D.—2b

18

if the recommendations contained in this report are adopted, that as the country develops the Railway Department will be able to assist in its advancement and be in a position to offer its clients reasonable transport facilities for both business and pleasure. E. H. HILBY, General Managei P.S. —Thip report was completely drafted before a European war was contemplated, and the proposals were based on the assumption that the financial position would be normal. I have not modified the report in any way, because the necessities for improved equipment still remain and will, in fact, become more urgent by the time that the European money-market has recovered its equilibrium. It is unfortunate that delay in commencing the new works cannot be compensated for to any appreciable extent by acceleration in carrying out the alterations after the expenditure has been authorized, owing to the limited engineering staff available for supervision and prosecution of new works.—E. H. H.