TRAM BUSINESS

Evening Star, Issue 19839, 12 April 1928, Page 4

TRAM BUSINESS

DEGREASE ON KAIKORAI LINE UNEMPLOYMENT A BIG CAUSE “ We have no reason to be dishear G ened because profits are smaller this year, because, if we get anything like a reasonable run of work for the population generally, there will be no doubt that returns will be quite good during the coming year,” stated Mr Alex. Sligo, chairman of directors, at the thirty-third annual meeting of shareholders of the Dunedin and Knikorai Tram Co., Ltd., last night. An interesting statement on the general falling off of tram business was made by Mr Sligo, who opposed the statements that the motor cars were responsible for the decrease. He produced figures to show what a big effect unemployment had on the business. Over thirty shareholders were present at the meeting, which took place in the Roslyn Salvation Army Hall. Messrs B. Ellis, A. Ferry, and J. B. Wilson were the other directors present.

“ I would have greater pleasure in moving the adoption of the annual report and balance-sheet if the profits were up to the usual standard,” said the chairman. “But we must be satisfied. It is very interesting to note the table of receipts, which shows a tremendous falling off during the past year. There are some people in the tramway business who seem to be quite satisfied that the falling off of receipts is caused by the motor thief, but _ he considered that in the hill suburbs something more than the motor cars was responsible for the decrease in traffic receipts. The general trade depression, in his opinion, was responsible for the falling off. It was interesting to make a calculation based upon the number of trams run during the year. If both the up and down cars carried too few passengers, the decrease in takings for the year would be £1,186, so that a slight depression in trade, preventing only a few workers from going down to business, would affect the takings. There was no doubt that some economies would have to he considered. If expenses were maintained and traffic returns decreased, the shareholders would be short of profits, and shareholders who were anxious to get 12 per cent would have to wait a year or two. Certain economies to he made could now be indicated. A hig expense had been incurred during the year on the overhaul of plant—a very necessary work. Additions were made to the plant and machinery and safety devices had been installed. Among the big work was that in connection with the driving gear. Many years ago Mr Edward Roberts had stated that another wheel to connect with the twotooth wheel should be introduced to prevent slipping on the track. The work was then necessary, but the company did not have the funds. At that time the cost of the work was set down at £250, hut, thanks to the fine engineering of the manager (Mr Patterson), the company had been able to carry out the improvements during the past year for £l3O, notwithstanding the increased costs of material and labor. The work had meant a hig improvement to the plant. Expenditure was a little heavier than in previous years. An order for a super-heating plant, to cost_£42o, had been placed, and it was considered that the minimum saving on the coal bill would be 10 per cent. As coal last year had’cost £1.300, the yearly saving would bo £l3O, so that for an outlay of £420 the plant was a real business proposition. At heavy traffic periods the cars were almost at a standstill. The directors had made inquiries in engineering quarters, and they were satisfied that super-heating, which would give the required extra power, was an ideal proposition. Electrification of the line would cost £5,000, said Mr Sligo, and £2,000 worth of plant would also have to be scrapped. The company could therefore spend £7,000 and not get the results which the directors anticipated would be received from the super-heating plant, which had been suggested by the manager. Some of the car fronts had been as ancient ns those on the City Corporation cars, and these had been taken out. The doors had also been made up to date and fitted with roller bearings, so as to be workable on any grade. Improvement had also been made to the lighting in the shed, which expenditure had been justified. In these hard times, Mr Sligo said, it was well to compare the costs. The wages bill had increased by £6O and tho coal billby2B,owinto cmfwyp vbgkq vb Is per ton in the price of coal, Sunday work was now costing the company double pay. One item of expenditure was £lOl on law costs, which had not been claimed by the lawyers for many years.

“We have no reason to be disheartened because profits are smaller this year,” said Mr Sligo. “If w© get anything like a reasonable run of work for t!i© population generally there will be no doubt, I think, that returns wall be quite good during the coming year.” The work of the staff had been completely satisfactory, and the manager had proved his worth. Although he said he did not have much pleasure in doing so, Mr E. H. Sunderland seconded the motion. He said that as returns had decreased there should have been some reduction in expenditure. During the year the oars had run 2,480 miles less, and fewer passengers had been carried, yet the fuel, maintenance, and wages charges had increased by lid per mile Mr J. H. Moir said that the chairman’s remark that the reduction in receipts was tremendous was exaggerated. The actual falling off had aotually been only £273, which was a small amount when the total receipts were £12,000. He asked why it was necessary that such a largo amount had been placed for depreciation during the past two years. The sum was £3,500, while in the previous three years the total was £1,170, and in the three years prior to that £1,210. Mr Sligo replied that the amount had been written off_ on road construction, as against the time when the company’s lease would expire. The directors were of opinion that _ the road should be offered at valuation, and if the lessee would not accept the valuation the company should tell them to go to “ Hong Kong,” and pull it up. The smaller mileage had been accounted for by less trajffio as compared with Exhibition year. No saving could ho made by cutting out a few trips daily. Shareholders expressed their satisfaction with the chairman’s explanation, and the motion was carried. The retiring directors, Messrs A. Ferry and B. Ellis, were re-elected. Messrs Barr,; Hercus, and Co, were reappointed auditors. A motion of thanks to the staff and directors was carried.