D.—2.

A comparison of the results obtained on the various services is as follows : — 1938 1937 Net Revenue Profit. Profit. Variation. £ £ £ Auckland-Rotorua .. .. .. 3,532 .. -(-3,532 Wellington-Wanganui .. .. .. 1,491 1,901 — 410 Wellington-Johnson ville ... .. .. 1,768 2,567 — 799 Hutt Valley - Wellington .. .. .. 11,396 9,894 +1,502 Napier-Hastings .. .. .. .. 3,403 3,405 — 2 Christchurch services .. .. .. 297 105 + 192 Hokitika services .. .. .. .. 129 2,667 —2,538 Dunedin services .. .. .. .. 370 2,026 —1,656 Waipahi-Edievale .. .. .. .. Loss 109 Loss 78 — 31 Invercargill services .. .. .. Loss 303 Loss 789 + 486 Total .. .. .. ..£21,974 £21,698 +£276 During the year several new services were inaugurated, while nine additional services were purchased and taken over. Revenue for the year increased by £77,776 (39-13 per cent.), this being mainly due to the expansion effected in the activities of the Branch and also to the satisfactory degree of patronage accorded the various services during the year. The increased receipts consequent upon the visit of the South African Rugby Football Team, together with the increased traffic resulting from the visit of a larger number of " cruise " tourist ships, and the improved economic conditions prevailing generally all combined to make the results of the year's operations one of the most satisfactory in the history of the Branch. A comparison of passenger journeys and mileage operated is as follow : — 1938. 1937. In ™" „ Per Cent. Passenger journeys .. 5,446,339 4,556,316 890,023 19-53 Mileage .. .. 4,856,503 3,531,623 1,324,880 37-51 Expenditure increased by £77,500 (43-77 per cent.). This increase is mainly due to higher wagescosts and to the improved working-conditions now operative throughout the Branch and also to the increased cost of fuel, the cost of motor-spirit having been increased twice during the year (Id. per gallon from 27th April, 1937, and Id. per gallon from Ist March, 1938). No increase in the fare schedules has been made to meet the increased operating-costs. Passenger services taken over during the year were as follow

New passenger services inaugurated during the year were : — Christchurch - Arthur's Pass .. .. .. .. 18th June, 1937. Culverden-Wesport (via Lewis Pass) .. .. Ist November, 1937. Hokitika-Greymouth . . . . . . . . 14th February, 1938. The route mileage of the road services is now 2,294 miles. The total fleet operated by the Branch as at 31st March, 1938, was 263 vehicles of all types, comprising 86 omnibuses, 135 service and rental cars, 26 lorries, and 16 miscellaneous vehicles. During the year 14 new omnibuses, 6 new service-cars, and 8 new private-hire cars (procured for tourist work) have been put into service.

XXII

. . Name. Route. j Date taken over. Olsen's .. .. Hokitika-Rimu .. .. .. 12th July, 1937. " K" Motors, Ltd. .. Hamilton-Rotorua-Opotiki .. .. Rotorua-Wairakei, and Rotorua thermal |>6th September, 1937. district sight-seeing j J. Gibson's .. .. .. Auckland-Auckland (tourist) .. .. 25th October, 1937. Markey's .. .. . . Auckland-Hamilton .. .. .. 25th October, 1937. Patterson's Reefton County (goods) .. .. 13th December, 1937. Hunter's .. .. Wellington - Titahi Bay .. .. 19th December, 1937. Kingston's Akaroa (sight-seeing) . . . . . . 20th December, 1937. Curran's .. .. Blenheim-Parnassus .. .. .. 1 „ , , , noo -nr ., Tir . >31st January, 1938. Kaikoura-Waiau .. .. • • J Riseley's .. .. .. Invercargill-Dunedin (goods) .. .. 21st March, 1938.