There have been pleasing indications during the month just passed of a definite improvement in both our operating efficiency and general financial position, to which both the public and staff have contributed.

Although at the time of writing complete particulars are not available for the four-weekly period ended 18th August, it is clear that the revenue was better by approximately £29,000 than for the corresponding period last year.

This marked improvement is accounted for partly by the Spring vacation excursions, the first four days of which come into this period, and partly by the better patronage afforded our goods services.

This fine result, following upon good preparation work by the staff and cordial support from the public, is particularly satisfactory, succeeding, as it does, the substantial increase both in volume of traffic and revenue for the July period. An analysis of the July figures shows that while the number of passengers travelling on ordinary tickets decreased by 22,000 the number of season ticket passengers increased by 34,000.

The goods traffic increased by 35,000 tons and the goods revenue by £21,000. Substantial increases were shown in livestock, meat, wool, grain and potatoes, fruit, dairy produce, fodder, agricultural lime, coal, road metal, timber and benzine, whilst the traffic in imported merchandise, flax and flax fibre, and cement decreased. The principal sectional goods revenue increases were:—

Operating efficiency, measured in gross and net ton miles of traffic conveyed per train hour, improved in practically all districts, specially good results being achieved in the Christchurch and Wellington Districts and on the Westport Section, where the increases in net ton miles per train hour were 19 per cent., 10 per cent. and 13 per cent. respectively.

From enquiry into the running of particular services and a general survey of the work, I think there is no doubt that the introduction of Train Control methods in the Christchurch and Wellington Districts accounts principally for this improvement in train handling.

Fuel Economy.

Another noteworthy feature is that since the commencement of the current financial year a saving of £11,000 has been effected in the railway fuel bill for the Dominion, mainly as a result of using a larger proportion of native soft coal on locomotives. This is an important feature in the measures adopted to help in reducing operating costs, and I would ask the Locomotive Running staff to give the cost factor due consideration when working with this class of fuel. When it is realised how important is the economy thus effected, the staff concerned will, I feel sure, have an increasingly friendly feeling towards the soft coals of New Zealand.

The Outlook For The Future.

I feel justified in taking a hopeful outlook regarding the future. The increase in the flocks of sheep, the remarkable expansion in the quantity of fertilizers distributed to farmers, the tendency towards stabilization of prices for practically page 7 all our primary products at a reasonable level, and the general improved financial position of the Dominion, promise for the coming season a record in the volume and the value of production.

There is every reason to believe that the Railways will share largely in this, and be called upon to handle very heavy traffic under somewhat difficult conditions, inasmuch as many of our improved transport facilities now being provided will not be completed and available for use for some time.

I have every confidence, however, in the capacity of all branches of the service to meet the situation and enable the Department to render the maximum of service to the users of the Railways and the Dominion as a whole.