TRAMWAY BOARD.

Lyttelton Times, Volume CXVII, Issue 18143, 8 July 1919, Page 7

TRAMWAY BOARD.

ANNUAL MEETING.

CHAIRMAN’S REPORT.

INCREASE IN FARES POSSIBLE,

The annual meeting of the Tramway Board was held yesterday; present— The Hon J. Barr, ML.C. (chairman) and Messrs S A. Staples, D. Sykes, W. J. Walter, A. S. Taylor, G. T. Booth and H. Pearce. CHAIRMAN’S REPORT.

The chairman read a report on the year’s operations of the board. • Dealing first with finances, he submitted tlie following table showing the earnings, expenditure, surplus and car miles run during the past two years:—

With respect to tho earnings, it would bo noticed that what w r as looked upon as tho natural increase had been main tamed, but in spite of that fact, plus a decrease m car mileage run, tne surplus appeared as a rapidly disappearing quantity. Still, .while admitting that this year’s balance was an unsafe one and tended to create an uneasy feeling, when they considered the extent- ot tlie undertaking,. the fact that they had reached the er.d of the year with even such a small surplus was a matter for congratulation when tlie unusual ’occurrences of the year wore taken into account-

The result of tlie snowstorm of July, 1918, meant nob only decrease_ in income, but also increased operating expenses, while the loss of rovenue due to what was known as the “ go-slow policy ” was £1249. A further loss in revenue to the extent of £3OOO wa9 caused by the influenza epidemic; to that must he added £2411, the amount of the increase in wages for the five months ending March 31, 1919, and £1323, the board’s contribution to the superannuation scheme’for the period ending March 31. Cost of material was another factor that had tended to the increase in operating expenses- As a result of somewhat similar experiences, both in Wellington and Dunedin, the public bad been called upon to meet the additional costs "by way of certain increases to fares- The board had managed so far to meet all obligations without doing so. As to whether it could much longer, ref rain, from ‘‘passing it on ” was the question that required immediate careful consideration. True, they had the ratepayers to fall ’ back ’ upon should there be a deficiency, but tho-policy-of the board in the past had. been to make the users pay for - tho services rendered. The soundness of that policy (vas such that he felt sure it was not likely to be departed, from. - ■ <

It nught be argued in connection with certain expenditure that it was extraordinary expenditure and was not likely to-be-recurring, but as against that, which wa9-in no way as certain as one might wish, it had to be borne in mind that the increase in wages referred to only applied to five months of the past financial year, and that there had been a further increase, tlie actual position being that the amount required to meet the increase in wages this year was £7840, or, allowing for acion 2 ? ll ; during last year, gave S to find, to which must be added AriUuU. the deficiencies on the former special rating areas which the main area would not be called uoon to make good A further sum of £3400 would be required as the board’s contribution towards the superannuation fund Allowing for £1323, -the amount paid for tbo term during which the fund was in operation last year, they were left- with a balance of £2077 to be added to this year’s expenditure, which would be increased bv additional men joining the fund. In those three items alone they had £9507. There was yet another factor that would have to be taken into account when considering the necessity for strengthening the financial position, namelv the excessive growth in numbers of concession card riders over cash fare riders, as would be noted by the comparison between this and tho preceding year:

To draw comparisons from a period of years was omy to emphasise the growth referred to, as would bo found by examining the figures from 1914 to the present dateHe did not suggest that there should bo an increase in the concession rates; that, all hoped, might not he necessary, but he submitted that both the price and the regulations for their use would havo to be considered with other means of dealing with tne position, for, taken as a whole, concession car riders were earned at a distinct monetary loss. In other years the board had looked to the natural growth of traffic to meet new demands on income, but this year there must be alterations to services on certain lines which at the outset would not return an equivalent improvement in revenue, and the cost of which was likely to absorb more than any sum that might be gained by the natural growth of traffic. He regrbttod having to draw attention to the need for considering increase of fares, but with all due respect to certain theorists, who expressed the opinion that it was not necessary that publicly-owned tramways should show a credit balance, ho believed in every public undertaking that had got past the experimental stage paying its waySUPERANNUATION SCHEME. The board’s superannuation scheme was an improvement on the National Provident Fund. One of its features was that it fixed the age of sixty instead of sixty-five as the retiring age. The board had arranged for a pension of £52 a year on retirement of its permanent employees over sixty yeavs of age in the board’s employment when the fund was established. One employee had since voluntarily retired and was entitled to the pension. The board placed all employees on active service on the list of contributors, and paid the total contributions, amounting for the seven months of the financial year to £359. Increased advantages "and the establishment of an option induced a further 101 men to join the fund. There were 271 contributors amongst a permanent staff numbering 400 men. “ GO-SLOW POLICY.” Referring to the employees’ “goslow policy,” he said that, the whole occurrence was regrettable, and was caused largely through outside influences. The trouble in Wellington, Christchurch and Dunedin was largely in the nature of a trial of strength on the part of the Transport Workers’ Advisory Board, a- comparatively new organisation. ' He earnestly hoped that whatever disputes the board might, have in the future, the parties would not only agree to settle them at a round table conference, but. having come to an agreement, both parties would loyally adhere to it. INCREASED COST OF MATERIAL. The industrial trouble was shortlived ; hot so the trouble arising out of the scarcity ■ of' material and cost, and during tho past year the rise in prices had been more rapid than dur-, mg the preceding war year. As an U-

