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AUSTRALIAN RAILWAYS. built for heavy traffic the capital cost per mile of the New South Wales railways should become very materially reduced.

New South Wales is not without its burden of unprofitable lines. No less than 1117 miles of line fail to earn their interest charges, though with the exception of the connection between Murrumburrah and Blayney, and that part of the Northern Railway between Armidale and the Queensland border, all lines pay their working expenses. The capital cost of the lines at present unprofitable amounts to 13,300,000l. The loss on the through line to Queensland should be materially reduced were a uniform gauge adopted, giving better facilities for traffic. The opening of the new sulphide works at Illawarra should make a great difference to the receipts on the line from Sydney to Nowra, and many of the at present unprofitable branches may be expected to pay as the country becomes settled up.

The principal causes which have led to the improved position of the railways since they came under the present management are: (1) Improvements in the permanent way by a reduction of gradients and curves. (2) Use of the best materials in the repair of the permanent way, and consequent reduced cost of maintenance. (3) Use of much more powerful locomotives and better rolling stock. A very powerful engine has recently been designed in the Colony, embodying the best features of English and American locomotives. The Commissioners estimate that the saving per annum by the reduction of gradients, and the introduction of more powerful locomotives amounts already to 100,000l., and that as the traffic increases in volume, so will the annual saving be 225