POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1939-40.

Appendix to the Journals of the House of Representatives, 1940 Session I, F-01

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ANNUAL REPORT OF THE POST AMD TELEGRAPH DEPARTMENT FOR THE YEAR 1939-40.

CONTENTS.

Air Mails— page Empire service .. .. 4,12 Inland . . . . . . II Trans-Pacific .. .. .. 12 Trans-Tasman service .. .. 4,12 Appeal Board .. .. .. 8 British Postal Orders .. .. 14 Broadcasting Service — Amateur Radio-transmitting Stations .. 20 Quarterly Licenses : Abolition .. .. 20 Radio Broadcasts : Publication . . 20 Radio-dealers' Licenses .. 20 Radio Interference .. .. 20 Radio-receiving Licenses .. 20,25 Buildings .. .. .. .. 9 Cable Messages : Number and Value .. 26 Censorship .. .. .. 10 Centennial Exhibition- - Departmental Office and Exhibits .. 10 Telephone Arrangements .. .. 19 Centennial Postage-stamp Issue .. .. 12 Commercial Branch .. . . 8 Committee of Inquiry . . . . 6 Concessions to Men on War Service 3, 6,11,16 Cook Strait Cables .. .. 17 Correspondence School .. . . .. 8 Dead-letter Office .. .. 13 Death of Prime Minister, Right Hon. M. J. Savage .. .. . • .. 10 Examination, Telegraph Entrance : Modification .. .. • • .. 7 Financial Operations .. .. 3,5,21 Health Stamps .. .. .. .. 12 Increase in Rates and Charges — Postal .. . • • • 11 Telegraph . . . . .. .. 16 Toll .. 17 Mail-serviees — Inland . • ■ ■ • • .. 11 Overseas .. .. ■ ■ 4,11,12 Military Allotment Warrants : Payment by Department . . . . . . 15 Money-orders — Business during Year .. .. .. 14 Business since 1863 .. .. 21,22 Motor-spirits, &c. : Rationing .. .. 15 Motor-vehicles — Departmental . . .. . . 9 Purchases .. .. ■ • .. 9 Registration, &c. . . . . . . 15 Officers — Health .. • ■ • • .. 6 Number employed .. .. .. 5 On War Service .. .. .. 6 Retirement, &c. .. .. • • 7 Sick Benefit Fund .. .. ■ ■ 8

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PAGE Parcel-post: Cardboard Containers for " Fragile" Parcels .. .. 13 Parcel-post, Overseas : Volume .. 22 Poles : Use of New Zealand Timber .. 19 Postage-rates : Increase .. .. 11 Postage-stamps, &c. . . .. 12 Postal Articles posted and delivered .. 26 Postal Notes .. .. .. 14 Post Office Investment Certificates .. 14 Post Office Patriotic Fund . . . . 10 Post Office Savings-bank— Business during Year . . .. 3,14, 23 Business since 1867 . . . . 24 Letters of Credit .. . . 14 School Savings Branch... .. 14 Postmaster - General: Relinquishment of Office by Hon. F. Jones and Appointment of Hon. P. C. Webb .. .. ..4 Promotion Board Election .. .. 8 Radio Division : Establishment in General Post Office .. .. .. 7 Radio - telegraph and Radio - telephone Services — Gisborne, Napier, and Tauranga Aeradio Stations : Closing .. 18 Inspection of Radio Equipment on Ships 18 Musick Memorial Aeradio Station : Opening 18 Overseas Radio-telephone Service .. 18 Radio Stations: Equipment .. .. 18 Radio-telegrams : Number and Value . . 26 Radio-telephone calls : Number and Value 26 Receipts and Payments .. .. 3, 5, 21 Retirement of Officers .. .. .. 7 Sick Benefit Fund .. .. .. 8 Social Security Work .. .. 14 Staff — Committee of Inquiry .. .. .. 6 Effect of War.. .. .. ..6 Health 6 Number .. .. . ■ .. 5 Personal . . .. .. 5 Reporting System .. .. 6 Retirements, &c. . . . . . . 7 Sick Benefit Fund .. .. 8 Training .. .. .. .. 7 Stamp-printing : Assumption of Control by Department .. .. .. 13 Stores : Purchase .. .. . • 9 Suggestions —■ Board .. . • ■ • .. 8 Invitation to Officers to submit .. 8 Telegraph Engineers' Offices at New Plymouth and Timaru: Closing .. .. 8

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CONTENTS —continued.

PAGE Telegraph Service — Concessions to Naval Personnel in River Plate Action .. ■ ■ .. 16 Decorative Telegram Stationery.. .. 16 Increase in Rates .. .. .. 16 Installation of Machine-printing Apparatus 16 Multi-channel Carrier-frequency Systems .. 17 Multi-channel Voice-frequency Systems .. 16 Overseas Letter-telegram Service .. 16 Reduction in Empire Press Rates .. 16 Telegrams to Soldiers on Active Service 16 Traffic .. .. • • 15,25 Telegraph Training-school Scheme : Extension 7 Telephone-exchange Services— Centennial Exhibition : Telephone Arrangements .. .• • • 19 Christchurch Rating System . . .. 18 Lower Hutt Auxiliary Manual Exchange 19 New Automatic-telephone-exchange Equipment .. .• •• 19 Number of Telephone Exchanges .. 19 Public Call Offices .. .. 19,25 Telephone Connections : Classification 18, 25 Telephone Development .. 18, 25 Telephone Directories : Economy Measures 19

PAGE Telephone Toll Service — Carrier-current Systems .. .. 17 Extension of Toll Systems .. 17 Increase in Rates .. . • .. 17 Traffic .. .. •• 17,25 Timber, New Zealand : Use as Poles .. 19 Training of Staff . . .. .. 7 Trans-Tasman Air Mail-service — Aeradio Facilities .. .. .. 18 Inauguration . . .. .. 4,12 War — Amateur Radio-transmitting Licenses : Revocation.. . . .. .. 2G' Censorship .. .. . ■ .. 10 Concessions for Men on War Service 3, 6, IT, 16 Effect on Air Mails .. .. IT, 12 Effect on Ocean Mail-services .. .. 11 Effect on Staff .. .. . ■ 6 Enlistment of Officers . . .. .. 6' Increase in Rates and Charges 11,16,1 ! 7 Military Allotment Warrants .. .. 15 Post Office Patriotic Fund .. 10 Rationing of Motor-spirits, &c. .. .. 15 Work for Other Departments .. .. 14 Workshops .. .. . ■ .. 9

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1940. NEW ZEALAND.

POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1939-40.

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

To His Excellency the Right Honourable Viscount Galway, P. 0., G.G.M.G., D.5.0., 0.8. E. May it please Yolk Excellency,—• I have the honour to submit to Your Excellency, with the following comment, the report of the Post and Telegraph Department for the year ended on the 31st March, 1940 : — RECEIPTS AND PAYMENTS. The revenue collected during the year exceeded that for the previous year by £106,128. The amount received was £4,793,692, compared with £4,687,564 for 1938-39. Increases in revenue were again recorded in respect of all phases of the Department's activities. Payments for the year in respect of working-expenses (including interest on capital liability amounting to £639,000) totalled £4,445,907. The excess of receipts over payments was £347,785. POST OFFICE SAVINGS-BANK. Post Office Savings-bank deposits were £25,151,287, compared with £30,434,292 during the previous year. Interest credited to depositors amounted to £1,603,467. The withdrawals totalled £29,462,838, compared with £34,597,708 in the preceding year. The amount at credit of depositors at the 31st March was £58,002,002. Tlie number of accounts open at the 31st March was 960,565, which is 13,743 in excess of the total recorded at the end of 1938-39. STAFF. As was to be expected, the Department has had to adapt its staffing arrangements to meet the abnormal conditions created by the war. Up to the end of the year over eight hundred officers either had joined the Forces or were awaiting orders to go into camp, and it is expected that enlistments will continue at a steady rate. A comprehensive review of the staff throughout the Dominion has been carried out, and every effort is being made to continue with the least possible inconvenience to the pul)lie the many services which the Department provides. Young officers are being trained specially so that they will be available in the shortest possible time to strengthen staffs where the need is most urgent. It will not be practicable, of course, to maintain staffs at their pre-war strength, but I feel confident that the existing staffs will accept cheerfully the increased work and the additional responsibilities that will devolve on them and that they will uphold worthily the .reputation of the Service for putting forth the maximum effort in times of emergency. CONCESSIONS FOR MEN ON WAR SERVICE. My Department has arranged for reduced rates of postage on correspondence for the men of the New Zealand and other Empire Forces serving overseas. Letters for members of these overseas Forces may be sent at the inland rate of 2d. for the first ounce and Id. for each succeeding half-ounce. The rates on parcels, which in the first place were reduced to Is. 6d. for a 3 lb. parcel and to 3s. for a 7 lb. parcel, have

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been further reduced since the end of the year to Is. and 2s. respectively. In addition, arrangements have been made for parcels, except those containing tobacco and liquors, to be delivered free of Customs duty to members of the Expeditionary Force in Egypt. In regard to telegrams : a special rate of sd. a word, with a minimum charge of 2s. 6d., is available for messages to members of His Majesty's Forces serving abroad, the address being transmitted free. Unfortunately, Canada and Egypt have not yet been included in the arrangement, but negotiations are proceeding and finality is expected at an early date. Arrangements have, however, been made for the addresses of messages to our Forces in Egypt to be charged for as four words irrespective of length. A similar concession applies in respect of inland telegrams for soldiers in camps in New Zealand, the charge for the address in this case being as for five words. EMPIRE AIR MAIL-SERVICE. The outbreak of war in September caused the suspension of the Empire air-mail (" all-up ") scheme, in which New Zealand had participated advantageously for a period of thirteen months. Air mails in transit on the England-Australia service when war was declared were immediately diverted to surface transport. The operation of the service was, however, quickly resumed, but with reduced frequency and with a reversion to the former surcharge postage rate on letters from New Zealand of Is. 6d. a | ox. in place of the " all-up " rate of l|d. a % oz. TRANS-TASMAN SERVICE. It is|gratifying to record the direct connection of New Zealand by air with the England-Australia air mail-service. On the 30th April, 1940, the flying-boat " Aotearoa," under the command of Captain J. W. Burgess, crossed from Auckland to Sydney on the inaugural flight of a regular trans-Tasman service. The service is being operated once weekly in each direction, and, with good connections at Sydney with the service to and from London, it is expected that the transit time for mails exchanged between New Zealand and England will be reduced to approximately a fortnight. To facilitate the transmission and delivery of correspondence conveyed by the trans-Tasman service, inland air services both in Australia and in New Zealand are being utilized whenever expedited delivery will result. No additional charge for inland transmission by air is made in either country. The trans-Tasman service is being operated by Tasman Empire Airways, Ltd., under agreement with the United Kingdom, Australian, and New Zealand Governments. The performance of the service is being supervised by the Tasman Air Commission, comprising the following representatives of the three Governments United Kingdom: Sir Harry Batterbee, High Commissioner for the United Kingdom in New Zealand. Australia : Captain E. C. Johnston, D.F.C., Assistant Director-General of Civil Aviation in Australia. New Zealand : Mr. J. G. Young, Director-General, Post and Telegraph Department. OFFICE OF POSTMASTER-GENERAL. My colleague, the Hon. F. Jones, who assumed charge of the Department on the 6th. December, 1935, relinquished control on the 30th April last, on which date the administration of the Department came under my control. The report herein is a record of the activities of the Department during Mr. Jones's term of office. DETAILED REPORT. A detailed report of the Department's activities during the year ended on the 31st March, 1940, follows. I have the honour to be, Your Excellency's most obedient servant, P. C. Webb. General Post Office, Wellington, C. 1, 15th June, 1940.

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STATEMENT OF FINANCIAL OPERATIONS AND BUSINESS OF THE DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1940. RECEIPTS AND PAYMENTS.

