A YEAR'S PROFIT.

Star (Christchurch), Issue 10442, 23 April 1912, Page 3

A YEAR'S PROFIT.

TRAMWAY BOARD'S SURPLUS, £2531. OPERATING COSTS SHOW DECREASING PERCENTAGE. The revenue account for all lines in tho tramway 6ystem was laid before the Tramway Board yesterday. It showed a surplus of £2531 on the year's working, and the figures were referred to with considerable satisfaction by the chairman. Detailed figures, compared with those of last year, were as follows :

Surplus (all lines) 2,219 6 0 2,531 17 3

"You will be glad to know." said the chairman (Mr G. T. Booth) in presenting the statement, " that the figures for last year's operations disclose a surplus for the year of £2532. Tho surplus to tho end of March, 1911, was £2219. In making a comparison between the two years, however, it must be noted that no Easter traffic was included in the year 1911, and there was no income from advertising. These two items represent about £2200, and, deducting them from the figures for this .year, it would appear that this year's surplus would bo about £332. The actual surplus, however, is larger than was anticipated' two or three months ago owing to tho receipts being greater. The gross revenue for tho year is £124,017, an increase of £11,519. We carried in 1912 a total of 15,183,108 passengers, or roughly one and a half millions more than in 1911. One of the most satisfactory features disclosed is the percentage that the operating expenses liea.r to "the other figures. Whereas the car mileage for the year showed an increase over the previous year of 18.78 per cent and the revenue an increase of 10.24 per cent, the operating expenses, which might be expected to increase at least in proportion, show an increase of only 8.74 per cent. In other words, the operating costs per car mile were 8.29 d, whereas in 1911 they were 9.05 d, and in no previous year did they fall below ninepeuce. To put it in still another form the operating oasts per ear mile in 1912 showed a decrease as compared with the previous year of 8.39 per cent. The percentage of operating oasts to revenue was 59.65 per cent. It is interesting to note in this connection that the average percentage that the operating expenses bore to revenue of tho four principal systems in New Zealand in 1911 was 60.57 per cent, Ghristohurch being just below the overage with G0.48. Dunedin was the lowest with 53.31 per cent. The only figures available for 1912 are those of Dunodin, which have jumped up 4.34 per cent, making it 57.65. Christchurch has gone down by a_ small margin. The increase in Dunedin for 1912 is probably duo to a decrease in revenue in consequence of fare concessions. Tho concessions in Christchurch, howover, are very much greater than in any other system, and if it were possible to arrivo at tho amount by which they affect the revenue, it would bo found that Christchurch compares more than favourably with other centres. I am glad to report in this way on tho operating costs, because it indicates that some of the criticisms of the Board of extravagant) and inefficient management havo not been justified. So far as the Board's administration and policy are concerned, I "havo nothing to say, but it gives me great pleasure to recite these figures because they vindicate tho executive officers and staff." (Applause.) Mr C. M. Gray said that it must not bo forgotten that tho Board had just entered on a new system of operating expenses which would increase the Board's expenditure. The new Arbitration award would increase the wages shoot next year by £3OOO or £3500.

1911. 1912. £ s. d. £ s. d. Gross earnings from operation . 112,498 18 7 124,017 3 7 Operating expenses 68,038 11 7 74,041 7 2 Net earning* 44,460 7 0 49,975 16 S Deductions— Interest 19,665 lfl 1 22,916 4 0 Sinking Fund 2,23o 0 0 2,559 14 3 Proportion Dunt Abatement 23-2 1 9 232 1 9 € B. d. £ s. d. Net income . 22,791 15 8 CM.731 19 11 Deductions from . net income — Depreciation reserve fund 9,723 IS 0 10,479 1!) 7 Renewals fund 9,728 15 0 10.479 19 7 Fire reserve fund 562 9 10 620 1 0 Public, accident reserve fund 6G2 9 10 620 1 9