THE CORPORATION OF GLASGOW. ^.- 8 I TELEPHONE DEPARTMENT. i ABSTRACT STATEMENT OF REVENUE AND EXPENDITURE AND CAPITAL EXPENDITURE ACCOUNT For Year to 31st May, 1906. AND * CAPITAL ACCOUNT AND BALANCE SHEET ) As a,t 31st, May, 1906. HEAD OFFICE—CASTLE CHAMBERS, 65 RENFIELD STREET, GLASGOW. INDEX. PAGE Members of Committee on Telephone Service, 4 Report by Committee on Telephone Service, ... 5 Capital Expenditure Account, 10 Capital Account, 11 Revenue Account, ... ... ... 12 Net Revenue Account, 13 Balance Sheet, 14 Statistics, 15 Committee on Telephone Service THE LORD PROVOST (Wm. Bilsland). HUGH BRECHIN. BAILIE STEWART. A. SCOTT GIBSON. BAILIE FORSYTH. ROBERT HARVIE. BAILIE J. P. MACLAY. JAMES HENDERSON. TREASURER STEVENSON. JAS. H. MATHIESON. HUGH ALEXANDER. HUGH MILLER. J. JAMES ALEXANDER, ALEX. MURRAY. W. F. ANDERSON. THOMAS M‘MILLAN. WILLIAM BORLAND. WM. RUSSELL. F. JAMES ALEXANDER, Convener. Treasurer STEVENSON, Sub-Convener. WILLIAM BORLAND, Convener of Finance Committee. JOHN MACFEE, M.I.E.E., General Manager. A. R. BENNETT, M.I.E.E., Consulting Engineer. ; FIFTH ANNUAL REPORT BY THE COMMITTEE ON TELEPHONE SERVICE TO THE CORPORATION OF THE CITY OF GLASGOW. v The Committee beg to submit to the Corporation of Glasgow the Abstract Statement of Revenue and Expenditure for the year from 1st June, 1905, to 31st May, 1906, together with the Capital Account and Balance Sheet as at 31st May, 1906. The results as compared with last year will be seen from the following SUMMARY OF REVENUE AND EXPENDITURE. 1904-5. 1905.6. £24,170 19 9 Proportion of Rentals brought from last year, £25,165 7 Rentals received and outstanding for the year £54,051 6 from 1st June, 1905, to 31st May, 1906, ... £55,247 0 11 Less proportion of Rentals applicable to year 25,165 0 1906-7 carried to Suspense Account, 25,721 3 6 - 28,885 15 6 29,525 17 5 2,369 13 6£ Sundry Receipts (including Terminal Fees, £518 12s. 6d.), 2,769 9 11 £55,426 8 9£ Revenue, applicable to 1905-6, £57,460 14 4 Working Expenditure (including Post-Office Royalty, £5,727 6s. 7d. 34,680 8 3 and Terminal Fees, £795 9s.), 36,768 2 2 £20,746 0 6| Net Revenue, £20,692 12 2 out of which the following requirements had to be met £9,188 7 11 1. Interest to Loans Fund, £9,715 2 0 DeductInterestreceived on money lent, ... 4013 £9,674 8 4 10,053 6 8 2. Sinking Fund, 10,970 0 0 19,241 14 7 20,644 8 4 £1,504 5 114. leaving a surplus on the year’s operations of £48 3 10 which has been carried to General Depreciation Fund. MAINTENANCE. The whole plant has been efficiently maintained out ofRevenue. — — — 6 BORROWING POWERS. Borrowing Powers authorised under Section 2 (2) of the Telegraph Act, 1899: 1. On 12th April, 1900, ... .. £120,000 0 0 2. On 19th February, 1902, .. 100,000 0 0 3. On 23rd February, 1903, .. 80,000 0 0 4. On 15th March, 1904, ... .. 50,000 0 0 Total, £350,000 0 0 Deduct amount of Sinking Fund for year to 31st May, 1902, £1,960 0 0 Do. do., 1903, 5,806 13 4 Do. do., 1904, ... ... 8,343 6 8 Do. do., 1905, ... ... 10,053 6 8 Do. do., 1906, 10,970 0 0 37,133 6 8 Net amount of Borrowing Powers asat 31st May, 1906, ... £312,866 13 4 Amount Borrowed and not repaid as at 31st May, 1906, ... 308,066 13 4 Amount of Unexhausted Borrowing Powers as at 31st May, 1906, £4,800 0 0 SINKING FUND. The following Table shows the payments out of Revenue to Sinking Fund at the rate of3J per cent, per annum : Sinking Fund. YearofBorrowing. Grboosrsraowmeodu.nt Amountpaidasat Amountpaid Taostaalta3m1osutntMapyai,d 31st May, 1905. 