2

D.—2

expended on extensions of railways which at present bring no additional traffic or revenue, while the expenses are increased by the additional length worked The estimated revenue for the year was £1,114,000, and the appropriations for working amounted to £707,905, leaving a net estimated revenue of ,£406,095, nearly £3,000 less than what has actually been realised. The passenger traffic, both m ordinary and season ticket-holders, has increased in a marked manner, although the year's statistics do not contain any Easter-holiday traffic. The passenger receipts have increased by £11,024. The traffic for the last thirteen years has been as follows : —

For the coming year the revenue is estimated at £1,140,000, and the expenses at £717,000, for 1,870 miles of line. A larger traffic and revenue are expected on account of the plentiful harvest and the general progress of the colony

Condition of Lines and Appliances. The character and capacity of the lines and appliances have, as hitherto, been improved during maintenance from working-expenses. Upon an application by the Government, we sold to the Government of Western Australia three engines and one hundred wagons. These were renewed in the usual course, and the cost has been charged to working-expenses. The" proceeds of the sale have been placed to the. credit of the working railways vote in accordance with the usual practice, and in'terms of the Eevenues Act The many improvements made from time to time m the road, structures, and appliances from working-expenses have added to the capacity of the railways, and have led to economies in working The rebuilding of locomotives has during this year for the first time been carried on upon a large scale In this process, engines of a more powerful type, and fitted with modern improvements, replace those dispensed with. The responsibilities and work in connection with this branch of the service have on this account very much increased. The funds placed at the Commissioners' disposal for the extension, of shops and machinery have been of great advantage m procuring facilities for carrying on this class of work. General. There is a general public sentiment abroad that the railways should pay a larger rate of interest on the cost of construction than is now done it should, however, be borne m mind that in making many of the lines the anticipated advantage was the settlement of the country rather than direct returns from the railways themselves. Under this somewhat vague special plea, capital has in many instances been expended by the colony on undertakings unlikely to pay any interest m the immediate future, and m some cases in ways that are prejudicial to efficient working, or which are hurtful to the revenue of the previous existing railways. The line now being made from Te Aroha to Grahamstown is a case in point. It opens up practically no new country and no new markets, it is likely to injuriously affect the present feeble revenue of the adjacent railways , it will add largely to the expenses of working Not only is no interest on the capital spent

Year. Miles. Revenue. Expenditure. Tonnage. Parcels, &c. Cattle, Sheep, &c. Passengers. Season-tickets. 79-80 80-81 81-82 82-83 83-84 84-S5 85-86 8G-87 87-88 88-89 89-90 90-91 91-92 1,172 1 277 1 319 1,358 1,396 1,477 1,613 1 727 1 758 1 777 1,809 1 842 1 869 £ 762,573 S36 454 892,026 953 347 961 304 1,045,712 1 047 419 998 768 994,843 997 615 1,095,570 1,121 701 1 115 432 £ 580,010 521 957 523,099 592 821 655 990 690,026 690,340 699,072 687 328 647 045 682,787 700,703 706,517 1 108,108 1 377 783 1 437 714 1 564,793 1 700,040 1 749 856 1 823 767 1 747 754 1 735 762 1 920,431 2,073,955 2,086,011 2 066,791 No. 180,331 286,865 316,611 341 186 359,896 347,425 349 428 372 397 399 109 399,056 405 838 413 074 430,216 No. 285 209 300,704 343 751 477 075 686 287 729,528 858 662 942 017 940,209 919 392 1 068,575 1 348 364 1 153,501 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 3,451 850 3,132,803 3,376,459 3 433,629 3,555 764 No. 5,077 6,499 7 207 8,621 9,036 8 999 10,717 11 821 11,518 11,817 12 311 13,881 16,341