The receipts and payments of the Department for the financial year 1939-40 are shown in the following account

Receipts. Payments. £ s. d. £ s. d. £ s. d. £ s. d. Balance forward .. .. 40,610 9 2J Salaries .. .. 2,355,898 9 6 Postages .. .. 1,317,627 12 9 Conveyance of ocean and Money-order and postal- airmails .. .. 99,431 2 8 note commission .. 88,745 0 11 Conveyance of inland mails 153,249 9 3 Private box and bag ronts Conveyance of mails by rail 102,936 14 5 and rural-delivery fees.. 55,734 5 5 Maintenance of telegraph Miscellaneous receipts .. 558,864 19 5 and telephone lines .. 253,084 711 Paid telegrams .. 353,385 9 3 Renewals and replacements 139,000 0 0 Paid tolls .. .. 786,143 1 5| Motor services and workTelephone - exchange shops .. .. 100,753 2 4 receipts .. .. 1,633,191 8 2 Maintenance of Post and 4,793,691 17 4} Telegraph buildings .. 36,956 12 9 Miscellaneous .. .. 558,435 3 10 Interest on capital liability 639,000 0 0 Sick Benefit Fund .. 7,162 0 0 4,445,907 2 8 Paid to Consolidated Fund . . ■ • 2,928 11 11 Renewal and replacement of Assets Fund (investment) .. .. .. 347,000 0 0 Balance carried down .. . ■ • ■ 38,466 12 0 £4,834,302 6 7 £4,834,302 6 7 £ s. d. Balance brought down .. .. .. 38,466 12 0

The total cash value of the transactions of the Department, inclusive of the above,, amounted to approximately £285,000,000. STAFF. Personal. Mr. J. G. Young, Deputy Director-General, was appointed Director-General on the Ist July in succession to Mr. G. McNamara, C.8.E., who retired on superannuation 011 the 30th June after completing forty-three years' service. Mr. Young was succeeded by Mr. W. It. Newall, Second Deputy Director-General. Mr. Newall was not replaced as Second Deputy Director-General, Messrs. S. A. Ogilvie, Divisional Principal, L. L. Hills, Chief Inspector and Principal, Staff Division, General Post Office, and J. Madden, Chief Postmaster, Wellington, were appointed Divisional Directors, General Post Office, 011 the Ist April. Mr. Madden was replaced, as Chief Postmaster, Wellington, by Mr. F. G. Nind, Senior Inspector, General Post Office. Mr. W. G. Cooper, Chief Postmaster, Auckland, retired 011 superannuation on the 24th July on completion of forty years' service. Mr. Cooper was replaced by Mr. R. G. May, Chief Postmaster, Hamilton. Messrs. B. H. Lawn and 11. R. Hounsell, Superintending Engineers, General Post Office, retired 011 superannuation on the 9th November and 9th August respectively, after completing over forty years' service. These officers were replaced by Messrs. A. H. Coles, District Engineer, Wellington, and E. H. R. Green, Radio Engineer, General Post Office. Under a reorganization on the engineering side of the administration, Mr. Green was later given charge of the District Engineer s Office, Wellington, replacing Mr. M. A. Pike, who succeeded Mr. Green as Superintending Engineer in the General Post Office. The death on the 15th January of Mr. P. H. Mason, Deputy Chief Engineer, General Post Office, is recorded with regret. Mr. Mason was a most efficient engineering officer, and his death was a distinct loss to the Department. Comparative Return op Persons employed in Department. Permanent staff— ' Ist April, 1939. Ist Apr.l, 1940. Administration . . .. ■ ■ ■ • ■ ■ 16 12 First Division .. .. •• •• 4,325 4,585 Second Division .. .. ■ • ■ • .. 6,223 6,528 Message-boys .. .. • • • • ■ • 827 721 11,391 11,846 Temporary staff .. • • • ■ 154 165 Casual staff . • ■ • ■ ■ • • • ■ 666 773 12,211 12,784 Non-permanent staff — Country Postmasters and Telephonists .. .. 1,603 1,576 Postmasters who are Railway officers .. .. 88 90 13,902 14,450

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Health of Permanent Staff. The following table shows, in comparison with the figures for the previous year, the average number of days on which officers were absent on sick-leave:— Number Average Absence 6 Year ended 31st March, 1940— on Staff. per Sick Officer. employed . ' Men 10,834 10-73 5-72 Women 1,012 13-38 8-13 Year ended 31st March, 1939 — Men .. .. .. .. 10,427 11-02 6-16 Women .. .. • • • • 964 14-59 9-70 Twenty-eight officers died during the year. Outbreak of War : Effect on Staff. Following Government's announcement on the outbreak of war that New Zealand would stand side by side with the Mother-land, officers of the Department responded quickly to the call for service. With the release of the maximum number of officers desirous of joining the armed Forces, the staff situation throughout the Dominion soon became a problem. In meeting the position, full use was made of supernumerary officers and annual leave was suspended temporarily, but these measures alone would have been inadequate had it not been for the praiseworthy manner in which the depleted staffs of their own volition put forth that extra effort which enabled them to overtake successfully the additional duties devolving on them as a result of the emergency conditions. In the national interests, the Department is doing its utmost to conserve man-power. Special inspections have been carried out at all offices, and measures have been considered for effecting staff economies as may be necessary. When officers are released for war purposes, internal arrangements are designed, where practicable, to obviate the need for their being replaced. This action, of course, throws additional responsibilities on the remaining staff, but, as already indicated, officers generally are accepting the extra load as a contribution to the war effort. The fine spirit existing throughout the Service to-day augurs well for the future should it unhappily be necessary to call upon officers for greater sacrifices as the war proceeds. The good results already achieved in conserving man-power can be appreciated from the fact that the effective working strength, of the permanent staff on the 31st March was lower by over two hundred officers than it 'was at the outbreak of war. Should the war continue for any length of time there will be an inevitable shortage of male officers, and plans are in hand to meet such a contingency. There are a number of departmental spheres in which female labour could be utilized. Already the initial steps have been taken in regard to the employment of women on a temporary basis. Officers on War Service. At the end of March, 557 officers had been released for war service and a further 251 were awaiting orders to join the Forces. With few exceptions, no restrictions have been placed on the release of officers wlio have volunteered for service overseas ; and every effort is being made so to arrange staffing that the maximum number will continue to be released throughout the period of the war. Shortly after the outbreak of war, steps were taken to safeguard the interests of officers of the Department who answered the call for service with the Defence Forces. Such officers, in addition to having their superannuation and social-security contributions paid by Government, will make normal salary progress and will be considered for promotion with others on the occurrence of vacancies for which they would in the ordinary course be applicants. The fact that they may not have passed the necessary qualifying examination will not debar them from receiving promotion. In the case of the unqualified officer, it is proposed that on his return he be given two years in which to qualify. Moreover, it is intended to make special arrangements for the examination of returned soldiers. Two weeks' annual leave for every year of service with the Defence Forces will be granted to officers on their return to duty in the Department. Payment during such leave will be at the civilian rate of pay of the soldier on his return to duty. The foregoing conditions apply to all employees of the Department who are members of the military Forces, whether on active service overseas or on home service, and, as from the outbreak of the war, to those who are serving abroad as members or trainees of the Royal Air Force or who are on service as members of the Royal Naval Volunteer Reserve. As far as is practicable, these conditions will, where applicable, be extended to temporary employees. Committee of Inquiry. From the staff point of view a prominent feature of the year's operations was the setting-up, for the first time in the history of the Department, of a departmental committee of inquiry to investigate service matters and grievances. The most important of these were questions of grading, pay, and overtime as they affected certain groups of officers. Under the chairmanship of Mr. R. E. Price, Conciliation Commissioner, of Auckland, the committee, which included specially selected service and departmental representatives, was admirably constituted to investigate the matters set down in the order of reference. As the result of the adoption by Government, with a few minor exceptions, of the recommendations made by the committee, a number of anomalies were adjusted and the general service conditions of the Department brought more closely into line with those existing in other Departments of State. Government's generous decision to give effect to the committee's recommendations notwithstanding the intervention of the war was, it is gratifying to report, appreciated fully by officers. Departmental Reporting System. A .matter that had been engaging the attention of the administration for some time past was the departmental system of reporting on the services of officers. After a good deal of investigation and

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consideration, a new system was devised and put into operation towards the end of the year. Briefly, the scheme provides for the reports to be prepared by specially appointed reporting committees instead of by the local controlling officers. Bach reporting committee consists of three members— two special reporting officers and the senior or local branch controlling officer. One of the two special reporting officers acts in the capacity of an Inspector conversant with the work of the branch, whilst the other is an officer well versed in reporting procedure. The aim of the new system, under which reports will be prepared by not more than eleven reporting committees, is to achieve as high a standard of uniformity as possible in the marking of reports. An added advantage will be that officers in competition for promotion within any one branch of the Service will be reported upon by the one reporting committee. Retirement of Officers. In the face of the present national emergency, with the consequent depletion of staffs by the enlistment of officers for war service, it was only to be expected that difficulties would arise in continuing the policy of retirement on completion of forty years' superannuation service, and the Department's notification towards the end of the year of a modification of the existing policy came as no surprise to officers. The position that arose could have been met by any one of a number of remedies which presented themselves and which would, it is considered, have been fully efficacious. It was recognized, however, that the adoption of any of them would have been unduly detrimental to the careers of officers generally, and after much deliberation a solution was found which, while providing satisfactorily for the maintenance of the Department's services, inflicted no avoidable hardship on officers. The course decided upon by Government was to permit officers, if they so desired, to exceed their forty years' service by a period equal to half their message-boy service, but with a maximum extension of eighteen months and subject to the operation of a newly approved method of effecting retirements only in March and September of each year. It should perhaps be mentioned here that officers who joined the Service prior to November, 1908, had their message-boy service, ranging from one to four years or more, credited to them for superannuation purposes, while, in the case of those who entered the Service after that time, message-boy service was not so credited. Thus from 1948 onwards there would, in normal circumstances, be a period of stagnation in retirements and, as a natural corollary, in promotions also. The new system of arranging retirements will have the effect of reducing this inert period by approximately half, and will enable the eliminated portion to be utilized now when the efficient and economic utilization of every unit of the nation's man-power is so urgently needed. The change was made with the full knowledge of the two Service organizations, and it is gratifying to record that both organizations agreed to co-operate with Government and the administration in bringing it to a successful issue. Extension of Telegraph Training-school Scheme. With a view to meeting the expected further shortage of telegraph officers due to war enlistments, arrangements have been made for the establishment in Wellington of a school for training women in machine-printing telegraph practice. When the new school is opened shortly it is hoped to have in training twenty-four specially selected female employees. As these are absorbed into vacancies on the working staff, further trainees will be employed. It is proposed also to establish in Wellington a Morse training school for male officers. Similar schools are already in existence at Auckland and Christchurch. Shortage of Telegraph Operators : Modification of Telegraph Entrance Examination. One immediate effect of the enlistment of officers for war service was the causation of a shortage of telegraph operators, and, to encourage juniors to qualify for telegraph cadetships, it was decided as a temporary measure to modify the Telegraph Entrance Examination. The five subjects of the educational test have been replaced by (a) an essay to test the candidate's knowledge of English, his general standard of composition, and his spelling and handwriting ; and (b) a paper containing elementary questions regarding telegraph procedure and the rates and conditions for inland telegrams as published in the " Post Office Guide." Any Second Division officer who passes in the two papers and the Morse-operating test becomes fully qualified by examination for promotion to the First Division. The expectation that the concession would induce a larger number of junior officers to qualify on the telegraph side of the Service has been fully realized, no fewer than 560 candidates sitting for the first examination held under the new syllabus. The announcement regarding the modification of the examination coincided with an appeal to all experienced telegraph officers to interest themselves in the training of young officers in telegraphy and thus to assist the Department in its efforts to ensure a sufficient number of operators for present and future requirements. To the response of senior telegraph officers must be ascribed much of the success that has been achieved. Establishment of Radio Division in General Post Office. To enable the administration and control of all telecommunication services to be centralized in the General Post Office, a Radio Division of the Director-General's Office was established on the 12th February, 1940. The new Division undertakes the management and control of coast and aeradio stations operated by officers of the Department. The Chief Engineer, General Post Office, continues to be responsible for engineering phases of development on the radio side, the establishment of such radio stations as may be authorized, and the maintenance, repair, and extension of the radio plant and equipment.

