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APPENDIX K.

ANNUAL REPORT ON WORKING RAILWAYS. The Genehal Managee, New Zealand Railways, to the Hon. the Minister for Public Woeks. Sib,— Wellington, April, 1882. I have the honor to report on the working railways of the colony for the year ending 31st March, 1882. Whangarei Section. —The construction of the line to the permanent shipping place not being as yet complete, the results of working are unfavourable; it is not probable that in its present unfinished state good results will be obtained from it. Auckland Section. —The junction between the Auckland and Kaipara lines was opened on the 19th October, 1881, and the branch from Kumeu to Biverhead was closed. A scale of rates to meet the wants of the Kaipara District has been introduced. More direct means of communication between Kaipara and Auckland has led to increased traffic. Special rates to facilitate traffic between Onehunga and Auckland, and between these ports and the Waikato District, have been introduced. Much difficulty has occurred in conducting the traffic through the defective accommodation at Auckland and other stations alluded to in my last annual report. The telegraphic arrangements have proved insufficient, and require improving. The percentage of expenses to revenue for the year is 6834 as against 6895 in the preceding year. Renewals of the line are increasing; extra provision is made in the estimates to meet the expense. The removal of the shops to Newmarket is imperative, in order both that the needful work may be done, and that the room they now occupy may be available for station purposes. A proper system of signals is necessary on this line. More wagons, carriages, and locomotives are needed. New orders for carriage and wagon stock are in hand, and additional locomotives are ordered. Comparisons of the tonnage carried between this and the preceding year cannot well be drawn owing to the two lines being joined, but the increase in receipts is satisfactory. Expenditure in making up the maintenance arrears of former years, alluded to in my last report, has, to some extent, prevented the possibility of reducing the relative cost of working, and the extra mileage opened has added to the total expense. Napier Section. —ln all branches the traffic has increased largely, except in the case of wool. The percentage of expenses to revenue has fallen from 0061 to 53 87. The increasing cost of repairs on this section render it unlikely that the latter percentage will be further reduced for some time. The line and rolling-stock have been well maintained. The accommodation needed for sheep and stock alluded to in my last report has been put in hand. The general results of working have been satisfactory. Wellington Section. —All classes of traffic have improved except the most unremunerative one minerals, and wool which remains about the same. The percentage of working expenditure to revenue has fallen from 8749 to 7491. The expenses of maintenance have been heavy, four miles of steel rails having been laid in place of worn out iron rails. A more economical train service and speeds better suited to the exceptional character of the line have admitted of a reduced locomotive expenditure, although a larger mileage has been run owing to the shorter length of line working during the whole preceding year. Expenditure on stock repairs has increased considerably. An equivalent of seven miles more has been worked during this year than in the previous one, with a total expenditure somewhat lower. The working results are satisfactory. Wanganui Section. —All branches of traffic have improved except firewood. The timber trade has increased largely. The line has been worked with a percentage of expenditure to revenue of 6520 against 6678 in the preceding year. The expenditure on carriages and wagons is becoming heavy, and the cost of maintenance of way is on the increase. The line and stock have been maintained in good order, and the working results on the whole are satisfactory. New Plymouth Section. —This line has been extended to Hawera, 11 miles 60 chains. The increase in receipts is larger proportionately; but the traffic is as yet light. There seems, however, to be a prospect of rapid progress now that the railway has been extended through the bush. The percentage of expenditure to revenue is 7172, as compared with 8578 in the preceding year. Additions have been made to the rolling-stock, and further supplies are under order. Station accommodation is needed at New Plymouth, and arrangements are made by the Public Works Department to carry out the work. The stock and line have been well maintained. Greymoutli Section. —The traffic has improved ; and the percentage of expenditure to revenue, 4743, is exceptionally low. The line and stock have been maintained in good order. The cost of maintenance is on the increase. The colliery owners are pressing for further conveniences for shipping coal, and this subject demands early and careful consideration. Westport Section. —A large improvement in the traffic has taken place on this line, due to the Westport Colliery Company's operations. Additional stock has been placed on the line ; more will be required, and further facilities for loading ships should be given at the port. Nelson Section. —This line has been extended 2 miles 75 chains to Belgrove. The traffic was about the same as in the previous year, and the percentage of expenditure to revenue also remains about the same. The line and stock were fairly maintained. Picton Section. —The traffic on this line has improved, mainly owing to the diversion of the wool and merchandise between Blenheim and Wellington by way of the railway, to meet which special rates have been framed. Maintenance expenses are considerably on the increase. The percentage of expenditure to revenue was 6855 against 8311 in the preceding year ; results of working have been satisfactory. The line and stock have been improved during the year; and new wagons have been added.