DUNEDIN AND KAIKORAI TRAM COMPANY.

Otago Daily Times, Issue 13860, 25 March 1907, Page 3

DUNEDIN AND KAIKORAI TRAM COMPANY.

to tiif: ediiob. Sin,—My first thoughts after the meeting of tho Dunedin and Kaikorai Tram Company on the 21st inst. worn in tho direction of concluding that probably tho interests of shareholders would not suffer because of a little stirring up—even, if some might add, of mud,—although I am clear that there was no such intention. Since the meeting the matter of honour ajid of good taste—oven wore- it amongst thieves—has been very forcibly raised to myself and others. Neither of the said considerations would liavo been sufficient to induce me to write to Ihe press, but hour after hour tlic demand has become more and more clamant in my mind that shareholders .s'hould be warned-'-even urged —not to sacrifice their interests by selling their shares as the result of .scare, without duo and careful consideration. I repeat now part of what I said to the share-

holders at tho meeting, "that I am not dismayed, nor even disheartened, because of anything said to-night, believing that the company is in a. sound and safe position and will continue to justify its existence find give to shareholders a'fair return for their share capital." I also gave figures at tho meeting in support of tho chairman's statement that, in respect to "maintenance and repairs" there was at least, £300 of probably abnormal and nonrecurrent expenditure, which, if taken into account, would explain the comparatively high figure at which that, item stood i'n the balance sheet. One item of £100 in the figures quoted by me was challenged, and it was said the amount (£100) hail been debited to " road improvements." I have since ascertained that I was only partially in error, and that, I would have been correct had I put about £50 of tho £100 to " repairs and maintenance," so that the chairman's statement in respect, to abnormal expenditure was certainly not an extravagant one. Further, it should be borne in mind that in addition to tho exce?s expenditure to which I have alluded there was the. cost of a. new cable (nearly £400) charged in last year's amounts. This will not be recurrent in evory year's accounts, although, as a. mailer of fact, there will lie ono chargeable to tho accounts of the year now running. On the other hand, there lias lor some years past, been expenditure on alterations of various portions of tho original equipment cf the line which will not bo annually recurrent, as some- of them will last- for many years. The main question for tho consideration i)f shareholders, it appears to me, however, is this: Has there been extravagant expenditure, and, if .so, on what, or iu which direction? And again, if there was such extravagant expenditure, why was it not. brought under the notice of those, members of the board who did not, seem to bo alive to it? For it will be noted that 'complaint was in only general terms as to the. increase of "maintenance and repairs," without, any definite specification as to where and how, and it has been at least attempted to show cause for and explain some of these increases, and tho probability that—bar accident—they will not bo constantly- repeating increase. l :. I also conclude that an estimate of expenditure, per car mile, for one year for tho purpose of comparison with 'the expenditure ,of any other year is bound to be misleading if one cE the years compared is at all loaded with any abnormal expenditure and that is tho case—in at least some mcaaurc-in respect to the year 1906.

It will bo noted by anyone examining the published figures submitted to the meeting by Mr Roberts that tho increases in the items "salaries ami wages" and "fuel" arc almost negligible Discussion on the item of "fuel" has boon frequent and fre-o. and the results brought out by ilio figures appeared to surprise their author, if the semi-apologetic lone, in which they were spoken of was any index. Sir. I decline, to believe that a company which—as I pointed out at the meetinghas increased its receipts in five years by over 62 per cent, can bo in a very bad way because of an increase of expenditure which is explainable, and will probably bo in the future, interests of shareholders.— I am, e!c. Alex. Sligo. March 23.