEPOT, FINANCE, ETC.

No. 12. The Secretary, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. 24, Queen Anne's Gate, London, S.W., 28th February, 1903. Si ßj Treasury Audit. In view of the Treasury audit of this Board's accounts for the financial year, 1902-3, it is desirable that the certified statement of your Government's expenditure in connection with the Doubtless Bay cable-station, including any vouchers which you may consider necessary to support such statement, should be addressed to this office as soon after the 31st proximo as possible, and I am therefore directed by the Pacific Cable Board to request you to be good enough to give the necessary directions for their preparation, and to afford Mr. Hertslet, the Board's Superintendent, an opportunity of certifying that the buildings and accessories supplied to that station are in accordance with the plans and specifications, and accurately described in the accounts. I am, &c, The Hon. the Postmaster-General, Wellington. Hugh Latham, Secretary

No. 13. The Secretary, Pacific Cable Board, Loudon, to the Hon. the Postmaster-General, Wellington. Sir,— 24, Queen Anne's Gate, London, S.W., 20th March, 1903. I am directed by the Pacific Cable Board to acknowledge with thanks the receipt of your letter of the 11th February [No. 115, F.-8, 1903], informing me of your Government's acceptance of this Board's proposal that the colony should pay an annual sum equal to 6 per cent, on half the capital cost of station buildings at Doubtless Bay, to cover its proportion of rent, repairs, and superintendence, the whole of the buildings becoming the property of the Pacific Cable Board on payment of such capital outlay ; also, that your Government will refund to the Board the actual salaries and foreign-service allowances of the operators engaged on the land-line service, leaving the alternative suggestion of a composition payment under this head to be considered at a later date. The Board further observe that your Government cannot accept the proposal that half the cost of the abstract and check clerks at the station should be borne by the colony, for the reason that it employs a duplicate staff of its own. The Board appreciate the justice of this reasoning and withdraws the proposal, which was put forward in the belief that the whole of the checking and abstract work was carried out by the station staff. I have, &c, The Hon. the Postmaster-General, Wellington. Hugh Latham, Secretary.

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No. 14. The Agent-General to the Hon. the Prime Minister. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 3rd June, 1903. I beg to acknowledge the receipt of your cablegram of the 23rd May last [not printed], instructing me to bring the matter of transferring the depot at Fiji to Auckland before the Board, and this I have accordingly done. The Board have agreed that Mr. Reynolds shall inquire into the matter, and I have little doubt that if Captain Lacy and Mr. Reynolds concur in recommending that the depot be shifted to Auckland the proposal will be carried into effect. Something will depend on whether the Government can provide a suitable site for the depot, and I would suggest that the Marine Department might be desired to look into the matter as soon as possible, and that I should be informed as to the result of their inquiry. I have, &c, The Hon. the Prime Minister, Wellington. W. P. Reeves.

No. 15. The Hon. the Postmaster-General, Wellington, to the Chairman, Pacific Cable Board, London. (Telegram.) Wellington, 15th July, 1903. Question headquarters repairing-ship brought up in Parliament. Urged that Auckland be selected, as healthier than Suva, and better suited ship's company. Would ask Board consider.

No. 16. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Superintendent of Electric Lines, Wellington. (Telegram.) Doubtless Bay, 16th July, 1903. Board has agreed to accept Lane and Sons' offer [not printed] to erect cottage provided total cost does not exceed five hundred pounds. Will you please have Mr. Vickerman instructed accordingly ?

No. 17. The Chairman, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. (Telegram.) London, 21st July, 1903. Board awaits Reynolds's report after discussion with Commander of " Iris " before settling headquarters.

No. 18. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Douhtless Bay. (Telegram.) Wellington, 23rd July, 1903. Can you inform me in what manner Pacific traffic is dealt with between Sydney and Brisbane ? Has a copper wire been erected in the interests of Pacific cable, and is there quad, working ? Some time ago it was reported that special copper wire would be erected, but I have been unable to learn that this has actually been done.

No. 19. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 23rd July, 1903. Judd says, " A duplex line is provided for the Pacific traffic between Brisbane and Sydney. Two quad, circuits are available in case of a rush." ....

No. 20. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. Sir,— General Post Office, Wellington, 29th July, 1903. I beg to acknowledge the receipt of your letter [not printed] of the 26th ultimo, enclosing a statement [not printed] of salaries recoverable from this Department; and, in reply, to inform you that the claim will be dealt with in due course. In rendering future accounts, I should be obliged if you would set out the annual salary paid to each officer. Yours, &c, W. Gray, Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

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No. 21. The Secretary, General Post Office, Wellington, to the Secretary, Pacific Cable Board, London. Sm _ General Post Office, Wellington, 29th July, 1903. I have the honour, by direction of the Postmaster-General, to acknowledge receipt of your letter of the 28th February last, requesting that a certified statement of this Government s expenditure in connection with the Doubtless Bay Cable-station be sent you as soon as possible after the 31st March, and that such statement be forwarded to your Superintendent at Doubtless Bay for the purpose of his certifying that the buildings and accessories supplied to that station were in accordance with the plans and specifications, and accurately described in the accounts. _ A statement furnished by the Public Works Department, of which the accompanying is a copy, has been forwarded to Mr. Hertslet for the purposes indicated in your letter Should he require further data or vouchers, I have no doubt that these will be supplied by the Public Works you a statement of payments made by this Department on behalf of your Board, in connection with the items set out in the statement. A copy of the statement has also been forwarded to Mr. Hertslet, to enable him to deal with such of the items as may affect his 1 Under cover of a letter [No. 63] addressed to the Chairman of your Board by the PostmasterGeneral, a statement of the expenses connected with the canvassing for cable business has been forwarded by the present mail. , I think I should mention that I have received a counter-claim from Mr. Hertslet for £298 Is. sd. in respect of proportion of salary due by this Department for staff at Doubtless Bay up to the 31st March last. This will be duly credited the Board. I have, &c. The Secretary, Pacific Cable Board, London. . W. Gray, Secretary.

No. 22. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. s _ General Post Office, Wellington, 29th July, 1903. In a letter to the Postmaster-General from the Secretary, Pacific Cable Board, dated 28th February last, this Department was requested to send you a statement of the Government expenditure m connection with the Doubtless Bay cable-station, in order that you might have an opportunity of certifying that the buildings and accessories supplied to that station were in accordance with the plans and specifications, and accurately described in the accounts I accordingly send you copy of the statement furnished by the Public Works Department, and have informed the Board that this has been done. . , , „ ~v I also forward you copy of statement of expenditure by this Department on behalf of the Board, so that you may verify such of the items as affect your own office ~..,, For your own information I attach copy of statement of payments made on behalf of he Board in connection with the recent canvassing. The original has already gone forward to the "_. a separate letter I have acknowledged receipt of your claim for salaries of staff up to the 31st March last, amounting to £298 Is. sd. This will be paid to the Board m due course. I have, &c, W. Gray, Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

No. 23. The Under-Secretary, Public Works Department, Wellington, to the Superintendent of Electric Lines, Wellington. (Memorandum.) Public Works Department, Wellington, 7th August, 1903. Re Cottage at Gable Station, Doubtless Bay. In reply to your memorandum of the 4th instant [not printed] relative to the above, I have to state that the District Engineer at Auckland-was authorised, on the 27th v timo, to accept Messrs. T M Lane and Sons' offer of £500 for the erection of the building, and the contract was signed yesterday, 6th instant. m „. H. J. H. Blow, Under-Secretary. The Superintendent of Electric Lines, Wellington.

