D.—2

VI

Australia similar results have been experienced where the check-luggage system has been in force for many years. With a view to developing the business between Wellington and Blenheim via the Government line of railway, arrangements were made in August of last year to book through by sea and rail, with most satisfactory results, the revenue from that line having exceeded that of any previous year. 3. EXPENDITUKE. The expenditure for working has absorbed 64 - 80 per cent, of the revenue, an increase of 1/54 per cent, over the rate for the previous year (63-26). This increasing ratio is a marked feature of late years. In 1896-97 the ratio was 61-35 ;in 1897-98, 62-30; and in 1898-99, 63-26. Increased repairs and renewals of track and rolling-stock, higher wages, shorter hours of duty, and lower fares and freights give these inevitable results. The present ratio does not, however, approach that for the year 1886-87, when the expenditure absorbed 69 - 99 per cent, of the revenue. The amounts chargeable to the expenditure, Working Account, are as follows : — 1899-1900. 1898-99. In the Traffic Department ... ... ... £262,552 £244,933 „ Locomotive Department ... ... 372,097 305,212 „ Maintenance Department ... ... 394,619 357,189 Management... ... ... ... ... 47,717 44,318 £1,076,985 £951,652 Less credit recoveries... ... ... 24,627 21,914 £1,052,358 £929,738 The percentage of expenditure to revenue received is as follows :— 1899-1900. 1898-99. Traffic... ... ... ... ... ... 16-17 16-67 Locomotive ... ... ... ... ... 18-20 15-75 Car and wagon repairs ... ... .. ... 4-71 5-01 Maintenance of way ... ... ... .. 24-30 24-30 ~ , (Head Office ... ... ... 0-95 1-01 Management ) Departmental offices V9Q 2 . 01 66-31 64-75 Less credit recoveries ... ... ... 1-51 1-49 64-80 63-26 The train-miles run for 1899-1900 were ... ... ... 4,187,893 As compared with 1898-99 ... ... ... ... ...3,968,708 Increase ... ... ... ... ... ... 219,185 Additional train services between Palmerston North and Takapau, Auckland and Frankton, Forest Hill Branch train service, extension of Seaward Bush train service, as well as permanent additions to the train services. of minor importance, account for 89,165 miles of this increase. The balance of the increased train-mileage is due fco extra trains run to overtake the increased excursion and grain traffic. The working-expenses on account of locomotive power have increased from ,£231,532 in 1898-99 to £295,542 in 1899-1900—an increase of £64,010. The cost per train-mile for locomotive charges has increased from 14-00 per train-mile in 1898-99 to 16-93 in 1899-1900, due to payment of the Rakaia accident claims, and replacing old engines with new. Of the total amount charged to working-expenses under the head of " Locomotive power," £16,903, fairly chargeable to capital, has been spent on new locomotives and conversions. Car and wagon repairs cost £76,555, as compared with £73,680 in 1898-99. Of the total amount charged to working-expenses under the heading of " Carriage and wagon repairs," £7,215 has been spent upon new work fairly chargeable to capital.