D.—2

8

provements stockyards, &c. Cross Creek —Library and reading-room. Carterton—Verandah; station impi ovements. Tahoraiti—Siding. Kaitoke—Siding extension and interlocking. Piripiri —Viaduct (part). Napier—Station improvements. Christchurch—New goods-offices (part); coaling-crane; improvements Park Street crossing. Ashburton—New platform approach. Pairfield —New station. Timaru, Tinwald, Eangitata, Eolleston, Morven —Additional sidings. Lyttelton — Crane; siding extension. Eangiora—Additional sidings; 2,000 gallon vat; signals. Lincoln—Addition to station-building. Orari—Luggage-room and loading-bank. Clinton—New station-building (part). Oamaru —New station; stone protection at Esplanade; coaling-crane. Waitaki Bridge —Strengthening (part). Upper Waitaki Bridge—Protective works. Clarendon— Loading-bank. Pukeuri —Boad-approach. Waitati — Turntable and siding. Hillside—Workshops extension. Port Chalmers—Fish-loading stage ; tunnel gongs. Pelichet Bay—Public levelcrossing. Kensington — Level-crossing gates. Dunedin— Loading-bank. Allanton — Siding extension. Otago Central Eailway—Lightening rock cuttings. Winton—Additions to stationbuilding; signals; verandah. St. Patrick's—New station. McLean's Crossing —New Station. Invercargill—Over-bridge; additions to goods-shed; junction for Seawards Bush Branch. Athol —Stockyards and siding. Pukerau, Waikaka—Flood-openings. Wilson's Crossing—Siding extension. Woodlands — Station improvements. Otautau, Orepuki — Additions to station-building. Whangarei—Office for Inspector. Kaihu —Latrines. Westport—Additional sidings ; extension of smithy and iron-rack ; water-service improvements. Granity—Goods-shed. Fencing line and strengthening bridges, Westport Section. Nelson—lmprovements goods-shed. General: Seven new houses have been provided and thirty-two added to and improved; and seven platforms and verandahs extended. Several telegraph and telephone services were purchased, and additions, &c, were carried out in various districts. The total cost of works charged under the heading of " Additions to Open Lines" is £64,200. Expenditure. —The total expenditure for maintenance was £392,141, or an increase of £38,195 over that of the previous year, being at the rate of £186 per mile of railway. There were increases on the following items : — £ 1. Track-surfacing, amounting to ... ... ... ... 8,923 2. Track-renewals, amounting to ... ... ... ... 32,273 3. Bridge repairs and renewals, amounting to ... ... ... 3,529 Or a total of ... . ... ... ... ...£44,725 There were decreases on other heads, making the net increase £38,195. The additional amount for track-surfacing was due to the higher rate of wages, extra mileage, and a slight proportionate increase in the number of men employed. The second item was mainly due to greater length of relaying, being seventeen miles more than the quantity laid during the previous year, and to the higher prices of materials. The comparatively large expenditure on maintenance of our lines may be attributed to the necessity of providing a more substantial class of railway to meet the expansion of traffic. This affects both the bridges and the track. Our railways were originally of a temporary character as regards the structures and permanent way, and fit only for light engines and light traffic. Locomotives which have been imported in recent years require stronger structures and track. This practically means providing a higher class railway ; and it seems only equitable that a portion of the expense so incurred should be debited to a capital account, and not to ordinary maintenance. If this principle were applied to the past year's expenditure, the following amounts might fairly be so charged : — £ For improvement of sixty-four miles of track ... ... ... 20,000 For strengthening bridges ... ... ... ... ... 13,000 For miscellaneous improvements... ... ... ... ... 5,069 Total ' ... ... ... ... ... ... £38,069 The ordinary maintenance would then be relieved and reduced to a more reasonable amount. My predecessor in his last annual report (year ending the 31st March, 1899) referred very fully to this matter, and he also furnished tables setting forth future proposals for renewals of track and structures. It is therefore not necessary for me to enter further into the question than to urge that it receive the consideration it demands. Mileage. —The total mileage open for traffic on the 31st March, 1900, was 2,103 miles 16 chains. The following lines having been added during the year:— M. eh. Gorge Eoad to Waimahaka on the Seaward Bush Branch .■.. ... 640 Winton to Hedgehope on the Forest Hill Eailway ... ... ... 12 66 Total ... ... ... ... ... ... 19 26 Private Sidings. —Eleven new sidings were granted making the total at -the 31st March, 1900, 264, with an annual rental of £4,437. Leases. —New leases issued amounted to 311, the total number current at end of year being 1,600, with an annual rental of £15,399. Staff. —The working-staff was 2,345 and office-staff 79, making a total of 2,424. Mr. J. H. Lowe, who for some twenty-seven years had been employed in the service, retired in July last; from which date the charge of the maintenance branch was placed in my hands. I append the usual returns. I have, &c, , John Coom, Chief Engineer. The General Manager, New Zealand Eailways.