HIGHER TRAM FARES.

New Zealand Herald, Volume LVII, Issue 17450, 21 April 1920, Page 8

HIGHER TRAM FARES.

COUNCIL'S PROPOSALS. LOCAL BODIES CONSULTED. MEETING THE WAGES BILL. ■ ■< MAYOR EXPLAINS POSITION. Tramway revenue and the necessity for an increase in fares were considered by a conference of the Auckland City Council and the local bodies cacerned in deeds of delegation, at the Town Hall last evening. No decision was readied regarding increases in fares. The Mayor, Mr. J. H. Gunson, after a comprehensive statement of the present position, said that no such decision was expected last night. All that was required was an assurance that the position was thoroughly understood and that it would be considered by the local bodies. This assurance was readily given before the meeting terminated. In welcoming the members of the local bodies, the Mayor reminded, them that it was but a little over a year ago that they had been invited to meet the City Council for the purpose of discussing tramway matters as they were to do again. He hoped the same support for th& proposed action of the council would again be forthcoming. The City Council, continued the Mayor, had been operating the service for nine months. In explaining the problem which now faced them he desired to deal with, first, the operations during those nine months, then the present position, and lastly, the outlook for the future. The whole desire was to deal fairly by the public The fact that the City Council now owned the service did not terminate the previous position regarding the various deeds of delegation. He was well aware, of course, that the contracts with the local bodies which previously existed were EtUl valid and binding. Obstacles to Improvements. On July 1, 1919, continued the Mayor, the tramway service passed into the hands of the council. He said then that the public could not expect any radical changes in the service immediately. The council had never expected to make such changes during the early months of ownership. The aim at that time was to avoid retrograde steps. The council was not satisfied with the conditions then obtaining,, and was not satisfied to-day. The council started its administration

with a clean slate. Its only obligation was the sum of £1,227,201 paid over to the company. During the nine months it had communications from all the local bodies affected urging improvements in the service. It had not always been possible to meet these requests. There was no lack of appreciation, however, of the need foi improvements. Many difficulties had prevented them from considering things which they . would like to have consideredydifficulties inseparable from a period such as the present. It had not always been possible either to speak so frankly as they had wished, since on these occasions the council was frequently on the defensive in the matter.

Cost o! Additional Cars. In the early part of 1919, before the ** go-slow " policy took place, relations between the council and .the company were somewhat strained. It was found 'during negotiations that the company had 110 cars on the road during rush hours. Dnring; the past nine months 10 extra cars had been pot on during those hours, and this, with other improvements in the service} had involved increases in expenamounting to £12,000 a year. The extra revenue obtained was not in any way equivalent to that sum. The position was that in 1917 the wages paid by the company totalled £85,000 a year. In 1918, as a result of a dispute, increases involving a further £10,000 were granted. As a result of the " go-slow ** dispute last year, a farther £10,000 was added, and the increases in the service during the past nine months had resulted in the addition of another £12.000, making the ■wares bill to-day £117.000 a year. There was no suggestion, continued Mr. Gunson, that these improvements gave a satisfactory service at the present time The council recognised the necessity for improvement, but upon it rested a heavy responsibility in regard to its commitments. It was merely at the outset of its work in administering the tramwaysThere was a difficulty in regard to rolling stock, but this was not the principal trouble- The great difficulty was finance, which was the real cause preventing them from -nutting on more cars. To increase the number during rush hours would involve carrying the same number of passengers in shorter time, but at greater expense, without any addition to revenue. What it meant to make alterations could be seen when it was realised that assent to the demand of the men for a six day week, with every tecond Sunday off, would in- ' volve employing 40 more men, who must be found employment for the balance of the time. The same applied to putting on more care during rush hours.

Result of Nine Months* Working. During its administration the council bad consistently refused to make alterations, except in the matter of the ten extra cars, which had to be put on, since that was "the improvement demanded of the company prior to the purchase. It was only now that the councillors were able to realise what this meant in expenditure. In order to synchronise the tramway accounts with the rest of the council's finances, complete returns had been furnished up to March 31, though they covered only nine months and not a year. From these it had been possible to obtain an idea of the cost of improvement?, which could not be gained from progress returns.

A statement of accounts was then subKjt acf -° unt showed that £1.<27,201 had been paid to the company The cost of settlement was set down at £12.000, this including stamp duties, both British and New Zealand, printing of debentures, legal fees, cost of loan poll and other incidentals. These two items left out of the £1,250.000 raised bv loan authorisations, a balance of £10,799 towards the cost of new works in progress or authorised.

The revenue account showed total receipts amounting to £254,613. Against this, cost of power, wages, interest, sinking fund, and all other outgoings, made a total expenditure of £249.670, leaving a balance on the nine months' working of £4943.

A third statement shoved works in hand or authorised by the council as follow: — Grey Lynn duplication . . .. £7 500 Dominion Road duplication .'. 4.55,0 Anzao Avenue extension ... k . 181300 Tota * • • <■■■ -..- .. £30,150 The two first items were projected bv the company and held up owing to the ■war. The third was authorised bv the council as an urgent work, not only as a new outlet for traffic, but also as the obvious completion of the Aiizac Avenue scheme.

