THE TRAM SERVICE.

Dominion, Volume 5, Issue 1508, 2 August 1912, Page 7

THE TRAM SERVICE.

i MAYOR'S ANALYSIS. NO FUNDS IN RESERVE. POSITION F f \CED. GREAT NIUHT AT COUNCIL. At a special meeting of the City. Council last evening the report of the Tramway Board was discussed. Those present were: The Mayor (Mr. D, M'Lnren), Councillors J. Smith, F. Cohen, G. 'Frost, J, Trevor, A. R: Atkinson, J. Godber, 1, M'Kenzie, W. H. I'. Barber, E. Tregear, J. I'liller, It. A. Cameron, J. E. Fitzgerald, Ci. Shirtcliffe, and R, Fletcher. Councillor A. H. Hindmarsh was' absent in Parliament. , ' 'Xhq proceedings were opened by the Mayor delivering a lengthy speech dealing with the report. The councillors had not been supplied with copies of the ' speech, 'and at an early stage of the meeting Councillor Fitzgerald moved that tl\o council should adjourn until the menu bers of the council .had had nn.-oppor* tunity of "reading the report in the newspapers." After the Mayor'had explained that he had been'unable to get copies ! typed, Councillor Fitzgerald withdrew. his amendment. The 'various speakers' were subjected to a good deal of interruption, and at one stage Councillor. Barber complained that his fellow city fathers were "like a lot of Scotch .terriers; they are worrying me." ' Other •; councillors expressed ' tjie opinion that the real business . would never be .completed if the .rules of dfe ' bate were not observed. Indeed, considerable time had lapsed before the real discussion was undertaken. Finally, Councillor Godber appealed for a cessation of interruptions, and the Mayor said that he would insist upon that. THE MAYOR'S ANALYSIS. His Worship said that in dealing with this important report ho considered it right to review Hie general position of .the finances with special reference to the increase or the decreaso of income or expenditure. The total income for 1912 was • -2133,709, and in 1911 it was .£133,708, tho increase in tho year being ,£SOOI. On the other hand' the expenditure in 1912 was .£99,909, and *in 1911 <£92,026. an increase of Thus the expenditure had jncressed by .£2282 more than the increaso ' of income. Taking the different branches of expenditure, the traffic expenses-showed an increase in the year 0f'.£2506. That amount had been principally made un as foUows:— ~ £ ' Wages of- motormen and conductors 1577 Other traffic employees ; '-'°93 Superintendents ; ; oqs ' ' 2078 "The general expenses," contipuecniio Mayor, show only a, slight increase anjpujitijig' to JM'J,*). Powor show an increase of .£ll4, but the-main branch xt lnorejiseil expenditure 13 ' on repairs ajid maintenance, which shows . an -infleafn, I'he respective amounts for 1912 and 1911 are:- ■ "1912 ; M.oßo' ' , 19H «C 18,950 ~,"The gross i balance on the working of the servico shows a reduction .in 1912 of r£2Bßl, as th? amount earned to jict royenile account' in-1911 was ..611,681, and 1912 ,E38,800. ' There _wns a considerable reduction in the amount carried to the pa'Mce of the appropriation account. In 1911.i'5616 was thus carried forward, and in IM2 only-.C12-U, being'a-drop of: .£1103.' After appropriations ivero made- ouh'of tho appropriations account, the -balanceKheefc.diows a-debit of the year. The estimates which aro supplied by the boaM this year ■ are on the narrowest eoala so far as providing for any surplus at the end of 'the-term, as'it was only estimated to have a- net surplus'of <£445, a? 1'! it is to bo ncite({ that in the estimated receipts the'-board- calculated o,lithe council calling'Up the whole amount, of ,£2200 on. Wadestown, instead of that we are leaving an amount of ,£513 o'utetanding so that; even with the most rigid economy, we- must look to have on the present working a debit balance at the end of the year. Oil the" expenditure side "of the estimatos adopted the amount of J2BQOO is set down,,by way of increase in wages of motormcn and conductors, and it seems most likely that this mav ho added to by nearly ,£IOOO. The return presented to tho conncil recently of the working of the service for the twelveweekly period to -June' 23 gives the in'crease on account of wages referred to as ,£506, We have, to face the positian. that last year's working shows a'debit balance of. after providing for appropriations, and on the present lines of running that amount is likely to be exceeded. By resolutions passed recently the. conncil has decided to set asido from the depreciation fund this year an amount of =£10,000, and in carrying out improvements recommended by an overdraft; of .