Coaching and Goods Traffic.

The following table shows the number of passengers carried on the lines of the state during the year 1881, and for each of the last ten years, with the receipts from coaching traffic and the average receipts per journey :

The number of passengers carried on the railways of Victoria reached its maximum in 1890, when no less than 58,951,796 persons made use of the lines. The reaction following on the banking crises of 1893 considerably affected the traffic, and in 1895 the number of passengers was reduced to 40,210,733; a gradual improvement has since, however, been manifest in the returns. Victoria occupies the leading position among the states as regards the number of passengers carried, the latest figures being as follow:-New South Wales, 30,885,214; Victoria, 57,465,077; Queensland, 4,636,174; South Australia, including the Northern Territory, 9,500,977; Western Australia, 8,158,299; Tasmania, 777,445; and New Zealand, 7,356,136. The superiority of the Victorian figures results from the large number of passengers carried on the suburban railways, the Melbourne system effectively serving the population within a distance of twenty miles from the centre, and carrying upwards of 90 per cent. of the total passengers. The magnitude of the suburban traffic is evidenced by the fact that the average receipts per journey during the last year are shown to be 6.89d., as against 10.91d. in New South Wales; 26.59d. in Queensland; 9·41d. in South Australia, including Northern Territory; 12.65d. in Western Australia; 24.18d. in Tasmania; and 18·78d. in New Zealand.

The amount of goods and live stock tonnage in 1881, and for each of the ten years from 1893 to 1902, with the earnings therefrom, is shown in the following table :

The table indicates a gradual increase in the tonnage carried and earnings therefrom during the last seven years. The figures for 1902 must be considered highly satisfactory, especially when it is remembered that the harvest conditions generally were not so good as in the preceding year. Particulars of the subdivision of the tonnage of goods and live stock into a general classification are not available, and no information is furnished that will admit of a comparison being made in order to determine how far the cost of carriage per mile has been reduced during the period under review.

QUEENSLAND.

The progress of railway construction in Queensland for the first ten years after the opening of the Ipswich to Grandchester line was somewhat slow, only 268 miles having been constructed. In the decade ending in 1885, more energy was displayed, inasmuch as a further length of 1,167 miles was constructed, and during the quinquennial periods ending in 1890 and 1895, further lengths of 712 and 250 miles were constructed. The length of line open on 30th June, 1902, was 2,801 miles, and the amount expended thereon for construction and equipment was £20,119,143, or at the rate of £7,182 per mile.

The railways of the state may be grouped into three divisions, comprising eight systems. The southern division extends from Brisbane to Wallangarra in a southerly direction, to Cunnamulla in a westerly direction, and to Gladstone northerly along the coast, and has fifteen. branch lines connected with it. The central division extends from Archer Park to Longreach, and has five branch lines connected with it. The northern division comprises the line from Mackay to Eton and Mirani; the line from Bowen to Wangaratta; the line from Townsville

to Winton, with a branch to Ravenswood; the line from Cairns to Mareeba; the line from Cooktown to Laura; and the line from Normanton to Croydon.

For many years the construction, maintenance, and control of the railways were carried out by a branch of the Public Works Office, and subsequently by a separate Ministerial Department with a Secretary responsible to Parliament and administering the details of the office in a manner similar to any other Crown Minister. The "Railways Act of 1888," however, while leaving the Minister in charge of the Department, vested the construction, management, and control of all Government railways in three Commissioners, of whom one was to be Chief Commissioner. The number was subsequently reduced to two, and later a single commissioner was appointed holding the authority formerly vested in the three. In undertaking railway construction the State is guided by other considerations than those which would direct the action of private investors, and is content, for a time at least, to recoup the expenditure in an indirect form. The disastrous result of the continued drought has operated against successful management during recent years, and in consequence of the fact that the rate of interest returned on capital expenditure during the past two years does not compare favourably with the previous years, a policy of stringent economy is to be pursued in the management of the railways, and the rates and fares have been increased with the object of reducing the deficit.

Revenue and Working Expenses.

The net sum available to meet interest charges during the last decennial period is shown in the following table :—

With the exception of the last two years the foregoing table shows a gradual tendency for earnings to increase, but there have been considerable fluctuations in the proportion of working expenses to gross earnings. The net earnings for the year ended 30th June, 1900, were 35.22 per cent. of the total earnings, as against 36-33 per cent. when the railways were placed under their present control. It will be observed that the result secured for that year is considerably lower than those of the preceding two years, and is due to the fact that the railways were compelled to carry very large numbers of starving stock and large quantities of fodder at unremunerative rates. There were also heavy disbursements to replace and increase the stock of locomotives, and in carrying out works which, though improving the equipment of the railways and ensuring safe running, have not been of a reproductive character, while during the year substantial increases in pay were conceded to all classes of railway employees. There was consequently a large increase in expenditure which was not accompanied by a corresponding improvement in the earnings. For the year ended 30th June, 1901, the revenue from passenger traffic showed a substantial increase; the decrease in earnings shown in the preceding table was entirely due to the loss of live stock by drought and consequent stoppage of station improvements, and to the necessity of carrying starving stock and fodder at merely nominal rates. The net earnings for the year were thus reduced to 19.66 per cent. of the total earnings. A slight improvement in the net earnings was manifested in the year ended 30th June, 1902, the percentage gained being 28.18 of the total earnings. Despite a shrinkage in the traffic the receipts show a slight improvement consequent on the increase of rates and fares. Working expenses have been curtailed by a reduction in the train mileage, and by the exercise of stringent economy in administration, and with the return of favourable seasons it is hoped that more satisfactory results will be secured.

An analysis of the working expenses of the Queensland railways for the ten years, 1893-1902, is given below. Taking the first year with the last it will be seen that there has been a substantial increase in the total cost, as well as in the rate per train mile and per mile of line open. In 1899 the expenditure per train mile had been reduced to 32:35d., as compared with 40.82d. in 1893 and 42·05d. in 1902. There can be no doubt that the expenditure for 1899 had been reduced below the point of safety and some services had been starved, and this necesitated in the following years an abnormal expenditure in regard to improvements of the locomotive, carriage and waggon stock, and for bringing the equipment generally up to a better standard to ensure the safe working of the lines. In 1901 there was a considerable amount of money expended on relaying and other heavy works, similar expenditure, or, at least, expenditure on so large a scale, will not, of course, be needed for some little time.