N.Z. RAILWAYS.

Hokitika Guardian, 29 December 1924, Page 4

N.Z. RAILWAYS.

(Per Favour of tho Government.) STATEMENT JtV MINISTER. The Minister has issued the following statement covering the report of the Commission: — Dealing with the summarised recommendations of tho Commission, it will ho immediately seen that those coming under the betiding of finance aro practically identical with the policy outlined in tho last annual Railway Statement. A staff of qualified railway accountants has been engaged for some weeks in formulating full reports, so that the change over to the new system of finance and accounting may l>c brought into operation at the commencement of tho next financial year. ORGANISATION. With regard to the filling of tho position of Chief Mechanical Engineer, steps have already been taken in the manner suggested by tho Commission, and applications are at present being invited in New Zealand anil abroad from men with the necessary qualifications. Tho recommendations numbered (0) and (11) dealing with the appointment of a secretary-cashier and an operating and equipment assistant and tho appointment of general superintendents in caeli island, tire in entire nccordwitli my aims at decentralisation, and havo been agreed to, hut some adjustment in the organisation chart, included in the Commission’s report will he necessary. The reduction in the number of traffic and civil engineering districts and tho suggested department are at present being considered hv the Hoard, and proposals will he placed before me in tho near future. OPERATION.

Tho question of reducing “mixed” trains to a minimum is one that has received a considerable amount of attention for some time, and it lias been recognised that tlio separation of goods and passenger services should go a Jong way in popularising our railways. A scheme for the collection and delivery of goods has lieen formulated by tho Departmental officers, and will he considered by tin* Board and myself as early as possible. A careful survey of the Christinas and Easter holiday traffic over a period of year from 1913 made it clear that as excursion fares have been increased passenger traffic has fallen, until in 1924 the railways were carrying barely half the number of passengers they did immediately prior to the war. No action was taken, however, pending the Commission's report, which, of course, was not received in time to make any radical changes so far as the present holiday season is concerned, but a small reduction was given effect to. It is intended to review the matter early in the New Year, and decide ns to what further reductions can he made for the Enstor holidays. Tlio recommendation of tlio Commission that a complete revision of time-tables is essential is fully eon-

turret! in, and will have immediate attention, together with the centralised control of train movement and distribution of waggon stock in each island. To give immediate clfcet to these proposals, however, it is very desirable to secure the services of a man conversant with the most modern methods of train control and rolling stock distribution. The matter was very fully considered, and Cabinet approved my recommendation to endeavour to secure the services of Mr S. K. Fay, who was attached to tlio Commission as a secretary, and who lias very wide experience in the operation side of railway work in other parts of the world. Mr Fay has accepted the position, and commences his duties early in April next. HATES AND FARES. The Commission’s recommendations in this direction are concurred in. and arc at percent having close attention h.v the Board. The necessary information will shortly he available, and the public will have an opportunity of con- ■ sidering the proposals before they are finally gazetted. STORES. The recommendations under this heading are concurred, and steps have been taken to give effect thereto. MECHANICAL. The recommendations in ionne''li<m with the 'Mechanical Department, are concurred in, and will he considered in conjunction with the report of an export who was engaged by the Department independently of the Commission some two months ago. This ollioor is at present engaged in exhaustively surveying the Depnrtcnt shops, etc., and it is proposed to deal oemprehensivoly with both reports when available. STAFF TRAINING. The necessity of an efficient stall' training scheme is recognised as being of prime importance, and the development of such a scheme, affording the , fullest measure of opportunity to every employee of the Department to extend his knowledge, increase his usefulness) and improve his status as a railway mail, will he placed in the forefront, among the many proposals that are being brought forward for-consideration. OFFICERS TO GO ARROAD. This was one of the first recommendations made by me to Cabinet when taking over the administration of the ; Railway Department, and authority j was given for oflicers to be sent abroad for training as opportunity offered, j ■Officers from various branches will he se- : looted at an earlv dale, and arrange- ! incuts made for them In leave the Dominion as sor/t as possible. IMPROVEMENTS AND NEW WORKS.

The recommendations of t!io Commission in connexion with Hip engineering side of the Department’s operation sure of minor importance except with regard to improvements and new works. The Commission’s concurrence in the programme submitted ly me to Parliament during the recent session is a good indication of the soundness of the conclusions arrived at by the T)epndtmcnt’s engineering and other officers. While the Commission has emphasised the necessity of the main works, it also points out that with changed operation conditions, modifications in many of the proposals may he necessary, and this aspect will be given full consideration. PR I VATU SIDINGS. The recommendation that no lenlal in addition to cost of construction and renewal he charged on privates sidings would ,if given effect to, he a distinct departure from the present <pol:»?y. Particulars are being ascertained ns to tho amount involved and the matter will the nbo considered and a decision arrived at. PARTICULARS OF RECOMMENDATIONS.

Tlie report of Sir Sam Fay and Sir 'Vincent Raven on tho New Zealand Railways has been released for publication. The Commission sat under the direction of the Governor-General, and the report is dated 11th December. It is a lengthy document from which the following extracts are published for general information:— INTRODUCTORY. AVo arrived in Wellington on the lfftli October, and, having had tho ad-

vantage of previously perusing detailed information relative to railway praeUe.* in the Dominion, this being supplied in reply to a questionnaire of iiine'vfour items submitted hv us from. Sydney, through tho Minister of Railways, ive wero generally familiar with the nature of the problem to bo faced. It was, therefore, decided to comm Mice inspection tours over the whole of the main lines, of the New Zealand f! ivernment railways. We left Welling-

ton on the loth October to traverse the North Island system, and retn;iridj on the 24th October, after covering, some 2,500 miles. We left Wellington, again on tho 27th October for the South Island, and between that date and 15th November, covered some ff,200 miles. During the two tours we traversed 4,850 miles by rnilwiy aid 750 miles by motor, tlie latter oeing in part to. inspect projected connect-ing-links, and for the rest, to reach isolated sections of the railway. SEPARATION OF RAILWAY FIN•ANCE FROM TREASURY ACCOUNTS. I New Zealand would appear to have escaped some of tho more flagrant diS'|

advantages duo to tho inclusion of levonue and capital receipts and expenditure in a consolidated State fund, but there is ample justification lor the opinion expressed by the Minister of Railways as to the desirability of separating railway finance from treasury accounts.

