D.—2

XXI

"Revenue.

Gross Revenue.—The revenue for the year from all sources was £8,434,654, as against £8,460,762 for the year 1925-26, a decrease of £26,108. The particulars of the gross revenue are a,s follows : — 1926-27. 1925-26. £ £ Train-operation .. .. .. .. .. 7,423,472 7,589,274 Subsidiary services .. .. .. .. 565,961 511,947 Branch lines and isolated sections subsidy .. .. 445,221* 359,541* £8,434,654 £8,460,762 * Payable in respect of developmental lines in terms of the Government Railways Act, 1926. Train-operating Revenue.--The total operating revenue for the year represented 88-01 per cent, of the gross revenue, and amounted to £7,423,472, of which the North Island system yielded £4,420,834 and the South Island system £3,002,638. The figures for the whole system show a decrease of £165,802 on the earnings of the previous year. The particulars of the operating revenue earned are as follows :—-

The operating earnings per train-mile for all lines were 166-14 d., as against 176-51 d. for the preceding year—i.e., a decrease of 10-37 d. per train-mile. The North Island main line and branches gave a return of 164-1 Id. and the South Island main line and branches 167-79 d. per train-mile. Subsidiary Services Revenue. —The revenue received from subsidiary services amounted to £565,961, as against £511,947 for the corresponding services last year. The particulars of the revenue earned arel926-27. 1925-26. £ £ Lake Wakatipu steamers .. .. .. .. 10,273 10,625 Refreshment service .. .. .. .. .. 129,612 133,658 Advertising service .. .. .. .. .. 47,387 45,454 Departmental dwellings .. .. .. .. 83,375 68,661 Leases refreshment-rooms, bookstalls, &c. .. .. 20,462 19,062 Non-operating—Miscellaneous .. .. .. 266,108 234,487 Road motor services .. .. .. .. .. 8,744 £565,961 £511,947 Expenditure. Gross Expenditure. —The expenditure on all services during the year was £6,490,880, as against £6,468,428 for the year 1925-26, an increase of £22,452. The particulars are» 1926-27. 1925-26. £ £ Train-operation .. .. .. .. .. 6,158,283 6,164,570 Subsidiary services .. .. .. .. 332,597 303,858 £6,490,880 £6,468,428 £220,589 was expended in the Maintenance Branch and charged to Capital Account under the head " Additions to Open Lines." These comprise additions to station buildings, extension of sidings, bridge-work, cranes, weighbridges, turntables, additional dwellings, and purchase of land. £91,608 was expended in the Locomotive Branch and charged to Capital Account in the provision of additional rolling-stock and electric lighting for cars. The rolling-stock in respect of which the charges were incurred comprised eighteen locomotives, seven cars, six guards' vans, and twenty-four bogie and 192 four-wheeled wagons completed on the 31st March, 1927, and four locomotives, eighteen cars, twenty brake-vans, and forty bogie and 290 four-wheeled wagons in hand but incomplete on that date.

| Percentage Percentage 1926-27. of Operating 1925-26. of Operating | Revenue. Revenue. I | [ £ £ Passengers, ordinary .. .. .. .. 2,045,348 27-56 2,271,498 29-93 Season tickets .. .. .. .. 258,832 3-49 265,549 3-50 Parcels, luggage, and mails .. .. .. 377,367 5-08 409,207 5-39 Goods and live-stock .. .. .. .. 4,596,166 61-91 4,499,160 59-28 Miscellaneous: Labour, demurrage, &c. .. .. 145,759 1-96 143,860 1-90 7,423,472 .. 7,589,274: