P.—l.

During the year the number of toll calls in any one month did not fall below 1,000,000, the lowest figure recorded being 1,092,769 calls for the month of June, while the highest number of calls was recorded in March, when 1,352,707 were handled. Prior to December, 1936, the million mark for one month's toll traffic had been reached on three occasions only —namely, in December, 1929, and in January and March, 1930. What, therefore, was an exception a little over two years ago is now a regular occurrence. The special toll services continue to be availed of to an increasing extent. The approximate figures for the year are as under, last year's figures being shown in parentheses : — Person-to-person calls .. .. .. •• 93,500 (75,000) Collect calls 73,000 (60,000) Appointment calls .. .. .. .. .. 16,500 (12,000) IMPROVED TOLL-ROOM PRACTICE. With the introduction of modern switchboard equipment and the provision of an adequate number of telephone circuits it is possible for many toll calls to be connected " on demand " — i.e., for communication to be established at the time the calls are made. The number of calls so handled is increasing steadily, and it is of interest to record that at the larger exchanges throughout the Dominion no less than 48 per cent, of all calls handled between 8 a.m. and 6 p.m. are connected "on demand." It is the aim of the Department to extend this no-delay " service, but unless the calling subscriber is able to inform the toll operator of the number of the wanted subscriber " demand " service cannot be provided. In their own interests, therefore, subscribers desiring toll calls are being encouraged to furnish, whenever possible, the numbers required. At the same time the Department has given consideration to the question of improving the method of handling applications for calls. At Auckland and Wellington provision has been made for a separate number to be dialled by subscribers when they do not know the wanted subscriber's number, thus relieving toll operators on the switchboards of the necessity of looking up telephone numbers and enabling them to expedite the handling of calls and consequently to extend " demand " service. The arrangement is working very satisfactorily, and it is hoped to extend the innovation to other large exchanges in due course. CARRIER-CURRENT TELEPHONE SYSTEMS. In October last a three-channel carrier telephone system was brought into commission for direct service between Wellington and Christchurch. The system is being operated over the new submarine coaxial telephone cable between Wellington and Seddon, and thence over one of the open aerial metallic circuits between Seddon and Christchurch. To ensure satisfactory operation it was necessary to install intermediate carrier amplifiers or repeaters at Seddon and Kaikoura. The establishment of this carrier system and a new voice-frequency circuit between Wellington and Blenheim following the laying of the new Cook Strait cable enabled the Department to increase the number of telephone channels between Wellington and Christchurch from four to seven and to restore the normal allotment of three circuits on the Wellington-Blenheim section. Towards the end of the year a fault developed in one of the older Cook Strait single-core cables resulting in the partial loss of one of the Wellington-Blenheim toll circuits. This necessitated a further adjustment of facilities, and six channels were allocated for use between Wellington and Christchurch and three for use between Wellington and Blenheim. On the completion in a few months' time of the installation of the carrier-telephone equipment for association with the new cable there will become available a total of thirteen telephone channels across Cook Strait. It is proposed to allocate these channels as follows : Wellington-Christchurch toll service, 8 ; Wellington-Christchurch voice-frequency telegraph service, 1 ; WellingtonBlenheim toll service, 2 ; Wellington-Blenheim voice-frequency telegraph service, 1 ; Nelson toll service, 1. During the year two three-channel carrier systems were brought into operation between Auckland and Whangarei. The immediate advantages are twofold in that the speech-efficiency between Auckland and Whangarei has been increased to a high level and the release of the open aerial circuits previously in use between those centres has made it practicable to provide improved facilities between Auckland and other exchanges south of Whangarei—viz., Wellsford, Maungaturoto, and Paparoa. The installation of the three-channel system has also displaced from service two single-channel carrier systems, which it is proposed to reinstall at other places in order to effect still further improvements in the North Auckland section of the toll network. Other carrier systems brought into service during the year are as follows : — Auckland-Rotorua .. .. .. .. One three-channel system. Napier-Wellington . . . . . . . . One three-channel system. Napier-Dannevirke .. . . .. . . One single-channel system. Masterton-Wellington .. . . . . . . One single-channel system. Christchurch-Dunedin .. . . .. . . One single-channel system. Further carrier equipment is now being installed in various parts of the Dominion, and several additional three-channel systems will be ready for operation in the course of three or four months.

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