WELLINGTON TRAMS.

Evening Post, Volume LXXVII, Issue 109, 10 May 1909, Page 3

WELLINGTON TRAMS.

m THE POSITION AND THE PROSPECT. TO THB EDITORSir, — In reference to the above, 1 shall be pleased to give "Critic" some information which he lacks. He states that in the" interim report of tramway operation to 31st March "no enumeration of car miles run was included in the statement made to i.he council on 7th ult." This statement was given at the time, and I enclose a copy for "Critic." The ex-Mayor answered some of "Critic's"' questions, but I think the ratepayers would like a littlo more information on this important subject. Tho profits are not "dubious," but real, and the amount of net profits for the four years' working are £16,891, after having provided for interest ou loans, sinking fund on loans, depreciation, and all repairs, renewals, and maintenance. Out of the net profit si sum of £4695 has been appropriated in writing down the preliminary expenses incurred in the original construction of the tramways, such as cost of raising loans, interest paid, out of loans, altering telephone and electric light wires, and removing gas mains, totalling over £32,000, which is at the rate of 4 per cent, per annum, and means that in twenty-five years the whole of the preliminary expenses will be represented by tangible results. In addition to -the neu profit of £16,891, we have set a^ide for sinking fund on loans to 31st March, 1909, the sum of £17,322, and have allowed for depreciation £43,495, which is equivalent to having built up a reserve fund of £77,708 in the four years' working. Besides this £77,708, we have paid our of revenue the sum of £53,394 for i-e pairs and maintenance (which tne Wellington Harbour Board charge against their depreciation account). "Critic" has evidently made a mistake in saying that "the allowance of 1 per cent, upon reitirae for a sinking fund for loans is demonstratably insufficient." The 1 per cent, is not based upon the revenue, but upon the totai amount of loans, £493,423. As to j "Critic's" statement that there is no i depreciation fund, there is a distinct fund of £43,495, which we have invested in the tramways by purchasing some freehold properties, building new cars, extension to power-house plant, and new buildings, which 1 submit is a good substantial investment. The question of charging interest on the depreciation moneys invested in the undertaking was considered by the Tramways Committee, and is a matter that can be considered by the new committee. — I am, etc., THOMAS BALLINGER. • A Member of the Tramways Committee. Bth Majt.