The Daily News. THURSDAY, AUGUST 12, 1920. EXTENSION OF TRAMWAYS.

Taranaki Daily News, 12 August 1920, Page 4

The Daily News. THURSDAY, AUGUST 12, 1920. EXTENSION OF TRAMWAYS.

The report of the general manager; presented to the New Plymouth Borough Council at Tuesday's meeting, affords an illustration of the need for keeping the Closest watch over the cost involved in carrying out all municipal Enterprises. When the tentative estimates for extending the tramways to Westown were submitted M October last, the outlay was fioiisidered approximately as £22,for overhead gear and permanent way only. The estimates now to 'hand place the cost at £40,000,. and for the extra equipment required £22,000, including the first year's ktefrest and cost of raising the loan. It was on the estimate of £22,000 that the Council decided to take a £qll of the ratepayers. How vastly the figures have altered can be seen at a glance, especially when it is Considered that the extension of the tramway to Westown would inevitably be followed by a demand for x similar facilities by the residents of Vogeltown, the granting of which would mean providing another £40,000, so that the ratepayers would have to sanction a loan oi £BO,OOO for extensions and £22,000 for extra equipment, a total of £102,000, as against the total cost of £38,952 for the whole of the existing system, covering about 6| miles, over three times the distance covered by the Westown route. If the anticipated revenue from these extensions came anywhere approaching the paying point there would be good ground for embarking on even this large outlay, but according to the general manager's estimate there would be an annual loss on the Westown service of £3875 and on that to Yogeltown of £4845, a total deficit of £8720. Even if the i v YogeUowa extension mw. belt!

over and only the Westown branch carried through, the loss would be too great to justify proceeding with the work, although it is hoped that the increased fares on the present system will, this year, enable a small profit to be shown, as against the loss of £1626 last year. It is not as if the Westown and Yogeltown residents are to be left without means of rapid transport, for the general manager has -propounded a scheme for utilising the railless system of tramways, which should, and doubtless will, give a service equally as satisfactory as a tramline. This system is estimated to cost only £22,000, though allowing for contingencies, widening tar portions of roads, cost of raising loan, and the first year's interest, the total is brought up to £27,000. This sum includes a provision for three cars, as well,as extensions to the car-sheds, and it will give both the Westown and Yogeltown residents a service that should meet all reasonable demands, while the estimated annual cash loss is not expected to be more than £853, though if depreciation and renewals are taken into account the total deficit is estimated at £IB7B. It is quite possible, moreover, that the capital outlay may not involve the expenditure of the £IOOO provided for contingencies, and that at least a fair portion of the £IBOO for widening the roads should be charged to the street loan account, though it is wise to be on| the right side in estimating the cost of the work. The position has been fully 'and frankly stated by the general manager, and made perfectly clear. There appears to be no option but to abandon for the present the laying down of tram-lines to Westown and Vogeltown, and substituting therefor the railless system, and the recommendation in. this direction appears to be the only practical solution of the problem in sight. The raising of a loan of £IOO,OOO at the present tinjp would not, under the circumstances, stand a chance of being sanctioned by the ratepayers, especially as the rate of interest and the provision for the sinking fund would not be less than 6| per cent., and might be as high as seven per cent. There should ,be a consensus of opinion that the general manager's solution is the only practical way out of the difficulty. The residents of the suburbs interested may feel disappointed at not obtaining exactly what they asked for, but in these times of financial stringency they should, on reflection, arrive at the conclusion that they have good cause for being thankful that the proposed substitute can be made to serve their purpose quite as well as the original scheme. As a business proposition the railless trams system should appeal to the ratepayers, but it is quite likely they may consider the general manager's proposal to provide in the loan for altering the levels of Morley Street to fit in with future tramway extensions (instead of the work being done out bf the £57,000 loan) as unjustified. Otherwise the recommendations •before the Council should meet with approval.