D.—2.

On sth and 6th May severe flooding between Tomoana and Whakatu dislocated traffic in this area. On 29th May a large slip blocked the Rewanui line, which was not cleared for normal services until the sth June. Heavy rain caused a subsidence of the track between Tariki and Norfolk Road on 11th June, and four wagons on a goods-train were derailed when passing over the damaged line, resulting in heavy delays to the morning train services in this area. On 21st June a north-bound goods-train ran into a slip between Waimiha and Ongarue and disorganized traffic. The Lyttelton line electric services were disorganized from 22nd to 25th June through the Lake Coleridge power-supply failing. On 4th July train services on the Southbridge Branch were cancelled owing to washouts on this line. On sth and 6th July the train services on the Outram Branch were disorganized through severe flooding. On sth December the flooding of the Taieri River again dislocated traffic on this line. A severe storm in the North Auckland district on 26th July dislocated the normal running of train services at several points, and it was not until the 28th idem that normal services were resumed. On 29th July an early morning goods-train ran into a slip between Owharoa and Karangahake Tunnel, the engine and several wagons being derailed and traffic was dislocated as a result. On 10th August the line between Tangarakau and Heao was completely blocked by a slip. A goods-train ran into this obstruction and became derailed. On 9th September the line between Belmont and Melling was rendered unsafe for traffic owing to erosion by the waters of the Hutt River, causing dislocation of suburban traffic on the Hutt line for several days. From the Ist to sth October slips blocked the Manawatu Gorge, necessitating the cancellation of all services and the conveyance of passengers between Woodville and Palmerston North by bus. Further slips occurred on the 13th October, necessitating the adoption of the same procedure for working traffic until the 19th idem, when the Gorge was finally cleared. On the 2nd and 3rd December flood-waters and debris blocked the Midland line between Inchbonnie and Poerua, causing interruption to traffic. The Fairlie Branch services were cancelled on 3rd December owing to floods, passenger traffic being conveyed by road. On 12th December a heavy subsidence of the track occurred between Waione and Waimiha, involving delays to traffic for two days while repairs to the line were being effected. On 9th January, 1939, exceptionally high tides caused a washout on the Bluff line between Clyde and Kew, the passenger traffic being handled by road services during the day. A series of slips on the Midland line between Moana and Kaimata on 12th January disorganized traffic to and from the West Coast. On 16th and 17th January heavy flooding in the Southland district blocked the line between Waipahi and Pukerau, preventing the passage of trains. The roads between Clinton and Gore were also blocked. Several washouts occurred on the North Auckland line on 6th February, resulting in considerable delays to trains. The following is a resume of the more important alterations to the train services : — A general improvement in the transport facilities provided for both passenger and goods traffic in the North Auckland area was brought about as from 18th May, 1938, as a result of a reorganization of the main line and Kaikohe Branch train schedules, together with the provision of additional services. In June, 1938, the stopping-place at Pitcaithly's on the Upper Hutt line was transferred to a new site at Andrews, this rearrangement being effected in order to provide improved travel facilities for the expanding settlement in the latter area. The multiple-unit electric services on the Wellington-Johnsonville suburban line were inaugurated on Monday, 4th July, 1938, the time-table providing for a twelve-minute service in both directions during the morning and evening peak hours, and a half-hourly service during the slacker periods of the day. Since their inception the electric services have functioned satisfactorily, while the speed and comfort of the new units, together with the general excellence of their appointments, have been the subject of very favourable comment by suburban residents and others. On account of the small number of first-class passengers travelling on the Wellington suburban services the continuance of the running of first-class cars in this area was not considered warranted, and accordingly their use was discontinued as from February, 1939. The provision of second-class accommodation only on suburban trains in the Wellington suburban area has afforded a greater measure of flexibility in the handling of the various services. In order to provide for a greater measure of safety in working trains between Whangarei and Opua, also to facilitate the handling of train services generally in this area, the tablet system between Whangarei and Whakapara was extended from the latter station to Opua, a distance of thirty-five miles. General. The goods and live-stock traffic for the year was 7,539,012 tons, as compared with 7,516,049 tons for the previous year, an increase of 22,963 tons. The difficulties experienced in the matter of wagon-supply during the peak season of the year were considerably less pronounced this season, due, in a measure, to the autumn distribution of artificial manures and agricultural lime being spread over a more lengthy period, also to the fact that 980 new general-utility goods-wagons were placed in service during the year.

XXXIV