Speaking of the working railways, be said that since the people had resumed control, the public demands were met in a manner which gave general satisfaction. The reduction of rates and freights amounted to about £300,000 this year. The per centage of earnings on the cost was £3 19/6 , the actual profits £599,389, as against £571,583 for the previous year. The year’s revenue was £1,727,246, and the expenditure £1,127,847. in crease of revenue was £005,;>55, and the increase of expenditure £427,144. The Government intended to make further remissions. Notwithstanding the remission, the Post and Telegraph results were most satisfactory. Telegrams increased 94 per cent; the number of offices was 80, and telephone connections 215. The revenue of the Department for 1900-1 was £503,181, and the expen diture £153,767. He referred to the establishment of the Pacific cable, and the benefit to the Empire and the colonies of an “ all red ” line, and said this was the first time Canada would be joined with the colonies. He spoke in favour of a State cable between New Zealand and Australia, and explained his action a that matter.
He referred to the almost impercept ible involuntary drawing closer of the bonds with the Mother Country, and the change in the policy of Imperial statesmen towards the Colony. He thought the time was ripe for a confer ence in respect to Impi rial affairs in South Africa and the East, and said that the advice and co-operation of the Colonies would be an advantage to the Home Government.
