L—9.

Mr. Maxwell to the Chaieman, Vaile's Committee. Sib,— 24th July, 1886. With reference to the recalculation of passengers return ordered by the Committee, I have the honour to point out that, upon commencing it, the following points present themselves, on which I should be glad to be instructed : Of the fares up to the ten miles, a very large proportion are as follows, per journey (half return-ticket): first; 3d., second: 6d., first; _Jd., second: 9d., first; 7d., second. The enclosed return is a condensed form of the summary with the Committee. It will be seen how many times the second-class passengers exceed the first-class, with fares a large number of which are lower than Mr. Vaile's, even with only the slight difference between the fares of 1-J-d. per journey first and second. The second-class passengers many times outnumber the first. There are two absurdities involved in the new computation, I think : First, we have to make use of 6d. and 4d. fares against 4!d. and 3d., and wo are going to assume that there will be equal numbers of each class ; while, as a matter of experience, we know thai there are four to seven times as many second as first, and we also know that raising the fares to 6d. and 4d. will divert a large proportion of travellers from the lines of railway altogether. Second, we are going to assume that, where two fares are given, the one higher than the other, equal numbers will travel by each class, when we know from experience—not only in New Zealand, but throughout the world —that, where there are two fares, the great bulk of passengers travel by the lower, even if the fares differ only a penny or two. Beferring to Metropolitan Eailway fares (page 23 of the evidence), you will observe the minute differences between second- and third-class. The third-class passengers outnumber the first- and second-class together five times. The Midland Company, a few years back, abolished its second-class, because they found that nearly all their passengers went at the lowest fares. The numbers carried now are : third-class, thirty millions; first-class, under two millions. We may assume that, however much we lower fares within reasonable limits, the increase in traffic will be greater in the second-class than in the first-class. It seems to me, on closely looking into the subject, that we shall be getting out a table which is at once misleading, and can have no bearing on what occurs or is likely to occur in practice. The evidence of the witnesses is that no gain in numbers of any practical extent can be anticipated for short distances (271, 348, 491 a, 849, 1026). If the attached table is referred to, and the present number of first-class passengers is compared with the computed number over the long distances, it will be seen that the increase is very great even by that process of calculation— far more, it seems to me, than there is any hope of attaining within any moderate period. If we are calculating on what is to happen three or four years hence, there are little or no data on which to ground our speculations; and. we should also have to calculate what the increase might be expected to be at the present fares. The calculations, I find, will occupy a large staff about a week. Under the circumstances narrated, I should like to know if the calculation should be proceeded with, or modified in any way. The Chairman, Vaile's Committee. J. P. Maxwell.

Summary of Passengers carried on the Auckland Section of the New Zealand Railways, between Helensville and Morrinsville, under different Stages, for the Twelve Months ending 31st March, 1886.

Memorandum from Mr. Vaile. On considering the table of station-to-station bookings it is necessary to bear in mind that it is based on the assumption that all the conditions of travelling will remain under the new system precisely as they are at present, that is to say, that the relative proportion of first- to second-class fares wall remain as now, and that there will be no increase in the average distance travelled by each passenger. The return as it stands proves that, in order to obtain the same revenue that we get now, the number of fares need only be increased as follows : For all distances not exceeding ten miles, one and a half fares where one is taken now. For all distances not exceeding fifty miles, three fares for one that is taken now. For all distances over fifty miles, six fares for one taken now. On the total, I require but two and a quarter fares for one taken now.

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Distances. Number of Number of Number of to give same Mr. Vaih Passengers Revenue at i's Fares. Passengers. Passengers. [ot exceeding three miles )ver three and not exceeding five miles... Iver five and not exceeding seven miles... Iver seven and not exceeding ten miles... First-class. 10,707! 11,045 26,2901 6,203! Sec.-class. 44,811 83,736 70,314 39,842 First-class. 12,084 17,663 43,541 7,939 Sec.-class. 64,796 137,772 131,234 63,091 Total ... Iver ten and not exceeding thirty miles... iver thirty and not exceeding fifty miles iver fifty miles 54,246! 8,356| 5,666 7,220i 238,703 67,206 25,974 17,5411 81,227 27,490 14,804 40,998 386,893 201,721 79,954 106,309 Grand total 75,4891 349,424! 164,519 774,877