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the public in connection with the traffic, both as regards passengers and goods. The locomotive superintendent has charge of the locomotives and all rolling-stock, repairing shops, and machinery. He keeps accounts of the cost of working the locomotives, and sees that they are properly handled and used. The drivers and firemen are appointed by him, and are answerable to him as to their usage of the engines. While an engine is attached to a train, however, the drivers are under the orders of the traffic department in so far as the movement of the train is concerned ; but the traffic manager may not direct a driver how he shall handle his engine, what steam pressure he shall be limited to, what rate of speed he may not exceed, when he should take his engine into the shop for overhaul, nor any other of the numerous matters pertaining to locomotives which require technical and mechanical knowledge. These matters are left entirely to the control of the locomotive superintendent. Again, the engineer for permanent-way has charge of all the standing works of the line. The workmen required to keep the lino in repair are under his orders. He is responsible to keep the line in a safe state for running over, and, further, to see that the property does not become deteriorated or bo allowed to run down into a state of decay. This is a matter of the utmost financial importance where works of such enormous value are concerned. The accounts of the cost of repairs and renewal of all the various kinds of structures are kept by him. The general manager controls all these sub-departments, to insure the due and proper working of the functions of each. Years of railway experience have led to this arrangement. Nothing is better known to bankrupt companies than the fact that it is easy to make a fair show of traffic receipts against working expenses of small proportions, until a breakdown occurs, and it is found that the line is in a state of wreck from end to end, simply from the postponement of needful repairs and renewals, with the object of keeping down the account of working expenses. The proverbial stitch in time was saved, and the companies' property ruined. Again, engines may be overworked by officers whose only concern is to run traffic, or they may be put to work for which they are not fitted, or used on lines to which they are not adapted. In all such matters and abundance of others that could be instanced lie occasions of enormous loss, though not directly observable by the uninitiated, and which are the invariable result of employing persons in capacities for which they have not been trained. On various railways, large and small, in Great Britain, Europe, and America, in fact all the world over, these subdivisions of railway management are to be found. The officers directing these subdivisions are called under a variety of designations on different railways, but practically the subdivision of the service remains the same. O*n some very small lines, only a few miles in length, one person may do duty for two departments, sometimes one person combines the three; but this is a makeshift to suit the ease. On the large English and American railways each head of the sub-departments has numerous assistants. In some cases there are as many as five assistant engineers, and even up to thirty assistants to the traffic manager, independently of stationmasters. In the hands of these assistants the different branches of the business are subdivided. It may be positively asserted that, wherever the lines are of any considerable extent, separate officers for the distinct sub-departments are employed. Now, turning to the Middle Island railways of New Zealand, the system of management is precisely in accordance with the above-stated arrangement. I myself hold the position and exercise the functions of a General Manager. My title of Commissioner of Eailways was not chosen by myself, and does not affect the fact that my duties are those of general manager sole and proper. I have under me the three distinct branches of service and responsibility —viz. : the traffic, locomotive, and per-manent-way, with officers appointed to each department the duties of which they were fitted to fill. The Traffic Managers have been termed General Managers, with the object of fulfilling certain statutory requirements which were found necessary while the lines were disconnected, but nevertheless their duties and functions are those of traffic managers. The Civil Service Commissioners state that the principle of management as practised on other railways is here so far ignored that the traffic manager is precluded from giving orders to an enginedriver, except through the locomotive engineer. Now they have begun with admitting the necessity of conforming to accepted usages in other countries, and of having but one controlling^ead of the railway working. In this last sentence they regard this controlling head as the traffic manager, and complain that he cannot control engine-drivers. They here confound the functions of a traffic manager with those of a general manager. It is,.however, incorrect to say that traffic managers are precluded from giving any orders to engine-drivers except through the locomotive engineer. On the contrary, any order which relates to the running of a train while the driver is attached to the train may be, and is, given to the driver by the traffic manager, or more generally by the guard acting under him, for the whole duty of controlling the movements of the train rests on the guard, subject to the orders of the traffic manager. On the other hand, any orders not connected with the running of the trains, such as pertain to the treatment of the engine itself, the traffic manager does not give. All employes, however, of every grade, whether in the traffic, locomotive, or permanent-way departments, must obey the general orders of the general manager, which, as a rule, are issued through the proper officers. This arrangement agrees with the most ordinary railway practice, and is not the cause of confusion, hitch, or antagonism at all. If any want of harmony exists it does not arise from a faulty system, but from a lack of good nature in individuals such as may occasionally be exhibited anywhere. While referring to the functions of the traffic manager, I stated as one of his most prominent duties that of the ordering the movements of trains. My rule is that the traffic manager only shall have power to alter the appointed crossing-place of two trains: in this I follow the regular practice on other railways. During my examination the Commissioners particularly pressed me on this point, alleging that when trains were behind time this rule was productive of further delay. They strongly insisted that every station-master should be empowered to arrange the crossing-places of trains and alter them to suit the emergencies that may occur. I entirely disagreed with them, because I know that any such

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