D.—2.

Passengers. An analysis of the passenger revenue is as follows :—

A review of the passenger revenue was made during the year and after a thorough examination of the position it was, as already mentioned in this report, decided to reduce the ordinary fares. Accordingly, as from the 20th September, 1931, the ordinary passenger fares at single rates were reduced by 20 per cent., and for return tickets the holiday-excursion scale was adopted, representing a reduction of approximately 22| per cent, on the return fares. Prior to this reduction the passenger journeys and revenue at ordinary rates were declining rapidly, and as the following table shows the decline in journeys has now been arrested. The journeys and revenue for ordinary and holiday-excursion fares for the three years ended 31st March, 1930, have been taken as the index figure 100, and in order to allow for the variation in the dates of the Easter holidays the returns for the March and April periods have been amalgamated under one heading.

From a study of the above table it will be noted that the passenger journeys were falling during the earlier portion of 1931 and the decline became intensified from the middle of that year and continued so until August, 1932, when as a result of the decrease in fares the position began to improve. Taking all the circumstances of the present economic depression into consideration, the position so far as revenue is concerned may be regarded as reasonably satisfactory. As evidence of the reduced spending-power of the community first-class passenger journeys and revenue declined by 30-55 per cent, and 37-95 per cent, respectively, while second-class passenger journeys and revenue declined by 7-93 per cent, and 20-39 per cent, respectively. The special Sunday fares in various areas were again popular with the travelling public, and the following figures show that these services have been meeting a very substantial demand.

XII

j 1932. 1931. I Variation. Per Cent. , i I I ; Passenger journeys— Ordinary.. .. .. .. 6,503,566 7,265,912 -762,346 10-49 Season .. .. .. .. 12,652,034 15,521,144 [—2,869,110 18-49 Total .. .. .. 19,155,600 22,787,056 -3,631,456 15-94 Revenue— £ £ £ Ordinary.. .. .. .. 1,138,940 1,531,376 —392,436 25-63 Season .. .. .. .. 200,649 247,349 —46,700 18-88 Total .. .. .. 1,339,589 1,778,725 -439,136 24-69 Passenger train-miles .. .. 4,440,491 4,874,650 —434,159 8-91 Revenue— Per mile of line .. .. .. £415 £539 -£124 23-00 Per train-mile .. .. .. 72-40d. 87-58d. —15-18d. 17-50

Journeys. Revenue. Average Three Average Three Years, 1928, 1931. 1932. Years, 1928, 1931. 1932. 1929, 1930. 1929, 1930. March and April .. .. 100 83 56 100 93 65 May .. .. .. 100 85 59 100 93 67 June .. .. .. 100 81 53 100 86 59 July .. .. .. 100 83 52 100 88 57 August .. .. .. 100 80 51 100 82 55 September .. .. 100 85 57 100 88 64 October . . 100 76 60 100 77 52 November .. .. 100 74 65 100 78 53 December .. .. 100 73 69 100 81 55 January . , .. .. 100 69 61 100 77 57 January . . .. .. 100 72 73 100 81 64 February .. .. 100 65 67 100 70 53

rea 1 Total Number of Total Number of Passengers, 1932. Passengers, 1931. Auckland-Hamilton .. .. .. .. 36,078 40,535 Wellington - Palmerston North. .. .. 47,822 47,833 Christchurch-Timaru .. .. .. .. 55,257 , 49,349 Dunedin-Oamaru .. .. .. .. 32,133 33,749