British budgeting methods, which arc followed in New Zealand, were not at their inception formed for the purpose of administering a large icons trial undertaking such as a system of railways, and they do not, and car not, conform to the requirements of a lev-enue-prnducing establishment v Inch needs not a yearly vote, but linai'crtl provision arranged from time to time as necessity arises, capable of dealing with a policy and programme ever a period of years and at the same time sufficiently flexible to meet any emergency that may arise. We recommend that loans and obligations which can he earmarked as attributable to railways he transferred to a separate railway account, uuif railway revenue and expenses, including purchase of stores, he included in this account, the whole being dealt with by the Railway Department. Provided there is a statutory obligation to keep railway funds liquid and available on demand, the Treasury might continue to be the hanker to the Railway Department, although experience in other countries lias shown that in times of financial stress moneys representing reserves or current remittances have proved too alluring to escape seizure in aid of other State obligations. LOSSES 'UPON REAM II LINKS. The loss upon the working of certain sections of railway is published in the accounts, and there is also special icference to the loss upon the Otira 'lininel Section. In the case of the latter we do not regard these figures as indicating fairly the result ot const ruction of this very expensive tunnel, o', miles in length, with iLs machinery and equipment for electrical working. To pick out 9 miles nl. line, including the tunnel, and show the loss upon that small section of a throughout run between Christchurch and Groymouth, a distance of 1 15 miles, does not exhibit a true picture, inasmuch as traffic could not lie* conveyed from one side of the South Island to the other but for tunnel-construction. A real figure of value call only be obtained by taking the earnings and expenses between Christchurch and Groymouth districts and applying them to the cost of construction of the throughout route.

In calculating losses upon brunch lines no credit is given for earnings upon trur.k lines from traffic passing to and from the branches. A branch line may. taken l,v itself, show a loss, whereas the earnings upon the main fine cljcio to branch-line construction mav be sufficient to turn tho loss into a profit. A case in point is the Fairlie line, which in 1923-21 shews a deficit (including interest) of C3SI, but tlio mileage earnings from the traffic on the main line were €15,907. In all countries there are sections of railway which do not pay their way, and New Zealand is no exception. Any country with its transport system not fully developed may be expected Ui have for many years portions of line regarded by the Railway Department as nonpaying, especially*if they are not connected up with tho .Main Trunk system, although from a State point of view the developmental value of such lines, apart from Crown land and forest improvement, amply justifies their construction.

FINANCIAL SIT IT AT lON OF THE FUTURE. The prospective financial situation in so far as capital is concerned, taking past expenditure on existing lines and adding thereto obligations to which the Government is committed, together with proposals involving further expenditure during the next eight or ten years, is as follows: £ 1 1). Expended on existing lines and works to 31st March, 1924 11,309 427 (2) Expended on lines not yet open for tratlie ... 7.025.¥09 (3) Estimated expenditure necessary to complete ; 1.2,91 I ,o‘>S i (\) Kxnciuiitiire proposed on existing lines in respect of deviations etc. S.(i< | ,SiJO €(19.4 17,791 Tt will be seen that new capital ( t’2l .iiMii.limi) „ ill |,. | the const met ion-cost nl m*u lines and improvmcnts to existing lines, hringing up the total cost per mile to €lß.39o—that is. assuming 000 additional miles as shown in the Public )\ urks report are completed. Spread over ten years this will moan raising €2,100,000 per annum cn the average. At the end of ten years inters! char* ges iiiion the total capital figure of. say. 1T0,000,900 would, at It per cent* amount to €3.150,01111. The present interest payable on loans (€11.399,-127) is at the rate of €1 7s Oil per cent. €1,811,525. 'I he problem is to see : how and whether additional net revenue to the extent of €1,338,775 can be obtained during the next ten years to meet these interest charges. The position in 1921-35 may be expected to be,— € Gross revenue 11,873,159 Working expenses at <0 per cent ... €8,311,211 Reserves ... 350,000 i —— 8,001,211 leaving a net revenue of €3,211,018, and yielding 4.59 per cent. interest upon a capital of €70.000,000. In making our reconMiiendatioiis wo couple therewith a eonlinuanee of tho present liability of consolidated revenue to meet interest during construction of new lines by the I’uhlic Works Department.

Wo recommend that stores ho paid for out of railway funds, and that as si ion as possible, b.v appropriation from net receipts, together with a yearly balance-sheet showing capital, revenue and net revenue, followed by departmental accounts in the usual company form, and a forecast of the capital commitments for the following year. This should hear the signature of the Chairman of the Hoard and the Accountant, and be certified by the Audi-tor-General. We recommend that the railways be so worked and managed that gross receipts shall not be more than sullicient to cover working-expenses, reserves, and the interest on capital, including sinking funds—that in the event of a surplus it be devoted to reduction of rates and fares. If, on tlie other hand, a loss appears, that rates and fares be increased to cover the deficit. *

ORGANIZATION. We have given careful consideration to the question of organization. Our observations have shown that there is need for a general tightening-up, both in the direction of more clearly defining the actual responsibilities of the chief officers and of reorganizing the overhead administration so that it mav

better meet the peculiar needs of New Zealand. Centralization was perhaps -desirable in the earlier days of the railways, hut the time has come when decentralization to a certain extent is necessary. District officers lean 100 much upon the central authority in matters of detail, with the result that delay and consequent irritation to the public, as well as loss of traffic, follows. On the operating and commer-

cial side this is especially noticeable, the Head Office being overburdened by correspondence on detail matters which should ho capable of settlement through district authority. No regular conferences excepting an annual one (mainly upon staff questions) are held. Many of the lines, in addition to being isolated sections, are at considerable distances from Wellington.

and frequent inspection by chief ofli-j cers is not possible: thus many defects, which the eye of an experienced railway man would defect and remedy, continue in existence. A commercial organisation until quite recently was non-existent, with the result that motor-car enterprise lias

made serious inroads on both, passenger and goods traffic. From evidence given in the course of our investigations it is clear that the public expect something more in the shape of personal contact with responsible officers than has obtained hitherto. This has- reference not only to charges, time-tables, and 'facililtios, but also to small matters of equipment and regulations. A far bettor appreciation of

the services rendered by the railways would, we feel sure, be the outcomo of discussion on the snot between representatives of the public, who own the railways, and a responsible officer with authority to settle minor questions so frequently arising. Relief from these would enahle headquarters’ officers to devote prompt attention to major questions which they alone should determine.

In connection with State railways there are invariably difficulties great and small, brought about by political pressure upon .Ministers to give something which, whilst of local value, is not to the general advantage of the railways, or create an undue preference to one section of the community as compared with another. In the general interests of the country the farther away a railway administration can be removed from, political control (lie better, in order that an impartial decision may be given upon all questions alfoeting transportation facilities. In stating this we recognize that where the people own the railways the Government must decide wlii‘ll and where railways are to be built, and what are to be the maximum (barges levied upon passengers and merchandize. Having decided these tilings, however, and appointed competent men to manage the large itilistri<il enterprise of which a railway svsteiii is comprised, it is wiser to leave it in expert hands rather than to have political pressure brought to bear iip-io .Ministers, ill season and out of season, to do things that ought not to In- done and to leave undone things that, in the general interest, ought to be done.

lln vine regard to the geographical and other aspects of the New Zealand railways, wo consider that a Railway Hoard consisting of a Chairman and two other members. one to control mainly commercial affairs and the other competent to direct the operation would prove the best tvpe ol management. We suggest the appointment. of an Operating and Equipment Assistant, and in addition to the chief leeliinetil ndieers at headquarters we recommend tin* appointment of two General Superintendents, one for tin* North Island, with Headquarters at Auckland, the other at Christchurch for tho South Island, responsible directly to the Hoard, and acting under regulations and instructions applicable to tin* system as a whole, for operation, commercial matters, and maintenance within their respective areas, the kevnote being centralization of principles with decentralization of details, thus making for greater economy more efficient working, and improved relations with freighters and the public.

