LOSS ON TRAMS

Hokitika Guardian, 25 May 1926, Page 3

LOSS ON TRAMS

BUS COMPETITION. AUCKLAND, May 23. “This loss is wholly attributable to tho opposition of motor-buses, via Devonport.” Thus do tho directors of the Takapuna Tramway and Ferry Company explains the deficit that has occurred over the operations for the twelve months ended March 31. The profit and loss account shows a debit of £1999 7s "3d, and to this is added depreciation amounting to £204!) 19s lid, making a total of £4640 7s 2d. After reciting reasons for abandoning the scheme to electrify the trams, the report proceeds to explain why the decision to electrify has been re-affirmed ns follows: “Now, however, the motorbus regulations have been issued, the company is advised that where depilate facilities for transport exist the licensing authorities are bound to refuse licenses to competing motor omnibuses. Your directors, have therefore, decided that if the Takapuna Borough Council (as, in their opinion, .it is bound to do) refuse licenses for the Devonport service, the company will, subject to finance, immediately proceed to electrify the service. To do tins shareholders must be prepared to subscribe largely to a 71 per cent debenture issue which is to be made to piovide the necessary capital. “It is necessary that the city and' suburban residents should recognise that, while it is always pleasant to have two strings to one's how, motorbuses and electric cars running on I,be same route or catering for the same public are mutually destructive and cannot exist sido by side. It does rot take much consideration to appreciate the fact that the conception of tramway undertakings, with their very large capital outlay, was originally based on the assumption that they would handle, the whole of the traffic offering. Unless a plant which, under penalty, is bound to take the burden of the peak traffic, which other"systems will not attempt and enmiot hope to cope with, is to be fully patronised at other times, it simply lias no justification for its existence. Electrification must be undertaken by your directors in the spirit, that, being assured of the whole traffic, we must, to the utmost of our power, give the public the best possible service realising that the goodwill of the public is absolutely essential to tne working of a transport system. The alternative, to electric trac-

tion is to put on a number of motoibuses and cut steam traction to the \ bare minimum. In the meantime, the substitution of motor-buses for steam trams on light trips has largely reduced the losses, which were being incurred.” Last year’s report showed a profit of £579, which, however, did not permit of the payment of a dividend for the half-year ended March 31. On that occasion it was mentioned that the infantile paralysis epidemic had resulted in a loss of revenue amounting -. fo £4OOO-