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Engineering Branch : Reorganization. The Telegraph Engineers' offices at New Plymouth and Timaru were closed as from the Ist April, 1939, and the relative engineering districts were incorporated in the Wanganui and Christchurch districts respectively. At the same time the Mart,on, Taihape, and Ohakune construction and fault areas were transferred from the Wanganui to the Palmerston North engineering district, and the Oamaru construction and fault area, previously included in the Timaru district, was transferred to the Dunedin engineering district. Promotion Board Election. Mr. M. W. W. Cummins, the sitting member on the Post and Telegraph Promotion Board, was re-elected unopposed in January last as the elective member of the Promotion Board. Appeal Board. The Post and Telegraph Appeal Board, under the Chairmanship of Mr. H. A. Young, Stipendiary Magistrate, Christchurch, sat at a number of the more important centres during the year. The session commenced at Dunedin on the 31st July and terminated in Wellington on the 13th September. Appeals totalling 309, received from 229 officers, were adjudicated upon, with the following results : Allowed, 20 ; conceded by Department, 33 ; withdrawn, 13 ; did not lie, 20 ; disallowed, 223. Sick Benefit Fund. During the year 552 officers were granted assistance from the Sick Benefit Fund. In December last the fund was accepted as a " like " society within the meaning of the Social Security Act, and officers receiving benefits from the fund are now treated in the same manner as are members of societies registered under the Friendly Societies Act. CORRESPONDENCE SCHOOL. During the year, 775 officers purchased technical courses from the Correspondence School, which now issues fourteen'courses—namely, magnetism and electricity; introductory course for outside plant; introductory course for telephony and telegraphy ; Morse telegraphy ; multiplex systems ; teleprinter systems ; radio (a) ; outside plant, Stages I and II; private automatic branch exchange systems ; telephony, Sections I, 11, 111, and IV. Of the officers who availed themselves of the facilities provided by the school, 80 per cent, passed the examinations held at the conclusion of the courses. SUGGESTIONS. With a view to promoting beneficial"changes in the Department, a general invitation was extended to officers in June, 1939, to submit suggestions for the better working of the Department in respect not only of systems and methods of work, but also of the welfare of officers generally. The response was most gratifying, over two thousand five hundred suggestions being received. That officers accepted the invitation in a spirit of co-operation was evident from the time and thought that had obviously been given to the formulating of most of the suggestions. Many of the proposals put forward involved extensive investigation. Partly as a result of this and partly as the outcome of conditions created by the war, it has not yet been possible to reach finality in some instances. Notwithstanding this, it is evident that the advantages that will accrue from the adoption of certain suggestions will be of appreciable benefit to the Department and to officers themselves. Suggestions Board. Some 226 suggestions for the better working of the Department were received from officers during the year, and ten awards, involving a total sum of £24, were made for meritorious proposals. COMMERCIAL BRANCH. Business transactions representing an annual revenue value of £61,116 were dealt with by the Commercial Branch during the year. The decrease of £16,075 compared with the total for the preceding year is attributable to a reduction in staff and a curtailment of activities consequent upon the outbreak of war. . Of the revenue earned during the year, £41,613 represents telephone business, and the balance (£19,503) advertising, postal, and miscellaneous business.

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STORES. Purchase of Stores in 1939-40 (including Stores purchased from other Departments and Stores manufactured in Post and Telegraph Workshops).

The following table shows the manner in which the stores were procured :— £ By purchase under tender or quotation .. .. .. .. 878,251 By purchase under Stores Control Board contracts .. .. ~ 64,172 By purchase from the Government Printing Office and other Departments 54,491 Manufactured at Post and Telegraph Workshops .. .. .. 15,503 £1,012,417 District Stocks as at 31st March, 1940. £ Wellington .. .. .. .. 468 141 Auckland .. .. .. .. .. 188 ,'829 Christchurch .. .. .. .. .. 77 747 Dunedin .. .. .. .. .. 67^970 £802,687 Motor-vehicles. At the outbreak of war the Army and the Air Departments requisitioned heavily for motorvehicles, comprising cars, trucks, tractors, and motor-cycles. In this connection. 467 vehicles were purchased, the cost of which, together with the cost of bodies for the trucks, amounted to £143,757. About two hundred bodies, to conform to various military specifications, had to be built within a very short time, and this work was arranged for partly by contracts with private body-builders and partly by using Government workshops. Other motor-vehicles bought for Government Departments during the year, together with those bought for the armed Services before the war, numbered 115, and cost £45,286. The total number of motor-vehicles purchased was therefore 582, the cost being £189,043. DEPARTMENTAL MOTOR-VEHICLES. During the year 44 new vehicles (2 cars and 42 trucks and vans) were placed in service. All of the vehicles were of British manufacture, and the bodies for the commercial vehicles were constructed in the Department's own workshops. Vehicles in commission at the end of the year numbered 882, comprising 224- motor-cars and 658 trucks and vans. Ihe fleet, including old vehicles held for sale, shows an increase of 14. The total mileage covered for the year was 6,890,199, an increase of 10,461 compared with the previous year. WORKSHOPS. The total value of the work performed in the various workshops during the year amounted to £237,036, of which £28,401 represents the value of services rendered to other Government Departments. BUILDINGS. During the year the erection of the following departmental buildings was completed: Post-office buildings at Burnham Military Camp, Mahoenui, Ngaruawahia Military Camp, Otorohanga, Papakura Military Camp, Stockton Mine, and Trentham Military Camp ; Postmasters' residences at Marton, Okaihau, Otorohanga, Papakura, Taumarunui, and Waimate ; line store and garage buildings at Ash burton and Whakatane : an additional garage at Kaikoura ; an office and line depot building at Wellington (Herd Street) ; and automatic-telephone-exchange buildings at Mount Pleasant and New Brighton.

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Procured On Indent. Total. Zealand. £ £ £ Purchases for Post and Telegraph Department 380,492 260,174 640,666 Purchases arranged for other Departments, comprising (1) motor - vehicles for all Departments except the Post and Telegraph, and (2) other stores for nonpurchasing Departments .. .. 75,009 296,742 371,751 455,501 556,916 1,012,417

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Major additions and alterations were made to the chief-post-office buildings at Oamaru and Palmerston North and to the post-office buildings at Ellerslie, Kaipara Flats, Kaiwaka, Ohingaiti, Okaihau, Opotiki, and Waiau. The following works were in progress at the end of the year : Avondale (automatic-telephone exchange), Awarua Radio (receiving-station and alterations to existing buildings), Christchurch (chief post-office, Hereford Street block), Devonport (addition to automatic-telephone exchange), Dunedm (workshops and store), Gisborne (automatic-telephone exchange), Hamilton (chief post-office), Huntly (addition to post-office), Invercargill (chief post-office), Kaukapakapa (post-office and quarters), Mosgiel (post-office and residence), Nelson (line store, garage, and workshops), Ngongotaha (addition to post-office), Taupo (post-office and quarters), Waikaka (addition to post-office), and Wanganui (chief post-office). , Major additions and alterations to the Auckland chief-post-office building and alterations to the Auckland (Newmarket) store and workshops buildings were in progress at the end of the year. DEATH OF PRIME MINISTER, RIGHT HON. M. J. SAVAGE. On the announcement of the death at Wellington of the Prime Minister, the Right Hon. M. J. Savage, 011 Wednesday, the 27th March last, arrangements were made for as many officers as possible throughout the Dominion to be released from duty on that day and for the staff of the General Post Office to be reduced to a minimum until after the day of the funeral, Sunday, the 31st March. As a mark of respect to the late Prime Minister, a period of complete silence was observed in all branches of the Department, including telegraph operating-rooms and telephone exchanges, between 9 a.m. and 9.10 a.m. on Saturday, the 30th March. POST OFFICE PATRIOTIC FUND. The national and provincial patriotic funds will benefit substantially by reason of a generous decision of Post and Telegraph officers. An invitation to officers to contribute on a voluntary basis to the patriotic funds, which was issued after consultation with the Post and Telegraph Employees' Association and the Post and Telegraph Officers' Guild, has met with a splendid response. Contributors to the Post Office fund have agreed to a regular deduction from each salary payment of small amounts nominated by them. It is expected that subscriptions will amount annually to a total of between £5,000 and £6,000. . . . . . After further consultation with the Service organizations, it was decided that subscriptions to the Post Office fund in each provincial district would be allocated in the proportion of one-third to the local provincial patriotic fund and two-thirds to the national patriotic fund. CENSORSHIP. The Censorship and Publicity Emergency Regulations 1939, issued on the Ist September, 1939, gave authority for censorship to be imposed on postal packets and telegrams. These regulations, so far as they relate to censorship, are administered by the Controller of Censorship, who is under the control and subject to the direction of the Censorship and Publicity Board. NEW ZEALAND CENTENNIAL EXHIBITION. In the Government court of the New Zealand Centennial Exhibition, held at Wellington from the Bth. November, 1939, to the 4th May, 1940, the Department, conducted a Post and Telegraph Office, with money-order and savings-bank facilities, and displayed in a separate stall a number of exhibits from which the public were enabled to gain some idea of the variety of the Department's services and of the nature and intricacy of the equipment used. In addition, about fifty coin-in-the-slot telephones were installed throughout the Exhibition buildings and grounds. The facilities provided by the Centennial Exhibition post-office were used extensively by visitors, large numbers of whom found much of interest also in the philatelic bureau, which adjoined the office. The various exhibits at the Department's stand proved to be of consuming interest to the many thousands of visitors. These exhibits included the " Pageant of Progress," a succession of milestones in the history of the Department presented in dioramic form by means of cut-out scenes and models on a moving belt. On a screen in the background, modern methods of working with up-to-date equipment were shown synchronistically by sound film, thus providing in striking form a vivid contrast between the past and the present. Of particular interest were the working units of modern telegraph and telephone equipment and associated apparatus, the electrically operated map showing the Empire air mail-services, and the relief model illustrating the Cook Strait communication services. In tJite citaema hall in the Government court two films " From Backblocks to High Seas " and " Royal Mail," illustrating various phases of the Department's activities, were screened at intervals^ From public and press comment the Department's display was regarded generally as being of a high order.

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POSTAL SERVICES. INCREASE IN POSTAGE-RATES. Primarily as a means of assisting Government finance consequent upon the outbreak of war, postagerates were increased from the Ist October on inland and overseas letters, post-cards, printed papers, and newspapers, and on inland commercial papers, packets, and parcels. The " late fee " on letters, the registration fee, and the express-delivery fees also were increased. POSTAL CONCESSIONS TO MEMBERS OF NEW ZEALAND EXPEDITIONARY FORCE. Shortly after the outbreak of war the overseas postal administrations concerned were approached with a view to arranging concessions in postage-rates and Customs charges on mail-matter for members of the armed Forces serving overseas and, as a result, the following reduced rates on correspondence and parcels addressed to New Zealand and other Empire soldiers, sailors, and airmen were introduced : — Letters : The inland letter rate of 2d. for first ounce and Id. for each succeeding £ oz. Newspapers : The British Empire rate of |d. for each 3 oz. Parcels : Up to 3 lb,, Is. 6d. Up to 7 lb. (maximum), 3s. Negotiations are being continued with a view to reducing still further the postage-rates on parcels for the men on service overseas and to having the Customs charges on such parcels waived. Due to space limitations on the curtailed overseas air service, it has not been possible to grant any reduction in the charge on air-mail letters addressed to soldiers in Egypt. INLAND MAIL-SERVICES. Contracts for the performance of the inland mail-services in the Gisborne, Napier, New Plymouth, Palmerston North, Wanganui, and Wellington postal districts expired on the 31st December last, and were relet during the year for a further period of three years as from the Ist January, 1940. At the end of the year there were 32,486 rural box-holders. This number, which is the highest on record, represents an increase of 1,586 compared with the number at the 31st March, 1939. OCEAN MAIL-SERVICES. With the exception of the services to Great Britain and South America, little alteration as the n suit of hostilities took place in the normal steamship schedules utilized by the Post Office for the conveyance of mails overseas. During the period September-December several mails despatched to Great Britain suffered exceptional delays in transit, but it is pleasing to record that no mails were lost as the result of enemy ,action. The position concerning mails to Great Britain may now be regarded as normal, the average transit time being approximately forty days. Mails from overseas have been received regularly and no excessive delays have occurred. The average transit time for mails from Great Britain was approximately forty days. AIR MAILS. Inland. Up to the outbreak of war, when services were considerably curtailed owing to civil aeroplanes being taken over by Government for defence purposes, the volume of correspondence conveyed by inland air services continued to show a steady increase. Figures showing the number of letters carried during the last three years are hereunder : —

The effect of the curtailment of the services, combined with the increase in postage-rates, is reflected in the appreciable drop in the volume of correspondence carried during the latter half of 1939-40. At the 31st March, 1940, the following services were in operation :— Service. _ _ Frequency Auckland-New Plymouth - Palmerston North-Wellington-Christ- (both ways). church-Dunedin .. .. .. . ■ • ■ Thrice weekly. Wellington-Blenheim .. .. .. ■ • • • Twice daily. Wellington-Nelson .. .. .. .. • - ■ • Twice daily. Nelson-Westport-Greyinouth-Hokitika .. .. ' .. Daily.

