D.—2,

RAILWAY OPERATION. lhe results of railway operation (excluding subsidiary services and miscellaneous non-operating revenue) on the various sections for the year ended 31st March, 1942, were as under

OPERATING REVENUE. The following table shows the operating revenue under the main headings, together with appropriate comparisons with the previous year's figures. Information regarding receipts from subsidiary services and miscellaneous non-operating revenue appears later in this report.

With the exception of luggage, which shows a small decline, the revenue under all heads has again shown improvement, the variations with the previous year for main classes of traffic being- - Passenger, 13-72 per cent, increase ; parcels, 6-98 per cent, increase ; goods, 5-21 per cent, increase : and miscellaneous, 6• .18 per cent, increase. Passenger journeys (ordinary) in 1941-42 exceeded the previous year's figures by 1 665 540 (17-64 per cent.) and reached the high total of 11,105,627. This substantial increase was brought about very largely as the result of diversion of road traffic to rail in consequence of petrol restrictions and to the movement of the armed forces. Receipts from the conveyance of goods and live-stock, and the tonnage of goods carried, were the highest ever recorded in the history of the system, the figures for 1941-42"compared with the previous year being :— r t> 1941. Increase. Per Cent. Revenue .. .. £7,174,060 £6,818,603 £355,457 5-21 Tonnage .. .. 8,473,765 8,426,182 47,583 0-56 The increase in freight revenue is reflected in the majority of goods commodities, the principal increases being m respect of live-stock, £44,762 ; coal, £49,997 ; frozen meat, £48,556 : and general merchandise, £230,950. General merchandise traffic benefited by the placing on rail of large quantities of military stores and equipment.

OPERATING EXPENDITURE. The following table shows the operating expenditure under the main headings, together with appropriate comparisons with the previous year's figures : —

5

.Section. _ Revenue. Expenditure. Net Revenue. £ £ £ North Island Main Line and Branches .. 6,603,533 5,511,535 1,091 998 South Island Main Line and Branches .. 3,586,282 '381'826 Gisborne .. .. .. __ 25,998 35,380 —9*382 Westport 114,629 81,984 32,645 p. 01 , 8011 •• •• •• 11,211 20,204 -8,993 Flcton •• 42,227 49,033 —6,806 / Total •• 10,383,880 8,902,592 1,481,288

Amount. - Per . Cent - ° f Operating Revenue. Variation 1942 Operating Revenue. with 1941. 1942. 1941. 1942. 1941. £ £ £ Per Cent. Passengers, ordinary .. .. 2,335,907 2,054,152 +281,755 13-72 22-49 21-19 Season tickets .. .. 322,871 291,566 + 31,305 10-74 3-11 3-01 Parcels, luggage, and mails .. 325,897 317,819 + 8,078 2-55 3-14 3-28 ods T •• ■■ -■ 7,174,060 6,818,603 +355,457 5-21 69-09 70-34 Labour, demurrage, &c. .. 225,145 212,050 + 13,095 6-18 2-17 2-18 Total operating .. 10,383,880 9,694,193 +689,690 | 7-11 100-00 100-00 ~

Amount. Operating Expenditure. Variation 1942 with 194-1. 1 Ope'ratfng^ 1942. 1941. Revenue. Maintenance— e f c ,, ,, , ttt i , * £ PerCent. 1942. 1941 Way and works .. 1,615,382 1,544,202 + 71,180 4-61 15-56 15-93 Sl g nals •• •• 238,169 213,623 + 24,546 11-49 2-29 2-20 Rolling-stock .. 2,211,476 2,043,976 +167,500 8-19 21-30 21-09 Examination, lubrication, and lighting of vehicles 100,473 90,083 + 10,390 11-53 0-97 0-93 Transportation— Locomotive.. .. 2,013,445 1,953,913 + 59,532 3-05 19-38 20-16 l- rafl10 •• 2,479,852 2,322,492 +157,360 6-78 23-88 23-95 General charges .. 243,795 238,501 + 5,294 2-22 2-35 2-46 T °tals •• 8,902,592 8,406,790 +495,802 5-90 85-73 86-72