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AUSTRALIAN RAILWAYS. Though 650 more miles of line were open at the end of last year than were open in 1890, the gross revenue was 800,000l. less, and the deficit to be made good from the general revenue had risen to nearly 600,000l. This is constituting a heavy burden on the resources of the Colony, and I have already mentioned the chief cause, viz., the construction of new and unprofitable lines.

That unprofitable lines are not the only cause of the deficit on the Victorian railways was brought out very strongly in the Report of the Railway Inquiry Board of 1895. The Report speaks of the whole service as disorganized if not demoralised. Each branch was independent of higher control, the authority of the administrative officers was weak, political influence was contributing to destroy discipline, the salaries of officers in responsible positions were low, while the wages paid to artisans and labourers were higher than those ruling outside the Department. The abuse of the system of free passes, the successful competition of teamsters for the carriage of goods from Ballarat, Bendigo, and Goulburn Valley to Melbourne, and the want of proper accommodation for travellers, are other points alluded to in the Report. Steps have already been taken to remedy this unsatisfactory state of things. Mr. Mathieson, since he entered upon his duties last July, has been occupied in the classification and general regrading of the staff, in the revision of fares and freights, and in the reorganization of the stores and other branches of the service. Better passenger vehicles are being provided, and I speak from experience when I say that on some of the lines the carriages are as good as can be wished for. Provided that political 231