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PROBLEMS OF EMPIRE. increased. Important as the above causes have been in contributing to the improved position of the New South Wales railways, nothing has probably contributed more to this result than the increased efficiency of the staff, and of the labour employed. Mr. Eddy has striven hard to create amongst the New South Wales railway employés the same esprit de corps which exists amongst the employés of his old service, the London and North-Western Railway Company in England, and there is good evidence that his efforts have been attended with success. The average rates of pay of nearly every class of employés in the New South Wales railways were higher in 1894 than in 1888, which may be directly attributed to the increased efficiency of the labour.

The following are the principal statistics of the South Australian railways (excluding the Palmerston line) in 1887 and 1896:—

Of the miles at present open for traffic 493 are of the 5 ft. 3 in. gauge, 1229 of the 3 ft. 6 in. gauge. Of the broad gauge lines, the Midland system cost 14,000l. a mile, the Southern system cost 9700l. a mile. The narrow gauge lines have cost from 4300l. (South-Eastern system) to 5400l. (Northern system). 226