D.—l

VII

A pleasing feature in connection with the increased amount asked for under this vote is the demand for trucks specially fitted for bringing dairy produce to ports for shipment; also an additional supply of trucks specially designed for carrying frozen meat. The results of last year's working were not equal to those of the previous year. The total receipts during 1892-93 amounted to £1,181,521, against £1,172,792 for 1893-94; and the net profit, after deducting working-expenses, amounted to ,£437,434 in the latter year against £449,380 in the former —a deficiency of £1 1,946. This, in the face of an increased capital expenditure of over £400,000, and an increase of sixty-one miles in the length of line worked, cannot be regarded as a very satisfactory result. The percentage return on the total capital invested in the railways also declined from £3 Is. per cent, to £2 17s. 9d. per cent. The shortage in the receipts was doubtless due to the poor harvest, which had the effect of diminishing the tonnage of grain carried, as compared with the previous year, by 112,446 tons. STATE CONTROL OF RAILWAYS. During the late general election the question of the control of the railways engaged public attention from one end of the colony to the other, the majority of the electors being in favour of the Government having sole control. A large section favoured the reconstruction of the Board to provide for a Minister acting with the Commissioners, whilst a few favoured the continuance of the control of the railways by the Railway Commissioners. The demand for a change in the railway administration being so general, the Government considered it advisable to have an infusion of new blood on the Board, and, on the engagement of Messrs. Maxwell and Hannay expiring, Messrs. Ronayne and Scott were appointed to take their place. These appointments were made for a period of nine months only, leaving Parliament untrammeled to decide as to the future management of the railways. In the reappointment of Mr. McKerrow as Chief Commissioner a break in the continuity of the control was avoided. In not reappointing Messrs. Maxwell and Hannay we wish it to be clearly understood that no reflection was intended in regard to their competency as railway experts. The refusal to reappoint them was owing to the fact that the policy which had been pursued in regard to the management of the railways did not meet with general approval, and a change in the personnel of the Commissioners was considered advisable. The law under which they were appointed contemplated that at the end of the engagement of the Commissioners the Government of the day and Parliament should be able to review the position—the non-political control of the railway system being purely experimental. The course adopted has proved beneficial, for, as will be seen by reference to the estimates, a substantial reduction in the cost of working has been made, the railways are being worked efficiently, the general public is satisfied, a slight change in policy has been effected, and a better feeling exists on the part of the railway employes. The passing of the Government Railway Bill of this session will, however, restore the railways to popular control, and the result will, I feel sure, fully justify the change. The lesson taught in the past must be borne in mind, and those who have worked to restore to the people the control of the railways should not forget what led to the Railways Act of 1887 being passed, and under which for six years the Parliament and the people have been subordinated to three irresponsible Commissioners. Firmness in resisting unreasonable demands for reductions in the tariff will be essential, and fairness and tact in dealing with the employes imperative. It has been urged that concessions can be made in respect to promoting local industries and in the carriage of lime and manures, so as to increase the natural products, and that the reduction made will be more than compensated for by the increased freights. It has been further urged that by a reduction in excursion rates and passenger-fares the increased number travelling will enlarge the revenue, and that without entailing any material augmentation in the working-expenses. Great responsibility will devolve upon the Minister for Railways, and the greatest caution will require to be exercised, for, whilst it is necessary to bear in mind that the railways have been constructed for the convenience of the travelling public and the promotion of settlement, yet at the same time the question of revenue must not be overlooked, for a serious reduction in the railway revenue would mean additional burdens on the people generally. In justice to the Railway Commissioners, and in fairness to all concerned, the Government will, on assuming control of the railways, have a thorough examination made both of the permanent-way, the rolling-stock, and the bridges.