TRAMWAY RETURNS.

Dominion, Volume 1, Issue 228, 19 June 1908, Page 8

TRAMWAY RETURNS.

DISCUSSION BY THE CITYCOUNCIL. ENCOMIUMS AND SUGGESTIONS. FARES AND WAGES. Tho tramway returns for the year, which were published in Tim Dominion on Wednesday, were discussed at great length by tho City Council last evening. THE FICURES EXPLAINED.

Cr. Shirtcliffe traversed the balance-sheet in great detail. Everyone would admit, ho said, that Wellington had a splendid service, and tho return showed that it 'was being very largely used by the public, and that tho cars were becoming an 'absolute necessity to them. The principal increase in revouue'eame from the newly-opened lines. On the Kilbirnio line there was an increaso of revenue to tho amount of £13,846, Karori £3490, and Miramar £2200. Tho other and older lines showed more or less satisfactory returns, with tho exception of Constable Street, which tho tunnel route had robbed to the extent of £1008, tho net increaso from these routes being £4083. The conclusion ho drew from this was that tho Kilbirnio, Karori, and Miramar services wero the reverse of profitable, because, though tho other routes had yielded an increase of £4089, and sale of current had. increased by £2039, tho final result of tho year's operations was only £1341 better than last year. Tho total passengers for the year wore 20,105,723, being an increaso of 3,208,689, and an average of 55,034 for every day of the year. . This he considered eminently satisfactory. Tho total revenue was £123,000, being an increase of £26,375. The working expenses had increased by £18,G-10, and pormancnt charges' for interest and-loans, sinking fund, and depreciation had increased by £6393, making a total increase of £25,033. The increased total revenue, therefore, was all but swallowed up by tho , increased' working expenses and permanent charges. An analysis of the working expenses that power expenses wore increased by' £1240, and traffic expenses by £105-1 (including increased wages,' £637). Tho general expenses had increased by £2112 (induding increases of £637 for compensation for accidents 1 and £638 for advertising and printing). General repairs and maintenance had increased in cost by £4747, making a total increaso of £18,640. To put tho matter in another way, tho total traffic revenuo had increased by. ,49d. per car mile, but tho total working expenses had increased by .61d.|per car mile. Tho nctt surplus ,was £4085, or three-quarters of 1 per cent, on the capital of half a million involved. Ho considered that that- was much too small a margin. But the revenue should bo charged with interest on depreciation fund, £715, and rates on properties , used' for tramway - purposes, say £250, a total of £965, which would havo reduced tho net surplus to £3120. The net receipts from tho sale of were £3515, so that tho twenty million passengers had been carried at rather less than cost price, which he hoped tho public on the ono hand and the . company on tho other hand would bear in mind when suggestions wero made for reduction in fares or'increased wages to employees. Tho present returns, though exceedingly satisfactory in the main, would not. justify any' concessions in regard to fares, and made it very doubtful, in his opinion, whether, any increaso of wages could be given to tho employees.' ' Thoro was not much chanco of increasing profits on tho service in future, in view of tho increasing charges for repairs and maintenance. Either faros were too low at present, or tho sorvico was being carried on at too great an expense. ' The committee should consider this matter carefully, and see if economies could bq cffcctecl. Iteforring to tho extra expense' of £700 entailed this year by the Brooklyn accident, ho . said that though tho Council had a splendid service, accidents might happen again at any time, and he strongly urged tho creation of an accident fund, to which part of tho balance carried forward this year should bo applied. . . REMARKS BY COUNCILLOR BISS. Councillor Biss' thought that the Council should not consider the gross figures so much as tho cost and' expenditure per car milo, which were tho true tost of tho position. Car expenses had increased during tho year, chiefly in respect of tho motormen, conductors, and inspectors. Tho increaso was duo to tho Council's giving way to tho demands of the public, and providing too many cars at certain hours: (The Mayor: And to tho larger cars.) Last year cars would not havo been standing empty before tho Government Railway Station, and before tho theatre, as thoy could bo seen now. Too many cars wero put on at these places for profitablo working. -Ho suppor ted tho pro-| posal to establish an accident .fund. 'Tho Brooklyn line had shown a loss of £1900 in twelve months. Ho thought that tho item of conductors' deficiencies should not havo been placed upon tho public balance-sheet. A change 'of system was desirable in this respect. RATEPAYERS RECEIVE THE BENEFIT. Councillor M'Laren pointed out that tho citizens- were getting a direct return from the service in the shapo of small fares. If bigger fares were charged, the profits might be larger, but the ratepayers received tho benefit. He .thought that tho sorvico should' not.be regarded chiefly as a profit-making concern, but as a convenience of tho city, and an agency for tho, development of its suburbs. . Any question of an increase in tho wages of employees should be judged on its own merits, and not on . other grounds. Councillor Hindmarsh thought that on tlis whole tho position was very satisfactory. However , largo the future profits would be, ho,, did not think that thero would bo any tendency to lower fares. ' The tendency would bo tho other way. Councillor Luko congratulated tho city on having control of its own trams, and not being in tho position'of Auckland at thopresent time. He found that the "Wellington sorvico compared very favourably in all respects 'with t-hoso which were controlled by private companies. Councillor Luko also roferred to tho excellent services of tho Tramways Engineer. -

