D.—2.

CAPITAL ACCOUNT. On the 31st March, 1940, the capital invested in the lines for traffic, including the steamers and plant on Lake Wakatipu and other subsidiary services, was £63,059,188. This represents an increase of £4,382,580, as compared with the previous year. The principal additions to capital during the year were on account of the following major works :— £ Additions and improvements to rolling-stock .. .. .. 1,591,878 Improvements to stations and miscellaneous works .. .. .. 44,540 Extensions and improvements to station yards .. .. .. 64,439 Additions to workshops buildings .. .. .. .. .. 40,834 Additions to workshops and locomotive depot machinery and plant .. 65,366 Construction, purchase, and improvements to dwellings .. .. 79,655 Stratford-Okahukura automatic and power signalling .. .. 5,134 Wellington new station and yard .. .. .. .. .. 68,901 Christchurch new station and yard .. .. .. .. 63,795 Papakura-Horotiu duplication .. .. .. .. .. 211,207 Plimmerton-Paekakariki duplication .. .. .. .. 102,790 Wellington-Paekakariki electrification .. .. .. .. 17,886 Turakina-Okoia deviation .. . . . . . . .. 107,268 Palmerston North deviation .. .. .. .. .. 59,866 St. Leonards - Sawyers Bay duplication .. .. .. .. 51,810 Miscellaneous grade and curve easements .. .. .. .. 96,827 Otira substation .. .. .. .. .. .. 23,850 Eliminations of level crossings .. .. .. .. .. 11,500 Oamaru foreshore protective works .. .. .. .. 10,000 Miscellaneous communication circuits ~ .. .. .. 17,202 Napier-Gisborne Railway— Putorino-Wairoa section .. .. .. .. .. 1,569,385 Napier-Putorino additions .. .. .. .. .. 23,279 RENEWALS, DEPRECIATION, AND EQUALIZATION RESERVE FUNDS. The position with regard to the renewals, depreciation, betterments, and equalization accounts is as under : —

RAILWAY OPERATION. The results of railway operation (excluding subsidiary services and miscellaneous non-operating revenue) on the varipus sections for the year ended 31st March, 1940, were as under :—•

2—D. 2.

9

Credit Balance ,, ,, Credit Balance Account. broughtforward ,' X iqoq dl) ' at 31st March, from 1939. 194 o. £ £ £ £ Renewals (track) .. .. .. 700,333 211,190 328,815 582,708 Depreciation 673,482 739,700 274,937 1,138,245 Betterments 3,248 1,500 1,084 3,664 Slips, floods, and accidents .. .. 668 19,839 9,813 10,694 Workers' compensation .. .. .. 39,863 69,415 58,085 51,193 Insurance 104,248 6,665 8,350 102,563 1,521,842 1,048,309 681,084 1,889,067

Section. Revenue. Expenditure. ' Net Revenue. £ £ £ North Island Main Line and Branches .. 5,493,475 4,774,382 719,093 South Island Main Line and Branches .. 3,086,845 2,971,928 114,917 Kaihu .. .. .. •• •• 3,127 9,915 - 6,788 Gisborpe .. .. •• 28,037 32,527 — 4,490 Westport 97,098 81,822 15,276 Nelson . .. .. .. .. 10,015 23,517 - 13,502 Picton 43,040 49,029 - 5,989 total .. .. .. 8,761,637 7,943,120 818,517