D—2.

Collisions occurred at Hindon on the 21st April, at Port Chalmers on the 7th May, at Remuera on the 21st August, and at Mataura on the 13th December. The first resulted from train men disregarding instructions re crossing, two others through failure to observe signals, and the last through points being wrongly set by a porter at Mataura. Inquiries were held into each case, and suitable action was taken at the conclusion of same. I am happy to say that these accidents have been attended by no loss of life. Report on several of the accidents was presented to the House during the last session (D.-6, 1902). The phenomenal expansion of traffic which has taken place during the past eight-years will be readily understood by a perusal of the following figures, which give the traffic and percentage of increase under the various headings for the year ended the 31st March last, as compared with the traffic for the year ended 31st March, 1895 :— Comparison of the railway traffic and rolling-stock accommodation in 1895 and 1903 :— 31st March, 1895. 31st March, 1903. Increase. increase Passengers (number) ... 3,905,578 7,575,390 3,669,812 93 Season tickets (number) ... 28,623 118,431 89,808 314 Parcels „ ... 444,981 731,762 286,781 64 Horses „ .. 11,185 12,737 1,552 14 Carriages „ ... 750 1,646 896 119 Dogs ~ „ ... 23,517 34,202 10,685 45 Drays „ ... 705 1,921 1,216 172 Cattle „ ... 40,890 102,461 61,571 151 Sheep „ ... 1,519,921 3,821,333 2,301,412 151 Pigs „ ... 43,292 61,844 18,552 43 Chaff, lime (tons) ... ... 36,972 121,092 84,120 228 Wool „ ... . . 103,328 116,309 12,981 13 Firewood „ ... ... 85,102 100,498 15,396 18 Timber „ ... ... 198,578 436,008 237,430 120 Grain „ ... ... 388,556 718,376 329,820 85 Merchandise „ ... ... 377,938 633,685 255,747 68 Minerals ... 857,917 1,604,426 746,509 87 Total tonnage ... .. 2,048,391 3,730,394 1,682,003 82 Total revenue ... ...£1,150,851 £1,974,038 £823,187 72 Locomotives (number) ... 269 372 103 38 tractive power (lb.) 1,756,178 3,499,459 1,743,281 99 Passenger cars (number) ... 498 751 253 51 Passenger cars, seating accommodation ... ... 17,455 28,844 11,389 65 Brake-vans (number) ... 204 283 79 39 Sheep-trucks „ ... 390 719 329 84 Total trucks, all classes (number) ... ... 8,264 12,709 4,445 54 Truck-carrying capacity (tons) 50,861 89,057 38,196 75 Train mileage run ... ... 3,221,620 5,443,333 2,221,713 69 A study of the foregoing figures must convince even the most sceptical of the healthy and prosperous condition of the colony, and it will be at once apparent that, if our railways are to keep pace with the rapidly increasingdemands for quick, safe, and cheap transport of both the people and commerce of the country, ample provision must continue to be made to enable the relaying of the track and strengthening of bridges being pushed on at a greatly increased rate, in order that heavier engines and trains may be run on all the principal lines. Increasing the load of trains means economy and efficiency. These desiderata cannot, however, be secured until the heaviest type of engines can be used on any portion of the main trunk and principal branch lines, and until this can be done the ratio of working expenses to earnings must necessarily be high. I anticipate that the existing satisfactory commercial condition of the colony will be maintained throughout the financial year, and therefore estimate the revenue for the year ending 31st March, 1904, at £2,000,000, and the expenditure at £1,360,600. The usual reports and returns are attached hereto.

VI