The Taranaki Herald. DAILY EVENING SATURDAY, MAY 31, 1919. THE TRAMWAYS.

Taranaki Herald, Volume LXVII, Issue 16448, 31 May 1919, Page 2

The Taranaki Herald. DAILY EVENING SATURDAY, MAY 31, 1919. THE TRAMWAYS.

When the tramways system was installed a litte more than three years ago it was not expected that they would earn much more than working expenses during the first two or three years. Mr. Bartley, in fact, in his first report, expressed the opinion that the revenue would not be sufficient to meet all outgoings until at least the fourth year’s running, after which it should be sufficient to make some provision for depreciation and to dispense with a special rate. In the first year the revenue amounted to £9474, in the second to £10,231, and in the third to £10,051. The latter year’s takings were sadly interfered with by the epidemic of influenza which compelled an entire cessation of the services for three weeks, with a consequent loss of five or six hundred pounds. During the year,- too, there was little or no extraordinary traffic due to large country school picnics or visits of large steamers to the breakwater. Under ordinary circumstances the revenue would probably have reached £II,OOO, which would have covered working expenses and interest and sinking fund charges. The working expenses for the three years totalled £6847, £8096, and £7618, but in the first year the full service was not installed for some weeks after the commencement. Last year some economies were effected, but we may count upon a total of about £BOOO for the current year. Up to the present the revenue during the current year has shown a marked increase, and if this is maintained, as it is likely to be, the total should be well in excess nf £II,OOO, or sufficient to cover working expenses, interest, and sinking fund, and leave a small surplus towards depreciation and renewals. Last year the nett loss, omitting depreciation and renewals, was £836. This year this loss should disappear. If it does there will be every reason for satisfaction with the results, and the borough enterprise will be more than justified. The capital expenditure on the tramways to date amounts to £55,262, and the sinking fund accumulations amount to £1279, in addition to which depreciation to the amount of £2588 and renewals £6689 have been charged against the undertaking. These items bring the nett debit balance up to £12,007 as the result of three years’ operations. The actual loss for the three years, omitting depreciation and renewals fund, has, however, amounted to only £2521, which cannot be regarded as unsatisfactory. A source .of loss has been, and still is to some extent, the Morley Street section, which is too short for profitable running. When this is extended to Wallace Place it will be a profitable service, and we hope the council will he able before long to put this short extension in hand. It is barely half a mile, hut it would catch a large traffic which is not at present served, except by the electric bus, which could then be diverted to another route. At present the obstacle to extension is tfye difficulty of obtaining the requisite rails, but this should soon be overcome, and we hope the council will put the extension in hand as soon as practicable.' We never had any doubt about the success of the tramways, but even the most sceptical must now be satisfied that the undertaking was warranted and that an extension will pay wherever the population exists, as it does in the Westown district. It must not be overlooked that against the small loss the tram-

ways have made there is a profit in the general electrical undertaking, to which the tramways last year contributed £1489. Upon the whole therefore the borough has r eason to be satisfied with its tramways, which are not only exceedingly well equipped and conducted, but are an asset of great value to the town, and reflect great credit upon the management.