D.—2.

RENEWALS, DEPRECIATION, AND EQUALIZATION RESERVE FUNDS. The position with regard to the renewals, depreciation, betterments, and equalization accounts is as under : —

RAILWAY OPERATION. The results of railway operation (excluding subsidiary services and miscellaneous non-operating revenue) on the various sections for the year ended 31st March, 1939, were as under : —

OPERATING REVENUE. The following table shows the operating revenue under the main headings, together with appropriate comparisons with the previous year's figures. Information regarding receipts from subsidiary services and miscellaneous non-operating revenue appears later in this report.

The revenue under all heads showed a satisfactory increase over the previous year, the increases being —Passenger, 5-16 per cent.; parcels, 4-93 per cent. ; goods, 5-24 per cent. The operating earnings per average mile open and per train-mile were as follow : — Per Average Per Mile open. Train-mile. £ d. 2,419 146-96

XII

Credit Balance „ . .. tt, Credit Balance Account. broughtforward Co " t Q 1^ u ' on9 ' Slrt March, from 1938. 19d»-d9. 1939 £ £ £ £ Renewals (track) .. .. .. 790,490 207,168 297,325 700,333 Depreciation .. .. .. .. 321,622 698,678 346,818 673,482 Betterments .. .. .. .. 1,794 1,454 .. 3,248 Slips, floods, and accidents .. .. 20,385 19,256 38,973 668 Workers' compensation .. .. .. 44,558 61,268 65,963 39,863 Insurance .. .. .. .. 106,169 2,671 4,592 104,248 1,285,018 990,495 753,671 1,521,842

Section. Revenue. Expenditure. j Net Revenue. £ £ £ North Island Main Line and Branches .. 4,894,072 4,538,604 + 355,468 South Island Main Line and Branches .. 2,934,006 2,932,934 -j- 1,072 Kaihu .. .. .. .. .. 3,994 12,766 - 8,772 Gisborne .. .. .. .. 30,950 33,573 - 2,623 Westport .. .. .. .. 94,228 79,229 + 14,999 Nelson .. .. .. .. .. 11,143 22,273 - 11,130 Picton .. .. .. .. .. 36,666 44,253 - 7,587 Total .. .. .. .. 8,005,059 7,663,632 +341,427

. . , Per Cent, of moun ' , r . ,. ln „ n Operating Revenue, n i- t> Variation 1939 r Operating Revenue. with 1938 1939. 1938. 1939. 1938. £ £ £ Per Cent. Passengers, ordinary .. .. 1,538,881 1,475,829 + 63,052 4-27 19*22 19-44 Season tickets .. .. 246,765 222,192 + 24,573 11-06 3-08 2-93 Parcels, luggage, and mails .. 334,170 318,457 + 15,713 4-93 4-17 4-19 Goods .. .. .. 5,694,936 5,411,297 +283,639 5-24 71-15 71-28 Labour, demurrage, &c. .. 190,307 164,050 + 26,257 16-01 2-38 2-16 Total operating .. 8,005,059 7,591,825 +413,234 5-44 100-00 100-00