D.—2.

New Works.- -The work of duplicating the main line between Papakura and Horotiu has made steady progress during the year, a further portion of double track between Ngaruawahia and Huntly, a distance of 9 miles 12 chains, being opened for traffic on 4th December, 1938. Good progress continues to be made with the Scroggy Hill grade easement and duplication works, and it is anticipated that the earthwork will be completed during the coming year in readiness for a start to be made with platelaying. Satisfactory progress is also being made with the Henderson-Swanson-Waitakere grade easement. Developmental work on the St. Leonards - Sawyers Bay Deviation is being carried out. At the north end the tunnel portal has been opened out for 40 ft., and this will, shortly be concreted. The south portal has also been opened out, and most of the driving of the tunnel will be done from this end. The work is proceeding satisfactorily. Sleepers and Ballast. —During the year 285,459 new sleepers were laid (including 10,934 used on the Palmerston North Deviation and 4,416 on the Plimmerton-Pukerua Deviation). A total of 234,482 cubic yards of ballast was placed on the track during the year. Bridges.—The strengthening and renewal of bridges has proceeded according to programme during the year, a number of bridges having been close-sleepered, while several small bridges have been replaced with concrete culverts. The principal bridge works in hand are the renewal of the Rangitikei, Waipawa, South Rangitata, Rakaia, and Wairau Bridges. The foundations of the first four bridges have been completed by the contractors while the foundation of the Wairau Bridge is under construction. Level Crossings.—The provision of subways and overbridges to eliminate level crossings is proceeding according to plan, this work being carried out in collaboration with the Main Highways Board. Thirty-six main-highway level crossings were eliminated during the year. A number of level crossings were tar-sealed during the year. Fences and Cattle-stops.—A large number of gangs of workmen have been employed throughout the year in erecting and repairing boundary fences. This work was subsidized by the Labour Department. Protective Works. —The driving of piles and placing of stone in connection with the foreshore protection works at Oamaru has been proceeded with during the year. Five hundred and sixty concrete blocks were placed in position on the foreshore, while some 23,895 cubic yards of stone from Sawyers Bay and Enfield quarries have also been deposited. At New Plymouth the seawall was strengthened by the deposit of 2,560 cubic yards of rock. Buildings and Wharves. —All buildings and wharves have been maintained in a satisfactory condition. Additional office accommodation has been provided at several stations, while alterations and extensions to numerous other buildings have been effected during the year. The programme of painting of buildings has been proceeded with during the year. Dwellings. —All dwellings have been maintained in good order. Platforms and Cattleyards. —During the year new loading facilities were provided at several stations, while the work of enlarging and improving the existing cattle-yards at certain stations was also carried out. Unemployed Relief.--During the year an average of 1,508 casual workers have been employed on earthworks for grade easements, deviations, improvements to track, cutting noxious weeds, repairing fences, &c. SIGNAL AND ELECTRICAL BRANCH. Papakura-Horotiu Duplication. —During the year a further section of double-line automatic signalling between Ngaruawahia and Huntly (9 miles 12 chains) was brought into use, superseding the existing single line automatic signalling. Co-incident with the above, power-interlocking apparatus was brought into use at Taupiri. Stratford-Okabt'ukura-Taumarunui. —The section of automatic signalling installed between Stratford and Whangamomona was brought into use during the year, and it is anticipated that work on the remaining section between Whangamomona and Okahukura will be completed and brought into operation at an early date. The installation of centralized traffic-control equipment for the Taumarunui-Okaliukura Section has been completed and brought into use. This apparatus, which is the first installation of its kind in New Zealand and represents the latest development in signalling, enables the signals and points at Taringamotu (2 miles 65 chains north of Taumarunui) to be operated and controlled from Taumarunui. Napier-Oisborne. —Overseas material to be used in connection with the installation of automatic signalling on this section has now arrived. A commencement has been made with the necessary line work. Wellington New Station and Yard. —The signalling and interlocking work at Wellington new station and yard is complete. Arrangements for the installation of centralized traffic-control apparatus on the Wellington-Paekakariki section are in hand. Whakapara-Opua. —Tablet-working has been brought into use on this section. Fixed signals have been provided at Hukerenui, Maromaku, Motatau, and Kawakawa. Christchurch Station.—Schedules have been prepared for material required, and design work is in progress. The transfer of the Signal and Electric lanes Inspector's depot from Christchurch to Addington is almost completed. Te Kuiti- Puketutu. — A commencement has been made with the installation of automatic signalling betwfeen Puketutu and Te Kuiti., This work will include the remote operation of the new crossing-loop at Waitete by means of centralized traffic-control equipment. Frame-levers.— Frame-levers and points have been installed at forty stations.

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