31

F.—2

" The New Zealand Government also intimate that they will not collect more than 6s. for the cable charge on telegrams emanating from New Zealand, but will apply their increased terminal rate on telegrams to New Zealand in payment of the increased cable charge, and thus relieve the New Zealand public at the expense of the telegraphing public of the other colonies. " The company cannot, however, believe that the public will for any length of time allow this regretable state of things to continue, and, as some of the leading Australian Governments and Chambers of Commerce in Australia and New Zealand are supporting the company's action, we are hopeful that before long an arrangement satisfactory to all parties will be arrived at. "I enclose a copy of the whole correspondence on the subject, and would invite your special attention to the last telegram, giving a summary of an article in the Melbourne Argus on the subject, which shows how the question is viewed in Australia. " I have, &c, "F. E. Hesse, Secretary."

No. 156. The Supebintendent, E.E., A., and C.T. Company, to the Postmasteb-Geneeal, Waiwera. (Telegram.) 25th January, 1887. I am directed to forward you the following telegram from the Chairman of the Eastern Extension Telegraph Company: — " London, 22nd January.—ln view of approaching Imperial Conference, I forwarded to you on 23rd ultimo an official letter fully dealing with questions of telegraphic communication and cheapening the traffic ; also a memo, relative to Pacific cable scheme ; and regret that they will not arrive before delegates leave. Following is an extract from the letter referring to reduced tariffs, and will, I think, give you all the information required with regard to the question of change of tariffs which has for some time past engaged the attention of the colonies : ' There is no doubt that the existing charges are an obstacle to the general use of the telegraphs. The Eastern Extension Company and its allied companies cannot, however, be reasonably asked to run the risks which a larger reduction would involve, seeing that theirs is a commercial enterprise, and that, after fifteen years' working, they are only enabled to give a moderate return to their shareholders. They have already considerably cheapened telegraphy by reducing the original rate of £9 9s. for twenty words to a word-rate of 9s. 4d. for public messages and 2s. Bd. for the Press, which, for the distance traversed, is one of the lowest Press-rates on record. The latter reduction the companies had long striven to bring about, and only lately able, after patient and persistent efforts, to overcome the opposition to it by certain governmental administrations. They have, moreover, shown in every possible way their desire to further reduce the tariff, and, amongst other propositions submitted to your Government, the Eastern Extension Company has, subject to the assent and co-operation of the other interested administrations, offered to make the rate any figure acceptable to the colonies down to the limit of their sub-payments at present —2s. 4d. per word —provided the average receipts for the last three years are guaranteed to them by the colonies. The acceptance of the offer would, of course, reduce the company's risk to minimum so far as the traffic is concerned, but their responsibility of maintaining an efficient service would remain unchanged. On the other hand, it would give the colonial Governments full control over the tariff, and enable them to establish a cheaper rate and on more favourable conditions than could be obtained in any other way. If the tariff were reduced to 4s. per word and 100 per cent, increase of traffic took place, the amount of guarantee required would be about £55,000, which, based on the 1884 census and spread over all the colonies, would be : From Victoria, £16,353 ; New South Wales, £15,672; New Zealand, £9,599 ; South Australia, £5,321; Queensland, £5,274 ; Tasmania, £2,221; Western Australia, £560 : total, £55,000.' As I am anxious you should have fullest information, have instructed company's agent to accept from you and transmit as service messages all telegrams you may wish to forward to the company bearing upon this particular question." W. Wabeen, Superintendent, E.E., A., and C.T. Company. The Hon. the Postmaster-General, Waiwera.

No. 157. Postmasteb-Geneeal, New Zealand, to the Postmasteb-Geneeal, New South Wales. Sib, — Waiwera, New Zealand, 20th January, 1887. I have the honour to forward to you a copy of a letter I have addressed to the PostmasterGeneral of Victoria, I regret that the various telegrams and communications are not yet fully printed and ready for issue, otherwise I would have sent you a copy. I will do so as soon as I can. Meanwhile I think it right I should mention that, amongst the printed telegrams handed by Mr. Pender to our Agent-General, is the one set forth at the foot of this letter. The telegram to which it refers was forwarded to me a day before it appears to have been forwarded to the Eastern Extension Company. It seems to me so surprising that an officer's memorandum to his Minister should be published in this way, that I think it right I should inform you of it without delay. It appears to me, in view of the possible renewal of further correspondence with the Extension Company, that it might be desirable that a code should be established between the Postmaster-General of your colony and ours. I have, &c, The Hon. the Postmaster-General, New South Wales. Julius Vogel.