D.—2

5

The cost, which has been charged to Capital Account, amounts to £79,777. Doubling Auckland-Penrose Baihvay. —Surveys in connection with this work have been put in hand, and as soon as these are completed the work will be proceeded with. Hutt Boad and Bailway Improvement. —These works have been proceeded with in a satisfactory manner. The line between Petone and Lower Hutt has been doubled, and new buildings and yards are being provided at these stations. Quarries have been opened out at Pencarrow, from which stone will be taken for protective works along the beach between Wellington and Petone. A wharf has been built, and tenders will be invited for quarrying and delivering stone from Pencarrow to the sites where required along the railway. Expenditure. —The expenditure for maintenance was £504,482, equal to about £215 per mile, an increase of about £3 per mile over the preceding year. Mileage. —The mileage open for traffic on the 31st March was 2,374 miles 17 chains. The length opened during the year was 45 miles 56 chains. Private Sidings. —The total number of siding rights current at end of year was 293, with an annual rental of £4,987. Thirty-one new rights were issued. Leases. —The total number of leases current at the end of year was 2,389, with an annual rental of £23,676. The number issued during the year was 350. Staff. —The working staff consisted of 2,982 men; office staff, 98 : total, 3,080 persons. Fixed Signals. —During the past year five stations have been fitted with fixed signals—Mount Albert, Hayward's, Orari, Eavensbourne, Wallaeetown. The expenditure for the year on new work was £183 lis. Bd., and for maintenance £800 ss. 4d. Interlocking of Points and Signals. —The signalling and interlocking at stations where installed has worked with the most satisfactory results. The following stations have been fully equipped with signalling and interlocking, and brought into operation during the year: Newmarket, Penrose, Greymouth, Palmerston North, and Anderson's Bay Eoad Crossing, Dunedin. The work has also been commenced, and is well in hand, at Woodville, Te Aro, Petone, Lower Hutt, and Christchurch. The expenditure for the year on new work was £13,607 Bs. 4d., and for maintenance £1,113 14s. Bd. Block-working. —The electric train-tablet system of block-working on the sections where installed has worked with every satisfaction. During the year sixty-six tablet instruments and eighty-five miles of line have been fitted up and brought into operation, embracing the following sections : Auckland to Onehunga, Newmarket to Henderson, Penrose to Mercer, Lyttelton to Heathcote, Ida Valley to Omakau, Westport to Granity, and Weedon's Station. The equipment of the sections from Mercer to Frankton, Hawera to New Plymouth, also Awapuni and Awapuni Eacecourse Stations, is in progress. The staff-and-ticket system of block-working has been extended from Mangaweka to Taihape. Telegraph and Telephone Facilities. —During the year 183 miles of wire have been erected and brought into use; also various alterations and additions have been made to improve existing lines. The construction of new telephone-lines between Hawera and New Plymouth, Mercer and Frankton, Eketahuna and Hukanui is in progress. One additional Morse instrument and fifty-five telephones have been fixed and brought into operation; also thirteen additional connections and five extensions have been made with the public telephone exchanges, and three portable telephones brought into use. Twenty-seven old-pattern telephones have been replaced by new and more modern ones. Greater facilities are still needed in some of the districts to suit the more pressing requirements. The expenditure on electric block-working, telegraph and telephone facilities, for the year was: New work, £7,004; maintenance, £7,258. Electric Light. —The electric arc lights at Wellington and Bluff Station yards are giving every satisfaction. The Bluff Station has been fitted up with electric light, and the fitting-up of Port Chalmers Station and wharves is nearly completed. I attach the usual returns. Locomotive. Mr. A. L. Beattie, Chief Mechanical Engineer, reports as follows : — The engines, rolling-stock, machinery, plant, and appliances have been maintained in good and efficient working-order. Locomotives. —The number of locomotive engines on Ist April, 1904, was 377; and the number on 31st March, 1905, was 389. Two old small tank engines were sold, and 14 new engines were built, 7 of these being built in New Zealand Government Eailway Workshops and 7 by Messrs. A. and G. Price of Thames. The new locomotives, together with boiler renewals, increased the total tractive power 204,568 lb., equal to 5-73 per cent. ; the new engines building and boilers under construction will result in considerable further increase.