RUN AT A LOSS

Dominion, Volume 14, Issue 41, 12 November 1920, Page 6

RUN AT A LOSS

. POSITION OF CITY TRAMWAYS REVIEW OF LAST FIVE I MONTHS I INCREASE IN PASSENGERS CARRIED ii , . 8 An interesting report was tabled by [• the general manager of tramways (Mr.. • W. H. Morton) at last night's meeting ot the City Council, giving the trnm- '• way returns lor 20 weeks from May 27 I to October 13, 1920 (the period covered ■ J by the last increase in fares), together y wiln comparative twenty-week uerinds iu r 1911, 1916, and 1918. . The passengers carried during the rc- >• spective periods were set out as follow: t 1911, 9,510,602;. 1916, 11,810,691; 1918. a 13,103,389,- 1920, 13,696,093. This repre- • eented an increase in the 1916 period <> over 'the 1911 period of 24 per cent., ami a 4 per cent, increase in 1920 over 191 R. • Tim average fare paid per'passenger' i was: 1911, l.lkl.; 1916, l.lld.: 1918, J 1.44 d.; 1920, 2.11 d.; increase in 1120 over 1918 period, 16 per cent. 3 Other figures contained in the vetum were as follow:— ' Total revenue for 20 weeks in 1914. • ~£61,393; 1916, .£75,218; 1918, .£85,155; i 1020, 4125,195. Inoreuse iu 1916 over 5 1911, 22 per cent.; increase in 19' M over • 1918, 47 per cent. ' Working expenses: 1911, .£42,072; 19W, - .£55,740; 1918, .061,450; 1920, .£108,253. lu- ■ crease in 1916 over 1914, 32 per cent.; increase in 1920 over 1918, 76 per cent. • Capital charges: 1914, .£15,117; 191G, I .£16,125; 1918, 417,128; 1920, 419,828. Ini crease in 1916 over 191/., 7 per cent.; int crease in 1920 over 1913, 16 per cent. i Total .expenditure: 1914, Jt'57,189; 1916, X 71.865; 1918, 478,578; 1920. 4128,081. lit- ■ crease in 1916 over 1914. 25 per cent.; . I increase in 1920 over 1918, 63 per cent.. • 1 Percentage of working expenses lo revenue: 1911, 68 per cent.; 1010, 74 per oent.; 1918, 72 per cent.; 1920, 86 per' cent. Increase in 1916 over 1914, 6 per cent.; increase in 1920 over 1918, 1* v per cent. Percentage of total expenditure to revenue: 1911, 93 per cent.; 1916, 95 per cent.; 1918, 92 per' cent.; 1920, 102 per cont. Inorease iu 1916 over 1914, 2 per cent.; increase iu 1920 over 1918, 10 per cent. Net supplies per 4100 of revenue: 1914. 47; 1916. 45; 1918, 48; 1920, loss of 42. Labour: 1911, 436,742; 1916, 442,766; 1918, 411.656; 1920, 477,300. Materials, etc.: 1911, 453.10; 1914, 412,971; 1918, 416,761; 1920, 430,953. The Report Discussed. , Traversing the report, Councillor V, Forsyth, pointed out that the percentage of total expenditure to revenue was now 102 per cent. Obviously they could not go on as at present. The figures relative to the number of passengers carried disooscdof the argument that on account of the higher fares fewer ipoople were now using the cars. The Mayor: "Wo have bean losing' money on the trams during the last few -weeks, and it is a maltor that the coun- • cil have eot to look into." He added' that doubtless the protracted spell of bad weather had affected the revenue to a certain extent. Incidentally, tho com- • mitee had been in close consultatioN> with the officers of the department, to, we if any economies could be made,' However, the wholo position of running thn enrs would have to be gone into at a later date. Councillor W. JT. Bennett said lie had come to the conclusion that the freight service should be either ended or mended, for the service at present was ridiculoue. Eiflicr it was not being conducted on business lines, or it was not wanted. Durinc the last twelve months the freight service had realised 41473 12s. 4d. To uroduce that sum had involved a lo6s of 4500. He desired the production of a return showing what the position ac- ■ tuiillv was. i Councillor C. H. Chapman contended that the tramway return 6howe.d the cor- ■ rectness of his argument, that increases i in fares resulted in a decrease iu the number of' passengers travelling. Increase in Fares Suggested, 1 .Councillor M. F. Luckie commented 1 on the fact that the total expenditure ' had increased in two years from 478,000 '■ to 4128,000. Of that increase of 450,000, >■ 417,000 was due to an increaso in work- ! ing expenses as against capital charges. ; Whatever the cause of tho losis in reve- : uue—much bad weather, or increased fares'—ho was afraid that an increase in ' fares would, have to be made, and ho ~ thought it would have to affect tho long- ' distance' passengers. Councillor W. Gaudin stated that ' tho council was faced with an increase I of 415,000 in the traniwnymen's wages ' bill owing to the possibility of a new : bonus being granted, and that would 1 make the positio.i still more serious. 1 Ho considered that the tramways mana- ' ger should, be asked-for a report suggest- ■ ing how tho situation generally could be met. Councillor Jl'Kenzie 6aid it was iru- ' possible fo go on under the present con--1 ditions, and he endorsed the suggestion •undo by Councillor Gaudin. The discussion should not proceed until tho 1 management had reported ou the position. • ■ ' • The Mayor thought the crux of -the position was that the total revenuo in 1920, as compared with 1914, had increased by 101 per cent., whereas the total_expenditure in. 1920 had increased by 121 per cont. as compared With 1914. Coal should bo cheaper, and the indications regarding the supply of coal np- • pearcd to be much better. Full information regarding the revenue from tho frei'giit car would be obtained, but the freight car ishould not be considered from the standpoint of its 'carning-power . alone. Tho people in tho outlying districts had to be considered, for they had n cTaim on the city in regard to the carriage of goods. * The report of tho committee was auopfefl.