£20,000 we' arc making provision to set asido ,£5900 per annum for tho reduction of this temporary, loan. Revenue and Expenditure. "It is very evident that we cannot hope io meet this financial liability utiles.? wo provide some mean? of raising additional revenue, and also -by curtailing the expenditure. It becpines a question of whether the concessions that have been "iveji from time to timo have not boon too excessive, for instance, last year (1912) the concessions oil ordinary, fares amount to .£7333, and. the total of concessions of all kinds granted since 1906 amounts to .£31,290. We are face to face witJi theso two things, that taking 1912, compared with 1911, there was a decreaso in the gross surplus to capital expended from 7.5 per cent, to G.B per cent., and there was an increase in proportion of working expenses to revenue of 67 per cent., in 1911 to 70 per cent. "The ratio of revenue to working expenses since 1909 is as under:— 1909. ' 1910.' ' 1911. 1912. Revenue ... 14.05 .14.27. . 1-1.23 14.66 Expenses' ...'' .9.69 . 9.72 . 9.81 10.56 And.for'the .twelve weeks June 23, this year:—. Revenue, per: car rails 14.39. Expenses, per car mile 11102 "Comparing the ratio of expenditure to income- of services in Great Britain, the rost of working'locally is very 'much in excess of what is existing in tho Old Country. It will be noted that in Mb board's estimates for the year an i.ncfeasa. in the working expenses for the year of ,£4500 . is expected, whilst the increase last- • year amounted ip .£7831, and I think, therefore, is fuliv seized of tho necessity for curtailing the expenditure »« much as possible withpuf damaging the effective- • ■ mess of tIM./r-fTviccv "The general increases on the' expenditure side last vcar were:— • ' ' Si Traffic superintendence 203 General account (office and staff) ...... 258 Power expenses salaries and wages... 302 Mntormen and conductors ' 1;577 Other traffics employees 293 dS'2,C3S J "Of which fully .£2OOO was for increased ■wages. " . ' ■ I A referer.ee lo the special returns on incomo and-expenditure since.the inception of the service which has been supplied by the Hoard shows that the chief growth of the expenditure is in respect to the matter of repairs and maintenance; this last'year shows a considerable increase under that heading. ' In 19U tho percentage was 2.02, ond in 1912 it is 2.13. At the present time, the management is rflaiiug close investigation into the whole of the details of the expenditure, and it is contemplated tliut some reductions may be ma4e within the year;-but taking the most that can bo done in that direction, it -will still' leave us with a considerable amount to be mado up in some other way in order to place Our finances on a perfectly sound foundation. ' The principal mfttter to be dealt with in the .'present report that is submitted by the hoard is that pi the alteration to the sections. This is. by no means a. new question thatis raised, as the council hos had this matter under discussion on previous occa-

sions; and it has been throughout recognised that some alteration is required with reference to the very lengthy sections which are out of proportion to others, and over which the same fare is paid. The Car Fares, "Taking tho . carriage of passengers over tho whole city, the Id. fares average about 112 chains, or nearly 1-1 miles for tho Id., and reviewing the carriago ot' passengers during this last year, there is shown a decreaso of passengers curried on the single. Id. ticket of 255,633, whilst there is an increase in the carriage of passengers on workers' tickets of 825,100, on concession tickets 18,864, on school tickets 28,832, and on Is cards 42,609. "This means an extension of concessions which does not allow for proper increase in revenue to meet the liabilities we are face to face with. In comparing our sections with the return which 1 have of the whole tramway services in Great Britain, 1 find that on our Id. fare tho distance we carry passengers is slightly over the average of that, of the services in the Old Country, and ill excess of other services in the Dominion, whilst on our workers' return tickets tho length we carry passengers is ,in excess of that of the most up-to-date service in Great Britain. "Whether with the cost of material and wages we are justified in making the length the.samq as that in services at Homo is very doubtful. In the proposals for the alterations of sections submitted by the board there is an endeavour to shorten tho more lengthy sections, ami at the same time provide for connections with the short extensions which must be made in the near future. The board is also taking fully into consideration the . fixing of the ending of sections at such positions, as provide adequately for connections with all branch lines. "No Funds in Reserve." t "To sum up the matter of our financial position, as it appears to me, we have undertaken liabilities for further improvements of tho service which will make, a pliarge on the revenue. In the' meantime the -net balances to credit have vanished; for, whereas in 1908-9 there' was a net credit balance, after making appropriations of .