Mr. Allum Seeks Aid for Transport Loan

Sun (Auckland), Volume III, Issue 642, 19 April 1929, Page 16

Mr. Allum Seeks Aid for Transport Loan

CHAMBER OF COMMERCE TALK COUNCIL WILL NOT ADVISE "The transport undertaking has reached a critical point. After two years of effort, the fosses have been overcome, and the undertaking has begun to pay its way,” said Mr. J. A. C. Allum, chairman of the Transport Board, speaking on the Transport Board’s loan proposals at yesterday's meeting of the Auckland Chamber of Commerce. “'T'HE question of the means of transport,” he continued, “has been almost completely settled, all parties having modified their views considerably. I wish it to be understood that the transport undertaking has been paid for absolutely by itself, and that no help has been received from the rates or the municipality. “Many people have a vague idea that the board has been receiving city money in order to carry on, but this is not so. All expenses have been met simply by the income derived from the operation of the service, and, furthermore, the undertaking has not depreciated in value in any way. That is to say, the assets have been fully maintained at their original value.” Mr. Allum explained to the chamber that many of the proposed extensions would become profitable immediately they began to operate, for the reason that the schedule of works and improvements had fallen some three or four years behind time. Since the major proposal—the one by which it was hoped to get authority to borrow £526,600—w0u1d take from three to four years to complete, and because the money would only be borrowed as required, it was anticipated that nearly all the extensions would immediately become sufficiently profitable to pay interest, sinkingfund, and all charges on them. He asked the chamber to give the proposals its official support on behalf of the business men of Auckland. Mr. A. G. Lunn said he thought, the members of the chamber supported the proposals, but he did not think that the chamber could advise the people of Auckland how to vote. The president, Mr. H. T. Merritt, agreed with Mr. Lunn. The council, he said, hesitated to advise the people cri a question which it had not gone into thoroughly and with a complete knowledge of the facts. He thought, however, that he could assure Mr. Allum that the members personally were unanimously in favour of the Transport Board’s proposals.