TRAMWAY FINANCE

Press, Volume XLIX, Issue 14658, 6 May 1913, Page 5

TRAMWAY FINANCE

DISCUSSION AT THE'BOARD,

Tho statement made by the chairman of the Tramway Board (Mr Gco. T. Booth) at the meeting of the Board held on April 21st. giving the financial results of tho Board's operations for tho year, came up for discussion at yesterday's meeting of the Board.

Mr S. A. Staples asked if the chairman's statement ought to be considered as a balance-sheet and discussed as such. Ho suggested that the discussion should be deferred till ' the balance-sheet was before them-

Tho Chairman said that it was not ready yet—it was being printed.

Mr C. M. Gray said that as he would bo out of town after the next meeting of the Board, the present was the only opportunity he would have of discussing the Board's financial position; in addition the chairman's statement had been publicly discussed. Whilst ho was a believer in tho careful administration of the Board's affairs he did not think it Rood policy to minimise the result of tho Board's work. They were elected to manage tho trahnvay system and not necessarily to make a large profit. Despite the non-paying lines, and the recent extensions they had done fairly well. As to the statement by tho Chairman—that thero were two Rasters in tho Board's last year, and there would bo nono in its present year •— ho did not think that tho point was one that needed to be'emphasised or dwelt on too much. * Neither Bicearton nor " Christchurch depended on Easter. Given fine weather for the Grand National and for Carnival Weeks tho loss of Easter would not be very great. *After referring to the figures, as given in the statement, Mr Gray said that the Board's position could be put in a way approximating to a private company's balance-sheet. The paid up capital was £551,200 : the gross earnings tor tho year £134.282; deduct for oporatins expenses £79,750 and a balance remained of £54.532. Out of this "tho directors," had set aside the following amounts:—To depreciation fund £12.124. to renewal fund £12.124, to fire and accident reserve £1343—a total of £25,531 leaving a balance of £28,941 out of which "the directors" proposed to pay a dividend at tho rate of 5 per ci-nt per annum, which would absorb £27,560, and to carry forward to next year £1381. Tho profit for tho year was equal to 5i per cent.— a return "tho directors," regarded as eminently satisfactory, considering the flatness of tho district and the almost universal prevalence of tho bicycle and motor-car habit. Tho increased net earnings for tho year totalled £4556; and tho increased contributions to tho depreciation, renewals, and fire and accident and sinking funds totalled £3487. As to tho preliminary expenses (£44,109 15s 6d) during the past seven years the sum of £30,331 17s was paid off, and tho balance unpaid off was £13,867 18s Gd. If they continued their practice of carrying forward the amount of their yearly surplus to the credit of that account tho debit balance would soon disappear. Ho was hopeful as to the future and predicted somo increases in revenue.

Mr 1). Sykes pointed out some apparent discrepancies between tho figures in the chairman's statement and tho General Manager's monthly statement. If tho Board had not had any special Easter traffic last year the month of March wouJd have* "been a good one, as tho Chapman-Alexander Alission ( was responsible far a great amount of increased traffic. In his opinion the increase of cash fares was due to tho natural growth of the town, and if the Board had left the concession and seaside tickets alone, the increase would have equalled that of tho previous year. (A member: ".Rubbish.") The sooner the old rates ft'ero reverted to tho better it would Jbe for the Board's revenue. Ho was not as hopeful as Mr Gray regarding ithe growth of traffic this year, as, the building boom on the outskirts of the city had received a temporary check. They should hold what they had, and to make sure of that the old rates for I concession and seaside tickets should ibe reverted to at onco. The more encouragement they gave to people to use the cars, the bigger their revenue I would be. i

Mr A. W. Beaven suggested that i they should Wait for tho complete j figures before discussing the position. S. A. Staples thought they were going tho wrong way about things, although he recognised Mr Gray's position. The chairman ought not to have made a statement till the balancesheet was ready. The chairman: There would have j been some complaints if no information I was given. .

Mr Staples moved, and Mr Beaven seconded: —"That the discussion be postponed till the balance-sheet is in members' hands."

Mr Peai'ce pointed out that the members of the Board had almost forced the submission of the chairman's statement. For sometime, ho said, they had been considering the question of raising fares, and it was decided to hold the matter over till the close of tho financial year. ■ # The Hon. J. Barr thought they should wait till the balance-sheet was presented; then the apparent discrepancies would be explained. " Tho Chairman said that he felt that ho had done the right thing in informing the Board of the exact position of affairs for tho past year. He was surprised that discussion should have taktm place at this point. The motion to defer the discussion was agreed to.