£4334, that position has been altered, uutil last year, after making appropriations, thero was a debit balance of ,£2834. " "It must bo recognised that, in the matter of seotions and fares, wo ho giving considerably greater concessions than other tramway services in tho Dominion, the average lengths of sections being: / Wellington 103 chains. Auckland 86 chains. Christchurch ■ 83 chains. . . Dunedin 79 chains, and . the fare per mile' for these four services is: . Wellington 79(1. Auckland 93d. '' Christchurch :. .9Sd. Dunedin l.Old. "For this coming year, we have to face the position of a .considerable increase in the charges from revenue accruing; thus, towards the redemption of the overdraft of .£30,000, we decided to set aside ,£SbUO per annum; again, increased wages under new agreement will be about .£4000; on workers' concessions, about .£3000; extra oostof fuel, .£1000; probablo increase in repairs anil maintenance at least i! 1000. We shall also have to meet interest on the overdraft of ,£30,000; and theso charges altogether amount to nearly ,£13,000. "Thus, though economies are efi'ected, and the board is reducing expenditure in several directions, it is not likely that wo can provide for more than ,£IOOO to 435000 in this way, and it still requires that an extra amount of revenue of 4110,000 shall be provided for. ' "It is important to note that we have no funds in reserve, and that there are very necessary extension's of the' service, which arc still awaiting consideration, such as that over Constable Street, and if we do not place the general finances on a more solid foundation, it is scarcely likely that any loans will bo voted if asked for, so that tho whole service may ha placed in a perilous position unless .cine provision is made from now -onward.' ' ."I eonsider that w : e 'must'directly faco the situation of either ..requiring the ratepayers to bear the charge of a rate fot tramway purposes,_ or the proposals for modifying the sections and fares must bo pnt through by the coitncil in order to place the finances on a proper working basis." The' Mayor then moved that tho work dono in committeo should bo confirmed in open council. 1 ' Councillor Trevor seconded. ! ' THE DISCUSSION. "INJUSTICE TO WELLINGTON SOUTH." ; Councillor Barber moved as an amendment: "That before deciding on the report of tho Tramway Board, and matters relative thereto, the board should bo asked.to furnish a further report showing what 1 further economies can be effected in the tramway system and report tho same to the council." Councillor Barber stated that the board had failed, to. take into consideration the question of 'effecting tho necessary, economies. He proceeded to say that there were a great many useless .cars being run in tho city. lie remarked that he reckoned the running cost to bo something under 2s. per car mile. Councillor Fletcher:'You are over tho mark a long way. Councillor Barber: Yes, I believe I am. "We Cannot Help Laughing, Sir." Councillor Barber, continuing, said that a good many useless cars could be cut out if a system of transferring passengers wore introduced, If passengers were run from Island Bay to the Newtown clock, and then transferred to other cars, thero would still, be plenty room on the cars to bring all the peoplo on to town. And tho Island Bay car could return to the bay again, and so on, and that would provide adequate service. It was the workingman's district was being attacked in the alteration of sections. Various voices were raised in comment. The Mayor: I will ask councillors not to interrupt. Councillor Fuller: AYe cannot help laughing, sir. Councillor Barber: That applies to the conference. I noticed in the reports that' every speech Which Councillor Fuller made was received with laughter. Tho Mayor: You must stick to your.subject, Councillor Barber. Councillor Barber said that it was a mystery to him that the- tramway servico could not bo made to. pay. People' had been carried cheaper under th? old horsetram system The effecting of the board's roport would injure' the service, and a stress injustice'would bo dono to South' The Point of Radiation.