Accrington on Rails - The Tramways: A Complete History - Robert Kenyon

annual revenue. The annual charges against this figure would be as follows - the present depot = £1,776. Costs of reconstruction @ 3½% interest = £2,845. Cost of electrical equipment @ 3½% interest = £2,414. Costs of stock and equipment @ 3½% interest = £368. For land and property purchases @ 3½% interest = £132. TOTAL = £7,535. This would leave a profit of £365 at this present time. The earning from the tramway depends to some extent on the weather and conditions of trading. I am informed that the Accrington Steam Tramway Company had earned £700 more during 1906 than during the same period in 1905. This was also considerably greater than in 1904. The following is an estimate of traffic prepared by an expert, Mr Stephen Sellon, who was also involved in the preparation of our Act of 1905. This will supply an interesting comparison to my report. TRAFFIC - Having carefully considered the proposals of the Corporation from a financial aspect as follows - The population which will be directly served by the Corporation’s Tramway in Accrington, Church, Clayton-le-Moors, Huncoat and Oswaldtwistle amounts to 74,850 people. I also estimate that in these directly served populations that each individual will be carried 60 times per annum, giving a total of 4,491,000 passenger journeys. To add to this, my estimate is that from the feeder districts of Blackburn, Haslingden and Rawtenstall with a combined population of 198,000, there will be an additional 964,000 passenger journeys generated, making a grand total of 5,455,000. Taking an average fare of only 1 penny each the gross traffic receipts would be (just shy of) £22,730 per annum. With regard to future probabilities, I believe that this traffic will increase. The traffic receipts arrived at equate to £2,933 per route mile each year, which is a ‘moderate’ amount when compared to similar undertakings in similar districts. This can be generated by an average service frequency of every ten minutes, when operating at an average speed of 7mph and the receipts are just over 10 pence per car mile. This is a very moderate level of service, and I have no doubt that it will be necessary to run cars at an even greater frequency on a considerable proportion of the system. As a matter of comparison, the existing Steam Tramway Company service was earning 15·5 pence per car mile in 1904.The average service level thus arrived at, can be operated using 14 tramcars. My estimates allow for 18 cars, which affords the usual margin for maintenance, spares and times of extra traffic.The financial results I estimate will be as follows - Traffic receipts = £22,730 per annum. Working expenses (60%) = £13,636 per annum. Net receipts = £9,092.The interest on the sinking fund @ 6% on loans taken of £114,500 gross = £6,870 per annum, and a credit balance of £2,222. There is an alternative method of arriving at gross earnings. No doubt figures based upon the actual experience of the Steam Tramway Company will appeal strongly to your Committee. Their gross traffic income inclusive of parcels traffic was in 1903 - £17,131, in 1904 - £17,296 and in 1905 - £18,092. With a more efficient and speedier tramway service, it is certain that the gross income from traffic will increase. In Burnley on one section of their system, the increase was as high as 89%. If we take for granted that the increase will be 30%, then the total income from traffic would be £23,520. If we then take for granted that working expenses will absorb 70% of the total gross income, the annual revenue will be £7,056, plus the proceeds from advertising of £400 would give a total of £7,456. In total this is within £89 of the annual charges, which the existing debt plus the proposed capital expenditure will involve, and is one on which I believe absolute reliance can be placed. With regard to the 70% quoted, the following comparisons may be made. In proportion the figures are – in Burnley 70%, in Darwen 66%, in Blackburn 63%. COMPARISIONS These are the comparative estimates of the Borough’s own Engineers and those of Mr Sellon. For reconstruction of the existing tramway and the construction of the new extensions – Borough’s Engineer £50,800 - Mr Sellon £50,300 . For the cost of electrical

127