F.—l.

On the 18th June a more selective service, that known as " person-to-person," was inaugurated, this being the first of the new services introduced as the result of the departmental investigations. As the name implies, in " person-to-person " service the caller nominates the particular person (or an acceptable substitute) with whom he wishes to speak ; and the chargeable time does not commence until the calling and the called -persons actually engage in conversation. " Person-to-person" communications involve considerably more work than do "station-to-station" calls, and the line-time chargeable to callers is appreciably reduced. Consequently, it is necessary to make additional charges as under s. d. Up to 75 miles .. .. .. .. .. .. ..06 Over 75 miles and not exceeding 150 miles .. .. .. ..10 150 miles and not exceeding 300 miles .. .. .. .. ..16 300 miles and not exceeding 450 miles .. .. .. .. ..20 Over 450 miles .. .. .. . . .. .. ..26 " Appointment " Calls. The provision of " appointment " call service enables a subscriber to arrange, in advances to be placed in communication at a specified time with a person whom he nominates. This new service is very useful in certain circumstances, and business people generally regard it as a valuable adjunct of " person-to-person " service, on the basis of which " appointment " calls are completed. The additional charges are the same as those for " person-to-person" calls. " Fixed-time " Calls. Under the system of " fixed-time " calls it is possible for a toll call to be arranged to take effect at the same time on at least five consecutive days (including or excluding Saturdays, Sundays, and holidays as desired). " Fixed-time " calls differ from " appointment " calls in that there is no undertaking to obtain the attention of a particular person at the distant end. In other words, these calls are completed on a " station-to-station " basis. The charge for each of a series of " fixed-time calls is the same as that for a " station-to-station " call, plus a " fixed-time " fee of 10 per cent, of the initial rate respecting such call with a minimum of 3d. " Contract " Service. Naturally the volume of toll traffic is not uniform throughout the day, nor is it uniform in respect of all circuits. There are, as a rule, three periods of peak traffic —between 9 a.m. and noon, when it is highest; between 2 p.m.. and 3 p.m., when it is less pronounced ; and between 4 p.m. and 5 p.m., when it is still less pronounced. At other hours toll circuits usually carry a comparatively light load. With a view to increasing traffic during the slack periods (when the circuits are no less costly to maintain than when they are being worked to full capacity) and to transferring some of the traffic from the peak periods to other periods, " contract " service has been introduced. Under this system a telephone-exchange subscriber may enter into a contract to have daily toll Communication with a subscriber to another exchange at a time suitable to the telephone exchange. The duration of each call must be not less than ten minutes, and the minimum aggregate period contracted for must be not less than five hours. The charges for " contract " service are— At times when " full " toll rates are applicable Ordinary rates, less 33| per cent. ,■ , (c i if Mi it i r ui fUpto 20 miles, half-rates, less 33A per cent. At times when halt toll rates are applicable <,/ nf . ' , „J> r \_Over 20 miles, half-rates, less 20 per cent. " Collect " Calls. It is now possible for the charge for a toll call to be paid by the called person instead of by the caller. As " collect " calls necessitate the obtaining of the called person's prior consent and also involve extra accounting work, a small additional charge is made. The convenience of the innovation is much appreciated by many telephone-users. " Transferred Charge " Calls. Additional to the system of " collect " calls is " transferred charge " service, by means of which the charge for a toll call may be debited to the account in respect of a telephone other than that from which the call is made. It is necessary that the telephone number from which the call originates and the number proposed to be debited with the charge be connected with the same exchange. The purpose of the facility is to enable persons away from their offices or homes to make calls from other telephones without the necessity of paying for them at the time the calls are made. The additional charge is the nominal and uniform one of Id. per call. MAINTENANCE OF TELEGRAPH AND TELEPHONE COMMUNICATION. Due to the maintenance of the telegraph and telephone plant in a highly satisfactory state, the communication services rendered to the public continue to be characterized by the utmost efficiency. Except as a consequence of violent gales in the Wairarapa District, heavy snowstorms in Canterbury, and floods at Hokitika, telegraph and telephone services suffered no unusual disruptions during the year,

26