11

| 1937-38. | 1938-39. 1939-40. I 1 June quarter .. .. .. 325,584 508,625 685,984September quarter .. .. 381,019 558,642 694,145 "December quarter.. .. .. 4-66,813 649,437 304,023 March quarter .. .. .. 515,225 665,723 200,039 1,688,641 2,382,427 1,884,191

F.—l.

Overseas. Negotiations for the establishment of a regular trans-Tasman air service continued throughout the year. Notwithstanding the setback caused by the war, it is expected that the service will be inaugurated at an early date, with regular weekly flights between Auckland and Sydney. The postage-rate fixed for correspondence posted in New Zealand for conveyance by the trans-Tasman service is sd. per \ oz. On the establishment of the service, correspondence will be conveyed by air over the whole distance between New Zealand and England. It is not proposed, however, to make any increase in the postage-rate (Is. fid. each |oz.) on correspondence for the United Kingdom. No advice has yet been received as to the date of resumption of the trans-Pacific air mail-service, which was inaugurated by Pan-American Airways, Inc., in a flight, from Auckland to Honolulu in the " Samoan Clipper " in January, 1938, but temporarily abandoned upon the loss of the flying-boat in the return trip to the Dominion in the same month. EMPIRE AIR SERVICE. Until September regular thrice-weekly services were maintained in the Empire air service between Australia and England, the approximate transit time for correspondence exchanged between New Zealand and England being fifteen days. Upon the outbreak of war, however, the " all-up " scheme under which all letters for British countries within the sphere of the Empire services were conveyed by air at the rate of l|d. for each oz. was suspended, reversion being made to the former system under which the postage-rate on air-mail letters from New Zealand to Great Britain was Is. 6d. a £ oz. In addition, the frequency of the service between Australia and the United Kingdom was curtailed to twice weekly, and the abnormal conditions increased the average transit time of mail-matter exchanged between Great Britain and New Zealand to approximately twenty-two days. From August, 1938, when New Zealand commenced to take advantage of the " all-up " scheme, until the service was suspended thirteen months later, the weight of letters despatched from New Zealand for forwarding by the Empire service was 112,4151b. (an average of 8,6001b. a month). From September, 1939, to March. 1940, under the surcharge rate now operating, the weight of such mail-matter fell to 7,289 lb. —an average of just over 1,000 lb. a month. When the flying-boat " Centurion," en route from Australia to Great Britain, met with an accident and sank when landing at Calcutta on the 12th June, five bags of mail from New Zealand were not recovered. Included in the lost bags (one each for London, Alexandria, Johannesburg, Colombo, and Calcutta) were forty-six registered articles. POSTAGE-STAMPS, ETC. Centennial Postage-stamp Issue. The Centennial stamps of the denominations fd., Id., IJd., 2d., 2£d., 3d., 4d., 5d., 6d., 7d., 9d., and Is., particulars of which were contained in the report for 1938-39, were placed on sale on the 2nd January. A pamphlet descriptive of the historical background and treatment of each design was issued with the stamps, and six official pictorial covers also were made available to the public. Consequent on the amendment of the postage rates the 7d. Centennial stamp was withdrawn on the 7th March, and replaced on the Bth March by an Bd. stamp in the same design and colours as the 7d. denomination. Advices received from all parts of the Dominion and from countries overseas indicate that the Centennial issue has stimulated interest in New Zealand stamps and has fulfilled its purpose of commemorating appropriately in postage-stamps the Dominion's Centennial. King George VI Stamps. On account of the introduction of the Centennial issue, the -|d., Id., and l|d. King George VI stamps, except those in stamp booklets, were temporarily withdrawn from sale on the Ist January. The |d. and Id. denominations in rolls were retained for use in stamp-vending machines. Pictorial Stamps. The 2d., 2|d., 3d., 4d., 5d., 6d., Bd., 9d., and Is. denominations of the pictorial issue were temporarily withdrawn from sale on the Ist January on being replaced by corresponding denominations of the Centennial issue. Air-mail Stamps. The 3d. and 6d. air-mail stamps were withdrawn from sale on the 30th December, 1939, and will not be replaced. Health Stamps. Health stamps for 1939-40 were printed in two values, Id. and 2d. (|d. for health and -|d. for postage, and Id. for health and Id. for postage). After the stamps had been received, however, the rates of postage were increased, necessitating the overprinting of the stamps to bring the postage value to Id. and 2d. respectively. No doubt as a result of the increase in the cost of the stamps and of the unsettling influence of the war, the campaign was not as successful as in some previous years. Stamps to the value of £7,685 were sold, and one-third of tlys amount, representing the " health " value, together with donations amounting to £3,670, was paid to the several Health Camp Committees.

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Express-delivery Stamps. Express-delivery stamps, which have been current since 1903, were withdrawn from issue on the 15th August. A new stamp of the same denomination (6d.) depicting a modern Post Office delivery van was placed on sale on the 16th August. Duty Stamps. . Tho replacement of the duty stamps depicting Queen Victoria by stamps bearing the " Arms " design was completed in June. Certain stamps of the higher denominations were overprinted with the value in black to avoid possible confusion with stamps of other denominations. Postage-due Stamps. Postage-due stamps in the denominations of |d., Id., 2d., and 3d. were withdrawn from sale on the 15th August, and replaced on the 16th August by a new set in the same denominations. Official Stamps. On the 2nd January, Centennial stamps overprinted " Official "replaced the -id., Id., and lid King George VI official stamps and the 2d., 2|d., 3d., 4d., 6d., 9d., and Is. pictorial official stamps. The Centennial official denominations issued were -|d., Id., lfd., 2d., 2Jd., 3d., 4d., 6d., 9d., and Is. The Bd. Centennial stamp overprinted " Official " was issued on the Bth March. Postal Stationery. Following the introduction of postal stationery imprinted with the King George VI die, Id. lettercards so imprinted were issued during May, 1939, |d. post-cards during Julv, 1939, and Id' post-cards during March, 1940, " 1 To conform with the increased rates of postage occasioned by the war, commercial envelopes and letter-cards were overprinted 2d. on Id. and issued in October, 1939. Registered-letter envelopes were overprinted 6d. on 4d. and issued in November, 1939, and §d. post-cards overprinted Id. were issued in February, 1940. Stamps for the Mandated Territory of Western Samoa. A set of four stamps of the denominations Id., Hd., 2|d., and 7d. was issued for Western Samoa on the 29th August to mark the completion of twenty-five years of Now Zealand's control of the Mandated Territory. The stamps were withdrawn from sale on the 30th November. CONTROL OF STAMP-PRINTING: ASSUMPTION BY POST OFFICE. Under the authority of the Adhesive Stamps Act, 1939, the Post Office is responsible for the creation, custody, and disposition of adhesive stamps and for the administration of the regulations authorized to be made under the Act. The passing of the Act validates the transfer from the Stamp Duties Department to the Post Office of the control of the printing, &c., of adhesive stamps used by the Post Office for postage purposes and by the Stamp Duties Department for revenue purposes, a change which took effect on the Ist August, 1935. PARCEL-POST CARDBOARD CONTAINERS. In 1937 the Department commenced to experiment with cardboard containers for the conveyance of fragile parcels. An extensive trial of the cartons proved their entire suitability for the purpose. Owing to their light weight compared with the heavy wicker hampers previously in general use, the cardboard containers are very convenient to handle, and their use is now extended to the parcel-post service throughout the Dominion. Wicker hampers are now used only to a limited extent. DEAD-LETTER OFFICE. T , 1939. 1938. Letters returned to senders in New Zealand .. .. 518,852* 518,570f Other articles returned to senders in New Zealand . . 378,294 397' ]34 Letters returned to other Administrations .. .. 52,052J 49',829§ Other articles returned to other Administrations .. 50,211 56 313 Letters destroyed (senders unknown and contents of no value ) 31,635 32,526 Letters intercepted addressed to persons and firms on prohibited list .. .. .. .. .. ]03 178 The proportion of undelivered letters to the total number of letters delivered was 0-38 ner rent

tI ° C """ aS " e ' M »■->*» «

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MONEY-ORDERS. Money-order business again showed an appreciable increase, 911,484 orders, of a value of £5,094,364. being issued during the year. This represents an increase compared with the previous year of 63,434 in number and £292,071 in value. POSTAL NOTES. Postal-note business decreased, the sales being 3,586,655 notes, of a value of £1,397,780, compared with 3,806,503 notes, of a value of £1,469,125, during the previous year. The commission totalled £36,996 14s. 7d„ an increase of £1,380 Bs. lid. on the commission earned in 1938-39. The higher amount received in commission was due to the increase made m the rates or commission from the Ist October. BRITISH POSTAL ORDERS. Sales of British postal orders decreased in number and amount, 93,415 orders, of a value of £37 931 3s. 9d„ being sold, as against 97,620, of a value of £46,109 Bs. 9d., during the previous year. There was a decrease also in the number and amount of British postal orders paid, 18,754 orders, of a value of £8,227 Is. 6d., being cashed. In the previous year, 28,719 orders, of a value of £13,986 7s. od., were paid. SAVINGS-BANK. Deposits lodged in the Post Office Savings-bank during the year amounted to £25,151,287 and the withdrawals to £29,462,838, an excess of withdrawals of £4,311,551. The interest credited to depositors was £1,603,466 13s. 5d., and the amount at the credit of depositors at the end of the year was £58,002,002. School Savings Branch. At the end of the year the school savings-bank scheme, the object of which is to encourage thrift among children, was in operation in 905 schools, an increase for the year of 141. The deposits amounted to £36 809 2s 2d and the withdrawals to £26,687 os. 2d., an excess of deposits of £10,122 2s. od. Ihe total number of operative accounts at the 31st March was 76,352, the amount at credit being £79,307 9s. 4d. Interest to the amount of £1,519 13s. 2d. was credited to depositors. " '' O n leaving school, 3,456 depositors transferred their accounts to the Post Office Savings-bank. Savings-bank Letters op Credit. Letters of credit numbering 8,292 were issued during the year for an aggregate amount ol £160,981. POST OFFICE INVESTMENT CERTIFICATES. The total sales of Post Office investment certificates for the year amounted to £17,930. WORK PERFORMED FOR OTHER DEPARTMENTS. Year by year the work performed by the Department on behalf of other Government Departments increases in volume. The total sum handled in this respect during the year amounted to approximately £75,000,000, an increase of about £13,000,000 on the the previous year's total. Social Security Act, 1938 : Work performed by Post Office. The registration of women and. youths under provisions of the Social Security Act, 1938, which came into operation on the Ist April, 1939, was performed by the Post Office, most of the work having to be undertaken during the month of May. The number of registrations was approximately 644,000. The Post Office receives on behalf of Treasury a large proportion of the moneys due under the Act, and social-security receipts for the year amounted to £7,326,316, made up as follows: — £ (a) Registration fee . . ■ ■ • • • • ■ • • • ®^9,661 (I) Social-security charge on income other flian salary or wages .. 2,077,414 (c) Social-security charge on salary or wages collected in cash .. 2,132,542 (d) Sales of social-security stamps .. .. .. •• 2,486,699 £7,326,316 In addition to receiving moneys due, the Post Office disburses the amounts payable to approximately two-thirds of the persons receiving benefits under the Act, the remaining one-third being paid by officers of the Social Security Department.