In each Island llie District Engineers and Mechanical Assistants to report monthly through their General Superintendent to the Chiel Engineer and .Mechanical Engineer respective!v tipou work performed, stale of work and machinerv under their charge, and take instructions thereon. In addition to Ibis the responsibility of the Chief Engineers, civil and mechanical, to be exercised by frequent inspection by themselves or their principal assistants. It is, of course, understood that workshops are under the complete control of the Chief .Mechanical Engineer and Chief Engineer respectively.

The Divisional Suporinlemloiils, given a wide discretion with eneouragenient to develop areas under their charge, and being clothed with the necessary authority to deal with problems as they arise or seek advice when in doubt, would relieve beadquarters from a mass of detail and correspondence. Eeiug in direct contact with freighters and the people in general, they would be enabled to lamiliarze themselves with the ci tidit ions ideas, and needs of each town and district, and obviate formal c onitnuiiiontions and orders from the Hoard. They should make management personal, as distinguished from distant management. which tends to appear impersonal. Many of I lie local grievances to which our attention lias been directed could promptly be dealt with, or vould nrobablv never arise, under tic* more direct and aiitboralivc supervision of tin* General Superintendent. We suggest that formal conferences at headquarters should la* la-ld once in three* months. The districts at present under the control of Traffic Managers .should be rearranged, and placed in control of District Superintendents under the • ••nl |.4 r| i!i*; iT ini.ii upci nil. g.1.0i1. Whilst Hie latter unuld re<iuire a competent office stall', it is considered that there need be little, if nnv. increase in the total personnel, having regard to the reduction in I In* number of districts would have tin* approximate mileages indicated below :

NORTH ISLAND. Miles. No. 1, Auckl I 719', No. 2. Western 485'. No. 3. Wellington 001.', 1.800 SOl'TIl ISLAND. Miles. No. I. Christchurch 878 No. 2. Dunedin 480 No. 3. Southern 557', 1.921 \ GENERAL REMARKS. In our opinion the New Zealand rail-M'ny-traek has been exceedingly well laid, and the standard of maintenance is a high oiio. Such a high standard naturally reflects itself in the cost, and we think that in the case of branch lines, where the tratlie is light, living gangs might he usefully cmIdo veil instead of having men permanent Iv stationed there. Yi’e think consideration should be given to the question of reducing (lie number of District Enginers, of which there arc nine. Three in each island should adequately meet the case, thus enabling higher salaries to be given without increased cost.

CHRISTCHURCH AND LYTTELTON TUNNEL WORKS. The Government, having committed itself to the doubling of Ibe Lyttelton Tunnel, no remark is called for from us, but Ibe proposed site of a new shunting-yard at Woolstuit appears to us to need further consideration. Such a yard would without doubt deal effectively with traffic to and from Lyttelton ; it would not however, serve traffic from north of C'hrisehureli Southward, and vice versa. When the complete railway system of the South Island becomes an accomplished fact a yard at Woolston would he available for a portion only of the traffic passing through Christelmreli. and in our opbiion it would lie wiser to anticipaie future requirements by selecting a site suitable for traffic north and south ns well as to and from Lyttelton. NEW LINES. The location and order of eonstruetiiu of new lines for developmental purposes are questions upon which wo do not feel competent to express a decided opinion : only those who know the country and its possibilities are competent to offer suggestions of value upon these subjects ; there is. however) one important link in the chain of railway communication upon which we think it desirable to express an opinion—viz.. that of the gap between Ward and Parnassus. It is not so

much in the local advantage ol such a line that we view its completion as of greater importance that some other railways upon which considerable sums have been spent : it is because of the possibilities offered by its construction of making a complete railway transport system between all parts of the North and South Islands without change of carriage in the ease of passengers or break oC hulk or delay in the incidence of goods traffic that we advocate its construction.

TRAIN FERRY BETWEEN PICTON AND WELLINGTON. With this line in being a train ferry between Pieton and Wellington (or, if i possible, a bay with sheltered water and easily available by a short railway nearer the South Island) would give all the advantages of throughout rail transit between the t wo Islands. Some day, no doubt, this form of communication will hq established. The sooner it is done, looked at from a railway administration point of view only, the earlier will he the time when it will he possible to operate the system as a whole as economically and efficiently as in countries where lines are not disjointed. * The public aspect needs but little demonstration. Throughout communication would make the two Islands one In so far as

transport is concerned. Internal trade would benefit by through rates and fares and avoidance of break of bulk. The cost of landing stations and ferryboats capable of conveying upwards of fifty ordinary goods vehicles need not entail very great expenditure in proportion to the advantages foreshadowed <nd the prospects of revenue to be (ijitained. Probably €500,000 would lie found sufficient. Wherever train ferries have been provided they have developed travel and traffic to a very much greater extent than obtained under former shipping conditions. Between Denmark and Sweden, Germany and Sweden, in North and South Ainorica, this form of bridging tlio seas has been adopted with success. Recently a train-ferry service has commenced to run across the North Sea between Harwich and Zcehruggo. LOCOMOTIVE. CARRIAGE AND WAGON WORKS.

There arc four locomotive* works situated in the North Island and five in the South Island, as follows: North Island.—Vetone (Wellington), Napier, East Town (Wanganui), Newmarket (Auckland). South Island.—Addington (Christ(liurchi. Hillside (Dunedin), Invercargill, Groymouth, Westport. In addition there* are many small repair shops at Whangarei and Gisborne in tlio North Island, and at L’icIt.Mi and Nelson in the* South Island. The works at [’(‘tone, East Town. Newmarket. Addington, and Hillside arc i imtrollcd by Workshop managers, while at Napier, Invercargill. Creyiiiiinlh, and Westport a Workshop Foreman is in charge. These officers are supervisied by the* Divisional Locomotive Engineer in whoso division the shops are situated. GI!EY.MOI'TH WORKS.—The shops and the running depot are under one roof. The repair shop is very small and inadequate, and is not fitted with any modern lifting appliances, all engines having to he hoisted by means of jacks.

Most of the machinery in the mach-ine-shop is out-of-date, and everything is in a very untidy and dirty condition. On the occasion of our visit two engines were in process of being stripped, and there was one stripped in the yard upon which no work was being performed. On inquiry it was found that the men bail been taken from the engine in the yard and put to work on the two ill the shed, which were more urgently required. The carriage and wagon shop is too small to meet requirements. The appearance of the erecting and machine shop is not satisfactory, although the engines turned out there appear to be in a clean condition.

