E.—No. 5.

As we experience great difficulty in filling up vacancies when they occur, owing to there being no supernumeraries on the staff, I would propose as a precautionary measure that the clerks at the Chief Post Offices throughout the Colony be instructed in the art of telegraphy, so that they might be able not only to take appointments in the Telegraph Department when required, but in order that future Postmasters may be enabled to perform the duties of telegraphists in connection with their other offices. Changes in the Tariff Rates, and Hours of Business. Owing to certain representations made to me by merchants and others using the telegraph, I was induced to propose a new tariff, which, as far as I have been able to learn from those most frequently using it, has given satisfaction. The extending of the hours of business has also given great satisfaction, and will prove in most cases a great advantage to the Department. Some of the minor stations might, however, have the hours of business curtailed, and placed on the original footing without injury to the public service, and with advantage to the Department. I should, therefore,-propose making the hours of business at the following stations the same as those of the post offices, namely, from 9 a.m. till 5 p.m. These stations are Tokomairiro, Oaniaru, Timaru, Heathcote, Kaiapoi, and Piction, and this change will reduce the salary expenditure of the Department by £250, the amount of salary necessary for five extra messengers required by the long hours, an outlay not at all commensurate with the advantages to be derived. Alfeed Sheath, Wellington, 16th July, 1566. Telegraphic Engineer.

Appendix A. RETURNS showing the ITEMS of EXPENDITURE on account of LINE WORKS, for the Year ended 30th June, 1866.

Appendix B. RETURN of BUSINESS TRANSACTED at each STATION of the ELECTRIC TELEGRAPH DEPARTMENT, for the Year ended 30th June, 1866.

7

DEPARTMENT OF NEW ZEALAND.

Erection, of Works. travelling expenses Carriage and freight Salaries and labour Contingencies ... £ s. cl. ... 308 19 4 ... 2,101 19 10 ... 3,230 4 1 ... 337 9 9 Total ... £6,278 13 0 Maintenance and Bcpairs of Lines. expenses Carriage and freight ialaries and labour Contingencies 789 4 3 ... 301 IS 1 ... 772 15 0 ... 579 5 7 Total ... £2,443 2 11 'urchase of Port Lyttelton Line ... £560 0 0 Alfred Sheath, Telegraphic Engineer.

Station. Xo.TeleO. T. Phess. P. G. G. G. Totals. GKAMS. Bluff Invercargill Tokomairiro Dunedin ... Oamaru ... Timaru Christchurch Ly ttelton... Heathcote Kaiapoi (opened in January) Blenheim (opened in June) Picton Nelson (opened in April) 1,863 2,571 314 6,795 1,897 1,140 6,746 4,269 117 318 £ s. d. 176 3 11 499 7 11 30 1 5 1,475 5 8 353 3 3 207 19 3 1,159 0 1 505 11 8 10 8 6 31 18 8 £ s. d. 236 11 3 20 9 9 0 13 6 153 1 7 3 2 11 0 13 6 107 8 8 13 2 2 £ s. (1. 13 6 10 68 14 7 0 19 10 54 3 11 4 13 4 22 10 0 113 0 0 81 17 7 7 5 8 12 4 £ s. d. 45 6 5 44 1 3 1 9 10 128 4 10 7 16 2 32 16 0 110 18 4 91 19 2 £ s. d. 471 8 5 632 13 6 33 4 7 1,792 16 0 368 15 8 263 18 9 1,490 7 2 642 10 7 17 14 2 33 7 10 0 6 10 86 13 14 10 0 13 6 0 12 4 15 0 8 303 818 58 1 0 177 3 6 27 17 6 Oil 0 10 8 2 9 8 10 68 4 2 215 0 10 Totals 27,237 4,679 19 8 563 0 11 318 18 7 483 3 • ) 6,045 a 4 Alfred Sheath, Telegraphic in ■ineer.