3d1usrtiMngayy,ea1r90t6o. 1906,andappliedin reductionofdebt. Yearto31stMay, £58,800 0 0 £7,840 0 0 £1,960 0 0 £9,880 0 0 1901, Yearto 31stMay, 115,400 0 0 11,540 0 0 3,846 13 4 15,386 13 4 1902, Yearto 31stMay, 76,100 0 0 5,073 6 8 2,536 13 4 7,610 0 0 1903, Yearto31st May, 51,300 0 0 1,710 0 0 1,710 0 0 3,420 0 0 1904, 916 13 4 Yearto31st May, 27,500 0 0 916 13 4 1905, £329,100 0 0 £26,163 6 8 £10,970 0 0 £37,133 6 8 CAPITAL EXPENDITURE. The Capital Expenditure for the past year has been incurred in laying down new cables in various districts, and extending the system generally by — the construction of lines and apparatus for new subscribers it amounted to £10,951 8s. lid.; adding the sum of £350,273 16s. lOd. previously incurred, there is a total Capital Expenditure of £361,076 2s. 6d. The switch-rooms at present in operation are as follows, viz.: Central. Maryhill. Stepps. Bell. Springburn. Clarkston- Western. Milngavie. Cambuslang. Bridgeton. Shettleston. Bearsden. Kinning Park. Clydebank. Duntocher. Queen’s Park. Rutherglen. Balmore. Govan. Kirkintilloch. — — . 7 The following statement shows the work which was contemplated under the original scheme and the work actually completed: Actually Completed. WORK. Original Scheme. 1901-02. 1902-03. 1903-04. 1904-05. 1905-06. Completed instruments, 5,250 5,479 9,122 11,405 12,362 12,821 .. Partially-completed lines, 1,200 8,787 7,387 9,065 10,293 10,052 Switchboard accommoda- tion, 6,050 lines. 7,060 lines. 10,826 lines. 12,062 lines. 13,334 lines. 14,212 lines. Pairs of cable wires under- ground, ... 6,450 14,572 18,171 21,874 24,618 24,654 Mileage of pairs of wires incables, 4,938 miles. 11,061 miles. 14,029fmiles. 17,597 miles. 19,001 miles. 19,243 miles. Length of trenching. 22 miles. 94 miles. 127fmiles. 143 miles. 152 miles. 155 miles. Pipes going out of Ex- changes,... 32 126 135 150 162 162 Capacity of pipes goingf 6,900 pairs 27,000 pairsv 31,000 pairs 36,000 pairs 40,000 pairs 40,000 pairs out of Exchanges, of wires. of wires. of wires. of wires. of wires. of wires. ( Length of pipes, ... 32 miles. 104Jmiles. 127fmiles. 140 miles. 157 miles. 159 miles. Length of underground cable, 31 miles. 113fmiles. 162 miles. 205Jmiles. 221 miles. 227 miles. Ground poles, 2,326 691 1,799 2,544 3,006 3,186 Roof standards. 456 228 243 239 239 240 The following tables indicate briefly the financial operations of the Department: 1901-02. 1902-03. 1903-04. » 1904-05. 1905-06. 1. Total Capital Expenditure, £192,693 0 0 £270,938 0 0 £320,782 0 0 £350,274 0 0 £361,076 0 0 2. AveragegrosscostperStation, 35 3 41 29 14 28 2 6f 28 6 8* 28 3 3 (TotalCapitalExpenditure,) (includin'y spare piant and preliminary expenses). ’ (Total number of Stations,! 3. Amount borrowed and not repaid, 172,240 0 0 242,533 0 0 285,490 0 0 302,936 0 0 308,067 0 0 4. Total Revenue, 14,096 0 0 35,014 0 0 49,639 0 0 55,426 0 0 57,461 0 0 5. Total Revenue per Station, 2 11 H 3 16 9 4 7 oi 4 9 8 4 9 7| 6. Rentals carried forward to following year, ... 12,417 0 0 20,715 0 0 24,170 0 0 25,165 0 0 25,721 0 0 7. Public Telephone Receipts, 29 0 0 225 0 0 776 0 0 1,137 0 0 1,379 0 0 8. WorkingExpenses,excluding P.O. Royalty, and Ter- minals, 6,832 0 0 15,968 0 0 23,154 0 0 28,468 0 0 30,246 0 0 9. Interest paid, 2,680 0 0 6,642 0 0 8,537 0 0 9,188 0 0 9,715 0 0 10. Sinking Fund paid,... 1,960 0 0 5,806 0 0 8,343 0 0 10,053 0 0 10,970 0 0 11. Depreciation Fund,... 398 0 0 1,694 0 0 3,650 0 0 1,504 0 0 48 0 0 12. Loss on Terminal Fees, 725 0 0 1,131 0 0 299 0 0 200 0 0 277 0 0 13. Royalty to Post Office, 1,379 0 0 3,405 0 0 5,007 0 0 5,539 0 0 5,727 0 0 14. Total Expenditure, ... 13.698 0 0 33,320 0 0 46,000 0 0 53,922 0 0 57,413 0 0 15. Do. perStation, 2 10 0 3 13 Of 4 0 71 4 7 2f 4 9 6f 16. Percentage of Sinking Fund paid, plus Depreciation Fund to total Capital Per cent. Percent. Percent. Percent. PerCent. Expenditure, 3-93 4-2 4-67 3-79 3-34 17. Percentage of total Expendi- ture to total Revenue, ... 97-17 95-16 92-66 97-28 99-91 18. Percentage of total Revenue to Capital Expenditure,... 7-31 12-92 15-47 15-82 15-91 19. Percentage of outstanding Rentals to gross Rentals, 13-95 9-91 7-44 7-74 7-69 20. Percentage of Working Ex- penses, less Interest, Sinking Fund, and Depre- ciation to Revenue, less Royalty, ... 