LOSS ON TRAMWAYS

Dominion, Volume 14, Issue 232, 25 June 1921, Page 8

LOSS ON TRAMWAYS

DEBIT OF £l2BO ON YEAR’S Working

REPORT OF AUDITOR A few weeks ego it wns announced that the civic tramways year had resulted in a not profit of something like U233CKI. The report of the independent auditor (Mr. A. E. Clarko) makes the account show a lose on the year's working of £l2BO 7s.—the first loss in the 1G years’ history of the Wellington electric tramways ■undertaking. The report is as follows: — "I have audited tho balance-sheet of tho Wellington City Corporation Tramways ns at March 31, 1921. There is a net balance from the tramways revenuo account of .£6183 13s. lid., against which there has been written off :■ £, s. d. Balance from power supply (net revenue account) 4512 8 2 War pay allowances 123 18 0 Retiring allowances 22 16 8 Contribution to sup. fund 1667 18 4 Tramway Band subsidy 52 0 0 .Annual amount of 4 per cent. written off preliminary expenses 1,384 19 9 leaving a loss for tho year's working of £l2BO 7s. "The accident insurance fund now stands at .£19,093 Is. 9d., as against £19,964 9s. Bd. as at March 31, 1920. The reduction in. this fund is caused by the compensation paid on account of the Pirlo 'Street accident in January, 1920. "The renewal and reserve funds have been credited with the usual amount allowed by statutory authority, namely, .£12,609. The renewal fund has been debited with the re-laying of the fracks in Courtenay Place and Lambton Quay, and also for the renewal of electrical plant in the power station. The balance standing to the credit of this fund at March 31, 1921, was £74,342 7s. Id. The balance standing to the credit of reserve fund at March 31, 1921, was .£46,311 3s. 4d. "I have at various times checked the stocks of tickets at the end of fonrweeklv periods, and nt the actual stocktaking at March 31, 1921. and they agreed with the ticket register. "I have not verified the sinking fund Securities, but have compared them with the amount in the books of the Sinking Fund Commissioners. All the sinking fund securities are verified by the Government Auditor and myself at a later date.” The Mayor on the Position. Speaking relative to the auditor’s report, tho Mayor (Mr. K. A. Wright) regretted exceedingly the fact that the tramways figures, as testified by the auditor, showed au actual loss on the year s working of £l2BO. It had to bo remembered, in considering these figures, that the increased fares had not been operating long enough during the financial year dealt with to make much impression on returns. Since April 1 the tramways manager (Mr. W. IT. Alorton) had informed him that, whilst the position was not a strong one, the trams were just about holding their own, and with the prospect of getting coal a little cheaper, it was hoped that at the year’s end they would come out with a small credit instead of a debit balance.