lustration, he submitted the following list showing approximate increases during the war period of necessary material in daily use by the board:—

EFFECT OF EPIDEMIC. The effect of the influenza epidemic on the board’s business was shown by the following tables:—

The mileage decrease was 54.7 per cent, and the decrease of receipts for the seventeen daya was £3610, or 47J per cent. WORK FOR THE YEAR 1919-1920. _ Track work had fallen very far behind during the past four years, but it was hoped that much of it Would be overtaken during the coming year. The additional roller now oh order would enable an extra gang to be employed economically, as would als'o the two steam waggons secured during the year. More up-to-date tools, expected to hand shortly, would result in work being done more expeditiously, while the approval of the loan proposals would enable the board to bring the whole undertaking well up to date.

CONCLUSION. If the year s work had been more arduous than he had anticipated, it had had its compensations. Having to be in almost daily contact with the administrative oificeVs had afforded him an opportunity of judging of their capabilities not otherwise possible, and he had no hesitation in saying that it was a fortunate choice the board made in appointing Mr Frank Thompson general manager. Under that gentleman’s management there had been built up an administrative staff that was capable of most admirable team work in times of emergency. That had been further exemplifaed in tho way all worked together during tho general manager’s leave of absence. Taking the 6taff as a whole it was not perfect—nothing human was—but ho made bold to say that it still had first place in New Zealand, and tho board was anxious that it should continue to do so.

Mr Booth_ moved that the report should be printed with the balancesheet. He congratulated the 'chairman on carrying out his duties efficiently during an exceptionally arduous time. Mr Staples seconded the motion, and also praised the chairman’s work during the past year. 'File motion was carried, and a speoial voto of thanks to the chairman was carried on the motion of Mr Sykes, seconded by Mr Pearce. ELECTION OF CHAIRMAN AND DEPUTY-CHAIRMAN. Mr Barr was re-elected chairman unopposed, amidst applause, and returned thanks. Mr Staples was elected deputy-chair-man unopposed. ORDINARY BUSINESS. The chairman and Mr Sykes were appointed to represent the board at a conference of local bodies regarding covering part of Jackson’s Creek. The Works and Traffic Committee reported that tenders had been called for the construction of ten trailer car bodies - and threo electric car bodies. Only one tenderer. Messrs Boon and Co-," Christchurch, forwarded tenders, and these were accepted as follows: Ten trailer car bodies, each £C3S, delivery in from ten to fifteen months; threo electric car bodies, each £S26. delivery in ten months. Tho report was adopted.

In1918.' 1919. creaEe £ £ p. cent Earnings 160,682 160,446 3.587 Operating; expensos . 91,813 102,106 7.031. Patriotic expenses 2,803 3,079 7.541 Fixed chorees Surpius— 57,321 68,521 2.09 . Excluding- rates froiu special rating areas . 5,085 3,740 -*51.80 Car miles run - 2,760,813 2 ;,714,230 *1.689 • Decrease.

Increase Passengers— 1918. ' 1919. p, . cent. Cash fares Concession . 14,592,973 14,733,653 .964 cards . 6,203,967 6,699,040 11.058 Total . 20,736,940 21,623,63-2 3,975

Increase Per cent Oil . . „■ .. 75 White lead . 40 Timber . 50 Tar, ordinary » . - 33*. Sleepers . Coal . . „ • 33 5 . 70 Iron, about . 150 Electrical supplies . . 75 Tyres . 110 Rails, when procurable Screenings . 50 , 50 *

Normal running mileage . 157,983 miles Reduced running . 69,971 miles. Reduction . ■ . . 58,012 miles. Nov. 11-27, 1919. Normal. £ £ Cash fares . 2,590 5,197 Concession cards . • 665 1,689 6.866