Evening Post. THURSDAY, FEBRUARY 7, 1907. THE CITY TRAMWAYS.

Evening Post, Volume LXXIII, Issue 32, 7 February 1907, Page 4

Evening Post. THURSDAY, FEBRUARY 7, 1907. THE CITY TRAMWAYS.

The revenue account of tho Electrical Tramways Department of tho Wellington City Corporation, for the period between Ist April 1906 and 25th Decombei', submitted to tho City Council at it 3 last meeting, is interesting as an interim statement of oarnings and cost of operating, though, being for a broken period, it can' bo regarded only as a tentative illustration of tho results of working. The statement is clearly drawn up, and shows the income and oxpendituro summarised under suitable heads. The proceeds from tho sales of tickets for the nine months (nearly) amounced to tho very* substantial sum of £65,971. A new source of revenue is due to advertising on tickets, and yielded £145 16s Bd. As tho cost of tho paper and printing amounts to six or soven hundred pounds yearly, it would seom that there is a good ccopo for an increase in this item of revenue. The salo of current produced £1370 in tho nine months, as against £571 throughout tho wholo of tho previous year. Pov contra, the power expenses have advanced by an average of £174 nor month, due chiolly to on increase in fuel consumption, which has risen from an average value of £322 per month to £447. This represents 8.7 per cent, of total working exponscs (exclusive of depreciation) aB against 2.99 por cent in Glasgow, and 7.8 per cont. tho corresponding average of the services in tho chief American cities. While the cost of cleaning and sanding track is only 0.93 per cont. of total operating cost in Glasgow, and 1 per cont. in American cities, the wagoi of trackcloaners alone in Wellington under the primitive motbods employed in thiß work exceeds 2 per cent of tho total working expenses. The amount shown as excess of revenue over income for the period covered by the account, £876 19s, could not bo regarded as more tluin v enfe margin, oven if proper pi o vision Merc made for sinking fund for loan redemption, and for depreciation resttrvo to cover deterioration in value of the plant, to as to provide

against any deficiency when the eystem has to bo replaced or superseded. If the citizens are ever to acquire the unencumbered ownership of tho undertaking, much more liberal provision will have to be made for both sinking fund and deI preciation. It is significant that the ba&is on which the allowance for the latter has j been computed (if it has not actually been | made to fit into the available surplus of I rovenue over current disbursements) has not been disclosed to the public; and V*o auditor's somewhat ambiguous qualification of hie certificate on the last balancesheet (30th March, 1906) is not calculated to induce tho belief that a siuTij cient provision is being made as a set-off I to thia loss of value. The appropriation towards the sinking fund has been limited to ono per cent, per annum, which, if accumulated at four per cent, compound interest, would take over forty years to redeem tho loans, a period, probably, more than double that of the "life" of tho system, quito apart from tho ri&k of obsolescence. We havo co often urged these considerations that the full responsibility for the financial difficulties which are likely to ariee in the future from tho failure to face these requirements from the outset must rest entirely with the members of tho council and their % responsible officers. We observe thab in the statement under notice the allocation for depreciation has been relegated to the net revenue- account, instead of being included in the main revenue account. Wo had reason to_ refer to this point on a. previous occasion, and wore glad to notice its proper treatment in tho audited accounts for the 1905-6 year; we trust, thereforo, that the exclusion of the item from the main revenue account in tho present instance has no ominous significance. The 31st March, 1906, balancesheet of the Tramways Department included the item £7436 3s 3d " Depreciation Account," but the interim revenue account now under notice does not appear to provide for any interest on this amount, though it was nob thon invested in outside securities, and we believe is still employed in the tramway business iUelf. Tho interest on this amount at 4 per cent, per annum would reduce the given surplus by £222, while it would correspondingly improve the depreciation, account. It has been stated that certain new works are to be paid for out of this depreciation reserve, but seeing tb,at it is not represented by any specific or realistic assets it would be interesting to Jearn ho»v this achievement is to be consummated. Tho careless indifference with which the members of the council treat the. accounts which are put before them from time to time is very deplorable, and it is to bo hoped that, at the forthcoming elections, the people will return candidates pledged to critically examine the figures and statements which avo submitted. Tho chaotic stato of the Corporation accounts has been specifically dealt with in these columns from timo to time, but apparently without rousing tho susceptibilities of tho public representatives on tho council to tho gravity of the facts. The tramway balance-sheet (31st March, 1906), shows th?.t tho department has a claim on tho general account of the Corporation for £1278 17s lOd, made up of the difference between £9063 13s of tramway moneys absorbed in the Corporation's general account, and £7783 J Is 2d paid out of general moneys in capital oxpcndituvo for tho tramways. Though it is clear from a perusal of the general account that the Corporation enjoyed tho disbursement of this £9063 19s for general purposes ; tho treasurer's I accounts 6how the £7783 Is 2d as [ though it wero still recoverable from | the tramways department. Yet the Mayor contends that the accounts arc reliable, and comprehensible, and the members of tho council, with their accustomed complaisance appear to a.cccpt such assurance without I troubling to examine tho .figures intclliI gently for themselves., though that duty is, or should bo, not the least important part of tho public service of city councillors.