TRAMWAY TRADE.

Press, Volume LXI, Issue 18402, 8 June 1925, Page 9

TRAMWAY TRADE.

TO THB EDITOR 01 "THt FBKSS." Sir,—ln yoar leading article of today's issue yon say that "the only element that really matters when it come:? to buying or selling is the percentage of profit ou the turnover." But are you not overlooking the equally important question of the turnover itself? Is it not essential to consider the percentage of profit on. the turnover in relation to the turnover? A farmer may produce- a pound of wool tor a penny and sell it for half-a-crawn, 3000 per cent, profit, but if his "turnover" is only on© ctrt. of wool his total profit, notwita-

standing the high percentace of _ profit. would givo liim a poor return tor tee year. Similarly cue retailer in.-y maM> i>er cent, profit on his sales '« gloves, and another retailer «i ly •»> per cent., but owing to riitt.rvitee >" turnover tho latter "ntay i:<:ike a tortnno, while tho former "makes the -e----quaintaneo of the Official A^igute. Applying this to the tramway?, it seems obvious that the profit in Christchurch Uiio; suii:iie:it to meet tho interest and st:T.dinc charges, hence the Board's anxiety ■••» increase their percentages of pront m order to meet overhead charges. Am I not right in assuming that the jelling price -per car mile (Is <Ud> represent* the total revenue £2G6 071. the cost car mile (Is OJiU represents expenses ilSo.ttiS, and the- profit i~*j! > coes to meet interest and other standing charges £91,243? lam quoting the sterling totals from the June timetable. The total of operating expend" 1 and. standing charges is £2"«!.270. ami the revenue £2HV3,071, leaving a defieiencv of £lo.iXV>. Evidently in Christehurch there jw notenough margins or ear-mile profit* of ojd each to make an anmnnt sufficient to meet tho interest and standing charges, £91.246, showing that turnover as veil as percentage of profit >■» essential to make tho year'* trading successful. Do you not" overlook turnover itself iu your leading article?— Yours, etc., ACCOr.NI AM'. June oth, IWS. "Accountant."—Wo did not overlook the element ef turnover. isec our article this morning.—Ed., "I'he Press."

TO TH* EDITOR OF "THI! *B*SS.** Sir, —It has been said on various occasions that Christoliurch has a much greater mileago of tramway track than any other of tho cities of New Zealand. In that case, although the proat here, per car-mile, is nearly equal to that earned by tho tramways in tho»o cities, it is not enough to pay coats and provide for interest on our larger outlay and for sinking fund, etc. It is not necessary to conclude that tiwr* is expensive management because »e find it difficult to pay our way in tramway matters. Some of our lines extenUinto parts of suburbs not thickly populated enough to furnish a paying tmta traffic; and in some directions, tor instance tho New Brighton lines and the Sumner line, thero are considerable stretches with few inhabitants, white from the Hospital to Deans' Avenue thero is not a house. # Unfortunately tho bus developed a few- years too tote to save tho adoption of tram transport to meet tho needs of the suburban districts. Tho unking fund provision has been alleged to be excessive, hut in Ttew of tho fact that tho scrapping of tramways has already been started in other countries, it is reported, a good sinking fund is essential. Cuttinj; out stops is not a good thing to attempt. It would certainly annoy some people at a time when irritation is most undesirable, and they might turn to other means instead ot walking further to a tram stop. As to much lower fares, no doubt the Board feels certain that it could not. by that method, increaso profits. It must W remembered that if hairing the fares would double the number of passengers and so give the same revenue, the profit would be less than before, owing to tho extra cost of carryuis the greater traffic. It is a pity that there is not a war to make a real test of the feelings of the people as to low fares and more frequent services, with the certainty of a rate if a deficiency resulted. Also that there is not machinery for the recall of a Board # the people as a wholo aro really dissatisfied with the tramway policy. If we mako a mistake in our choice of tho member* of a Board, wo should be able to make ' another attempt to elect suitable men, and to cancel "the previous selection. Such an election need not cost much, a3 there aro citizens, who would grra their services as polling officers, and others who would lend their premise* for polling June 6th, 1925.