AUCKLAND TRAMWAYS.

New Zealand Herald, Volume XLV, Issue 13782, 22 June 1908, Page 6

AUCKLAND TRAMWAYS.

THE DIRECTORS' REPORT. _, SATISFACTORY PROGRESS. . [FROM 00l OWN" COBBESrOXDSST:] London*. May 15. Ox the 20th hut. -the meeting is to take place of the Auckland Electric Tramways Company, arid the report, for the year ended 31sx December last, has just been issued. The- directors state that the total revenue for the year from all sources was £140,451, compared frith £152,564 for the previous year. The traffic receipts, which amounted* to £157,710, chow an increase of £7381 over the previous year. After deducting all expenses chargeable to revenue, including £14.255 for interest on the debenture stock and providing for the rental and percentage of profits payable to the Auckland City Council amounting to £3567, and setting aside about £10,000 to meet depreciation, there remains a surplus of £29,722. The expenses include expenditure on repairs and maintenance, amounting to £20.350, as compared with £16,915 during 1906. In addition the sum of £18,726 has been expended on re newals and charged to depreciation account. A large portion of the latter amount was in connection with the reconstruction of the track in Queen-street, which has now been completed. Including the amount brought forward from last account, £3101, there is an available balance of £32,825. The directors recommend to carry to reserve fund for general purposes, £10,000; to pay a dividend at the rate of 6 per cent, for the year on the preference share* (of which £1408 was distributed in 1907, the balance having been paid in the current year); a dividend at the rate of 6 per cent, per annum on the ordinary shares, and to carry forward £2165. The sum of ±,zosß is payable out of the profits of the past year as dividend on £50,000 6 per cent, preference share? of £1 each, which were issued early in the year for the purpose of providing capital for additional plant and rolling stock. Nearly the whole of those shares were taken up in Auckland. The total capital expenditure during the year amounted to £71,598, making the total amount expended on the tramways £664,390, but only to a very slight extent did the increased expenditure become remunerative during the year. The directors therefore consider it prudent to reduce the dividend on the ordinary shares by 1 per cent.

Commenting on the report, the Financial Times says it "shows satisfactory progress, so far as gross earnings are concerned, but, owing to a considerable increase in working charges, the net result* are not quite so good as for the preceding 12 months. . . The total capital expenditure in 1907 amounted to £71,400, but only to a slight extent did this become remunerative during the year, and the benefits derived from it will probably he better appreciated during the current 12 months."