The turn for the better in railway revenue, predicted in my last message, is borne out by the completed figures for the August period and the preliminary returns to the 15th September. The September period shows an increase in traffic revenue of approximately £20,000.

An analysis of the August figures indicates that, for the first time in many months, the number of “ordinary” passengers carried increased, whilst the ordinary passenger revenue increased by £11,000. Season ticket passengers increased by no less than 72,000 and the revenue therefrom by £500.

The increase in “ordinary” passengers was due mainly to the popularity of our Spring Vacation excursions. The indications are that the Department's policy of granting cheap excursion tickets for an extended period during the autumn and spring school vacations, catering as it also does for a large body of people who are unable to take advantage of the Christmas and Easter excursions, will become still more popular as its advantages become more widely known.

Livestock traffic showed an abnormal increase. As the result of the development of the boneless veal industry, the number of cattle and calves carried was 93 per cent. higher than last year; while the traffic in sheep and pigs increased by 31 per cent. Traffic increases were also recorded in grain and potatoes, agricultural seeds, fresh meat, firewood, agricultural lime and manures, benzine and motor cars. Flax and flax fibre, native brown coal and imported coal, imported timber, cement and frozen meat continue to show decreases, but there are definite signs that the decrease in native timber traffic has been arrested.

Goods revenue increased by £17,000 or 6 per cent.; the North Island Main Lines showed an improvement of 3 per cent., the South Island Main Lines 10 per cent., and Nelson section 23 per cent.