7

F.—B

for similar transmission in the United Kingdom or New Zealand. This service represents a further development of the policy embodied in the system of deferred messages at half-rates, introduced on the Ist January, 1912, and described in last year's report—viz., the policy of offering to the public alternative methods of cabling at reduced rates for messages of less urgent character, that can be transmitted at times of least pressure on the cables and without interfering with the prompt transmission of messages that cannot brook delay and that are paid for at the full rates of charge. It is too early as yet to form a judgment as to the extent to which advantage may be taken of this latest innovation; but up to date the traffic under the head of " week-end cable messages " lias averaged about 5,000 a week, and as illustrating the benefit that these cheaper services confer on the public, it may be mentioned that, comparing the quarter to 31st March, 1911 (when neither the deferred rate, nor the week-end rate was in force), with the quarter to 31st March, 1913 (the first three months of the week-end service), it is found that the number of words, which in 1911 under the head of " Ordinary " was 329,438, had increased in 1913 to 473,491 under the three categories into which that head had expanded, or an increase of 44 per cent., while the cost to the public had increased from £46,537 to no more than £53,833, or only by 16 per cent. 18. The reduction of ljd. per word in the rate for ordinary Press traffic was rendered possible by the reduction in September last by the Atlantic cable companies of the transatlantic rate from sd. to 3jd. As the Board and the Australasian Governments had already reduced their share of the through rate by one-half as long ago as 1909, no further reduction was possible on the Pacific portion of the transit. Board and London Office. 19. The vacancy on the Board caused by the retirement of Sir William Hall-Jones (as announced in paragraph 22 of last year's report [F.-8, 1913, No. 1]) was filled in October last by the appointment of the Hon. Thomas Mackenzie, High Commissioner for New Zealand. In the autumn Mr. A. S. Baxendale, who had held the post of London manager and secretary since August, 1908, tendered his resignation, with a view to taking up other work, and, to the great regret of the Board, he retired from the service at the end of November. The Board are taking the opportunity to reconsider the organization of their London ofiice, and in the meantime temporary arrangements have been made for carrying on the business without making a permanent appointment to fill the vacancy caused by Mr. Baxendale's retirement. 20. The following statement shows the progress of the international traffic since the opening of the Cable :—

Number of Words dealt with. — International.

* Introduced Ist January, 1912. f Introduced 6th December, 1911. J Introduced Ist January, 1913. 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, Chairman.

Pacific Cable Board (1 Edward VII, c. 31).—Account for the Period ended 31st March, 1913.

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

Year. Ordinary. Deferred Ordinary. Deferred „ Ordinary. Government. Deferred Press. Week-end Cable Letters. Press. Total. 1902-3 1903-4 1904-5 1905-6 1906-7 J 907-8 1908-9 1909-10 1910-11 1911-12 1912-13 202,313 .. i 744,034 .. I 781,028 834,778 1.010.133 .. 1.041.433 .. , 1,012.998 .. i 1,109,639 .. , 1,215,306 .. ; 1.346,346 .. ! 1 ,301,713 46,450* (415,689 24,210 83,116 71,575 74,763 101,307 105.519 116.847 120,415 166,812 164,639 193,442 1,831 37,819 19,110 13,225 17,222 84.940 95,203 126,081 467,495 501,952 211,754 228,354 864,969 871,713 922,766 1,128,662 1,231,892 1,225,048 1,356,135 1,849,613 2,131,376 2,670,575 71,989f 505,152 42 325 %

Year in which issued. Amount. Amount. Sum issued (out of an authorized issue ol £2,000,000) ium issued (out of an authorized issue of £2,000,000) 1901-2 1902-3 £ s. d. 1,060,935 0 0 939.065 0 0 £ s. d. Expenditure in the period ended I 1,996,703 8 I 31st March, 1912 Expenditure in the year ended Gr. 3,109 7 (i 31st March, 1913 ._ 1,993,534 0 7 Balance in hand .. .. 6,465 19 5 2,000,000 0 0 2,000,000 0 0