D—4,

With regard to additional payment made to members of the Second Division in connection with the running of trains after 10 p.m. and before 6 a.m., your Commission is of opinion that such allowance to men engaged on regular shifts is not warranted ; and, further, the payment of meal allowance to employees who are eleven hours or over on duty should be paid only when a meal is actually purchased. A reduction in the running of passenger, mixed, and goods trains will enable substantial economies to be made without affecting the safety or efficiency of the service. Your Commission is of opinion that traffic transportation costs are not down to a minimum, having regard to the necessity for the maintenance of a proper standard of safety and efficiency in operation. (17) Whether the abandonment of working (either wholly or in part) of any portion or portions of the railway system would be justified, having regard to the financial results of operating any such lines, the extent to which the various lines are used, and the alternative means of transport for passengers and goods available or feasible. Your Commission gave facilities during its sittings at Auckland, Wellington, Christchurch, and Dunedin to organizations and individuals interested to present evidence in regard to the position of the various portions of the railway system, and considered the alternative means of transport for passengers and goods available or feasible. Evidence was brought before your Commission by representatives of Chambers of Commerce, County Councils, Borough Councils, Town Boards, farmers' organizations, buisness firms interested in the operations of the railways, private individuals, and others concerned either by the curtailment or stoppage of the whole or any part of the services that affected them. Your Commission was impressed by the evidence submitted, particularly in the South Island, and by the sincere desire of the people in certain districts to prevent the abandonment of lines. Though those person benefiting from the railway service given did not in the past fully appreciate the facilities provided, now, with the possibility of abandonment, they expressed a keen desire to help the Department in every way, and we are convinced that representative organizations in various centres and districts will take steps to ensure that in future greater use will be made of the railway facilities, with resultant benefit to the Department. Your Commission has had submitted to it evidence concerning all lines in the Dominion —this evidence was given by both residents and settlers using the railways and by departmental officers. Main Trunk Lines. So far as the Main Trunk lines are concerned, if through services are to be maintained it is obviously impossible to close any portion of them, and your Commission has no recommendation to make. Branch Lines. In dealing with this question your Commission had to bear in mind that, whatever action was recommended in regard to the abandonment or curtailment of services on branch lines, the interest on the capital expenditure on these lines would still remain as a charge against the Department; therefore, particular consideration was given as to whether by a, readjustment of the goods services and the suspension of passenger services a position could be brought about whereby the revenue from the lines would more nearly meet the working and maintenance costs in the various sections dealt with. Evidence submitted showed that to a large extent the passenger traffic has left the railways either for the service car or the private car, and that the endeavoixr made by the Department in some instances to regain this traffic by means of increased and improved services was not successful- in fact, the increased passenger facilities which had been given only created a greater loss to the Department,

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