The Owosso times. (Owosso, Mich.) 1897-1926, 1907-06-21
IN NEW ZEALAND.
How Public Ownership Works on
the Worlds Other Side.

Official Balance Sheets Generally Show
Profits, but Analyses Thereof Indi
cate Real Deficits Almost Invariably
Conditions No Better In New South
Wales, Where Fares Are Higher, or
the Whole, Than Here - Inefficient,
and Extravaganza Due to Political
Interference.
By c. ARTHUR WILLIAMS.
The New Zealand cities which own
church and wellington. The systems
are comparatively new in all three, SO
1t Is difficult to say how the account
between them and the people will
stand eventually. In Christchurcb the
trans are controlled by board elected
by the people. Most Of the lines have
been operated electrically for more
than b year, but some extremely an
cient steam equipment Is still in use
at this writing.
The cost of construction Is about
$4,000 per mile. The excess of reve-
nue. over working expenses for the ten
and ope-half months ending March 81.
1906, was $49,022. Leaving deprecia-
ton out of the question, interest on the
capital at only 4 per cent would
amount to $59547, and at least one
half of per cent would necessarily be
charged off for sinking fund. The bal
ance sheet or the date named showed
a net profit, but 1t is plain that there
portions. In that balance sheet the
only interest item is 500, 1872 ION cap
ital charged to net revenue" and only
$2,5S7 is shown to have been set aside
for sinking fund.
Although the penny section plan pre-
walls and one may ride short distances
cheaper than in the United States, the
average fare per passenger carried in
this ten and One-half months was AIS
cents, no transfers being allowed.
Dunedin's tramways loan is $1.44O,-
600, and the rate of interest is 4 per
cent on $77S,0S0 and Az per cent on
the remainder. The official returns for
1905 showed deficit of .$1S,64S, not
including depreciation. OF the twenty
four two cent sections into which the
system is divided eleven are less than
one mile in length, the longest is only
one and quarter miles, and the aver
age length is .96S miles each Crowded
cars are relatively as numerous as in
the United States, and the same may
be said Of every other publicly owned
tram system in Australia. The munich
pal debt of Dunedin proper, less sink
ing fund available, was about $40 per
capita on March 81, 1906 1884 S1 Of
the total debt Of $4, 79S, 4S1 having been
accumulated on account of the munich
pality's trans, abattoir and water and
gas establishments.
In both Dunedin and wellington re-
sponsible persons asserted that politics
interfered with the management Of the
trans. A man connected with the Wei
lington system said that it was practi-
cally impossible for the head officials
to, dismiss one of his employees be-
cause Of political influence. So notice
able has been the effect of politics in
this and other matters that suggestions
have been made looking to the designa-
ton of Wellington, which is the capital
Of New Zealand, as federal territory
and to the Acknowledgement of all its
residents. The District of Columbia is
cited as precedent.
The revenues of the Wellington tram
ways exceeded the operating expenses
by $43,507 in 190o-06, but the interest
to $S1, GAS, and l per cent, amounting
to $1S,144, was charged off on account
Of sinking fund. Much dissatisfaction
with the arrangement of fares and sec
tons has been expressed by the public,
but the council has decided to make no
changes before the system is complet-
ed and until circumstances and the
general interest render any amend
ment expedient or imperative" A prof.
ect to extend. the system to one Of the
suburbs could not be carried out be-
cause the federal government stood in
the. way Of the performance GER
tain part of the work. The explanation
of its attitude lay in the circumstance
that line Of the government railways
touched at the suburb in question, and
the federal officials would not tolerate
competition. The people were the los
ers, because the tram line was needed.
All the tram lines In New South
Wales belong to the state government
and are confined to the city of Sydney
and its suburbs, the city Of Newcastle
and the town of Broken Hill. The to-
tai mileage in 1906 was only 126 miles
(single track. although the Sydney dis
trict alone has population Of 100000.
The inadequate service Of the Sydney
tramways Is evidenced by numerous
lines Of omnibuses drawn by horses.
although their rates are higher than
the tram rates. The omnibuses, which
are privately owned, are well patron
lied. The average cost OF construc-
ton and equipment of the tramways
was $139641 mile. This indicates
undue extravaganza, as In Melbourne
FIRST class tram lines have been put
flown and equipped for about $4,000
per mile.
During the last fiscal year the lines
ihowed a profit of $26S,608 witho,
however, allowing for depreciatit
which. on account of the high capitali-