D.— 2.

Parcels and coaching traffic yielded £5,569 more than last year, and 15,768 more parcels were carried. In goods traffic substantial increases are shown under all headings, excepting cattle and wool. Cattle decreased by 6,040 head, and wool by 2,557 tons. The principal increases are—Sheep, 33,968; pigs, 10,519; timber, 12,339 tons; grain, 13,104 tons ; merchandise, 5,706 tons ; minerals, 48,203 tons. Wellington-Napier District contributed £339,881, against £309,919 last year, an increase of £29,962. Passenger traffic shows an increase of 203,158 passengers and 6,925 season tickets. Goods traffic shows increases under all headings, except cattle, wool, firewood, and merchandise. Wanganui-New Plymouth District contributed £238,918, as against £212,383 last year, an increase of £26,535. The passenger traffic shows an increase of 126,408 passengers and 391 season tickets. The bookings from this district to Wellington increased by 7,290, the revenue-increase therefrom being £3,499. The through bookings from New Plymouth to Wellington were 4,372 ordinary and 536 excursion, an increase of 1,419 and 84 respectively. Parcels and coaching traffic shows a satisfactory increase. In goods traffic there are decreases in cattle, sheep, chaff, wool, and minerals. The tonnage of butter and cheese forwarded from the district was—Butter, 8,437 tons ; cheese, 1,873 tons : as against 7,555 tons and 616 tons respectively last year. Auckland Section. The revenue from this section was £273,620, as against £236,342 last year, an increase of £37,278. The passenger revenue shows the substantial increase of £11,127, notwithstanding that there is a large falling-off in the suburban business due to the competition of the electric tramways. The location of the tram-lines through the business and residential streets gives the tramway company such advantages that, with its cheap and frequent service, it can command all the business en route. Regular travellers willingly pay a higher charge to be picked up and set down at the nearest street-corner to their houses or places of business than they would pay between the two railway-stations. It is impossible under present conditions for the railway to give a service which would divert any portion of the business from the tramway. The passenger traffic to Rotorua increased largely during the year, the figures being 16,956 against 10,895, an increase of 6,061 passengers and £2,916 revenue. There was also a good increase in the round-trip bookings, the figures being— 1903-4. 1902-3. £ £ Auckland to Auckland vid Thames ... ... ... ... 640 485 Auckland to Auckland vid Thames and Rotorua ... ... 956 606 Auckland to Auckland vid Hangatiki, Thames, and Rotorua ... 34 32 The business in the western suburban district (Avondale and Henderson) is steadily developing, Avondale showing an increase of 10,659 passengers. The revenue from parcels and coaching traffic increased by £3,893, and 14,480 more parcels were carried than last year. In goods traffic sheep decreased by 36,087 ; pigs, 84 ; chaff, 470 tons ; wool, 387 tons. Increases are shown as follows : Cattle, 1,854 head ; firewood, 936 tons ; timber, 12,449 tons ; grain, 10,512 tons ; merchandise, 1,638 tons; coal, 12,116 tons ; other minerals, 5,649 tons. The tonnage of butter forwarded was 5,100, against 4,351 last year. The revenue-increase from goods traffic was £21,467. Gisborne Section. The business on this section, which was only opened in July, 1902, shows a satisfactory expansion, the revenue for the year being £3,157 against £1,788 for nine months last year. Kaihu Section. The total revenue derived from this section was £6,714, as against £6,143 last year; increase, £571. There are satisfactory increases under nearly every heading, the principal being—Passengers, 3,723 ; firewood, 204 tons ; timber, 1,482 tons ; merchandise, 228 tons ; minerals, 166 tons. The passenger and coaching revenue increased by £249, goods by £316. Whangarei Section. This section shows a steady increase. The total revenue for the year was £23,028, as against £20,009, an increase of £3,019. The passenger traffic increased by 11,320 passengers and £494 revenue. In goods traffic increases are shown under nearly all headings, the principal being—Timber, 4,437 tons ; grain, 225 tons ; merchandise, 200 tons ; coal, 7,897 tons ; other minerals, 399 tons. The revenue-increase from goods traffic was £2,391. Kawakawa Section. The revenue from this section was £1,993, as against £1,972 last year. The passenger business increased by £114, but there was a slight decrease in the goods traffic.

11