THE FAMILIAR UNKNOWN.

Press, Volume XLIX, Issue 14823, 14 November 1913, Page 7

THE FAMILIAR UNKNOWN.

» "The most fwniliw object is often th< l«e»t knowr.." (Br "Tux Watchma*.") WBITTKN 1"OB "iffit PRKSS. ') No. So. THE TRAMWAY FRANCHISES.

Tho three companies of which I tokl you on Wednesday, and the other companies which they had swallowed at different times, all laid and worked their systems under "concessions' , secured from the various local bodies through whose districts lines passed, or wero-to have passed had they all been constructed. These were equivalent to the ''Street Franchises" of which we hear j;o much in connexion with American agitations as to municipal "graft," and which appear there to have given rise to an extraordinary amount of bribery and corruption. They do not seem to have dono those who secured them legitimately a great amount of good here. They wero issued,for various periods and under various conditions. For instance, tho lino from the Square as far as Devou road, Sydenham, was constructed under one "concession." Another "concession" permitted construction from Devon road up to tho boundary of the Heathcoto itoad Board territory, tttiil another (issued "by tiio Jattor body) authorised the. bit or lino ou to Dyor's Tass road. Thus tho lino from town to tho baso of tho Jdills was built under three separate sets of concessions, and as these concessions did not all expire ou the same date, it was quite conceivable that on any line running through two or three local districts a middle section might lose its privilege of running while its end sections, completely isolated, retained theirs, so that nothing short of an aeroplane connexion would do them any good. In this particular case tho central area, controlled by tho Christchurch Tramway Company, was under a deed of award made by Sir James Prendercast as Chief Justice, and which expired in Septembor, 1904. Tho awardhad been procured becauso on the expiry of the past 21 yoars franchises the municipalities wero not prepared to take shares over. So tho periods were extended by tho Chief Justice.. In 1900 tho question of what should happen when tho extension expired and- the central division would revert to the municipalities, began to be discussed. That was how the agitation for the municipalisatiou of_ the tramways commenced.

THE ARGUMENT OF AUCKLAND. | Tho Auckland Tramway Company, of j British Electric Traction Company s creation, had just been formed. Its promoters wero very anxious to get Christchurch an sinhlar terms. Though tLo Christchurch Tramway Company, w,bich had takon over its lilies on a low capitalisation, was paying, tho rest of tho companies had had. such a bad run that a considerable body of opinion favoured tho responsibility of extension being left to private enterprise rather than that the citizens should bo saddled with it. This view was emphasised by the contemplation of the largo sum which would bo required to electrify the systems and bring them generally up-to-date. So the Auckland promoters found a considerable amount of support, some of it ih quarters where it would not be ' forthcoming now that there has been time to get experience of private working in Auckland, as against , municipal working hero. Greater Ghristchurch had not then advanced to. tho stago it has sinco achieved, so that thoro wero ; mammore local bodi*s with a say "in tho matter, and a series'of conferences was held. At these tho advocates of municipalisation triumphed. Included among these wore Mr Rollett (then MaYor of Sumner), tho Hon. H. F. Wigram, M.L.C, Mr T H. Davoy, M.P. (then Mayor of St. Albans), Cr. C. M. Gray (of tho City Council), and tho late Mr A. B. Morgan (representing the Avon Road Board). At one stage the late Mr T. E. Taylor addressed a great meeting in the Canterbury Hall in support of the municipalisation policy. WHO SHOULD CONTROL? The principle of municipalisation having been decided upon, the next question was whether tho City Council should control the system. Some of the suburban municipalities did not like this idea, and the result was the constitution of the Christchurdi Tramway Board under the Act in 1902. That is the body which has developed an,d controlled the system ever sinco, ariS extended it from the 212 miles it took over to tho 53 routo miles an daily use now.

