WHAT THE REPORT SAYS.

Press, Volume LX, Issue 18265, 26 December 1924, Page 12

WHAT THE REPORT SAYS.

FINANCIAL POSITION ANALYSED. REORGANISATION PROPOSALS. ' \g&M4i.A'.. i ■ • - ' ' The report states that the Commission left' Wellington on October 15th to traverse the North Island system, «ind left on- October 27th to traverse ifhe.'Southi Island lines, travelling some 3200 miles between that dale and November 15th. On the two tours 4850 miles by rail ; and 750 miles by toiotor were covered, the last mentioned toeing in pa^t,to inspect projected con-necting-links, and for the rest to reach isolated sections of the railway. Tho terms of reference are summarised under four headings: (1) Finance; (2) Organisation; (3) . Management—(a) Permanent-way and works, including proposed new works; (b) Signals; (c) ireihanicaiy (d) Stores'; (e) Operation; \t) . Jtytes and fares; and (g) -Statistics.-. - Railway Dervrtopmort. On the 31st March, 1924, the New 7«aland Government railway system comprised 3053 miles open for traffic, the system being divided into eight separate disconnected sections as •{follows:—. Section.

' Mhfagr Earnings and Expenditure. .Two yean, 1913-14 and 1923-24, are icompared in respect of total .earnings eind total expenditure by means of The Commissioners state that these, comparisons must be regarded jyith caution .owing to disturbance due to the war period vibrating the accuracy" of the conclusions - drawn wholly Jrop the figures presented. The inforiiiatiq>ncon?eyed by. the graphs may be tthty presented:—'

In 1913-14 the net earnings amounted to and interest to £1,267438. ,'•'.*....'' ' . Capital Expenditure. An analysis of capital expenditure „as' at Mareh 31st,- 1924, showed on one side of the account:—

Railway Finance. Some £6,000,000 t 0 £7,000,000 have been spent on railway construction ont of accumulations of the Consolidated Bevenue. The average cost per mile is £13,500. Railway capital represents between one-fourth and one-fifth of the total national indebtedness. During "the past 20' years the Capital Account on lines open for traffic has been doubled; since 1914 there lias been an addition of- £9.044,340, or, roughly. 28 per cent.; mileage of lines has increased by only 190 miles, or 6.64 per cent. After explaining the genesis of the "policy rate" of interest—fixed at 3 per cent, in 1896, and increased to 3J per'cent, in 1910. the report states that net receipts balanced (excepting in 1914 and 1915) the policy and loan interest up to 1920; since that year net receipts have been below th'e , policy rate, to the extent of £124,376 in 1921, £1,021.156 in 1922. £'254.355 in 1923—a total of £1,429.917. .Tu 1924 there was a surplus of £31.802 over the 3J per cent., but :< shortage of £226,345 on interest paid by the State. The shortage during these vears on interest actually paid on loans was £2.320,607. "Whilst an advance of rates and fares was sufficient _ !•'< meet increased working expenses from 1913 to 1920. and covered both policy and aetual interest during those years the increased charges were not sufficient to provide for the higher, rale, o/ wages and enhanced cost of stores, plus interest, on increased capital coining into effect from 1919 on ward*. - Of the increase in capital since 1914 of £9i044,340 new lines (at a cost of £14,950 per mile) account for £2.884,368, new rolling stock and machinery £3,022,298, grade improvements £307,0991, while £2,230,533 has been expended in connexion with additions and improvements to statio?is an:! works. Concurrently with the increase in capital the rate of interest, upon loans rose from £3 16s srl to-£4 7s 6d per cent., and working- expenses, as a consequence of advance in price of coal and materials, together with an enhanced labour bill of some £1,500,000, were nearly doubled. Details are given of the method under which funds for the railways are provided; also as to the manner in which estimates of expenditure are drawn up. The estimates, the report says, art- prepared in June, and passed lata in the year—that is, within three or four months of the end. of the/financial year to which they refer. This delay in giving -authority for expenditure which must go on from day to day not.only upon capital works, but also upon revenue, places the Railway Department in an" extremely awkward position. It is the practice to authorise expenditure in anticipation at a rate proportionate to that of the previous year, but for anything additional there remains, as a. rule, four or five months only of the financial year in which te carry out the work. The passing of a Budget by . Parliament under such conditions as these has from a Railway Departmental point of view no practical value; on the contrary, it is subversive of economical working and management. Separation of Railway Accounts.

