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ANNUAL REPORT OP THE GENERAL MANAGER OP NEW ZEALAND GOVERNMENT RAILWAYS. New Zealand Government Railways, Head Office, Sir,— Wellington, 3rd July, 1909. I have the honour to report, upon the working of the open railways for the financial year ended the 31st March, 1909. The capital cost has increased from £24,365,647 to £27,762,592. The revenue was £2,929,526 against £2,761,938, an increase of £167,588. The net revenue has been £814,711, as against £812,179 last year. The expenditure for the year under review has been £2,114,815 against £1,949,759, an increase of £165,056. The rate of interest on capital was £3 2s. 7d., as compared with £3 6s. Bd. last year. The revenue per train-mile was 7s. lOd. and the expenditure ss. Bd., as compared with 7s. 9|d. and ss. 6Jd. respectively last year. The following extensions have been opened during the year : — M> ch> Douglas-Huiroa .. .. .. .. .. .. 4 59 Mount Egmont Branch .. .. . . .. . . ..62 Tauhoa-Wayby 3 50 Puha-Waikohu .. 3 25 Mataroa-Taumarunui .. .. .. .. .. .. 84 58 Rccfton-Cronadun .. .. .. .. ... 5 31 Waikaka Branch .. .. .. .. .. .. .. 12 57 Tadmor-Kiwi .. .. .. .. .. .. 5 15 125 57 This added to the Wellington and Manawatu Railway Company's line, 83 miles 67 chains, make? the total addition to the system during the year under review 209 miles 44 chains, bringing the total mileage open for traffic on the 31st March, 1909, up to 2,682 miles, as against 2,471 miles at the close of the previous year. During the year 10,457,144 ordinary passengers were carried, yielding a revenue of £921,411, and 192,547 season tickets were issued, the revenue derived therefrom being £90,248. There was thus an increase of 700,428 ordinary passengers and £85,937 revenue, and of 7,373 season tickets and £12,743 revenue, over the traffic carried under these heads during the previous year. 64,465 children and teachers and 52,579 adults travelled by school and factory excursions during the year, the revenue derived therefrom being £7,641. 790,179 passengers travelled at holiday-excursion fares, yielding a revenue of £166,471, an increase of 58,044 excursionists and £24,951 revenue as compared with the previous year. The coaching and goods traffic has been well maintained during the year and shows increases under most headings. Increases. Coaching.-- Parcels, 23,728 ; horses, 701 ; dogs, 3,032. Revenue, £10,165. Goods. —Cattle and calves, 9,133 head ; sheep, 618,389 head ; chaff, lime, &c, 12,899 tons ; wool, 17,323 tons ; grain, 54,225 tons ; minerals, 22,136 tons. Revenue, £48,376. Total increase in goods and live-stock tonnage, 65,232 tons. Decreases. Coaching. —Carriages, 279. Goods. —Pigs, 8,361 head ; firewood, 7,534 tons ; timber, 34,032 tons ; merchandise, 27,676 tons. Large additions were made to the train-services during the year. The most important of these consisted of the inauguration of the through fast services to connect Auckland and Invercargill after the completion of the North Island Main Trunk line. It was anticipated that the opening of this line would have a material effect on the trend of the traffic between the two Islands. A great deal of thought was therefore given to the time-table, and an effort made to establish at the outset a service that would reasonably meet requirements. The expresses from Lyttelton to Invercargill and Invercargill to hyttelton were accelerated, the journey-time being reduced by one hour and thirty-five minutes, suitable connection being made by the Union Steamship Company's steamer to permit of inter-Island passengers catching expresses at Wellington and Lyttelton respectively. Adjustment of train-services on other portions of the railway system were made to provide for the local requirements as far as possible. During the time the through trains have been running they have maintained punctuality. The Wellington-Auckland journey occupying a night, the train-equipment consists of sleeping, refreshment, and ordinary day cars, each 50 ft. long, and heated by steam and specially built for the line. The alterations and additions made to the services involved a considerable increase in the trainmileage, which was 406,962 miles greater than that of the year 1908. Three important events occured during the year —viz., the visit of the American Fleet to Auckland, the opening of the North Island Main Trunk Railway, and the incorporation of the Wellington and Manawatu Railway Company's line with the Government railways. Very heavy traffic resulted from the visit of the fleet, but all the requirements were satisfactorily met. I regret to report that on the 11th July two passengers were slightly injured in a derailment that occurred between Awatuna and Stafford, on the Greymouth-Hokitika line, caused through cattle straying on the line. A collision also occurred at Marton Junction on the 2nd February through a shunting-engine running out on to the main line after the signals had been lowered for the incoming south-bound mail-train from New Plymouth. No one was seriously hurt, and very little damage was done to the rolling-stock.

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