THE TRAMS.

Taranaki Daily News, 3 May 1921, Page 5

THE TRAMS.

PROFIT FOR THE YEAR.

LARGE INCREASE OF REVENUE.

NECESSITY FOR MORE TRAMS.

The balance-sheet in regard to the operations of the New Plymouth tramways, which was issued yesterday, discloses a very satisfactory position, the net profit for the year being £2855 15s 6d. In reviewing the affairs of the department, the borough general manager (Mr. F. T. Bellringer) states: The total capital expenditure to date amounts to £56,041 3s 2d, there having been practically no expenditure under this head during the year. The following summary sets out the financial opei'ations for the year, the comparative figures for the preceding year being also shown:

1920. 1921. £ s. d.‘ £ s. d. Traffic revenue .. 13,292 18 1 18,257 15 3 Other revenue .. 134 0 0 97 9 8 Total 13,426 18 1 18,355 4 11 Less working expenses 8,623 17 5 11,355 14 11 Balance being gross profit .... 4,803 0 8 6,999 10 0 Add Interest on fixed deposits, etc 71 10 *0 C 3 19 3 Leaving a sum available of .. 4,874 10 8 7,063 0 3 With which to meet the following standing charges: 1920. 1921. £ s. d. £ s. d Interest & Sinking Fund 3,327 JO 0 3,327 10 0 Depreciation 872 18 11 879 14 9 Renewals 2,300 17 3 6,501 6 2 4,207 4 9

This leaves a net profit for the year of £2855 15s 6d, compared with a net loss for the preceding year of £1626 l‘ss 6d. It will be noted, that in the above standing charges no transfer had been made to the renewals fund for the past year. This was due to the fact that the borough solicitors have advised that until the amendments contained in the Municipal Corporations Act of 1.,«t session came into opeiation on April 1, 1921, renewal funds for tramway accounts were ultra vires. In all previous years an allowance has been made for renewals, and in order to make a fair comparison of the year’s working with that of the previous year a similar allowance must be made this year. Allowing the same amount as for the preceding year—viz., £2300 17s 3d—it will be seen that the net profit would be reduced from £2855 15s 6d to £554 18s 3d, which is the true profit. Power to establish renewal funds having been conferred by the amendments in the Act previously referred to, there is no doubt that the renewal fund will be reinstated by the council during the ensuing year.

Reverting to the figures set out in the summary it will be seen that the traffic revenue showed an increase for the year of £4964 17s 2d. This was due to some extent to the increased number of passengers carried—viz., 1,822,429, compared with 1,787,655 for the preceding year, but mainly by the increase in the fares made in the early part of the year, and referred to in another portion of this report.

Working expenses show an increase of £2731 1.7 s 6d, mainly due to the increased cost of labor and materials, the principal items being:

£ s. d. Wages of motormen & conductors 1039 5 2 Repairs to permanent way .... 604 14 3 Trami-car maintenance 399 6 10 Tram-car cleaning 177 6 1 Track cleaning 98 0 3 Expenses re proposal for Westown and Vogeltown extensions 291 3 6 Superannuation 31 16 11 Public risk & other insurances 26 6 2 Electrical equipment of lines .... 37 14 7 £2705 13 9

The result attained is, I think, very satisfactory, and the number of passengers carried is evidence that every effort has been made to make the very best use of the rolling stock at the department’s disposal. Very little can be done to increase the traffic receipts until the new cars now on order arrive and are put into operation. It may be possible to make more use of the Morley Street service by extending the back trip to Strandon or Fitzroy. This question is receiving the consideration of the tramways manager, and hie recommendations thereon will be obtained and submitted to the council in due course. Before the installation of the one-man car system the whole of the traffic operation, including the length of sections and fares, will require to be brought under review. This matter, however, will require careful consideration ''before definite recommendations are made, and it is too early at present to give any indication of what these recommendations are likely to be.