D.—2

CASH-ON-DELI VERY SERVICE. The provisions which exists for the conveyance of parcels under a " Cash-on-delivery " system was instituted to facilitate the transport and delivery of special consignments on a cash basis. Under the arrangement the Department undertakes to collect from the consignee at the time of delivery and refund to the consignor the value of the parcels carried. The publicity which has been given to a recent lowering of the charge previously made for this service has created a feeling of apprehension in some quarters that the operation of the system may prejudicially affect the business of tradespeople outside the main cities. The almost complete absence of any complaint that such a position has arisen during the lengthy period the arrangement has been in force may, however, be taken as evidence that it has not operated to the detriment of any particular section of the business community and that it meets a general demand on the part of traders for this type of service. THROUGH-BOOKING OF PASSENGERS, PARCELS, AND GOODS. Further progress has been made during the year in extending the established services for the conveyance of traffic between points not served by a continuous line of railway, and the Department is now in a position to undertake the carriage of passengers and all classes of goods and parcels between practically any two points in the Dominion. This service is one which is being increasingly availed of by the public, more particularly in the case of goods requiring transport over combined journeys by rail and sea. Its development has reached the stage where it has been possible to make reductions in the rates for tonnage lines, and this will still further enhance the attractiveness of the service. The following figures serve to indicate the marked growth in through-booked traffic in parcels and goods : — Year ended T Gross Revenue. 31st March, s " £ 1929 .. .. .. .. .. .. 13,792 27,341 1934 .. .. .. .. .. .. 16,914 34,858 1935 .. .. .. .. .. .. 20,271 41,877 The institution of an air service connecting with the express-train service between Christchurch and the West Coast for the conveyance of passengers to and from the Franz Josef and Fox Glaciers led to the Department's association with the operators for the purpose of a combined booking arrangement for the complete journeys, and considerable success has attended the venture. There are indications that this innovation in the matter of combined rail and air travel will prove very popular.

ADVERTISING SERVICE.

1935. 1934. Variation. An analysis of the revenue is as under: — £ £ £ Outdoor advertising .. .. .. 25,253 28,268 — 3,015 Publications .. .. .. .. 2,915 3,006 — 91 Miscellaneous .. .. .. .. 1,720 1,272 -f- 448 Advertising in buses .. .. .. 142 161 — 19 £30,030 £32,707 -£2,677 New business written up during the last five years is as under : — 1935. 1934. 1933. 1932. 1931. £ £ £ £ £ Outdoor advertising .. 30,539 17,235 24,069 26,415 47,948 Publications .. .. 3,144 2,915 1,295 1,859 3,338 Printing .. . . .. . . . . .. 1,442 Miscellaneous.. .. .. 613 621 767 904 Buses .. .. 47 13 127 749 151 £33,730 £20,776 £26,112 £29,790 £53,783 There was a substantial improvement in the amount of new business written up during the year compared with the previous year, and, having regard to the set-back experienced by advertising as a result of the depression, the increase is very satisfactory.

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, r • . I 1935. 1934. Variation. Per Cent. £ £ £ Revenue .. .. .. 30,030 32,707 -2,677 8-18 Expenditure .. .. .. 27,942 30,159 —2,217 7-35 Net revenue .. .. £2,088 £2,548 — £460 18-05