THE AUCKLAND TRAMWAYS.

Observer, Volume XXVII, Issue 46, 3 August 1907, Page 2

THE AUCKLAND TRAMWAYS.

Negotiations Opened For Their Purchase.

MR ARTHUR MYERS has displayed such a strong and enterprizing spirit of progressiveness, and such a readiness of initiative, during the period that he has contrelled our municipal administration that it is quite within the bounds of probability that he will carry to a successful issue the negotiations that he has opened for the purchase by the city of the Auckland Electric Tramways. This is the only feasible and satisfactory solution of the difficulty that exists at present between the local bodies and the company. So long as the management of the tramways is controlled by a directorate 16,000 miles distant from us, and necessarily out of touch with local conditions and public opinion, so long will there be friction and constant irritation.

It must be confessed, at the same time, that our attitude is a childish and pitiful one. Finding that we have entered into a bad bargain for ourselves, we are pettishly and dishonourably making the position an intolerable one to the English investors who conceded our own terms to iis, and invested their capital m good faith in the construction of our tramways. If the bargain had proved an unprofitable one to them, we would not have varied it one iota in their interests by allowing them to charge higher fares or easing the conditions in their favour. That being so, why should we grudge them the profits they are making on the undertaking, seeing that it was open to Auckland investors to take up shares originally on the same terms as the English investors ?

However, prompted by covetous and discontented instincts, we have chosen to regard the Auckland Electric Tramways Company as an octopus that has seized us in its pitiless grasp rather than as an enterprizing corporation that has provided for us travelling advantages that we were not courageous enough to instal for ourselves. They have taken the risk, and, having succeeded, we grudge them their profit and covet it for ourselves. It is a lurid example of selfish cupidity. The nower is in our hands of making the situation an intolerable one for the English investors. Certain of our public men have not scrupled to encourage the trades unionists in a policy of reprisal that is unreasonable and unjust, bearing in mind the conditions that obtain in other communities, while advantage has been taken of the admitted dilatoriness of the company in providing sufficient car accommodation to set up an attitude of unnecessarily bitter and uncompromising hostility on the part of the local bodies concerned. The whole discreditable episode is one that will cause other English investors to reflect carefully before venturing their capital in further* undertakings for the exploitation of New Zealand.

This is the situation that has been created, and these the influences that have been exerted to bring it

about, and the wisest proposal for the solution of the difficulty is the scheme suggested by Mr Arthur Myers for the acquisition of the tramways and their control by a Board of Trust. Of course, it does not necessarily follow that the Tramways Company will agree to sell out, but in view of the harassing conditions under which the service is being conducted, it would be well rid of the property. There are 350,000 shares of £1 each in the Company, with a debenture issue equal to a further £285,100, «o that the price would be something above £635,100. This money might be easily raised by loan, and should earn a high rate of interest from the outset, so that the venture is one that is thoroughly warranted as a sound financial proposition. * * *

Now that it is regarded as desirable to acquire the tramway estate, at a price quite one-third more than the cost of construction, the magnitude of the blunder that the municipality made in ever parting with the tramway rights becomes strikingly apparent. Twelve years ago, when the Observer strenuously maintained that this tramway estate should be conserved as a municipal undertaking, the weight of public opinion was silently but strongly against such a proposal, and the rights were readily parted with under the mistaken impression that the service would not pay at the fares stipulated. The tramways had scarcely commenced running, however, when this gigantic blunder wias recognised. Now we are repenting ourselves of our bad bargain, and doing our utmost to make it impossible for the Company to carry on its undertaking. The" morality of our attitude and methods is very questionable.