It is, however, understood that within two years the whole ol the workshops at Greynionth, and also the running-shed, will be pulled down and new shops erected at Elmer Lane, some three-quarters of a mile o:< the south side of Grovinouth. WESTPORT WORKS.—The shops at Westport repair the rolling-stock working on the isolated line between Westnort and Seddonville, 32 miles in length. There are fourteen engines on the section, ten carriages, and mine 700 wagons, including 073 of the hopper type, the traffic on the line b ing practically all coal. The works consist of blacksmiths’ shop, machine-shop, and a combined erecting and carriage ami wagon repairing shop. f i here is a separate shop for the repair alul lairing of coal-hoppers. The shops are sufficiently large to meet present requirements, but the machinery is old-lasliioiied. LOCOMOTIVE COAL.

In the Chief Mechanical Engineer’s evidence ho stated that Welsh coal was far better than any he could get either in Australia or in New Zealand, and that his experience showed that there Would In* a saving of 30 per cent, in coal-consumption. As it would appear that Welsh coal could la* procured at practically the same price as Newcastle coal, and if the reduction anlieipated by the ( liief .Mechanical Engineer is realized, there would hi* a saving of some €'200,01)11 per annum ill the pnr< base of Welsh coal. . As shown by (lie Chief Mechanical Engineer in bis evidence lie is respon sihlc for selecting and reioii’.iuending the coal that should be used. No doubt lie will give due consideration after trials to what extent it is possible e( onomically to use the New Zealand coal. EFNNI.VC DEI’ARTMENT.

The riuii'iu e| both pa.--eager and good:- engine, i. under tin* ronlrul ol t lie Locum l i vi* Department. At the larger engine-shells il is the practice lo post a daily duty-sheet providing for the running of time-table and special trains, and showing the booking-on time of each of the men. the engine alloeated, ami I lie train to be Worked. At the smaller stations a weekly list is in operation. In our opinion a Meekly list could be advantageously adopted at all running-sheds. The existing arrangement of laborioiisl.v copying out caeli day the names of all the men and the trains they are to work occupies a great deal of valuable time, am], in addition, there are numerous telephone calls from the men as to what tlmir duties an* to be the I'ollowing dav. From eases brought to our notice the special trains—eliminating i onditional trains—formed a small proportion of the train service, and arrangements could easily be made to adopt a weekly roster, probably resulting in a certain saving in staff. REPAIRS AND RENEWALS. The most suitable and economical method of dealing with repairs and renewals of rolling-stock would he In have two works built—mm for tho North and one for the South Island—in a convenient position, Mith ample yard accommodation, and laid out so as to |lass the stock through when being repaired or built without, twice handling it. These shops should also he arranged on a site and in such a wav as to he able to he enlarged without undue expense when necessity arises. As this, however. Mould mean a large expenditure of money and take a considerable time in selecting suit-

able nosilions and designing the layout, it does not appear a reasonable proposal without a recommendation as to how the repairs and renewals should he at once dealt with so as to bring the costs down to a more reasonable basis. In the North Island • the shops at Napier. Whangarci. and East I own, so far as locomotive work is concerned. might be closed down, the necessary repairs being carried nut at Petojio and Newmarket. In the South Island, Grovnioulit and Invercargill should be closed for locomotive work, repairs being undertaken at Addinglon and Hillside.

While the present methods of carrying out repair work in the shops are very antiquated. they could not he dealt with here in any detail. As regards tlie four shops which it is rocummoiied should lie retained for dealing with' such work, the only course

to"take would he to get some one thoroughly conversant with up-to-date practice to advise generally. aftoi having carefully considered the present lav-out and methods adopted in the shoos. Unless this is done, there is little hope of being able to deal with the work as suggested. At present it would he well to concentrate on repairs and to purchase locomotives rather than luiijd in existing shops, which are not laid out tor doing this economically : and we should

judge there is no saving or advantage in building if these can be bought outside at an equal or lower cost. Tho methods of bringing in the engines for repairs should he rc\isod. and they ought not to he put through a heavy repair or thorough overhaul unless the work they have done warrants this. Hotter methods for getting them through the shops. should he Arranged, as the average time for heavy and thorough overhaul in 1021 was ’about twelve weeks. This, considering the long life of boiler and firebox and the ‘ comparatively short mileage between repair, is far too long.

ORGANIZATION. Tt is essential that there should he a Chief Mechanical Engineer fully qnalilied and thoroughly conversant with up-to-date methods of railway working, who should have one Divi-

sional Engineer in each Island to assist him. It is a question whether the Divisional Engineer in the North Tslaiul could not act as assistant to the Chief Mechanical Engineer, thus saving three officers. This would en-

able better salaries to ho given, with no increased cost, and would also put the Works Managers on a more substantial footing. bail MOTOR-CARS.

There are many difficulties to bo overcome with regard to rail motorcars using internal-combustion engines on railways with heavy gradients, frequent stops, and requiring high acceleration. We arc, therefore) unable to recommend any particular design which might he expected to fulfil the requirements on the Now Zealand railways. It is noted that it has been decided to make trials of certain petrol-driven vehicles. The -information gained by these should he of value.

I'or a light train service a suitable steam-locomotive would seem to be preferable, and as a Sentinel-Cainmetl steam rail coach is on order, and this appears to have worked traffic satisfactorily and economically in Jersey over heavy gradients of I in 40 and round 5- 7- and 9-cliain curves, with frequent stops from C'orhierc to St. 11elici’s, iixoliil information will lie gained, our (knowledge of the work done being second band. The North Eastern Railway of England ran steam-trains with the locomotive in between two coaches and with a driver’s compartment at each end. so designed as to allow of tho driver working the train from each passenger coach, the firemen alone being ell the engine. An old light locomotive was used and worked satisfactorily. It find the advantage that old stock was utilized which had become obsolete for heavier work, but was .i every way suitable for light work of this description. Do tlio Now Zealand raihvnys there would appear to be engines of light design, which it is understood are unable to deal with the work for which they were ’intended—i.o. Classes L and L.v and these might he made use of bv attaching a coach for light train service such as would he expected of a rail motor-vehicle. These could take an extra coach, if necessary. We Mould strongly recommend that these be tried before experimenting nith a light type of steam-engine which, if not successful. Mould he absolutely useless. \Ye also think it unwise and injudicious to work these engines with only one man. On looking into the working on branch lines it slimes that engines taking mixed trains are kept standing for many hours. It Mould la* possible and desirable to rearrange the working so as to allow for the running of a light passenger-train by the same engine and carriages. Tin’s Mould enable more use to be made of the men and also of the rolling stock, instead of using a motor-vehicle. \Ye do not recommend any further money being expended on molor-eoaches at present. PASSENGER TRAFFIC.

