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necessary to explain that every personal accident, no matter how caused, is enumerated. The accidents which occur to men working at the bench, or when engaged in loading ships or railway-wagons, are included, as well as accidents to persons neither employed upon nor in transit by railway, such as trespassers or persons crossing the railway-lines. No deductions from this return can be of any value which ignore the nature and cause of accident as set forth. 2. EAENINGS. As before stated, the revenue for the year ending 31st March, 1900, amounted to =£1,623,891, an increase over the previous year of £154,226. The estimate was £1,475,000, which, in view of the large freight-reductions made on Ist April, 1899, was as high as prudence would allow. It is a matter for much congratulation that the estimate has been exceeded by £148,891. The receipts per train-mile have increased —namely, from 7s. sd. for 1898-99 to 7s. 9d. for 1899-1900. The number of passengers (exclusive of season- and commutation-ticket holders) who have travelled is 5,468,284, or 512,731 more than last year ; 8,308 more season tickets have been sold. The revenue from passengers exceeds that of last year by £39,468. The number of passengers increased 10 per cent., and the revenue 81 per cent. Taking the year 1883-84 as a basis, it is a remarkable fact that the firstclass passengers have increased by only 22 \ per cent., and the second-class passengers by not less than 79f per cent. It is well to bear this factor in mind when making provision for the future. The difference would be much greater were the year 1897-98 taken for the purpose of comparison with 1883-84, first-class being under 8 per cent, increase and second-class nearly 53 per cent., so that the prosperity would appear to have induced more first-class travel during the past two years. None the less it is evident that the tendency is towards one class of carriage, as already exists in the case of tramways and omnibuses. The revenue from excursion fares continues to increase: 657,323 tickets were sold last year, producing £100,907, an increase of £9,896 over previous year and £43,428 over 1896. School excursions show a falling-off. (See Return No. 11.) The revenue derived from parcels, luggage, and mails was £68,488, as compared with £66,418, an increase of £2,070. Parcels increased by 34,743 in number. In the Goods Department, 3,251,716 tons, including equivalent weight of live-stock, has been carried, producing a revenue of £1,040,383, an increase of 507,274 tons and £112,689 over last year. This enormous increase is mainly due to the bountiful harvest in the South Island, and which was carried at freight rates averaging 20 per cent, below those ruling in the previous year. This factor is very noticeable when the relation between earnings and expenses is taken into consideration. The number of sheep carried was 2,523,787, as compared with 2,518,233 last year, an increase of 5,554. There are increases in the goods traffic for wool, firewood, timber, grain, merchandise, and minerals. Chaff, &c, shows a decrease. Reductions in fares and charges as set forth in Return No. 32 have been authorised. The most important reductions are for stallions on circuit, stud stock for breeding purposes, butter, cheese, grain, flour, potatoes, and other agricultural produce, and small lots of goods under 1 cwt. The business in the southern portion of the North Island still continues to expand, the increased receipts from the Wellington-Napier-New Plymouth Section amounting to £29,500, or nearly 7f per cent. In response to numerous inquiries and recommendations, the check-luggage system was introduced during the year, but so far the public have not made use of the system to any extent. For long journeys and large quantities of luggage the check system is an admirable one, but passengers on short journeys with a portmanteau only regard the procuring of a check as troublesome, and in