THE TRAMWAYS BOARD. The first Board was elected on January 21st, 1903, and consisted of tbo Hon. H. F. . Wigram, Messrs Wm. Reeco. Goo. G. Stead, and A. W. Bcaven, representing the combined districts of "old Christchurch City. Sydenham, and St. Albans. Linwood returned Mr Herbert Poarco; Now Brighton-Avon, Mr A. B. Morgan; Mr Geo. Scott: and Riccarton-Spreydon-Hals-well, Mr Frederick Weyniottth. 3£r Wigram resigned in 1901, and Mr G. T. Booth, who succeeded him, resigned less than a year later, and was succeeded by Mr C. M. Gray. Mr Morgan died in January; 1906, and his place was taken by Mr C. H. Winuy (now Mayor of New Brighton). An amending Act constituted tho Riccarton-Sock-burn district in 1903 to construct tbo lino to llicearton. hud Mr J. J. Dougall was elected by the now district. To-day the Board consists of Messrs G. T. Booth, A. W. Beaven, Dr. Thaeker, and C. 31. Gray (Christ-chnrch-Sydenham-St. Albans), J. A. Flesher (New Brighton-Avon), Hon. J. Barr (Woolston. etc.), Herbert Pcarce (Linwood). David Sykes (Ricr-arton-Sproydon-Halswell), and S. A. Staples 'Jliccarton-Sockburn).

In the interim Messrs "Walter Hill and John Richardson have served on the Board, which, more than most local governing concerns, has had comparatively few changes of membership in its ton and a halt years of existence. This, despite the fact that thero havo been contested elections on almost every occasion, and that the roll, which had 27,771 names on it at last fli.-ction-, is the largest in the Dominion. Tim qualification for enrolment, on this roll (which includes the wife or husband of tho person qualified) extends to ratepayers, freehold or residential, the residential qualification requiring the payment of rent of not -less than X'lo per year.

."GETTING A MOVE ON." ,

The fii-st Tramway Board didn't let tho grow on it« tracks. It was elected on January 31st, IUO3. It. met on the 29th, and elected Mr R«.«e, who has become known as the "l<VitMer" of the Cbristchurch system, first chairman, and .Mr Wigram vice-chairman. At its next mooting, fourteen days later. Mr Frank Thompson was appointed secretary, and Mr Recce had secured by cable the services (as engineer) of Mr F. H. Chamberlain, a well - known expert-, who was on the ere of eailing from Sydney for America. "With similar promptitude the conversion to ek-ctricity was taken in hand. To secure competition and local tenderers it was cat up into from fifteen to twenty sections, and a local concern, formed for the purpose, tho Now Zealand Electrical Construction Company,

