D.—2

XXXVI

British manufacturers are given a preference over those from foreign countries, and the total amount spent in countries outside the Empire is only about £17,000, practically all of which is spent in the United States of America and nearly half of it is for lubricating-oils. A reorganization of the Stores Branch has been put in hand. In order that the reorganization may be dealt with on up-to-date lines the Comptroller of Stores and a Stores Audit Inspector were sent to Australia to investigate the methods in use there. Following on the information gained, the main stores are being remodelled on a system which will enable a thorough check to be kept on all supplies. Substores are also being provided at all workshops and depots for the purpose of enabling the Stores Branch to control the supplies until they are actually required to be put into use. Previous to the war, stores were procured under contracts for definite terms. Owing to the want of stabilization in prices that followed on the outbreak of the war this method of procuring stores hsid to be abandoned, but consideration is now being given to a return to this system, and to that end arrangements are being made under the tegis of the Stores Control Board to reconstruct the contract schedules and to standardize as many of the items as is practicable, so that common contracts may be let for the regular requirements of all Departments of State. The effect of this should be not only to afford all Government Departments the bcnefr of purchasing on a large scale, but also to improve the facilities under which stores are obtained for this Department. It will also relieve the Railway Stores Branch of a considerable amount of detail work that is now performed in connection with supplies for other Departments of State. Sawmills. The Mamaku Sawmill produced 4,124,301 superficial feet of sawn timber during the year. The Profit and Loss Account shows a net profit of £455 12s. 7d. after allowing interest and depreciation. The values of issues of timber from Mamaku to the construction branches totalled £34,503 14s. lOd. The Frankton Junction sawmill is supplied from the logging areas of Pokaka and Erua. At Pokaka the logs felled totalled 3,600,182 superficial feet; at Erua, 3,617,283 superficial feet. At Frankton Junction the sawmill converted logs to 4,331,322 superficial feet of sawn timber at a cost of £41,084 2s. lOd. The Profit and Loss Account for the year, after all charges have been met, shows a profit of £1,241 Bs. 6d. The value of issues of timber to the construction branches totalled £140,533 9s. lOd. It is, of course, not intended that the sawmills should make profits. The mills serve a useful purpose to the Department in providing a sufficiency of timber of the special sizes and qualities required for the Department's work, and any gain is to the construction branches. I Sua Neil Lines. The loss, including interest, on the branch lines enumerated below was £247,810, of which £197,817 represents interest at 3f per cent. A statement showing the operation - costs is given below

j I I Average per Mile of Line. D , T . Net Loss on . , !?' Branch Lines. ,, „• , • including Revenue. Working. Working- T . . Revenue. expense l Interest. £ £ £ , £ £ £ Waiuku .. .. .. 32 .. 8,096 466 464 660 Waitara .. .. .. .. 2,370 3,938 1,320 1.847 348 Toko .. .. .. .. 20,424 47,997 279 473 655 Foxton .. .. .. 566 .. 1,585 626 597 112 Grey town .. .. .. .. 1,919 2,425 262 901 169 Eskdale .. .. .. .. 5,410 11,903 179 641 555 Eyreton and Oxford.. .. .. 3,788 10,253 186 256 120 Cheviot .. .. .. .. 3,142 16,973 316 388 316 Little River .. .. 534 .. 4,099 376 352 207 Southbridge .. .. 4,424 .. 761 846 672 204 White Cliffs .. .. .. 705 1,879 315 377 103 Methven .. .. .. 93 .. 3,198 398 394 149 Springburn.. .. .. .. 11,315 14,050 233 259 100 Fairiie .. .. .. 1,639 .. 4,846 432 387 180 Waimate .. .. .. .. 3,615 5,883 336 620 178 Kurow .. .. .. .. 1,016 6,724 299 326 153 Ngapara and Livingstone .. .. 3,600 10,420 208 342 254 Waihemo .. .. .. .. 809 2,234 160 254 165 Otago Central .. .. 14,958 .. 41,437 640 538 384 Lawrence .. .. .. .. 2,035 14,009 453 512 346 Tapanui .. .. .. .. 3,729 8,743 286 429 192 Waikaka .. .. .. .. 1,375 4,232 208 317 227 Switzers .. .. .. .. 1,687 3,858 149 272 159 Glenham .. .. .. .. 3,938 7,184 220 644 349 Seaward Bush .. .. 2,279 .. 5,213 483 413 229 Forest Hill .. .. .. 3,173 4,350 188 438 93 Mararoa .. .. .. .. 468 1,520 115 162 104