RISE IN TRAM FARES

Dominion, Volume 12, Issue 268, 8 August 1919, Page 8

RISE IN TRAM FARES

TO OPERATE THIS MORNING MINIMUM FARE OF TWOPENCE DISCUSSION IN THE COUNCIL The Mayor recently stated that the accounts for the past month had shown the first debit belance upon the running of the tramways. As the tramway finances have for a' considerable time ■been in a none too Nourishing condition, the City" Council was last night faced with the necessity of discussing proposals to raise the fares. First the council considered the report of the Tramways Committee (in committee), which embodied a full report by the tramways manager, ilr. 11. Cable.

The Committee's Report. The report read:— "The committee have to report that they have considered the question of the financial portion of the tramways undertaking, brought about by the increased expenditure imposed upon same by the increased wages, cost of material, etc. They submit herewith a report on the matter from the acting general manager. After a thorough ■ consideration of such report they recommend that an additional charge of fid. be imposed on each concession ticket, and on each workers' ticket, and that the discount of one farthing per section ticket allowed at present to the Post and Telegraph Department and to the various corporation departments bo withdrawn. They recommend that a uniform minimum fare of 2d. be charged, but that a concession ticket giving twelve one-section rides for Is. 3d. be introduced." Tramway Manager's Recommendations, The report of the Tramways Manager was as follows:— "In accordance with your instructions to bring down a proposal for raising the revenue to meet the heavy increase which has taken place in the working expenses, I beg to report that after giving the whole question careful consideration I am ot the opinion that (he proposals set out on Schedule 1 attached .hereto are the best that can bo adopted; Briefly the proposals are as follow:— "Cash Fares—Adults, section a minimum of 2d.; two or moro sections Id. per section. Children: No alteration in present scale, "Concession Tickets.—A twelve-rido onesection ticket to be introduced, which will enable holders to travel at ljd. per section. The price of tho present two, three, and four-section tickets to be increased by (id. each. ■ "Workers' Tickets—'Die price of the present two, three, and four-sectiun workers' tickers to be increased by 6d. "Scholars' Tickets—Present scalo unaltered.

"In addition to the above, I also suggest tho withdrawal of t.ho discount of Jd. per section ticket allowed at present to the Post and Telegraph Dcpur.tment, and to the various corporation departments. "As tho percentage of working expenses to revenue, which was G6 per cent, in 1014, is now 76 per cent., the estimated inoroase in revenuo duo to the proposed new scale will 6till lcavo the finances of tho undertaking below the standard ivhich existed prior to tho war. It wiil .be noticed that under the proposals the percentage increase is greater in tho caso of tho single section rides, and tapers off to a minimum in tho case of the four scction passengers. The average rates per milo under tho present and proposed scales for the different classes of tickets are shown, and details of tho concession and workers' tickets are also given. "In connection with the proposal to increase tho price of the workers' ticket I would point out that for the tv clvo weeks ended Juno 23 last, tho expenses per section ride amounted to .fcsd., and consequently-the present rate of .Wd. per mile for workers' tickets means t>- heavy loss to the department. Tko couiiuil will requiru .to apply for an alteration in tho Order-in-Council to enablo t>io price of these tickets to bo increased."

The New Fares. Tho new fares are as folloiv; — Cash. i'ares.-Ono section, 2d.; t.wo or more sections, id. per 6ection; children's faros. Id. for one,' tiro, and three sections. as at present. Universal Concession Tickets. —Twelve rides, one-section tickets for Is. 3d., or lid, per ride; sixteen-ride two-section tickets for 2s. 0(1, or ljd. per ride; fourteenride three-section tickcts for 35., or 2 '1-7(1. per ride; fourteen-ride four-section tickets for &. Eil., or 3d. por ride. Workers' Concession Tickets. —Six re-turn-ride two-section tickets for Is.-fid., or lid. per ride; six return-ride threesection tickets for 25., or 2d. per ride; six return-ride four-section tickets for is. 6d.. or 2-1 d. per ride. Scholars Tickets-Smile price as at present. Estimated Increase in Revenue. The estimated increase ill revenue duo to now scale of farts will be:— From one-section |)assengers 8,891 From two-section passengers on universal concessions 5,291 From two-section passengers on workers' concessions 1,452 From three-section passengers on universal concessions 1,731 From three-section passengers on workers' concessions "57 From four-section passengers on. universal concessions 715 From four-section passengers on workors' concessions 850 Total ....! 419,390

The Discussion. When the council resumed in open meeting, it was asked to confirm the business done ill committee. Councillor Chapman moved jui amendment that consideration of tho proposal to increase train fatfis bo deferred to » special meeting to bo held on Monday. Councillor Hutchison seconded Councillor Chapman's amendment. He said that the council appeared to be panicstricken because tliere had been a loss of reranue on tho tramways for the last mouth. Tho balance showed that the loss was only for one month, lit was seconding Councillor Chapman's motion because lie thought that the matter had been hurried through by the council in committee. A mass of ligures had been put before councillors who were not mem. bers of the Tramways Committee and were not conversant, with the finances of the tramways- Nobody knew, he contended, exactly how tlier*p"foposal to increase fares was going to hit the public of Wellington, but it was going to lut the public hard—harder than had been reported in tho statement put before tho council in committee. Tho council a\hs going to increase the cost of living. Burin" the election campaign tho Jlayor had elated that tho tramway finances were in a gooA state.

