F.—Ba

6

This denotes an extraordinary state of things, and if the statement be correct it appears from our agents' letter very much as if the money for that cablegram had been obtained from us under false pretences and by a deliberately untrue statement ; but before taking any further action in the matter I think it right to bring it under your notice in case you are able to afford me, with your usual courtesy, any information which will tend to throw light upon such extraordinary proceedings. I am, &c, Chas. Salter, Manager. The Manager, the Eastern Extension Australasia and China Telegraph Company, Melbourne.

No. 3. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Melbourne. Sir, — General Post Office, Wellington, 2nd June, 1906. I have the honour to acknowledge the receipt of your letter of the 18th ultimo enclosing copy of letter from the General Manager, Royal Insurance Company, Melbourne, complaining that Messrs. Bannatyne and Co., agents for his company in Wellington, had been informed when presenting a cable message on the 30th April at the local Telegraph-office that your Melbourne office was closed, and that future cable messages would have to be sent via Pacific. In reply, I have to inform you that full inquiries have been made, with the result that it is found that there is not the slightest foundation for the statement of the alleged misrepresentation by this Department's officer. The message in question was handed over the telegraph counter here, marked " Via Eastern," and the counter-clerk pointed out to the person presenting it that the Pacific route was the only one then open to Australia, owing to the interruption to the Eastern Extension Company's cable, and the alteration of the route was accordingly authorised. No mention of your Melbourne office was made by the counter-clerk, who is a junior officer, and was unaware that your company had an office in any of the Australian States. Mr. Dix, of Messrs. W. M. Bannatyne and Co., was also called upon, and he frankly admitted that the statement of the counter-clerk was probably true. He also stated that the person who presented the message had been dismissed from the firm's employ as unreliable. Mr. Dix also stated that the information about the closing of your company's Melbourne office was obtained from Press reports from Australia, and further admitted that as he was unaware of the interruption to the Wakapuaka -La Perouse cable he could only ascribe the amending in the telegram of the cableroute to this closing. It should be explained that the interruption to the cable was duly notified to all newspapers on receipt of advice from the International Office at Berne. Convention Regulation XLI has always been strictly observed in New Zealand, and paragraph 3 of that regulation was acted on in this instance. I have, &c, Thomas Rose, Acting-Secretary. The Manager in Australasia, Eastern Extension Australasia and China Telegraph Company (Limited), Melbourne.

No. 4. The Acting-Secretary, General Post Office, Wellington, to the Manager in Australasia, Eastern Extension Company, Melbourne. Sir,— General Post Office, Wellington, 29th June, 1906. I have the honour to acknowledge the receipt of your letter of the 15th instant [not printed], asking, with reference to the complaint forwarded with your letter of the 18th ultimo, why so few messages marked " Via Eastern " for Great Britain were sent by that route during the late interruption of your company's New Zealand cables, whereas those for Europe were sent " Via Eastern." In reply, I have to inform you that this Department is not in a position to explain the reason for the reduction in the number of messages forwarded to Great Britain by way of your company's cables during the interruption referred to. While it has not been possible to re-examine all the cable-work sent during the period of the interruption, a sufficient examination has been made to show that the telegrams presented were forwarded as routed or as instructed by the senders. I would again repeat that no departure from Convention Regulation XLI was permitted. I may add that the manager of the Royal Insurance Company, Melbourne, has forwarded an apology for the unfounded complaint in his letter to you on the 17th ultimo. I am, &c, Thomas Rose, Acting-Secretary. The Manager in Australasia, Eastern Extension Australasia and China Telegraph Company (Limited), Melbourne.