31-68 55-25 54-02 58-41 eo-ooi 21. Stations working, ... 5.479 9,122 11,405 12,362 12,821 8 SERVICE AND TRAFFIC. A continuous increase in traffic throughout the various Exchanges has taken place during the year, the rate at the end of the year being over 42 million messages per annum. An increase intrunk messages hasalso taken place; the loss incurred in terminal fees amounts to £277, as against £200 last year. PUBLIC TELEPHONE OFFICES. The number of Public Call Offices now open throughout the area is 394. The number ofcalls made from these offices during the year exceeded 370,000. TRUNK AND POSTAL FACILITIES. The Corporation Telephones are not only extensively used for trunk purposes, but also for the transmission to the Post Office of telegrams by telephone. The Committee, two years ago, took the opportunity ofreminding the telephone public of the facilities provided by the Post Office and the Corporation telephones, particulars of which are found in the Post Office Guide and the Corporation Telephone Directory, and it is gratifying to note from the increased traffic through the various exchanges that these facilities are nowbeinglargely takenadvantage of. GENERAL REMARKS. The completion of the agreement between the Postmaster-General and the National Telephone Company,Limited, whereby the purchase ofthe undertaking of the Company by the Post Office will be effected in 1911, and the decision of the Postmaster-General not only to refuse further licences to municipalities, but to nationalise all telephone undertakings as the existing licences expire, placed muni- cipal telephony generally throughout the country in a position ofgreat uncertainty, and seriously handicapped its progress and development. In view of these facts and of the statement made by the late Postmaster- General (Lord Stanley) in the House of Commons, that he would be willing to consider the purchase of the municipal telephone systems, the Telephone Committee entered into negotiations with the Postmaster-General, which negotia- tions eventuated in his offering to purchase and the Telephone Committee recommending the Corporation (Minute, pp. 1913-23) to sell the Glasgow Telephone system, under certain conditions, for the sum of £305,000. This was approved of by the Corporation on 5th July, 1906. The loss which it is expected the Telephone Department will sustain by the sale tothePost Officeis estimated at about £15,000. This loss, however, although a matter of regret, is insignificant in comparison with the benefits reaped by the telephone users in Glasgow, and indirectly by the community at large, from the cheaper and better service they have enjoyed as the result of the establishment of the Corporation telephone service. STATISTICS. There will be found on page 15 a statement of the work which has been executed up to 31st May, 1906, and ofthe number ofemployees. JAMES ALEXANDER, Convener of Telephone Committee. WILLIAM BORLAND, Convener of Finance Committee. Glasgow, 10th August, 1906. ACCOUNTS. 10 — CAPITAL EXPEN I From J ®r. 1st une, 1905, ForYearto 31stMay,1905. £ £ UNDERGROUND CONSTRUCTION— S. D. S. D. £ S. D. 13,808 14 9 Amount expended during year, ... 3,514 4 7 — OVERHEAD CONSTRUCTION 5,433 11 5 Amount expended during year, \ 3,596 16 9 CENTRAL EXCHANGE CONSTRUCTION— CJ 613 15 9 Amount expended during year, ... 365 1 8 SUB-EXCHANGE CONSTRUCTION— 3,499 13 2 Amount expended during year, ... 416 10 2 INSTRUMENT CONSTRUCTION— 4,454 1 0 Amount expended during year, ... 2,384 13 7 PUBLIC TELEPHONE OFFICES— 701 14 1 Amount expended during year, ... 410 7 9 FURNITURE AND FITTINGS— • 289 14 1 Amount expended during year, 135 15 11 PLANT AND MACHINERY— 319 18 1 Amounts transferred from Tool and Stores Accounts, ... 473 7 0 Amount expended during year, ... 215 5 4 29,594 9 4 11,038 15 9