"Bludrjeonod Through." Tho council, lie continued, lmd now "bludgeoned through" in committee a matter that was going to touch everybody, particularly tbe workers that used the cars. , ... Tho Mayor said that some councillors had taken up a very peculiar attitude. He maintained that the tramways finances wero sound as long as they showed a credit from month to month. The council was not "oing outside to build nn its finance. The revenue had never been so buoyant as it bad been during (ho last few weeks. There hod been a greater addition to the revenue than ever before. For tho unexpired portion of tlis yejir showed an increase of 9 per cent., but against that the working expenses had increased by 25 per cent. .Last October there had been an Additional charge of .£9OOO on account of warns to Iraniways emplovces, and the salaries to the higher officers until tho council was no longer able to carry on. Tho expenses had increased by 100 per cent. on what they were prior io the war, which was a very considerable ileiu. Tho traffic expenses had increased 5!) per cent., general expenses 12 per cent., repairs 125 per cent., power expenses 122 per cent, (mostly on account of coal). The capital charges had alsu increased by 18 per cent. During the past year wages had cost J!44,(K)0, coal ,£20,000, material ■£14,000, and miscellaneous .£2OOO. He was I prepared to faoo tho community of Wel-

lington, and would show that ho had acted in tho test interests of the city. They had made concessions to labour, and no one who understood tho working of the system would say that labour had not been given a "'fair go." The position was that they had arrived at a point when they had to lemodej tneir finance. One ingenious end dangerous system was to alter the sections. They had liutl battles on that subject before, and it had not been considered feasible, but the proposal now nuide wan based on a tail' proportion of tiie payment being made. There had been a suggestion made that an extra id. should be. paid by everyone who went nn tho trams. They did not wish to load the citizens to that extent, which would Tealise some i:li0,000. They only wanted suificient to carry 011 ,aud meet their financial obligations. Sir Joseph Ward had said that steel would be available, but tiie cost would be enormous, unci it woul'd' continue to rise. The report spoke for itself. Councillor Hutchison said that he (the Mayor) had used the bludgeon; now he liad not used the bludgeon, nor had members of the committee. The council must have confidence in the committee, which had given a lot of consideration to the matter, and they must have confidence in their offi. ct-rs. They ■ were simply asking for an. other ,£19,000. Iu one respect the reduction in one ticket had been made tram Is. Gd. to Is. 3(1., and they might not get ,£19,000. They would probably get .£17,000.' He asked the council to take 110 notice of the amendment, and to turn it down.

Councillor C. H. Chapman thought that tho interest paid on ioans shouul couut a? profit, which was not tho case at present, and quoted figures comparing the interest and revenue accounts. Councillor Glover said that if tho council took tho figures for the last 10 weeks it would find that they showed a surplus of ,£GSO. It was only daring the lastfour weeks that there had been a loss. It was unfair to sa,y that tho finances of tho tramways were unsound because they showed a loss during four weeks. If action were deferred for three months, it could not involve a very heavy loss, and it would enable the council to see if loss was going to continue. The Amendment Lost, The amendment was then put and lost. The voting was:—Ayes: Councillors Chap, man, Fraser, Glover, Hutchison. Luckie, M'Kenzie. Noes: Councillors Thompson, Bennett, Atkinson, Norwood, I)uTe, Forsyth, Shorland, Wright, and the Mayor. Tho original motion for the conlirmation of tho council business w r as before the meeting. Fear of Speculation. Councillor Wright said that it was the most unpopular thing to support tho proposal .to raise the fares, and the most populai to oppose the proposal to raise them. He admitted that there was a good deal in what those outside the committee had said, but he feared that if the matter were deferred there would be speculative buying up of concession tiekets. Ho considered that it was necessary to raise the fares, and he regretted that necessity compelled him to vote for the, inoreaae.

With reference to tho suggestion that thero might be an interval for-specula-tive buying of tickets oven if only a short time elapsed before a oliange was made to tho higher rates, the Mayor said that everything was in train to change over-in the morning. Councillor Forsyth said that he would bo failing in his duty as a. business man if he failed to vote for the proposed increaso. The increase was to eover working expenses of tho tramways.

Councillor Luckie said tlmt the per- , centage inorenso iu fares to the workera under tho new proposals was higher than tho percentage increases in "tho universal fare to other tlian workers." Re thought that a slight Adjustment to equalise the increases in workers' fares, «nd tho increases in the 1 universal fares Mould have Riven better financial results and removed a source of heartburnings. The Mayor said that without discrimination th* council had endeavoured to adjust matters in the best possible way. Ho gave figures in support of his statement. Councillor Hutchison considered that the Tramways Department was not seriously endeavouring to . cope with the need for new cars. The Bteds at present were engaged only upon the repair, and not tho building, of cars. He referred to the evil of overcrowding, and expressed a hope that the Government would compel the council to provide more comfort in tho cars, particularly if it was going to charge' more for fares. The Shortage of Coal.. . Councillor M'Kenzie said that one of the present difficulties of the tramways was tho shortage of coal and the high price of coal. Who was to say that the state of .affairs in regard to coal might not shortly improve? Ho was sorry that the council had Jiot given more timo to the consideration of the fares. He .would have liked to see figures shewing what had been done in other centres, and_ why the council .was in its present position. The Mayor said that he wished to put on record the following statement:—Tramways wages paid in 1914 amounted to *£81,568; those paid in the last official yciir were ,£125,495, the increase king • ,£43,927., The .increase was ono of 53 per cent. The increase in mileage for the corresponding period was 30 per cent. The motion to adopt tho report (which included the new scale of fares) was then put to the meeting. On a division being taken, the voting was as follows:— Ayes: Tho Mayor, Councillors Bennett, Atkinson, Forsyth, Shorland, Thompson, Bale, Wright, and Norwood.

Noes: Councillors M'Kenzie, Luckie, Hutchison, Glover, and Fraser.