ANNUAL REPORT OF THE AUCKLAND TRAMWAY COMPANY.

Auckland Star, Volume XLI, Issue 143, 18 June 1910, Page 7

ANNUAL REPORT OF THE AUCKLAND TRAMWAY COMPANY.

fTo the Editor.)' Sir, —When one reads of the enormous profits made annually by the above company, one realises the fearful mistake made by the Council in delegating their rights to the company, insteal of doing as the other cities of New Zealand have done, viz., kept it in their own hands. This year, after allowing £15,000 for depreciation, and paying some £1500 for rates and license fees, and £30,135 for repairs and maintenance, they have a net profit of £39,044. This, of course, the Council would have earned if the tramways had been constructed and managed as well by them as the company has managed it, and would thus have been in a position, after paying interest upon construction, to relieve the ratepayers to some extent from the heavy burden of local taxation. In the United Kingdom the local authorities last year paid in relief of rates from tramway profits the magnificent sum of _330,225, and in addition to this, the municipal position was improved financially by the repayment out of revenue of money borrowed to the extent of £964,010, after providing for depreciation, the average amount allowed being more than double that allowed by companies.

I do not know what position our Council has taken in regard to the allowance claimed for depreciation; both this matter and that of maintenance are vital questions, because for every thousand pounds set apart or used for these objects means a reduction of the amount to be paid to the Council as'their share of the profits by £100.; they, the- Council, being entitled to 10 cent of the profits available for distribution after the first £5000 made.

In the Order-in-Coimcil and Deed of Delegation I understand that provision is made for the tram Tails to be laid upon iron, steel, or wood sleepers resting upon concrete blocks, to the satisfaction of the Engineer. The placing of these sleepers under the rails was not, I am informed, insisted upon at the time, with the result that for the time toeing an immense saving , was made by the company; but the use of sleepers is now found to be an absolute necessity, and so the work- of placing sleepers under the rails at a greatly increased' cost is being done, as witness Pitt-street at the present moment. And it is said that part of the £30,000 spent last year was spent in this special kind of work out of the profits made. If this be so, then the ratepayers are making a serious loss in their share of profits which would have come to them had the conditions of the Order-in-Council been enforced.

I know it is impossible to remedy to the full the mistakes of the past in connection with this matter; but I do trust that suburban boroughs that~have not been foolish enough to give options to those seeking them, will refrain from so doing; but if for any reason they deem' it desirable to give them, let them bo on the lines of those at Toronto in Canada, where the share of profit coming to the local authorities i' 3 a large percentage Upon the gross takings and not upon the net results, and the right. to use the streets shall.be at per mile of the streets used.' There: the charge per annum is £320 peT mile for double tracks and, further, thafc all the giant, that can

be made in the borough shall be so made. Seeing the serious mistake that we have made in granting this concession, let us hope that the Council, through their auditors, will watch with extreme vigilance the claims of the company for depreciation and maintenance, so that the ratepayers may get every shilling that they are entitled to.—l am, etc_ VIGILANT, i