|„', Councillor Cameron seconded the amendment, but said that he proposed to deal with the question in a, different way. in the first place, he continued, a good deal of the information given and worked on was meagre and misleading; A councillor: No. Councillor-Cameron reiterated his statement. Some of the estimates, he said, had beoli mado on winter figures, which ■were-not sutlicieut-to take as a guide. He 1 could not b2 accused of prejudice when ho silid that tho effecting of the board's report would inliict an injustice un Newtown. He held that tho board should have first gone to the council to ascertain what tho policy wns to be. A mistake had been made in not deciding upon a centre from which the servico was to radiate. He believed that tho Jioyal Oak triangle would be the best, place of radiation. As regards policy, they had lo consider the point of radiation an t town planning. Tlicy should aim at the lengthening of the penny .section from tho centre of the city, so that people could get out as far as possible for their penny. Thus they should aim at preventing congestion about Tn Aro Hat. and getting people out to healthy surroundings. lfe believed in slight * concusvons t:> suburbanites, but added that cheap fares to the suburbs would probably result in increased rents, lleverting to the matter of tho point of radiation,. Councillor Cameron said that ! business was moving south. Near the ltnyal Oak triangle there would bo the old Opera House, the new Opera House, four theatres, the Town Hall, the central library, and the fish which, he presumed, Councillor Barber s peoplo of Wellington South would patronise. Councillor Atkinson: \ou can get .fish by post now. After a few further observations by Councillor Ccmeron. Councillor Tregear rose to a point of order. He objected to Thorndon people beimr referred to first as aristocrats (by

: i. a previous speaker) and secondly as Thorndon Carnegies (by Councillor Cameron). Tito Mayor said that it was duo to the board that he should explain that the board.had not withheld any information, as Councillor Cameron implied when ho said that certain estimates had been based on winter returns. Further, tho question of policy was distinctly referred to in the report. Make the System Pay. Councillor Frost said that he was in favour of the system being made payable, and of tho users of the trams being required to pay. After quoting cortam comparative figures, Councillor Frost pointed out that the extra money that would be taken on the Newtown sections as propwsd would not fall entirely on the residents of that district. A largo proportion would have to be paid by tho city people who went to Newtown for sports and other purposes. THE BOARD ON ECONOMIES. At this stage the .Mayor read the following report by the board oa tho subject af economies:— "In connection with tho notice of motion given concerning economics in tho tramway service, the beard desires to point out that full consideration is being given to this mutter, and that such consideration commenced immediately the board wu.s installed. For obvious reasons it was not considered advisable to submit every question regarding such economies for the consideration of the council. The board has, however, already reported on economies which can bo made at the Thorndon office, and is of opinion that further economies could be made by amalgamation of tho traffic and cashier's staffs. There seems to be no valid reason why these should lie carried on practically as two different offices. A further saving consequent upon such amalgamation is estimated at about ,£250. "It is considered that the new will show further saving in traffic expenses, but what the amount of this, will be is at prssant difficult to estimate, owing to the time-table not having been in operation for a sufficient longth of time. Ad soon as definite information is available, a report showing the probable saving per annum will ba submitted to tho council. Carshed "Badly Arranged." "The board has also considered tho question of economies at the carshed, but has recognised that the carshed, as at present, is so badly arranged that it is difficult to say exactly what economies could be made. With a view, however, of simplifying tho whole arrangement, and with a view to botter supervision, the board recommended, and the council has decided, that a separate building for repairs, fitting, and painting should be erected adjacent to the Newtown carshed, leaving the present building to be utilised almost entirely as a running shed. It is likely that greater benefits, both in tho nttention to the cars and as regards economy, will lie the result of this alteration. The board, has carefully considered what economies could be made also in connection with tho printing of tickets, this being a very heavy.item in the annual expenditure, and a svstem has been tinder consideration, and is rcadv to bo adopted immediately the council'lias determined what alterations will take place in the various sections. 