No. 24. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. s _ Pacific Cable Board, Doubtless Bay Station, 11th August, 1903. I have to acknowledge the receipt of your letter dated the 29th July; and, in reply I beg to inform you that future claims for recovery of salaries for your Department will show the annual salary and foreign allowance paid to each officer. I am, &c, C. L. Hertslet, Superintendent. The Secretary, General Post Office, Wellington.

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No. 25. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. Sir,— General Post Office, Wellington, 29th August, 1903. Referring to your letter of the 11th instant, I beg to inform you that a voucher for the sum of £298 Is. sd. has been passed for payment to your Board, being the proportion of salary due by this Department on account of staff at Doubtless Bay for the period from the Ist April, 1902, to the 31st March, 1903. Yours, &c, W. Gray, Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

No. 26. The Secretary, Pacific Cable Board, London, to the Secretary, General Post Office, Wellington. Pacific Cable Board, 24, Queen Anne's Gate, London, S.W., Sir,— 22nd September, 1903. I am directed by the Pacific Cable Board to acknowledge the receipt of your letter of the 29th July, enclosing accounts of expenditure incurred on this Board's behalf by your own Department and. that of your Government's Public Works, amounting to £35 Is. 2d. and £5,918 lis. 4d. respectively. I have to-day received from Mr. Hertslet, the Board's Superintendent at Doubtless Bay, the duplicates referred to in your letter, duly certified by him as being correct with the exception of certain items authorised by the Board but of which Mr. Hertslet had no knowledge. In accordance with these accounts, instructions have been given to the Bank of New Zealand to direct the payment of the total amount of £5,953 12s. 6d. to the Postmaster-General, Sir Joseph Ward. I am also directed to convey to Sir J. G. Ward the thanks of the Board for the very active assistance extended them by your Government in all matters connected with the introduction and administration of the Pacific cable in New Zealand. I have, &c, The Secretary, General Post Office, Wellington. Hugh Latham, Secretary.

No. 27. The Hon. the Prime Minister to the General Manager, Pacific Cable Board, at Wellington. Sir,— Wellington, 28th September, 1903. Referring to our conversation respecting site and wharf for cable purposes at Auckland, should it be decided to change from Fiji, I have the honour to inform you that if the company decide to make Auckland its depot the New Zealand Government would be prepared to furnish a site there and provide the necessary equipments; and in making any recommendations to your Board you may state that such an offer has been made by this Government. I have, &c, C. H. Reynolds, Esq., R. J. Seddon. General Manager, Pacific Cable Board, Wellington.

No. 28. The Secretary, General Post Office, Wellington, to the Inspector of Telegraphs, Auckland. (Telegram.) Wellington, 30th September, 1903. Mr. Reynolds arrives this morning. He is to look into matter of site for depot with deep-water frontage, admitting of wharf being inexpensively built. Understand there is Government land near fortifications and sugar-works. Will you assist Mr. Reynolds in his examination, and confer with Secretary, Harbour Board, and District Engineer, whom I have telegraphed ?

No. 29. The Secretary, General Post Office, Wellington, to the District Engineer, Public Works Department, Auckland. (Telegram.) Wellington, 30th September, 1903. Will you see Mr. Meddings re site with deep-water frontage in connection with depot and wharf for Pacific Cable Board. Mr. Reynolds, General Manager, arrives in Auckland this morning. He has been in communication with Government. The Premier thinks there are suitable sites near fortifications and sugar-works.

No. 30. The Secretary, General Post Office, Wellington, to the Secretary, Harbour Board, Auckland. (Telegram.) Wellington, 30th September, 1903. Mr. Reynolds, General Manager, Pacific Cable, arrives Auckland this morning. He purposes inquiring about suitable site for depot with deep-water frontage for wharf for repairing-steamer " Iris." Will you facilitate his inquiries in every way? Probably Board has suitable site,

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No. 31. The Inspector of Telegraphs, Auckland, to Secretary, General Post Office, Wellington. (Telegram.) Auckland, 30th September, 1903. I met Mr. Reynolds this morning, and arranged with Secretary, Harbour Board, to meet him. This afternoon I took him to the Harbour Board Office and introduced him to the Chairman and Secretary. Their launch was placed at our disposal, and we all went round harbour, inspected various sites, and came to conclusion the one at Kauri Point very suitable.

No. 32. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 21st October, 1903. Direct working Southport to Sydney commenced yesterday morning, and has proved very satisfactory. A second circuit has been set up for Queensland traffic.

No. 33. The Hon. the Prime Minister to the Agent-General. Sir, — Prime Minister's Office, Wellington, 19th November, 1903. I have the honour to inform you that the Treasury Department has this day been requested to remit to you by cable the sum of £57 lis. 7d., the balance due in respect of New Zealand's proportion of the loss in the working of the-Pacific cable for the period ended the 31st March, 1903. I have, &c, J. G. Ward, The Hon. W. P. Peeves, For Prime Minister. Agent-General for New Zealand, London.

No. 34. The Agent-General to the Hon. the Prime Minister. Westminster Chambers, 13, Victoria Street, London, S.W., (Memorandum.) 26th November, 1903. The Imperial Treasury having applied through the Colonial Office for the payment of the New Zealand contribution to the cost of the Pacific cable for the year ended the 31st March last, amounting to £10,057 lis. 7d., I have made the payment under the authority of bank order No. 23 of 20/1/03 and of the cablegram received from the Hon. the Minister on the 20th instant. I may mention that the bank order was not accompanied with any instructions either from the Treasury or from the Telegraph Department in respect of the particular purpose for which the payment was required, and no application was made for it until I received on the 21st instant the Colonial Office's letter, copy of which I herewith transmit. I need scarcely remark that it would have saved time and expense had the Colonial Office communicated with myself instead of telegraphing to Lord Ranfurly, particularly as that office was aware that £10,000 had been imprested to me to meet the payment in question. The Hon. the Prime Minister, Wellington. W. P. Reeves.

Enclosure in No. 34. The Assistant Under-Secretary of State for the Colonies to the Agent-General. Sir,— Colonial Office, S.W., 21st November, 1903. I am directed by Mr. Secretary Lyttelton to state that the Lords Commissioners of the Treasury are anxious that the New Zealand contribution to the cost of the Pacific cable for the year ended the 31st March last, amounting to £10,057 lis. 7d., should be paid over to the credit of the vote for telegraph subsidies and Pacific cable at the Paymaster-General's Office as soon as possible, since payment has to be made on the Ist proximo to the National Debt Commissioners of the annuity in respect of the moneys advanced for the construction of the cable. 2. From a despatch from the Governor of New Zealand, dated the 20th July, His Majesty's Government are aware that a sum of £10,000 was imprested to you by your Government in December last for payment of their share of the cost of the cable for the year 1902-3, leaving only the small amount of £57 lis. 7d. to be still arranged for. A telegram explaining the importance of payment before the Ist December was sent to Lord Ranfurly on the 10th instant, and it has been thought desirable to acquaint you also with the circumstances of the case. I am, &c, The Agent-General for New Zealand. H. Bertram Cox.