There is ample .justification, the report states, for the opinion expressed by the Minister of E'ailways as to the desirability of separating railway financo from Treasury accounts. British budgeting methods, which are followed in New Zealand, were not at their inception formed, for the purpose of administering a large'industrial undertaking such as a system of railways, and they do not, and cannot, conform to the requirements of a revenue-pro-ducing establishment which needs not a yearly vote, but financial provision arranged from time to time as necessity arises, capable of dealing with a policy-.and programme over a period of years, and at the same time sufficiently flexible to meet any emergency that may arise.

We recommend that loans and obliga-1 tioiis' which can be earmarked as attributable to railways be transferred to a separate railway account, that railway revenue and expenses, including purchase of stores, be included in, this account, the whole being dealt with by the Railway Department. Provided there is a statutory obligation' to keep railway funds liquid and available on den ind, the . Treasury might,continue to be the banker of the Kailway Department, although experience in other countries has shown that in times of financial stress moneys representing reserves or current, remittances have proved too alluring to escape seizure in aid of other State obli- I gations. No Reserve Funds.

There arc no reserves to meet wasted and wasting assets in the shape of wear-and-tear of rolling-stock or permanent way. The accounts do not, therefore, disclose the actual position, inasmuch as depreciation in value is not charged against working expenses year by year and accumulated to meet renewals as they become due. This has been provided for in part by charging such renewals as:have been carried out to working expenses, the idea being that this method maintains the stock at its original functional value. An adequate reserve is.a necessity, not only for the" purpose of meeting the cost of replacement, but in order to equalise the charge for renewals.'

Future Financial Position. The prospective financial situation in so far as capital is concerned, taking past-expenditure on existing lines and adding- 'thereto obligations to Which the'- Government is committed, together : with proposals, involving fur"ther expenditure during the next eight or ten years., is as follows: —

(1) Expended on existing lines and works to March 31st, 1924 .. 41,399,427 (2) Expanded on lines not yet open for traffic .. 7,025,809 (3) Estimated expenditure necessary to complete new lilies' .. .. 12,911,028 (4) Expenditure proposed on existing -lines in respect' of deviations, etc. •'• ~ • % ~ " 8,081,500 £69,417,794 The other side'of the account showed:— £ s. d. Capital provided for con-struction-of railways— Opanod lines ~,.41,399,437 6 3 Unopened lines .. .'. 7,339,394 a 0 * £48,738,821 9 3

New capital totalling £2T„00<¥000 ■will be needed, assuming that the 660 additional miles as shown in the Public Works Statement are completed. At the end of ten rears interest charges on the total capital of. say, £70.000.000, would,. at 4i per cent., amount to £3,150,000. The present interest payable on loans (£41.399.427) is at the rate of £4 7s Gd per cent., equal to £1,811,225. The problem is to see how and whether additional net revenue to the extent of £1.338.775 can be obtained during the nexi ten years to meet -these interest, charges.

In anticipating revenue it will be undesirable to base anything upon re suits since 1914, both receipts and -x penditure bearing traces of war dis turbance. and it is wiser to take '.lit figures' of 1904 and 1914 and sr-e !:: what r*tio traffic receipts have responded to increased mileage and facilities. Between those years 535 additional miles were opened, and gross receipts increased from £2,180.641 t<: £4,043,328. or 85.42 per cent. Assuming a like increase during the coming •decade with 660' additional miles of track, we have a prospective revenut of £12.950,124. reducing this to 70 per cent, increase; and we think that, .••part from unforeseen circumstances, this percentage of increase may fnirly be expected to eventuate: we thus arrive at a gross revenue of £1.1,873.159, We do not base this upon past experience alone. We have regard 'to the increase of. population, the opening-up of new producing areas, the revenue advantage brought about by the link-ing-up of detached sections of the railway system, and we include also proper pavments for the conveyance of lime and road metal as well as branch line losses to be made good out of consolidated funds.

