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ANNUAL REPORT OF THE GENERAL MANAGER OF THE NEW ZEALAND* GOVERNMENT RAILWAYS New Zealand Government Railways Department, General Manager's Office, Wellington, 2nd September, 1949. The Hon. the Minister op Railways. Sir, — I have the honour to submit the annual report on the working of theNew Zealand Railways for the financial year ended 31st March, 1949.

WORKING RESULT (Whole Undertaking)

REVENUE The gross revenue exceeded the record of the previous year by £1,526,856. Theincrease in operating revenue amounted to £1,374,602, due principally to the benefit of the tariff increase, which is estimated to have brought in an additional £1,085,820. The total passenger revenue was £2,759,478, which was £71,711 higher than the previous year. The passenger journeys (ordinary) decreased by 403,368, or 4-97 per cent., due tec decreased Armed Service traffic, while journeys on season tickets increased by 684,024, or 3-85 per cent. The revenue from parcels, luggage, and mails has shown an increase of £7,227, the result, of tariff increases. Goods revenue has shown an encouraging increase of £1,260,385, or 12-02 per cent., reaching a new record of £11,747,129. Of this amount, £891,050 has been estimated to be due to tariff increase and £369,335 to additional traffic. The goods tonnage moved during the year amounted to 9,666,130 tons, being 142,087 tons in excess of the previous year, which was a record achievement.

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1 1949. 1948. Variation, 1949 with 1948. £ £ £ Per Cent. Revenue 18,597,728 17,070,872 + 1,526,856 8.94 Expenditure 19,700,594 17,710,897 + 1,989,697 11.23 Loss 1402,866* 640,025* +462,841 Return on average capital inNil Nil vested in open lines, per cent. Interest charges 2,710,318 3,030,033 -319,715 10.55 Excess of interest charges over 2,710,318 3,030,033 -319,715 10.55 net revenue * Loss recovered from vote " Economic Stabilization."