THE TRAMWAY COMPANY.

Globe, Volume XXIV, Issue 2453, 15 February 1882, Page 3

THE TRAMWAY COMPANY.

The fourth annual general meeting of the shareholders of the above company was held this morning, at eleven o’clock, in the office of the company, Cathedral square. Mr J. E. Brown, M.H.8., chairman of directors, presided, and there were about twenty shareholders present. The annual report was read as follows : The directors report that, during the year, the traffic has been maintained without interruption on the Pnpanui, Sydenham, and railway line?. They regret, however, that through circumstances over which they had no control, the execution of the deeds of concession was very much delayed, and that consequently the works referred to in last year’s report had necessarily to bo postponed, greatly to the disappointment of the public and to the serious loss of tho shareholders. The Addington line, however, is now in working order, and tho contractors are busily engaged in laying the Ferry road line, so that shortly profitable returns may be expected from the traffic cf these important districts. The usual accounts aro appended hereto. The directors do not recommend the payment of any dividend, but suggest that tho balance, £B3B 18s 3d, be carried forward to new account, and while regretting that the result is not more satisfactory, they have still every confidence in the future prospects of the enterprise. The lines and rolling stock have been maintained in first-class order, and are now in a throughly efficient condition. In accordance with the articles of association, Messrs J. E. Brown and William Pratt retire from tho Board, but being eligible for re-election have given tho usual notice that they are candidates for the vacant seats. Mr George Coleman has also given similar notice. Yen will also have to elect an auditor.

The following is the profit and less account :

Dr. £ s. d. £ s. d. To traffic and general expenses... ... 5858 2 3 ~ Balance... ... 888 18 3

Cr. £ s. d. £ s. d By balance brought forward ... ... 901 22 Less dividend paid 801 13 7

£9 8 7 ~ Traffic receipts... 6617 11 11

The Chairman, in moving the adoption of the report, said—l desire to point out that during the year the construction account has increased from £18,720 to £27,211. This is represented by one mile sixty-eight chains of completed lines, shed at Papanui, 2CO tons steel rails, and timber for three-and-a half miles for the Perry road line, which is now under contract, and to bo completed to Woolston in about two months. There is also an increase of £4163 in rolling stock account, which is represented by three new and improved Kitson’s engines and five carriages, also running gear and duplicates for nine more carriages and one engine, sufficient in the opinion of the directors for the estimated increase of traffic for the next year. On the debtor side it will be observed that the deposit account is but slightly increased, but the debenture account is a now item. Two years ago the directors, in preference to issuing any more shares, forwarded to London for sale £25,000 worth of debentures, and limiting the sale to £95 net. 1 It wes found impossible to effect a sale at that figure, but a sale of 105 debentures was made in the colony at 951 per cent, not, which enabled your directors to proceed with the purchase of material and construction of other lines. During the year your directors have been urged to not only extend some of the present lines, but to undertake the construction of other lines. They have, however, deemed it advisable to first perfectly complete in every respect the lines originally decided upon, and also to aystemiso the traffic arrangements. This last is a work of time, and to be governed mainly by experience we have gained. The profit and loss account demand a few words from me. As you will see the net balance for the year is £BBB, which is equal to nearly 3J- per cent on paid up capital. The traffic and general charges item is about £623 greater than last year, and £l5O of this is represented by the increased price of coke. This has led ns to consider the best way (o economise on this item, but we have not finally decided whether it will be by substituting horses for steam motors on the short lines, or by manufacturing our own coke. The remaining £473 was expended in repairs to rolling stock caused by inequalities of guage and surface on the newly constructed line, new steel tires being required for the original five engines, and several alterations in the running g ar of the carriages. The whole rolling stock is now in good order, the wear and tear, comparatively speaking, being very little. The experience gained enabled us to arrange for the more economical working of the whole concern. The income, as you will see, has been £6717, which has not reached our expectations. We did not, it seems, make sufficient allowance for the great falling off of the traffic in the winter months. The result shows that the returns did not meet the expenses during that time. Since then the traffic has greatly increased, being largely in excess of any previous time. The number of passengers has been 656,300, equal to 109,383 for every mile of road. In England the number of passengers per mile of road is 470,291; in New South Wales the number is 831,758, which shoos that in that colony the trams are patronised nearly eight times more than in this city. In England the population is 100,000 to every mile of tramway, in New South Wales 62,000, and in this province 18,500. The total mileage for the year is 75,472 miles. As stated in the report the directors do not recommend a dividend to the shareholders, believing it will be belter to carry the balance to new account; and we trust that by so doing the financial position of the company will be strengthened. Although the non-declaring of a dividend may be unexpected by you, it should be borne in mind that the operations of the company have been in a great measure of a tentative or experimental character, whereby much knowledge of the intermittent character of traffic and the expenditure has been gained by the directors which will be in future of incalculable benefit to you. Speaking for the directors as a body, I would like to say that their confidence in the pecuniary success of the company is unabated, and that no director has parted with shares or intends doing so. Mr Coleman, in seconding the motion for the adoption of the report, desired to ask what documents and vouchers had been laid before the auditors for the purpose of satisfactorily explaining the daily takings of the company, and that they had been properly placed to the credit of the company’s account. He wished particularly to know whether the butts of the tickets were kept and checked by the auditors The Chairman explained that all the documents were handed over to the auditors. The butts were cheeked every night and afterwards audited by both auditors. Besides Mr Oiaig, who was elected auditor last year, the directors, as they were instituting a new sysHem, obtain the services of Mr Wm. Jameson, 1 who had gone through all the issues of tickets as they were received from the printing office, and compared them with the guards’ daily sheets and the entries in the ledger. Mr E. O. J. Stevens asked what was the present currency of the debentures—the unexpired term ? Mr C. W. Turner said that the debentures bore on their face a currency of five years, and t>iey were issued about six months ago. yyhen they were sold the buyers received an undertaking direct from the Board to redeem them at the expiration of three years, if called upon to do so. Mr Stevens said—Then practically the position was this—that the company was saddled for four and a-half years with the interest on £10,500 of debentures at the rate of 7 per cent,, and if tho bondholders did not feel Ter y comfortable about tho money they could call upon the company to pay up. There W as no mutua’ity in the arrangement. It would be observed from tho profit and loss account that tho traffie and general expenses bore an unfavorable proportion to the amount of the traffic receipts when compared with the results presented in the last balancesheet. Ho understood that the chairroan attributed this to the fact that want of experience in the working of tho lines bad lead the directors into a non-roduotion of the expenditure, which they hoped would not occur in the future. He could not, however, gather from the chairman’s remarks that there was any certainty of such a reduction being effected as would give the shareholders confidence that so unfavorable a result as that now shown would bo avoided in the future. He lad rather hoped that the chairman would have presented an abstract of the item of £5858, and would have so explained it, that they might have formed a fair idea as to what probability there was cf the undertaking being conducted at a larger annual profit than £BBB. But be supposed there was some reason why such an exposi-

