AUCKLAND TRAMWAYS.

Otago Daily Times, Issue 19802, 29 May 1926, Page 9

AUCKLAND TRAMWAYS.

REDUCTION OF FARES. LEADS TO LOSSES. (Pfcß UNIT 17 ’' Paras Assornr'ONl AUCKLAND. May 28. lii endeavouring to meet the bus competition the city tramways department reduced the fares, and the gross revenue is £BOOO less than in the previous year. It provided additional services, and the working expenses are higher by £43.000. Te recover some of these losses it drastically curtailed the expenditure on maintenance to the amount of £40,000. W ith the gross profits reduced by nearly £II,OOO. it had to meet an increase of £SOOO in capita] charges, and as a last rasort- took advantage of the strength of the accident reserve fund to ieduced the annual transfer to it by half. It is apparent that the tramways losses have been due to the fares being too low, for, in spite of competition, the traffic has increased in 1924-25. due trams carried 999 passengers for every 1000 car miles. Last year the total was equivalent to 1020 per 1000 car miles. The services were increased per car mileage by 4.46 per cent. The number of passengeis increased by 6.64 per cent. Thus the ground that was" lost in the previous vear In s been nearly recovered in the last year.