No. 35. The Chairman, Pacific Cable Board, London, to the Hon. the Prime Minister, Wellington. (Telegram.) Loudon, 26th January, 1904. Board has decided to make Auckland headquarters " Iris," and gratefully accept your offer in letter of 28th September land and equipments. Kindly authorise local officers to consult with Lacy as to requirements, and inform Lacy.

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No. 36. The Agent-General to the Hon. the Prime Minister. Westminister Chambers, 13, Victoria Street, London, S.W., Sib,— 30th January, 1904. I have the honour to enclose for your information an amended estimate of receipts and expenditure of the Pacific cable for the financial year 1903-4, now nearly at an end. You will note that the amended estimate puts both the revenue and the working-expenses somewhat higher than the original estimate. The revenue is now expected to be £2,900 higher, and the workingexpenses £1,052 higher. Personally, I shall be surprised if the receipts do not exceed £77,000. I also enclose estimates of revenue and expenditure for the next financial year —that of 1904-5. You will note that the deficit for that year is estimated at £89,810. I hope, however, that the improved condition of Australia may cause an increase of business there, and so reduce the actual amount of the deficit to be met. You will be glad to know that the two last months' record of business on the line shows an improvement. The New Zealand business from your end has from the first been excellent, and remains so. What we require is better support in Australia and in London, and we ought also to secure our share of continental business. How much we shall get of the last-mentioned will depend upon the view you take of our policy in regard to the agreement with the German Atlantic Cable Company. I have, &c, The Hon. the Prime Minister, Wellington, New Zealand. • W. P. Reeves.

Enclosure 1 in No. 36. Pacific Cable Estimates, Ist April, 1904, to 31st March, 1905. Receipts. £ £ Expenditure. £ Through traffic per week at present rate 1,200 Second annuity-payment .. .. .. 77,545 Weekly allowance for Atlantic com- Head office .. .. .. .. 5,000 panics' charges for insertion of date Stations .. .. .. .. .. 29,722 and time .. .. .. 50 Ship .. .. .. .. .. 19,250 Renewals and depreciation .. .. .. 35,000 Weekly receipt on through traffic .. 1,150 Royalty on instruments .. .. .. 500 Yearly receipt on through traffic .. .. 59,800 Engineers'fees .. .. .. .. 300 Yearly reoeipt on local traffic .. .. 13,600 Provident Fund .. .. .. .. 1,493 Allowance for additional receipts .. .. 5,600 Estimated deficit .. .. .. .. 89,810 £168,810 £168,810

Enclosure 2 in No. 36. The Pacific Cable Board : Comparison of Estimates for 1903-4 and 1904-5. 1903-4 Estimate. Receipts. £ Expenditure. £ Traffic revenue ... ... ... 73,400 Annuity-payment and renewals ... 113,045 Deficit ... ... ... ... 92,100 Working-expenses ... ... 52,455 £165,500 £165,500 1903-4 Amended Estimate, after six months' ivorking. Receipts. £ Expenditure. £ Traffic receipts ... ... ... 76,300 Annuity and renewals ... ... 113,045 Deficit ... ... ... ... 90,258 Working-expenses ... ... 53,513 £166,558 £166,558 1904-5 Estimate. Receipts. £ Expenditure. £ Traffic revenue ... ... ... 79,000 ! Annuity and renewals ... ... 112,545 Deficit ... ... ... ... 89,810' Working-expenses ... ... 56,265 £168,810!' £168,810

No. 37. The Hon. the Prime Minister to the Agent-General. Sir, — Prime Minister's Office, Wellington, Ist February, 1904. I have the honour to acknowledge the receipt of your memorandum of the 26th November last, in reference to the payment by you of this colony's contribution of £10,057 lis. 7d. towards the cost of the Pacific cable for the year ended the 31st March last, and also forwarding copy of letter from the Colonial Office on the matter.

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I regret that payment of the £10,000 remitted by the Treasury in January of last year could not be made at the time of receipt, owing to the fact that no instructions accompanied the bank order. You would, however, have learned the purpose to which the remittance was to be applied from my letter of the 10th December, 1902, and that, if the full amount were required, the balance would be remitted later. The Government was only made aware on the 6th October last, by a despatch of the 22nd August to His Excellency the Governor from the Colonial Office, that the actual additional sum due was £57 lis. 7d. This was remitted to you by cable on the 20th November last, and my letter of the previous day advised you of the fact. I have, &c, J. Carroll, For the Prime Minister. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

No. 38. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. 8 18 , General Post Office, Wellington, 15th February, 1904. I beg to forward herewith, for your information, copy of a letter to the Secretary, Pacific Cable Board, London, accompanied by a statement showing the amount expended in the erection of a cottage at your station. If your certificate is needed, I shall be obliged if you will forward it to the General Manager by first mail. I have, &c, W. Gray, Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

Enclosure in No. 38. Public Works Department.—Statement showing Amount expended by this Department in connection with the Erection of Cottages at Doubtless Bay Cable-station. Particulars. Amount. £ s. d. Payments to contractor ... ... ■ • • • • • 500 0 0 Pipes for additional drainage ... ... ... ••• 017 6 Advertising for tenders ... ••■ ••• ••• 200 Overseer's expenses ... ... •■■ •■■ ••• 500 £507 17 6 G. J. Clapham, Accountant. Public Works Department, Wellington, 10th February, 1904.

No. 39. The Secretary, General Post Office, Wellington, to the Secretary, Pacific Cable Board, London. g IB General Post Office, Wellington, 15th February, 1904. I have the honour to forward herewith a statement [enclosure in No. 38] showing the amount expended by the Public Works Department in connection with the erection of a cottage at the Doubtless Bay Cable-station. The amount expended is £507 17s. 6d., and I shall be glad if you will arrange that a remittance be sent in due course. I have, &c, W; Gray, Secretary. The Secretary, Pacific Cable Board, 24, Queen Anne's Gate, London, S.W.

No. 40. The Hon. the Electric Telegraph Commissioner, Wellington, to Captain Lacy, Auckland. (Telegram.) Wellington, 4th March, 1904. Your telegram of yesterday re site for " Iris " : A conference should be held at once between yourself, a member of the Harbour Board, the Resident Engineer, and the Inspector of Telegraphs, as to the selection of a suitable site. I have telegraphed the Inspector of Telegraphs to see you and make arrangements accordingly. lam of opinion the term " equipment " should be defined, and whether it is intended to cover wharf, cable-tanks, buildings, &c, or what.