. Councillor Fisher thought that it was highly satisfactory that Councillors Shirtclitfe and Biss, who mado so closo a sturdy of the subject, .should liavo so few adversa criticisms to make against tho service. They should stiffen 'up their tramways venture, and put it on a sound commercial basis. He agreed that they should ilobit against rovenuo from the tramways something for right of, road, the rates for tramway premises, and other charges of a similar nature. The provision, for, sinking fund in "Wellington was only 1 per cent., as against 2 per cent, in the' caso of English services, and lie would like to be assured that this provision ' was sufficient, Mid that the service was in a sound condition financially. He thought that the question of wages should be referred . to the Arbitration Court, and not to the City Council. Otherwise there was _a possibility that on tho eve of future olections the tramway employees would demand an increaso of wages, and place tho Mayor, whoever he might be, and members of tho Council in a very, delicate and invidious position. If the Council meant to open up the suburbs, ' it must bo prepared to lose money on certain lines for a time. llu" congratulated the city on its excellent tramway staff. The matter of deficicnces had been referred to, but it ivns unfortunate. Porhans there were always some black sheep- 1 " A Councillor: It's not embezzlement; it's shortages. Cr. Fisher: I did not know what it was. Cr. Fletcher pointed out that as the system extonded, the of running must increase. NOT PESSIMISTIC. Cr. Shirtoliffe said ho did not wish his re--marks to ha misunderstood. They . had. .an

excellent servicc, and lie was in no way nessimistic on the subject. ' ■ . • Cr. Smith said that leakages occurred where services; were run too frequently. In tho present bad voathor. for instance, a twenty-miiiute servico would suffice for Island Bay instead of a ton-minute service. _ Cr. Moi-rah said lie was led to believe that there jvero too many hands in the ear-sheds, and that men ivcro there who should not be thero at all. Ho understood that men had been pitchforked into tho sheds, and the 1 foreman did not have tho employment of his own men. Tho speaker trusted that the committeo would investigate the matter. Councillor Carmichael thought that tho tramways should bo closely watched in future. THE MAYOR'S STATEMENT. Tho Mayor said that Councillor Shirtcliffo should have treated the matter from tho point of view of gross amounts, and not of not amounts. . Ho also had not taken off all tho charges. The rents had been fixed having a regard to tho question of ratea Tho tramways were being worked according to tho settled policy of the Council, and not according to the opinions of individual Councillors. The Council's policy was to chargo against tho entorpriso everything'which reason dictated; the tramways "wore'not run as a private concern. Interest and sinking fund were being paid to tho amount determined upon. Last year, they had practically rebuilt one car out of revenue." There was a return giving the depreciation on the cars, but it was-not available just then. Repairs were not chai-god to depreciation, as was done in somo places, and it might bo that repairs would be greater in the future, although this might not be so. Provision had been made for depreciation, and each year money was being carried. forward for that purpose, and the amount was really 2 per cent. He submitted that a sufficiently prudent arrangement had boon made. Regarding the expenditure, the extra cost per mile was attributable to going in for very heavy cars, but it would disappear as tho traffic became greater. Certainly, it was heartbreaking to seo these cars going empty. A twenty minute service had been tried on one lino, but the loss was found to bo greater as pcoplo did not bother about waiting for trams. Regarding the net balance, somo small items should in fairness bo added. There was tho Brooklyn accident and compensation, and somo men had to be paid wages for somo months while they did no work. Then there was the amount paid for the band instruments. .As time went on, providing new material out of revenue, tho profits would be swelled. As to the genoral management, the expenses per running mile were in cxeess of thoso in the Old Country, but he for one did not wish'to bring them down by paying similar wages. (A Councillor: Hear, hoar). They were waiting for a heavenborn genius to have cars»at the spot when everybody wanted to travel, but unfortunately they could not do that, and cars had to run at times when they did not pay. All they could ask for in their managers v/as. they would bo zealous in making the sorvice all that could bo desired. Ho had expected a bigger profit, but upon looking back to tho great exponso and 'tho fact that the population did not at present justify tho size_ of the cars put on, though it would do so later, things were satisfactory. Tho roturns were adopted.