D.— 2 a

6

In view of the important part railway communication and facilities pl&y in connection with the mobilization and transport of troops and their equipment, and seeing also that the everyday operations of the railways rendered it impracticable to relieve simultaneously for camp training the large number of railway men who are within the age-limit for compulsory training under the Defence Act, a proposal to form a Railway Oorps was made to the Defence Department in 1910. The suggestion being accepted, steps were taken to organize the corps, which consists of two battalions of eight companies each. Four Instructors have been obtained from the Defence Department, two being stationed in the North Island and two in the South Island. Officers have been appointed to each of the sixteen companies, and they are located in the best positions to ensure training, which commenced some time ago, being systematically carried on in a way that will make for the efficiency of the corps. The Wellington companies held a week-end camp at Gollan's Valley on the 26th, 27th, and 28th October, 1913. This was the first camp held by the New Zealand Railway Corps. Eighty men took part, and I was very pleased with their general bearing and the keenness they evinced. From personal observation in this camp and elsewhere I am convinced that the Railway Corps will be of immense value to the country in any emergency that may arise, also that the training and discipline received in the corps will manifest itself beneficially when the men are performing their ordinary avocations. The strength of the corps is now fifty-three officers and 1,860 men. Rifles and equipment for the whole of the North Island Battalion are on hand, but I considered it inadvisable to issue the arms during the industrial unrest. Equipment for the South Island Battalion has been on order for some time. The following is a comparative statement of the traffic during the first and last years of my control of the railways : —

In conclusion, I desire to express my appreciation of the courtesy and consideration extended to me by the various Ministers of the Crown under whom I have had the honour to serve. In severing my connection with the service I am gratified at handing over to my successor the lines and their equipment in good order and condition, together with an efficient and contented staff. I am fully sensible of the loyal support given me by the rank and file of the service, and cordially thank them for their co-operation in connection with the working of the greatest of all our State systems. I have, &c, T. Ronaynb, The Hon. the Minister of Railways. General Manager.

Year ended 31st March, 1895. 13th October, i 1912, to 11th October, 1913. Increase. increase per Cent. 'assengers .. .. .. .. Number ieason tickets .. .. .'. ,, 'arcels .. .. .. .. „ lorses . . .. .. .. ,, Carriages . . . . .. . . ,, )ogs )rays .. . . .. .. ,, Jattle . . .. .. .. ,, Iheep .. .. .. .. ,, >igs )haff, lime, &c. .. .. .. Tons Vool firewood .. .. .. .. ,, "imber .. .. .. .. ,, rrain . . .. ■ ■ ■ ■ ,, Merchandise . . .. .. ,, Minerals .. .. .... „ ?otal tonnage 'otal revenue 'otal expenditure ?rain mileage run .. .. jocomotives.. .. .. .. Number jocomotives (tractive power) . . .. lb. ) assenger-cars .. .. .. Number „ (seating-accommodation) kake-vans .. .. ... .. Number ilieep-wagons .. .. .. „ ?otal wagons, all classes .. .. ,, Vagon carrying-capacity .. .. Tons 3,905,578 28,623 444,981 11,185 750 23,517 705 40,890 1,519,921 43,292 36,972 103,328 85,102 198,578 388,556 377,938 857,917 2,048,391 £1,150,851 £732,160 3,221,620 269 1,756,178 498 17,455 204 390 8,264 50,861 13,353,773 273,414 1,334,599 21,890 2,859 55,196 3,242 238,036 5,857,482 - 136,457 234,479 149,611 120,952 694,675 1,066,594 867,265 2,753,904 5,916,480 £3,994,041 £2,815,642 9,219,824 520 6,754,663 1,330 55,937 396 1,443 19,236 160,218 9,448,195 244,791 889,618 10,705 2,109 31,679 2,537 197,146 4,337,561 93,165 197,507 46,283 35,850 496,097 678,038 489,327 1,895,987 ■3,868,089 £2,843,190 £2,083,482 5,998,204 251 4,998,485 832 38,482 192 1,053 10,972 109,357 242 855 200 91 281 135 359 483 285 215 534 45 42 249 174 129 221 188 247 284 186 93 285 167 220 94 270 133 215