PROFIT ON THE TRAMS.

New Zealand Herald, Volume LXVI, Issue 20174, 7 February 1929, Page 11

PROFIT ON THE TRAMS.

HEAVY DEFICIT MADE GOOD.

SURPLUS OF £896 SHOWN.

REVENUE • FROM EXTENSIONS

While the buses in Auckland were lun at a loss last year, the trains show a profit of £896 during the first nine months of the financial year ended December 31 last, as against a deficit of £40,178 during the corresponding period of the preceding year. This result, is shown in a report presented to the Auckland Transport Board last evening by the manager, Mr. A. E. Ford. The total receipts during the period under review are put down at £547,393, and payments at £546,407. The capital involved in the undertaking amounts to £1,853,000, an increase of £28,000 in the last nine months.

The original loan of £1,250,000, by which the tramways were purchased for the city, will bo repaid in 11 more years. The sinking fund was established for that loan at the rate of per cent., and for recent loans at per cent. Commenting upon the position the chairman of the board, Ml-. J. A. C. Aliuin, said it was a creditable fact that the undertaking had always paid interest to its bondholders, and had never cost the ratepayers of Auckland a penny. "Many large businesses in the city would be only too thankful if they could show a similar position," ho added In a further report, Mr Ford estimates the financial result of the working of the trams along the extended routes, the construction of which has recently been approved. When the extensions arc in running order, and allowing foi tlio capital cost of their construction he shows the Point Chevalier extension, one of the first works to bo commenced, will be run at a loss of £1064 during tin. first year, at a profit of £1385 in the second year and a profit of £3796 in the third. Dominion Road extension, also to bo put in hand in the first instalment of the programme, is estimated to show a loss of

£122 the first year and a profit of £267 and £440 in llio second and third years, respectively. Remuera extension, on (lie other hand, will show a consistent loss during the first throe years, decreasing from £1925 in the first to £1284 in the third. Of the three further extensions reserved for construction in the third and fourth years of the board's programme, the Richmond Road schemo should show a profit each year, commencing with £546 in the first year and increasing to £1775 in the third. Mount Eden and Edendale, on the other hand, are both expected to show losses during the first three years. As far as buses are concerned, the report shows the present fleet is being depreciated at the rate of 12£ per cent, for English buses ahd 33 1-3 for buses taken over from the companies. They will all be written off by 1955.