deduction in working expenses, resulting mainly from reduction of grade, will probably mean a saving of £200,000, or nearly 4 per cent., on present working expenses. The Commissioners are of opinion that the working ratio can be reduced very considerably, and put the percentage of working expenses to receipts at 70 per cent, when the various changes have been made, the works proposed carried oiit, and _ a greater density of traffic, involving less cost in' nroportion to the tonnage conveyed,' which may be anticipated in the ordinary course of events. The position in' 1934-35 may therefore be expected to be:— . £ Gross revenue .. .. 11,873,159

Working ' expenses at 70 per cent. .. £8,311,211 Reserves .. 350,000 . 8,661,211 leaving ,i net revenue of £3,211,948, and yielding 4.59 per cent, interest upon'a capital of £70,000,000._ In making our recommendations we coupled therewith a «continuanee of the present liability : «of consolidated revenue to meet interest during construction of new lines by the Public Works Department. We reeommend that stores be paid for out of railway funds,, and- that as soon as possible, by appropriation from net receipts, the' cost, of stores' bo eliminated from Loan Account. We advocate the submission of quarterly and yearly reports to the House of Representatives in accordance with past practice, together with a yearly balance-sheet showing capital, revenue, and net revenue, followed by Departmental accounts in' the usual company form, and a forecast of the eapital'eommitme'nts for the following year. This should bear the signature of the chairman of the Board and the accountant, arid be certified by the Auditor-General. ' We recommend that the railways be so worked and.managed.that gross receipts shall not be more than sufficient to cover working, expenses, reserves, and the interest, on capital, including sinking funds—that in the event of a surplus it be devoted to reduction of rates and fares. If, ; pn the-other hand, a loss appears, that rates and fares be increased to cover the deficit.

Organisation of the Debt. After careful consideration the Commissioners' observations have, shown the need for, a general tightening up in respect of Departmental organisation in the direction of more clearly defining the actual responsibilities of the chief officers and reorganising the overhead administration to better meet the peculiar needs of the Dominion. Centralisation was perhaps desirable in the earlier days of the railways, but the time has come when decentralisation to a certain extent is necessary. District officers lean too much upon the central authority in matters of detail, with the result that delay and consequent irritation to the public, as well as loss of traffic, follows. On the operating and commercial side this is especially noticeable, the Head Office being overburdened by correspondence on detail matters which should be capable of settlement through district authority. Xo regular conferences excepting an annual one (mainly upon staff questions) are held. Many of the lines, in addition to being isolated sections, are at considerable distances from Wellington, and frequent inspection by chief officers is not possible; thus many defects, which the eye of an experienced railway man would detect and remedy, continue in existence. A commercial organisation until quite recently was non-existent, with the result that motor-car enterprise had made serious inroads on both passenger and goods traffic. Prom evidence given in the course of our investigations it is clear that the public expect something more in the shape of personal contact with responsible officers than has obtained hitherto. This has reference not only to charges, time-tables, and facilities, but also to sma*ll matters of equipment and regulations. A far better appreciation of the services rendered by the railways would, we feel sure, be the outcome of discussion on the spot between' representatives of the public, who .own the railways, and a responsible officer with authority to settle the minor questions so frequently arising. Belief from these would enable headquarters' officers to devote prompt attention to major questions which they alone should determine. Reference is made to the political pressure upon Ministers to give something which, while of local value, is not to the general advantage of the railwavs, and the opinion is expressed that in the general interests of the country the farther away a railway administration can be removed from political control the better, in order that an impartial decision may be given upon' all questions affecting transportation facilities. In stating this we recognise that where the people own. the railways the Government must decide when and where railways are to be built, and what are to be the maximum charges levied upon passengers and merchandise. Having decided these

things, however, a/d appointed competent men to manage the large industrial enterprise of which a railway system is comprised, it is wiser to leave it in expert hands rather'than to have political pressure brought to bear upon Ministers, in season and out of sen son, to do things that ought not to be done and to leave undone those things that, in the general- interest, ought to be done. Eailway Board Proposed.

