D.— 2

VIII

Locomotives Built new ... ... 14 Rebuilt ... ... 6 Locomotive boilers „ ... ... 59 Crane boilers „ ... ... 19 Carriages „ ... ... 93 Converted and rebuilt 63 Brake-vans „ ... ... 15 „ 31 Wagons „ ... ... 2,004 „ 524 Tarpaulins „ ... ... 5,240 Points and crossings „ ... ... 383 The capacity of the workshops is not equal to existing requirements ; the Government therefore contemplate making extensive additions, so as to obviate any necessity for importation. 5. MIDLAND BAILWAX : EESULTS OF WOBKING. The revenue for the year ending 31st March, 1900, for the Midland Railway amounted to £22,248, and the expenditure to £19,085, giving a credit balance of £3,213. Compared with the previous year, the revenue shows an increase of £2,044, and the expenditure a decrease of £5,013. (See Appendix F.) Last year accrued local rates to the amount of £2,975 were paid off; this year the rates paid amounted to £1,217. New rolling-stock to the value of £2,704 was paid for last year, but no liabilities under this heading have been incurred this year. Flood-damages, to which this line is peculiarly liable, have been trivial as compared with the damage done in the previous year. The extension from Belgrove to Motupiko, which was opened on Ist March, 1899, gives very unsatisfactory results. The receipts from this portion of the system for year ending 31st March, 1900, amount to £884, and the expenditure to £1,520, showing a loss of £636, in addition to interest charges on capital cost. CONCLUDING EEMAEKS, AND FOEECAST. Following on the lines of the policy laid down in 1896 —that, a 3 per cent. return having been secured from the railways, substantial reductions both in passenger fares and freight for colonial products shall be made—the Government determined, as soon as the financial results for the year 1899-1900 were known, to make reductions to the extent of £75,000, on the basis of the past year's business. Previous reductions have included school-excursion fares, holiday fares, sheep rates, agricultural produce, frozen meat, butter, cheese, milk, firewood, lime, chaff, manures, and scrap-iron, totalling £294,239 in value on 31st March last. It was therefore deemed right that the travelling public generally should now receive substantia] consideration. The Government therefore decided to reduce the ordinary passenger fares, and with this end in view have adopted (on 24th June) a passenger-rate scale fixed on the basis of ljd. per mile first class and Id. per mile second class. This gives a lower average rate for travel than in any of the Australian Colonies or in England. In this connection it will be interesting to compare the average fares in the following countries : — United States of America ... ... ... ... l-28d. per mile. -n, , -, list class ... 2-00 d. ~ England ... ... ... ... Ir> j 1 -i r\r\a 6 (2nd class ... l-00d. „ Prussia ... ... ... ... Ist class ... l-50d. „ Austria ... ... ... ... Ist class ... l'sod. „ France ... ... ... ... Ist class ... l - 66d. „ ■vr rz i j (Ist class ... l - 50d. ~ New Zealand |2ndclass ... l-00d. Representations have been made that our fares should be still further reduced, but a prudent policy will not allow of this being done. The probable effect of reductions on our revenue has to be considered, or we may be compelled, after reducing, to increase our fares, as Austria and Hungary have done on two occasions since the introduction of their Zone tariffs. Some exception has been taken to the practice of charging double single fares for return journeys; but the principle is sound, and no exception should be taken to it, as shown in the following table giving examples of fares at Home as compared with New Zealand fares for similar distances : —