5

F.—B,

7. The land-line services in Australia and New Zealand, in connection with the cable, have been generally well maintained by the Governments concerned. The Atlantic Companies have afforded utiinterruptedjcable communication throughout the year, and a rapid and efficient service. In Canada, the lines of the Canadian Pacific Railway, both in Vancouver Island and elsewhere, suffered considerable interruption, first from bush-fires and unusual electrical disturbances in July, August, and September, ami later from severe storms in November and December. In the latter month a gale occurred in Vancouver Island which is said to have been the worst on record in that region, and caused an interruption of over seventy hours, all the wires having been thrown down. In August, moreover, the tra Hie. more especially that of the States, was considerably disorganized by reason of the strike of telegraph operators in Chicago, and the sympathy it excited amongst those employed by the Canadian Pacific Railway. 8. The health of the staff has been satisfactory throughout the year, and the service rendered by them has continued to be maintained on the high level of efficiency and zeal which has characterized it in previous years. 9. Throughout the year the cable has worked without interruption, and no repairs have been called for. The buildings, electrical apparatus, and plant, at all stations, have been maintained in good order. 10. No damage has occurred to the repairing vessel " Iris," and the discipline and efficiency of the ship's company have continued to be thoroughly satisfactory. The wharf and shed which the New Zealand Government undertook to provide for her use at Auckland were completed by January of this year, and permanent moorings for the vessel are now in course of being supplied. These works will be of much benefit to the safety of the ship, and to the comfort and convenience of her crew, and the Board feel greatly indebted to" the New Zealand Government for the liberality with which they have given this valuable assistance. 11. The following statement may be of interest as showing the progress of the international traffic since the opening of the cable :—

Number of International Messages and Words.

In addition to the above, a very considerable intercolonial traffic is carried between Australia, New Zealand, and the Fijis, keeping the southern sections of the cable fully occupied during business hours. I have, &c, H. W. Primrose, The Secretary, His Majesty's Treasury, Whitehall, S.W. Chairman. Pacific Caiu.e Board (1. Edward VII. c. 31). —Account for Period ended 31st March, 1908-

I.—Statement showing the Sum issued out of the Consolidated Fund and the Expenditure.

II.—Statement showing the Sums borrowed and the Securities created.

Messages. Words. Year. Ordinary. G °™ r "' Press. Total. Ordinary. * . " l'n Total. Remarks. 1902-3 18,494 915 35 19,444 202,313 24,210 1,831 228,354 Cable opened 8th Dec, 1902. *Cricket. 1903-4 1904-5 1905-6 1906-7 1907-8 64,595 3,128 67,677 3,018 77,331 3,109 93,533 3,983 890* 387 259 302 68,613 71,082 80,699 97,818 105,189 744,034 781,028 834.778J 1,010,133] 83,116 71,575 74,763 ,101,307 37,819* 19,110 13,225 17,222 864,969 871,713 922,766 1,128,662 1,230,345

i Year iu which issued. Amount. Amount. In in issued (out of an authorise! issue of £2,000,000) In ni issued (out of an authorised issue of £2,000,000) l!M)l-2 £ s. (1. 1,060,935 0 0 Expenditure in the period ended 31st March, L907 Expenditure in the year ended 31st March, 1908 £ s. d. 1,008,480 18 7 1902-3 ! 13! 1,065 0 0 •224 7 0 Balance in hand 1,098,686 5 7 1,314 14 5 2,000,000 0 0 2,000,000 0 0

Amount. Money borrowed. Securities created. £ s. d. Sum issued as above 2,000,000 0 0 In the period to 31st March, 1902 In the year to 31st March, 1903 2,000,000 0 0 > £ 8. J, 784,600 0 0 1,215,400 0 0 Annuity of £77,544 18s. First payment, 1st December, 1903. Last payment, 1st December, 1952. 2,000.000 0 0