WELLINGTON TRAMWAYS.

New Zealand Mail, Issue 1264, 21 May 1896, Page 16

WELLINGTON TRAMWAYS.

Seeing that a considerable amount of interest is being taken by the public in tho proposal that has been ma lo to run a line of electric tramcars in AVellington, a representivo of tho New Zealand Mail had a chat on Tuesday with tho Hon Dr Grace, M.L.C., who has been connected with the present tramway service for many years, and who, it was thought, might throw some interesting light on its past history and the present situation. Dr Grace stated that tho present tramway.-: were started 20 years ago by ten prominent AYeliington citizens, who spent no less than X3G.000 on the project. They then made it into a joint stock company, and placed =£25,000 worth of shares in the market, of which he himself took .£2500 worth. AA’hr-n the company was floated he was elected chairman, but when the Glasgow Bank failed the “ bottom fell out of the concern,” as Dr Grace expressively put it. The promoters lost about X 14,500, and when the tramway was put up for sale by public auction the late Air K. Greenfield and himself bought it, being the only bidders, at .£15,075. Since then they had spent on the concern X 10,000, and it had been calculated that all they had received in return was 11 percent, on the capital invested.

IJUT THE COJM’ORATION HAS GAINED A I.IOO D DEAL. “ The Corporation,” continued Dr Grace, “ havo benefited considerably by that expenditure. Each year we have spent from XSUO to XGOO in the maintenance of (lie middle of the road the whole length ot the tram lino, and in addition we have, under the terms of the lease, paid the Corporation an annual sum varying from ,£IOO to XISO. In fact, it cost us an average of XGUOO a year to run the tramways. “ Jtisnow contended that the Corporation should share in the profits, but really they have received the whole of the profits, as wo maintained the roadway from the Manualalu Railway Station to Newtown Turk, and paid them Xl5O a year, while the public have been carried for ljd each, a distance of four miles—a state of things that is not equalled anywhere in the world. Replying to further questions Dr Grace said:—"ldo not know exactly what the tramways have cost us, but wo paid everybody always, although at the tirno the hands struck, two or threo years ago, wo were running at a loss. In fact, tho only time wo have had a profit is sinco Mr Hall took over the trams, as ho paid us XIISO for the first five yeais, and XISOU nut for tho last three years.” THE PRESENT POSITION OF AFFAIRS.

“ AVo got a 15 years’ concession from the Corporation, of which eight years have expired, and wo also got an undertaking from the Corporation that a month before the expiry of our lease the whole concern should bo valued, that then wo should bo at liberty to oiler a rental for the tramway, and if anyone chose to oiler a higher rental bo had to buy the service as a going concern. Those are the conditions, and nothing can bo done without us. These people who are proposing to start an electric tramway hero havo been made an offer by us, after lengthy consideration on our part, and instead of only taking tho seven years which remain of the lease, they have applied to the Council for an extension to 20 years, at the same timo offering to put down such a service as the city may justly bo proud of. “ As a matter of fact, wo havo always been sellers, but this is the first offer that has been made to us, and the reason we want to sell now is that the heirs of the late Mr Greenfield want the interest on the money he sunk in the concern, and it does not suit me to have a forced sale of my dead partner's properly and buy his children’s share. Therefore, although it is contrary to my policy, I have stated a price and am willing to accept it, as under these circumstances I am not in a position to refuse to sell, although it; deprives us of prospective profits and the chance of the tramway being a valuable concern in seven years’ time.”

As to the action of the Corporation, Dr Grace remarked in conclusion, “ They have had a splendid offer made them, and would be foolish not to accept it at once, as they will never get such a chance again.” THE I’KOI'OSALK FOR THE ELECTRIC SYSTEM.

From another source wo learn that tin.; promoters of tho electric system of tramways are a wealthy Loudon syndicate, who are prepared to spend a:-; much as iIIOU.UtJO in tin.' concern, provided they can "et tho concessions asked for from the (.'oijinrutimi. Should these concessions, however, not he granted, there seems to he every probability that the offer w

Ur;nvn, as unless a lease *jiiu '>!rtained it would not pay to expend ;i large sum of money and pul down a motor, which would probably have to bo moved at the end of a very few years. The proposal, it is understood, is to lay down a double lino of rails through the broader streets of the city, so as to facilitate a faster service, to lay a line of rails and run a service of cars from the Government Railway Station, Thermion, 1o the Karori Cemetery, and eventually in all probability to continue the existing line to island Bay and Kilbirnie.