The Pamphlet Collection of Sir Robert Stout: Volume 8
The estimated cost of the scheme may, at first sight, appear to be a very heavy undertaking, yet a little investigation will show that it will prove, independent of other advantages it possesses, a safe and profitable investment for capital.page 7
|Daily passengers available to higher suburbs of Dunedin say, 300 at 2d||£2 10 0|
|To and from Roslyn 1800 at 3d||22 10 0|
|Daily fares||£25 0 0|
This amounts to, say, £7,500 per annum, which, after allowing a very large margin for working expenses will leave a balance of over £3,000, or equivalent to at least twenty per cent annually on the amount of £15,000 invested in the construction and equipment of Section No. 1.
Regarding the other section of the line, there is not sufficient data on which to base any financial calculations but it may be assumed that it will pay a fair interest on the amount expended.
But it is not the present travelling population that should be taken into account.
In all parts of the world where easy and cheap communication has been provided, the travelling population has increased to a very great extent, and in proportion with the advantages gained
In San Francisco, on the Clay street tramway which is similarly placed and worked on the principle recommended, it has proved, after running for 5 years, that hill property in the vicinity has increased treble in value and as a proportionate number of new residences have been built; the travelling population could be fairly estimated to have increased to an even greater extent.
The projected scheme should commend itself on the following grounds:—
That it will be the means of bringing the favourite residential suburbs within easy communication with the City.
It will open up and render valuable a considerable extent of land lying vacant in Roslyn, Half-Way Bush and Kaikorai Valley, together with the Dunedin Corporation Reserves which in all probability will be sub-divided and leased as building sites.
It will add to the wealth and prosperity of Roslyn and the suburbs generally, and will prove a safe and remunerative investment for capital.
Your obedient servants,
Reid & Duncans, C.E.