MUNICIPAL TRAMS.

Timaru Herald, Volume XIIC, Issue 13673, 15 August 1908, Page 5

MUNICIPAL TRAMS.

To ;the'-Editor, jof „tte,' \ Timaru v • Sir,r—ln -Ito-dayls Herald"' j#tt' 4ajii.rr. "Thb rest of the purplus of ' working : expenses has;.all ,J)een to -meet deftiite ' 'oliaigeis,- -m®d..;tli9'. Tinder ' £35,000 is aUthat w;Ouldi«mam lop payment of - ti dividend trams had "^a>-workedv, : by .company and had produced only tlie same .result.,. Is that correct?Of" the £400,425 ■,£37.6 420 was paid : in rent to> Gfovari.andv.Paiftr. ley, companies* income tajs, .depreciation permanent way renewals, and parliament? aiy expenses, • and in addition' thesof qliarges, intereston" -capital, and (sinking fund. Now woufld not the- interest and sinking • fund, as* depreciation ivhad.'/bee® allowed ! for, have -gone into'the j pockets., of the 6hareho,lders.* in a, .private company aa dividend jin additfon <to '.the ; £34,868j • aiid ; - reekortihg- ifjiose charges <a.t' 4. pet ' cent, would the shareholders not have * received s'■ per-' cent.-? —I am,; .etci, i' ' Socialist.,.:

[Certainly the interest and sinking fund would be 'available for dividends of + tha capital of the -trams w«re r provided by shareholders. Bui; 'the' corporation does not own the capital r it borrows it and of coutso has to pay for the "-use of tb and has also t6 provide a sinking fundi to extingush tho debt.—Ed. T.H.]