D.—2.

In those instances during the year where wagon requirements were not adequately met the cause may be attributed to the abnormal movement of traffic taking place over relatively short periods, also to the detention of wagons at country stations through the inability of consignees to take prompt delivery of consigments, more particularly of inward loads of fertilizer and lime. The position in respect of live-stock traffic has been considerably easier this year, due, in part, to the conditions obtaining within the industry itself, while the provision of 345 additional new stock-wagons has facilitated the movement of this traffic. The rapid development of the chilled-beef industry over the last few years has necessitated the construction of additional wagons for handling this traffic, and during the year nineteen special-type chilled-beef wagons were provided for this purpose. In pursuance of the policy of improving the standard of passenger accommodation, thirty-nine new carriages of the most modern type were placed in service during the year. These are being utilized on the Auckland-Wellington, Auckland New Plymouth, and Christchurch- fnvercargill express services. As additional new carriages are made available these will be allocated to other important express train services in both Islands. A new type of combined day and sleeping car has been provided, and these are being run on the Auckland - New Plymouth express services and the Sunday express trains between Invercargill and Christchurch. The use of shunting tractors at stations has effected considerable savings in the shunting-work of goods and mixed trains at some of the principal stations, and it is therefore proposed to utilize these units more extensively. Seven additional shunting tractors of a more powerful type will shortly be distributed to stations in both Islands. On 4th December, 1938, a further section of the Papakura-Horotiu duplication scheme was brought into operation, the line between Ngaruawahia and Huntly (9 miles 12 chains) being opened for double-line working on that date. The opening of this additional section of double track has greatly facilitated the movement of traffic in the Frankton Junction - Huntly area. The work of reorganizing the Huntly yards and the duplication of a further section of line between Huntly and Ohinewai is approaching completion, and when this section is opened approximately half the distance between Auckland and Frankton Junction will be operated on the double-track system. A trial was made of running the Christchurch-Greymouth express services daily between the Christmas and Easter holiday periods instead of four days per week, but the support afforded the innovation was insufficient to justify the continuance of the daily service. The rail-car services operated over the Wairarapa route between Wellington and Palmerston North, also the smaller units running between Christchurch and the West Coast, have been continued in service with satisfactory results. Owing to the increasing traffic it has been necessary to provide an extra rail car between Wellington and Masterton on Friday nights, this car leaving Wellington at 6.13 p.m. and returning from Masterton at 9.25 p.m. Standard rail-car services between Wellington and New Plymouth were inaugurated on 16th April, 1939, the time-table providing for a service leaving Wellington at 5.13 p.m. on Mondays, Wednesdays, and Fridays, and from New Plymouth at 3.40 p.m. on Sundays, Tuesdays, and Thursdays. During the initial stage, these rail cars have functioned satisfactorily and have been well supported by the travelling public. During the year the Railways Department, in conjunction with the Public Works Department, has continued to operate goods services over the East Coast line between Napier, Wairoa, and Waikokopu. The traffic handled over this line has shown every indication of development, the movement of live-stock traffic being particularly pronounced . The unopened portion of the line between Putorino and Waikokopu was handed over to this Department for general traffic working on Ist July, 1939. The time-table, which provides for standard rail-car services for passenger traffic, is framed to provide for connection at Napier with the Wellington-Napier express trains in both directions, while, in addition, local rail-car services will operate between Napier and Wairoa. A time-table suitable for both through and local requirements will be provided for goods traffic. The acquisition of the road motor services operating between Christchurch, Hawarden, Culverden, and Hanmer permitted of a co-ordination of the rail and road services in the North Canterbury area, and from 30th January, 1939, the running of passenger and mixed trains on the north line beyond Waipara was discontinued, the passenger traffic to and from the northern district being dealt with by the road services in conjunction with the passenger train from Christchurch to Parnassus, and vice versa. This co-ordination scheme increased the road mileage by approximately 20,000 miles annually, but effected a reduction of approximately 47,000 train miles per annum. During the year considerable attention has been given to the matter of improving the seating, lighting, and heating of the carriage stock. With the heavier type of engines now in use and the more lengthy trains being hatiled, the existing facilities at a large number of stations are inadequate for train crossing purposes, resulting in difficulties being experienced in handling trains, thereby occasioning delays which have a reflection upon the time-keeping of services generally over a wide area. In order to obviate inconvenience arising from this source an extensive programme aimed at increasing the yard accommodation at a large number of stations is in hand, and already improvements have been carried out at several stations with beneficial results.

vi—D. 2.

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