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First class, 3d. per mile. Second class, 2d. per mile. Return fares, one and a half of single fares ; return tickets to be available within 50 miles on the day of issue only; above 50 and within 100 miles, until the end of the day after issue; above 100 miles, until the end of the next day but one after issue. All return tickets used for return later than the day of issue should be presented at the ticket window and redated before the passenger enters the train. Ordinary tickets issued on Saturday should be available as return tickets until the following Monday. 14. We have carefully considered the plan adopted on some lines in England, and on the Victorian railways, of abolishing return tickets altogether, and lowering the price of single fares to a corresponding exteut. We do not recommend that so fundamental a change should be adopted on the New Zealand lines at present. Looking, however, to the saving of labour, and the simplification of accounts, we submit that this system deserves the careful consideration of the Government, with a view to its introduction as soon as it may be considered convenient to do so. It is well known that frauds are practised at present by the misuse and sometimes by the sale of return tickets, the amount of which there are no means of estimating, and a stop to which can only be put by abolishing return tickets altogether. 15. In respect to season tickets, we recommend the adoption of the scale at present used on the Northern lines, with certain alterations which we have made in that scale. 16. With respect to excess fares and road-side stations, we recommend the plan in force on the Southern lines, of giving the Train-guard a book with alternate pages printed on different colours, but numbered consecutively—the number on two pages being the same. The Guard writes the ticket with charcoal paper, giving one copy to the passenger and retaining the other in the book. The passengers' ticket is collected by the ticket collector, and the book handed to the Station-master at the end of the day's work, who checks it with the cash paid in. 17. We recommend that the charges for special trains shall be 20s. per mile of distance one way, including one large or two small carriages, with ss. per mile for every additional carriage. The above charge to be for the first 50 miles; and for any additional distance the charge to be three-fourths of the same. The minimum charge for a special train to be £5; except in the case of special trains to the Invercargill cemeteries, which have hitherto been charged at £3, which should be retained. A limit of time should be fixed for the detention of the train before returning. 18. With respect to excursion trains run by special request, we think that tickets should be sold at the rate of single second-class fares, all such tickets being available for return. Children to be charged half fares; but a minimum of 120 full-fare tickets being guaranteed in the case of every excursion train. The railway should have the power of running excursion trains whenever it was thought worth while to do so, at rates not less than the above, without any request or guarantee. 19. Parties of school children, of twenty or upwards in number, may be con- S veyed by ordinary trains at three farthings per mile, including return; bond fide teachers accompanying the children, at double the above rate. First-class tickets should be issued in such cases, but with the proviso that passages in first-class carriages will be given only so far as may be possible without interfering with the ordinary traffic of the train. If a special train is required, it should be charged as such. 20. School season-tickets for children should be issued for one class at the S rate of 10s. a quarter or fractional part of a quarter. Such tickets to terminate t on a quarter-day, the charge to be the same whether the ticket is taken out at the beginning of the quarter or at any later date. School season-tickets should be confined to children under 16 years of age. First-class carriages should not be guaranteed, further than is consistent with the ordinary traffic.

Return tickets. Season tickets, Excess fares. Special trains. Excursion trains. chool parties, chool season lckets-

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