The Hastings Tramways.

Hastings Standard, Volume XIII, Issue 4312, 16 November 1909, Page 4

The Hastings Tramways.

MESSRS NORMAN HEATH AND CO.'S OFFER. TERMS OF COUNCIL'S RIGHT TO PURCHASE. I MR HEATH'S FIGURES. Hearing that Mr Norman Heath was in Hastings, a representative of the Hastings Standard waited on him this morning and asked him to supply for publication a table showing what the actual cost of the tramways would be to the Council if they decided to purchase the system. Mr Heath stated that it was very evident thai the terms stated in his letter had been misunderstood, and that Councilor Hart had based his calculations on the assumption that the amount to be allowed for depreciation covered the whole period. He said tharon machinery and plant depreciation was always an annual charge, and he was surprised to find that a doubt had arisen as to what was meant in his letter. To remove all possible nrsunderstandings, it was his intention to submit to the Borough Council this evening figures showing the actoal cost to the Borough should they decide to acquire the system at the end of 5, 8, or II years, is follows : FIVE YEARS' PURCHASE. £ s d Total estimated cost 18,742 10 0 Council buys for cost price plus 10 per cent 1,874 5 O Council pays 5 per cent per annum interest on £18,742 ios at 5 per cent simple interest ... 4,685 12 6 25.302 7 6 Less 5 years'depreciation at 7}/ 2 percent per annum off cars (£1350) and i I A per eent per annum off track (£843 15s) ... 2,19315 0 Total cost to Borough £23,108 12 6 Note: The Borough would pay the sum of £4366 2s 6d above the actual cost, which is under 4M per cent simple interest per annum for five years. EIGHT YEARS' PURCHASE. £ s d Cost .- 18,742 10 0 Plus 10 per cent ... 1,874 5 0 Eight years' interest at 4 per cent per annum 5.9Q7 8 9 26,614 3 9 Less 8 years' depreciation, 7*4. percent on cars (£2160) and 1% per cent on track (£1350) ... 3-510 0 O Total cost to Borough £23,104 3 9 Note: The Borough would thus be paying the sum of £4351 13s 9d above original cost, which would be about 3 per cent simple interest per annum for the 8 years. ELEVEN YEARS' PURCHASE. £ s d Cost 18,742 10 0 Plus 10 per cent ... 1,874 5 0> 3 per cent on cost ... 6,199 8 o 26,377 8 o Less II years' depreciation at 7 X A per cent on cars f£2970) and \Y\ per cent on track (£1856 ss) ... 4,826 5 O Cost to Borough ...£21.551 3 0 Note: The Borough at II years purchase would thus be paying £2BOB 13s, which equals 1% percent simple interest for the period of II years.