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Registration op Motor- vehicles, and Associated Work. Motor-vehicles licensed at the 31st March last numbered 315,520, an increase of 9,692 or 3-17 per cent., over the number licensed at the corresponding date in 1939. The registrations of motor-vehicles during the year totalled 29,770, or a decrease of 12,262 (29-17 per cent.) compared with those effected during the preceding twelve months. Notifications of change of ownership totalled 125,795, compared with 164,265 during the previous year, a decrease of 38,470, or 22-20 per cent. Approximately 13,000 applications for duplicate certificates of the registration of motor-vehicles were dealt with. The total amount of motor-registration fees collected was £602,960, an increase of £10,197 compared with the previous year. More detailed statistics concerning the work undertaken by the Post and Telegraph Department in connection with the registration and licensing of motor-vehicles appear in the report of the Transport Department. The premiums collected on behalf of the forty insurance companies authorized to underwrite business in terms of the Motor-vehicles Insurance (Third-party Risks) Act, 1928, totalled £458,720, an increase of £101,714 over the amount collected during the preceding twelve months. A total of 51,489 claims for refunds of duty on motor-spirits were approved for payment during the year. The total amount refunded was £206,343 6s. sd. Compared with the figures for the previous year the claims decreased in number by 1,058 but increased in amount by £11,251 Bs. 2d. The increase in the amount refunded was due mainly to the amount of rebate being increased by 4d. per gallon on all motor-spirits purchased on and after the 2nd August, 1939. Mileage tax was collected in respect of 471 vehicles, as compared with 327 vehicles during the preceding year. The gross amount of tax collected was £22,507, compared with £14,184 for the preceding twelve months. Rationing op Motor-spirits and Power Kerosene. The Oil Fuel Regulations, which came into force on the outbreak of war, provided for the rationing of motor-spirits and power kerosene to be undertaken by the Post and Telegraph Department. Approximately 340 Deputy Registrars of Motor-vehicles (Postmasters) were appointed Subdistrict Oil Fuel Controllers, and they have handled all applications for oil fuels lodged in their respective areas. The work of Sub-district Controllers is co-ordinated through the District Oil Fuel Controllers (Chief Postmasters). All policy matters are determined by the Oil Fuel Controller, who issues his instructions to the District and Sub-district Controllers through the Director-General of the Department. Licenses in respect of cars used for private purposes were not issued until consideration had been given to applications from essential users. Coupons entitling owners of private cars and motor-cycles to purchase motor-spirits were, however, made available within ten days from the inception of the rationing scheme. The rationing was introduced on the sth September, 1939, and was suspended during the months of December, 1939, and January, 1940. When the scheme was reintroduced on the Ist February, 1940, all licenses were reviewed and, where necessary, amended to comply with the basic rations laid down by the Oil Fuel Controller. Advisory Committees, consisting of representative persons, have been set up in forty-five towns to consider applications for licenses in excess of the basic rations. The recommendations of these Committees have been particularly helpful to Sub-district Controllers in allocating the reserve supplies made available for each district. More detailed particulars of the rationing scheme will be found in the report of the Transport Department. Military Allotment Warrants. The Department undertakes the payment of military allotment and dependants' allowance warrants. 'Warrants numbering 75,782 were paid up to the 31st March. In addition, Post Office Savings-bank accounts have been opened to receive the allotments of pay of those soldiers who have not made next-of-kin allotments. TELEGRAPH AND TOLL SERVICES. TELEGRAPH TRAFFIC. Although there was a falling off in the volume of telegraph business during the year, the revenue Ms 'been well maintained as a result of the increase in rates from the Ist October. Compared with the previous twelve "months the volume decreased by 462,515 messages (8-1 per cent.), while the revenue increased by £6,665 (1-9 per 'cent.).

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INCREASE IN TELEGRAPH RATES. The amounts by which telegraph rates were increased from the Ist October following Government's decision that departmental services were to contribute financially to the Dominion's war effort were as follows : — On week-days— Ordinary telegrams and letter-telegrams .. .. .. 2d. per message. Urgent telegrams .. .. .. .. .. 4cl. per message. On Sundays and holidays — Ordinary telegrams .. .. .. .. .. 6d. per message, plus |d. each word exceeding six. Urgent telegrams .. .. .. .. .. Bd. per message, plus |d. each word exceeding six. In addition, a special message-tax of 2d. was imposed on radio-telegrams and on cablegrams, except those addressed to members of His Majesty's Army and Air Force. The rates on press telegrams also wore increased. OVERSEAS LETTER-TELEGRAM SERVICE. In continuation of the policy of reducing rates for telegraphic services within the Empire and with a view to fostering the exchange of social communications, an Empire greetings-telegram service— available throughout the year —was introduced on the Ist May, 1939. The service may be used not only for messages of greetings or good wishes, but also for those containing family or other news of a non-commercial, personal nature. The charges to the principal Empire countries are as follows : — Australia . . .. . . .. . . 2d. a word (minimum charge, 25.). United Kingdom .. .. .. .. ~] India^ a '' ' '' '' J>sd. a word (minimum charge, 55.). South Africa .. .. .. .. J REDUCTION IN EMPIRE PRESS RATES. A further development in the Empire flat-rate scheme for cablegrams was the introduction in April of a flat rate of 2jd. a word for press telegrams exchanged with certain Empire countries. As a result, a considerable reduction in rates has been effected. CABLEGRAMS TO MEN ON ACTIVE SERVICE ABROAD. Since the 10th February cablegrams addressed to members of His Majesty's Army and Air Force abroad have been accepted at the special rate of sd. a word, with a minimum of 2s. 6d., no charge being made for the addresses of the messages. Unfortunately, it has not yet been possible to include Egypt and Canada in the arrangement, but negotiations with this object in view are proceeding and finality is expected shortly. TELEGRAPHIC CONCESSIONS TO OFFICERS AND MEN OF UTS MAJESTY'S SHIPS ENGAGED IN RIVER PLATE ACTION. After the memorable River Plate naval engagement, arrangements were made for telegrams exchanged between, the officers and men of His Majesty's ships " Exeter," " Ajax," and " Achilles " and their relatives and friends to be accepted free of charge. The privilege was renewed on the occasion of the return of the " Achilles "to Auckland some time after the action. Considerable use was made of the service. DECORATIVE TELEGRAM STATIONERY. Several changes have been effected in telegraph stationery, a new design having been introduced for " greetings " telegrams and special forwarded and received forms provided for cablegrams. In addition, telegrams and cablegrams are now delivered in " window " envelopes. MACHINE-PRINTING TELEGRAPHS. The need for up-to-date telegraph facilities at the post-offices established at the military camps at Trentham and Burnham was met by the installation of teleprinter machines. In addition, installations were effected at the Centennial Exhibition post-office and the Meterological Office, Wellington, the latter machine being required for the reception of weather reports. Machine-printing telegraph apparatus is now installed in thirty-two of the Department's offices. MULTI-CHANNEL VOICE-FREQUENCY TELEGRAPH SYSTEMS. During the year equipment has been installed to provide a six-channel voice-frequency telegraph system between Wellington and Auckland, one eighteen-channel system between Wellington and Palmerston North, and one similar system between Auckland and Hamilton.

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MULTI-CHANNEL CARRIER-FREQUENCY TELEGRAPH SYSTEMS. Ph oarri ® r ; fre q ue i nc y telegraph system is now being installed for operation between CI ristchurch and Greymouth in order to provide for the restoration of direct telegraphic facilities between 3h ristchurch and the principal West Coast stations. The system is so designed that it can be operated over the same pair of wires as the existing three-channel carrier telephone system. The one existing Srtelegraph mllges ° f ° arrying simultaneousl y four telephone conversations and TELEPHONE TOLL SERVICE. Toll Traffic. , , numbe r of toll calls handled during the year exceeded last year's record figure by 144,673 the mfuo S ' i Jon ?f„ an 1I1 I c ' rease of almost 1 per cent. Toll revenue for the year amounted to t700,143, an increase ot £90,412, or 13 per cent, over the figures for the previous year. Increase in Toll Rates. In conjunction with the increases made in postal and telegraphic charges following the outbreak of war the charges for toll calls were increased from the Ist October by the addition of Id. for each 6d. or traction of bd. m cases m which the ordinary charge exceeded 3d. Facilities for Toll Calls by Public when Offices closed. The multi-com slot telephones installed at Dunedin and Christchurch in 1938 to enable toll calls to be made after office hours having proved very successful, similar facilities were provided during the year at Wellington and Trentham Military Camp. It is the intention to install similar machines at Auckland Hamilton, Lower Hutt, Palmerston North, Timaru, Wanganui, and Wellington South. CARRIER-CURRENT TELEPHONE SYSTEMS. Carrier-current telephone systems brought into service during the year are as follows ■— A uckl and-Wellington ..One three-channel system. uckland Napier .. .. _ One three-channel system. Aucklana-Tauranga .. .. .. .. One three-channel system. Auckland--1 hames .. .. .. .. One single-channel system. Auckland-Kaitaia . . .. . . . . One single-channel system. Whangarei- itaia • • • ■ • • • • One single-channel system. Hamilton-Jfauranga One single-channel system. Tauranga Gisborne .. .. .. .. One single-channel system, a merston North-Napier .. .. .. , . One three-channel system. Welhngton-Wanganui .. .. .. .. One three-channel system.* Christchurch-Greymouth One three-channel system. unedm Cromwell . . . . .. .. One single-channel system. Dunedin-Roxburgh One single-channel system.

* One channel extended to Hawera.

EXTENSION OF TOLL SYSTEMS. Complementary to the steadily increasing number of telephone subscribers is the demand for toll service, and to ensure that inter-communication between offices is available with a minimum of delay the traffic-carrying capacity of existing toll circuits is extended where necessary. A large number of improved and additional outlets were provided during the year. NEW ZEALAND SUBMARINE CABLES. COOK STRAIT CABLES. In August last a clean break in the Cook Strait four-core telephone cable at a point approximately fifteen miles from Lyall Bay resulted in the loss of four inter-Island telephone channels and left the Department with only two cables across Cook Strait, the new coaxial cable and one single-core telegraph cable. By a special adaptation of the carrier system, an additional circuit was established over each of these two cables, but in view of the increase in traffic expected on the opening of the Centennial Exhibition arrangements were made, in conjunction with the Marine Department, to equip the Government steamer " Matai " to undertake the repair of the four-core cable. Communication over this cable was re-established on the 17th December. The repair work necessitated the laying of approximately three and a half miles of new cable In addition, four and a half miles of existing cable was picked up and relaid. A certain amount of preliminary survey work was necessary, and this was carried out with the aid of a small vessel the s.s. Tuatea." In July last No. 1 Oterangi Bay-White's Bay single-core telegraph cable developed a fault which was found to be due to a break at a point about one nautical mile from Oterangi Bay. With the exception of No. 5 Lyall Bay-White's Bay cable, all of the single-core telegraph cables across Cook Strait are now out of commission, but no action is being taken to repair these old-type cables as it will be practicable to increase progressively the number of channels over the coaxial cable to meet traffic developments.

3—F. 1.

