CITY TRADING

Otago Daily Times, Issue 22397, 19 October 1934, Page 5

CITY TRADING

DEPARTMENTAL RETURNS • SATISFACTORY POSITION DISCLOSED INCREASE IN NET PROFITS At the meeting of the Finance Commit-; tee of the City Council yesterday afternoon the following particulars regarding, the activities of the trading departments for the six'months ended on September 30 was, submitted by the city treasurer (Mr H. H. Henderson):— PROFIT AND . LOSS ACCOUNTS The comparison of net profit with the corresponding period of the previous year is .as follows (shillings and pence omitted): — ... . Net profit., Net profit. •' •’ Sept. 1933. Sept. 1934. • £"•'-£ £

’ . .... £37,230 £43,720' *£6,489 * Increase, f Decrease, ; WATER DEPARTMENT. The: increase in the profit of the Water Department is dud to the, fact that the 1933 period had'to bear loan'flotation expenses' in London' • amounting' to £3041. There is little variation in the other items of expenditure. The total revenue shows an'- increase of £113."' : .GAS DEPARTMENT, . The revenue frOm the gale of gas shows an increase of £472, but the return from residuals is reduced by £360. The total revenue lias increased by £64. The cost of coal shows a reduction of £645 although the output of gas was increased. This is due partly to the manufacture of water gas for a short period, but principally to tiic better output per ton o: coal. The increase in net profit is practically due to the fact that the 1933 period had to bfear an additional charga of £957 for loan flotation expenses in London.■ There i s no material change in the other items of expenditure. ELECTRIC DEPARTMENT The revenue from domestic consumers shows a drop of £l2O, This, however, is due to the reduction in price during the past half-year from Id to 2d for the secondary units. This concession is equivalent to an allowance of about £2500 to the end of September. Business lighting shows an increase of £1670, while the revenue from power has increased by £5914 ; This latter figure, is satisfactory, and indicates some revival in manufacturing business generally. On the expenditure side the ■ cost of generation and the general expenses have- been reduced by £1550, but the cost of distribution shows the substantial increase of £3500 as compared with September. 1933. . , TRAMWAYS DEPARTMENT

The traffic revenue of the city tramways has just managed to hold its own, there being an' increase of £4O as compared with the corresponding period in 1933.

The total outgoing are increased by £666, which is mainly due to the 2% per cent, increase granted during the half year. ROSLYN TRAMWAY.

The Roslyn t.ramway revenue has further decreased by £92, while the total outgoings have increased by £146. Trouble with tlie rope has been the main cause of this increase. MORNItfGTON TRAMWAY. The . Mornington tramway , revenue shows an increase’ of £SB, but the tbtal outgoings have increased by £649, of which interest accounts for £IOO, traffic expenses approximately £IOO. and the balance is due to rope trouble and additional maintenance work. BUSES, Bus revenue has increased by £4ll, and on the other hand the working expenses show an increase of £395, while renewal fund contribution and interest account for a further increase of £7B. The total tramway profits for the half year amount to £2401, as compared with £3919 at September, 1933, or a decrease of £lslß. .. Generally speaking, the revenue has held its own, and the increase of 2J per cent, on wages accounts- for the decline, in profits. ' ’ STATEMENT BY CR ALLEN Commenting on the above figures, Cr A. H. Allen, chairman of the Finance Committee, stated that the results in the aggregate were quite satisfactory. Increases were, shown by the Water, Gas, aiid Electric Power and Lighting Departments, as compared with the corresponding six months of 1933. On the other hand, the Tramways Department, in all sections, had shown a decrease in profits. . Cr Allen explained that the figures relating to the Water Department s activitiesT’equired some elaboration. The position was that in the 1933 period loan flotation expenses in London had amounted to £3041, so that when comparing the net profit for the two periods :this item had , naturally to be taken - into consideration. In a similar manner the increase in profits by the Gas Department bad been • assisted by the • fact that in the . figures for the corresponding period an expenditure of. £957 had been incurred in loan flotation expenses in Loudon. Cr' Allen said it was very gratifying to note that there was an increase in business lighting of £1670, while the consumption of power showed an - increase of £5914. This went to indicate a welcome revival- in business and manufacturing activities respectively. Though the income from the Tramways Department showed, a slight increase, the net profit was less, mainly due to the reinstatement of 2J per cent, in the wages cut.

Water Department ..... . . 25,731 ■ 29,663 *3.932, Gas Department 4,439.. 5,288 *848 Elec.. Depart*3,932 ment .. .. 23,To 1 29,663 City trams ,. 1,999 1,373 f625 Roslyn trams .. 319 110 +238 Mornington trams 1,402 >■ 811 +591 Motor buses .. ... .467.: ' 105 , +62