D.—2

VII

Included in the total amount of £330,430 spent on additions to open lines is the sum of £31,661, representing increased cost of wages accruing to the staff engaged on the various works enumerated, as a result of the recommendations of the Boards already referred to. The rolling-stock in respect of which the charges were incurred under the head " Additions to open lines " included thirty-four bogie wagons, 127 four-wheeled wagons, and 650 tarpaulins, completed on the 31st March, 1921 ; and eighty-five locomotives, thirty-five carriages, thirteen brakevans, eighty-three bogie and 2,887 four-wheeled wagons, and 1,115 tarpaulins, incomplete but in hand on that date. Coal. The difficulties connected with the coal-supply continued for the major part of the year, necessitating the exploitation of foreign markets. Supplies were obtained from America, Japan, and Great Britain. An officer was also sent to Australia with satisfactory results, and the position at the end of the year was better than it had been since 1917 so far as concerned the regularity of supplies to enable train-services to be maintained. Since the year ending 31st March, 1915, soft coal has advanced from 12s. per ton to 265. per ton, hard coal from 245. per ton to 85s. per ton. s The cost of the coal actually consumed during the year ended 31st March, 1921, was £940,000 greater than for the year ending on 31st March, 1915. Cost of Materials. The high prices ruling for all materials essential to the operations of the Department are reflected in the expenditure for the year. Such materials now held in stock have to be debited at the enhanced rate against the work for which they are used. The extent to which the expenditure is affected by the price of materials purchased during the war period and at prcseut-day ruling rates is indicated in the following figures, showing the increases on a number of representative items: —

The foregoing list represents but. a small portion of the articles used in every-day operations, but it will serve to illustrate the effect war prices will continue to have on the expenditure until such time as high-priced stocks have been used up and present prices recede to figures approximating the pre-war rates. A leading British manufacturer recently stated that the average total cost of 1 ton of finished steel in 1913 was 110s. 3-ld., the corresponding cost in 1920 being 3635. 3-l.d.—approximately three and a quarter times what it was in 1913. The wages-cost in 1913 was 68s. 4-9 d., and in 1920 2965. 6-Bd., or four and a quarter times what it was in 1913. The increased cost in 1920 over 1913 was 2535. per ton, of which 2285. 2d. went in wages and 245. lOd, in other charges.

Items. 1915. 1921. Increased Cost to Hallway Department based on 1918 c onsumption. A xles (each) Bolts and nuts (cwt.) Canvas (sq. yard) Channels (each) Channels (each) Cotton-waste (cwt.) Galvanized iron (cwt.) Ruils (ton) Rivets (cwt.) Sleepers (each) Springs (each) Steel (cwt.) . Boiler-tubes (foot) Tires (each) Wire, fencing (cwt.) Oil, lubricating (gallon) Oil, gas-making (gallon) Oil, linseed (gallon) Lead, white (cwt.) Iron, bar, New Zealand (cwt.) Iron, pig (ton) Timber, kauri (average) Timber, building (vario,us, average) . . Uniforms, Guards' and Porters' (each) Uniform trousers, Guards' and Porters' (each) Stationery (total) 50/- to 11/87/- to 27/181/9 18/3/9 to 5/3 3/6 to 5/11/- to 25/6 -/7 44/--10/6 1/- to 2/10 -/ll 12/100/6 19/6 10/- to 23/6 43/5 12/11 163/- to 80/5/2 48/348/6 60/5/- to 11/3 10/3 to 13/39/- to 68/1/8 160/59/6 2/6 to 7/2/9 71/28/6 46/24/- to 42/112/3 30/5 £ 16,600 8,500 8,700 12,300 7,000 6,900 51,700 3,300 41,900 11,500 34,700 13,900 22,000 28,100 19,200 7,400 6,800 3,000 41,000 17,800 21,600 30,800 13,400 £21,400 £45,000 23,600 £451,700