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RADIO-TELEGRAPH AND RADIO-TELEPHONE SERVICES. DEPARTMENTAL RADIO STATIONS : EQUIPMENT. Six steel lattice towers to support a new aerial system have been erected along the ridge of Tinakori Hill, on which Wellington-Radio stands. The towers are from 120 ft. to 155 ft. in height and are so arranged that their tops are level. The medium-wave section of the new aerial system has been completed, and the short-wave section is at present in course of erection. _ Improvements in aerials and equipment have also been made at other stations. MUSICK MEMORIAL AERADIO STATION. The Musick Memorial Aeradio Station at East Tamaki (Auckland), on the site known as Musick Point, was opened on behalf of the Air Department in August last._ The station, which has been established primarily for use 111 connection with the trans-Tasman air service, is accommodated in temporary buildings, but arrangements are in hand for the early commencement of the permanent buildings, the receiving section of which will constitute the national memorial to the late. Captain Musick and crew'of the Pan-American flying-boat " Samoan Clipper," which was lost in January, 1938. The station maintains regular point-to-point services with the air terminal at Rose Bay, Sydney, and with flying-boats crossing the Tasman. Following the recent closing of the Pan-American Co.'s radio stations at Auckland and Russell, arrangements were made for the Musick Memorial Station to maintain point-to-point services with Noumea and Canton Island on the South Pacific section of the company's route between Honolulu and Auckland. GISBORNE, NAPIER, AND TAURANGA STATIONS. Consequent upon the curtailment of commercial air services following the outbreak of war, the Gisborne, Napier, and Tauranga aeradio stations were closed. The services at a number of other aeradio stations have been modified. INSPECTION OF RADIO EQUIPMENT INSTALLED ON SHIPS. To ensure that radio equipment installed on ships registered in New Zealand and on other British ships regularly engaged in New Zealand waters is kept in satisfactory condition, departmental Radio Inspectors make half-yearly inspections on all ships in service. During the year ended 31st December last radio installations on eighty vessels were inspected. OVERSEAS RADIO-TELEPHONE SERVICE. Upon the outbreak of hostilities early in September the overseas radio-telephone service was suspended. TELEPHONE-EXCHANGE SERVICES. TELEPHONE DEVELOPMENT. The number of telephone-exchange subscribers continues to grow steadily, the total connected at the 31st March, 1940, being 165,151. This number, which is the highest on record, is 7,546, or 4-8 per cent., more than were connected at the 31st March, 1939. Toll calls also reached a record total, the number handled during the year being 15,711,671, an increase of 144,673 calls, or almost 1 per cent., over last year's figures. TELEPHONE CONNECTIONS: CLASSIFICATION. Of the total paid telephone exchange connections (main stations and extensions combined), 26 per cent, are of business status and 74 per cent, of residential status. Individual-line stations represent 63 per cent, of the total connections and party- and rural-line stations 37 per cent. CHRISTCHURCH TELEPHONE-EXCHANGE: RATING SYSTEM. The City of Christohurch has undergone extensive suburban development during the last decado, and the outward movement of population has necessitated the provision of modern telephone facilities involving comprehensive changes in the Christchurch telephone rating system in conjunction with extensive additions to the automatic-exchange equipment. The first step in the scheme was the establishment of two new automatic exchanges, one at Mount Pleasant to serve the Heathcote Valley, Sumner, and Lvttelton areas, and another at New Brighton to serve the subscribers of that district. Both exchanges form integral parts of the Christchurch Telephone-exchange system and, consequently, provide unrestricted intercommunication with other exchanges of the network. The Mount Pleasant exchange was brought into operation on the 10th January, and the New Brighton exchange on the Bth May, 1940. The alterations to the rating system which followed the establishment of these two exchanges necessitated the establishment of special rating areas as follows : (a) New Brighton ; (b) Heathcote Valley - Redcliffs ; (c) Clifton-Sumner ; (d) Lyttelton.

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In the special rating areas mentioned, the charges for telephone service comprise the usual rates as for telephone service within the base-rate area, together with an additional charge per subscriber as under in lieu of the usual regulation " extra-nnleage " charges :—

Already a large number of new subscribers in the suburbs concerned has been obtained, while many existing subscribers have converted from party-line to individual-line service. LOWER HLTTT AUXILIARY MANUAL EXCHANGE. Unprecedented growth in the number of subscribers served by the automatic-telephone-exchange system at Lower Hutt caused the existing automatic equipment to reach the limit of its capacity early in 1939, and in order to cater for further new subscribers it was necessary to install an auxiliary manual switchboard. The auxiliary exchange, which is staffed continuously, is functioning satisfactorily, and will be continued until such time as additional automatic equipment can be installed. CENTENNIAL EXHIBITION : TELEPHONE ARRANGEMENTS. Full telephone facilities were provided at the Centennial Exhibition for both exhibitors and visitors. Exhibitors were given unrestricted intercommunication with the Wellington exchange system, and 220 connections of this type (including extension stations) were provided. The telephone needs of visitors to the Exhibition were met by the provision of forty-nine penny-in-the-slot machines connected with the Wellington system. In addition, four cabinets were provided at the Exhibition Post Office for the convenience of visitors wishing to use the toll system for calls beyond Wellington. NUMBER OF TELEPHONE-EXCHANGES. The Kakahi exchange was closed during the year, the subscribers having transferred their connections to the Taumarunui exchange. The number of telephone-exchanges now operating is 347. PUBLIC CALL OFFICES. The number of public call offices (coin-in-the-slot telephones) installed in the Dominion increased from 1,103 to 1,231 during the year, an increase of 128. Of the slot telephones in use, 1,179 are of the Id. type, 7of the 2d. type, and 45 of the 3d. type. The total collections from the machines for the year was £66,237, an increase of 8-9 per cent, over the previous year. TELEPHONE DIRECTORIES. As an economy measure and as a means of conserving paper-supplies during the war period, the classified trades section of telephone directories has been discontinued, and the frequency of issue of directories is being reduced from half-yearly to yearly wherever practicable. NEW AUTOMATIC-TELEPHONE-EXCHANGE EQUIPMENT. The installation of the automatic-telephone-exchange switching-apparatus at Napier was completed and the exchange was cut over to automatic working on the 2nd December. Napier now has an up-to-date automatic-telephone-exchange system comprising 2,700 subscribers' lines. The equipment for the new automatic-telephone exchange at Gisborne, which was ordered in October, 1938, is arriving in the Dominion, and the installation work is proceeding as rapidly as possible. It is expected that the cut-over of this exchange to automatic working will take place in December next. The installation of the initial equipment for the Mount Pleasant and New Brighton (Christchurch) sub-exchanges was completed during the year. A considerable amount of the automatic switching-equipment ordered last year for exchanges in the Auckland metropolitan area has been received, and a comprehensive programme for the extension of the automatic switching-system in that area has been commenced. The work involves the establishment of new exchanges at Avondale and Highbury ; the replacement of the existing exchanges at Onehunga, Devonport, St. Heliers (temporary), and Mount Albert (temporary) ; and the installation of large extensions at various other exchanges in the area. UTILIZATION OF LOCALLY GROWN TIMBERS FOR USE AS POLES. Wherever possible, it is the policy of the Department to utilize New Zealand products and manufactures. Recently the State Forest Service commenced the cutting of some of its plantations of larch and eucalypt trees for use as poles, which, for preservation purposes, are being impregnated with creosote. The Department is purchasing some two thousand of the larch poles to determine whether the creosoting treatment will give them a satisfactory life under service conditions.

4—F. I.

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Business Residential Subscriber. Subscriber. (1) New Brighton, Heathcote Valley, Kedcliffs-- £ s. d. £ s. d. (a) Subscribers not more than two furlongs from the Christchurch 1 0 0 0 10 0 base-rate area boundary (b) Other subscribers .. .. .. .. 200 1 00 (2) Clifton, Sumner, and Lyttelton .. .. .. .. .. 300 1 10 0

F.—l.

BROADCASTING SERVICE. RADIO-RECEIVING LICENSES. Radio-receiving licenses continue to increase. At the 31st March the total for the Dominion was 345,710, an increase of 28,187, or B*B per cent, over the number in force a year ago. ABOLITION OF QUARTERLY RADIO LICENSES. As from the Ist March, 1940, a new system of licensing radio receiving-stations was introduced. The main feature of the new system is that every license issued requires to be for a period of either six months or twelve months from the first day of the month of issue, the fee being as previously, 12s. 6d. for six months or 255. for twelve months. Quarterly licenses, which were introduced during the depression period solely to meet the convenience of persons in poor financial circumstances, have therefore disappeared. ELIMINATION OP RADIO INTERFERENCE. The action taken by the Department has removed many of the sources of electrical interference with radio reception, but owing to the ever-increasing number of listeners and the growing popularity of electrical appliances the number of complaints of radio interference received from listeners has shown very little fluctuation, the figures for 1938-39 and 1939-40 being 2,634- and 2,726 respectively. RADIO-DEALERS' LICENSES. Radio-dealers' licenses in force at the 31st March numbered 1,128, a decrease of 131 as compared with the number current at the end of the previous year. PUBLICATION OF CERTAIN RADIO BROADCASTS. Following the outbreak of war, newspaper members of the United Press Association were given permission to publish news from overseas rebroadcast by New Zealand broadcasting-stations. In addition, morning newspapers were authorized to copy direct from Daventry news broadcast between midnight and the time the newspapers went to press. AMATEUR TRANSMITTING-STATIONS. Upon the outbreak of war it was decided to revoke, under the authority of Regulation 25 of the Radio Regulations 1932, all licenses in respect of amateur radio transmitting-stations, and to make it unlawful for any signals whatever to be transmitted from such stations.

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APPENDIX.

Table No. 1. Receipts and Payments for the Years 1881-82, 1891-92, 1901-2, 1911-12, 1921-22, and following Years.

Table No. 2. Table showing the Number and Amount of Money-orders issued and of Money-orders payable in New Zealand since the Year 1863. Issued in the Dominion.

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I I Other Disbursements. Balance of Payments for Receipts over Depreciation Fund nnntriwinna Payment to Year. I E™™? Receipts. Working- Working- Investment, : Tnt er P ston Consolidated Balance. cxpon8es ' P = KfflSf In S B ]frad - Payments. ture on officers'Sick- liability. of Assets J benefit Fuaa. 1881-1882 .. .. 234,529 233,291 1,238 .. .. .. .. * 1891-1892 .. .. 320,058 268,343 51,715 .. .. .. .. * 1901-1902 .. .. 488,573 465,756 22,817 .. .. .. .. * 1911-1912 .. .. 1,087,710 988,911 98,799 .. .. .. .. * 1921-1922 .. .. 2,811,535 2,451,571 359,964 .. .. .. .. t 1922-1923 .. .. 2,687,768 2,114,994 572,774 .. .. .. .. f 1923-1924 .. .. 2,688,954 2,120,584 568,370 .. .. .. .. t 1924-1925 .. .. 2,889,450 2,416,257 473,193 .. .. .. .. f 1925-1926 .. .. 3,100,396 2,409,556 690,840 .. .. .. .. f 1926-1927 .. .. 3,220,666 2,346,274 874,392 .. .. .. .. { 1927-1928 .. .. 3,329,511 2,299,571 1,029,940 .. .. .. .. t 1928-1929 .. .. 3,445,545 2,445,068 1,000,477 550,000 .. 428,000 .. 22,477} 1929-1930 .. 22,477 3,641,620 2,560,199 1,081,421 570,000 .. 481,000 .. 52,898 1930-1931 .. 52,898 3,707,420 2,642,400 1,065,020 558,248 .. 504,000 .. 55,670 1931 -1932 .. 55,670 3,715,230 2,164,538 .1,550,692 80,029 .. 550,000 941,6165} 34,717 1932-1933 .. 34,717 3,293,932 2,019,302 1,274,630 272,818 .. 546,000 456,000 34,529 1933-1934 .. 34,529 3,200,414 2,058,861 1,141,553 431,739 .. 553,000 154,388 36,955 1934-1935 .. 36,955 3,342,978 2,216,691 1,126,287 566,864 .. 546,000 13,000 37,378 1935-1936 .. 37,378 3,550,336 2,478,667 1,071,669 520,617 1,600|| 541,000 5,000 40,830 1936-1937 .. 40,830 3,886,098 2,868,486 1,017,612 442,274 5,665 566,000 3,298 41,205 1937-1938 .. 41,205 4,302,244 3,305,680 996,564 143,978 6,104 590,000 255,283 42,404 1938-1939 .. 42,405 4,687,564 3,679,859 1,007,705 415,189 6,310 588,000 Nil 40,611 1939-1940 .. 40,611 4,793,692 3,660,745 1,132,947 486,000 7,162 639,000 2,929 38,467 * Revenue paid to Consolidated Fund. t Revenue paid to Consolidated Fund and utilized in payment of working-expenses, interest on loan capital, and reduction of capital liability. I Post Office Account separated from Consolidated Fund, 1st April, 1928. § Section 4, Finance Act, 1931 (No. 2) ; Depreciation rates revised and adjustment made in amount paid to Consolidated Fund. || Section 26, Finance Act, 1935 (No. 2).