The evidence given on behalf of the public, a perusal of tin* time-tables, a record of actual times kept by the trains, and statistics of train-earnings show that, as a result of slon* and infrequent services, general discontent exists, and the people of New Zealand do not make use of the railways for the purpose of travel to the same extent that under ordinary circumstances they might be expected to do. Comparisons are not always reliable as a guide, but the record of the total number of passengers travelling on the Queensland, South Australia, and Western Australian lines, as compared Midi Nhv Zealand, does indicate that there is less railway travel in the latter country in proportion to the population than in the States mentioned. There were in 1923-24 only 28.4(23.4 75 passengers on the New Zealand railways, with a population of 1.317,723, whereas in Queensland. Mith a population of 805,(533, the number of passengers who travelled by railway in 1923 Mas 29.535.981. South AustiVjlin m itt h -515,135 [residents bad 25,107,379 passengers byrail, and Western Australia had 18.1.33,138 passengers, for a population of 313,430. The average number of journeys per head of population in the year m:is .Wm* Zealand 21.08; Queensland, 38.82; South Australia. 17.13; and V .•stern Australia. .51.27. TRAIN .SERVICES.

We cannot but think that tin* reason for this disparity is lo be found in the train service. On some parts of the system trains cannot run at any great speed by ceasen of grades and curves; but alien it is found, as a sample, that on one line the only trains run in a day lake two and a half lioni to iomi tloity nine mdc-. it cannot be considered as a reasonable rate of progression, and it is not to be u'onderod at that tlio motor-ear is used by everybody alio possesses, ir alio can hire, such a vehicle, in rnlupetit ion with the rail. Not only is travelling slow -it is irksome; liecause, with the exieption of main-line mail and some suburban, all trains are mixed. Passengers have to sit as patiently as they can in the trains whilst gnnils-.sh un ting operations are carried out, often at each station at which the train stops. It Mas stated in evidence (Q. 2502) that "ill the case of join Hoys up to about 10 or 50 miles, where road and rail facilities arc about equal, the passenger who is able to choose between rail transit and road transit will usually chouse rail. For such shot t journeys, however, rail facilities are usually both too slow and infrequent, and as a result the passenger chooses road.” The evidence goes on to sav. “Wo are confident that if the rail call economically give equal facilities to the road it' call rapidly recover much of the traffic that it has lost to the road. In the ease of journeys over about 50 miles very few (if indeed any) passengers travelling on business choose the road unless rail facilities are so poor that they do not provide a practicable alternative. in spill* of this undoubted preference for rail transit for journeys over 50 miles the rail is losing a termendous number of passengers to tin* road.” In some cases it is not possible to travel to and from business centres situated 80 or 10(1 miles apart and reliirn tin* same day. In addition to the disadvantages of slow travel. there are in many instances lung waits at junction stations for

oonneoting trains. MOTOR COMPETITION. Many members of the staff', who were questioned as to any remedy tili'ev could suggest for recovering traffic lost In tlie motor-car, were of opinion that nothing could he done without running imremunerative trains They were apparently of tho opinion that a single additional train cost 12s per mile to run. They had evidently taken Hie .non from the yearly Railway Report, as they also took the loss upon certain lines and deprecated the running of better services upon those ines for that, reason. In one instance it was stated, "There is no likelihood of ail increase in passenger traffic if hotter services are provided, as there are too many motor ears in the district.” Other officers were convin-

ced that, as motor competition is becoming more and more acute, a better passenger service should he provided and fares reduced, hut they are disheartened by the absence of any determined attempt to meet the competition. As noted in the “ Mechanical ” section of our report, there is a waste of engine-power by the standing ol engines in steam for many hours when they might lie utilized for the add' tionai trains which reasonable public facilities demand. Evidence was given that on a branch line an engine stands from 11.1!) a.ill. until ff.ffO p.m. and in another case from 8.20 a.m. until (i. 17 p.m. The running of mixed trains is, from one aspect—viz., that- ot avoiding the cost of separate trains for passengers and goods—an economical arrangement, hut. apart from the tedium of travel inflicted upon the pub-

lic, there is without doubt a disadvantage by shunting having to be performed where every train lias goodswagons upon it. The ratio of sluint-ing-mileago to 'total locomotive-mile-age is 22.50 on the New Zealand Railwavs, as against 1.'1.f10 in New South Wales, 12.52 in Victoria,’ 17.71 in Queensland, and 17.!!5 in South Australia. This shunting mileage in New Zealand does not include shunting by train-engines at stations en route. The inclusion of the latter would show total shunting mileage at still greater disadvantage. REORGANIZATION OF TIMETABLES ESSENTIAL. We recommend a complete reorganization of the time-tables with the ob-

ject of meeting publie requirements, mid providing nt suitable times hr many passenger-trains as can conveniently and economically be run, leaving goods traffic to be conveyed by goods service, excepting only in those instances where the running of mixed trains is not calculated to divert traffic. Jn revising time-tables regard should lie had to the profitable employment of engine-power in order to eliminate the waste caused by engines standing in steam and earning nothing for many hours. The closest co-opoifation between the iflioratlng and locomotive branches is necessary to achieve this. At the same time nil trains should be speeded up. They are not at present running to the speeds determined by the Chief Kngiiicer. and many of the maximum speeds could, without danger, be increased especially if stops are eliminated at unimportant stations in the case of business trains between populous centres. It is difficult to particularize the districts demanding prior attention, but we consider the Auel:-land-l I amilton, the Gunedin-I nverenrgill. the Wanganui and Christchurch district services should receive special attention. Limited trains have recently been arranged between Wellington and Auckland. To make these trains popular wo would suggest that carriages oT the modern type, replete with the best form of sleeping and lavatory accommodation, be specially constructed. At the same time the attaching of a breakfast-car to these trains at the last stopping place short of Wellington or Auckland would lie appreciated. Only by making trains comfortable as well as speedy can the motor competition lie countered. The latest type of the South African (3ft. (iiu. gauge) railways express trains is ail example likely to meet with general nnprovol in New Zealand. TOUIt IST AND EXCURSION TRAFFIC.

It should he possible to extend this traffic very considerably by judicious arrangement and advertisement. No yearly or seasonal general programme has hitherto been published. The beauty-spots of New Zealand are known more or less the world over, but facilities for reaching them are by no means as convenient or as well advertised as they might be. The Tourist Bureau and the Railway administration Working in eldse co-op-eration, spending freely in advertisements and more still upon convenient train services, should in the course of two or three years make the tourist and excursion traffic a very valuable addition to Railway revenue. The Xew Zealand climate in summer, in conjunction with convenient transport facilities, might be expected to prove attractive to Australian tourists, but visitors from that direction van only lie secured through attractive advertisement. preferably in conjunction with steamship companies. iVlicn excursions are advertised the records show that the public respond, especially in the .South Island; and we suggest that more frequent opportunities should be given, with faster trains, not only to and from tourist centres, but alsii between one town and another. It has been urged that in the latter ease traffic at ordinary lares is jeopardized, but experience lias proved that on balance there is great gain. A fast train at excursion fares, one ilay in the middle of each week, leaving in the morning and returning at night, from country stations to the nearest town, has been found a profitable arrangement. and we suggest that experiment should be made in this direction. Only bv testing the possibiliics of new traffic can the full value of railway facilities he gauged. In view of road motor activities, every avenue should lie explored. We refer to the effect of cheap fares in another section. ( "OL LECTION OF TICKETS.