'Consideration has also boon given to the question of the number of inspectors (•mplo.ved 011 tho system, nnd is of opinio 11 that the mimlwr (hvo traffic inspectors and seven gcivprnl inspectors) could be slightly reduced. The Agreement With Employees. "I'o effect any large economies other than those above indicated will necessittito dealing with tho agreement under which the employees are, at present working. It was found advisable, immediately after tho board was installed, to endeavour to effect an improvement, in tho relationship of the employees with tlio management. This improvement was badly needed, and I am glad to report a somewhat better condition than existed previously. '■ "The financial position of the corpora- ■ Hon with regard to its tramways is, to a very great extent, in the hands of tho niotorinen and conductors—the motormcn iu seeing that no mere than the necessary power is used in conneotioji with their cars, and' the proper handling of tho equipments and tho avoidance of accidents; and the conductors in exercising vigilance in tho collection of all fares. There is no doubt that the position of nlotormau and conductor is not that of an ordinary employee, both men aro invested with a certaiii amount of authority, and every man has an important part to play in connection with the whole system ; and the board considers • that if a proper spirit of co-operation exists between the management and the traffic employees, beneficial results regarding the finance must bo tho .first result. The Only Way. "As previously stated, a large saving in expenditure in traffic' could only be made in varying the conditions under which tho men are now working, and for the above reasons tho board does not consider it advisablo to at present suggest any alterations. The alteration referred to would consist of altering the conditions relating to the broken shifts and tho adoption of a' "spare list," time paid in connection with meal reliefs and signing on and off. "We consider it possible to niako some small savings in connection with management and office expenses, but it has not been thought advisable during tho present transitionury period, and whilst such a number of matters in connection with tho tramways are under consideration to, at present make any drastic alterations in this respect. "Certain economies could be made in combining the duties of some officors employed in tho tramways, power and lighting departments. This, howover, would have to be properly inquired into in each case, and a report forwarded to tho council" for consideration. . "Tho board is of opinion that no economy could be made in connection with the maintenance of the permanent way, overhead equipment and power supply. A careful scrutiny of the expenditure shows clearly that these costs are kept well within reasonable limits. "In conclusion, the board desires to state that every part of the tramway business is being closely looked into with a view both of efficiency and economy, and that, whilst undoubtedly economies could be'made, the amounts so saved could not. be sufficient to obviate the- necessity of raising additional revenue." DISCUSSION AGAIN. WANTED—,£IO,OOO MOKE KEVENUE. Councillor Shirtcliffe was of .opinion' that, as at least ,£IO,OOO additional revenue had to be obtained to place tho tramways on a sound basis, the question of economy in management was a niero drop in the bucket. If Councillor Barber had looked at the return prepared bv the board ho would have seen the real reason why the trams had drifted into an unprofitable concern/. The margin of profit had never been large enough to stand the additional concessions that had ken granted, and there was also the increased rate of wages to be taken into consideration. Councillor Shirtcliffe deprecated the attempt that had been made by Councillors Barber and Cameron to set Newtown against Thorndone. In tho past the sections had been all in favour of Newtown. Tie hoped .the council would confirm what 1 had been done in committee. Councillor Smith had every confidence in the board's ability to fulfil what was expected of them. Ho would support the resolution carried iu conmittee. Councillor M'Kenzie considered that there was Vot a iiKKiiber of the council who did not support the Tramwnv Eoard but they had a right to criticise anything with which they did not agree. He said that the report on economy that had been read should have been placed before them earlier so that members who'-had already spoken to the motion and the amendment would not have lost their right of speaking on it. After referring at length to the proposed alterations in the sections, Councillor M'Kenzie declared that lie' would support the proposal if Drummond Street were made the cud of the section instead of John Street. Councillor Barber's "Pathetic Appeal." Councillor Fletcher regretted the onslaught that had been made on the council's expert officers. He believed that the establishment of the board was 0110 of the best-things that had happened for the service. After referring to various matters, Councillor Fletcbe'r said ho. had never heard such a. pathetic, opponl nj Councillor Barber had rnadq that uiijht |

