D.—2

On the basis of the number of days in shops the above represents— 1924-25 average Average. Days. 154 complete overhauls .. ..55 days 8,470 38 heavy repairs .. .. .. 36 days 1,368 298 light repairs .. .. ..14 days 4,172 14,010 1925-26 average : — Average. Days. 154 complete overhauls .. ..44 days 6,776 38 heavy repairs .. .. .. 41 days 1,558 298 light repairs .. .. ..11 days 3,278 11,612 Showing a saving of 2,398 engine-days, or additional days engines were revenueearning. Cars and Vans. Built .. .. 20 more. Rebuilt or heavy repairs 124 more .. 10-2 per cent, increase. Light repairs .. .. 113 more .. 37-2 per cent, increase. Painted .. ... 81 more .. 13-7 per cent, increase. Wagons. Built .. .. 21 more. Rebuilt or heavy repairs 268 more .. 2-9 per cent, increase. Light repairs .. .. 269 less .. 5-2 per cent, decrease. Painted .. .. 640 more .. 20-6 per cent, increase. Tarpaulins. New and replacements .. .. .. 175 more. Repaired .. .. .. .. .. 1,731 more. The output figures for the four main shops show an increase in the number of engines completely overhauled, and this has been achieved with a reduction in labour costs. Comparing cost of repairing locomotives this year with last, the position is as follows : — £ Wages .. .. .. .. .. 10,586 decrease. Material used .. .. .. .. 9,665 increase. Overhead .. .. .. 12,693 increase. The reason for the increase (£9,665) in material expenditure is due to the greater number of engines completely overhauled during the year. The increase (£12,693) in overhead charges is due to the reorganization of the Railways accounting system, whereby the cost of such items as insurance, interest, depreciation on buildings, machinery, &c., has been distributed over all workingaccounts. In previous years these were not debited directly to working accounts. Briefly put, the reduction in labour costs (£10,586) more than pays for the extra material (£9,665) used in obtaining a greater output. The workshops reorganization scheme was introduced to reduce working-costs, and the reduction in labour costs discloses the fact that it is already achieving this purpose. LOCOMOTIVE SUPPLY AND TRACTIVE FORCE. A committee of Railway officers is now going into the matter of engine-power generally with a view to evolving types most suitable for the varying duties to be performed, such as shunting, working branch lines, heavy grades, &c. Diagrams showing gradients and curves on the Main Trunk line were recently forwarded to Messrs. Beyer and Peacock, makers of the Garratt locomotive, with all necessary details to enable the firm to quote a Garratt type locomotive suitable to New Zealand conditions and draw-gear, the firm being asked to quote for two

VIII