Having TPgard to the geographical and other aspects of the New Zealand rail'avs, we consider that a "Railway Board, consisting of a chairman and two other members, one to control mainly commercial affairs, and the other competent to direct the operation would prove the best type of management. We suggest the appointment of an operating and equipment assistant, and in addition to the chief technical officers at headquarters we -recommend the appointment m" two General Superintendents, one for the North Island, with headquarters .at Auckland, the other at Christchurch for the South Island, responsible directly to the Board, and acting under regulations and instructions applicable to the system as a whole, for operation, commercial matters', and maintenance within their respective areas, the keynote being centralisation of principles with decentralisation of details, thus making for greater economy. moro efficient working, and improved relations with freighters and the public With regard to the selection and appointment of members of the Board, the desideratum is to secure harmony and team work in its fullest sense at headquarters. This can only be achieved by selecting trained railway men, possessed of vision, zealous in carrying through the reorganisation of the operating, mechanical. and commercial branehes, and intent, upon bringing the New Zealand railways up to the averago world standard of cheap and efficient transport.

Decentralisation Proposals. The Divisional Superintendents, given a wide discretion with encouragement to develop ureas under their charge, and being clothed with the necessary authority to deal with problems as they arise or seek advice when in doubt, would relieve headquarters from a mass of detail and correspondence. Being in direct contact with freighters and the people in general, they would be enabled to familiarise themselves with the conditions, ideas,, and needs of each'town and district, and obvr&te formal communications and orders from the Board. They should make management personal, as distinguished from distant management, which tends to appear impersonal. Many of the local grievances' could promptly be dealt with, or would probably never arise, under, the more direct and authoritative supervision of the General Superintendent. Formal conferences at headquarters should . be held once in three months.

The districts at present .under the control of Traffic Managers should be rearranged, and placed in control of District Superintendents under tthe control of the .General Superintendent. Whilst the latter would re'ouire a. competent office staff, it is considered that there need.be little, if any, increase* in the total personnel, having regard to the reduction in the number of districts. The districts would havo the approximate mileages indicated below:

The proposed Christchurcb district comprises all the railways in the South Island north of Asliburton, including the Mount Somers branch and the West. Coast, Nelson, and Marlborough lines.

Chief Officers at Headquarters. The chief officers at headquarters would be.as follows:—A secretary, who should deal with publicity and advertising matters; an operating and equipment assistant; a solicitor to deal with the legal and estate work of the Department; a chief engineer; a chief mechanical engineer, responsible for the design, maintenance, and renewal of rolling stock, the management of locomotive workshops and plant, and the supervision of running sheds; a signal and electrical engineer; a • chief accountant; a cashier; a comptroller of stores; and a manager of refreshment rooms and dining-carg. Other Matters. The report sets out the present maximum speed of triains, and states that the Chief Engineer said in his evidence that the trains could run with safety at a higher rate of speed, but he had not been approached in the matter by either the Locomotive Department or the Traffic Department.

The employment of flying gangs for maintenance of branch lines, it is suggested, should be considered. The standard of maintenance on the New Zealand railways is a high one, and the only criticism that could be applied is that on certain of the branch lines it is unusually high. In his evidence the Chief Engineer stated that he was hoping to decrease his maintenance expenditure, at the same time keeping the line in as good a condition as it is to-day.

There are nine district engineers: the Commissioners suggest that three in each Island should meet requirements.

Based upon the life of rails an aveTage of 100 miles of track should be relaid eaeh ; year, representing, say, £300,000 per annum. Bailway Workshops.

Petone: The erecting shop and foundry are very much congested. Carriage repair shop appears to be crowded, and building of new carriages is being carried on. Machinery in sawmill out of date and accommodation is insufficient; the. paint shop accommodation is also insufficient.

Napier: Majority of machines in the erecting, machine, carpenters' and blacksmiths' shops out of date. It is doubtful whether it is necessary to continue the use of these works.

