DUNEDIN AND KAIKORAI TRAMWAY CO

Otago Daily Times, Issue 13858, 22 March 1907, Page 6

DUNEDIN AND KAIKORAI TRAMWAY CO

DIRECTORS 'ADVERSELY • CRITICISED. A I3REEZY MEETING. Tho hvelfth annual meeting of ihc Dnnedin and Kaikorai Tramway Company was held in the Town Hall, Roslyn, last cvening. There wns a fair attendance of shareholders, Mr H. A r Haddock presiding. The following directors were also prcsnnt— Messrs j. Wright, A. Sligo, K A. Smith, K. Roberts, and C. F, (ircon.slado. An apology for ab.?oncc was rcccivod from Mr A. Ferry. ■ The report showed that, notwithstanding tho fact that passengers arc carried to the Valley by nnothcr company al6o. the receipts have incroased. Tiro' total traffic receipts amounted to £6722 15s. Tho total mileage run was 66,7685 miles, an i n * croaso o£ miles, rcpvcscnting an additional 426 i rips. The number of passengers earricd was 545,395 up and 341,793 down. Tho expenditure on maintenance and repairs is greatly in excess of last year. This is partly accounted for by tho ears being renovated and brought tip to date during tlie year, repairing the crossing at High street, and new telephones on the line. Tho wages have also increased consequent on the award of the Arbitration Court. Tlie Chairman, 'addressing the shareholders, said: "You have had tho report and balance sheet before you, and at this stage it is not necessary for me to say anything about it. I can only congratulate you on the successful year, hut before moving the adoption of the report and balance sheet I shall he very pleased lo answer any questions." Mr "NVilkiiipOn said lie would also accept the invitation of the chairman to ask a question. The item for maintenance (£1450 9s) was very much increased as compared with last year. Tho shareholders desired an assurance "that, some of tho expenditure should be non-recurrent, otherwise an alarming ■ <-tato of affairs would 6oon bo established. During the past 12 months tho cost of maintenance bad been nearly doubled.—(Cries of " Xo, no.'') Mr Wilkinson: Well; it. has increased by £300. Surely there is some explanation. The Chairman: I can explain. When the facts are considered tho increase is really slight, and is embraced in the three items: Alterations lo cars (about( £200). alterations to the crossing at High street, and new telephones (about £100). These expenses, to some extent, are. non-recurrent. f Mr Roberts: I lliink I can throw some Sight on this matter. We certainly shall have to elaborate some sohcnic of placing/ a greater check on the. finances of the companv. From tho balancc sheet I should ill®.? that unless we- reduce the increase in repairs and maintenance we shall not be able to declare a dividend next year, and the following year we shall not bo able to keep pace with our expenses. I have examined the position of tho company, and I think I shall show you a-condition of niTairs surprising as well as hateful.— (Applause)" The following is an analysis of traffic receipts and expenditure in the run. ning of the cars for the past five yoarslt— For Year Ending 31st January , 1903. 1901. 1905. 19QG, 1907. £ £ £ ' £ £ .Receipts from traffic . .. , r >,BGG G,I(H G,GiO G. 713 6,725 Salaries and wages .. 1,820 1,949 1,996 2,037 2,120 Fuel account 565 SSG 670 G92 705 Maintenance and repairs 618 809 912 1,182 1,150 Car mileage.. 58,359 01,630 65,435 65,810 C 0,783 It will lie seen that tho fuel account, shows a considerable increase. Maintenance and repairs, to which Mr Wilkinson alluded, has increased during tho past 12 months from £1182 to £1450. Sow, I have allocated these items per car mile with practically no variation in.receipts, for although wo have increased our traffic our receipts per car mile have remained just about the same. (Tho speaker read a tabulated statement in support of his remarks.) It will be seen that our total expenditure for salaries, fuel, and maintenance and repairs' in 19G3 was 12.56 d per car mile, while in 1907. our expenses were 17.75 d, and other eliarges equal 22.6(1, or nearly 23d, per ear milo. We are, therefore, approaching a stage at which we shall neither make nor lose. Surely ibis is a matter affording littlo for oong'ratula.tion, although your chairman has congratulated you on your successful year. As a member of your board of directors, I cannot let this matter go on further without, some ' protest— (applause)—at the want of their efforts to curtail the expenses. It. has-been found in

ovory company in llie "world that expenses increase the older the line is, but, so far in our history we have not contended 'with having to pull up vails, and only the ordinary expenditure lias been incurred. Yet you find the total expenditure per ear mile advanced during the past 12 months from 14.27 dto 17.75 d. - Necessarily, you will he soon forced to meet additional expenditure, and it ivill need a period of economy and wise management to keep those expenses down. The shareholders are justified in insisting that iho directors shall redueo expenses, otherwise the company will lie falling into liquidation. I should be very sorry to sec anything ot the kind happen, and I hope my statement will have the effect of having tho expenses kept within their proper limit. In tho future the directors will linve to exorcise more judgment than they have in the past.—(" Hear, hear.") AVc have put nothing aside for renewals, and we have made no allowance for the reduction of our assets, as every prudent company should.—(Applause.) Mr Burton: I think Mr Roberts's re-

marks are a reflection on the manager, and I should like the manager to be given a chance to make some explanation. Tho Chairman: Mr Roberts's remarks are a slight on tho directors as well as the manager. A Shareholder: Is Mr Roberts's explanation made as n director or as an engineer? Mr Roberts: As a director. Mr Sligo: Tho point before the meeting is, Should tho manager be permitted to make an explanation? ■ Ml- Roberts: Thoro has been no reflection on the manager. As directors, we arc here to account for what wo have done during the past year. Wo are not here to listen to explanations or controversial matter. We. as directors, have sanctioned this expenditure, and therefore wo lire liable.- Tho manager is auswcrablo to the directors, and tho directors arc auswcrablo to Iho shareholders. We don't want a repetition of the scene we had last year, when the manager practically delicti the. directors. The Manager: I object to that remark. Mr Roberts: If the shareholders had known the facts I have given, I think there would be more hero to-night for tho reelection of the directors. Mr M'lntyro moved, and Mr limiting eocondcd—" That tho manager be heard in explanation." The Chairman declined to take the motion. A Shareholder: The increase in maintenance and repairs is alarmingly large, and more economy should be practised. Nothing has been written off for depreciation, and there is some ground for Mr Roberts's remarks. Tho Chairman: Mr Roberts .lias been present, at all of our meetings, and this is the first time I have been made acquainted of his elaborate report. A Shareholder: What is the life of a rope on the Kaikorai tram? Tile Chairman: About 10 to 12 months. We get the very best rope. A Shareholder: Is tho construction of tho lino to blame? Mr Roberts: The second rope used lasted 20 months, and the construction of tho line was the same then as now. The report and'balance sheet were tlicn adopted. A Shareholder: After the report, of Mr Roberts, should not the remuneration of the directors be increased?—(Laughter.) It was resolved, on the motion of Mr .leromso'n, seconded by Mr Calvcrlcy— "That the remuneration to the directors be the same as last year." Messrs Ferry and Roberts wore ve-elccled directors, anil Mr Peter Barr was rcaptrainted auditor. On the motion of Mr Jeromson, seconded by Mr A. Sligo, a hearty vote of thanks was tendered the staff. Tho Manager, replying on behalf of the stafT, said, although some friction had been evidenced that evening, the shareholders eou'/.l accept the assurance that the iKst efforts of all the staff would be exerted in the shareholders' interests. Tho meeting concluded with the usual vote of thanks to tho chairman.