No. 41. The Hon. the Prime Minister to the Agent-General. g IB . Prime Minister's Office, Wellington, 12th March, 1904. I have the honour to acknowledge the receipt of your letter of the 30th January last, forwarding copy of the amended estimate of receipts and expenditure for 1903-4, and an estimate of the revenue and expenditure for the year 1904-5. I have, &c, J. G. Ward, For the Prime Minister. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

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No. 42. The Hon. the Prime Minister, Wellington, to the Chairman, Pacific Cable Board, London. Sir, — Prime Minister's Office, Wellington, 9th April, 1904. I have the honour to acknowledge the receipt of your letter of the 27th January last, confirming your cable message that the Pacific Cable Board had decided to make Auckland the headquarters of the " Iris," and accepting the offer of land and equipments necessary to enable this to be done. Your acknowledgment of the support given by this Government to the Pacific cable is appreciated. I have, &c, J. G. Ward, The Chairman, Pacific Cable Board, For the Prime Minister. 24, Queen Anne's Gate, London, S.W.

No. 43. The District Engineer, Public Works Department, Auckland, to the Inspector of Telegraphs, Auckland. (Memorandum.) Public Works Office, Auckland, 25th April, 1904. As verbally requested by you, I forward herewith a tracing, copy of plan 2579, Auckland, showing the soundings and the position necessary for a wharf to accommodate H.M.C.S. " Iris," between the Calliope Dock and the Victoria Wharf. It will start from the east end of the present Admiralty Yard, just clear of it, with the cabletank 24 ft. diameter inside, to the west of it, as shown. The approach or shore end of the jetty will be about 640 ft. long, in 20 ft. spans, and 7 ft. wide, with a tramway on it, and the tee will be 150 ft. by 40ft., in 15 ft. spans, with a 100 ft. by 30ft. shed on it. There will also be a dolphin at each end about 120 ft. clear of the tee for mooring to. Chas. R. Vickerman, The Inspector of Telegraphs, Auckland. District Engineer.

No. 44. The Secretary, Auckland Harbour Board, to the Inspector of Telegraphs, Auckland. Sir,— Auckland, 11th May, 1904. I have the honour, in further reference to your letter of the 26th ultimo respecting site for wharf for the accommodation of H.M.C.S. "Iris," to inform you that at a meeting of the Board held yesterday it was resolved, " That application for site for wharf for H.M.C.S. ' Iris ' be granted upon position shown on plan enclosed herewith." I have, &c, The Inspector of Telegraphs, Auckland. J. M. Brigham, Secretary.

No. 45. The Inspector of Telegraphs, Auckland, to the Secretary, Auckland Harbour Board, Auckland. Sir,— Auckland, 28th May, 1904. I have to thank you for yours of the 11th instant, with plan, granting site for pier for H.M.C.S. " Iris." It is now found that the position indicated in red on the plan will not be suitable, as much inconvenience will be caused by having the pier so close to Messrs. Bond Bros.' wharf; and I shall be glad if the Board will grant a site opposite Spring Street, as shown in pencil on the accompanying plan. I shall be pleased to receive a reply as early as possible. Yours, &c, W. G. Meddings, The Secretary, Auckland Harbour Board. Inspector of Telegraphs.

RATES.

No. 46. The Right Hon. the Secretary of State foe the Colonies to His Excellency the Governor. My Lord,— Downing Street, 12th March, 1903. I have the honour to transmit to you, to be laid before your Ministers, copy of correspondence with the Pacific Cable Board respecting the rates to be charged for Government telegrams from this country vid the Pacific cable. 2. I trust that on consideration your Ministers will see their way to reducing the terminal rate for Government telegrams from England to at least one halfpenny per word, the rate which is now charged on telegrams from Australia. I have, &c, (For the Secretary of State) Governor the Right Hon. Lord Ranfurly, G.C.M.G. Onslow,

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Enclosure 1 in No. 46. The Chairman, Pacific Cable Board, to the Under-Secretary of State for the Colonies. g IK Pacific Cable Board, 30th September, 1902. With further reference to your letter of the 19th instant, I am instructed by the Pacific Cable Board to state, for the information of the Secretary of State for the Colonies, that they have ascertained that the Eastern Telegraph Company proposes on the completion of the route vid the Cape to Australia to reduce the rate on Government messages, not to Is. 6d. a word as the Colonial Office letter assumes, but to Is. 7Jd., viz.: — s. d. Australian terminal charge ... ... ■•• ■•• ... 0 4 Eastern Company's charge (half rates) ... ... ... ... 1 3| 1 7i On the same principle the Board, it is presumed, should reduce the rates to Is. viz.: — s. d. Tariff to Vancouver ... ... ... • ... ... ... 0 8 Australian terminal charge ... ... ... • • • ... 0 4 Half rate Pacific cable ... ... ... ... •■- ••• 0 9£ 1 9* They write this on the assumption that — 1. The Government of the Commonwealth have reduced the terminal rate on Government messages from sd. (the ordinary rate) to 4d. a word; and 2. The pool companies and Commercial Company will not consent to take Government traffic to Vancouver for less than Bd., against the reduced rate for ordinary messages of Is. a word. The companies have so far refused to carry Government traffic for less than two-thirds the ordinary rate, and Mr. Chamberlain is doubtless aware that the carriage of an ordinary telegram to Vancouver is Is. 6d. a word. I am, &c, The Under-Secretary of State, Colonial Office. S. Walpole.

Enclosure 2 in No. 46. The Assistant Under-Secretary of State for the Colonies to the Chairman, Pacific Cable Board. g IB Downing Street, 10th October, 1902. I am directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 30th September respecting the rates for Government telegrams to Australia. 2. Having regard to the fact that the rate over the Eastern and Eastern Extension Telegraph Company's lines will be 2d. per word less than the rate vid Vancouver and the Pacific cable, Mr. Chamberlain feels that it will be necessary seriously to consider whether messages from this Department to the Australian Governments can be sent by the latter route. 3. I am to inquire, with reference to the letter from this Department of the 4th and the Board's reply of the 6th August, whether the rates for the transmission of Government telegrams between Queensland, Norfolk Island, and Fiji have yet been reduced to half the ordinary rates. Mr. Chamberlain will also be glad to learn what will be the rates for telegrams vid Vancouver to Fiji and New Zealand. I am, &c, The Chairman, Pacific Cable Board. H. Bertram Cox.

Enclosure 3 in No. 46. The Chairman, Pacific Cable Board, to the Secretary of State for the Colonies. g IB ,— 24, Queen Anne's Gate, S.W., 27th October, 1902. I have laid before the Pacific Cable Board your letter of the 10th instant respecting the rates for Government telegrams for Australasia. In reply, I have the honour to state that upon representations made by this Board, the Atlantic telegraph companies have agreed to reduce the through rate on Government messages from Vancouver from Bd. to 6d. per word, and that in consequence the Board will be in a position to quote the same rates for these messages to Australasia as will be conceded by the Eastern and Eastern Extension Companies on such telegrams forwarded vid the Cape of Good Hope. 1 am further to state that the Board's rate for the cable for Government telegrams between Queensland or New Zealand to Norfolk Island has been fixed ever since the opening of the cable at Id., or one-half the rate for ordinary messages. The rates between Australia or New Zealand to Fiji are—so far as the cable is concerned—7d. for ordinary and sd. for Government messages. It is proposed to reduce the latter to 3|d. or onehalf the rate on ordinary messages, so soon as the new tariff rates vid Vancouver are announced. I need hardly add that it rests with the Governments of the Australian Commonwealth and New Zealand, and not with the Board, to make corresponding reductions in the terminal rates charged by them on Government messages. In conclusion I beg to add that the Board proposes that the rates for ordinary telegrams from this country to Fanning Island shall be 2s. 6d., and to New Zealand 3s. per word. I am, &c, The Secretary of State, Colonial Office, S. Walpole.

