NOT SUCCESSFUL.

Evening Post, Volume LXXXIII, Issue 70, 22 March 1912, Page 3

NOT SUCCESSFUL.

ADVERTISING ON TRAMS. CONTRACT TO BE TERMINATED. A very brief item in the report of the Tramwaye Committee roused a good deal of dificumon at the City Council last 7 evening. The item was a recommendation:— " " That the contract for advertisiiiK in tram cars be terminated as recommended by the Tramway Board of Management and the City Solicitor." Tho Acting-Mayor, when the item was challenged, explained that the contractors were unable to carry on satisfactorily, and the committee was of opinion that it would be much easier for tho' Corporation to carry on the work. Councillor Barber objected to the summary way in which such an important matter was dismissed. Several councillors asked for further information, and it was decided to read the report of the Board of Management on the matter. The City Electrical Engineer stated that Messrs. Lucas Browno, the. advertiting contractors, had sent iv a letter, asking to be lelieved of their contract. Their reason for doing so wa6 tho difficulty they found in obtaining advertisements. The position as it stood was as follows, : —1. The advertisement* secured by the contractors amount to £642 for the first year, £395 for the second year, £364 for the third year, aud £107 for the fourth year, making a total of £1508. 2. Under the contract they/ have contracted to 'brini; in a gross' revenue of £1600 for the first year, £2000 for the second year, and £2300 for the third year. 3. On tho tiret year's' advertisements already secured the Corporation will receive a gross revenue of £618 by the 30th September, 1912. As the contract binds the contractors to return a grows revenue of £1600 'by that • date, it will be seen that they would have to make up a considerable shortage on- the first year of the contract. 4.' The amount guaranteed by Messrs. Jackson and Co. w £500, and if the contract is continued there is every indication that it will be necessary to call up this j amount against the shortage on the first 1 year. If this is done the position of the* Corporation will be a very unsatisfactory one for the remaining term of the contract, as the small amount of business likely to be done by the contractors will make the returns to the Corporation very insignificant in the second and third years of the contract. 5. A termination of tho contract at this date by mutual consent would leave the Corporation in a better position than .if tho guarantee was called up and the contract continued. As beforo mentioned, tho total business secured by the contractors amounts to £1508, and commissions amounting to £87 have been paid to them by the department, leaving £1421 worth of advertisements which would become payable to the department free of commission. 'Apart from this th© Corporation would be in a position to call for freeh tenders for advertising in the spaces left vacant, which would probably be taken up by a more enterprising firm, and any receipts obtained from the new contract for the second and third years' period of the present contract would bo additional to tho before-mentioned sum of £1421. On the other hand, if the contractors continued further commission to the amount of £290 will have to be paid on present advertisements. The Electrical Engineer accordingly recommended that thoconitracb be terminated by mutual consent, relieving the guarantor, but subject to the completion by Mccsis. Lucas Browno of the advertising signs now in hand to complete tho secured advertisemente, and that no further paymenta of commission be payable to them by tho Corporation. The City Solicitor agreed with tho proposal, and the Board of Management made it a rzcommendation to the Tramways Committee. The recommendation before the City Council wa6 adopted without further diccueeion, except thai mention was made of an officer of the department (Mr. Simeon) canvatsni" for tenders for advertisements for the vacant spaces on the cars.