D.—2.

The opening of the new station at Wellington on 19th June, 1937, was instrumental in greatly increasing the turnover of the Refreshment Branch, the receipts from Wellington being £22,4-12, or 15-70 per cent, of the total turnover. The increase shown by the remaining rooms is 16-47 per cent. The main factors contributing to the improved turnover were the visit of the 1937 South African Rugby Football Team, which drew record attendances at all fixtures participated in by the visitors, and the improved economic conditions prevailing making it possible for those undertaking journeys by rail to spend more freely. The latter aspect is one which is particularly noticeable among excursionists. The expenditure for the year increased by £39,812 (39-37 per cent.), this being mainly due to the restoration of wages and salaries to the 1931 level, to the granting of an improved wages schedule to waitresses and general staff, and to increased consumption of stores and provisions consequent upon the greater turnover of business. The actual return to the Department in respect of the operations of the Refreshment Branch for selected years since 1930 is as under: —

BOOKSTALL SERVICE. 1938. 1937. Variation. £ £ £ Per Cent. Revenue .. .. .. 76,719 54,417 +22,302 40-98 Expenditure .. .. ..73,232 51,245 +21,987 42-91 Net Revenue .. .. £3,487 £3,172 + £315 9-93 The number of bookstalls (18) at present being operated by the Department is the same as during the previous year. The increased passenger traffic and the improved economic conditions have resulted in increased patronage. The increase in wages and salaries as a result of the return to the 1931 level and other wage increases to attendants, together with the higher cost of commodities, were the chief causes of the higher expenditure this year. The actual return to the Department in respect of the operation of bookstalls is as under:—

ROAD MOTOR SERVICES. 1938. 1937. Increase. £ £ £ Per Cent. Revenue .. .. ..276,527 198,751 77,776 39-13 Expenditure .. .. ..254,553 177,053 77,500 43-77 Net Revenue .. .. £21,974 £21,698 £276 1-27 After providing for interest on capital and for writing down capital by way of depreciation, the operations of this service show a net revenue of £21,974, compared with £21,698 last year, an increase of £276.

XXI

1930. 1932. 1934. 1935. j 1936. 1937. 1938. £ £ £ £ £ £ £ Rent .. .. .. .. 11,170 9,100 9,230 9,230 9,230 9,219 9,817 Commission on cash collections .. 970 715 620 667 742 842 1,130 Rail fares .. .. .. 1,287 1,066 1,066 1,066 1,066 1,066 1,066 Rail freights .. .. .. 3,234 2,349 1,818 1,825 1,790 2,084 2,443 Interest .. .. .. 1,099 1,291 1,124 1,102 1,108 1,111 1,230 Net profit .. .. .. 6,981 1,681 785 2,132 4,156 2,226 1,849 Total .. .. .. 24,741 16,202 14,643 16,022 18,092 16,548 17,535

1938. 1937. £ £ Net profit .. .. .. .. 3,487 3,172 Rent 6,905 5,442 Railages .. .. .. .. 189 192 Commission oil cash collections .. .. 537 381 Total .. £11,118 £9,187