CITY TRAMWAYS. POSITION EXPLAINED.

Evening Post, Volume LXXXIII, Issue 107, 6 May 1912, Page 7

CITY TRAMWAYS. POSITION EXPLAINED.

STATEMENT .BY THE MAYOR. WHERE THE MONEY HAS GONE. The Mayor (Mr. D. M'Laren) has made an official statement in explanation of the position of the city tramways as shown by the recently-published tramways balance-sheet. Be- pointed out that altogether there has been provided in the way of new works an amount of £87,560 taken from the depreciation fund, and £18,060 taken from revenue, which made a total of £105,020. In addition, there has been £33,488 set aside as sinking' fund, and there is in hand £4904 in the accident fund. Furthermore, from the net revenue account there has been carried forward from year to year sums to .the appropriation account, and although the amount this year is not as large as thai of last year, on the whole, assistance has been given to other undertakings from that, source. The City of Glasgow, in connection with, its tramway service, has a special fund called i the renewal and permanent way fund, but in Wellington the upkeep of tho ! permanent way has been met out of revenue. Last year £4099 went on the permanent way. and this year £5031. The provision for caa's has also been, maintained. Last year £10,204 was spent in that direction, and this year £12,243. The total amount charged to permanent way from capital and accretions of revenue is £210,097, and from the same source towards cars £91,277. In the maintenance of the service there has been since its inception an expenditure on renewals of £11,000. This covers amounts spent on the permanent way (£1000), overhead equipment (£3000), power house machinery (£2000), and parts of cars (£5000). Of the £105,620 which has 'been spent on new , works, which, includes the amount of £87,560 from depreciation fund, and £18,060 from revenue, the following has been provided for: Electric care £30,519, other rolling stock £1288, -electrical equipment of lines £2941. additions to power station £25,778. new buildings £15,391, land purchases £11,826, extension of track £9333, extension of power supply £1,791, [ workshop tools and machinery £564, I automatic point controllers £570, carbuilding workshop and plant £1262, office furniture £145, and purchase of part of Miramar line within the city boundary £4212. REVENUE. In. regard to revenue account, Mr. M'Laren continued, the income and expenditure for the year showed that there had been an increased revenue of £5001 and an increased expenditure of £783 The item of increase in salaries accounted for an amount of £1835. The amount spent in Tepam» and maintenance in the year under review was £23.066; in 1911 it was £18,956, so there had been an increased charge of £4109 under that head. This would account for the fact that whilst the gross balance to be carried to th© net revenue account in 1911 was £41,681. in 1912 it was only £38,800, or £2881 less than the previous year. In 1911 £10,204 was expended on electric cars, and in 1912 £12,243, an increase of over £2000. "The increase of expenditure must of course be carefully watched," added the Mayor, " but up till now I am satisfied that the .eturns from the service in the way of earnings have been very satisfactory, it will remain to make careful provision for all necessary renewals, either in the way of relaying portions of the track or otherwise. In having made provision of that natur* based upon proper estimates, t consider w# shall^ be justified in expanding th« service out of any reserve fund remaining. Whether this can be dope out of the present amount* as set aside for depreciation I am not at present prepared to say, but the fact that we will probably have to meet some considerable expenditure within the next jsix or seven years for renewals aud that a large amount is required for ordinary maintenance will require us t» exercise all care in the matter of granting ooiiceseions which might necessitate borrowing for works not immediately wanted. I am satisfied that there is no need to be pessimistic regarding the financial position. All that is necessary is the •exercise of care in the making of our estimates, and plan*, and prudence in the setting aside of sufficient annual payments to meet both the ordinary renewals required and any special calls which may be shown to be necessary as the outcome of depreciation in the particular parts of works.' 4 .