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Enclosure 4 in No. 46. The Chairman, Pacific Cable Board, to the Undersecretary of State for the Colonies. Sir,— _ Pacific Cable Board, 24, Queen Anne's Gate, S.W., 4th November, 1902. With reference to my letter of the 27th ultimo, in which I intimated to you on behalf of the Pacific Cable Board that the Board was prepared to reduce its rates on Government messages to Australasia to Is. per word so soon as the Eastern Telegraph Company reduce their rate on Government messages to the same, I have the honour to inform you that, in order to make this concession, I have succeeded in inducing the Atlantic cable companies and the Canadian Pacific Railway to carry these messages at half the ordinary rate. It seems, however, manifestly unfair that while these companies and the Board have made this great reduction the Government of the Australian Commonwealth and New Zealand have not made a corresponding reduction. On behalf of the Pacific Cable Board, therefore, I desire to urge the Secretary of State to move the Governments of the Commonwealth and of New Zealand to reduce the terminal rate on Government messages to one-half the rate on ordinary messages. I am, &c, S. Walpole. The Under-Secretary of State, Colonial Office, Downing Street, S.W.

No. 47. The Hon. the Postmaster-General, Wellington, to the Chairman, Pacific Cable Board, London. Sir,— General Post Office, Wellington, 7th July, 1903. I have the honour to inform you that copy of the correspondence between yourself and the Secretary of State last year with reference to the proposal that the Australian and New Zealand terminal rates on Government messages from the United Kingdom vid Pacific should be reduced to one-half the rates on ordinary messages, has been referred to the Government of this colony for consideration of the question dealt with therein. The matter, so far as New Zealand is concerned, has been gone into very carefully, and this Government feels that it should not be expected to agree to any reduction in the terminal rate of Id. per word so long as the Commonwealth terminal rate remains at 4d., and while the charge of Is. 7£d. by both routes to the Commonwealth is in force as against that to New Zealand of only Is. 6d. I would also point out that under the existing rates the Pacific cable receives on New Zealand Government messages Is. s|d. a word, as compared with Is. 3|d. for Government telegrams to and from the Commonwealth. I have, &c, J. G. Ward, Postmaster-General. The Chairman, Pacific Cable Board, London.

No. 48. The Agent-General to the Hon. the Prime Minister. (Telegram.) London, 10th July, 1903. Pacific Cable : Expect Chairman's proposal to pool terminal rates come up next meeting of Board. Has been delayed awaiting accounts. Reynolds will arrive Auckland 24th August on way to Australian Colonies. . . . Consider only chance come any understanding with Australian Colonies would be at special Conference of different Governments.

No. 49. International Telegraph Conference, London, 1903. Extract from Letter from the General Post Office, London, to the Secretary of State for the Colonies, dated 21st August, 1903 : Enclosure in letter from the Agent-General to the Hon the Prime Minister, dated 25th August, 1903. 2. A matter which will be of interest to the colonies is the reduction which has been effected in the rates charged by European countries on extra-European telegrams. These rates were high, not only as compared with those charged by the same countries on European telegrams, and also in comparison with the rates charged by the cable companies and by the extra-European Administrations (including the British colonies). The British delegation attempted to obtain a reductiou of the charges of the European States to the level of their charges on European telegrams; and, although unsuccessful in this, they were able to obtain a substantial reduction of the rates' of all the European States except Germany, France, and Spain (together, of course, with Russia and Turkey, which have never been subject to uniform rates). Although the benefits of this reduction will largely accrue to the cable companies, it cannot fail to be of indirect value to the colonies, as placing the companies in a better position for according reductions of rates to the public. * * * *

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No. 50. The Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. Sir, — General Post Office, Wellington, 2nd September, 1903. I have the honour to inform you that it is observed from the Age of the 6th ultimo that a Federal parliamentary paper has been circulated containing copies of correspondence in connection with the proposed reduction of the Australian terminal rate for cable telegrams vid Pacific. I should be obliged if you would favour me with a copy of the paper in question. I have, &c, W. Gray, Secretary. The Secretary to the Postmaster-General's Department, Melbourne.

No. 51. The gECRETARY, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Commonwealth of Australia, Postmaster-General's Department, Sib,— Melbourne, 18th September, 1903. In compliance with the request made in your communication of the 2nd instant, I have the honour to forward herewith a copy [not printed] of a Federal parliamentary paper containing copies of correspondence in connection with the proposed reduction of the Australian terminal rate for cable telegrams vid Pacific. I have, &c, The Secretary, General Post Office, Wellington. Robt. T. Scott, Secretary.

No. 52. The Hon. the Prime Minister to the Agent-General. Sir, — Prime Minister's Office, Wellington, 4th November, 1903. I have the honour to acknowledge the receipt of your letter of the 25th August last [not printed; see No. 49], and to thank you for the extracts from the report of the British delegates relative to the general results of the International Telegraph Conference held in London recently. The extracts have been read with much interest, particularly those in connection with the reduction in rates to some parts of Europe, the anticipated adherence of the Atlantic telegraph companies to the new regulation requiring the handed-in time of messages to be transmitted free of charge to the senders, and the provision for the use of practically all existing codes and the formation of fresh ones. The photographs which you were good enough to forward have been duly received. I have, &c, J. G. Ward, For the Prime Minister. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

No. 53. The Director, International Telegraph Bureau, Berne, to the Secretary, General Post Office, Wellington. (Telegram; translation.) Berne, 15th March, 1904. The German Transatlantic Company will accept from the Ist April next, by way of Emden-Azores-Vancouver, telegrams for Australia, New Zealand, the Norfolk Islands, and Fiji at 3 francs 75 centimes per word, starting at Emden.

No. 54. The Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Melbourne. Sir,— General Post Office, Wellington, 28th March, 1904. I have the honour to inform you that, following on the intimation from the International Bureau of Telegraph Administrations, Berne, that from the Ist April the German Transatlantic Cable Company would accept telegrams for Australia, New Zealand, Norfolk Island, and Fiji, vid Emden, Azores, and Vancouver, at fr. 3-75 (35.) per word, telegrams for Germany will be accepted in this colony for transmission vid Pacific, Azores, and Emden at the same rate, as from the Ist proximo. I have, &c, W. Gray, Secretary. W. Warren, Esq., Manager in Australasia, the Eastern Extension, Australasia, and China Telegraph Company (Limited), Melbourne.

