D.—9 A,.

REPORT. To His Excellency the Administrator of the Government of the Dominion of New Zealand. May it please Your Excellency,— In pursuance of the Commission issued to us by the Governor-General by Warrant dated 18th October, ]924, whereby we were appointed and authorized to inquire into and report to yon upon the following questions, namely : — The financial arrangements, management, equipment, and general working — including the administration, control, and economy—of the Railway service in New Zealand, and more particularly — (I.) The organization and running of the passenger and goods traffic, the services rendered, the scales of fares and freights operating, the finance and financial returns ; (2.) Matters appertaining to the organization and conduct of the mechanical section of the system in relation to the respective types of locomotives and rolling-stock adopted, cost, economy of life and use, equipment, renewal, and maintenance charges ; (3.) Matters relating to the construction, renewal, and maintenance of permanent-way, including station equipment and the systems of signalling and interlocking adopted ; (4.) Improvements and new works that may be deemed to be essential to cope more economically with present and prospective traffic, including new station buildings, yards, deviations, &c., and the order in which such works should be carried out; (5.) Whether the present discretionary powers held by the District Traffic Managers are sufficient under existing conditions, having regard to the increasing competition by road and sea ; Whether more satisfactory and expeditious handling of traffic could be brought about by decentralization ; (0.) Delegating powers to District Managers to enable them to make reduced quotations for traffic in exceptional cases to counteract competition or secure business ; (7.) The general viewpoint of the staff in dealing with the Department's business ; (8.) Whether the steps at present taken to secure excursion traffic in connection with big events are sufficient; (9.) Whether the present statistical data compiled by the Department is sufficient to enable transportation officers to accurately gauge the cost of services in dealing with general transportation matters ; (10.) The policy of the Government in connection with the leasing and the construction of private sidings ; (11.) The use of rail motor-cars and the type suggested for New Zealand conditions ; (12.) The construction of a special rolling-stock, heavier or lighter, to meet special conditions in various districts ; (13.) The costing and statistical methods in the Maintenance, Workshops, and other branches, we have the honour to submit the following report: —

3