D.—2.

XXXVII

The figures per mile of line are very instructive when considering the value of new lines to the system : — The length of branch lines included is 719 miles. £ The average capital cost per mile, including rolling-stock, is only .. 7,333 The average revenue per mile is .. .. .. . . .. 406 The average expenditure per mile, exclusive of interest, is . . .. 475 Made up as follows : — £ Maintenance of track and structures . . . . . . 187 Upkeep of cars, wagons, &c. .. .. .. .. 33 Transportation expenses .. .. . . .. 234 General and administration, &c. . . .. .. 21 Total .. .. .. .. £475 The average interest per mile at 3f per cent, is . . .. . . .. 275 The average interest per mile at 1| per cent, is .. .. . . .. 302 If these lines were constructed at the prices now ruling the costs would be much higher. An inspection of the figures in the column showing the average revenue per mile shows that, apart from exceptional cases, a revenue of more than £400 per mile cannot be expected, even after the business has had many years in which to become established. A close analysis of the value of the branch-line traffic as feeders to the main-line traffic has been made, and this shows the value to be £100 per mile for the year's figures quoted above. Taking this into consideration, the comparative values per mile of the opened branch lines to the system may be placed as follows : —■ £ £ Revenue . . . . 406 Expenditure .. .. 475 Value as feeders to main line 100 Interest .. .. .. 302 506 Loss to the system .. 271 £777 £777 On new lines mooted and under construction, where the cost per mile runs to £15,000, £20,000, or £25,000, the interest-rate runs to £619, £825, and £1,031 per mile respectively, plus the cost of rollingstock necessary to properly equip the lines. The Board is giving consideration to the problem of reducing the losses on the branch lines to a minimum. The figures quoted above will show what a difficult task it is. The following figures in amplification of the above will be of interest: — Average Revenue per Mile of Line. £ All lines .. .. .. .. .. .. .. .. 2,316 North Island, exclusive of branches .. .. . . .. .. 3,870 North Island, inclusive of branches .. .. .. .. .. 3,602 South Island, exclusive of branches . . . . . . . . .. 2,432 South Island, inclusive of branches .. .. .. .. 1,637 North Island branches, as per list . . . . . . .. .. 413 South Island branches, as per list . . . . . . . . . . 405 Kaihu Section .. .. .. .. .. ~. .. 378 Gisborne Section .. .. .. .. .. .. .. 728 Nelson Section .. .. .. .. .. .. .. 405 Picton Section . . .. .. . . .. .. .. 609 Westport Section .. .. .. .. .. .. .. 3,568 Superannuation Fund. The report and balance-sheet of the Government Railways Superannuation Fund for the year ended 31st March, 1925, shows the position to be as follows : — Annual liability, £205,579. £ Members contributions .. .. .. .. .. .. 139,333 Fines and donations . . .. . . . . . . . . 436 Interest .. .. .. .. . . . . 36,941 Deficit, to be drawn from subsidy . . . . . . .. .. 28,869 £205,579 At the same date the liability to contributors in respect of amounts paid £ in was .. .. .. .. .. .. 1,060,205 The total accumulated fund was .. .. .. .. .. 734,112 Leaving a deficit of .. .. .. .. .. £326,093