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CANVASSING.

No. 55. The Agent-General to the Hon. the Prime Minister. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 20th May, 1903. I beg to transmit herewith extract from the British Australasian, containing a letter from the New Zealand Herald which appeared to me to fairly represent the public opinion prevalent in New Zealand with respect to the Pacific cable. * * * * * I have, &c, The Hon. the Prime Minister, Wellington. W. P. Reeves.

Enclosure in No. 55. [Extract from the British Australasian of the 14th May, 1903.] THE PACIFIC CABLE. (To the Editor of the British Australasian.) Sir, —For some years past you have been very liberal in granting your space to chronicling matters connected with the Pacific cable. As it is well that once in a way both sides of a question should be heard, I will ask you to be so good as to find room for the publication of the following article from the New Zealand Herald of the 13th March last. Without pinning myself to every expression contained in it, I think that, speaking generally, it fairly represents New Zealand public opinion on the Pacific cable, and explains the attitude of the New Zealand Government on the question. I am, &c, Westminster Chambers, 13, Victoria Street, W. P. Reeves. London, S.W., 11th May, 1903. [Prom the New Zealand Herald, 13th March.] When the Pacific cable was finally completed it was very naturally supposed that the battle of the cables had been fought and won. But it appears that, having obtained the plant and initiated communication between the United Kingdom and Australasia, vid Canada, the Pacific Cable Board may still be cramped and restrained by the difficulty of making the route pay. The source of the renewed trouble is, of course, the perfectly legitimate effort of the Eastern Extension Company to prevent business being diverted to the Pacific line. But the case is complicated by the persistent support given to the Eastern Extension Company by the Federal Government of Australia. In spite of the fact that the Australian States situated on the Pacific seaboard—Queensland, New South Wales, and Victoria—are co-operating partners in the Pacific cable, holding oneninth each, a share equal to that of New Zealand, with the single exception of Queensland they seem for some time to have repented of their contract, doubtless assisted to repentance by the delicate exorcisms of the Eastern Extension. Canada and the United Kingdom, each fiveeighteenths shareholders, have been firm in their adhesion to the bargain which all the parties freely entered into. We may claim the same for this colony. But New South Wales insisted upon making certain vital concessions to the company when the Pacific cable was still uncompleted, which enabled them to open private offices and conduct private land-lines, while Victoria only abstained from doing so because of her partners' protests. Since then there have been repeated indications of the influence acquired by the company over Australian statesmen, especially since the Federal Government took over the telegraphic interests of the various States. The culmination has been reached by the proposal to make a-ten years' agreement between the Federal Government and the Eastern Extension Company, this agreement according the right to open offices and conduct land-lines as well as to practically monopolize the Government cable business. Sir Edmund Barton alleges that the agreement is favourable both to the Pacific cable and to the company; but it requires the faith that moves mountains to accept this. We may regard as a figure of speech Mr. Seddon's assertion that this will probably be the last, as it is the first, partnership that New Zealand has been concerned in with Australia. But the agreement is, upon the face of it, a most regrettable breach of the spirit, if not of the letter, of a straightforward understanding. It may be admitted at once that this colony has no inducement to act as the Federal Government is disposed to act. The Pacific route places us very much nearer to the United Kingdom, either by steamer or by cable, than we are by the Federal route. The same may be said of Queensland, whose State Government is with us in the matter. But it would be altogether misleading to deduce from this the opinion that the whole question depends upon self-interest. When New South Wales first made the objectionable anti-Pacific arrangement with the Eastern Extension Company, in 1901, the Victorian Government hesitated to place itself in a similarly questionable position; and, finally, refused to do so. And the Melbourne Chamber of Commerce, while not entirely repudiating the present proposal, advises the Federal Government to qualify it by a purchase clause. The Eastern Extension, like the Federal mail-service, can obviously give better facilities as one moves westward, while the Pacific can give better facilities as one moves eastward. In Victoria and New South Wales the working advantages of the rival routes are fairly balanced, so that there is a great opportunity for influencing politicians who

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have a pachydermatous sense of honour and for forming interests among those who look with the customary casualness of the general public upon national affairs. It was claimed in 1901 that the acceptance by New South Wales of the agreement above referred to greatly advantaged her cableusers in the matter of rates. Exactly the same argument is used now by the Federal Government. There seems to be a conspiracy of silence upon the fact that, when the Pacific scheme was first propounded, rates to the United Kingdom from Australia were 9s. 4d. per word, and that, although it was protested by the late Sir John Pender that reduction of this extortionate charge was impossible, the approaching advent of the Pacific cable was alone sufficient to gradually bring rates to 3s. per word. We owe the present comparatively low rates entirely to the Pacific scheme, as we do our hopes of further sweeping reductions. It is as foolish as it is dishonourable of the Commonwealth to support the Eastern Extension Company in its attempt to render impotent the Pacific cable movement, even though thereby Australian cable-users may immediately gain a few paltry pence per word. We do not in any way blame the Eastern Extension management for defending its interests in every legitimate way. Its shareholders would have very proper grounds for complaint if a strong fight were not being made on the lines to which the company long ago committed itself. The Eastern Extension managers, with all their magnificent planning and tireless energy —for which the colonies owed them much and paid them accordingly—failed to grasp the idea that all modern methods of communication must be made available to the millions, and that profits must be made in them by the vastness of the business rather than by the vastness of individual charges. Again and again attempts were made to persuade the company to be reasonable, but invariably these attempts were foiled by the stubborn character of directors who spoke as equals to empires and superiors to colonies. No local compromising with the company was honourably possible when once the Pacific Cable Board was formed, and the subscribing partners not merely contributed the capital for an independent cable, but thereby tacitly pledged themselves to support it. Any honourable compromise, any worthy compact, must come through the negotiations of the Pacific Cable Board, on which the dominant States of Australia, with New Zealand, Canada, and Britain, are jointly represented. To go behind the Board and, for temporary local advantage, to make with the company local agreements, the effect of which is to divert from the Pacific cable business to which it is fairly entitled is, to say the least, hard on the other partners. Those partners did not think it necessary to bind each other hand and foot by conditions covering every imaginary vagary. They imagined that each party intended to act honourably, and that States would not have a lower sense of commercial honour than individuals.

No. 56. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram.) Wellington, 4th June, 1903. Are canvassers at work on the other side ?

No. 57. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 7th June, 1903. Following from Judd : " Just learn canvasser appointed Victoria, but selections for New South Wales and Queensland not yet made." __________________________

No. 58. The General Manager, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. The Pacific Cable Board, Sanctuary House, Tothill Street, Westminster, Sir,— London, S.W., 19th June, 1903. On the subject of booklets, and advertising the Pacific route in the United Kingdom, I write to advise you that I am sending by parcel-post three copies of an office card issued by the Board at considerable expense, which has been very largely circulated in the United Kingdom. I also enclose copies of the tariff pamphlets of the Commercial and Western Union Companies, which you will see give a very prominent place to the Pacific cable route. The other Atlantic companies issue similar pamphlets. The canvassers of all the Atlantic lines are active in securing traffic for our route. As the Board does not deal direct with the public, the issue of a special tariff pamphlet, or direct canvassing, by the Board would not be suitable to the conditions of business in this country and the active competition which exists between the various Atlantic companies. You may rest assured that no effort will be spared to secure business for the Pacific route, but as the Eastern Company have been so long in undisputed possession of the field, and it is very difficult to get firms to change their route, the building-up of a good connection in this country necessarily will take time.

