D.—l

IV

The traffic in local productions of the colony during the past seven years is as follows :— Wool. Timber." Gram. Minerals. J^^ J^ Tons. Tons. Tons. Tons. No. No. 1879-80 ... 41,895 149,428 240,144 321,060 30,393 260,816 1880-81 ... 42,387 169,695 421,142 406,266 27,230 280,683 1881-82 ... 44,681 192,905 375,725 433,659 32,511 319,837 1882-83 ... 51,703 197,231 367,428 510,088 37,455 449,470 1883-84 ... 62,066 183,449 432,223 574,312 39,230 656,612 1884-85 ... 68,523 178,909 414,590 618,512 43,096 696,790 1885-86 ... 74,778 202,572 413,847 669,081 46,152 822,028 Particulars in greater detail of the last two years' traffic will be found in Eeturn No. 5. It will be observed that the agricultural produce traffic has remained stationary. The diminished area of land under grain-crop in the Middle Island during last season must lead to a diminished traffic and revenue under this head for the current year. The live-stock traffic in all parts of the colony shows a rapid growth ; and there is every reason to expect that it will continue to increase. Hurunui-Bluff shows the greatest growth in this class of traffic ; Auckland, Wellington, and Wanganui follow next in order. A large increase in the wool traffic has occurred almost exclusively on the Napier and Hurunui-Bluff Sections. The general merchandise traffic shows an increase on the Auckland, Napier, and Wanganui Sections, but a marked decrease on the Wellington and Hurunui-Bluff. The timber traffic has increased very largely on the Napier Section, and in a less degree on Auckland, Wellington, and Wanganui, but is practically stationary on the Hurunui-Bluff. The traffic in native brown coals has decreased on the Hurunui-Bluff Section notwithstanding reduced rates for carriage, the West Coast and Newcastle coals being apparently preferred by the public. On the Auckland Section it has slightly increased. On the Greymouth and Westport Sections the mineral traffic has increased largely. During the past two years large reductions have been made in railway rates, chiefly affecting local productions of various kinds, as agricultural produce, agricultural lime, native coals, timber for export, sheep and pigs, agricultural implements, cheese and milk, grass seed, flax, &c, and in passenger fares and others. Particulars of these alterations will be found in the table No. 32. While, therefore, the traffic has grown, there has not been a corresponding increase in the gross revenue. By the exercise of economy, however, and owing to the great improvement in the conditions of the lines made and the better appliances for working available, during the past five years the expenses have been kept down, so that the net revenue for the year is £357,078, against- £355,685 for the previous year. The lines and rolling-stock have been maintained in good order, and in many respects have been improved. There have been no serious mishaps during the year, but it is as well to bear in mind that the railway over the Taieri Plain is liable to damage at present, which may seriously affect both the revenue and expenditure. In Auckland the new passenger-station building and yard have been opened, with great advantage to the public and the department. The goods-station re-arrangement is now being completed. At Wellington the passenger-station removal has been completed, and the re-arrangement of the goods-yard nearly so. Increased workshop accommodation and machinery have been found necessary at Dunedin, Invercargill, Napier, Wanganui, and Wellington, and have been provided for. The construction of carriage and wagon stock in the colony has been successfully carried on in the various shops. A contract for building ten locomotives in the colony has been let to a Christchurch firm, and is now being executed. Colonial-made lubricating oil has been introduced as an experiment for the rolling-stock, and its use, so far, promises to be economical. The ticket-accounting, formerly done by the Audit Department, is now conducted by the Eailway Accountant, and the Audit Department has ceased to audit the receipts of railway revenue, the audit and inspection conducted by the Eailway Department being considered complete and efficient. It is desirable to bear in mind the need for restricting the increase in the numbers of level crossings, and for increased care in their location and dimensions. It would be well that the public, as proprietors and users of the railways, should be alive to the important bearing these features have on the general safety of life and property on the railways. It is also desirable to continue to bear in mind the need to restrict the stations and stoppingplaces on the score of public safety, convenience, and economy. Too many stations make the line more unsafe and expensive to work, and less convenient to the general public, without giving any adequate return of revenue. It often happens that demands are made which, if complied with, would sacrifice the convenience of extensive districts for comparatively insignificant local advantages. It is desirable that the public should recognize that, in the general interest, many of these demands should not be agreed to. The usual tables are attached, giving the details of traffic, revenue, and other statistical information. The conduct of the staff has been satisfactory, and organization for working is, as a rule, very complete and satisfactory. J. P. Maxwell, Wellington, 13th May, 1886. General Manager.