All stations being open and tickets collected upon trains means constant examination of tickets upon long journeys, causing irritation to passengers, csnccially at night. We recommend that at the larger stations the plat forms be enclosed and tickets collected ;it Hie doors. This niav mean Rome increase of staff at the stations, hut it should lie more satisfactory I rom a public point, of view as well as lo the Department. A label indicating a sleeping berth passengers’ destination would also be a convenience, and obviate the waking of passengers unnecessarily. The fares should ho printed niton the tickets, as wo limlersland iviii. lorinerlv the practice. I’A lit ELS I I,’AFFIC.

Tin- parcels trallic oil till' New Zealand railways is a < onsidcrable mu?, tor the year IPi’.'l receipts were t.'il) Tile presenl iiiotlmcl of issuing rniisigiimeiit-iioios niiil waybills. as in the case of •roods Irafiic nei-ossilates a gieal deal of clerical labour and delay, hoth at the despatching and receiving stations. We are of opinion that considerable economy would result in the adoption ol the slumps system, as used in Fi •- land and elsewhere. I'lidi-r this system. parcels up In a determined value tire not wuybilled, adhesive stamps to Ihe value ol the freight being affixed to Ihe parcels. Travelling inspecloi s are emnloyed to Keep a check upon the work performed, and in practice it is lound that considerahle advantages accrue hv its use. We recommend that the Railway Rep i.'fne’Ut should take steps to bring tip's sy-t( m into o]ieration. ROODS TRAFFIC AM) TRAIN'S As in the case of passengers, so with fronds trallic the road molo" litis heconie a serious competitor of the railway. No arrangement, exists at present for the collection of coeds from their source or delivery to i\stinatioii. It is in being .aide to haul goods Irom door to door that the strength of this competition lies. Kvideuce Irom till ipuirters shows a penoral desire to consign trallic by railway rather than hy road, if for no other reason that the avoid i.ice of damage to the mads; hut the .rival.tapes olfered in ci/ii .npence, if jot in cost, outweigh the puhlic-ownci M.;p aspect, which is so fully iveogizvl l y traders. Without doiiht the 'Railway Department could, hy establishing a well-organv:ed fleet <ir road motorvehicles secure practically all the tiaflir to the rail, the alternative being a eomhiiiation on mutually advnnlagcous terms between motor-owners and the Railway Department. We are disposed to recommend the latter course, at any rate, as a trial. It within a defined area adjacent to stations, conveniently grouped. a motor service for collection and delivery could he arranged hy agiocoment with motorowners for the basis of payment by the Department of so-ntueh _ '?r ton on goods hauled to the stations, and provided also that the charges levied upon traders hy the motor-owners were subject to departmental approval, we think a service satisfactory to the public and the Railway would result. This would moot the evidence given at Alureliison upon the subject of collection and delivery to and from the railhead of the Nelson section. At the same time we recommend that in |

nno. or possibly two, localities the Department should sot, up its own service as a guide to the value of the arrangement made with motor-owners, and as forming a nucleus for extension if I lie joint transport agreement fails. It

would he desirable to detail a suitable oflieer attached to each Gencnil .Superintendent’s Office to organize and supervise any such scheme as we suggest. In some instances it might he advantageous to reduce rates, hut it is clear that in the majority of cases it is not rate hut facility that is the governing factor. As noted previously, nearly all the trains are mixed; these give a fair goods service, and there are hut few complaints of the time title in transit. The practice of staging front one suhterminal to another is not conductive to economy. There should he more through goods trains, to the relief of suhterminals. It may he convenient to keep engines within a certain district, hut when goods traffic is held iti) and costs get increased by regard solely to engine-working an attempt should be made to get more re-

munerative mileage out of the engines by longer runs, irrespective of locomotive districts. This should not he difficult, given co-operation between the Traffic and Locomotive Branches. TRAIN-LOADS. The train-loads are liglM by reason of mixed trains and the limitation ol tonnage per train. There is no reason] why trains of 1,000 tons should not be hauled upon the level or where grades

are easy. At the top of a grade where for many miles beyond it in all downhill, as in the instance <the line from Arthur’s Pass to Christchurch, after reaching Cass, it is a waste to haul to Christchurch only the same | ioad as between the tunnel and three miles east of Cass. The provision of one or two suitable sidings at the top of the grade for accumulation of traffic, ami the blending of two or three trains into one for the down grade, would be cconoii’.v of power. TARPAULINS. Complaint was made of shortage of truck-covers. The stock if fully used and correctly distributed should lie sufficient. The control of these would follow the control of wagons. I,IV K-STOC K CO X V ICY AXC K. Live-stock, representing, as it does, so large a proportion of the wealth of Xew Zealand, demands special consideration. Vehicles in which stock is conveyed should lie better cleaned and disinfected than they are at present. Live-stock trains should be run nt pas-senger-lrain speed, and. where distances are long, detailed arrangements for attention and water should be made. I.RVICL CROSSINGS. The great number of level missings in the Dominion arc a danger—as all level crossings are—as well as hindrance to the movement of traffic. Some £‘2oo.Olid have been included for crossings in the proposed capital expenditure. to be spread over the ensuing eight years; ibis iimoiinr, however .will nut go very far towards meeting the cost of bridges. At main roads in the larger towns.' it is desirable t" obviate crossings by bridges or subways in the interest ol publie safety, but it is not. practicable to ileal with the numerous county roads ill the same way. Where signal-boxes are near crossings the provision of electrically operated gates to be worked bv signalmen would be a safeguard, although it would not get rid ol obstruction. AYe have examined the latest form of automatic swinging-light warning-device which goes as far as passible, short of physical protection, in the direction of preventing the railway being crossed by rom vehicles or pedestrians when trains are approaching. Bells are also provided at some of the crossings. Short, of erecting gates and building gatehouses we do not see that more can lie done to give warning at crossings. \ I’ll I VATIC SIDINGS. Agreements for the construction and maintenance of private sidings provide for the cost and renewal, hut not maintenance, to lie paid for by the grantee. An annual rental levied, it is said, to cover the cost of shunting is all addition to the cost and renewal of the siding. In the event of the siding, being removed from one site tc> another at the instance of the grantee, the cost of such removal is charged to him. lo charge a rental after the whole expenditure uiiou material and labour lias been paid for by the grantee gives rise to resentment and a feeling ol unfair treatment. \\ e do not tbink that a rental, so eailed, in addition to tile rust, of construction and protection by signals, if any, should be levied, if there is anything extra in the shape of shunting services, or otherwise. that would not lie preformed bv the Railway Department for the traffic if put on rail at the nearest station to the private siding, then the rnlis charged should lie so adjusted as lo meet the extra cost. RAT ICS A X l l I'XRICS. In common with the rates and fares of other countries, the war has left traces of disturbance upon railway charges in New Zealand, and some rearrangement both with regard to classifies) ton of morchauidsc and the incidence of rates and fares is desirable. The increase of percentages—23 per cent, in the case of passenger-fares and •!() per cent, upon goods rates—has lint been sufficient, ill the absence of growth of traffic, to cover additions to the wages hill, plus the increase in cost of material since the war PASSENGER FAR ICS. Dealing bust with ordinary passen-ger-fares. which before the war were based on |.l<l lir.-t and Id second class per mile, plus a terminal charge of Id., the increase of 2) per cent, lias probably not affected the revenue to any appreciable extent, except the short distance traffic, bill when we cmne to the period of excursion fares designed to cncoiiiage tourists, which are made up ol* the ordinary single fare plus oO per cent., there is evidence that the volume of traffic lie: declined seriously. \Ye think it would be wise to reduce these fares to the sum of the ordinary single fare plus At) per cent. Wry few day-exctirsiciii facilities have been offered oil any part of the system. These might with advantage lie extended considerably, a round fare being charged for short distances up to miles at about, the ordinary single fare for the return journey, and for longer distances something less than the ordinary single fare, the desideratum being to get down to the level of passengers' pockets and thus induce them to travel. In these cases slow trains fail to produce satisfactory results; there must be fairly rapid transit. Week-end tickets, available from Saturday to Suiidav or .Monday, might again be tried. We understand tile result of previous attempts in this particular direction were not. very successful. Occasional town to town hookings at the day-excursion fares have proved popular in some other countries and might nay well In Xew Zealand. Complete advertisement is necessary in this, as in other attempts io attract