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The leading Atlantic companies display in their offices daily the times of transmission from the various important business centres in New Zealand and Australia, and these times are usually only a little over an hour. I>m glad to add that the speed and accuracy of the Pacfic route is being gradually recognised and appreciated. I am, &c, C. H. Reynolds, The Hon. the Postmaster-General, Wellington, General Manager.

No. 59. The Hon. the Prime Minister to the Agent-General. g IB> Prime Minister's Office, Wellington, 6th July, 1903. I have the honour to acknowledge the receipt of your letter of the 20th May last, trans mitting extract from the British Australasian of the 14th idem., containing .... an article from the New Zealand Herald with respect to the Pacific cable. The publication of the article was very appropriate. I have, &c, R. J. Seddon, Prime Minister. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

No. 60. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay.. (Telegram.) Wellington, 28th July, 1903. I have just read with astonishment the following in the Sydney Morning Herald of the 14th instant : " Pacific Cable Interruption. —Information has been received by the Postmaster-General that a partial interruption has been caused to the Pacific cable line by heavy snow in New Zealand. A detour, however, has been made, and the Nelson cable has been utilised for sending messages." I think it is for you to take up the matter and ascertain who so advised the Postmaster-General, and make what correction you think meets the case. lam inquiring of our officer at Wakapuaka if any intimation came to his office to warrant such a statement.

No. 61. The guPERiNTENDENT, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 28th July, 1903. These misstatements are annoying. I have sent particulars to Mr. Judd, adding, "It is true that the recent snowstorm interrupted the New Zealand land-lines south of Christchurch, but the Extension's position was not one whit better than that of the Pacific The interruption affected both routes to the same extent. I think it is not too late to widely correct this misstatement. Where did the P.M.G. obtain his inaccurate information ?"

No. 62. The Hon. the Prime Minister to the Agent-General. g IB _ Prime Minister's Office, Wellington, 28th July, 1903. I have the honour to acknowledge the receipt of your letter of the 3rd ultimo, transmitting copy of a memorandum from the General Manager of the Pacific Cable Board on the question of canvassing for business in London. I agree that the objections of the General Manager should not be taken as final; and this opinion is strengthened by the fact that the canvassers in this colony were on several occasions met with the statement that the colonial branches of certain firms were quite willing to send their cable business by the Pacific route, but were hampered by the fact that instructions had been issued by their London head offices to make use of the Eastern Company's cables. Mr. Reynolds is due in the colony in a short time, and the whole matter will then be very forcibly brought under his notice. I hare. &c, The Hon. W. P. Reeves, Agent-General for New Zealand, London. R. J. Seddon.

No. 63. The Hon. the Postmaster-General, Wellington, to the Chairman, Pacific Cable Board, London. g IE _ General Post Office, Wellington, 29th July, 1903. In continuetion of my letter of the 26th May last [not printed] I have now the honour to forward statement of payments .... made by this Department on the Board's behalf in connection with the late canvass, &c, for cable business. I shall be obliged if you will arrange for a refund being made in the colony. * . i< * * * It was necessary to issue a new table of rates, and " Vid Pacific " rubber-stamps, for general distribution. Special telegraph-forms marked " Vid Pacific," bound in pads of 100 each, had also to toe supplied the public free of charge, following what had been done by the Eastern Extension ompany. . . .

3—F. 8.

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Other items of expenditure were unavoidable. The forms, circulars, &c, had to be distributed without delay, otherwise the canvassing would have been much hampered. The Board, I think, have every reason to be satisfied with what has been achieved by my officers. I desire, however, to have the Board's views with respect to further canvassing. * * * * I have, &c, J. G. Ward, The Chairman, Pacific Cable Board, London. Postmaster-General.

No. 64. The guPERiNTENDENT, Pacific Cable Station, Doubtless Bay, to the Secretary, ".General Post Office, Wellington. The Pacific Cable Board, Doubtless Bay Station, Sir,— 12th August, 1903. The following is extracted from a letter just received ftom the General Manager, dated 2nd July : " The Board is very well pleased with the result of the canvassing. " I shall be in New Zealand in two or three months' time, and shall then go into the question of booklets and maps for New Zealand with Mr. Gray. Meanwhile, we have largely distributed a wall-card map in the United Kingdom, and, with what has been done in Australia and New Zealand in the way of booklets and maps, a good deal of the question has been, for the present, sufficiently covered. " Will you kindly inform Mr. Gray of the above." I am, &c, C. L. Hertslet, Superintendent. The Secretary, General Post Office, Wellington.

No. 65. The Agent-General to the Hon. the Prime Minister. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 6th November, 1903. I have the honour to acknowledge your letter of the 30th September last [not printed] dealing with the proposal to hold a Conference of the representatives of the Governments which are partners in the Pacific cable, and with my telegrams of last September sent to you on the matter. [F.-Bc, 1903.] * * * * * I have read with much interest the papers F.-8 on telegraph cables, presented to the House of Representatives and printed, a copy of which you have sent me. * * * * * I have continued to urge the Chairman and Secretary to have some canvassing done in London in order to increase the amount of business at this end. With this aim in view I have supplied the Secretary with a complete list of firms and companies in London doing business with New Zealand. A little canvassing has since been done, and some promises of support have been got, the most important of which are from the Times and Daily Mail newspapers, which are the chief dailies getting telegrams from Australasia. ***** I am not sure whether we ought not to have a special representative in Australia and New Zealand I have, &c, The Hon. the Prime Minister, Wellington. W. P. Reeves.

PRESS TELEGRAMS.

No. 66. The Hon. the Secretary of State, Ottawa, to the Hon. the Colonial Secretary, Wellington. Sir,— Ottawa, 15th April, 1903. I beg to enclose herewith copy of a minute of Council adopted by the Government of Canada, having for its object the importance of bringing the existence of the Pacific cable more prominently to the notice of the people of Australia, New Zealand, and Canada. [See No. 307, F.-8, 1903.] It is believed that this can be more effectually accomplished by opening the cable to the free transmission of Press messages for a period of three months. I hope the Government of New Zealand will concur in this view, and so,advise their representative on the Cable Board. I have, &c, R. W. Scott, Secretary of State. The Hon. the Colonial Secretary, New Zealand.

