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F.—B

No. 33. The Seceetaby, General Post Office, Wellington, to the Postmasteb-Geneeal, Adelaide. (Telegram.) Wellington, Ist May, 1900. We have adopted following rates :To New South Wales, fivepence; Queensland, Victoria, South Australia, sixpence; Tasmania, eightpence ; and Western Australia, sevenpence per word. Our proportion one penny a word. Money-order telegrams also charged word-rate.

No. 34. The Deput? Postmastee-Genebal, Melbourne, to the Seceetaby, General Post Office, Wellington. (Telegram.) Melbourne, 2nd May, 1900. This Administration approved one penny per word local rate New Zealand telegrams lieu present minimum sixpence for ten words. Order in Council give effect probably obtained week's time.

No. 35. The Seceetaby, General Post Office, Wellington, to the Manages in Austealasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 2nd May, 1900. Cable-eates : We have fixed a word-rate all round, and on messages for Tasmania provide one penny for cable. Presume you agree.

No. 36. The Managee in Austealasia, Eastern Extension Company, Adelaide, to the Seceetaby, General Post Office, Wellington. (Telegram.) Adelaide, 2nd May, 1900. Be Tasmania cable-rate : Yes, one penny per word.

No. 37. The Hon. the Postmastee-Genebal, Wellington, to the Manages in Austealasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, 2nd May, 1900. Youb cable re cheapest cable-tariff in whole world was given out and published by Press same date received. All your telegrams have been and will be handed out for publication in full. Hope to reply to your last cable to-day.

No. 38. The Manages in Austealasia, Eastern Extension Company, Adelaide, to the Seceetaby, General Post Office, Wellington. (Telegram.) Adelaide, 4th May, 1900. Company agrees to continue rate one penny per word for New Zealand international Press messages.

No. 39. The Hon. the Postmasteb-Geneeal, Wellington, to the Manages in Austealasia, Eastern Extension Company, Adelaide. (Telegram.) Wellington, sth May, 1900. In reply to your wire of the 30th, in which you say that the figures given by me as to cost of working cable were considerably underestimated, I have had matter carefully gone into, and regret lam unable to agree with you. There is wide difference between your estimate of cost of working and station expenses—which you say amounted to £5,853 last year—and ours, probably from the fact that your figures have been swelled by many items which would not be taken into account were cable worked as State-owned. For instance, Wakapuaka and La Perouse are trainingstations, and the staffs generally, if not always, are in excess of actual requirements. Your company also works Sydney land-lines, and probably portion this cost is included in your figures. During last year or two your company has added largely to station buildings and provided new outfits, including expensive instruments. In the estimate given by me office-instruments were included in capital cost, and six thousand a year set down for salaries, other expenses, small repairs, &c, and from careful analysis these figures believed to be well within mark. Cost of extensive cablerepairs and renewals debited against amortization fund, as well as up-keep of cable-steamer. I may add that, while I have no doubt your estimate is based upon the practice adopted in working your system, I am certain that your figures are considerably above what they would be if Government owned the cable. In discussing matter with you I have but one object, that of securing lowest possible cable-rates in interests of colony; and lam glad to learn from you that as result of our efforts New Zealand has obtained lowest cable-rates in the world. But, while this is so, we are