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ANNUAL REPORT ON WORKING RAILWAYS.

The General Managee, Now Zealand Eailways, to the Hon. the Ministee for Public "Woeks. SlE,— I have the honour to report upon the opened railways for the financial year ending the 31st March, 1886. There were 1,613 miles open at tho end of the year, including 77 miles of line built by the District Railway Companies. Of these latter, the Ashburton Forks, Duntroon and Waimate lines, 46 miles in length, were previously worked by the Government on behalf of the companies, and arrangements having been recently made for their purchase as from the Ist April, 1885, the working accounts have been now incorporated with the annual accounts for the New Zealand railways. The Eotorua District Eailway was taken over and opened for traffic between Morrinsville and Oxford, 31 miles, on the Bth March, 1886, and is worked as a part of the Auckland Section. The length of lines open at the end of the year, including these recent purchases, was 137 miles in excess of the Government lines open in the previous year. Particulars of the lengths opened will be found in Return No. 19. Seventeen new stations have been opened. The lines have paid £2 17s. 3d. per cent, on the cost of the opened portions, and £2 12s. per cent, on the gross outlay on opened and unopened. Comparative rates of interest paid for the past four years are shown in Return No. 6. The highest rate is paid by the Greymouth Section, £5 9s. 3d. per cent., and the next highest by the Napier Section, £4 18s. 9d. The lines Morrinsville to Te Aroha and to Oxford, 12|- and 30£ miles respectively, opened in the early part of March, were too late in the year to materially affect the revenue or profits on the Auckland Section, and the cost of the opened lines there thus appears high in proportion to the net revenue realized, and the rate of interest appears relatively low. According to the terms of purchase of the District Eailways, there will be a sum of about £2,768 in rates on land, which will be a contribution towards the payment of interest on their cost. The proportion of expenses to revenue is 65-91, as against 65-99 for the previous year. The most marked improvement in the proportion of expenses to revenue is on the Kawakawa Section; the next in order in this respect is the Wellington Section. The traffic has on the whole increased moderately, but shows a decrease under certain heads in some parts of the colony. The passenger traffic has increased under all three heads of first-class, second-class, and seasonticket travellers. This increase has chiefly occurred in Auckland, Napier, "Wellington, Greymouth, and Westport. In other parts of the colony the growth is but small. A large number of cheap excursion trains have been run in various parts of the colony during the year; 47,836 passengers have been carried, giving a gross receipt of £6,184. The great depression in prices of grain has checked the production of, and the traffic in, agricultural produce; the commercial depression arising from the fall of prices of this and other local productions has greatly affected the railway business and revenue in many respects, directly and indirectly. A comparative statement of the cost of working is shown in the table next following, which should be considered in connection with table of traffic and revenue below :—

Comparison of Traffic and Revenue for Seven Years.

Year. Maintenance. Locomotive and Stock. Traffic. General Charges, &c. Totals. Miles. Total per Mile. .880-81 ... .881-82 ... .882-83 ... .883-84 ... .884-85 ... .885^-86 ... £ 145,517 132,520 158,203 165,303 177,388 184,551 Wages. £ £ 109,477 125,782 106,204 126,739 118,689 140,840 134,125 151,319 140,436 156,586 144,775 164,871 Stores and Miscella; £ 31,926 28,428 31,032 32,635 36,871 37,601 & 412,701 393,891 448,764 483,382 511,281 531,798 No. 1,277 1,319 1,358 1,396 1,477 1,613 £ 323 298 330 346 346 330 .880-81 ... .881-82 ... .882-83 ... .883-84 ... .884-85 ... .885-86 ... 35,931 47,602 51,620 68,633 76,941 63,015 sous. 109,256 129,208 144,058 172,608 178,745 158,542 1,277 1,319 1,358 1,396 1,477 1,613 85 97 106 123 121 98 58,117 14,266 65,928 14,205 73,805 15,494 79,736 15,529 82,385 15,236 73,388 15,481 942 1,071 3,139 8,710 4,183 6,658

Year. Miles. Revenue. Expenditure. Tonnage. Parcels, &c. Cattle, Shoep, &c. Passengors. Season Tickets. 79-80 80-81 81-82 82-83 83-84 84-85 85-86 1,172 1,277 1,319 1,358 1,396 1,477 1,013 £ 762,573 836,454 892,026 953,347 961,304 1,045,712 1,047,419 £ 580,030 521,957 523,099 592,821 655,990 690,026 690,340 1,108,108 1,377,783 1,437,714 1,564,793 1,700,040 1,749,856 1,823,767 No. 180,331 280,865 316,011 341,186 359,896 347,425 349,428 No. 285,209 300,704 343,751 477,075 680,287 729,528 858,652 No. 2,967,090 2,849,561 2,911,477 3,283,378 3,272,644 3,232,886 3,362,206 No. 5,077 0,499 7,207 8,621 9,036 8,999 19,717