Tramway Losses?

Dominion, Volume 27, Issue 17, 14 October 1933, Page 9

Tramway Losses?

Sir, —This morning’s paper tells us that the total tram and bus revenue for the first twenty-four weeks of this year was £161.981, and the expenditure £169.018, leaving a deficit of £7037. Of this latter item you make a headline. As we are approaching our “Confidence Carnival,” I suggest you correct the popular impression that our. tramways are in a serious financial position. In addition to paying out of profits all interest on the money borrowed, the following sums have been made out of profits to March 31. 1932:—Sinking fund, £340,545; amount spent in new additional tramears, tracks and equipment. £423,442; cash in reserve funds and Government stock, £202.214; a total of nearly £1,000.000, cr sufficient to have paid off the whole of the original capital invested. Certainly profits are not as good as a few years ago, but last year’s profit after paying interest on loans was £63.500. I have dealt in plain cash figures: why should bookkeeping distort these figures into “debit balances,” which the public assume are cash deficiencies. —I am, etc.. CONFIDENCE. Wellington. October 13.