D.-r-2

' ' BxPENBITUBB. Way and works and signals increased * .. .. .. 57,973 Maintenance of rolling-stock increased .. .. .. .. 49,042 Transportation expenses decreased .. .. .. .. .. 16,081 Head Office charges decreased .. .. . . .. . . 6,941 Subsidiary services increased .. .. .. .. .. 47,598 Interest charges increased .. .. .. .. .. .. 69,977 Total increase .. .. .. .. .. £201,568 Total increase in deficiency .. .. .. .. £261,786 RAILWAY OPERATION. The operating revenue shows a decrease of £141,304 and the operating expenditure an increase of £83,993. Details are as under :— Revenue Decreases. £ Passengers .. .. .. .. .. .. .. 163,617 Parcels and luggage . . . . . . . . .. . . 9,570 Goods .. .. .. .. .. .. ... .. 38,573 Inc. Miscellaneous .. .. .'. .. . . .. .. 6,690 £141,304 Expenditure Increases or Decreases. £ Maintenance of way and work's ... .. .. .. .. 54,400 Inc. Maintenance of signals .. .. .. .. .. .. 3,573 Inc. Maintenance of rolling-stock .. .. .. .. .. 49,042 Inc. Locomotive transportation .. .. .. .. .. f0,328 Ine Traffic transportation . . . . . . .. .. .. 5,753 Dec. Head Office .. .. .. .. .. .. .. 6,941 Dec. £83,993 Revenue. No improvement is shown in the latest four-weekly returns- -increase in goods-traffic receipts being considerably more than counterbalanced by the decrease in passenger-traffic takings—despite the introduction by the Department of special-feature excursions. The Royal visit last year is doubtless a contributing cause to the drop of 100,000 passenger journeys during the period ended 3rd March. Tho goods receipts were adversely affected through the inclusion in last year's March|returns of £9,000 paid by the Department of Agriculture for the carriage of artificial manures, as against £6,900 this year. Expenditure. The chief increases in expenditure occur in maintenance of way and works and maintenance of rolling-stock. In the former the additional cost is due mainly to increased track-maintenance and extra ballasting, together with such additional items as the relining of the Karangahake Tunnel, and extra staff employed, due to tho opening of the Opunake and Waihi-Tahawai Branches. The increase in maintenance of rolling-stock expenditure is brought about by additional contributions to Renewals Fund and an increase in repairs to locomotives and wagons. Another factor which has operated against economical working is the unemployment situation. The Department is carrying a staff considerably in excess of requirements, the additional cost of which I place at about £100,000 for the year. The following is the position in regard to the subsidiary services :—

XXXVI

•Service. Revenile. Expenditure. Profit or Loss. Lake Wakatipu Refreshment Advertising . . Housing Road motors Refreshment rooms £ 472 Dec. 7,889 Dec. 3,263 Inc. 9,582 Inc. 19,399 Inc. 40 Dec. i £ 106 Dec. 2,394 Dec. 5,894 Inc. 23,638 Inc. 19,964 Inc. 602 Inc. £ 366 more loss. 5,495 less profit. 2,631 less profit. 14,056 more loss. 565 loss. 642 less profit. —|— 23,843 Inc. 47,598 Inc. 47,598 Inc. 23,755 I