D.—2

VIII

In (he Locomotive Branch £149,081 was expended in the provision of additional rolling-stock, Westinghouse brake, steam-heating gear, and workshops machinery. The rolling-stock in respect of which the charges were* incurred under the heael " Adelitions to Open Lines " included 20 locomotives, !) carriages, 4 brake-vans, 30 bogie and 107 four-wheeled wagons completed on the 31st March, and 15 locomotives, 37 carriages, 12 brake-vans, 175 bogie anel 849 four-wheeled wagons incomplete but in hand em that date. . As mentiemed in last year's report, the operations in both the Maintenance anel Locomotive Branches are greatly retarded owing lo the difficulty in obtaining materials from abroad in fulfilment of orders given at various periods before' and since the war commenced, with Hie result that a number of important works for which authority has been given have.- had lei be held in suspense until material ami labour can be obtained. Railway Refreshment-rooms. During the year the running of dining-cars on the express trains was discontinued, and with a view eif meeting the requirements of the (ravelling public the Department took over the refreshment-rooms at Mercer, Frankton Junction, Marton, Palmerston North, ami I law-era in the North Island, and Ashburton and Oamaru in the South Island. In addition, a refreshmentroom was eipened at Christchureh, and the Dunedin room was also reopened eluring the Christmas and Master holiday periods. This alteration has increased the capacity of each train on which dining-cars were previously run by one passenger-car, thereby providing accommodation feir additional passengers. At the same time a total of 16 cars were released for fitting up as ordinary passenger-vehicles, providing immediate seating-accommodation feir 500 passengers. Haulagecharges were saved, and the public requirements in respect to meals better met. Future Railway Revenue and Expenditure. The restrictions on oversea shipping created by war conditions materially affected the volume and movement of railway traffic. Manufacturing industries were unable to obtain essential male-rials from abroad, and freezing-works and stores became glutted with meat and other local products feir export. Although additional storage-space was provided by some eif the freezing companies, the margin between the normal and increased accommodation was insufficient to counterbalance- the loss of room resulting from want of ships. Passenger traffic was also affected by the falling-ofi in the number of oversea passengers arriving at and departing from New Zealand. The absence of so many young men on. military service, and restrictions to travel imposed under the coal- anil staff-saving time-tables have also had an adverse effect on the passenger business. Shortage- of labour and inability to preicure essential materials from abroad have seriously restricted the- operations of manufacturing and other important local industries. This condition is reflected in the decline of the railway-goods business. There has been a further hardening of prices in essential railway materials, and it is impossible at the present juncture to form any opinion as to when this oondition will alter. The extent tei whie-h the: expenditure of the Railway Department is affected by the present prices will be apparent from a perusal of the following figures, which give the pre-war prices of 1914 and the rates ruling to-day for the same material : —

Although the foregoing statement does not by any means exhaust tin: list of male-rials used by the Department in carrying out its everyday operations, it represents an additional war expenditure of £198,900 per annum. There are many oilier lines of mate-rial used in large quantities in railway workshops the prices of which have advanced in practically the- same ral in as those in the examples given above. While the present unsettled conditions exist it is practically impossible to forecast with any certainly to what extent the railway expenditure will lie affected by the end of the year and afterwarels,

Rai ;es. Increased Oost to Railway Department at Normal Rate of Consumption. Material. 1914. 1918. Canvas for tarpaulins, por yard Spring steel, per ton Steel plates, per ton Bar iron, per ton Cotton-waste, per ton Boiler-tubes, per foot Galvanized iron, per ton.. Pig-iron, per ton Drawbar springs, each Copper plate, per ton Copper ingot, per ton Tin ingot, per ton Gasmaking-oil, per gallon Valve-oil, per gallon Castor-oil, per gallon Linseed-oil, per gallon Carbide- of calcium, per ton £ a. d. Oil II 15 0 8 II) 0 .10 0 0 30 0 0 0 0 5 14 0 0 ..'I 4 0 0 0 5 0 90 0 0 .. ! «S0 0 0 .. j 170 0 0 0 0 lo| 0 I II 0 2 9 .. ' 0 3 0 11 0 0 £ s. d. 0 5 2 60 0 0 84 0 0 24 0 0 70 0 0 0 2 1 cSO 0 0 16 0 0 0 10 3 236 o 0 135 0 0 300 0 0 0 I 11 j o 3 0 0 5 3 0 7 8 64 (i 0 £ 24,500 6,600 28,400 23,600 5,000 27,200 19,100 2-1,200 2.500 3,400 6,600 2.200 3,(100 1.100 ,8,000 5,600 7,000 £ 198,900