D.—2.

The operating earnings for the last three years for the North and South Island Main Lines and Branches separately per average mile open and per train-mile are as follow : —

EXPENDITURE. The total expenditure for the year ended 31st March, 1932, was £5,670,955, a decrease of £1,211,855 as compared with the previous year's figures. 1931-32. 1930-31. 1929-30. £ £ £ Expenditure on train operation .. 5,301,653 6,406,143 6,848,026 Subsidiary services .. .. 369,302 476,667 510,833 £5,670,955 £6,882,810 £7,358,859 The reduction in expenditure for the past year may be grouped under the following main headings : — £ Reductions in salaries and wages .. .. .. .. .. 384,897 Decrease in fuel costs due to reduced train-milage, &c. .. .. 144,974 Reductions of expenditure resulting from general operating economies . . 604,695 Reduction in provision for depreciation clue to writing-down of capital.. 77,289 £1,211,855

Operating Expenditure.

Maintenance of Way and Works. The expenditure for the year under this heading totalled £997,629, as compared with £1,150,329 for the previous year, a decrease of £152,700 (13-2 per cent.). Compared with the average expenditure for the five years ended 31st .March, 1930, the expenditure for the year under review represents a reduction of 11-2 per cent, on the average figure. Of the decrease of £152,700 the 10-per-cent. reduction in wages and salaries accounts for £67,660. Depreciation charges were £5,054 less than the previous year due to the reduction in capital account authorized by subsection (2) of section 20 of the Government Railways Amendment Act, 1931, and the balance of the decrease (£79,986) is due to general ecomony measures introduced to reduce expenditure. Maintenance of Signals and Electrical Appliances. The expenditure under this heading for the year totalled £107,584, an increase of £3,120 compared with the previous year. As from the Ist April, 1931, the annual charge for renewals was increased from £10,000 to £20,000 per annum on account of the former amount not being sufficient to make adequate provision for renewals. This increase is offset by the reduction in labour costs, which amounted to £8,376.

ii—D. 2.

IX

North Island Main Line and Branches. South Island Main Line and Branches. Year. ; — ; Per Average Mile ! m . Per Average Mile ,, m • ™-i ® Per Tram-mile. B Per Train-mile, open. open. £ d. £ d. 1932 .. .. .. 2,376 131-49 1,353 » 143-83 1931 .. .. .. 2,776 140-69 1,606 147-87 1930 .. .. .. 3,052 144-53 1,794 154-23

j Per Gent, of Per Cent, of ! ! PerCent. oi 1 1931-32. i Operating 1930-31. Operating 1929-30. 1 Operating Revenue. Revenue. Revenue. | I I I ! £ £ £ Maintenance—Way and works 997,629 17-23 1,150,329 16'97 1,146,014 15-33 Maintenance—Signals .. 107,584 1-86 104,464 1-54. 117,577 1-57 Maintenance—-Rolling-stock.. 1,270,585 21-94 1,502,698 22-16 1,680,919 22-49 Examination, lubrication, and 59,619 1-03 77,646 1-15 82,711 1-11 ligliting of vehicles Transportation —Locomotive 1,195,151 20-64 1,517,026 22-38 1,672,498 22-38 Transportation—Traffic .. 1,424,520 24-60 1,798,490 26-52 1,883,918 25-21 General charges .. .. 69,280 1-20 i 87,700 1-29 96,466 1-29 Superannuation subsidy .. 177,285 3-06 : 167,790 2-47 167,923 2-25 5,301,653 91-56 6,406,143 94-47 6,848,026 91-62 ■ 1 '