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214. They do not take the trouble to condense ? —lt arises from the system. 215. So far, then, the system works badly ?—Tes. 216. Then the only advantage, as I understand you to say, is that it works cheaply ? —Tes, I believe it is cheap if distributed amongst the papers of the colony, but as it is distributed it is not particularly cheap. 217. How many papers have you connected with the Press Agency's special wire ? —So far I know of only two papers which contribute towards tho cost. 218. Have they any subsidiary agreements ? —They have ; but it is no assistance towards paying the cost of the special wire. 219. Tou say you have only two papers contributing towards the special wire, which would involve an expenditure of £1,000 each ; do they get relieved of any portion of that ? —No. 220. Do they supply any other papers with news ? —The tress may to the extent of £50, but that is all I know of. 221. Can you give us any scheme by which the present difficulties may be remedied ?—The special wire would not remedy them unless it were kept open night and day. The simplest way would be to return to the old arrangement, by which all the papers got their messages through. 222. And you think the old arrangement was a better one than the special wire? —Tes, I do. 223. Tou mean the system before the special wire commenced in January last ?—Tes. It is known as the ls.-per-100-words system. After 5 o'clock you could lodge whatever was necessary for Press purposes, and if the office could transmit it the department would do so if it took them up to 8 o'clock next morning. The charge was Is. 3d. for the first 100 words, and Is. for every succeeding 100 words. 224. Mr. McLean.] How many papers are connected with your Agency that bear a share of the cost ?—The special wire and ordinary wire are different. I could not tell you precisely without reference. The number is about twenty-five. The newspapers are pretty equally divided between the two agencies, and all, with the exception of two of these, contribute towards the expenses of agents. There is so much charged to each paper by way of subscription. 225. What tw ro papers pay the cost of the special wire used by the Press Agency?— The amount is £2,000, for which the Canterbury Press is responsible, but they recover something of it. 226. So that the two newspapers practically bear the whole cost of the special wire ?—Tes ; and it practically devolves on the Canterbury Press. 227. Have you endeavoured to get any papers to contribute towards the expense? —Tes ; I have endeavoured to induce several papers to give up the Press Association and rejoin the Agency ; and I have reason to believe that at least three would come back if they could cancel the agreement under which they are bound to the Association ; but the agreement is such a binding one that they do not like to risk the expense of a lawsuit. I could give you a copy of their agreement, which I have in manuscript, but I have not brought it with me. 228. Then these two newspapers are compelled to pay the £2,000 for a special wire, in order to get the same advantages as the Press Association ? —Tes ; in order that they may be placed on an equal footing with the papers connected with tho Press Association as regards telegrams. 229. Suppose you did not use the special wire for your telegrams, up to what hour could you lodge telegrams for transmission ? —Up to 10 o'clock at night. 230. How long can the Press Association use the special wire ? —Up to 2 o'clock. 231. Therefore, if you did not use the special wire, you could send no news after 10 o'clock, while the Press Association could transmit up to 2 a.m., and thus those two papers have to pay £2,000 to be placed on an equal footing ? —Unless in special cases ; we could not do it as a general thing. 232. Then, suppose you did not use the special wire, you would require, in order to put you on an equal footing with the Press Association, that the department should receive your messages after 10 p.m. up to 2 o'clock in the morning ? —I should require that to be on an equal footing with them. 233. Therefore do you not think that these two newspapers are unfairly handicapped by the existing arrangements?—l do not say that it is unfair, but they are handicapped out of all proportion to any other newspaper in the colony. 234. Tou say that this special wire encourages the sending of a lot of rubbish over the wires ?— It has a tendency to demoralize the agents as to the quality of news they send. Under the system it is almost impossible to induce agents to take trouble in eliminating rubbish from the news they lodge for transmission, and the consequence is that a large amount of it is sent. 235. Mr. Stevens.] Are you aware that the second special wire was given to the Press Agency at the same time as the other was ?—So far as I am aware the Press Agency did not succeed in getting a special wire from the Government until some time after it was granted or promised to the Press Association. 236. Are you aware whether or not in consequence of that the Press Association succeeded in obtaining customers for their wire which they would not otherwise have got?—l could not prove anything of the kind; but I have every reason to believe that, owing to the promises they got from the Government, they were able to make such representations as induced many papers to join them. 237. Tou believe that the action of the Government gave the Press Association a basis upon which to work?—l believe so. 235. A basis of a preferential kind ?—Tes; I always thought it was an unfair thing that such an arrangement should have been made without our having an equal chance. I thought that rather hard of the Government and the officers of the department. 239. What do you think would be the best arraugement for supplying the newspapers with telegrams ? Do you think the continuance of a special wire is necessary ?-—My private opinion is that it is not. From my own experience I should say that the most equitable plan would be to keep the offices open until midnight. 240. Would you not require something later ? —-We might, occasionally ; but, as a rule, very little news went after 10 or 11 o'clock at night before the special-wire system. On rare occasions there might be a fire, a disturbance, or a riot occurring late, which we desired to send ; but it is very seldom that anything of importance occurs after midnight.

Mr. McCarthy.

August 6, 1879.