East Town Works: Most of the machinery old-fashioned and inadequate. Newmarket: Congested state of the shop necessitates the centre of the three roads (intended as a run-out) being utilised for engine repairs. Work-

shop yard accommodation totally inadequate. Addington: Accommodation inadequate: centro road (intended as runout! utilised for repair work. Greater part of machinery in machine shop considerably out of -date. Should be replaced with modern tools: general layout of shop unsatisfactory .and should be To-modelled when modern tools art; provided. Foundry very congested; boiler shop totally inadequate to deal with the work required: carriage shop far too small and machinery out-of-date. The workshops had a neat and tidy appearance, but did not soem adequate for the amount of work passing through. The whole place needs remodelling.

Hillside: Most of the machinery is antiquated and obsolete, and no doubt causes delay in dealing with the work. Invcrcargill: The shops ure very congested; work carried out under very adverse conditions. Crreymouth: Most of the machinery in the muchine shop is out of date, and everything is in a very untidy and dirtv condition.

Westport: ..The -shops are sufficiently large to meet present requirements.

Locomotive Types,

There are some 4S different types of locomotives iu service on the Dominion railways; standardisation of parts is not practicable and must add to maintenance costs. The renewal of locomotives recommended should do away with a number of these types.

Coal Consumption. The Chief Mechanical Engineer, in evidence, stated that Welsh coal was better than any he could get in Australia or New Zealand, and, if used, would effect a saving of 30 per cent, iu coal consumption, or of £200,000 per annum. No doubt the Chief Mechanical Engineer will give due consideration, after caraful trials, to what, extent, It is possible economically to use the NewZealand coal.

Running Departmont. The report stateß that a weekly running list could bo advantageously adopted at all running-sheds.

Numerous occasions wero noted of cngino-drivers filling up thoir day in washing-out, cleaning of engines', otc. Having regard to the wages paid to engine drivers tills appears an expensive matter. Drivers aro not worked to the best possible advantage and it revision of the time-table is necessary. The number of waggons appears, to bo high as compared with the work dono on the New Zealand Railways and on those in Australia. To a certain extent this is explained by the number of-waggons uuder, or awaiting, repairs ■ —stated to be 6 per cent, of the stock.

Works for Repairs and Bonewals. The most suitable nnd economical method of dealing with the repairs and renownls of rolling-stock would be to havo two works built—ono, for '.the North and one for the South Islandin a convenient position, with ample yard accommodation, and laid out so as to pass the stock through when boing repaired or built without twice handling it. Theße shops should also be arrunged on a site and in such a way' as to be able to be enlarged without undue expense when necessity arises. As this, however, would mean a large expenditure in money and take a considerable time in selecting suitable positions and designing the best lay-out, it does not appear a reasonable proposal without a recommendation as to how the repairs and renewals should be at once dealt with so as to bring the costs down to a more reasonable basis.

Rail Motor-cars. There are many difficulties, to be overcome with regard to "rail motor-cars using internal-combustion engines on railways with heavy gradients; frequent stops, and requiring high acceleration. We are, therefore, unable to recommend any particular design which might be expected to fulfil the requirements on the New Zealand railways. It is noted that it has been decided to make trials of certain petrol-driven vehicles. The information gained by these should be of value. For a light train service a suitable steam locomotive would seem to be preferable, and as a Sentinel-Cammeil steam rail coach is on order, and this appears to have worked traffic satisfactorily and economically in Jersey over heavy gradients of 1 in 40 and round 5-, 7-, and 9-chain curves, with frequent stops from Corbiere, to St. Heliers, useful information will be gained, our knowledge of the work done being second-hand. It is strongly recommended that L and La engines might be used by attaching a coach for light train service such as would be expected of a rail motor-vehicle, and should be tried.before experimenting with a light type of steam-engine. It is 1 unwise and injudicious to work these engines with only one man. We do not recommend any further money being expended on motor-coaches at present.

Stores Branch, The stores all over the system are by no means satisfactory. Oils and other dangerous stores are not properly housed; and buildings and equipment are faulty. We think that it would be of advantage to send some responsible officer to Sydney to study the working of the railway stores there, and to return charged with the duty of reorganising the Department on a similar basis. A recent rearrangement in New South "Wales has put the stores branch there upon a good footing, and New Zealand cannot do better than follow that example.

