1).—2.

The adverse balance shown by this group is partly the result of the high costs necessary to bring many vehicles which did not come up to the Department's standards of mechanical fitness to a reasonable state of efficiency, the low competitive rates operating throughout the routes covered by these services and to non-recurring initial expenditure consequent upon the taking-over and amalgamating of these fleets. With the co-ordination of the component parts of this service, which will necessarily take time, better results should be evidenced. Expenditure at 14-63 d. per mile includes full provision for depreciation and interest on capital, including goodwill payments. Revenue was 13-97 d. per mile. Christchurch Goods Services. 1939. £ Revenue .. .. .. .. .. .. .. .. 1,466 Expenditure .. .. .. .. .. .. 1,825 Net loss .. .. .. .. .. .. .. £359 Mileage .. .. .. .. .. .. .. .. 32,006 Tonnage .. .. .. .. .. .. .. .. 1,083 The following are the licenses comprising this service : —

The license acquired from A. J. M. Wheeler is being operated in conjunction with the other services. The loss shown is due to the short time since acquisition and the initial non-recurring expenditure incurred in taking over these services. The receipts were 10-99 d. per mile, and expenditure 13-68 d. For the four weeks ended 31st March, 1939, there was an excess of revenue over expenditure, which indicates that with a longer period of running better results will be forthcoming. Westland Goods Service. 1939. 1938. Variation. £ £ £ Per Cent. Revenue .. .. .. 21,324 13,965 + 7,359 52-70 Expenditure .. .. 20,124 16,502 + 3,622 21-95 Net revenue .. .. £1,200 —£2,537 +£3,737 Mileage .. .. ..252,902 193,094 +59,808 30-97 Tonnage .. .. .. 13,652 10,676 + 2,976 27-88 This service has experienced a satisfactory working-year, no disturbing factors having been experienced in the way of washouts of bridges or roads. The revenue was particularly good during the twelve months under review and shows a distinct improvement over the previous year. An increase in drivers' wages as a result of a new award was one of the factors contributing to the increased expenditure this year.

XXVIII

Name. Route. Date taken over. Wellington - Wanganui - New Plymouth. Hardy's Transport, Ltd. .. Wellington-Hawera .. .. .. 29th May, 1938. S. Wright and Co. .. .. Wellington-Hawera .. .. 1st June, 1938. New Plymouth Express Co., New Plymouth - Hawera .. .. 10th June, 1938. Ltd. Wellington-Raetihi Transport Wellington-Raetihi .. . . .. 5th September, 1938. (Tomkies) Wellington-Wairarapa. P. L. Darke .. .. I Masterton-Wellington .. .. .. 10th December, 1938. D. W. Page (Hopcrofts) .. Pongaroa-Makuri and Wellington .. 20th October, 1938. A. J. Allison .. .. Masterton-Wellington .. .. .. 17th October, 1938. 8. G. Cook .. .. Grey town-Wellington .. .. .. 10th December, 1938. W. J. McGill .. .. Masterton-Wellington .. .. .. 10th December, 1938. H. M. Cherry .. .. Featherston-Wellington .. .. 28th January, 1939. Hadley Bros. .. . . Carterton-Wellington . . . . .. 28th January, 1939. J. F. Cleghorn . . . . Wellington-Pahiatua . . .. .. 25th February, 1939. G. P. Hatfield .. .. Wellington-Masterton .. .. .. 4th March, 1939.

I' I Name. | Route. j Date taken over. A. B. Haywood .. .. Geraldine-Timaru .. .. .. 27th November, 1938. Whittaker, Payton, and Co., Christchurch - Ashburton - Methven .. Ltd. Christchurch-Waiau 1 , M , lq „ q Kaikoura-Rangitata (horses only) '' f ' Kaikoura-Dunedin (furniture only) . . J A. J. M. Wheeler (license only) Christchurch - Timaru - Waimate (deviate 4th. December, 1938. Greraldine-F airlie)