D.—2

4

A considerable number of improvements have been carried out at various stations connected with the railway system throughout the Dominion. They consist of iucreased accommodation at stations, additions to station buildings, erection of verandas, extension of sidings, provision of water-services and stock-yards, social halls for staff, erection of turntables, cranes, houses for staff, improved lighting at stations, workshops, strengthening bridges, sanitary conveniences, fire-prevention services, and many other works too numerous to particularize. The programme now in hand comprises works that are intended to give increased facilities for meeting the public requirements and at the same time enable the Department to carry on its operations satisfactorily. The signal and interlocking systems have been brought into operation during the year at Gore, Abbot's Creek, Black Jack's Point, Fendalton tramway crossing, Paeroa, Pokeno grade-easement crossing, Otahuhu, and Westfield. The interlocking has also been added to and rearranged at Abbotsford, Christchurch, Pukerua, Thorndon, Taihape, and Remuera. Eighty-two electric tablet instruments and 115 miles of line have been brought into operation on the sections Waipukurau-Napier, Greymouth-Dunollie, HendersonKaukapakapa, Morrinsville-Putaruru ; and Waikumete, Pokako, Kakahi, Porewa, Hangatiki, Marakeke, Okahukura, Linton ballast-pit have also been installed as tablet stations. Automatic tablet exchanges were fitted at twenty-seven additional stations. The electric lock-and-block system for double-line working was brought into operation between Abbotsford and Abbot's Creek. Thirteen additional stations were equipped with fixed semaphore signals, and the telegraph and telephone system increased by 493 miles of wire. 1,504 miles of line are now controlled by the electric tablet system, 39| miles of double track by the electric lock-and-block system. The railway telegraph and telephone facilities now comprise 2,295 miles of poles and 6,133 miles of wire. The expenditure on the various adjuncts to safety since 1901 has amounted to no less than £301,051. The whole of the railway appliances and equipment, comprising rolling-stock, machinery, track, bridges, buildings, and other structures, have been maintained in an efficient and satisfactory condition. REVENUE. The gross revenue for the year amounted to £3,971,002. It exceeded the estimate by £226,002 and the gross revenue for the preceding year by £294,493. Passenger revenue shows an increase of £128,514 ; season tickets, £14,244 ; coaching traffic, £11,875 ; goods and live-stock, £124,902 ; miscellaneous, rents and commission, £14,958. The receipts per train-mile from the North Island main line and branches amounted to Bs. ljd. against Bs. 4d. for the previous year, a decline of 2jd. per trainmile in gross receipts. The net revenue per train-mile was 2s. 7 - 30 d., against 2s. 10'76d. last year, a decline of 3"46 d. From the South Island main line and branches the gross receipts per train-mile were 9s. 2|d., against Bs. 9jd. for the previous year, an advance of s|d. per train-mile in gross receipts. The net receipts per train-mile advanced by 3*osd. For all lines the gross receipts were Bs. 9|d., as against Bs. 9|d. for last year, an increase of 0-25 d. per train-mile. The net earnings amounted to £446 per mile for the average number of miles open, and gave a return of 4-04 per cent, on the capital cost. This return is the highest but one ever earned by our railways. The earnings of the Lake Wakatipu steamers amounted to £7,021, as against £6,669 last year.