D.—No. 1 c

to create and maintain a healthy and buoyant state of commercial enterprise. The invaluable aid, such a powerful agent as the Electric Telegraph will render the General Government of the colony, is of itself an overwhelming argument in favour of vigorously prosecuting the works. I feel convinced that few words are necessary from me on this subject, and that the Government will be as fully alive to the advantages, here to be derived, or to be denied, to the colony as I am myself: I have therefore only to hope that the works will be allowed to continne, at least at the same rate as at present, ami with as much greater expedition as circumstances will admit. Having hizarded these few remarks as a means of preparing the way, I can now with cjnfidence pass on to offer a few suggestions, as to the future working and requirements of the line. The Working of the Line. —ln entering upon the subject of the working of the line, I consider it advisable to propose four courses, the details of which wi 1 be found, in Apendix BC and DE. The adoption of any one of these courses, must however depend on the object the Government will chiefly have in view, in opening up Telegraphic communication. These two objects will be, first, general utility to the community at large in its widest form, and regardless of profit in the shape of revenue ; and secondly the establishment of a reproductive system, which will satisfy the barest necessities of the Government, and the highest order of commerce, such as the Merchant and Banker ; keeping in view the most vigorous economy. The first ohject will be attained by the adoption of attached scheme (Appendix B). Should this be considered two comprehensive, I will attach a more modified form (Appendix G) Either of these schemes would I conceive secure the first object of general utility. The second object would be secured in its full vigour by the scheme I have drawn out and attached. ( Appendix D), should this however be considered not sufficiently comprehensive, I compile and attach a safe and more amplified scheme. (Appendix E). Either of these latter schemes would meet the strict requirements of the colony, and satisfy the claims of economy. The estimated receipts of stations will be found apart, (Appendix F), and so arranged as easily to be applied to the various schemes ahove proposed for consideration. These estimates I may remark are on a very low scale, and may be considered to be well within the mark. Before closing this report, I would urge the importance, of taking as far as possible and justifiable, the whole of the lines of Telegraph in the colony into the hands of the General Government, and working them under one management. I feel quite certain that by this means the public would be better served, and useless expenditure would be avoided. I have, &c, Alfred Sheath. Telegraphic Engineer. The Hon. the Postmaster-General.

Appendix. A. Total Cost of the Bluff Line, including Erection, Material, and Expenses. £ s. d. Amount of Contract ... ... ... ... ... 316 16 6 Cost of Posts ... ... ... ... ... 372 4 0 <'cist of Insulators ... ... ... ... ... 27 18 6 Cost of Wire ... ... ... ... ... 04 4 o Travelling Expenses ... ... ... ... ... 15 0 0 Labour ... ... ... .. ... ... 2 0 0 Cartage ... ... ... ... ... ... y 0 0 Freight on Wire and [nsulatort —4 tons at 50s. ... ... 10 0 0 Insurance on same at Uos. per cent. ... ... ... 1 12 G £812 15 6 Alfred Sheath.

Appendix B. Estimate of the Expenditure required for the establishment of sixteen stations in localities where Telegraphic communication is considered generally useful. This list contains Stations that may scarcely in all cases be considered remunerative, bat will be of utility to the public, and might justify a supplementary vote. Under the charges of the Head Office are included the Salaries of Chief Olficers and Assistants connected with the general administration of the Department; such as construction, maintenance, and general management.

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TELEGRAPHIC ENGINEER.