TRAMWAY PROFITS.

Dominion, Volume 1, Issue 306, 19 September 1908, Page 6

TRAMWAY PROFITS.

AUCKLAND v. WELLINGTON. The Mayor of Wellington (the Hon. T. W. Hislop) being asked yesterday if ho could givo any reason for the much larger amount received by way of profit from the Auckland tramways than that received from the "Wellington tramways, stated that ho had been constantly pointing out that tlio receipts from each passenger on the Auckland trams was somowhere about 1.47 peneo per trip as against 1.33 penco per trip in Wellington. Moreover, tho sections in Wellington wero longer than in Auckland, aild each passenger got moro for his money hero than ho did in Auckland. "This," ho continued, "would account for a difference of £13,701 in tho receipts. Thon, again, their depreciation is put down at £2376 less than in Wellington. " It has been frequently pointed out," remarked the Mayor, "that the Auckland employees aro paid less than theso here, this fact accounting tor a difference of somewhere about £5000 annually. There is also to bo taken into consideration the fact that if we are to pay regard to tho recent report of tho officers appointed to oxamine the brakes, etc., at Auckland, the plant is not kept in anything liko the stato of repair -of tho Wellington plant. I havo heard it stated by competent persons that it would take from £70,000 to £80,000 to put tho Auckland' plant and track in as good a state of repair as tho Wellington. plant and track. When all these matters are taken into consideration, it will bo seen that tho difference is accounted for. We contend that tho fares in Wellington are based upon tho principle that only sucli a profit as is reasonable should be made by the tramways, and tho system is developing and profits aro increasing every year, sufficiently to meet all requirements of depreciation and replacement, and, in addition, provide a fair sum for extension." VIEWS. OF THE MAYOR OF AUCKLAND. (BT TELEGRAPH—rRF.SS ASSOCIATION.) Auckland, September IS. Tho comparisons mado between tho profits for tho past year by the Auckland Tramways Company and the Wellington municipal tramways havo occasioned somo comment inAuckland business circles. Tho profit made by the Auckland Tramways Company was £32,551, while tho Wellington tramways, which aro under municipal control, amassed a profit of only £5563 for the same period. "Of course," said the Mayor of Auckland (Mr. Arthur M. 1 Myers), when asked if he could account for the difference, "it is generally recognised by business men that pnvato management is on the whole moro successful from a financial point of view than management by public bodies." But do the Wellington ratepayers enjoy any advantages in connection with their tram service which are not shared by thoso of Auckland? "No. The fares in Auckland aro as low as thoso ill' other parts of tho Dominion, if not lower, and the City Council aro in a position, without incurring any responsibility themselves, to make any reasonable demands upon tho tramway company for the officiont carrying out of their obligations under the deed of delegation. Our sharo of the profits last year amounted to £3000, to which must bo added license fees, rates, etc., bringing the total up to close on £4500. The amount received since tho inception of tho' service by way of profits only totals altogether £12,458, and in addition to this there is a considerable saving to the.city owing to the obligation imposed on the company by tho deed of delegation of keeping the tram track portion of the road in order at their own expense. It is, therefore,'evident that , from a direct pecuniary point of view the citizens of Auckland aro apparently benefiting to a much greater oxtont than they would be likely to do under municipal ownership."