DUNEDIN AND KAIKORAI TRAM COMPANY

Otago Daily Times, Issue 21601, 23 March 1932, Page 11

DUNEDIN AND KAIKORAI TRAM COMPANY

ANNUAL MEETING The annual meeting of shareholders in the Dunedin and Kaikorai Tram Company, Ltd., was held in the Salvation Army Hall, Highgate, Roslyn, last night. Mr Alexander Sligo (chairman of directors) presided, and there was an attendance of about 25 shareholders. A resolution of sympathy was passed with the relatives of the late Mr J. A. Ainge, a director of the company. ANNUAL REPORT. The thirty-seventh annual report for the year ended January 31, stated, inter alia: —The traffic receipts for the year totalled £10,870 13s 3d, being a decrease over 1931 of £902 10s Bd, as against the previous year. The cars ran 35,154 trips, covering in all 79,096 miles; carrying 554,278 down passengers and 719,963 up passengers, which is 93,212 passengers fewer than last year. That the company has, in common with almost every_ trading concern in the community, experienced a decided fall in revenue will not come as a surprise to shareholders, and the wisdom of building up solid reserves is this year fully demonstrated. The profit from trading for the year (£959 13s 9d) would not have paid the usual dividend, but as interest on investments (£370 8s 6d) represents a matter of 3 per cent, we are in the meantime _in a position to maintain our dividend. It is gratifying to be able to report that, notwithstanding a rise in the cost of coal from 24s to 25s 9d per ton, our fuel consumption cost is down to the extent of £l7B 17s Id, as compared with the 1930-31 period, and shows actually an improvement of £469 10s 9d on the figures of 1927-28. The rope used during the period under review gave results somewhat above the average, with a life of 448 days at a cost of £IOO for repair, as against the previous rope’s 330 days, with a repair cost of £133. This really represents a saving of £134 in rope cost for the year. The cost of maintenance and repairs is less on this occasion by £455, Wages and salaries cost is less by £313 14s lid, principally on account of the general cut made in wages, which your directors considered it but just that they also should share. It will be noted that a further sum of £IO9B 10s has been invested m Government and municipal securities. An interim dividend at the rate of 10 per cent, per annum for the half-year ended July 31, 1931, was declared, and a further dividend at the rate of 10 per cent, for the half-year ended January 31, 1932, is recommended. Your director’s feel a deep sense of satisfaction in the fact that our balance sheet now shows a general reserve equivalent to the capital of the company, and would suggest that, to mark the shareholders’ appreciation, the sum of £SO be voted to the relief of local distress. ADOPTION OF REPORT.

The chairman moved the adoption o£ the report and balance sheet. In doing so, he said he was sure they would all admit that the circumstances of last year were hard, and that the company had got through it showing a reasonable pn°nt was very satisfactory. Mr Sligo spoke of the early affairs of the company, when in days of adversity some people said. that a short time would see the end of its existence. Notwithstanding the efforts then made to spoil the concern, it had come through with profit to itself and with advantage to the residents of the district. During its whole career sterling service had been rendered to it by Mr A. harry, the “father” of the directors— (Applause.) In connection with last year, though a downward tend in traffic was shown, the directors could still declare a dividend ot 10 per cent, for the year. However, on the results of the last month or two the directors would have to consider whether the company could pay 10 per cent, next year without encroaching on the reserves. From February 1, on which date the company’s year commenced, to March 18 there was a decrease in the receipts of fill l“ s » and if the decrease should continue at that rate the total decrease for the year would be about £7OO. The chairman also pointed out that reductions had been made in the I'unning costs, while wages had been cut down, but all the same the directors would have to be careful if the company was to maintain its position as a dividend-paying concern. In regard to Sunday traffic he said that during the year tbe average receipts on Sundays were £l2 2s 6d a day. while the actual cost of running was about £l7. Of course, the staff was paid doubletime rates for Sunday work. Ihe directors approached them, saying they did not want to make any serious inroad into their earnings, but it was essential that the shareholders must be considered. .However, no arrangement was come to in the matter. The position now was plain—that unless some change could be made in the running costs the Sunday traffic would have to be either closed or curtailed to a 20-minute service. If the Sunday traffic were cut out it would be doing an injustice to the people of the district, on whom the company .was relying for support. It certain proposals were agreed to in the Arbitration Bill, now before Parliament, it would be necessary for the directors to make a move in respect to an alteration in costs. If that alteration .were not brought about the directors would have to consider the absolute closing down of Sunday traffic. — (A voice: Why not charge more?) The directors, said Mr Sligo, had considered that question, and had learned that the experience of tramway companies that charged more on a Sunday was not favourable, as an increase in revenue had not followed. Further, the company was debarred under its license conditions from raising the rates on Sunday. Mr Sligo also said that, to mark the fact that the company had now a reserve of £12,000, ■which was the amount or the capital, the directors had given the sum of £SO to local distress. Mr E. Sunderland seconded the motion, remarking that the company was to be congratulated on its success. He asked tor an explanation of the item of bad debts in the balance sheet. The chairman, in reply, said the debt was an amount owing by the Onakaka Iron Works, which had gone into liquidation. The motion was carried. GENERAL.

Messrs G. A. Laurenson, J. H. Heaney, and E. Sunderland were nominated for the two vacancies on the directorate, and as the result of a ballet Messrs Laurenson and Heaney were elected. Messrs Barr, Burgess, and Stewart were re-elected auditors. ~ Votes of thanks were passed to the directors, the management, and the stad for their services during the year.