.!).—2.

Notwithstanding the fact that prudence and the exigencies of the moment impel me to make a conservative estimate for the ensuing year, I desire to again emphasize the desirability of making adequate provision tei enable the scheme of works outlined in the General Manager's special report of 1914 to be commenced as soon as it is practicable to obtain men and materials and pushed on vigorously until finished. Unless this is done it is obvious, from the development that has taken place in the railway traffic despite the four years of war conditions, that very serious congestion of business will inevitably occur as soon as normal conditions are again restored. I desire to place on record my sincere appreciation of the loyal and valuable services rendered by the Railway staff during a year of exceptional difficulties. SUPERANNU ATI ON FUND. The total amount standing to the credit of the Government Railways Superannuation Fund at the end of the financial year was £373,098, a decrease of £4,487 on the balance to the credit, of the fund on the 3.lst March, 1917. The gross income for the year was £.123,927 6s. 6d., and the eiutgoing amount £128,414. Of the latter sum. £95,971 representee! grants to 1,046 members of the service who have retired voluntarily or have been retired medically unfit, and. 280 widows and 377 children who are dependants on deceased contributors to the fund who were members of the service at the time eif their death. The income from the actual contributions of members totalled £81,250, or £17,074 less than the estimated annual liability. The receipts are, however, augmented by the Government subsidy of £25,000, anel amounts received by way eif interest on funds invested and fines imposed under the regulations, and a donation : these amounted tei £17,678.

Statement showing the Financial Results of Working on the New Zealand Railways for the last Four Years.

Comparative Statement showing the Financial Results of Working on the Australasian Railways for the last Four Years (taken from the Latest Official Records).

IV

.914 J.3 ... ,915-16 ... 916-17 ... 917-18 ... Year. Net Revenue. £ 1,185,002 1,637,473 1,873,946 1,644,794 i i i Interest on (Jost of Open Lines. £ b. A. 3 10 7 4 14 4 5 5 11 4 12 0 Percentage Working-expenses to Earnings. 71-14 ' 64-00 60-97 64-91 Net Earnings per Train-mile in Pence. 30-21 42-00 4912 52-96 i

Perce, iilaga of iset learnings lo Capital. Year. New Zealand, Victoiia. N wi° Uth Queensland. . S outh Western Wales. b Australia. Australia. Tasmania. 1914-15 3-53 2-00 1915-16 4-72 3-13 1916-17 5-30 3-86 1917-18 4-60 4 18 .i 3-60 4-03 1-81 3-30 3-45 2-72 2-40 3-37 3-50 2-17 306 2-46 4-10 1-55 2-10 207 1-04 Percenta %ge of Working-expenses lo Earnings. Year. New Zealand. Victoria. 1914-15 7114 72-76 1915-16 64-00 64-94 1916-17 60-97 63-83 1917-18 64-91 63-82 N w^° Uth I Queensland. , " . W "*»™ Wales. Australia. | Australia. 69-73 62-67 82-99 72 77 70-71 73-29 78-63 72-39 70-59 78-14 75-89 7715 66-34 84-75 I Tasmania. 69-90 71-44 84-92