1).—2

VI

The motor-oars in use on the Culverden-llanmer run continued to do good service. The Westinghouse petrol electric car imported at the close of the preceding year has been placed in commission and utilized in running an experimental motor service between Wellington and Johnsonville, where it has provided a public convenience. The car is not, however, sufficiently powerful to haul a trailer on the heavy gradient of 1 in 40, and for that reason steam traction has to be resorted to whenever the passenger traffic exceeds one-car capacity. A new car of a more powerful type already on order will shortly arrive, and be placed on the Wellington-johnsonville run, liberating the Westinghouse car for service in a locality where easier grades predominate. The whole of the permanent-way and structures have been maintained in a satisfactory condition. During the year 95| miles *of track have been relaid, comprising 70j miles of main and branch lines, with 70 lb. material; fourteen miles of branch line with 55 lb. material in substitution for 40 lb. rails; 11J miles of branch line with 531b. and 561b. steel material removed from main lines and placed in branches in place of 40 lb. material. Owing to the extraordinary conditions prevailing the rate of relaying, although slightly below the standard of 100 miles per annum, is regarded as being satisfactory. During the year 228,644 sleepers and 371,385 cubic yards of ballast were used on the track. The policy of respacing sleepers to strengthen the track has been continued, the cost being charged against revenue. The strengthening of bridges on the main line with a view to enabling the heaviest locomotives to be run without restriction is now being undertaken, and the construction of bridges in steel instead of timber is being carried out wherever practicable. A large number of works having for their object the provision of greater facilities to meet the public requirements and increase efficiency in operating the railways have been completed during the year. Other similar works were in hand on the 31st March. These include additions and improvements to water-services, workshops, engine-depots, goods-sheds, enlargement of station-yards, and increasing the accommodation generally. The interlocking of points and signals has been brought into operation at Morningside, Mount Albert, Henderson, Sawyer's Bay, Ravensbour.no, and service siding at 26 m. 14 eh., while additions to and rearrangement of the system have been made at Parnell Signal-box, Newmarket, Otahuhu, Te Kuiti, Wingatui, and Mosgiol. Alterations have also been carried out at Mount Albert, Morningside, Aramoho, Thor.ndon, and Mosgiel. Fourteen flag stations and sidings have been locked with the tablet system. Thirty-five stations have been fitted with fixed semaphore signals. Of the total number of officered stations, 280 are equipped with fixed signals, 87 are interlocked, and 126 have yet to be dealt with. Special switch locks, which prevent signals from being lowered unless the facing points to which the signal applies are unlocked, have been fitted to sixty-four stations during the year —viz. three in the North Island, and sixty-one in the South Island. One hundred and" twenty-eight of the North Island stations are now equipped with this appliance. The electric-tablet system was installed and brought into operation between Morrinsville and Thames and at Avondale Brick Company's siding, Paerata service siding, Taratahi, Mangaroa, and Heretaunga. The tablet system is now operating at 362 stations, covering 1,583|- miles of single line. Forty-four miles of line were equipped with lock and block. The railway telegraph and telephone facilities have been added to materially during the year, and at the 3.lst March there were in use 276 Morse sets, 1,453 telephones, 230 electric bells, 2,529 miles of poles, and 6,727 miles of wire. Provision for the further extension of signalling arrangements and appliances, tablet system, interlocking, telegraph, and telephone facilities has been made, and the installation is going on uninterruptedly throughout the railway system. Electric light has been installed at Auckland Goods-yard, Te Kuiti, Ravensbourne, Wingatui, Mosgiel, and additional lighting has been provided at Wellington and Petone Workshops. Electric cranes have been installed at Invercargill and in the Stores yard, Wellington. Electrical work connected with the installation of additional motors for driving machinery at Hillside, Addington, and Petone has been carried out. Revenue. The gross revenue for the year amounted to £4,105,457, and exceeded the earnings of the previous year by £62,129. But for the unpropitious circumstances prevailing for eight months of the financial year, consequent on the war into which the Empire has been plunged, the estimated revenue of £4,250,000 would undoubtedly have been reached and probably exceeded. The sources from which revenue was derived were, — 1915. 1914. Increase. Decrease. £ £ £ £ Passengers 1,482,383 1,450,480 31,903 Parcels, luggage, and mails .. 227,521 236,761 .. 9,240 Goods.. .. .. .. 2,319,045 2,283,149 35,896 Rents and commissions .. .. 76,508 72,938 3,570 4,105,457 4,043,328 71,369 9,240 Notwithstanding the fact that the gross receipts fell short of the estimate by £144,543, the net revenue —£1,185,002 —exceeded that of the preceding year by £21,997, and was only £34,998 below the estimate owing to a saving of £109,545 in the estimated expenditure. In the North Island the receipts per train-mile amounted to 96-75 d., against 97d. for the preceding year. The net revenue per train-mile amounted to 28-14 d., against 28-84 d. last year. This represents a decline of 0-70 d. per train-mile. The gross receipts per train-mile in the South Island advanced from 109-od. last year to 110-50 d. for 1915, giving a net return of 28-69 d., a decline of 0-15 d. on the figures for last year. For all lines the gross earnings per train-mile advanced from 104-od. to 104-75 d., an increase