TRAMWAY FINANCE.

Dominion, Volume 5, Issue 1432, 6 May 1912, Page 2

TRAMWAY FINANCE.

MAYOR OPTIMISTIC. THE BALANCE-SHEET REVIEWED. Tho lwlnncc-?hcot of the Cily Tramways Department for the year ended March 3J, 191:!, sliows a deercife in net surplus on working of about iMOOO, as compared with (he previous year. It is also shown that (ho average working cost per car mile was 10.5GM. for the post yoar, as against O.SJ-ltl. during the year ended in March, 1911. Invited by si JJomixion reporter to comment on these figures, tho Mayor (Mr. J). M'Laren) reviewed the financial position of tho service in some detail. He.takes an optimistic view, but emphasised Die unwisdom of making extravagant demands upon the service. In tho first place, )io staled that the increased vxpeiiditure for the fast year had been looked for from the very inception of the scrvisi , . The council, he said, had quite realised that as the service grew older, the amount to be spent Oil maintciumcc would necessarily increasi-. Not only had the service to be maintained in good re- | pair, but the council also had to meet maintenance charges on the extensions added to the original undertaking. "What we may have to meet in about .six or seven years' time, in the way of renewals, I do not propose to guess at," continued the Mayor. "The amount, in my opinion, should be arrived at by obtaining un estimate, from our officers, of the cost of taking up and relaying such portions of the line as require to be renewed, or of other works of a similar character. When wo-have that estimate then we can say definitely what is required as a yearly contribution to make the financing of such renewals absolutely safe. This does not menu that we will wait until any speciai demand is upon us, but simply that the provision to be made, year by year, from now onward, shall he based, on some fairly accurate estimate of what will be required either throughcut or at any special period." As indicating that the present financial position of the tramways gives no cause for alarm, Mr. M'Laren stated that, since the inception of the service in 190 C, a sum of over .£303,001) had Jieen spent upon new works, Following arc details:— Electric cars 30,000 Other rolling stock », 1,288 Electric equipment of lines 2,911 Additions to power station 25,778 New buildings 15,391 Land purchase 11,826 Track extensions f1,:?33 Extensions of power supply 1,791 Workshop tools and machinery ... • 504 Automatic point controllers 570 Car-building workshop and plant... 1,262 Office furniture 145 Purchase of part of Miramar lines within city boundary 4,212 Total ,£105,620 Of the total allocated as above, Mr. M'Laren stated, came, from the depreciation fund, and, iIS.OCO direct from revenue. In addition, the sum of *E33,488 had been provided for sinking funds and .£4904 had 'been transferred from revenue to the accident fund. .£11,090 cut of revenue had been spent in the way of renewals. This expenditure covered permanent way, overhead equipment, power-house machinery, and parts of cars. In tho city of Glasgow, Mr. M'Laren stated, thcro was a special fund called "the renewals and permanent way fund," but since the inception of the local service, upkeep of the permanent-way had been met out of ordinary revenue. Out of capital and accretions to revenue together .6210,297 had been spent on permanent way, and on the cars .£91,277. The amount allocated out of revenue for tho upkeep of tho permanent way and the ears, tho Mavor remarked, was well sustained, year by yeah For the year ended March, 1911, .£4099 from revenue was spent upon the permanent way. Last ! year the amount.;.so:jspt'.lUj,w.as;'i£so9l, Tho ftmnunt speut'/out of revenue, on the cars was J212,243 during the year just closed,

as against «£10,20-t in the previous year. The Mayor next touched upon the total revenue and 'expenditure for the past year. Tho total revenue, he said, was ,£138,709, and the total working expenses ,£99,909, leaving a gross surplus of ,£38,800. The sum of .£18,935 having teen devoted to interest, .£4784 to sinking fund, and ,£13,829 to depreciation, a net surplus of ■£1242 remained. A net surplus of .£978 from power supply made a total net surplus of .£2220 to bo carried to the appropriation account. . A financial analysis of tho working for the year, the Mayor continued, showed an increase in income, for the past year, of .£SOOI, and an increased expenditure of ,£7883. Expenditure was thus ,£2882 more than income, but the city hart had to meet an increase of wages and salaries amounting to .£1835. In addition to that while ,£18,956 was spent on repair? and maintenance in the year ended in March, 191!, the "Sum so expended -during the past year totalled 4223,063, au increase ot ,C 4109*. This had to be set off against the fact that the gross surplus for the past year was A' 38,800, as against ,£II,GBI lor the year preceding.