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AUSTRALIAN RAILWAYS. the intervening years—the principal reason, of course, being the construction of new and unprofitable lines. For the five years 1888–92 inclusive, the net return on capital was never less than 4 per cent.; in 1890 it was 5 per cent.; in 1891 it was 5&middot;3 per cent. The returns for 1895–96 were affected by the unfavourable season. The present season is even worse. Stock has suffered severely, and the wheat crop has almost been ruined by drought. The coaching traffic, as in New South Wales and Victoria, shows a satisfactory increase, and helps to reduce the loss. The cost of maintenance, renewal of way works, &c., for both gauges has been reduced from 85l. per mile in 1892–93 to 71l. per mile in 1895–96. For the broad gauge the reduction is from 141l. to 104l. per mile, for the narrow gauge from 58l. to 56l. per mile.

There are 3600 employés on the South Australian railways. Short time was worked by traffic and locomotive running employés for nearly four years, and was only abolished at the close of the year 1895–96. Short time still continues for the men employed in the workshops. As there is no immediate prospect of there being sufficient work to employ these men full time, the Commissioner recommends that the numbers shall be adjusted to the requirements. 'The continuance of short time,' he says, 'is demoralising to the men, and does not tend to economical working.' The locomotive engineer's report is even stronger on this point. He says: 'The system of keeping men on short time for several years tends to demoralise, engenders a spirit of dissatisfaction and discontent in the minds of those called upon to suffer, and it is not to be wondered at that work costs more to execute under such conditions, 229