Where payable. Total. Year, mission In the Dominion. United Kingdom.* British Possessions' Forei f5 u Countries, t received. — No. Amount. No. Amount. No. Amount. No. Amount. No. Amount. £ £ £ £ £ £ 1863 1,057 2,201 9,614 4,740 21,944 4,645 24,145 .. .. 11,586 55,703 1873 3,562 34,288 142,642 11,913 48,548 6,150 28,068 .. .. 52,351 210,258 1883 9,023 132,232 402,559 26,211 91,634 14,113 46,940 .. .. 172,556 541,133 1893 10,249 146,133 576,359 29,616 86,545 35,208 88,025 .. .. 210,957 750,929 1903 15,882 273,535 1,108,067 63,309 157,790 59,468 150,368 .. .. 396,312 1,416,225 1913 16,872 516,536 2,821,624 100,634 336,992 73,575 199,158 .. .. 690,745 3,357,774 1923 28,357 545,605 3,849,423 54,461 223,143 68,044 284,778 16,869 32,815 684,979 4,390,159 1935 44,029 578,869 3,157,826 27,383 71,185 56,809 133,074 9,996 11,944 673,057 3,374,029 1936 48,433 633,846 3,552,632 30,608 79,747 59,269 151,708 10,243 10,561 733,966 3,794,648 1937 54,333 676,420 4,042,824 33,455 92,336 62,244 165,217 12,376 12,252 784,495 4,312,629 1938 60,441 731,346 4,501,244 35,642 102,005 68,072 184,508 12,990 14,536 848,050 4,802,293 1939 71,879 751,064 4,581,206 39,879 117,063 110,180 381,059 10,361 15,036 911,484 5,094,364 * Includes foreign offices to year 1913. t Included under United Kingdom to year 1913.

F.—l.

Table No. 2-continued. Table showing the Number and Amount of Money-orders issued, etc. —continued. Drawn on the Dominion.

Table No. 3. Table showing the Number and Weight of Parcels exchanged with other Countries during the Years 1938 and 1939.

Note. —With the countries named above, excepting those in parentheses, New Zealand has direct parcel exchanges. Parcels to and from other countries are forwarded through the intermediary of direct-exchange countries.

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"Where issued. : I Total. IP the Dominion. United Kingdom.* jTtlsh PosseLfon" (ffltt No. Amount. No. Amount. No. Amount. No. Amount. No. j Amount. £ £ £ £ £ 1863 2,067 9,169 415 1,824 558 3,078 .. .. 3,040 14,071 1873 34,288 142,642 1,482 6,626 1,668 7,689 .. .. 37,438 156,957 1883 132,232 402,559 3,725 15,553 5,697 23,300 .. .. 141,654 441,412 1893 146,133 576,359 8,746 32,617 10,679 40,929 .. .. 105,558 649,905 1903 273,535 1,108,067 13,035 49,181 17,777 68,340 .. .. 304,347 1,225,589 1913 516,536 2,821,624 12,693 70,084 31,450 110,487 .. .. 560,679 3,002,194 1923 545,605 3,849,423 11,042 63,313 26,042 123,703 1,813 8,669 584,502 4,045,108 1935 568,379 3,167.590 9,485 49,628 34,566 70,964 3,460 13,195 615,890 3,301,377 1936 633,937 3,561,548 9,025 45,043 25,523 72,338 3,806 9,750 672,291 3,688,679 1937 678,018 4,053,369 8,824 44,434 25,509 73,755 3,204 8,647 715,555 4,180,205 1938 732,967 4,495,648 9,347 55,577 25,734 76,166 2,151 6,156 770,199 4,633,547 1939 751,096 4,593,723 7,317 32,-233 22,852 57,196 2,822 6,637 784,087 4,689,789 * Includes foreign offices to year 1913. t Included under United Kingdom to year 1913.

Received. Despatched. Places. 1938. 1939. 1938. 1939. Number. Weight. Number. Weight. Number. Weight. Number.', Weight. _ lb. lb. lb. j lb. Great Britain and Northern 84,697 607,865 48,827 380,716 14,945 68,668 11,597 53,704 Ireland (and countries via London) New South Wales (including 40,872 190,834 28,186 127,704 12,923 44,61.1 11,934 39,795 Japan, Italy, &c.) Victoria .. .. .. 12,734 53,230 9,971 40,566 6,082 20,810 5,780 19,484 Queensland (including Papua 1,353 3,402 1,191 2,782 1,713 5,062 1,606 4,412 and Netherland East Indies) South Australia .. .. 852 2,538 814 2,448 878 2,749 791 2,523 Western Australia.. .. 499 1,271 562 1,448 733 2,105 686 1,820 Tasmania .. .. 171 418 140 340 584 1,588 551 1,475 Norfolk Island .. .. 7 16 18 49 304 835 286 '780 Canada .. .. .. 21,357 224,877 9,712 100,478 2,163 7,826 1,901 6,084 Union of South Africa .. 1,589 2,774 1,236 2,153 1,318 5,708 1,265 5 928 Aden .. .. .. 87 300 70 275 India .. .. .. 2,823 18,899 1,342 7,572 993 5,183 915 4 662 Ceylon .. .. .. 290 1,112 197 733 87 351 58 260 Malaya .. .. .. 678 2,326 604 1,893 359 1,122 307 1,071 Hong Kong (including Japan, 1,606 19,202 1,099 12,404 745 3,852 586 2,981 China, &c.) Fiji .. .. .. 490 1,718 433 1,563 1,727 8,751 1,660 8,576 Tonga .. .. .. 179 658 172 511 671 3,562 737 4,488 United States of America and 38,995 213,655 28,446 158,762 3,664 13,705 3,684 13,193 possessions Egypt .. .. .. 318 2,172 266 2,441 61 214 51 170 Tahiti .. . . .. 63 493 51 308 117 643 87 372 Uruguay .. .. .. .. .. .. 26 128 21 131 Gilbert and Ellico Islands .. 5 24 8 17 61 163 122 491 Pitcairn Island .. .. .. .. .. . . .. . . 115 568 Other countries with which 2 10 4 3 8 51 31 109 direct exchanges exist Totals .. .. 209,667 1,407,794 133,349 845,166 50,162 197,687 44,771 173,077

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Table No. 4. POST OFFICE SAVINGS-BANK.— GENERAL STATEMENT. Table showing the Business of the Post Office Savings-bank in the various Postal Districts of New Zealand during the Year ended 31st March, 1940.

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30 © © " " : — — ; ; o c C — .C Sg ® S3 §°S° Number Amount Number Average Number Number !fu ™ ber Total Amount Amount „ 01 Total Amnnnt nf ot Amount Excess of Excess of of of 4 , standing to the standing to Pn f 1 TV M f Deposits of Deposits Deposit With- Total Amount of of each Deposits over Withdrawals Interest Accounts Accounts Credit of all the Credit Postal Districts. o"iO , received received during received drawals Withdrawals Withdrawal Withdrawals over Deposits for the opened closed ," m ™: Open Accounts, of each gJc.g'S d ™ mg thc Period Airing d ™ ng during the Period. during during during Period. i during during Inclusive of Open Ac--a the = the the the Period. the Period. the the Interest to the . count at lomaiS PeiI0d - Period. Period. Period. Period. Period. Close of the Period. Close of £ i * j the Period. £ s. d. £ s. d.j j £ s. d. £ s. d. £ s. d. £ B . d. £ s. d. I £ g. d. £ s. d. Auckland .. .. 203 283,789 4,787,445 12 8 16 17 5 290,952j 5,518,006 19 3 18 19 3 .. 730,561 6 7 277,277 1 3 19,091 17,966 162,30910,088,260 1 9 62 3 1 Blenheim .. .. 17 15,745 249,302 18 4 15 16 8 16,338 288,366 8 4 17 13 0 .. 39,063 10 0 19,028 4 6 956 940 11,145 679,546 11 11 60 19 6 Christchurch.. .. 78 231,857 3,705,786 18 4 15 19 8 239,321 4,414,028 7 5 18 8 11 .. 708,241 9 1 255,463 3 7 10,564 9,825 136,211 9,211,934 5 6 67 12 7 Dunedin .. .. 84 102,670 1,778,482 17 3 17 6 5 110,251 2,296,712 3 9 20 16 8 .. 518,229 6 6 135,639 16 7 5,896 6,464 70,198 4,784,206 17 7 68 3 1 Gisborne .. .. 28 35,488 469,770 11 7 13 4 9 33,931 571,068 4 8 16 16 7 .. 101,297 13 1 34,365 18 4 2,098 2,319 23,819 1,236,698 2 1 51 18 5 Greymouth .. .. 30 22,294 327,113 17 8 14 13 5 19,584 402,737 18 10 20 11 3 .. 75,624 1 2 26,988 19 11 1,683 1,771 15,436 945,546 4 5 61 5 1 Hamilton .. .. 99 118,724 1,678,163 9 6 14 2 8 112,506 2,016,429 18 10 17 18 5 .. 338,266 9 4 94,645 5 0 9,009 8,346 71,257 3,441,441 8 1 48 5 11 Invercargill .. .. 45 30,760 436,483 6 2 14 3 10 32,628 640,309 10 8 19 12 6 .. 203,826 4 6 44,863 0 10 2,278 2,730 31,508 1,556,689 3 3 49 8 1 Napier .. .. 47 76,308 1,116,672 18 4 14 12 8 77,413 1,321,196 0 8 17 1 4 .. 204,523 2 4 71,747 15 6 4,632 4,320 45,905 2,607,926 6 ej 56 16 3 Nelson •• 33 30,258 477,178 16 2 15 15 5 30,755 559,774 17 4 18 4 0 .. 82,596 1 2 33,206 12 7 1,812 1,773 20,213 1,173,049 6 6' 58 0 8 New Plymouth .. 37 51,478 922,317 1 9 17 18 4 47,812 1,115,851 0 9 23 6 9 .. 193,533 19 0 55,241 0 10 3,954 4,164 35,537 2,005,731 3 2 56 8 10 Oamaru .. .. 12 14,440 301,928 18 10 20 18 2 16,017 370,781 14 8 23 3 0 .. 68,852 15 10 21,722 15 5 894 927 11,086 775,221 19 4 69 18 7 Palmerston North .. 36 83,372 1,269,187 1 3 15 4 6 82,277 1,566,701 1 8 19 0 10 .. 297 514 0 5 84,480 11 1 4,863 4,701 47,356 3,032,260 9 10 64 0 8 Thames 38 39 > 479 635,138 6 1 16 1 9 37,210 767,245 11 0 20 12 5 .. 132,107 4 11 38,485 9 8 3,357 3,220 30,024 1,393,628 19 3 46 8 4 Timaru .. .. 18 36,756 684,181 11 8 18 12 3 38,875 853,489 8 4 21 19 1 .. 169,307 16 8 51,150 14 9 2,132 2,190 26,172 1,819,761 9 0 69 10 7 Wanganui .. .. 41 54,864 871,612 10 11 15 17 9 53 321 1,033,723 5 9 19 7 9 .. 162,110 14 10 58,870 19 11 3,350 3,740 36,742 2,120,929 4 2 57 14 6 Wellington .. .. 65 432,803 5,268,285 14 9 12 3 5 352,964 5,511,667 14 1 15 12 4 .. 243,381 19 4 287,997 7 0 28,572 16,267 174,48810,695,594 16 10 61 6 0 Westport .. .. 20 8,772 126,109 7 6 14 7 6 7,025 159,301 19 5 22 13 6 .. 33,192 11 11 9,751 6 7 607 637 6,359 342,729 3 1 53 17 11 Western Samoa .. 2 3,601 29,848 8 0 8 5 9 3,854 38,885 11 8 10 1 10 .. 9,037 3 8: 1,692 4 l| 424 240 2,795 61,503 3 11 22 0 1 Rarotonga .. .. 6 1;706 16,276 13 8 9 10 10 2,546 16,560 5 6 6 10 1 .. 283 11 10 848 6 0 224 113 2,005 29,343 12 1 14 12 9 Totals for year ended 939 1,675,164 25,151,287 0 5 15 0 31,605,580 29,462,838 2 7 18 7 0 .. 4,311,551 2 21,603,466 13 5106,396192,653 960,565 58 00" 002 8 3 60 7 8 31st March, 1940 j 1 t ' Totals for year ended 933 2,104,936 30,434,291 15 5 14 9 21,694,69234,597,708 6 4 20 8 4 .. 4,163,416 10 111,726,573 11 2118, 865' 92,848 946 822 60 710 086 17 0 61 ' 4 31st March, 1939 I j

