Many improvements.

During the year many improvements have been introduced such as the provision of Night Expresses in the South Island, additional passenger trains in the Taranaki and Hawke's Bay Districts, and luggage checking from and to the home at the principal centres. The expansion of road services, while to some extent duplicating rail facilities, has enabled certain economies to be effected in train operating, while helping to increase the total number of passengers carried by the Railway Department. The benefit obtained from widening the scope of our low rate passenger fares has been two-fold. Although more passengers have had to be carried to secure an equivalent return of revenue, the increase in numbers has been sufficient not only to supply this, but also to counteract largely the general tendency in recent years towards a falling passenger revenue.

The further advantage is that our action in this direction has enabled us to give a still greater measure of service to the community.

We have received many appreciative references—both written and verbal—to this aspect of our efforts. These show that we have improved the prestige of our system—a position that must have a stimulating effect on our business generally.