tion had not been made, and perhaps the chairman might be able to explain on what items of expenditure a reduction might be expected. The interest on the debentures seemed to him to be the most serious matter. He would like to ask the chairman whether the item of £5858 for traffic and general expenses included any considerable sum for depreciation. The mere question of the non-declaration of a dividend he did not care much about. What he did consider important was that a dividend should have been declared twelve months ago, which would have been very much better withheld and the surplus retained, as was proposed to be done on the present occasion.

The Chairman said tho directors now felt that it would have been bettor not to declare a dividend last year, but it was impossible for them at the time to foresee that the winter traffic would fall off as it did. Besides a groat many shareholders had been paying their money into the concern for two years, and they were anxious to have a dividend. With regard to the item of £5858, the sum of £3850 was for wages, coke, printing, oil, waste, &s., leaving £2OOB for general charges. Of this £540 was paid for repairs to roads; £B9 6s 4d for renewals, and £412 8s lid for other repairs ; £146 was paid on account of the loan, £132 for rent, £350 for taxes and traffic manager’s salary, £BS 3s for property tax, and £ll2 for an accident.

In answer to a shareholder, the Chairman stated that the seven directors received in all £350 as remuneration for their services. He himself received no more than the other directors.

Mr Murffit thought it would be desirable, if, instead of the wages being lumped in one sum, particulars wore given, so that the shareholders could see whe her the guards and others were receiving sufficient remuneration to keep them honest, and a fair payment in consideration of their having to work on Sundoys. He also complained of the faulty construction of parts of the lines. The Chairman said it would not be to tho interests of the shareholders to publish particulars of the wages which the company paid its servants. The fact that there were over 200 applications for employment on the books ought to be sufficient proof that the wages were liberal enough to induce the men to be honest and energetic. With regard to Sunday work an entirely separate staff was kept for this purpose. As a matter of fact all the men hod asked to be employed during the seven days in the week, but the directors would not listen to such a thing. la reply to a question by Mr Vanasohe with regard to the Ferry road line, the Chairman said the company had sufficient money, with the exception of about £BOO or £9OO, to complete this work, but the material they bad on hand would enable them to construct the line to Woolston, which was as far as it was intended to go at present. The motion for the adoption of the report and balance sheet was then put and carried. Messrs Brown and Pratt, the two retiring directors, wore re-elected without opposition, Mr Coleman, who was also nominated, having withdrawn his nomination. On the motion of Mr Davis, Mr H. B. Alport was elected auditor for the ensuing year.

Mr H. W. Packer raised the question of the running of trams on Sundays, and said he would like to have an expression of opinion from the shareholders on the subject. He was himself opposed to Sunday running. The Chairman said it was not competent for the meeting to coma to any decision on the subject, as according to the articles of association three days’ notice must he given of any resolution to bo brought forward. Mr Murffitt asked what tho returns were from the Sunday trams ? He did not think that those which ran to Sydenham paid for the grease. The Chairman said the average returns for Sunday running was £l2 Is. Mr Allan pointed out that as soon as the Ferry road line was opened the Sunday traffic would be an important item. Mr Packer observed that his obj ection was not on the score ®! expenes, but one of principle.

Mr Stevens said, as the matter could not take any practical shape there was no use pursuing it. He would like to suggest to tho directors whether it would not be advisable that the shareholders should meet again in six months time, to hear what progress had been made in tho affairs of the company. Tho more they were taken into the confidence of the directors the better. The Chairman said it was always competent for the shareholders to call a meeting by requisition. Of course the directors would have no objection to tho proposal if it was the general wish of the shareholders. They would give the question their consideration. Mr Stevens was aware that the shareholders could take the course mentioned by the chairman, but it was & hostile course, and one he would not think of taking. Perhaps when the time came the directors would consider the expediency of asking the shareholders to meet them to hear how the company was getting on, [Hear, hear.] This concluded the proceedings.