Passenger Traffic. The evidence given on behalf of the public, a perusal of the time-tables, a record of the actual times kept by the trains, and statistics of. train-earnings show that, as a result of slow and infrequent services, general discontent exists, and the inhabitants of New Zealand do not make use of railways for the purpose of travel to the same extent that under ordinary circumstances they might be expected to do. Comparisons are not always reliable as a guide, but the record of the total number of passengers travelling on the Queensland, South Australia, and Western Australian lines, as compared with New Zealand, does indicate that there is less railway travel in the latter country in proportion to the population than in the States mentioned. There were in 1923-24 only 28,436,475 passengers on the New Zealand railways, with a population of 1,347,723, whereas in Queensland, with a population of 805,636, the number of passengers who travelled by railway in 1923 was 29,535,981. South Australia with 515,135 residents, had 25,107,379 passengers by rail, and Western Australia had 18,133,168 passengers, for a population of 343,430. The average number of journeys per head of population in the year was — New Zealand, 21.08; Queensland, 35.82; South Australia, 47.46; and Western Australia, 51.27. The reason for this disparity is to be found in the train service. On one line the trains take 2§ hours to cover 39 miles; this cannot be considered a reasonable rate of progression, and it is not to be considered at that that the motor-car is used by everybody possessing one or who can have one. Travelling is not only slow but irksome because of the number of mixed trains. After dealing with motor competition, the report states:—We recommend a complete reorganisation of the timetables with the «bject of meeting pub-

' lie requirements, and'providing at suitj able times as many passenger trains as ; ran conveniently and economically be ] run, leaving goods traffic to be conveyed by goods service, excepting only in I those instances where the running | mixed trains is not calculated to diwrt j traffic. In revising the. time-tables regard should be had to the profitable employment of engine-power in order to eliminate the waste caused by engines standing in steam and earning nothing for many hours. The_ closest co-operation between the operating, and j locomotive branches! is necessary to j achieve this. At the same time all I trains should be speeded up. They ■ are not at present running to the j speeds determined by the Chief Engin- ! eer. nnd many of the maximum speeds could, without danger, be increased. i especially if slops are eliminated at uu- ' important stations in the case of hus>.- ! uess trains between -populous centres. | Tf is difficult to particularise the districts demanding prior attention, but Iwe consider the Auckland-Hamilton. j the Dtniedin-Tnvorcargill. Ihe Wan2aj nui and Christchurch district services I should receive special attention. I.im- ; ited trains have recently been nrraiu"- : ed between Wellington and Auckland. ' To make these trains popular we would : suggest that carriages of modern type. ! replete with the best form of sleeping ; nnd lavatory accommodation, be sp.viI ally constructed. At the same lim-> [ the attaching of n breakfast ear 10 i these trains at the last stopping-pua-e J short of Wellington or Auckland would be "appreciated: Only by making trains I comfortable as well as speedv can f! H » motor competition be countered. The j latest type of the South African f;ifi (>!„ .gauge) railways express- trains is nn I example likely to meet with "ener-il 1 approval in 'New Zealand. " Regarding; excursion trains it is sue pe-sled that more frequent dpporinmties should pTe n for excursions, faster trains should be run not onlv to and from tourist centres, but also' between one town and another. The collection of tickets on trains means constant examination of tickets upon long journeys, irritating to passengers, esnociallv <xt nMit It is recommended that- at the larger stations the platforms be enclosed and the tickets collected at the doors.

Goods Traffic. The'adoption of the stamps system in connexion with parcels is recommended.

As to goods traffic which is being: lost to motor vehicles, it is recommended that a trial should be made of a combination, on mutually advantageous terms, between motor owners and the Department. Having regard to the number of waggons available, there should lie no complaints of shortage of waggons. In New Zealand there are 21,195 waggons arid brake van's, for the conveyance of about 7,000,000 tons of goods; in New South. Wales, there are 23,897 waggons for the conveyance of 14,000,000 ton of goods. It is unfortunate that no statistics are collected of waggon demand and supply.

