D.—2.

STATISTICS. The statistical system referred to in our last report lias been in operation for the past year, and, while it has been of considerable value to the Board in permitting comparisons of the results attained month by month, its value will become much greater from now on in that it will enable comparison to be made with the corresponding month or period of the preceding year. Owing to the many varying factors in railway operations from day to day, but which recur regularly every year, comparisons of results obtained with those of a corresponding period of the preceding year or years are the most reliable means of measuring progress. The system adopted is confined to the compilation of information which will be of practical value to the Board and its officers in disclosing at a glance the results attained by different sections of the multifarious activities that comprise a modern railway undertaking. COMMERCIAL. The Commercial Branch of the Department has maintained its activities in the direction of regaining traffic attracted from the railways by other transportation systems, and in securing new business wherever offering, and has met with much success. Special attention is devoted to clearing up troubles and smoothing out difficulties experienced by our customers in their dealings with the Department, and this, in conjunction with the policy of keeping in close touch and conferring with Chambers of Commerce and other public bodies, has done much to engender friendly feelings between our customers and ourselves by showing that it is our desire to render to our clients the best possible service. The benefits of maintaining close touch with our customers and of strengthening their friendly feelings is a matter with which all members of the staff are fully impressed, and no effort will be spared to advance on these lines. The greater part of the Dominion has been very carefully combed in an effort to secure all traffic possible to rail, and in a great measure all traffic we can reasonably expect to obtain has been obtained, except where there are exceptional circumstances. The short-distance traffic is difficult to capture, but we have had a good deal of success in this direction also ; the efforts are being continued where the volume of traffic and the margin of profit are sufficient to warrant special attention. With regard to the wool and dairy-produce, those concerned have responded in a gratifying manner to the Department's efforts to foster traffic. There are large increases in the quantities of these two commodities conveyed by rail, and except for isolated cases we are carrying all the traffic from districts served by rail; indeed, in a number of instances, we are securing traffic that has always previously been considered road traffic. This Department is appreciative of the efforts of the carriers all over the Dominion who are feeding the railways. They are realizing that it is in their best interest to act as feeders, and their support and co-operation are of the greatest value. It is considered that where such can be arranged it is better to have mutual working arrangements with all the carriers in the locality than to have only one contracting firm working with the Department, even though the contract price might be slightly less than the charges of the associated carriers. The arrangements for the Department collecting cartage charges on behalf of carriers have worked very well. Among the many matters dealt with by this Branch during the year the following may be specially mentioned :— Excursion Traffic. —Attention has been devoted to the development of excursion and picnic traffic during the year, with successful results. The total number of holiday excursion tickets issued was 711,743, showing an increase of 225,678 as compared with the previous year. School, factory, and friendly societies' picnics also showed a satisfactory increase, the figures being 193,719, as compared with 76,057. The possibility of still further increasing this traffic will be thoroughly explored before next summer. 'Wool Traffic. —The Department's campaign to again obtain for the Railways the carriage of wool which had been diverted to the motors was an unqualified success, and for the year under review the increase in the quantity of wool carried by rail was 57,570 bales. This result was attained by personal canvass of farmers, by arranging for the necessary cartage to rail wherever possible, and by giving the best possible facilities for transport. Dairy-produce. —The steps taken by reduction in rates in localities where the motor competition was found to be encroaching on our dairy-produce traffic has to a considerable extent resulted in this traffic being regained. The better condition in which produce is delivered at grading stores from insulated railway wagons is a factor which should not be overlooked by dairy factories, as a slight improvement in grading may be sufficient to more than compensate for any difference in the freight charges. Tourist Office., Dunedin Exhibition, —For the convenience of visitors to the New Zealand and South Seas Exhibition at Dunedin, a Tourist Office was installed within the building. The facilities offered were greatly appreciated by the public, enabling intending passengers to reserve seats, book tourist trips, steamer passages, &c., with a minimum of trouble. 8,715 seats were reserved and 1,300 steamship passages were booked, and, in addition, a large number of visitors availed themselves of the opportunity of a special round-trip by rail, steamer, and motor which was arranged to cover the Southern Lakes District.

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