D.—2.

The year's operations in respect of passenger traffic may be regarded as satisfactory, the total increase being 824,556 passenger journeys and £87,625 revenue as compared with 1937-38. The receipts from passenger traffic benefited to the extent of approximately £19,000 as a result of the 10-per-cent. increase in fares, while other factors having a favourable bearing on passenger revenue generally, and on standard fare traffic in particular, were an increase in the average distance travelled per passenger and the fact that an Easter period fell in April of the year under review, whereas no such period occurred within the previous financial year. For purposes of comparison with the figures for 1938 it should not be overlooked, however, that these gains were to some extent neutralized by the exceptional revenue (approximately £40,000) derived last financial year from the Dominion tour of the Springbok Rugby Football Team. The decrease shown in suburban journeys, 174,959, is more apparent than real. As from May, 1937, new issues of six-trip bearer tickets and suburban twelve-trip tickets were brought into use in suburban areas, and these bearer tickets, which are accounted for under the heading of " Season tickets," have very largely superseded the use of ordinary suburban tickets. The revenue from suburban traffic shows little variation compared with the previous year due to the operation of the 10-per-cent. increase in fares. After allowing for the variations in suburban ordinary traffic as noted above, the net increase for all suburban issues (including season-ticket issues) is shown as 657,697 journeys and £24,657 revenue. Season-ticket revenue was £246,765, an increase of £24,573 over the previous year. This increase reflects the increasing popularity in suburban areas of the new issues of bearer six-trip and suburban twelve-trip tickets referred to under suburban traffic, while a further and important factor bearing on the increase was the inauguration of electric multiple services on the Wellington-Johnsonville line on 4th July, 1938. All weekly and trip-bearer tickets combined show an increase of 832,656 journeys and £24,480 revenue. Included in these figures are the returns from the Wellington-Johnson ville service, which this year show an increase of 577,052 journeys and £12,883 revenue. The usual excursion and other reduced fares operated throughout the year, but were not so well patronized as was the case in the previous year, the decrease being 78,820 passenger journeys and £11,087 in revenue. The extended facilities provided by the Department for recreational travel by rail have been taken advantage of by the public generally to an increasing degree in each of the post-depression years up to 1938, and the decrease under this heading during the present year was due, firstly, to the business under this heading derived from the tour of the Springbok Football Team in 1937, and, secondly, to the inclement weather conditions which prevailed throughout the Dominion prior to and during the Christmas holidays causing the postponement and in many cases abandonment of picnics and other outings, while also adversely affecting the attendance at many public functions, race meetings, agricultural shows, &c. PARCELS, LUGGAGE, AND MAILS. 1939. 1938. Variation Revenue. £ £ £ Per Cent. Parcels .. .. .. .. .. 162,302 155,942 + 6,360 4-08 Excess luggage 7,240 7,435 - 195 2-62 Left luggage, luggage checks, bicycles, dogs, newspapers, &c. .. .. .. .. .. 59,400 54,142 + 5,258 9-71 Mails .. .. .. .. .. 105,228 100,938 + 4,290 4-25 Total .. .. .. .. £334,170 £318,457 +£15,713 4-93 Milk and cream traffic shows a declining tendency due to the introduction of the zoning system of cream-supplies in various districts and to the exceptionally dry months of the late summer and autumn having an adverse effect on dairying production generally. Milk transported from stations in the Manawatu area to Wellington in connection with the milk-in-schools movement was responsible for a substantial increase of over £8,000 in revenue from this source. At Wellington Station there has been an increase in outward parcels traffic. Left luggage, dogs, newspapers, &c., again show an increase (9-71 per cent.) over last year. Revenue from the carriage of newspapers was 7-22 per cent, ahead of the previous year and accounted for £1,902 of the total increase under this heading. The following table shows the variation in revenue under the heading of " Mails " : —- 1939. 1938. Variation £ £ £ Per Cent. Railway travelling post-office service .. .. 28,676 27,596 + 1,080 3-91 Mails in guards'vans at half parcel rates .. .. 58,782 55,080 + 3,702 6-72 Mails carried in wagons .. .. .. 17,770 18,262 — 492 2-69 Total .. .. .. .. £105,228 £100,938 +£4,290 4-25 GOODS AND LIVE-STOCK. The revenue and tonnage of goods and live-stock for 1939 compare with the previous year as follow :— 1939. 1938. Increase. Per Cent. Revenue.. .. £5,694,936 £5,411,297 £283,639 5-24 Tonnage.. .. 7,539,012 7,516,049 22,963 0-31

XIV