THE CITY TRAMWAYS

Evening Star, Issue 15344, 19 November 1913, Page 5

THE CITY TRAMWAYS

ARK THEY PAYING? At tho Inst mooting of tho City Council there was a good deal of discussion 01, tho position of tho City Corporation tramways. Cr M.irlow, who was one of the chief speakers, now writes: With reference to the statement tba' the tramways are not paying. I should like to give tho following statements m prooj' of my contention that, they nro paying, notwithstanding tho fact- that we have to pay interest and sinking fund on dead assets amounting to. approximatdv, £72.640. For the year ended 31.-t -March, 1913, our gross profit over working expenses amounted to £33,609 7s 2d "on a capital expenditure of £300,000. This gives a gross profit of 11 per cent. As a matter of fact, when we show more than 8 per cent, it is compulsory for re to give concessions to all passengers throughout the tramway system, and the Order-in-Couneil states that the net profit of 8 per cent, shall provide for interest, sinking, and renewal funds, and the deduction of goodwill in connection with the system. So that when tho dcpaitment is showing 11 per cent., it seems unfair to state that tho department is not paying. It has alsa boon stc.ted that the department is not allowing sufficient for depreciation, lenewal, and sinking funds. The question of these charges was very fidly gone into in 1908. The then Mayor and chairman of tho Finance Committor wont exhaustively into this question, and recommended that tho standing charges, covering depreciation, renewals, and replacements, should be increased to £9,808 per annum. The annual contribution to the sinking fund at that date amounted to £1,500. This they did not recommend increasing, so that they were evidently satisfied that £11,308 was a fair amount to cover all charges ; whereas in tho vear ended 31st March, 1913, £13.828 9s "was put by for ie-icwal, depreciation, etc. The contribution to t'v r'nking fund \va<s increased te £3.000. Thus, la-t year there was £5.528 more money taken out of profits for standing charges than had been recommended by the Mayor and chairman of the Finance Committee. How the remarkable statement is made that the tramways system has gone to the bad since its inception to tho tune of £23,663 is hard to realise. It is true that tho bank overdraft approximated that amount ; but as against that £48.000 worth of extensions have been made without additional capital being borrowed (bank overdraft excepted), while against this bank overdraft is the offset of £48,000 extensions and £22.751 in th" hands of tho sinking furd commissioners. It appears to me that either these figures must be refuted or the statement that tho department is being run at a less falls to tho ground. ■ It will be necessary to review the position when the present Bill hefore Parliament has been finally dealt with, but in the meantime there is no necessity to decrease tho number of concession rides.