D.—2.

The results of operating the various services are set out in detail below: — Auckland-Rotorua-Opotiki (Passenger) . 1938. £ Revenue .. .. ■■ 23,375 Expenditure .. .. .. 19,843 Net revenue .. .. .. •• £3,532 Passenger journeys .. .. .. •• 30,875 Mileage .. .. .. • • • • • • 409,381 This service comprises the license taken over from " K " Motors, Ltd., Rotorua, on 6th September, 1937, operating between Hamilton-Rotorua-Opotiki, Rotorua-Wairakei, and thermal districts sightseeing, and that taken over from Markeys Motors, Ltd., Auckland, on 25th October, 1937, covering the route Auckland-Hamilton, also a tourist license taken over from J. Gibson on the same date. Revenue was 12-91 d. per mile and expenditure 10-96 d. Special trip traffic is a feature of the operations of this service, and provision for the future development of this class of traffic has been met by placing up-to-date sedan cars on these routes. Wellington-Wanganui (Passenger). 1938. 1937. Variation. £ £ £ Per Cent. Revenue .. .. .. 14,455 12,174 -}- 2,281 18-74 Expenditure .. .. 12,964 10,273 + 2,691 26-19 Net revenue .. .. £1,491 £1,901 — £410 21-57 Passengers journeys .. .. 15,003 13,633 + 1,370 10-05 Mileage .. .. • • 353,999 328,659 +25,340 7-71 Ordinary passenger receipts improved by £209, special trips by £2,030, and miscellaneous by £42. The increase in expenditure was due to increased wages-costs, the increased price and consumption of petrol, and higher maintenance charges due to heavier repairs to vehicles. Wellington-Johnsonville (Passenger). 1938. 1937. Variation. £ £ £ JPor Ooiit Revenue .. .. .. 32,087 21,296 +10,791 50-67 Expenditure .. .. 30,319 18,729 +11,590 61-88 Net revenue .. .. £1,768 £2,567 — £799 31-13 Passenger journeys .. 1,275,386 848,554 +426,832 50-30 Mileage .. ".. .. 467,600 298,319 +169,281 56-74 This service includes the Wellington-Johnsonville license taken over from Mr. S. A. Crichton on 10th April, 1936, and the Wellington-Ngaio-Khandallah service (including Wellington sight-seeing) taken over from the Bell Bus Co., Ltd., on Ist July, 1936. During the year this service was further added to by the inclusion of the Wellington - Titahi Bay service purchased from Mr. J. A. Hunter on 19th December, 1937. The taking-over of the latter service completes the chain of services operating in this locality and has enabled a satisfactory degree of co-ordination to be effected in the area. The Titahi Bay vehicles now connect with trains at Porirua, providing a more speedy and frequent service to and from Wellington than formerly, and a service operating via the new route between Johnsonville and Khandallah provides direct access between Titahi Bay and the city. Hutt Valley - Wellington (Passenger). 1938. 1937. Variation. £ £ £ Per Cent. Revenue .. .. 79,843 73,820 + 6,023 8-16 Expenditure .. .. 68,447 63,926 + 4,521 7-07 Net revenue .. £11,396 £9,894 + £1,502 15-18 Passenger journeys .. 3,031,358 2,731,492 +299,866 10-98 Mileage ' .. .. 1,223,167 1,044,617 +178,550 17-09 This service continues to show satisfactory results. Ordinary passenger revenue increased by £4,962, school by £53, special trip by £975, while other miscellaneous receipts improved by £33. As from December, 1937, a ten-minute service was inaugurated on this route in place of the fifteen-minute service previously operated, while a further improvement was the provision of purely local services in the Hutt and Petone areas. Six 32-seater and one 22-seater Diesel engined vehicles were added to the fleet during the year, and three 21-seater vehicles transferred to other services.

XXIII