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The following figures give a comparison of the railway traffic in 1895 and 1902 : — 31st March, 1895. 31st March, 1902. Increase. Passengers (number) ... ... 3,905,578 7,356,136 3,450,558 Season tickets ... ... 28,623 100,778 72,155 Parcels ... ... ... 444,981 677,804 232,823 Horses .. ... ... 11,185 11,926 741 Carriages ... ... ... 750 1,506 756 Dogs ~ ... ... ... 23,517 30,404 6,887 Drays ... ... ... 705 1,564 859 Cattle ... ... ... 40,890 83,458 42,568 Sheep ... ... ... 1,519,921 2,724,860 1,204,939 Pia S ' ... ... 43,292 55,159 11,867 Chaff, lime (tons) .. ... 36,972 86,378 49,406 Wool ... ... ... 103,328 101,878 Dec. 1,450 Firewood ... ... ... 85,102 100,236 15,134 Timber ... ... ... 198,578 427,153 228,575 Grain ... ... ... 388,556 813,345 424,789 Merchandise... ... ... 377,938 556,395 178,457 Minerals ... ... ... 857,917 1,443,792 585,875 Total tonnage .. ... 2,048,391 3,529,177 1,480,786 Total revenue ... ... £1,150,851 £1,874,586 £723,735 It will be at once apparent that with a business which is expanding so rapidly, it is imperatively necessary to make such improvements in the running track as will enable engines of the heaviest and most powerful type to be used on the main line and on all important branches without restriction, otherwise the best results of working cannot be obtained. I, therefore, feel it incumbent on me to give prominence to the matter and again strongly emphasize the urgent necessity for ample provision being made to enable the relaying of the track and equipment of the lines with safety-appliances being undertaken at a more rapid rate than at present. Appended hereto are the reports of the Chief Engineer, Chief Mechanical Engineer, Chief Traffic Manager, and Stores Manager. I have, &c, T. Eonayne, To the Hon. Minister for Eailways. General Manager.

APPENDIX B. ANNUAL REPORT UPON THE WORKING OF THE LOCOMOTIVE BRANCH, 1901-2. Sir, — Chief Mechanical Engineer's Office, Wellington, 9th June, 1902. I have the honour to report upon the working of the Locomotive Department for the year ending the 31st March, 1902. The locomotives, cars, brake-vans, wagons, cranes, tarpaulins, and machinery have been maintained in good working condition, and improvements have been made to increase the efficiency of the plant and appliances. During the year under review the locomotive stock has been substantially increased by fiftyseven locomotives from Great Britain and America, and two Class B heavy-goods locomotives built in our own workshops. This additional power was absolutely necessary to enable the Department to cope with the increasing traffic. Two small locomotives were sold, and are being replaced by engines of greater tractive power. The locomotives added during the year increased the tractive power by 38 per cent. New locomotives now under construction in our own workshops, together with conversions and boilerrenewals in hand, will still further increase the tractive power by 8 per cent. The replacing of old types of locomotives by those of more suitable design and greater tractive power is being pushed forward as rapidly as practicable. Considerably more mileage was run during this year than in the preceding financial year, the train miles being 445,389 (equal to 9-64 per cent.), and engine miles 745,999 (equal to 11-93 per cent.), in excess of year 1900-1 ; while a comparison of train and engine mileage with that of ten years ago shows an increase of more than two million train and three million engine miles. The following additions have been made to workshops: Newmarket, car- and wagon-lifting shed, which will be also used for Westinghouse-brake fitting; Eastown, erecting-shop and car and wagon shop extended ; Petone, addition to iron-foundry ; Addlngton, new iron-foundry and new fettling-shop and store. The North Island contract for the equipment with Westinghouse automatic brake of engines and rolling-stock has made good progress on Wellington-Napier-New Plymouth Section, where this continuous brake is now in regular use on principal trains. Fitting of brakes on Auckland Section will shortly be proceeded with. On the 31st March, 1902, there were in the North Island ninety-nine locomotives, 191 carriages, fifty-three brake-vans, and 1,742 wagons equipped with Westinghouse brake. In the South Island, sixty-five locomotives, seventy-two carriages, twelve brake-vans, and five wagons similarly equipped. I would again urge the importance of equipping with Westinghouse brake all rolling-stock on the Hurunui-Bluff Section. The boiler repairs and renewals are well up to date. The work in hand at the end of the year consisted of two F, three Fβ, and two T locomotive boilers. - During the year 454 car, van, wagon, and crane axles have been renewed.

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