D.—2.

The receipts from the conveyance of goods and live-stock reached a new high level and eclipsed the previous record figure established last year by no less a sum than £283,639 (5-24 per cent.). Of that increase the sum of approximately £185,500 is attributed to the 10-per-cent. increase in freight rates. The tonnage of goods and live-stock carried was 0-31 per cent, ahead of the previous year and 3-21 per cent, below the peak year of 1930. Net ton-miles, however, show an increase of 2-33 per cent, over 1937-38 period and of 12-24 per cent, over the year 1930. The average haul for the year was 76 miles, as compared with 75 miles last year and 66 miles in 1930. The live-stock season was a generally disappointing one due to a variety of causes, the chief of which were the protracted spell of dry weather in the late summer and autumn approximating as it did drought conditions in some districts, and the outbreak of facial eczema amongst sheep in the North Island. Both of these factors had unfortunate repercussions on the number of live-stock coming forward to rail, while the lifting of the thirty-mile restriction in respect of the conveyance by road transport of bobby calves and cull lambs also adversely affected the movement of these classes of live-stock by rail. A detailed analysis of the fluctuations in traffic under the main headings for the year as compared with 1938 is as under :— Tons. Per Cent. Revenue. Per Cent. £ Live-stock .. .. —46,320 6-93 — 13,680 1• 98 Timber.. .. .. +11,437 2-33 + 39,114 8-38 Coal .. .. .. +77,698 4-61 + 56,327 6-76 Other goods .. .. -19,852 0-42 +201,878 5-90 Total .. .. +22,963 0-31 +283,639 5-24 Due primarily to the causes referred to above, the number of cattle conveyed decreased by 6,021 (1-10 per cent.), calf traffic fell away to the extent of 72,034 (10-31 per cent.), while the substantial decrease of 922,052 head (8-90 per cent.) was recorded in sheep traffic. The decline in dairying production had an adverse effect on the pig-raising branch of the farming industry, and this has been reflected in the number of pigs conveyed by rail, which fell from 736,804 in 1938 to 660,145 this year, a decrease of 76,659 (10-40 per cent.). Timber traffic shows an increase of 11,437 tons (2-33 per cent.), and a revenue increase of £39,114 (8-38 per cent.). The increase has been confined to the North Island only and is directly due to the stimulating effect on the building industry generally of the Government's housing policy. The quantities of native and imported timber carried were as follow :— 1939. 1938. Variation. Tons. Tons. Tons. Per Cent. New Zealand .. .. 476,187 469,687 +6,500 1-38 Imported .. .. .. 25,457 20,520 +4,937 24-06 Coal traffic continues to show an upward tendency, an improvement of 77,698 tons (4-61 per cent.) and £56,327 in revenue (6-76 per cent.) having been shown as compared with the previous year. The quantity of coal carried was as follow : — 1939. 1938. Variation. Tons. Tons. Tons. Per Cent. N.I.M.L. and Branches .. 590,226 545,635 +44,591 8-17 S.I.M.L. and Branches .. 732,381 705,913 +26,468 3-75 Westport .. .. .. 435,437 427,660 + 7,777 1-82 Small Sections .. .. 6,296 7,434 - 1,138 15-31 Total .. .. 1,764,340 1,686,642 +77,698 4-6.1 Grain traffic shows a serious decline of 52,993 tons and £19,962 in revenue. The actual grain output for the season has been less than in the previous year, and in the South Island, where four-fifths of the revenue from this commodity was produced, the unfavourable season adversely affected crops, a large portion of which have been carried over into the new year. Fruit traffic shows increases of £18,287 in revenue and 6,649 in tonnage, a large carry-over of fruit from the previous season, which was a particularly late one, being mainly responsible for the increase. Revenue from the carriage of root crops in the North Island more than held its own during the year, but in the South Island a substantial decrease of 13,279 tons and £5,404 in revenue was registered. A satisfactory increase in both tonnage and revenue resulted from the conveyance of frozen meat and chilled beef during the year, the figures being 12,721 tons and £23,330 revenue ahead of the previous year. Heavier shipments of meat exports, particularly from the southern districts of the South Island, together with the 10-per-cent. increase in rates, have combined to bring about this favourable result. Substantial decreases are shown in the returns from the carriage of butter and cheese, the tonnage of these commodities having decreased by 12-84 per cent., ton-miles by 12-96 per cent., and revenue by 6-58 per cent, as compared with the previous year. The whole of the decreases were in the North Island. Traffic in fat, skins, &c., shows little variation. Wool traffic improved by 12,775 tons and £21,992 in revenue. The improvement in revenue from wool traffic may be regarded as satisfactory and has been due partly to farmers having disposed of carry-over wool from the previous season during the current year and partly to more wool traffic being diverted from road transport to rail this year.

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