oil behalf of the people of Newtown. When they required moro revenue why did not Councillor Barber have the courage to Maud up and support the board. " 1 might tell him," added Councillor Fletcher, "that; the elections arc'not yet." Councillor Barber: You have a very narrow mind. Councillor Fletcher said that Councillor Barber was one of those who wanted a tram to his back door. They could not. satisfy him. Tho speaker, however, did not believe that any of Councillor Barber's constituents would consider tho proposed alterations unreasonable. Jn conelusion Councillor Fletcher hoped the council would support the motion and throw the amendment out. Councillor Fletcher said that someone line! to suffer in connection with tho required increase in revenue. It was recognised that the Newtown people had too long had the present lengthy section for a penny, and it would have to bo siibdivided. He expressed strong disapproval of the continued attempts being made to set Newtown against Thorndon. Continuing, he said lie had a cutting from one of the local papers, which summarised the position well. Councillor Fuller: Who wrote it? Councillor Fitzgerald: I don't know. Councillor Fuller: Well, get it .signed, and then we'll know what it's worth. (Laughter.) Defeated by 13 to 2. Councillor Fitzgerald explained that it was from The Dominion, and he proceeded to read it. Councillor Fuller: Councillor Fitzgerald wroto that. ' Councillor Fitzgerald replied that he liad nothing to do with it. Jle expressed confidence in the Tramway Hoard, and contended that they should bo given a chance to carry out their work. He was in favour of tlic motion. Councillor Godber said that lie would not do anything against the Tramway Board. The board had done good work, and_ had justified its existence. When tho division was taken, Councillor Barber's amendment was defeated by 13 votes to 2. The two were Councillor Barber and Councillor Cameron—the mover and the seconder. Councillor Fuller on the Classics. Councillor Fuller moved, as a further amendment, that instead of there being twelve three-section rides for 2s. Gd.,- tliero should be thirteen rides. Councillor Fuller said that Wellingtonians were r.ot getting the full benefit of concessions. "You have a great power in your hands," he continued, "and I don't think that you should put the acid on, as they sayin the classics." Councillor Godber: That is a slang expression. I Councillor Fuller: Oh, well, you know, slang is very good ill 'dull times. Councillor Fuller: Councillor Barber may appeal for his poor people of the queen part of Wellington, and they may put a, wreath of laurels round his head and cheer him to the echo, but people in the other end may bo looking for him with a big blunderbuss, trying to knock his brains out. I now formally move this motion, and for Heaven's sake carry it. Councillor Fuller's amendment lapsed because it was not seconded. Councillor Atkinson said there was very little left for him to say, but ho wished to congratulate the board and the council on the recommendations that the council were about to adopt. In the past the tendency had been to forget that a tramway system was a commercial concern,, and ti. treat it from a political point ot" view, ,but tlicy were now drifting back io the commercial view. The Tramway Board, which had been so much abused that night, was largely responsible for tho change. What an extraordinary contention it was that tho ratepayers, and not the users of the trams, should pay for tho service. Ho was glad to sec that the "democrats".in the council did not support that atrocious view, frequently put forward in the name of democracy. The efforts that had been mado to set 'l'lioriidon against Newtown were strongly deprecated by Councillor Atkinson, who was going to support tho motion bel'oro the council. MOTION CARRIED. The Mayor then replied. He said that it was much better that they should take the bold and definite course of adopting a report such as that presented, and put the system en a sound foundation. In the future, perhaps, they could talk of concessions—not concessions mado on haphazard lines, but on sound lines. . Tho Mayor's motion was then carried. There were two dissentients.