A memorandum attached to the accounts read as follows : —

Statements 1 and 3 show that the total of £1,250,000 authorised by the city ratepayers for the purchase of the tramway system and its development is more than appropriated, and in fact is insufficient to meet capital account commitments. The revenue account statement, which for the purpose of the local bodies' meeting is the vital account, shows that the revenue and expenditure to March 31, 1920, about balance. This, in view of the small credit balance in revenue account and the large figures involved, may fairly be said to be the position. The council is quite willing, should the local authorities desire to make an audit, to place i every facility at their disposal for such favesfagaiaon. Tie account* of the team-

way department in detail will be printed and available for the local bodies' perusal at a little later date, and these will fully disclose the whole position which is summarised herein, the council being of opinion that tee the purpose of considering the matter to-night the net results and final figures were really all that were necessary; the reason for this will Its clear, and upon this position the council has taken the action of calling von together, having necessary regard to the new proposals qf the men. which are dealt with in the following paragraph. Position of gtocal Bodies. # The proposals of the Tramway Union for increased wages and alteration to conditions, including consequent- increase to officers, which involve a very large sumprobably not less than £70,000 per annum ---create a serious position. It is quite ciiar that; some agreement will have to be come to with the men, and no agreement would appear possible that does not in"™s™ a substantial annual sum being added to the- costs of running the service, it is quite clear that the sum necessary to meet these proposals cannot be provided from the present scale of revenue. The' council after full consideration of the position has resolved that the only practical provision **"* can be made » by increasing the fares. Obviously in the position obtaining no settlement should be made with the men until the local authorities concerned in the matter of fares have been advised, of the position and the council's view has been fully stated to them. Nego> tiations are now proceeding for a new agreement, but nothing will be concluded until after the local bodies have been advised of the position, for clearly a matter which affects them so closely is one that should not be concluded until they have had an opportunity of expressing their views with regard to the council's proposal as to the method by which the matter may be met. This does not involve at the present juncture the question as to the amount or of increasing the fares. This, however, must quickly follow, and it will be the duty of the council to submit to the local authorities for their consideration proposals in this connection. The council to-night desires emphasis laid upon the seriousness of the position and the fact that unless the cooperation of all the local authorities, which the council now seeks, is extended to it a critical position will arise. The council alone cannot settle this question; it needs imperatively the co-operation and assistance of all those whom the system serves, holding the view now as it did when the ratepayers authorised it to acquire the service that it was to be Operated as a responsible trust for the whole community of the Auckland metropolitan area served by the system. The council desires it stated that it has not in any way overlooked any of its obligations to lie local authorities under the deeds of delegation and that it has a full appreciation of everything involved. Notwithstanding this after full consideration the only course which it can take is the one now adopted and the only assistance that can be of any value is that which can be extended to it by the local authorities concerned in the manner indicated. Fifteen Months Gained.

Mr. Gunson added that when the council acquired the tramway service it had no idea how long it could continue on the basis of the present fares. That depended on the demands of the men. The council knew from the accounts of the company that it would be possible to carry on with the old fares until circumstances arose to increase expenses. This had been done. By the civic purchase the old rates had been maintained for 15 months. Now new economic conditions prevailed and the rates formerly paid no longer satisfied the men. It was no longer possible to continue the service in the terms of the deeds of delegation. With income and expenditure just about balancing, the increases in wages which must be made, would make it impossible to carry on without an increase in revenue.

Quoting one instance of what the wages demands meant, Mr. Gunson said that in 1917 a first-class motor-man received £3 for a week of 48 hours. Subsequent increases had raised the figure to £3 12s. The present demand was for £5 8s for a similar period. The other demands submitted by the union were on* a similar scale. As soon as he returned from the United States he met a delegation of the men with demands for increased wages. As a result of conferences they agreed to defer the matter, on condition that they were met on May 1, instead of May 31, the date when the present agreement expired. The Public Services Committee of the council met the men last Monday, and had been conferring with them since. A settlement could not be said to be in sight yet. Certain proposals had been made to the -union, which it was understood by the officials were contingent upon the local bodies agreeing to the council's proposals regarding fares. This wa3 the only way the council could contrive to increase the revenue to meet the new expense involved. Speedy Decision Urged.

i The council had met the local bodies, on the ground of equity, to ask them to come into line and put'the whole service on a sound and stable basis. There was no call for an immediate decision. All that was wanted was that the position should be thoroughly, understood, and that each local body should then discuss it and come to a decision. He and the general manager would attend the meetings, if necessary, and explain any farther details. When prepared, the proposed new scale of fares would be submitted, together with any other possible figures desired. The matter was an urgent one. In conclusion, Mr. Gunson reiterated his appeal for a thorough understanding and a speedy decision, at least m *r principle of an increase in fares. Mr. W. J. Holdsworth, chairman of the Public Services Committee of the council, in urging a speedly consideration of the question by the local bodies concerned, said that the matter, if it was to be settled without serious complications, must be settled within a very few days. A certain number of questions were asked. It was explained that various details, such as Sunday fares a flat rate, and a reform in the method of collecting fares were under consideration, but no decision had been reached. * Finally the Mayor of Onehunea, Mr. J. Park, said they could go no further in the matter there. It was so important that it must be given a night by each body, with the Mayor of Auckland and the general manager present if possible. He proposed a vote of thanks to the Mayor and council for bringing the conference together. This was seconded by -Mr C. Hudson, Mavor of Mount Eden and carried by acclamation, a general assurance being given by representatives of all the local bodies that the matter would be considered as speedily as possible.