D.—2.

Operating Expenditure.

Maintenance of Way and Works. This item of expenditure shows an increase of £101,878 (9-52 per cent.). Of this sum. the restoration of salaries and wages to the 1931 level accounted for £24,623, while the introduction of the forty-hour week absorbed £61,129. Taking 1926 as the standard, and fixing the index figure for that year at 100 for the expenditure on maintenance of way and works and the average mileage of line maintained, the undermentioned summary shows the position over the past five years : — 1926. 1933. 1934. 1935. 1936. 1937. Total expenditure . . . . .. 100 81 87 92 94 102 Average mileage of line .. .. 100 103 .104 104 104 104 Maintenance of Signals and Electrical Appliances. The expenditure amounted to £154,108, an increase of £6,666 (4-52 per cent.). The principal increase was in electric lighting, power appliances, and overhead electrification £7,139. There was a decrease of £1,002 in signals and interlocking. Maintenance of Rolling-stock. The expenditure under this head totalled £1,565,083, an increase of £158,398 (11-26 per cent.). The restoration of salaries and wages to the 1931 level amounted to £28,729, while the introduction of the forty-hour week entailed an expenditure of £44,884. The following is a review of the expenditure under the various heads shown : — Locomotive Repairs. —Expenditure under this head was £640,210, an increase of £54,719 (9-35 per cent.). The main increases were workshop repairs (£44,305) and depot repairs, including work done in shops for depots (£12,843). The following table shows the cost of maintenance per locomotive and per locomotive-mile over a period of four years : —

Maintenance of Carnages, Vans, and Wagons. —The total cost of painting and repairing carriages and vans was £308,076, an increase of £33,316 (12-13 per cent.) on last year. Carriages for heavy repairs totalled 1,100, as against 1,254 last year, while 343 carriages received light repairs, as against 328 last year. Three hundred and fourteen vans received heavy repairs, as against 375 last year. The principal increases in expenditure were : Carriage repairs, £27,728; repairs due to accidents, £4,324 ; and depreciation, £4,571. The following table shows the cost of maintenance per vehicle and per vehicle-mile over a period of four years : —

XI

Per Cent, of Per Cent, of Per Cent, of 1936-37. Operating 1935-36. Operating 1934-35. Operating Revenue. Revenue. Revenue. I | I £ I £ £ Maintenance —Way and works 1,171,963 16-98 1,070,085 17-14 1,047,825 17-74 Maintenance—Signals .. 154,108 2-23 147,442 2-36 137,477 2-33 Maintenance—Rolling-stock .. 1,565,083 22-67 1,406,685 22-53 1,236,324 20-92 Examination, lubrication, and 65,048 0-94 , 57,599 0-92 54,098 0-92 lighting of vehicles Transportation—Locomotive.. 1,347,129 19-51 1,144,037 18-32 1,073,062 18-16 Transportation—Traffic .. 1,797,058 26-03 1,465,052 23-46 1,360,928 23-03 General charges .. .. 69,691 1-01 63,664 1-02 57,014 0-97 Superannuation subsidy .. 168,305 2-44 168,629 2-71 171,860 2-91 6,338,385 91-81 5,523,193 88-46 5,138,588 86-98

Cost per Locomotive. Cost pel' Locomotive-mile. 1934. 1935. 1936. 1937. 1934. 1935. I 1936. | 1937. £ £ £ £ d. d. d. d. 869 855 1,016 1,117 9-27 8-44 9-42 9-61

Cost per Vehicle. Cost per Vehicle-mile. 1934. 1935. | 1936. 1937. 1934. 1935. | 1936. 1937. £ £ £ £ d. d. d. d. 124 112 139 156 1-67 1-57 1-70 1-82