Passenger Fares. The increase, during the war, of 25 per cent,, on ordinary- passenger tares has probably not affected the revenue to any appreciable extent, except the short distance traffic. The volume of travel on period or excursion tares, designed to encourage tourists, lias declined seriously. It would be wise to reduce these fares to the sum of the ordinary single fare, plus 25 per cent. Week-end tickets might again be tried. As to suburban fares, those for short distances are too high to compete with the road; 3d seeond-clads for distances up to.three miles, and grade fares beyond that limit up to the standard per rail©. Goods Bates. Regarding i>he revised classification of goods' traffic,' it : is suggested that it should be published before' being brought into operation to give opportunity to those who consider that any particular oommodity should be put into a lower scale. Rates have not had ,so much effect upon the traffic as the facility of door-to-door conveyance. Reductions should be made with great care and caution; unless by reduction more traffic can be secured. Some rates, particularly. those applicable to coal, should be increased.

Statistics. It is suggested that, in the matter of statistical information, the New Zealand railways should come into line with the Australian railways. The statistics at present being compiled by the Dominion are not sufficiently wide to be of the greatest value, nor is full use being made of them. The statistics adopted by British railways are enumerated.

Refreshment Rooms. Many of the railway refreshment rooms were inspected; they are being conducted on good lines. It may be found desirable—it will be essential m time —to run. dining cars, or at least buffet cars, on some of the pnncipal expresses.

Publicity and Information.

Considerable activity is proposed in respect of publicity work m r.he next few years. There is great ueea for more vigorous and intensive publicity with'regard to the circulate,l ol information as to ordinary tourist and excursion train facilities, and generally in connexion with the activities of the Department. The £SOOO spent last financial year on publication and advertising is an insignificant amount viewed in the light of developmental possibilities.

Length. iftfrth Island main lines (Miles.) and branches .. 1151 Wbangarei .. .. 88 Kaihu .. „ .. 24 Giaborne 49 Total, .North Island ,. 1312 South Island main lines and 'branches ' .. 1588 . ... .. 36 6.1 • .. • ■ 56 |' . Total, South Island . 1741

1923-24. 1913-14. , ... • Per cent. Per cent. Earnings. of total. of total. Goods 56.60 54.65 'Ordinary - PassengerB 30.60 32.15 Season tickets 3.04 3.72 Paieele, luggfiisfo mails '5.83 . 5.S6 1.90 1.80 2,03, 1.82 1^kj&|pi!are.' .' ;:'7> Ae^ces' S0 v 78v - 48.65 •- 22.17. etc. ( 11,39 11.06 Buna% 11.17 8;23 SSSSTf^'f 4.08 0.46 3.30 Balance ayaji*)ile.f or' intereBtan(lV'oybier net r^harges 28.76 Defieit ' 1.10

£ Acguiaitiqa ef land, properly, d. eta, and in connerioa with ' railway -working 938,104 0 0 Amoonia paid for construction of lisw and worki open' lor : traffio .. ... 30,350,861 1 9 Amounts. paid for construction of iin«« and works (iachjding lands) not open for traffic .. 7,339,394 3 0 fioliing-stock— £ a. i. Ixxbomotrrea 3f*79,804 10 S Coaching ■took M 1,844,010 0 0 Freirht stock 4iM9,600 0 0 9,366.414 10 5 ifaBiifkoteriiiar ' *Dd,wpairing works and plantLand and bmMiag 140,000 0 V jfidqnarf aad plant 357,189 0 • 4ST, 139 « 0 Miaeellaneoua expenditure— Lake VTikii1 tipa etearu- • eis .. 41,350 11 1 Sawmills tod . •> equipment, ' , inchidirfghouse - f»ctory at • , SSinktoa 110,962 15 0 '« . ' . 154,615 1 Parchrte n>{ store*' (on -capital •Mount) - 102,905 8 0 « ' £0,788,821 9 3

North Island. Miles. No. 1, .. 719* No. 2, Western 4854 No. 3, Wellington 601i 1306 . Sonth Island. No. 1, Christchurch .. 878 No. 2, Dunedin • 486 No. 3, Southern i... 557J 1921'i