D.—3.

developed. In such circumstances, the necessity for the provision of railway facilities was much greater than it is to-day. The area is well served by navigable waterways from its main distributing centre —Auckland City. The utility of these waterways was in the past, however, almost wholly nullified by the lack of good roads and suitable vehicles to transport the goods to and from the various landing-points. To-day, however, the position is entirely different. The road system of the district, has been developed to a very great extent, with the result that the utility value of the waterways as a part of the transport system of the district has been altogether altered, and, unquestionably, the waterways, in conjunction with good roads and suitable road-vehicles, are able to provide a means of transport reasonably adequate for the needs of the district and at a cost, both capital and operating, much lower than would be possible in the case of a railway. It must be remembered that, notwithstanding the provision of the railway, the development of the roading system has progressed, and is likely to continue to do so. The additional capital required to be expended to provide the necessary road-vehicles to operate in conjunction with shipping facilities is infinitesimal as compared with the capital required to provide a railway. It cannot be doubted that the natural and most economical form of transport for that area is not a railway, but a good system of roads converging on the waterways. Similarly, though possibly not so strikingly, the same influences are operating in other places to an extent that makes the necessity for the provision of a railway much less pressing than may have been the case before alternative means of transport were developed to the present stage. The position is much accentuated by the fact that construction costs of the railways have now reached a very high figure. In order that the full significance of this statement may be appreciated, the following tabulation is afforded of the cost of constructing the various sections of line mentioned therein : —

Construction Costs and Annual Loss of various Lines in New Zealand (exclusive of Rolling-stock).

In each case where the accounts for the line have been segregated so as to show the financial results of the section mentioned the amount of annual loss has also been stated. Construction Costs of the various Lines dealt with in this Report (exclusive of Rolling-stock). Construction Cost per Mile. £ Wharanui-Parnassus . . . . . . .. 36,276 Napier-Grisborne .. .. .. .. .. 37,049 Kawatiri-Inangahua .. .. .. .. 38,604 Westport-Inangahua .. .. .. .. 37,577 Waiotira-Dargaville .. .. .. .. 49,327 Okaihau-Rangiahua .. .. .. .. 51,099

24

Year completed. Construction Cost Annual Loss, including per Mile. Interest, 1931. £ £ Oxford and Eyreton Branches .. 1878 2,300 16 870 Rakaia-Methven .. .. 1885 3,300 3,'515 Southbridge .. .. .. 1875 3,600 4',688 Morrinsville-Rotorua .. .. 1894 5,600 Frankton-Thames .. .. 1898 6,000 Nelson-Glenhope .. .. 1913 6,600 42,263 Foxton-New Plymouth .. .. 1885 8,000 Palmerston North.-Napier .. 1891 8,300 Otago Central .. .. .. 1922 9,786 90,802 Catlins River .. .. .. 1915 10,800 24,961 Marton - Te Awamutu .. .. 1909 13,700