D.—2,

ANNUAL REPORT OF THE GENERAL MANAGER OF NEW ZEALAND GOVERNMENT RAILWAYS. New Zealand Government Railways, Head Office, Sir, — Wellington, June, 1904. I have the honour to report upon the working of the ODen railways for the financial year ended the 31st March, 1904. The capital cost has increased from £19,081,735 to £20,692,911. The revenue was £2.180,641, against £1,974,038, an increase of £206,603. The net revenue has been £741,917, against £630,623, an increase of £111,294. The expenditure has been £1,438,724, against £1,343,415, an increase of £95,309. The expenditure per cent, of revenue was £65-98, as compared with £68-05 last year. The rate of interest earned on capital was £3 lis. Bd., as compared with £3 6s. Id. last year. The revenue per train-mile was 7s. 7fd., and the cost per train-mile ss. OJd., as against 7s. 3d. and 4s. lid. respectively last year. The following extensions have been opened during the year:— M. oh. Tahekeroa-Ahuroa ... ... ... • ... ... ... 4 68 Orepuki-Waihoaka ... ... ... ... ... ... 4 44 Poro-o-tarao-Taumarunui ... ... ... ... ... 28 24 37 56 The total mileage added to the system during the year under review was thus 37 miles 56 chains, making the total mileage open for traffic on the 31st March, 1904, 2,328 miles, as against 2,291 miles at the close of the previous year. During the year 8,306,383 ordinary passengers were carried, yielding a revenue of £652,080. and 129,919 season tickets were issued, yielding a revenue of £52,580, being an increase of 730,993 ordinary passengers and £75,551 revenue, and 11,488 season tickets and £3,411 revenue over the traffic under these heads in the previous year. 57,339 children and teachers and 54,344 adults travelled by school and factory excursions during the year, the revenue derived therefrom being £7,425, an increase of 9,751 children and teachers, 12,789 adults, and £1,374 revenue over the preceding year. 695,384 passengers travelled at holiday-excursion fares, yielding a revenue of £125,624, an increase of 93,370 excursionists and £22,345 revenue as compared with last year. The coaching and goods traffic has been well maintained during the year, a very considerable expansion of business having resulted under all heads, except sheep and wool. Increases. Coaching.— -Parcels, 67,038; horses, 1,892; carriages, 410; dogs, 2,614, Revenue, £22,879. Goods. —Cattle, 4,974 ; pigs, 8,424 ; drays, 419 ; chaff and lime, 11,470 tons ; firewood, 5,568 tons; timber, 73,704 tons; grain, 102,077 tons; merchandise, 24,459 tons ; minerals, 139,897 tons. Revenue, £104,762. Total increase in goods and live-stock tonnage, 340,956 tons. Decreases. Sheep, 64,955 ; and wool, 14,994 tons. The decrease in sheep and wool was not unanticipated, in view of the enormous increase in the previous year's business under these heads, and also of the severity of the last winter, which resulted in heavy mortality among the flocks in the Canterbury and Otago districts. The whole of the engines and rolling-stock in service on the Auckland and Wellington-Napier-New Plymouth Sections have been equipped with the Westinghouse brake, and satisfactory progress is being made with the equipment of the South Island stock, of which 93 locomotives, 212 cars, 32 brake-vans, and 1,310 wagons were so fitted on the 31st March, 1904. All new stock built is fuily equipped with the Westinghouse brake in our own shops before being put into service. Six engines, 63 bogie-cars, 18 bogie brake-vans, and 426 wagons were built in the railway workshops and added to the stock during the year, while 11 engines, 63 bogie-cars, 15 bogie brake-vans, and 496 wagons were under construction on the 31st March last. Ten Wp Class tank engines were being built under contract by Messrs. A. and T. Price, at Thames. The new Railway Offices at Wellington were completed and occupied during the year. They are found to be very satisfactory, and provide up-to-date accommodation for the head and departmental offices which was much required, and is greatly appreciated by the staff. Several slips and floods have occurred during the year, but I am pleased to record that there has been no train accident of a serious nature.