D.—2

VII

Auckland to Bluff. Of the total number of officered stations, 305 are equipped with fixed signals, 97 are interlocked, anel 90 have yet to be dealt with. This impeirtanl work has been carried out under considerable difficulties owing to scarcity of labour and materials, hut ils completion increases the safety of the everyday operations. Speoial switch-locks have been fitted at, 11 additional stations during the- year. The electrical tablet system is,now operating at 376 stations, controlling 1,657 miles of single I rack, and the lock-anel-block system operates over 43 miles of double line. The railway telegraph and telephone systems were extended during the year, and now rumprise 281 Morse sets. 1,633 telephones, 280 electric bells, 2,606 miles of pules, and 7,077 miles of wire. Automatic warning-bells have been installed ;it 7 additional level crossings, making a total of 30 crossings so equipped, Eleotric lighting has been installed at a number of stations,'workshops, railway dwelling houses anel offices. R EvENUH. The gross revenue for the year amounted to .£4,687,700, a decrease eif £113,110 when com pared with last year's earnings, but £487,700 above the estimated revenue. The particulars anus follow : — • I!)is 11)17. . £ t ' Passengers, ordinary ... ... ... 1,663,922 1,717,847 Season tickets ' ... 138,675 155,201 Parcels, luggage, and mails ... ... ... 254,110 243,832 Goods ... ... ... ... 2,465,241 2,498,862 Miscellaneous, rents, &c. ... ... 165.752 185,06-8 £4,687,700 £4,800,810 The gross receipts per train-mile for all lines were 150'50d., as against 125'75d, for the previous year, an increase of 24'75d. per train-mile. The North Island main line and branches produced 150'25d. per train-mile, against 123'00d. for the preceding year, an increase of 27'25d. . The South Island main line- and branches gave a return of 149'25d., against 124'75d. last year, an increase of 24'50d. per train-mile. The earnings from the: Lake: Wakatipu steamers amounted to £6,81.0, a decrease of £374 on last year's earnings. The net earnings per average mile of railway open for traffic was £555, against £632 last year, a decrease of £77. The net revenue, £1,644,793, was equal to a return of 460 per cent, on the capital invested in the lines open for traffic (£36,001,432), and 424 per cent, on the capital invested in the open and unopened lines (£38,798,163). EXPENDITURE. The working expenditure for the: year, including £7,664, the cost of working I he- Lake: Wakatipu traffic, amounted to £3,042,907, an excess of £116,043 over -the expenditure for last year. The ratio of expenditure to earnings was 6491 per cent., against (i()'97 per cent, for the preceding year, an increase of 394 per cent. Expenditure. Per Cent, of Revenue. 1917-1918. 1916-1917. L 917-1918. litlfi 1917. £ £ Traffic, ... ... 954,142 904,318 20-38 18-87 Locomotive ... ... 1,245,470 1,176,647 266] 24\54 Maintenance 710,655 720,840 15-18 15-0 1 Management ... ... 124,976 118,457 267 2-17 3.035,24:', 2,920,262 64-84 60-92 Lake Wakatipu steamers 7,664 6,602 <H)7 0-05 £3,042,907 £2,!)26,864 64-91 60-97 The expenditure for 1917-18 includes the war bonus granted to the staff in 1916 and the extra war allowance granted tei the lower-paid married members of the service, operative from the 9th December, 1917. The: war bonus for the year 1916-17, which amounted to £189,606, was, as mentioned in last year's statement, charged to a special vote, and was not included in the working-expenses for that year; whereas this year that amount, as well as the war allowance of £34,000, has been charged against; working-expenses. The war bonus and allowance are esl imated to cost £350,000 per annum. The increased expeneliture in the Traffic Branch, Heael ami Departmental Offices, resulted mainly from regulation scale increases under the Classification Act, and the war bonus and allowance granted to the members of the staff. The increase in the Locomotive Branch is due to increases in wages, war bonus, and war allowances, and the advance in the- cost of fuel, stores, and materials for repairs, and upkeep of plant, and appliances. The expenditure in the Maintenance Branch shows a decrease when compared with the previous year, this being due lo inability lo obtain rails and other materials for carrying out works authorized, consequently the works are- in abeyance meantime. The expenditure per mile eif railway was £239, as against £244 for last year. The sum of £53,049 was expended in the Maintenance Branch and charged to oapital account under (he head "Additions to open lines." These comprise additions to station buildings, extension of station-yards, additions lo workshops, tablet installation, telegraph and telephone facilities, interlocking of points and crossings, deviations and duplications, additions to wharves, and purchase of land.