r>^-2

IV

£35,908; Westland, £2,196; Nelson, £650; and Picton, £1,891. The cost of maintenance has decreased on the Kawakawa Section, £818 ; Westport, £616. , The cost of maintenance and equipment of the lines has been increasing annually for the past ten years. This is largely due to the change in the circumstances of the colony. The era of prosperity entered upon in 1895, and continued uninterruptedly since that date, has resulted in such an enormous increase in the railway traffic as compared with the business done in 1895, that the demand for transport facilities has entirely outgrown the capacity of the lines as originally laid and equipped. The adoption of a heavier standard of rails and the strengthening of the various structures to admit of the employment of engines of greater power and rolling-stock of greater capacity, both of which are essential to deal satisfactorily with the large traffic that it has for some time past been apparent the New Zealand Government Railways will require to handle, became matters of paramount importance. Works connected with the betterment of the lines have therefore been vigorously pushed on during the last few years, and as a consequence the expenditure has shown an upward tendency. The condition of the lines to-day is, however, better than at any period in the history of the colony, and the time may confidently be looked forward to when as a result of the judicious expenditure that has been made in their betterment the cost of maintenance will decrease. The cost of carrying out the works and of maintaining the lines and their equipment has been materially affected by the advance in the price of material and rate of wages. This colony is not, however, singular in this respect, as quite recently I observed that the cost of maintaining the leading railroads in the United Kingdom and America was being considerably affected from the same cause,, and that many railway companies have been making pointed reference to the effect the increased cost in the materials has had on the net result of operating their lines. Additions and improvements to lines and structures costing £20,362 which might fairly have been debited to capital have been made during the year and charged to working- expenses. increased expenditure in the Traffic Branch is due to the additional trainmileage consequent on improved train-services, extra staff to meet the requirements of the large expansion of the business done during the year, the working of the interlocking and tablet systems, reduction in the daily hours of guards and signalmen, and the increase in wages and allowances to Division 2. In the Locomotive Branch the increase is due to extra train-mileage, heavy renewals and repairs, increased consumption and cost of coal, reduction made in the hours of drivers and firemen, increase in the staff, and also in the wages and allowances to members of Division 2. The increase in the cost of management is mainly incidental to the scale increase of salaries of the staff under the Classification Act. The sum of £308,893 was expended under head " Additions to Open Lines " and charged to Capital Account. Of this £200,843 was expended on rolling-stock, tarpaulins, Westinghouse brake, machinery for workshops, and cranes. The roll-ing-stock in respect to which the charges were made consists of 3 locomotives, 59 carriages, 10 brake-vans, 95 bogie and 240 four-wheel wagons, 625 tarpaulins, and 2 cranes completed on 31st March last; and 30 locomotives, 112 carriages, 15 brake-vans, 139 bogie and 748 four-wheel wagons, incomplete but in hand on that date. £108,050 was spent in providing telegraph and telephone facilities, signals, and interlocking, tablet, and safety appliances, bridges, fencing, ballast and quarry plant, sidings, purchase of land, furnaces for foot-warmers, weighbridges, and departmental offices. DUPLICATION OF LINEH. On duplication-work the following sums were charged to Capital Account under the provisions of the special Acts relating thereto passed in 1903, 1904, and 1905 respectively, viz :— £ Wellington-H-utt duplication-works .. .. .. .. .. 17,001 New Hutt road, including purchase of land for same .. .. .. 18,957 - " '-' 35,958 Auckland-Penrose duplication-works .. .. ... .. .. 43,520 Duhedin-Mosgiel duplication-works and deviation of line .. - .. 38,025 Addington-Rolleston duplication-works .. .. .-..-- .. ■ 412 £81,957