floated by the lato~Mr T. E. Tayktf, secured all tho contracts ngainst outside cotntMJtitioM. The oontractdng company had Messrs Goo. Bowron, J. L Scott, Gco. Laurenson. ami others iv it, and they duly carried out the responsibilities they had undertaken. PAYING THE PRICE. Wbilw all this was going on, the pi-ico to bo paid the existing companies was being settled by arEitration. The result was that £40.359 was paid, including £18,738, paid by tho public, for the. "goodwill" of its own creation granted in tho form of concessions issued'on its own behalf by its own public bodies—quit* legitimately, of couis*. Tho rest was for tho "gornjr. concerns"— decidedly "gom-^ , in some instances, and tho rolling stock. Of tho rolling stock then taken over, tho ■ old steam locomotives and tho old ■traitors arc still found useful work. Hero is how th* , award was mad© up :•=— Award, eic Goodwill. £ X chmtcw, n.» oio io o 10 0 *&« oJgT tfiST 0 0 3,891 0 « Chriatchurch. City Council (Corporation Line) .- l,» oOβ — City «d&zbuib« _ 3 J40.35& 9 S JEIB,7JS 11 * - That mtvv bo taken as what tho system stood for then, and I haw already givon tho contrast between, then imd now in mileage. What tno svste.ni stands for now, financially, may oo gauged from tho capital acoount. At tho end of tho fi.rst year of Board's operation, March 31st, IiWC, this account stood at £510,142. That represented what had boom paid tcrtho companies and what had ■boon, paid ra conversion, constructiou, reoonstxuotion, and for now rolling stock and, plant. Br tho end of March 31st last this account stood at £617,368. That represents £9-143 14e 2d for each. , -mite of track, an oxpendituTO of £7 lT&'lld par head of tho population. FINANCING THE CHANGE. Tho financial difficulty that tad loomed largo in, many minds was got over all right. Tho first loan was for £250,000, all raised in New Zealand. , . That was rather a new policy lion, but it was justified by'getting tho: money at 4i per cent, without any expendituro beyond tho advertisements and tho printing of tho debentures. The bulk of it cam© from Dunedin, Wellington, and Christchurch. This loan will be repayable on October Ist, 1934, and carries a J per cent, sinking fund. All tho subsequent loans wero made to expire on the same date to facilitate consolidation if desired, and they all have sinking funds. Our tramway authorities are rather proud of tho financial position of tho Christehurch system. Tho Board recognises that it holds stewardship for tho pcoplo of & rapidly wasting asset, one which is liable to depreciation at any time, or .' even to sunorsession by some new trap- ' - tion invention, or somo development of - motor 'buses or the like, especially if local bodies are «>• unbusinesslike as to grant to rival concerns the privilege of running against the people's own transport firm, instead of keeping for tho' people the benefit of monopoly "which tho people alono should hold. UNFORESEEN EXPENDITURE. Apart from their liability to opposition- ; and supersession, there is also tho liability to become suddonly involved in heavy unforeseen expenditure that ia being now so strikingly illustrated in ' . tho Tramways Act Amendment Bill or of becoming involved in a etriko. In ... -= view of all these factors, the Board has wisely so arranged sinking funds for all its "loans in order that the next generation will only ha-vo handed on to it such proportion of the debt as tho de- . -• predated asset would bo worth. At March 31st last the Depreciation Reserve Fund stood at £62,183, £12,124 having been added in that year, and the Renowal Funds at £55,886. Then there is a fire reserve of £3780, and public accident reserve of £3824 against . the contingencies implied. The i per> • confc. Statutory. Sinking Fund lias reached £17,702, so that there ar» cash reserves, in hand after ten years' l ... : running of £143,327/ as against a loan liability of And there is,'of ' course, the value or tho system ase .'-. going concern 'and;-of ite real; estate, "franchises," rolling stock, etc. So far . thoro has been a total capital cxpendituro 0f'£647,368, of which £49,219 was preliminary expenditure, from which £33,412 has been "written off" from surplus revenues, leaving the net value of" the concern as the capital account shows it, at £613,955, but on the basis ■ ' of a salo •"lock, stock, and barrel" to another tramway company, it - would probably be considerably more, At; any rato, tho position appears to indicate ■ ; that a. prudent finance has been a ruling factor in the administration of the Transport Branch of the PcopJo's Firm of "Christchurch, Unlimited." DOES THE SYSTEM TAY? The question of how this transport branch pays is of considerable moment to the citizen shareholders.. In. tho ftrst year of working nothing was sot aeide for depreciation, but after putting aside interest and sinking fund on the loans there was a, balance of 25,204 over expenditure available. Last year (1912----13), tho net earnings from the operation of the lines was £54,532, after paying £79.749 of working expenses.- (Jut or this £54,000 odd, there had to como . £24,372 of interest, £2637 sinking fund, bringing the surplus down to £27,522. From that £12,124 was put to Depreciation Reserve, the same sum to Renewals Fund, £671 each to tho Firo. and Public Accidents Fund&i-£26,591j:.and there was still a credit balance m the working of <8s under) £1931. Altogether surpluses have enabled the l £33,412 al-j ready referred to to be ' written, off , capital acoount besides paying tbo way and building up the £143,000 of reserves—£l7o,ooo in ten years. That admittedly is a good showing, bnfc m tho face of the factors already mentioned it is evident that only the most unremitting car© could bring the balance thus on the right side, and keep it there against future contingencies, and how this care- is applied to tho dotails of working is really the most interesting thins in connexion with our tramways, and of which I will toll you next. AN INTERESTING COMPARISON. Meantime, there is one factor which' the Christchurch management can "point to with pardonable pride, and that is the position in wiiich wo etand in making comparison , of the relations between operating expenses and receipts, a test of economy and efficiency in administration, and in" general working right through the . bervice. Hero is how Chrisichurch .stands in comparison -with other systems as to tho expenditure required to earn each iilOO or revenue:-— Leeds, £52 2s 9d; Dunedin, £57 13s; Christchurdi, £59 7s Ud; Auckland, £00; Glasgow, £55 19e 7d Bradford, £(}■> os; Adelaide, £70 Is sd; Wellington, £72 Os 7d; and Sydney..£B9 12s 2d. Tho very honourable position which Christchurch holds is accentuated when local conditions are considered. Christchurch linos run through more sparsely populated suburbs than any of tho other systems mentioned. Christchurch is claimed to charge a lower avefago con- > cession faro than any other.New JCea]and system. Tho wages paid in England are much less than hore. In Australia they are somewhat less than, ours. Throughout Now Zealand systems they are practically uniform. All these factors give weight to the comparison.. I want to tell you next of the , human: side of the system. It won't be so . heavy as this has been: "There's many a slip 'twixt the cup and the lip." but not often when, the cup contains Martell'e* "Brandy. A man is very careful with liquor like that* . ■• « . ; •