F.—l

During the past three years the business of the Pacific cable has steadily increased. Of the ordinary paid business the Pacific obtained in 1903 82 per cent., in 1904 86 per cent., and in 1905 87 per cent., the Eastern Company's share being 18, 14, and 13 per cent, during the same years. The New Zealand figures for the past three years' ordinary telegrams are: — Pacific. E. E. A. & C. Year. Messages. Year. Messages. 1903 72,595 1903 16,351 1904 74,804 1904 12,395 1905 78,765 1905 12,013 There has been a marked increase in the Press, the figures for which are as follow:— Pacific. E. E. A. & C. Year. Messages. Year. Messages. 1903 325 1903 1,270 1904 486 1904 1,065 1905 722 1905 1,504 Recent checks show that the average best time in which messages are handled on the Pacific route are:— Hr. mm. From London ... ... ... ... ... ... 1 20 ~ America ... ... ... ... ... ... 0 12 „ Sydney ... ... ... ... ... ... 0 8 ~ Melbourne ... ... ... ... ... ... 0 13 The Pacific service continues working smoothly, and there are scarcely any interruptions of any moment. The figures show that not only has New Zealand given the Pacific cable support beyond the most favourable estimate of international business, but it has also given that route 87 per cent, of the ordinary business to Australia. The conference of delegates representing the Pacific partners, which had adjourned from time to time, met on the 21st June, 1905. Sir Sandford Fleming represented this colony. The report of the Conference will be found in the paper on telegraph cables to be presented to Parliament this year. Mr. C. H. Reynolds, CLE., General Manager to the Pacific Cable Board, visited Australia iv March-April of this year, the object of his mission being the reorganization of the Pacific cable management in the Commonwealth. Later in April Mr. Reynolds visited New Zealand on a tour of inspection. On the 23rd April, 1906, the two cables of the Eastern Extension Company between New Zealand and Australia parted. Communication by cable was thus restricted to the Pacific route until the 28th May, when one of the Eastern Company's cables was repaired. Cable Business. The number and value of cable messages forwarded from New Zealand during 1905 are shown in the following statement:

Via Pacific.

XXI

! irdinary. Press. Destination. Number of Messages. Value. Number of Messages. Value. International Australia... 20,507 58,258 £ a. d. 33,137 19 6 11,136 2 1 39 683 £ a. d. 75 11 3 323 8 7 Total for 1905 78,765 44,274 1 7 722 398 19 10 Total for 1904 74,804 43,636 7 5 486 518 8 8 Via Exte iSion. irdinary. Press. Destination. Number of Messages. Value. Number of Messages. Value. 'nternational Australia... 3,398 8,615 £ a. d. 4,717 10 11 1,780 2 10 106 1,398 £ s. 240 17 650 12 d. 5 0 Total for 1905 12,013 6,497 13 9 1,504 891 9 5 Total for 1904 12,395 7,204 10 7 1,065 629 0 0