passengers. Suburban fares, having as their objective an encouragement to live outside city limits, consist of ordinary fares at a slightly less price per mile than in Iho country. The fares for short disaiiees of from I to .'I miles are too high (o compete with the road. It would he advisable to charge 3d. second class for distant os up to 3 miles and grade fares beyond that limit up to the standard per mile. Our observations on these short-distance fares apply to the <*t:mlry a.s well as the suburbs. There is no particular reason why ordinary passengers, as: distinguished from weekly or season-1 icket holders, should travel cheaper in the suburbs than in the town. The host incentive to the selection of a suburban residence in preference to the town has been found in the issue of cheap weekly, monthly, or yearly season tickets. In addition, if oil one day of the week excursion tickets are issued by mid-day trains from suburban stations to the town, available for return hv any train, including a late train after theatres close, a still further inducement is provided. GOODS RATES.

We understand that a revised classification of goods trallie is in course of preparation, and will shortly be published. —Experience has proved the impracticability of framing a classification pleasing to all interests ; hut it is

advisable, before bringing a new classification into opcraiio.'i. to publish it and give time for those who may complain to give th.-ir reasons for asking that any particular commodity should he put into a lower scale. The objective of a go a'; classification is to secure a given amount of revenue to cover expenditure, including interest, by an erpiitablc division of conveyance charge a.s between the various classes of trallie, having regard to the character, value, and oilier considerations attaching to each item. The present classification is based mainly upon what the traffic will hear in the shape of a conveyance charge. Other factors, such as encouragement of local industries, and. to

some extent, cost of haulage, were ele meats in the decision to include produce and articles in a certain class. In addition to the general tariff, many special rates, designed to meet competition, or help certain iiidusries. have been given. Some of these are obsolete and should he cancelled, others probably need revision, hut could not he merged in the general svstem of rates without disturbance of trade. There have not been many complaints regarding rates, but there has been undoubtedly loss of traffic by motor

competition. We do not think, however, as stated elsewhere, that rates have had so much effect upon the traffic as die facility of door-to-door conveyance. The experience of the past four '•ears has shown that there is no margin for reduction of rates, unless by so doing more traffic can he secured The reduction, therefore, should be made with great care and caution.

There arc sonic rates, particularly those applicable to caul, which should be increased. For certain distances, when traffic is hauled over steep grades, the freight charges involve a loss which has to be made up by nthor industries.

The conveyance of lime free over certain distances whilst helping agriculture...that is. if the farmer gets the advantage of it—is unfair to the Railway Department. We understand this is being remedied by arrangement with the Agricultural Department. Again, road-stone is charged at rates involving direct loss, which has to ho met by other users of the railway. This material should at least pay a rate equal to that of brown coal. AYe have included this, and the lime charges, in our estimate of future revenue. Minimum Truck-load Rates.—There are to-day reduced rates for minimum truck-loads. These might lie increased to include other articles. DIFFERENTIAL RATES. The practice of charging le-s for imported than for local produce lias been tlie subject of i 'liiinii'iil. This is a question of policy rather than a railway matter, and we must leave it at that. The tapering of rates according to distance needs careful studv before deeisi on. The taner should not be too steep, especially with the linking up of detached'sections of the railway longer tbrnughnut-dislaiioe conveyance will become possible. C'ATTI.K AND MACHINERY FOR SHOWS. In the interest of the Railways as well as of encouragement to agriculture it is desirable that stock and machinery exhibited at shows should lie conveyed free noon the return journey.

TRAINING OF RAILWAY MEN. There is another matter upon which we must make adverse comment, and that is the absence of any facilities for the training of the younger memtiers of the staff in railway work. It is understood that some scheme of training is in operation for the teaching of station work, the foundation of all general railway knowledge, but there is no regular arrangement applicable to the whole of the staff, and . subject to examination at regular in- | tervnls. Nearly all railways have realised the need for the systematic training i f their employees in order to develop a more enlightened personnel, and it is a matter of urgency that a , definite scheme of this character should be introduced in Xew Zealand. , Classes might advantageously be nr- . ranged in conjunction with the educational authorities at the various conI ties—-Wellington, Auckland, Christchurch, Dunedin and Invercargill. !' The Railway Repartition should co-op-erate in smii classes, both by providing | the men qualified to teach railway subjects. by donations towards the cost, ’ and by providing free travelling facil- [ ities for their employees to attend such classes. Advantage would also accrue from the publication by the Railway Department, of an official journal, as is cvstoinary on most railwavs. Theoretical training is. of course, of little avail unless it is allied to practical experience in the various departments, but it affords the ground-work for the building-up of a comprehensive railway education, signs ol which are wauling in Xew Zealand. Closely associated with this question is the need for experience cm other railways. Practical education can only lie fostered by this means, and wo consider that those who indicate the . possession of suitable qualifications should be induced to study the railway problems of Australia, Great Britain, and America, in order to obtain the wider vision necessary in the future officers of the Railway Department: alternatively, tours on the railways of South Africa and the Argentine, which are developing their railways rapidly, would he advantageous. Apparently no recognised syst .-ill has been followed in Hie selection of officers to visit other "iiiMitries. X'ow and again an individual officer lias been to Australia, but visits lo more distant countries have apparently been very infrequent. Yi'e recommend that three or four officers be selected annually to visit the railways of other countries, and upon their return to report upon their experience. In ID2-j tile Railway Ccutenarv celebrations are to be held in England, and delegates from the world’s railways will be nresent. 'lbis would lie the most opportune time for selected officers to visit. Ibe Did Country. and we think that consideration might well be given to this. ‘‘SAFETY FIRST” EDUCATION., in connection with railway education it is noticed that there is no system of inculcating ‘‘Safety First” principles among the railway staff. This is a scheme inaugurated in '.England and followed in America. Australia, ami elsewhere with marked success. AYe think it advisable that steps should lie taken to interest railway employees and the public to protect, themselves from danger by means of suitable posters, cinema films, ami through the medium of a railway journal, the development of which is proposed elsewhere in this repent. SUMMARY OF RECOMMENDATIONS. AYe give below a .summary of our principal rciommcndnlions: — FINANCE. (1) That railway finance be taken out of the cuiirol of the Treasury, and the Railway Department be given lull c.mtrol of its own funds. (2) That reserve funds he established to provide lor obsolescence and wasting assets of permanent-wav and roll-ing-stock. (It) That the Railway Department lie recouped by consolidated revenue for losses incurred upon development lines, less the net value of traffic contributed by such lines to main lines. (I) That the Railway Department pay the actual rate of interest upon loans raised for railway purposes.

