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ANNUAL REPOET OF THE GENERAL MANAGER OF NEW ZEALAND GOVERNMENT RAILWAYS. New Zealand Government Railways, Head Office, Sir— , Wellington, 27th July, 1911. I have the honour to report upon the working of the open railways for the financial year ended the 31st March, 1911. The capital cost has increased from £28.513,476 to £29,606,546. The revenue was £3,494,182, against £3,249,790 last year. The expenditure for the year under review amounted to £2,303,272, against £2,169,474. The rate of interest on capital was £4 Is. 3d., as compared with £3 16s. last year. The revenue per train-mile was Bs. 6Jd., and the expenditure ss. 7fd., as compared with Bs. 2fd. and ss. 6d. respectively last year. The following extensions were opened during the year : — M. Ch. Hukerenui - Towai .. .. .. .. .. 4 39 Wellsford-TeHana .. .. .. .. .. 3 25 Huiroa-Te Wera .. .. .. .. .. ..7 0 Domett-Mina .. .. .. .. .. 3 64 Ngahere - Blackball .. .. .. .. 3 31 Lawrence-Big Hill .. .. .. .. 7 31 Broken River-Cass .. .. .. .. .. 15 30 44 60 The mileage added to the system was thus 44 miles 60 chains, making the total mileage open for traffic on the 31st March, 1911, of 2,761 jniles 25 chains, as against 2,716 miles 45 chains at the close of the previous year. During the year 11,200,613 passengers were carried, yielding a revenue of £1,104,295, and 222,104 season tickets were issued, the revenue derived therefrom amounting to £119,117. There was thus an increase of 59,471 ordinary passengers and £33,504 revenue, and of 22,733 season tickets and £18,868 revenue, over the traffic carried under these heads during the previous.year. 77,180 children and teachers and 66,695 adults travelled by school and factory excursions during the year, the revenue derived therefrom amounting to £9,489. 683,459 passengers travelled at holiday excursion fares, yielding a revenue of £155,445. The coaching and goods traffic has been well maintained during the year, and shows increases under all heads with the exception of horses, drays, wool, and grain. Increases. Coaching. —Parcels, 70,555 ; carriages, 219 ; dogs, 1,527. Revenue, £1,204. Goods.— Cattle, 34,436 head ; sheep, 784,529 head ; pigs, 33,449 head ; chaff, lime, &c, 18,644 tons ; firewood, 11,040 tons ; timber, 103,262 tons ; merchandise, 68,777 tons ; minerals, 169,129 tons. Total increase in goods and live-stock tonnage, 373,656 tons. Total increase in goods and miscellaneous revenue, £190,816. Decreases. Coaching. —Horses, 434. Goods. —Drays, 49 ; wool, 7,Bo4'tons ; grain, 31,170 tons. Considerable additions were made to the train services during the year with a view to affording greater facilities to the public and meeting the requirements of the traffic. The resultant increase to the train-mileage was 251,909 miles. The train accidents during the year were not of c serious nature, and only in one instance was there any injury to passengers, and in this case a passenger was killed by a stone falling from a hillside and striking a passing train. A goods-train was derailed through running into a slip at Utiku, and an engine and four wagons were derailed on the Otago Central line owing to flood-waters washing gravel over the rails. Eleven wagons on a goods-train on the Nightcaps Branch were derailed, causing some damage to the stock. The installation of electric tablet, telephones, and telegraph facilities, interlocking and signals and electric lighting, has made considerable progress during the year, and the rolling-stock and other working appliances were materially augmented. Messrs. A. and G. Price (Limited) have delivered four of the ten Class Ad compound locomotives included in the contract let to them in October, 1909, and are well forward with the balance, which will be delivered within schedule time. This firm were the successful tenderers for the manufacture of a further lot of ten Class Ad locomotives, let under contract during the year. It is gratifying to have to say that the whole of the locomotives manufactured by the firm under its various contracts with the Department have given every satisfaction in actual work, and have in all respects been up to the standard required by the specification.

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