THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY, APRIL 21, 1920. TRAMWAY FARES.

New Zealand Herald, Volume LVII, Issue 17450, 21 April 1920, Page 6

THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY, APRIL 21, 1920. TRAMWAY FARES.

A clear case for an increase in the tramway fares was made by the Mayor of Auckland at last evening's consultation between the City Council and the suburban authorities of the tramways area. The necessity for this provision does not imply any degree of failure in the municipal ad-

ministration of the services, for if due allowance is made for circumstances that have developed since the purchase it appears that the estimates have been very closely realised. The gross profits earned by the Tramways Company in the last year of its operations were £60,856. Interest charges on the purchase cost amount to £63,565, so that to meet this bill, without increasing the working profits, it was recognised that the council must rely on the chief advantage of municipal ownership, the exemption from income taxation. In this respect, the council saves approximately £30,000 per annum. Against this was set the sum of £10,000 representing the cost of wages increases arranged last February. There thus appeared a prospective balance on the first year's operations of about £17,000. The abstract revenue account for nine months, showing a profit of £4943, seems at first disappointing in view of the original estimate. Proportionally the revenue shows an increase of £31,000 over the receipts for nine months in the previous year, while the expenditure has increased by £27,000. The Mayor explained that the cost of additional services provided by the management in response to public requirements is £12,000 a year. When allowance is made for this factor and for the wellknown increases in such running expenses as coal and materials, the balance of £4943 for the nine months must be regarded as satisfactory. The outstanding result of the municipal purchase is that the fares have been retained on the pre-war basis for 15 months—that is since February- of last year, when such increases in wages were awarded to the employees that the company was unable to carry on. At the end of another three months' operation of i the services at the present fares and wages the council would show a profit of about £6500. That is obviously too narrow a margin to enable it to carry into effect a progressive policy of extensions and improvements such as the public expects and the council desires to undertake, in any event its hands are forced by the demands of its employees for higher wages and better working conditions, and while providing for the satisfaction of these claims on a reasonable basis, the council must also look to its obligations for new construction, which according to the sound policy of the past should be met out of accumulating profits. Thus the increase in fares which is now proposed should be sufficient to meet both increases in wages and extensions of the services, to which the council is already committed. No alternative method of maintaining the financial stability of the service has been suggested, and the adoption of the only . practicable j

i course awaits the consent of the suburban local authorities. Their interests in the matter are clear enough. The system is being operated directly in the service of the whole metropolitan area, so that there is no room for hostility among a group of authorities whose interests are so closely interdependent. On the facts submitted by the Mayor the future of the Auckland tramways would appear to wait upon the decision of the suburban local bodies. The question for their determination is whether they are satisfied to let the City Council continue the management of the tramways, or whether all districts through which the cars run are to become partners in the undertaking. The first course involves an immediate modification of the suburban •Orders-in-Council, which would probably open the way for future consultation between city and suburbs on all matters of vital importance affecting the tramways. The second course means the determination of all existing agreements and an acceptance by the suburbs of a share in the capital risk, counterbalanced by an active voice in the control and a permanent interest, whether for profit or loss, in the tramway business. Whichever alternative is accepted, it must be plain to all that no satisfactory service can be maintained on the present revenues. In the interests of the suburbs as well as of the city the services must be radically improved, and these improvements can only come when the whole of the travelling public, through their local representatives, have consented to a moderate increase in fares.