D.—2

Appeal Boards were constituted under the Classification Act of 1895 for the purpose of enabling railway employees to have their grievances adjudicated tm by an independent tribunal. Two Boards were appointed—one for each Island. Originally the Board consisted of a Judge or a Stipendiary Magistrate and one member elected by the First and Second Divisions of the Eailway service respectively. In 1901, however, a request was made for an alteration, with a view to enabling sections of the Second Division to be represented on the Board, and this was given effect to under the Classification Act of 1901. It is doubtful, however, if the change is an improvement, and many of the men are in favour of a return to the original system. The functions of the Board being judicial, it follows that nothing is to be gained by varying the personnel of the Board when dealing with different appeals. Since their establishment the Boards have heard 110 appeals, of which twenty-three have been upheld and eighty-seven dismissed. The Government has under consideration the question of improving the position of the lower-grade men on the permanent staff of the railway. The question is, however, one of very considerable magnitude, and is moreover surrounded by many difficulties apart altogether from the financial aspect. To treat the permanent staff now in receipt of 7s. per day in the same manner as the casual ballast men would involve an expenditure of £50,000 per annum. The position of members of the various branches of the permanent staff varies considerably in regard to the opportunities for promotion. The great majority of the seven-shillings-per-day men in the Locomotive and Traffic Branches have many avenues of promotion open to them, consequently their promotion is rapid, and their cases do not require the same consideration as the men employed in the Maintenance Branch, where the opportunities of promotion are limited. For this reason, therefore, lam of opinion that it would be proper and prudent to confine any alteration in the rate of pay to the lower-paid men in the Maintenance Branch. To give an increase of Is. per day to such men would involve an additional expenditure of £20,000 per annum. Data is being obtained in connection with a proposal for shortening the hours of enginemen, firemen, and guards. The adoption of a forty-eight hours week for such men would be very costly, involving an annual increase in the expenditure of at least £14,000. Apropos of this matter, it may be mentioned that recently instructions were given to shorten the maximum daily time trainmen were called upon to work when running certain trains, but as soon as the arrangements were brought into operation a considerable number of the men requested to be allowed to revert to the old system which has been in operation for many years. Sleepers have been respaced on about 1,200 miles of line, and many of the bridges strengthened. New steel viaducts have been erected at Kopua, Makotuku, Piri Piri, and Mangatera. During the five years ending 31st March, 1900, 225 miles were relaid with 531b. and 561b. rails, and during the corresponding period ending 31st March, 1905, 110 miles of track were relaid with 53 lb. and 56 lb. rails, and 228 miles with the 70 lb. rail, adopted as the standard for all main lines in 1900. The total relaying done during the ten years 1895-1905 was. therefore 563 miles —335 miles with 531b. and 561b. rails, and the balance with 701b. rails. With a view to increasing the durability of New Zealand timber used for sleepering the railway-lines, a creosoting plant was imported and erected at Woodville during the year ending 31st March, 1903; a similar plant also commenced operations in the Invercargill district at the same time; and up to date have treated a large number of sleepers. Sufficient time has not, however, elapsed to enable the result of creosoting New Zealand timbers being ascertained, but there are good reasons for supposing that the process will result satisfactorily. Additional facilities have been afforded at flag stations by the appointment of caretakers and tablet-men. The appointment of caretakers has been made at such stations as the business warrants, tablet-men being, of course, appointed to such stations as are fitted from time to time with the tablet instruments.

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