D.--1A

ANNUAL EEPOET ON WOEKING EAILWAYS.

The General Managee, New Zealand Railways, to the Hon. the Minister for Public Works. Sir,— I have the honour to report upon the opened railways for the financial year ending the 31st March, 1887. The length of line opened at the end of the year was 1,727 miles. The Waimea Plains Railway was taken over to be worked by the Government on the 14th November, 1886. According to the terms of purchase the line was deemed to have become the property of the colony from the Ist April, 1886, and the revenue and expenditure of the company from that date to the 13th November, 1886, have been incorporated in the annual accounts. The total length of railway opened during the year, including the Waimea line, was 114 miles. Thirty-six new stations have been added. The net revenue earned represents £2 6s. per cent, on the estimated cost of the opened lines. The highest rate is paid by the Greymouth line, £5 10s. 2d. per cent.; and the next highest by the Westport line, £4 16s. Bd. per cent. The traffic under the heads of passengers, parcels, live stock, wool, and minerals has increased, while that of timber, grain, and merchandise has decreased. It is to be regretted that the extensive reductions in the rates which have been carried out should have been followed by a falling-off in the imports of merchandise, diminishing the most profitable railway traffic, and that the much smaller production of grain, due to the low market prices, and the lessened demand for timber, due to the cessation of building and settlement, should have occurred at the same time. The grain-traffic loss has been superseded by an increased traffic in live stock; but, the low rates at which the latter traffic and that of minerals is necessarily carried, do not return a revenue at all equal to that lost oil the classes of traffic which have fallen off. The traffic was greatly affected during the early part of the year by the heavy and continuous floods in the South. A fire in Dunedin caused the loss of a goods-shed, and heavy losses in claims and expenses. Following are the comparative tables of traffic and expenses :—

Comparison of Traffic and Revenue for Eight Years.

The traffic in local productions of the colony during the past eight years is as follows : — ~r , m . , ~ ■ ,r- i Horses Sheep Wool. Timber. Grain. Minerals. and Cattle . and p^. 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 ... 5.1,703 197,231 367,428 510,088 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 1886-87 ... 82,963 175,581 345,254 719,579 46,600 904,582 Details of the traffic are shown on Eeturn No. 5. The number of passengers has slightly fallen on the Auckland Section, but the revenue from them has increased; the numbers have increased chiefly on the Napier, Wellington, and Wanganui Sections. The live-stock traffic has increased on the Wanganui, Napier, and Hurunui—Bluff Sections. Live stock, chaff, firewood, timber, mineral, and merchandise traffic has fallen off on the Auckland Section, owing to the commercial inactivity prevailing in the district. The agricultural produce alone shows an increase : this traffic is chiefly carried from Auckland inland by rail. The rates also being lower the loss of goods revenue is large, amounting to £12,344. The cessation of the large outlay on works between Morrinsville, Lichfield, and Te Aroha towards the close of the previous year tends to make the comparison unfavourable. The traffic on the Napier and Wellington Sections has been stimulated by the outlay on ■extensions; on the Hurunui-Bluff Section the diminishing expenditure upon extensions has tended to lessen the general traffic. The wool traffic has increased very largely on the Napier, Wellington, Wanganui, and Huru-nui-Bluff Sections. During the year exceptionally heavy floods did much damage north of Christchurch, at Addington, between Oamaru and the Bluff, and on the Little River and Otautau branches: such heavy floods have not occurred since 1879. Great damage occurred at the Taieri, causing a suspension of the traffic, loss of revenue, and a heavy outlay on repairs.

III

Tear. Miles. Revenue. Expenditure. Tonnage. Parcels, &c. .Cattle, Sheep, &c. Passengers. Season Tickets. 79-80 80-81 ■81-82 82-83 83-84 84-85 85-86 86-87 1,172 1,277 1,319 1,358 1,396 1,477 1,613 1,727 £ 762,573 836,454 892,026 953,347 961,304 1,045,712 1,047,419 998,768 £ 580,030 521,957 523,099 592,821 655,990 690,026 690,340 699,072 1,108,108 1,377,783 1,437,714 1,564,793 1,700,040 1,749,856 1,823,707 1,747,754 No. 180,331 286,865 316,611 341,186 359,896 347,425 349,428 372,397 No. 285,209 300,704 343,751 477,075 686,287 729,528 858,662 942,017 No. 2,967,090 2,849,561 2,911,477 3,283,378 3,272,644 3,232,886 3,362,266 3,426.403 No. 5,077 6,499 7,207 8,621 9,036 8,999 10,717 11,821