Goods and Livestock.

The quantity of goods and livestock carried was 769,649 tons and the goods revenue £484,000, representing increases of 20 per cent. and 16.35 per cent. respectively over last year's figures. This easily constitutes a record for the Dominion.

The most noteworthy increases were in butter (100 per cent.) cheese (30 per cent.); grain (32 per cent.); wool (22 per cent.); agricultural lime (20 per cent.); fertilizers (78 per cent.); sheep (9 per cent.); coal (10 per cent.); road metal (80 per cent.); benzine (58 per cent.); cement (38 per cent.); motor vehicles (92 per cent.); general cargo ex ships (27 per cent.); and native timber (19 per cent.).

The improvement in the output of native timber after a depression extending over the last two years is a hopeful sign of recovery in one of New Zealand's most important industries.

The handling of such a large increase in traffic at the busiest season of the year threw a very heavy strain on the resources of the Department. The difficulties were accentuated by the simultaneous arrival at several of our ports of many large vessels with bulk cargoes of products such as coal, phosphates and slag. Practically all these cargoes were dependent on railway facilities for quick despatch.

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At times like this there is need for a maximum of operating efficiency, and even with that it would not be sound economics to have so plentiful a supply of rolling-stock that every demand for wagons could be met immediately in such abnormal circumstances. A survey of the month's work shews that the railways met the demand in a manner that no other form of transport could hope to equal. There were, however, occasions on which it was found impossible to supply all orders for empty wagons in full without some measure of delay. The majority of our customers fully realised the position and co-operated with us in our efforts to ensure speedy transit and prompt discharge to the traffic. For this co-operation I desire to express the thanks of the Department and trust that the same spirit will be further extended at peak times of traffic handling. With the opportunity which the new workshops will afford for faster progress in the new wagon building programme, our equipment position next season should be very much better.

General Manager