D.—2

The particulars of the expenditure on train-operation are as follows

The operating expenditure per train-mile for all lines was 143'37d.. as against 146-19 d. for the preceding year, a decrease of 2*B2d. per train mile. The expenditure per train-mile on the North Island Main Line and Branches Section was 130-99 d., and on the South Island Main Line and Branches Section 159-85 d. Subsidiary Services Expenditure. —The expenditure in connection with subsidiary services was £303,858, as against £176,516 for the year 1924-25. The particulars of the expenditure in connection with subsidiary services are :— 1925-26. 1924-25. £ £ Lake Wakatipu steamers .. .. .. .. 15,613 12,279 Refreshment service .. .. .. .. .. 119,585 99,997 Advertising service .. .. .. .. 31,239 29,647 Departmental dwellings .. .. .. .. 129,907 34,203 Leases refreshment-rooms, bookstalls, &c. .. .. 7,514 390 £303,858 £176,516 Net revenue from subsidiary services (including miscellaneous £208,089 £85,596 receipts) Net Revenue. The Net Revenue Account from all services, after setting aside the sum of £317,143 for renewals and equalization funds and paying interest charges amounting to £1,913,311, shows a surplus of £79,023, as compared with a deficit of £87,736 last year, when no provision of any kind was made for reserves. From the surplus of £79,023 the amount of £58,000 has been placed to betterments and £21,023 carried forward. Particulars are shown hereunder :— £ Net earnings, train-operating .. .. .. .. .. 1,424,704 Net earnings, subsidiary services .. .. .. .. .. 208,089 1,632,793 Subsidy in respect of developmental lines .. .. .. .. 359,541 1,992,334 Less interest charges .. .. .. .. .. .. 1,913,311 £79,023 A ppro'prialions — £ To Betterments Fund .. .. .. .. .. .. 58,000 Carried forward .. .. .. .. .. .. 21,023 £79,023 Renewals and Equalization Funds— The position in respect of the renewals and equalization funds on the 31st March was :— Contributions. Expenditure. Balance. £ £ £ Renewals .. .. .. .. .. 553,893 273,055 280,838 Fire insurance .. .. .. .. 9,664 4,880 4,784 Slips, floods, &c. .. .. .. .. 31,505 7,300 24,205 Workers'compensation .. .. .. 43,174 37,858 5,316 Betterments .. .. .. .. 39,718 37,718 2,000 677,954 360,811 317,143 Betterments: To appropriation from net revenue 58,000 — 58,000 £735,954- £375,14-3

XXXI

Percentage Percentage 1925-26. of Operating 1924-25. of Operating Revenue. I Revenue. I I £ £ Maintenance—Ways and works .. .. 1,144,385 15-08 1,137,629 ! 16-22 Maintenance —-Signals .. .. .. 105,064 1-38 83,880 j 1-20 Maintenance —Rolling-stock .. .. 1,311,317 17-28 1,095,640 15-62 Examination, lubrication, and lighting of 59,447 0-78 58,500 0-83 vehicles Transportation —Locomotive .. .. 1,577,173 20-78 1,365,838 19-47 Transportation—Traffic .. .. .. 1,743,641 22-98 1,626,928 23-19 Head Office and general charges .. .. 82,528 1-09 84,721 1-21 Superannuation subsidy .. .. .. 141,015 1-86 80,000 1-14 6,164,570 81-23 5,533,136 78-88 Net operating revenue .. .. .. 1,424,704 18-77 1,481,512 21-12