Passengers.

The Department has had no effective competition in passenger traffic over long distances. For intermediate distances competition has been vigorous because of certain advantages possessed by the smaller unit in the matter of point-to-point traffic. In suburban traffic the Department has provided extremely low rates for the transport of workers and season-ticket holders, thus relieving congestion in the cities and making possible much suburban settlement through the provision of lower rates than could be introduced by any other form of transport. In both intermediate and suburban types of traffic, road competitors have left the bulk traffic, such as that developing at excursion periods or at peak hours in suburban areas, to be carried at the cheap rates by the railways, but have intercepted the more remunerative traffic. In this they have been aided by heavy public expenditure upon roads which has reduced the operating costs of such competitors. The cheapness of railway suburban transport is indicated by the fact that the average amount received by the Department for each suburban passenger journey is slightly less than 2 3/4d. As the suburban areas extend twenty miles or more from the principal cities, the cheapness of this service is manifest.