7

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thoroughfare in the Wellington City Council, which body has the largest interests involved. The apportionment of the charges as fixed [by the Commissioner will also be gazetted in due course. During the year an extension of about three-quarters of a mile of the double line between Dunedin and Mosgiel was opened for traffic, and steady progress has been made with the piercing of the Chain Hills tunnel. The bad ground met with interfered materially with the boring operations, but as more favourable indications are now in evidence better progress is anticipated from now onwards to the completion of the tunnel, of which some 15 chains remain to be bored. Considerable progress has been made in connection with grade improvements in the North Island. On the Main Trunk line the improvements between Buckland and Tuakau, and at Pukekohe, have been completed, and a commencement made at easing grades between Tuakau and Pokeno. On the Wanganui - New Plymouth line the earthworks for the Manawapou Viaduct improvement are finished as far as practicable pending completion of the viaduct, construction of which is in hand. The reclamation of land in Mechanics Bay, Auckland, is in hand, and the sum of £11,089 was paid to the Auckland Harbour Board for reclamation carried out by the Board under agreement with the Railway Department. Messrs. Price (Limited) delivered during the year seven Ad locomotives constructed by them under contract, and have still to construct thirteen engines of the same type under existing contract. The rolling-stock under construction in the railway workshops on the 31st March consisted of 10 Class X 94-ton four-cylinder balanced compound, 1 Class Ba goods engine, and 20 Class Wg tank engines. The improvements and additions made to the rolling-stock during the past eighteen years have increased the tractive power by 259 per cent., seating-capacity by 208 per cent., wagon-capacity by 212 per cent. During the same period the rolling-stock equipment has been increased by 244 locomotives, 784 cars, 181 brake-vans, 1,053 sheep-trucks, 9,813 goodswagons. Special and sustained efforts are made to build rolling-stock with despatch so as to keep pace with the demands of the existing and prospective traffic. The programme for 1913-14 comprises 65 bogie cars, 19 bogie brake-vans, 68 bogie wagons, 522 four-wheeled wagons. The total rolling-stock actually under order at the present time comprises 44 locomotives, 108 cars, 27 brake-vans, 113 bogie wagons, and 1,475 four-wheeled wagons. The investigations made into the results of the motor-car experiments carried out over extended periods by other railway systems has shown the wisdom of proceeding cautiously in regard to ordering motor-cars for use on the New Zealand railways. Material alterations and improvements in this class of vehicle are daily taking place, but as a consequence of the satisfactory result of extended trials made on the South African lines two cars have been ordered for trial purposes on our railways. They will be placed in commission as early as possible after arrival in the Dominion, and if the results come up to anticipation the use of the cars will be extended as circumstances permit. The new steamer, " Barnslaw," built for the Lake Wakatipu service by Messrs. McGregor, of Dunedin, was placed in commission during the last summer season. The vessel fulfilled all requirements of the contract. It has a gross tonnage of 329 tons, carries 1,000 passengers, and steamed on trial trip 15 knots per hour. The vessel has already established itself as a favourite on the lake, but it is too large and costly to run during the winter season when the traffic is light. With a view to bringing the producer and consumer into closer relations, for the mutual benefit of both, arrangements were made for the through booking of fruit from various parts of the Dominion. Delivery at destination was also provided for in the case of larger centres, and a minimum rate of freight was fixed for both rail and sea transport. The steamship companies readily joined in the scheme and assisted as far as practicable. The Postal Department co-operated and arranged that orders for fruit might be transmitted through Postmasters to growers direct. Wide publicity was given to the arrangements, and every endeavour made in other directions to ensure the success of the project. The traffic results