D.—2.

" SAVE TO TRAVEL " STAMPS. The " Save to Travel " scheme, which was introduced for the purpose of providing facilities, for those who desire to do so, to set aside small amounts to be devoted to the purchase of rail tickets, continues to meet with a satisfactory response from the public. The results achieved since the inception of the scheme have been sufficiently encouraging to warrant the further provision made during the year whereby savings stamps to the value of 10s. and multiples of 10s. may be exchanged for travel vouchers bearing interest at the rate of 5 per cent, per annum for each calendar month, further adding to the popularity of the scheme. WAY AND WORKS BRANCH. The following are the principal features connected with the operations of the Way and Works Branch during the year : — Permanent-way.—The relaying carried out during the year was as follows :— Main Line and Branches— M. Ch. 100 lb. rails relaid with 100 lb. new rails .. . . . . . . 023 53 lb., 55 lb., and 70 lb. rails relaid with 70 lb. new rails . . 17 03 55 lb. rails relaid with 55 lb. new rails . . . . . . . . 040 Main line and branches relaid with 531b., 551b., 561b., and 701b. second-hand rails .. .. .. .. .. .. .. .. 3 19 Total .. .. . . .. .. .. .. 21 05 Mileage.—The total mileage of track open for traffic on 31st March, 1938, was 3,318 miles 58 chains. New Works.—Good progress was made during the year in connection with the duplication of the main line between Papakura and Horotiu, a further section of double track between Horotiu and Ngaruawahia (3 miles 54 chains) having been opened for traffic on sth December, 1937. This makes a total of 30 miles duplicated on the 87-mile section of mam line between Auckland and Erankton Junction. Operations in connection with the grade-easement work and deviation of the line at Scroggy Hill have made satisfactory progress, about 35,000 cubic yards of spoil having been shifted during the year. An average of thirty-eight casual workers are employed on this work, which it is anticipated will take two years to complete. Work in connection with the grade easement between Swanson and Waitakere is also well in hand. This project is providing work for approximately eighty-eight workers. During the year a start was made with the work of deviating the line between St. Leonards and Sawyers Bay, near Dunedin. This project involves the construction of a tunnel, duplication of line, and the provision of a new station and a rearrangement of the yard at Sawyers Bay. An average of eighty-seven casual workers have been engaged on the work. Sleepers and Ballast—During the year 220,085 sleepers were laid (including 10,522 laid in the new station-yard at Wellington). The cubic yards of ballast placed on the track during the year totalled 183,485. Bridges.—The work of renewing and strengthening bridges has been continued during the year, the principal works in hand being the renewal of the Rangitikei, Rakaia, Waitangi, and Waitangi Washout bridges. The foundations of the first three bridges are in course of being constructed by the contractor, while the Waitangi Washout Bridge is being reconstructed on a new alignment. Roads and Level Crossings.—The work of eliminating a number of level crossings by the provision of subways and overbridges has been proceeded with during the year. This work is being carried out in collaboration with the Main Highways Board. A number of level crossings were tar-sealed during the year. Fences and Cattle-stops.—Several fencing gangs have been employed throughout the year in erecting and repairing boundary fences. This work, which is subsidized by the Labour Department, is being carried out in pursuance of the policy that the Department should undertake the repair and maintenance of boundary fences paralleling the railway-line in order to relieve adjoining owners of expense in that connection and to ensure an adequate standard of safety against straying stock. Protective Works— The work of placing concrete blocks between Kaiwarra and Petone in order to prevent sea-erosion was completed during the year. Foreshore-protection work at Oamaru has been continued by the driving of piles and the placing of stone. Buildings.--All buildings ha ve been maintained in a satisfactory condition. A store shed at Lyttelton and two dwellings —one at Wairio and the other at Omana—were destroyed by fire during the year. Five dwellings and four other departmental buildings in various parts were damaged by fire during the year. Dwellings. —All dwellings have been maintained in good order. Wellington New Station and Yard. —New works completed during the year included the following : Engine-shed, rail-car shed, social hall, and overbridge at Davis Street. The old station buildings at Lambton and Thorndon were demolished, as was the old engine-shed at Thorndon. Tawa Flat Deviation.—Coincident with the opening of the new station at Wellington on 19th June, 1937, all traffic for stations north of Johnsonville was transferred to the new line via Tawa Flat. Unemployed Relief —During the year an average of 210 men were employed on new works at Wellington (exclusive of contract for erection of station building). The wages of these men were subsidized by the Labour Department. An average of 17 sedentary relief workers have been employed assisting in offices. An average of 922 casual-relief workers have been employed on earthworks for grade-easements, deviations, repairing fences, &c., on various portions of the system.

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