THE TRAMWAYS.

Press, Volume LXIX, Issue 20898, 4 July 1933, Page 6

THE TRAMWAYS.

CAPITAL AND REVENUE. VALUATION OF UNDERTAKING. In preparation for a review of tramway finance an exhaustive valuation of the Christchurch Tramway Board's undertaking has been completed and in the form of a report from the works and traffic committee this valuation was before the meeting of the Tramway Board yesterday afternoon. The report shows present value at £829,614 with a net loan liability of £707,473, leaving a balance of assets over liabilities of £122,141.

The report stated: "The works and traffic committee reports that it approved the general manager's recommendation in December last that an exhaustive valuation of the board s undertaking be made on the basis of replacement of all assets at 1933 prices with an estimate of past and future life of each item. One of the objects was to prepare for the review of tramway finance which will be necessary early in 1934, when the first loan issues will have to be redeemed. The work has been steadily pursued during the last six months by the board's staff, many hundreds of items of assets having to be examined. A sub-committee of the board valued land and buildings. "The present value of the whole undertaking is found to be £829,614. The total loan liability of the board is £ 1,170,750. Sinking funds in hand total £200,876; depreciation funds available for a similar purpose, ity of £707,473. The balance of assets over liabilities can therefore be said to be £122,141. Basis of Present Replacement. "It has been the practice for a long time to keep an account of each of the many hundreds of assets which the board owns, showing year by year the depreciation of the assets item, based on the original purchase prices and not on present replacement prices. This book value now totals £752,765, which is £76,849 less than the present replacement cost value shown above. But even at the lower book value figures the balance of assets over liabilities is £45,292. The committee therefore considers that the capital account of the board is in a sound position. "As to the revenue account in October, 1934, much of the tramway loan money will have to be repaid. This will result in a substantial saving in future interest charges. If, as is expected, the loans board will allow a reasonable period in which to pay off any new loan money that has to be raised to pay off the remainder of 1934 indebtedness, the committee thinks that even at present low traffic returns the revenue account of the future will be balanced. When prosperity returns, with increasing traffic income, the old days of revenue surpluses may be expected. It is satisfactory to note that despite the prophecies of woe by financial critics from time to time, the board has maintained its accounts on an even keel and has not | had to fall back on the assistance of its sheet anchor—a rate levy."

Members' Comments. The chairman, Mr G. T. Booth, said that the report revealed a satisfactory position. He complimented the general manager and staff or: the efficient preparation of it. Mr W. Hayward also expressed satisfaction at the statements made in the report. Mrs E. R. McCombs: I would comment on the last paragraph in the report. I wondered what the rate levy had to do with the capital account. I say that the comment is purely a piece of propaganda added to this report which really has nothing to do with the report at all. Mr H. Pearce: But the report includes both the revenue and the capital accounts. Mrs McCombs: Anyway I am going to move that the last clause be deleted. There was no seconder for the motion. Mr E. H. .Andrews: This is not only a report on the capital account and if there is to be any criticism of the clause referred to it should be of the use of the word "financial." I think we'might charge the previous critic with propaganda in commencing controversial discussion on such an innocent clause. Mrs McCombs also referred to the statement concerning the revenue account asking .if the reference was intended to include the balancing of revenue only by making transfers from reserves. The chairman said that the decisions for such transfers had been made by the board and all members were conversant with that phase of the position. The report was adopted. MEETING OF BOARD. A meeting of the Christchurch i Tramway Board was held yesterday, when Mr G. T. Booth presided. Also present were Messrs D. Sykes, W. J. Walter, A. A. McLachlan, E. H. Andrews, W. Hayward, H. Pearce, and Mrs E. R. McCombs. | Spreydon Balloon Loop. The report of the Works and Traffic Committee stated that the committee had considered the request of t l lc \ Spreydon Burgesses' Association } that a light be installed at the Sprey- [ don balloon loop, but was unable to agree to the request. The loop was on the board's own land, to which the public had no right to go, and therefore there did not appear to be any obligation to put a light on the spot desired. After discussion, a motion by Mr i Sykes that the report be referred back to the committee was carried. Belaying Lincoln Road Crossing. A letter was received from the General Manager of Railways stating that he was agreeable to the postponement of the work of renewing the tramway crossings at the intersection with the railway in Lincoln road, but adding that the task would have to be completed before November. Mr E. H. Andrews said that th* charge of £2OOO for relaying the tracks over the crossing seemed to him to to be exorbitant, and the board should have more say in the matter. .He did not know where the money was coming from even in four months. The board was spending only £IOOO on the present large task of relaying in Cashel street. Perhaps there was a cheaper method of meeting the situation in Lincoln road. The terms should not be accepted without an interview. It was decided that Messrs Booth, Andrews, and Hayward form a deputation to interview Mr D. Reese, a member of the Railways Board, and discuss the whole project with him. Installation of Stokers. The report of the Works and Traffic Committee stated: "The committee for some time has been considering the question of automatic stokers in the board's office building, Cathedral square, and the car sheds, Moorhouse avenue. It has accepted the quota-

tion of Messrs Vale and Co., of £145, for the installation in the offices in. Cathedral square, and £.150 for heatmg the carsheds for the night-shift, men. It is expected that the savings in fuel and attention vrill write off the capital cost of these two instalments in a short period. The report was adopted. Tracks in page's Road. The New Brighton Borough Council wrote complaining of the condition of the tram tracks in Page's road, between poles 79 and 115. The general manager said that part of the section referred to was in th-e city council area, and the other part m that of the Heathcote County Council. The track was not in very good order, but was in twtter order than the road alongside it. When the track was put in good order, all traffic used it instead of the read. He thought the roadway should be put in order first. Mr Walter said that part of the track mentioned was a disgrace. He was sure that it was to order for attention after the Cashel street task now in progress. Mr Andrews reported that he was not certain of the area mentioned in the request, but he knew that the section of the road under control of the city council was to be repaired at an early date. The New Brighton Council's request was referred to the works and traffic committee for consideration, and report. j Suburban Complaints Considered. ■ The Somerfteld Burgesses' Association asked that Somerfield be included m the list of destinations. The recommendations contained in the association's letter were referred to the works and traffic committee for consideration. The Richmond Burgesses' Association wrote asking that the trolley-bus stop at Avalon street be\ altered, because the position in whieh the vehicle has to halt at present constitutes a nuisance and a dangjer. It was decided to make the necessarv adjustments to meet the request. The Papanui Progress League wrote opposing one-man tramoars. It was resolved to reply to the league stating that due notice would be given 1 u and w^en the board intended to change to one-man tramcars on the Papanui line. ft was stated that it would probably be a considerable time before such a change was made, if at all. The St. Martins Residents" Association wrote criticising the condition of the track, and rolling' stock of the St. Martins line. The complaint was referred' to tha works and traffic committee for investigation and report