Enclosure in No. 66. Extract from a Report of a Committee of the Honourable the Privy Council, approved by His Excellency on the 11th March, 1903. On a report dated the 7th March, 1903, from the Secretary of State,, stating that his attention has been drawn by the Board of Trade of Ottawa, and by individuals interested in the Australian trade, to the very limited use at present made of the Pacific cable. It is affirmed by those who know the facts that, owing to the high rates charged, not a single Press message has been transmitted by the cable, and as a consequence the knowledge of the market prices of staple

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articles that might be interchanged between Canada, and Australia, and New Zealand has only been obtained through the slow medium of the monthly mail; and in many cases it has been found that before orders can be filled the conditions of the market have undergone a change, and the proposed sales or purchases have had to be dropped. The Minister further states that it appears from the returns of Mr. Larke, the Commercial Agent for Canada in New South Wales, that there is an opening for a considerable trade that would prove profitable both to the Dominion and to the Commonwealth if the conditions could be promptly made known in both countries. It is affirmed by those who know the facts that an ample volume of Press news could be daily transmitted by the Pacific cable without in any way adding to the operating expenses of the undertaking. The Minister therefore recommends by way of experiment, and in view of other arrangements being eventually entered into, that Australia and New Zealand be invited to join with Canada in asking the Pacific Cable Board in London to allow the free transmission of Press news in both directions daily for a period of three months, under such regulations as may be deemed advisable, the number of words in each despatch to be limited to 500. The Committee submit the same for approval. John J. McGee, The Hon. the Secretary of State. Clerk of the Privy Council.

No. 67. The Manages, United Press Association, Wellington, to the Hon. the Postmaster-General, Wellington. Sir, — United Press Association (Limited), Wellington, 29th June, 1903. I regret I have been unable to see you, and in default of a personal interview take this opportunity of mentioning the matter I desire to bring under your notice. You may remember that I mentioned I had been endeavouring to induce the Australian Association to use the Pacific cable. Mr. Mackinnon, of the Melbourne Argus, agreed to do so, and actually sent instructions to London on the subject. Meanwhile, he communicated with the cable people, and asked them to arrange to distribute the messages from Southport. Thinking we might like to intercept them at Norfolk Island he included that too. We do not propose to do so at present, though the day may easily come when we should find it necessary to arrange for it. Now, he writes that they have flatly refused to do anything of the kind. Seeing that the rival company have been doing it for years he is not unnaturally taken aback. As he puts it, " thisdoes not indicate any very great desire to participate in our business," and I quite agree with him. Hitherto, there has been an arrangement by which the messages, on arrival at Adelaide, have been distributed from the telegraph office there to the papers in the combination, thus saving valuable time, and, I presume, expense too. At one time messages used to come straight to New Zealand for us, as well as those for the Australian papers, and no such objection as that raised by the Pacific cable ever seems to have been thought of. It is, of course, quite likely that the Pacific people are strictly within their rights; but do you think the attitude they have assumed is a wise one? I have ventured to think you will not, and that possibly you might see your way to interfere. Yours, &c, The Hon. Sir J. G. Ward, Postmaster-General. W. H. Atack, Manager.

No. 68. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram.) Wellington, Ist July, 1903. Following is extract from letter from the Manager, Press Association, to the PostmasterGeneral : [No. 67.] Kindly communicate purport of this to your General Manager, and ascertain the significance of the alleged refusal; and whether, if such refusal made, decision might not be reconsidered in the interests of traffic, and in securing a class of business which does not at present come over the Pacific cable.

No. 69. The Hon. the Postmaster-General, Wellington, to the Hon. the Secretary of State, Ottawa. Sir,— General Post Office, Wellington, 10th July, 1903. I have the honour to acknowledge the receipt of your letter of the 15th April last, covering copy of a minute of the Honourable the Privy Council adopted by your Government, suggesting that as a means of bringing the existence of the Pacific cable more prominently, to the notice of the people of Canada, Australia, and New Zealand, the free transmission of Press news for a period of three months might be allowed. In reply, I have to inform you that the Government of this colony concurs in the view expressed in your letter, and would be willing that the proposal should be given a trial, but it has been ascertained that the Australian Commonwealth is unable to agree, as the law in force there will not admit of the suggestion being carried out. I have, &c, J. G. Ward, Postmaster-General. The Hon. the Secretary of State, Ottawa.

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No. 70. The Secretary, General Post Office, Wellington, to the Manager, United Press Association (Limited), Wellington. (Memorandum.) General Post Office, Wellington, 10th July 1903 I am directed by the Hon. the Postmaster-General to inform you that a copy of your letter of the 29th ultimo, with reference to the proposed distribution of Press messages at Southport and Norfolk Island, has been cabled to the General Manager of the Pacific Cable Board, _at Bamfield, where he will arrive about the 28th instant. He has been asked whether the decision might not be reconsidered in the interests of traffic, and in securing a class of business which does not at present come over the Pacific cable. On receipt of a reply you will be further communicated v .. , W. Gray, Secretary, with. The Manager, United Press Association (Limited), Wellington.

No. 71. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram ) Doubtless Bay, 27th July, 1903. Following from Mr. Reynolds : " Thank Mr. Gray for telegram of first July about Press arrangements Telegrams at Press rates are governed by special rules. Within those rules we are willing to help in every way. Will be in Australia by twenty-eighth and can explain further.

No. 72. Sir Sandford Fleming, Ottawa, to the Hon. the Prime Minister, Wellington. (Telegram ) Ottawa, Ist November, 1903. Anniversary completion Pacific cable. No Press messages yet transmitted. Would you favour immediate limited news service between New Zealand and Canada !

No. 73. The Hon the Prime Minister, Wellington, to Sir Sandford Fleming, Ottawa. (Telegram ) Wellington, 2nd November, 1903. Hearty congratulations anniversary Pacific cable. The shortening of time in transmission and reduction in fates has proved great boon. An immediate limited news service between New Zealand and Canada would bring the Dominion and our colony, which have so much in common, closer together to the advantage of both.

MIBCELLANEODS.

No. 74. The Hon. Audley Coote, Sydney, to the Hon. the Postmaster-General, Wellington. — , .. Sydney, sth November, 1903. I am authorised from Toronto make your Government offer couple up Australia and New Zealand wrrelesTSegraph system. Firm offer, and conditions follow this early next month. Can complete communication twelve months your satisfaction. __■___■ —■— ——-

No. 75. The Hon. the Prime Minister to the Agent-General. q T _ _ Prime Minister's Office, Wellington, 20th November, 1903. I have the honour to forward herewith two copies of " The Wireless Telegraphy Act, 1903 " to provide for the establishment and control of stations for the purposes of wireless , i ' v I have, &c, telegraphy. >j £ Wabd> For the Prime Minister. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

No. 76. The Hon. the Postmaster-General, Wellington, to the Hon. Audley Coote, Sydney. General Post Office, Wellington, 2nd December, 1903. I have the honour to acknowledge with thanks the receipt of your telegram of the sth ultimo stating that you were authorised to make the Government of this colony an offer to eShsh wirefess telegraphy between New Zealand and Australia on conditions to be advised of lat6r in reply I have to inform you that your offer has been considered by Government, which, however, regrets that it is unable to deal with the matter at 'w. Gray, The Hon. Audley Coote, Athenseum Club, Sydney. For the Postmaster-General.

By Authority: John Mackax, Government Printer, Wellington.—l9o4.