D—2.

Dunedin-Mosgiel : A large proportion of the earthworks between Dunedin and Caversham has been completed. The foundations and abutments of bridges between these places are ready for the superstructures, which are being made under contract. The new Caversham Tunnel is driven over 8 chains at the north end, and driving at the south end will shortly be started. Earthworks between Cattle-yards and Abbotsford are being pushed on, and will soon be started at the Wingatui end. The new' Chain Hills Tunnel will be commenced at an early date. The new engine depot, Dunedin, is being pushed on. New Plymouth Railway deviation, of about If miles, has been completed, and opened for traffic. It has already proved a great assistance to the traffic. Expenditure. —The expenditure on maintenance, including general charges, amounted to £638,560, equal to nearly £259 per mile. The increase is mainly due to additional staff necessitated by the development of traffic, the maintenance of telegraph-lines not previously charged under this head, and to the increase in the charges for maintenance of buildings. Mileage. —The mileage open for traffic on 31st March was 2,471 miles 20 chains. 17 miles 30 chains were opened during the year. Private Sidings. —On the 31st March there were 322 private siding rights, with an annual rental of £5,612. New rights granted during the year were fourteen. Leases. —The number of leases on the 31st March was 2,771, with an aggregate annual rental of £18,793. New leases issued during the year, 378. Staff. —Maintenance working staff, 3,849 men; office staff, 123 : total, 3,972. Signal and Electrical. Fixed Signals —During the past year seven stations have been fitted with fixed signals—viz., Ruakura, New Lynn, Bonny Glen, Itata, Mataroa, Amberley, and Waikari. The expenditure for the year on new work was £327 11s. 6d., and for maintenance £661 Is. 4d. Interlocking of Points and Signals. —The signalling and interlocking at stations 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 : Timaru, Waiareka, Oamaru, Pukeuri, Pelichet Bay, Dunedin (permanent scheme electro-pneumatic system), Paparangi, Stratford, and New Plymouth. The work has also been commenced at Lepperton Junction, Milton, and Clinton, rearrangement of Newmarket (to suit double-line working), Parnell Tunnel, Remuera, Green Lane, Ellerslie, and Ngahauranga. The expenditure for the year on new work was £21,141, and for maintenance £3,501 19s. Id. Block-working. —The electric train-tablet system of block-working has worked with every satisfaction. During the year eighty-two tablet instruments and 160 miles of line have been fitted and brought into operation, embracing the following sections : Waihi to Paeroa, Masterton to Woodville, Oamaru to Pukeuri, and Mosgiel to Gore. The following have been converted into switch-out stations : Eyreton Junction, Puketeraki, and Westmere, and service siding near Burnside and Morningside installed as tablet stations. The equipment of the sections from Marton to Mataroa, Woodville to Damicvirke, and Frankton to Taumarunui is in progress. Automatic tablet-exchanging apparatus has been installed at nineteen additional stations, and is giving every satisfaction. The installation of the Sykes lock and block system for the double lines between AucklandPenrose, Wellington - Lower Hutt, Heathcote-Christchurch, and Christchurch-Rolleston has been commenced. Telegraph and Telephone Facilities. —During the year 518 miles of wire and ninety miles of poles have been erected and brought into use, also various alterations and additions have been made to improve existing lines. The construction of new Morse telegraph-lines between Wanganui and Mataroa and Auckland and Taumarunui, ready for the opening of the Auckland-Wellington Main Trunk line, is in progress; forty-nine telephones have been fixed and brought into operation, twenty additional and seven extension connections have been made with the public telephone exchanges, and six portable telephones brought into use. Seven old-pattern telephones have been replaced by new and modern ones, and thirteen extension telephone-bells installed and seven telephones have been fitted in brake-vans. Greater facilities are still needed in some of the districts to suit the more pressing requirements. The expenditure on the electric block-working, telegraph, and telephone facilities for the year was: New work, £19,584; maintenance, £8,564 15s. Bd.; public telephone exchange connections, £1,764 10s. Electric Light. —The electric light at stations where installed is giving every satisfaction. During the year light has been installed at Mataura Station and the signals at Dunedin and Stratford, and is in progress at Invercargill Workshops and the signals at New Plymouth Station.

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