Evening Post. WEDNESDAY, MAY 19, 1909. CITY VENTURES.

Evening Post, Volume LXXVII, Issue 117, 19 May 1909, Page 6

Evening Post. WEDNESDAY, MAY 19, 1909. CITY VENTURES.

It is gratifying to find that financial *depiession has not made the hole that might have been expected in the tramways revenue of the city. In spite of an increase of about ten per cent, in the working expenses of the tramways and power supply — an increase attributed by Mr. Stuart Richardson, in the report laid before the Tramways ComlmtteT'of'the City Council on Monday, partly to the larger service; now in operation and partly to increased expenditure on the maintenance of tracks and cars — the revenue has advanced by a rather larger amount, and shows a gross surplus over working expenses of £44,763. The total number of passengers carried on the city lines last year is declared by the report to have been 21,679,902 — a statement which, to adopt Mark Twain's criticism of some American railway statistics of the same kind, must either be dismissed as exaggerated, or explained by the supposition that some of the passengers must have been counted more than once. The increase on last year's figures is 1,574,179, and the result is an increase of the tiaffic receipts from 10.12 d to 14.12 d per mile. Thus, whatever other economies the depression of trade has produced, it has not operated at the expense of the city tramways. Large deductions have, however, to be made from the £44,763 by 'vrhich the revenue exceeds the expenditure., before we arrive at the actual surplus. The interest on loan charges absorbs nearly half^oi it— £20,651 ; £4934 has been set aside for the sinking fund on loans ; and depreciation is credited with £13,242. The result is a net surplus of £5934 on the year's working, which is not a very substantial percentage on the whole tui'ii-over. The constantly recurring question of course suggests itself once more, viz., whether a .sufficiently liberal allowance if- being made for depreciation. On some small items in the power supply pioperties>, Mich as meters, workshop tools and sundry plant, and connections to cojwumott)' promises, tho percentage ranges from 4 to 10 per cent., bub pa

the tramways themselves, and all that is connected with them from cars to office furniture, a uniform 2| per cent, is charged for depreciation. Is this enough? We have previously expressed ■our doubts upon the point, and should be glad to have them removed. If 4 per cent, had been allowed for depreciation instead of 2% per cent., the surplus would have been reduced to about £300 ; and we cannot help thinking that the true surplus lies nearer to that small amount than to the figures actually declared. In any case, however, the margin is- -so small that the need for cautious management is just as strong as ever. There is no room, whatever for votecatching experiments of any kind. Nothing but strict business management will keep the balance on the right side. The Electrical Engineer's report on th|a electric lighting department was also presented to the Tramways Committee of the City Council at the same meeting. We had our doubts of the wisdom of undertaking this venture when the latte Mayor led the city into it, but the satisfactory result of the first year's working has been bettered during the year which ended on the 31st March. An increase of th.c revenue from £42,767 to £44,321 is, indeed, as Mr. Richardson says, highly sa&sfat;tory, when it is remembered that "the best period in that (i.e., the previous) year's output was under the late company's control, when the gross charge per unit for light was Is, as against the corporation's present charge of lOd." The city is doing well, and the consumers are doing exceedingly well, out of the change. A due appreciation of the improvement is shown by the establishment of 453 new connections during the year. Thje excess of revenue over working expenses was £19,303, and after deductions for interest, sinking fund, and depreciation, the result is a net surplus of £4272. Proportionately this is decidedly a better showing than is made by the tramways, and the City Council and the citizens are entitled to congratulate themselves upon the result.