D.—2

IX

ANNUAL REPORT OF THE GENERAL MANAGER OF NEW ZEALAND GOVERNMENT RAILWAYS. New Zealand Government Railways, Head Office, Sir,— Wellington, June 29th, 1907. I have the honour to report upon the working of the open railways for the financial year ended the 31st March, 1907 :— The capital cost has increased from £22,498,972 to £23,504 272. The revenue was £2,624,600 against £2,349,704, an increase of £274,896. The net revenue was £812,118 as against £728.465 last yea/, an increase of £83,653. The expenditure for the year under review has been £1,812,482 against £1.621,239, an increase of £191,243. The expenditure per cent, of revenue was 69-06 as compared with 69-00 last year. The rate of interest on capital was £3 9s. Id. as compared with £3 4s. 9d. last year. The revenue per train-mile was 7s. 9d. and the expenditure per train-mile ss. 4Jd. as compared with 7s. 3|d. and ss. OJd. respectively last year. The following extensions have been opened during the year : — M. th. Omakau-Alexandra .. .. .. .. .. 17 68 Kohatu-Tadmor .. .. .. .. .. .. .. 10 28 Otarama-Broken River .. .. .. .. .. 652 EtV-lton-Domctt .. .. .. .. .. .. 834 Hokitika-Ruatapu . . .. . . . .. .. 665 50 7 The total mileage added to the system during the year was thus 50 miles and 7 chains, making the total mileage open for traffic on 31st March last 2,456 miles as against 2,406 miles at the close of the previous year. During the year 9,600,786 ordinary passengers were carried, yielding a revenue of £823,067 and 165,504 season tickets were issued, the revenue derived therefrom being £68,986. There was thus an increase of 774,404 ordinary passengers and £99,201 revenue and of 17,515 season tickets and £5,980 revenue over the traffic carried under these heads during the previous year. 55,881 children and teachers and 39,783 adults travelled by school and factory excurisons during the year, the revenue derived therefrom being £6,515; The falling-off under this head was undoubtedly the result of the attractions of the New Zealand International Exhibition, which induced parties to avail themselves of the very cheap through fares prevailing and to visit Christchurch and the Exhibition in preference to following the usual practice of organizing local picnics and travelling thereto atthe school and factory fares. 856,412 passengers travelled at holiday excursion fares, yielding a revenue of £194,185, an increase of 118,737 excursionists and £53,245 revenue as compared with the previous year. The coaching and goods traffic has been well maintained during the year, and shows substantial increases under all headings with the exception of grain. Increases. Coaching. —Parcels, 37,892 ; horses, 762 ; carriages, 64 ; dogs, 1984. Revenue, £9,270. Goods. —Cattle and calves, 13,720 ; sheep, 1,312,316 ; pigs, 22,520 head ; 146 drays ; chaff, lime, &c, 23,432 tons ; wool, 12,075 tons ; firewood, 2,726 tons ; timber, 33,302 tons ; merchandise, 83,796 tons ; minerals, 196,898 tons. Revenue, £160,445. Total increase in goods and live-stock tonnage, 409,398 tons. Decrease. Grain, 1,551 tons. Large additions were made to the train services during the year, included in which are extra trains between Auckland and Henderson and between Wellington and Upper Hutt. A daily train for workmen from Belfast to Christchurch has been put on, and a tri-weekly rail and coach service instituted between Greymouth and Christchurch, making the through journey in one day. The extra facilities afforded represent an addition of 341,881 miles to the train-mileage of the preceding year, bringing the total train-mileage for the year under review up to 6,755,454 miles. Steady progress is being made in interlocking points and signals, installation of electric tablet and improvement of railway telegraph and telephone facilities, all of which tend to increase the safety of railway working. In anticipation of the increased traffic likely to result from the International Exhibition, opened at Christchurch in November, 1906, special arrangements were made for the running of additional fast trains between Oamaru and Christchurch, with a view to relieving the ordinary mail and express trains of the traffic between stations north of Oamaru and Christchurch. It was, however, found that after the first rush of business incident il to the opening of the Exhibition and the Christchurch Carnival week was over that the two through trains were quite capable of dealing satisfactorily with the business offering, and the Oamaru-Christchurch special service was discontinued..

ii—D. 2.