to) That the railways Ih> mi workec and managed that the gross receipt: shall he sufficient, to cover working ex (KUises, reserves, and inlerc.sl on capi tal. including sinking funds. In the event of any surplus, this to he devoted to reductions of rates and fares, am in the case of a deficit rates and fare.' he increased. (ti) That a yearly balance-sheet, showing capital, revenue, and net revenue. followed by departmental accounts in the usual company form and a forecast of capital commit men t.s for the following year, he rendered to the House of Representatives. (i) I hat the value of stores foil ml on hand with brandies and not on charge in the hooks of the C'omptrollei ot stores he used as the neitcleus of a reserve hind for arrears niton rolling stock.

ORGANISATION. (S) That :i.e Railway Department he managed by a Railway Hoard, comprising a Chairman and two other members. hi). That a secretary, cashier, and an operating and equipment assistant lie appointed.

< 10). That a chief mechanical engineer. liillv qualified and thoroughly conversant with up-to-date methods 01. railway working, he appointed. (11) That general superintendents, one lor the North Island system with headquarters a*. A tick land, the tiller lor the .South Island system with headquarters at Christchurch, he appointed, responsible to the Board and acting under regulations and instructions applicable to the system as a whole, for oprrntkn, commercial matters, and maintenance within their respective divisions. (12) That the number of traffic and civil engineering districts he reduced to six, three to each island. (13) That one divisional mechanical engineer in each Island is sufficient and that consideration he given to the question as to whether the North Island divisional engineer could not act as assistant to the chief mechanical engineer.

ENGINEERING. (lh. That new lines liklv to become main lines he laid with 701 b .section rails as a minimum. (LI). That consideration he given to the employment of living gangs for the maintenance of branch lines. (10). That modifications he made in the proposals for improvements and new works essential to cope with present and prospective traffic. -MECHANICAL. (17). That modern machinery be

provided in the locomotivo workshops and the general arrangements reorfganised. . e (IS). That a progress system for dealing with repairs lie adopted in the works. (Ift). That a system of standard gunges he introduced in connection with locofotivo maintenance and renewal. (20) That at .' lilington works a separate shop he provided for the maintenance of points and crossings. (21) That the methods of bringing in locomotives for repair he carefully reviewed, to avoid engines being brought in for overhaul too frequently. (22) That Petone and Addington works deal with the whole of the locomotive requirements in both Islands. (23) That Napier, AVliangarei, East' Town, (I’rcyinouth, and Invercargill be closed down for locomotive work. (21). That improved methods for getting engines through the shops be introduced, in order to reduce the average time for heavy repair and thorough overhaul. (25). That large expenditure on running-sheds is not warranted, as the proportion of the engines undei cuter would appear to ho sufficient. (00) That the capital stock of locomotives is high, indicating a number of obsolete types, these to be replaced as early as possible. (•>S) ‘That, in addition to perpetuating the A. Aa, Hu, Wah. and AVs classes, a powerful type of shunting engine witli .three cylinders, also a. main-line express engine have oft Inn. driving wheels and three cylinders, bo designed, and for taking goods trams of heavier weight over steep melmos a suitable Ganatt engine be utilised. (201 That new locomotives he purchased from outside, rather than built ill existing shops, which are not laid out for doing this economically. (30). That consideration be given to utilising old classes of engines, such as L and La. with one or two vehicles attached instead of ordering special rail motors. . (,‘U) That consideration ho given to the purchase of AYolsli coal, which, as has been stated in evidence, would redncc consumption. That trials he given to a seertain to what extenfit would bo possible economically to use New Zealand coal. . (33). That consideration be given to the maintenance costs of carriages and wagons, which would appear to be callable of reduction. CM). That as the wagon stock appears to be high, careful consideration be given to this matter. (35). That as the average ages of carriages, brake-vans and wagons aro respectively 22.77. 27.45, and 22.70 years, indication a number of obsolete types these bo replaced as early as possible. . . (3(i). That standardization bo introduced in connection with the length of carriages over headstocks. The ivpes should not exceed three, or at the outside four. Bogies and underfill mes also to he standardized. (37). That standardization he introturns comparing costs, etc., he introduced. OPERATION. (3<jt). That a conipleto revision of time-tables is essential. (3D). That mixed trains he reduced to a minimum. (10) That tourist, excursion, and half-day suburban traffic be encouraged by increased facilities and popular fares. (-11). That the control of train movement and distribution oi. wagon stock be centralized. (12) That collection and delivery of goods and parcels in combination with motor-owners he introduced. (13) That no rental in addition tocost of construction and renewal bo charged on private sidings. RATES AND FARES. (11) That excursion fares ho reduced. (15). That fares Tor distances up to 3 miles be reduced. (hi). That great caution be exercised in reducing rates. (17). That certain coal rates ho increased. STORES. (IS). That the Stores Branch ho reorganised so that the whole of the stores, including coal, he brought under the direct supervision of too Comptroller of Stores. (ID). That improved methods of conservation, distribution, and stocktaking be introduced. (50) That the method of charging out stores lie simplified and arranged so that the Railway Department assumes responsibility lor items immediately tliev are delivered. GENERAL. (51) That more complete statistical data be compiled. (52) That* a graduated schema of railway training be instituted. (53) That a programme of officers’ visits to other railways be arranged. In this report under the several headings we make a number oi suggestions which we consider should follow on the adoption of the abovementioned recommendations. CONCLUDING REM A R KS. In concluding our repirt we would express appreciation oT the manner in which the officers of the Railway Department, from the General Manager downwards, have assisted us. A largo amount of information, statistical and otherwise, was required in connection with oi r investigation, and this was col la a ted and supplied with a promptitude that" merits record.