CITY TRADING DEPARTMENTS

Evening Star, Issue 15778, 15 April 1915, Page 7

CITY TRADING DEPARTMENTS

THE PAST YEAR’B RESULTS. At last night’s meeting of the City Council the City treasurer submitted the following brief summary of tins results ol the trading departments for tho financial year just ended ; (las Department.—The profits- of the Gas Department amount to £5,919, which is an increase of £3BO on the .results of the previous year. Tho total revenue has decreased by £4lB, but on the other hand the total expenditure has been reduced by £798. Had the Gas Department been a company, with a capital equal to the amount of the present loans—viz., £IOB,OOO —the next profits for the year would have been shown as £lO 239. being tho sura of tlio interest on debentures and the net surplus. This is equal to 9j per cent, on the capital, and as this result is obtained after making provision for renewals and depreciation to the -extent of oyer £5,000, the financial result is quite satisfactory. Water Department.—The rewtvue of the Water Department for the year amounts to £41.671, being £1,600 in excess of hist war. Tho total expenditure was £25.517, leaving a net surplus 01, £16,154. Iho charge for depreciation and tho contribution U> renewal fund are now on a similar basis to that obtaining hi the ether departments. As a oor-seqnenre tho profit mid loss account is charged this year with £3,660 for these two items, as- against £2.184 previously. Traniuays Departincnt. —The tramways profits for this year amount to £5,255, which is ahead of tho previous year hy £1,206. The revenue has declined by £842, but against this there has been a reduction in the working expenses of J52.454, made up as follows; —Power ■expenses. £1,037; traffic expenses, £574; general expenses, £SO ; repairs and maintenance,, £845 : total, £2,484. The charge tor interest, renewals, etc., is £BO more than last year, and a new item appeals this year —viz., war pay. £356, the amount of ha If-pay allowed to me miters of tho service who have volunteered for active service. Assuming that the Tramways Department- was a public company with a capital of £300,000 (the amount of the present loans), the net profits would bo shown as £17,945, equivalent to approximately 6 per cent, on the capital. This result is after ample provision has been made for renewals and depreciation. Electric Department.—The net profit of tho Electric Department for tho year amounts to £3,860, as compared with £992 for last year, or an increase of £2,868. The revenue has increased during the year hy £5,687, and now amounts to £57,627. Tii-e total expenditure has increased by £2.819. tiie chief contributing factor being intere.-l, £2,190. During tho first half of the year the revenue for power showed an ircreaso of nearly £1.500, and. in ordinary circumstances we should have had asimilar increase during the t-econd half. As the result of the war, however, many of our customers have not been running full time, with the result that our power revenue shows a drop of over £SOO during tho past six months instead of the usual increase. I stated 12 months ago that the Electric Department would have a sufficient credit balance in tho bank at the 31st March to .allow of a transfer of £4,790 to the (Municipal Department, and siidi has proved to hr- the case. It is obvious, however, that the department cannot afford to continue such a contribution without a much larger profit than it shows at present. The report will he considered at a future meeting of the cornu il.