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extensive alterations to the chief-post-office building, Palmerston North, will be commenced. It is hoped also to begin work on a new building at Auckland for the accommodation of stores and workshops. Alterations to the buildings at Hastings and Masterton are also contemplated to meet increased work, while provision will be made for several automatic-exchange buildings and for additions to existing automatic-exchange buildings. Plans for a new post and telegraph office at Dunedin, in which provision will be made for housing other Government Departments, are now in course of preparation, and it is hoped to commence building towards the end of the financial year 1926-27. An endeavour is also being made to build a new post and telegraph office at Napier, and preliminary action is being taken in anticipation of funds becoming available. OVERSEAS MAILS. Correspondence for Great Britain, Ireland, and the Continent of Europe continues to be forwarded by contract steamers via Vancouver and via San Francisco, except when a Vessel sailing via Panama offers a quicker despatch than the next contract steamer, or when correspondence is specially addressed for despatch by other than a contract steamer. Mails from Great Britain are received via Suez, via Vancouver, via San Francisco, and via Panama. During 1925 the average time occupied in transmission of mails from New Zealand to London was, in the case of despatches via Vancouver thirty-one days, and in the case of despatches via San Francisco twenty-nine days. From London to New Zealand the average time occupied by both routes was thirty-one days. INLAND MAIL-SERVICES. During the winter of 1925, which was exceptionally wet, and also in December, 1925, floods were responsible for temporary interruption of mail-services in various parts of the Dominion. Where possible, arrangements were made to maintain mail communication until the normal services were restored. In December the mail-service between Christchurch and Kaikoura was interrupted by floods, and some delay took place in transporting mails to places along the route. At about the same time and for the same reason temporary arrangements had to be made to carry mails to and from Blackball by foot-track, via Stillwater, a distance of eight miles. In this instance difficulty was experienced in maintaining the service. RURAL MAILS. There are now in use 14,547 rural boxes, an increase of 1,481 on the number for last year. The number of rural deliveries (including part rural deliveries) in operation at present is 365, as against 273 for 1924-25. " Householder " circulars. The revenue from this class of matter for the period Ist April, 1925, to the 31st March, 1926, was £8,798, as against £4,847 for the preceding twelve months. In last year's report mention was made of a concession rate of fd. for each packet up to 2 oz. which is payable when circulars to the number of 250,000 are posted by one sender at one time, and it was stated that the concession rate was expected to result in increased business. This expectation has been fully realized, for of the increase of £3,951 in revenue £3,746 is accounted for by circulars posted at the |d. rate. MISSING POSTAL PACKETS. During 1925, 5,670 inquiries for postal packets were lodged by members of the public. In 3,721 cases, or more than half of the total number, the packets inquired for were either traced or satisfactorily accounted for. In 1,020 cases the sender was responsible for the delay, in 1,185 cases the responsibility rested on the addressee, while in 427 cases it was found that the delay was due to failure on the part of the Post Office. In the remaining 1,089 cases inquiries disclosed either that there had been no delay or that there had been delay but that it was not possible to fix responsibility. In 1,949 inquiries no evidence of any kind could be obtained as to the disposal of the packets. This number includes packets mislaid either before posting or after delivery. It includes also misappropriations that may have taken place either inside or outside the Post Office. The actual losses amounted to -0013 per cent, of the total number of articles posted. As has been stated in previous reports, despite warning notices on posting-boxes the public continues to post in unregistered packets articles of negotiable value. From the number of inquiries lodged in connection with this class of packet, and from the number of unregistered packets containing bank-notes and other value received in the Dead Letter Office, it is evident, that the advantages of the registration system are not being availed of to the fullest extent. The registration system protects both the sender and the addressee, and, as particulars of the handling of registered packets from the time of posting until the time of delivery are recorded by the Department, it protects also Postal officers. Two recent cases of failure to register valuable packets are of sufficient interest to warrant special reference to them being made. In one case an amount of £350 in £50 bank-notes was forwarded as an unregistered packet, and in the other case a particularly flimsy envelope opened in the Dead Letter Office was found to contain a £10 bank-note. There was nothing in the envelope to indicate by whom the letter had been posted.

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