XXIII

F.—l

" During the period the cable-repair ship, buildings, &c, were under construction The cable was only opened for traffic in December last, consequently three months' revenue was all that could be set off against this heavy annual charge. No exact statement of receiots for this period had been supplied by the British Treasury, but in one despatch it was estimated that the revenue would average about £1,150 per week for one class of business and £13,600 per annum for another taZ fis Sin ?v, hT mdlCa i e * hat u th , e reCei P ts for the <l uarter mentioned probably aggregated ±,18,310, so that the accounts for the last financial year possibly read,— Expenditure 12() £ 000 Eevenue - . - lelaio Deficiency 101^690 * •v. . * * * * * * * n " I'" 6 i B lno ing I U u d fOT the re P a y ment of the cost of the cable came into operation in December, 1902, and the estimates for the next financial year, to the 31st March, 1904, are :— " Expenditure. g Interest and first instalment of annuity* 77 ha k Head office *\" [[ \" "' i IoQ Cable stations ...... or ' onn Kepairmg-ships, salaries, &c. ... ... ... 19 500 Eenewals and depreciation ... ... 35*500 Miscellaneous ... ... ... [[ 2'255 Total ' ~ 165,500 "It is anticipated that the receipts for the year will amount to £73,400. The result of the year s operations will therefore probably be :— e Expenditure 165^500 Eevenue 731400 Deficiency "92,100 ********* oh, Jp Th /77 0 Sn IOSS n or the - tW °, I 6 " 8 Wll i the / efore not fall f « short of £193,790. The interestcharge, £77,500 will remain stationary for fifty years ; but at the expiration of that period the money borrowed to construct the cable will have been repaid, and this annual charge will " Australia pays one-third of the annual charge ; but it cannot be regarded as a deficit when it is remembered that they were paying off the cost of a cable that had so far cost them nothin ° and were also laying up money for a new cable when the present one was worn out beeides writing off depreciation on their buildings and ship. The traffic was up to the estimate made by the parliamentary Committee, and he hoped that with increased prosperity in Australia theTraffic would begin to improve, and justify the optimistic estimates made a few years ago which caleu lated on a 10-per-cent. increase each year over its predecessor." the year 6nded the 81St MarCh ' 19 ° 4 ' are eStim^ £ Traffic revenue 76 ,300 Annuity and renewals ... 113 045 Deficlt •■ 90,258 Working-expenses ... Z 53] g}§ T ° tal - - Total ... I^ The General Manager of the Pacific Cable Board paid a business visit to Australia and New Zealand in August, last, which did nmch good, although Mr. Beynolds was unable to have matted in Australia placed on a permanently satisfactory footing. The Federal Post Office could no see its way to exercise any control over the Board's canvassers, or otherwise directly assist msecurS traffic. This resulted m the Board not appointing canvassers, and concerted action for securinf fZ n AusSa 6re haS ' therefOre ' been httle mCreaBe m the Pacific-cable t3 A conference of delegates representing the Pacific-cable partners is to be held in London shortly in reference to the Commonwealth's agreement with the Eastern Extension Telegraph Company and other important matters affecting the Pacific cable. Among the questions fofcon sideration is one to be submitted by this Government that local Honorary Boards should be 2~ pointed in Melbourne, Sydney, and Brisbane, to whom representatives of the Board would look for advice in the matter of canvassing and business matters generally. Sir Sandford FlemW formerly Engineer in Chief Canadian Bailways, and who has taken a marked interest °n the S cable, will represent the Government at the conference. -facinc Auckland has now been selected by the Pacific Cable Board as the headquarters of the cable repairing steamer "Ins," in preference to Suva. 0I cne cable .

• 1.e., one of fifty annual payments to extinguish loan and interest,