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accommodation. If they do, we shall shut the door and lock it till they give us the amount that will enable us to carry on the traffic with a fair profit. I think you will approve of that poliev. (Applause.) lam perfectly satisfied that if you do the public of Australia and of New Zealand will not tolerate a suspension of traffic for one week, but will force Sir Julius Vogel's hand, if it does not force him from power. lam sure you will give us your approval of putting up the tariffs, and they will remain up until we get such a satisfactory arrangement as a company of this importance, dealing with such interests, is entitled to at the hands not only of New Zealand but from every Government in Europe. We have had that consideration, and we shall insist on maintaining the dignity and position of this company by not being trodden on by the Government of New Zealand. Gentlemen, I have spoken strongly and warmly ; but I think it just as well that these remarks should go abroad strengthened by the approval of the shareholders whom I am now addressing. With these remarks I beg to move, That the report and accounts now submitted be received and adopted.

No. 155. [Extract from the Times, 3rd November, 1880.] We are requested to publish the following communication with reference to the relations of the New Zealand Government with, the Eastern Extension Australasia and China Telegraph Company : —• "The Eastern Extension Australasia and China Telegraph Company (Limited), 50, Winchester House, Old Broad Street, E.C., 2nd November, 1886. " Sin, —As the dispute between the New Zealand Government and the Eastern Extension Company, to which reference was made by the chairman at the company's general meeting last week, is engaging considerable attention in the Australasian Colonies and elsewhere, and as telegraphic communication is now so universally used, it may interest many of your readers to know the facts of the case. I am therefore directed by the chairman to send you the following outline :— "lij consequence of the serious inconvenience felt by the Government and public of New Zealand from the want of telegraphic communication with Australia and the rest of the world, an arrangement was made with my company in 1875 for the laying of a submarine cable from Sydney to Nelson, in consideration of the payment to the company of an annual subsidy for ten years of £5,000 from New Zealand, and £2,500 from New South Wales. " The cable was laid and opened for public use in February, 1876, and from that day to this has never been interrupted. " In November, 1884, the company, finding that the earnings of the cable without the subsidy after nine years' working were insufficient, when working expenses and amortization for renewing the line were deducted, to give more than a return of 2 per cent, upon the capital invested, opened negotiations with the Governments with a view to the renewal of the subsidy on its expiration in February, 1886. " The New Zealand Government at first replied that the subsidy was no longer necessary ; but the New South Wales Government expressed their willingness to renew their share of the subsidy for a further term of ten years upon the company undertaking to reduce the tariff for intercolonial telegrams over the New Zealand cable from 6s. per ten words to ss. for ordinary messages, and 3d. per word for Press messages. The proposal was accepted by the company, and submitted by the New Zealand Government to their Parliament; but the latter negatived it, and would only agree to five years' renewal. "Thereupon the company intimated that they would accept the shorter period, but, as they considered the bargain under the circumstances a hard one, they could only give the reductions of tariff proposed by the New South Wales Government, provided the subsidy was renewed for the whole ten years. " Subsequently the company submitted to the New Zealand and other Australasian Governments proposals, based on the principle of guaranteeing the average earnings of the company for the past three years, for giving the colonies full control over the tariffs between Australia and Europe, by making the rates any figure they pleased, and offered to accept the terms sanctioned by the New Zealand Parliament, if the guarantee principle was applied to the New Zealand cable. " This and all other proposals made by the company for bringing about an amicable arrangement having been refused, and an offer to refer the question to arbitration having also been rejected, the company have been reluctantly compelled to increase the tariff for intercolonial telegrams between Sydney and Nelson to 10s. per ten words from the Ist instant, in order to recoup the loss of the subsidy. " The company have delayed taking this step for over eight months in the hope that the necessity for it might be averted; but, having exhausted all conciliatory means of bringing about a satisfactory solution, the responsibility for the inconvenience caused to the public must rest with the New Zealand Government, and not with the company. " At one time the New Zealand Government threatened, if the tariff was raised, to withdraw the office-accommodation which they are bound to give to the company for ten years after the expiration of the subsidy ; but the company intimated that such action might compel them to close the cable and hold the Government responsible for damages, and the Government have not so far carried out their threats. " The Now Zealand Government now notify that their terminal rate of 6d. per ten words has been raised to 4s. 6d., and this amount the company are obliged to collect from the telegraphing public of Australia and add to their cable tariff, making the total rate for messages from the coast of Australia to New Zealand 14s. 6d. per ten words, against 10s. 6d. on telegrams from New Zealand to Australia.