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Table No. 5. POST OFFICE SAVINGS-BANK.— GENERAL STATEMENT. Table showing the Business of the Post Office Savings-bank in New Zealand, by Ten-year Periods, from 1868 to the 31st December, 1928, and Yearly Periods from 1935 to the Year ended 31st March, 1940.

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j i Ml Average Number of , Number Number ftu ™ Der Total Amount Amount Branches n + aveidge vr„w»v.«« Average of of * 4. standing to the standingto of the Post mber of Total Amount of Wi?h Total Amount of Amount of Excess of Excess of Accounts Accounts Credit of all the Credit Office Deposits f T)pT,oqit=i each of With- iotal Amount 01 eac h With- Deposits over Withdrawals Interest for nnpned plowed remain- Ooen Account* of each Year. Savines- received received during Deposit drawa.s S\ ithdrairals drawal Withdrawals over Deposits the Year. during duvinc ln S °P en inclusive of ' i Open bank open SX toS during the Yeai. a iDg duri ng the Year, during the Year. d ™ n » <™ i »*«3«e Iuterest to the ! Accent at at the Close tbeYea1 ' Yefr the Year. Tear. Year. ° f 6 Close of the Year. Close of of the Year. - j ' the Year. I ' — : — £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. _ £ s. d.j £ s. d. Year ended 31st Mar., 939 1,675,16425,151,287 0 5 15 0 31,605,58029,462,838 2 7 18 7 0 .. 4,311,551 2 21,603,466 13 5106,396 92,653 960,565 58,002,002 8 3 60 7 8 31st Mar., 933 2,104,936 30,434,291 15 5 14 9 21,694,692 34,597,708 6 4 20 8 4 .. 4,163,416 10 111,726,573 11 2118,865 92,848 946,822 60,710,086 17 0 64 2 4 Year ended 31st Mar., 928 2,190,97133,041,081 14 3 15 1 71,622,340 29,629,073 19 3 18 5 33,412,007 15 0 .. 1,669,383 16 5128,927 88,979 920,805|63, 146,929 16 9 68 11 6 1 i ! Year ended 31st Mar., 912 1,940,436 30,676,969 3 6 15 16 21,493,580 27,042,003 0 0 18 2 13,634,966 3 6 .. 1,514,219 16 11119,339 79,153 880,857|58,065,538 5 4 65 18 5 1 I I Year ended 31st Mar., 892 1,585,97625,619,775 13 7 16 3 1 1,417,04023,533,596 7 2 16 12 22,086,179 6 5 .. 1,406,459 5 8 94,628 71,574: 840,671:52,916,352 4 11 62 18 11 Yeafended 31st Mar., 871 1,424,53424,179,537 2 4 16 19 11,350,50220,946,562 0 3 15 2 93,232,975 2 1 .. 1,320,347 7 9 90,958 71,603 817,617:49,423,713 12 10 60 8 11 31st Mar., 870 1,570,493 27,611,066 5 1 17 11 71,274,906 30,584,997 14 4 23 19 10 .. 2,973,931 9 31,747,155 13 9 93,331 72,433 804,725 47,758,726 2 11 59 6 11 1Q9C Totals for 1918 .. 786 1,213,35318,101,104 18 1 14 18 4 727,729 14,938,841 10 0 20 10 7 3,162,263 8 1 .. 1,059,471 17 8 76,869 53,015 590,205 33,418,125 4 9 56 12 5 1908 .. 593 706,101 9,674,075 4 0 13 14 0 484,672 9,417,820 10 3 19 8 8 256,254 13 9 .. 379,808 6 7 80,133 57,829 342,077 12,159,293 18 1 35 10 11 18g8 _ 409 281,749 3,279,611 7 5 11 12 10 196,764 3,194,893 16 7 16 4 9 84,717 10 10 .. 128,128 16 6 37,265 26,628 169,968 4,957,771 5 5 29 3 5 jggg 290 145,355 1,544,747 7 11 10 12 6 96,204 1,387,471 1 10 14 8 5 157,276 6 1 .. 78,080 6 0 21,307 16,543 84,488 2,048,441 10 9 24 4 10 1878 .. 147 69,908 762,084 12 0 10 18 0 42,746 742,053 14 3 17 7 2 20,030 17 9 .. 31,664 12 9 13,005 9,634 32,132 819,071 8 2 25 9 9 1868 55 13,014 194,535 11 6 14 18 11 6,385 107,094 17 3 16 16 6 87.440 14 3 .. 4,880 7 3 3,282 1,186 4,252 163,518 15 7 38 9 1 *Totals from 1st Feb. to 46 6,977 96,372 7 10 13 16 3 1,919 26,415 18 9 13 15 - 3 69,956 9 1 .. 1,241 5 0 2,520 364 2,156 71,197 14 1 33 0 5 31st Dee., 1867 i - - 't ."j * The Post Office Savings-bank was established in the Dominion in February, 1867.

F.—l.

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Table No. 6. Table showing the Number of Paid Telegrams forwarded and the Revenue derived therefrom, the Number and Classification of Telephone- stations and the Revenue derived therefrom, the Number of Forwarded Toll Calls and the Revenue derived therefrom, and the Number of Radioreceiving Licenses.

Paid Telegraph Traffic. Telephone Service. Toll Service. Lkenses^ 1^ I U : Ordinary. Press. : Service Phones and Year ended 31st March, ! Revenue dumber °f Number of Total Telephones Hmnber Percentage from Phones r , ol1 Toll Telephone- P of Value. Number. Tr n „^ hA , Stations all Classes , \ j ,n Call Stations; «d-itirvn« rail"? Households Humber. Value.* Number. Value, (a). (6). (a) and (6). offices. Stations. stations. p opulat .5 on Oaks. equipped. Telephoneoffices. I I £ £ £ £ 1900 .. .. 2,706,439 ! 98,129 255,362 10,771 6,641 f 43,303 165t f 344 7,150 9-0 197,292 5,483 1910 .. .. 5,387,575 ! 171,710 418,942 21,979 22,244 4.469 144,298 312J f 2,656 29,681 28-67 1,757,869 42,753 1920 .. .. 7.880,737 ! 360,051 358,352 32,258 64,396 12,520 419,318 1,1941 f 2,613 80,723 65-27 6,718.526 211,911 1925 .. .. 6,336,103 341,107 461,875 63,601 94,371 16,916 867,218 6,119 380 2,311 120,097 87-26 8,612,412 344,393 4,702 f 1930 .. .. 6,318,644 328,795 580.867 76,809 126,763 25,635 1,206,714 6.140 679 2,106 161,323 108-37 11,404.175 482,571 53,407 f 1935 .. .. 3,685,859 226.162 490,070 53,962 121,841 28,663 1,190,773 5,869 796 2,001 159.170 102-06 9,862.627 448,563 152,808 44-5 1936 .. .. 4,102,168 237,370 463,842 51,405 127,056 30,598 1,252,964 6,041 870 2,000 166,565 105-85 11,436.054 499,825 192,265 55-7 1937 .. .. 4,657,942 259,237 459,556 53,833 135,853 33,838 1,338,958 5,965 917 2,026 178,599 112-52 13,143.171 562,544 241,308 68-4 1938 .. .. 5,003,761 267,382 449,876 52,993 145,370 37,689 1,458,042 5,912 1,021 2,027 192,019 119-67 14,480,207 637,807 285,007 77-6 1939 .. .. 5,249,282 284,912 462,805 56,575 155,038 42,001 1,557,327 6,071 1,103 2,003 206,216 126-92 15,566,998 695,731 317,523 84-2 1940 .. .. 4,859,882 298,304 389,690 55,081 162,508 45,883 1,633,191 6,243 1,231 2,004 217,869 132-69 15,711,671 786,143 345,710 89-3 * Excludes amount paid to other Administrations in respect of cable and radio messages. t Figures not available. J Private-line figures not available.

F.—l.

Table No. 7. Table showing the Estimated Number of Postal Articles posted and delivered in New Zealand during the Year ended 31st December, 1939.

Table No. 8. Table showing Cable, Radio-telegraph, and Radio-telephone Business transacted during the Year ended 31st March, 1940, as compared with the Year ended 31st March, 1939. Cable Messages.

Radio-telegrams.

Radio-telephone Calls.

Approximate Cost of Paper.—Preparation, not given : printing (737 copies), £47 10s.

By Authority: E. Y. Paul, Government Printer, Wellington.—l94o. Price Od.]

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Post-cards. Ac 1 *™' Newspapers. Parcels. Posted .. .. 154,819,534 3,767,507 105,237,805 19,068,818 4,663,379 Delivered .. .. 157,784,041 4,743,450 113,913,107 22,669,294 4,809,995 Total.. .. 312,603,575 8,510,957 219,150,912 41,738,112 9,473,374

International. Australian. Total. Forwarded. Received. Forwarded. Received. Year ended 1 Revenue Revenue Revenue Revenue Revenue Number of earned Number of earned Number of earned Number of earned Number of earned Messages, by New Messages, by New Messages, by New Messages, by New Messages, by NewZealand. Zealand. Zealand. Zealand. Zealand. £ i £ £ £ £ 31st March, 1940 .. 179,685 9,433 155,242 8,168 137,449 5,005 128,860 4,891 601,236 | 27,497 31st March, 1939 .. 181,087 17,781 155,058 I 6,333 163,650 4,929 160,555 5,011 660,350 | 24,054 Pkess Messages (included in above totals). 31st March, 1940 .. 1,475 167 i 5,687 1 648 1 5,357 [ 717 7,641 896 | .20,160; 2,428 31st March, 1939 .. 1,792 142 [ 3,543 289 5,286 681 7,260 845 17,881. 1,957

Forwarded. Received. Total. Year ended Number Revenue Number Revenue Number Revenue of earned by of earned by of earned by Messages. New Zealand. Messages. New Zealand. Messages. New Zealand. £ ! £ £ 31st March, 1940* .. .. 8,843 3,113 15,694 2,717 24,537 i 5,830 31st March, 1939 .. .. 14,749 3,384 27,263 4,266 42,012 7,650

Outward. Inward. Total. Period j Number of Kevenue earned Number of Revenue earned Number of ! Revenue earned Calls. by New Zealand. Calls. by New Zealand. Calls. j by New Zealand. £ £ £ 31st March, 1940* .. .. .. 729 558 689 550 1,418 1,108 31st March, 1939 .. .. .. 1,676 1,466 1,781 1,432 3,457 2,898 * Radio services restricted under war conditions.