1.—7.

1883. NEW ZEALAND.

TELEPHONE SYSTEM COMMITTEE (REPORT OF THE).

Beport brought up 9th August, 1883, and ordered to be printed.

ORDERS OF REFERENCE. Extracts from the Journals of the House of Representatives. Wednesday, the 27th Day of June, 1883. Ordered, "That the Hon. Mr. Dick, Mr. Pyke, Mr. J. Green, Mr. H. Thomson, Mr. Barron, Mr. C. J. Johnston, Mr. Peacock Mr. Hurst, and Mr. Fish, be appointed a Committee for the purpose of inquiring into the telephone system now in operation in New Zealand, with the view of increasing its advantages to the public ; with power to call for persons and papers ; three to be a quorum. To report in three weeks."—(Mr. Hurst.)

Friday, the 13th Day op July, 1883. Ordered, " That the Telephone System Committee have leave to postpone making their report for three weeks."— (Mr. Hurst.)

Tuesday, the 7th Day op August, 1883. Ordered, " That a further extension of time for fourteen days be granted to the Telephone System Committee for making their report."— (Mr. Hurst.)

E E P O E T. The Select Committee appointed for the purpose of inquiring into the telephone system now in operation in New Zealand have the honour to report that they have this day come to the following resolutions :—■ Resolved, That the Government be recommended to make the charge to all subscribers, till further notice, at the rate of £12 for the first year, and thereafter £10 per annum ; but that those who have been paying at the rate of £17 10s. per annum shall be charged, at the coming into operation of the new tariff in the year following, £6 10s. for the first year, and thereafter £10 per annum; and to those who have been paying this for less than one year, then a proportionate difference at above rate shall be allowed. W. J. Huest, Chairman.

MINUTES OF EVIDENCE.

Thursday, 19th July, 1883 (Mr. Hukst, Chairman). Dr. Lemon, examined. 1. The Chairman.] You are Superintendent of Telegraphs ? —Yes. 2. You have prepared a return, which has been laid on the table of the House, relative to the cost of the telephone system ?—Yes. 3. I see by it that there was a total of 514 subscribers on the 31st of May?— Yes. 4. Can you state how many have joined since ?—Yes; the total number of connections made and subscriptions paid up to yesterday was 595. 5. You put down £10 as the cost of each instrument, I see?— That is our selling price to the public. We have virtually a monopoly of the sale of telephones in New Zealand, and that is what we are charging. If you were'^o buy them in Melbourne you might possibly get them for 10s. less, but you would have .to take the risk of examining and seeing that they were all right. 6. The company "who sell them to you do not guarantee them all right?—No; we have to overhaul every one and see that it is in order before it is sent out. 7. What proportion do you find out of order? —They all want adjusting or cleaning, more or less. We treat them all as being out of order when we get them. I—l. 7.