D.—2.

The following table furnishes statistics of locomotive operation for the last five years 1938. 1937. 1936. 1935. 1934. d. d. d. d. d. Cost per engine-mile .. .. .. 22-52 20-23 18-40 18-04 17-88 Cost per train-mile .. .. .. 30-04 26-84 24-51 23-91 23-68 Cost per engine-hour .. .. .. 233-26 212-03 193-42 190-78 189-87 Cost per 1,000 gross ton-miles .. .. 141-43 128-24 117-09 116-59 118-66 Engine-miles per engine-hour .. .. 10-36 10-48 10-51 10-58 10-62 Gross ton-miles per engine-hour .. .. 1,649 1,653 1,652 1,636 1,600 The cost per engine-mile increased over the previous year by 2-29 d. (11-32 per cent.), due to increased wages-costs, the operation of the shorter working-week, and to higher fuel and stores costs. Traffic Transportation. The expenditure under this head was £2,090,471, as against £1,797,058 last year, an increase of £293,413 (16-33 per cent.). Of the increase, salaries and wages accounted for £259,930. The restoration of salaries and wages operating for a full year, compared with nine months in the previous year, absorbed £30,002, a full year's operation of the forty-hour week as against seven months in the previous year accounted for £90,129, while the debiting on 31st March, 1938, of wage and salary arrears due but not paid absorbed a further £27,428. Man-hours reached the high total of 14,187,520, an increase of 954,081 (7-21 per cent.) as compared with last year. Taking the year 1926 as the standard, and fixing the index figurejfor that year at 100, the following shows the position in respect of traffic-transportation expenditure over a period of five years: — 1926. 1934. 1935. 1936. 1937. 1938. Total expenditure .. .. 100 72 78 84 103 120 General Charges. The expenditure under this head totalled £247,770, as compared with £237,996, an increase of £9,774 (4-11 per cent.). The increase was mainly due to salary restoration to the pre-depression level, revised salary schedules as from Ist April, 1937, and increased payments to the female staff. SUBSIDIARY SERVICES. Subsidiary Service Revenue. —The revenue from subsidiary services amounted to £1,042,361, as compared with £887,047 for the previous year, the figures for the past three years being as follow :— 1937-38. 1936-37. 1935-36. £ £ £ Lake Wakatipu steamers.. .. .. 7,624 7,112 10,598 Refreshment service .. .. .. 142,786 103,351 89,132 Bookstall service .. .. .. 76,719 54,417 45,798 Advertising service .. .. .. 37,397 34,535 31,774 Departmental dwellings .. .. .. 130,683 131,187 129,255 Leases of bookstalls, &c. .. .. 20,292 19,020 17,909 Road motor services .. .. .. 276,527 198,751 103,280 Miscellaneous .. .. .. .. 350,333 338,674 333,052 £1,042,361 £887,047 £760,798 Subsidiary Service Expenditure.—The particulars of the expenditure in connection with subsidiary services over a period of three years are as follow :— 1937-38. 1936-37. 1935-36. £ £ £ Lake Wakatipu steamers .. .. 11,144 10,855 9,399 Refreshment service .. .. .. 140,937 101,125 84,976 Bookstall service .. .. .. 73,232 51,245 43,042 Advertising service .. .. .. 32,627 31,151 29,391 Departmental dwellings .. .. .. 183,182 164,746 156,692 Leases of bookstalls, &c. .. .. 13,929 12,233 11,464 Road motor services .. .. .. 254,553 177,053 94,682 £709,604 £548,408 £429,646 The variations shown above are analysed under their separate heads later in this report.

XIII