OPINIONS FROM OTHERS.
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The Editor invites correspondence on all subjects connected with the paper only and, preferably, typewritten. The right of abbreviation use of commercial motors.should be an one side of the is reserved, ermi no responsbility for views expressed is accepted.
"That One-sixth of a Penny."
The Editor, TUE COMMERCIAL MOTOR.
12710] Sir,-Your contributor, Mr. E. S. ShrapnellSmith, is under a misapprehension as regards the nature of a municipal tramways depreciation fund, Ivaich even the efforts of Mr. Beckett have failed to remove.
Unless the Belfast Corporation policy is a remarkable exception, the depreciation fund does not cover cars, and is usually only in respect of track and short-life assets, as is evident from its magnitude.
If it is "a clear and unassailable fact" that vehicles are purchased out of the depreciation fund, what are the London County Council going to do for renewals seeing that they have no depreciation . fund at all?
i344 Their surplus is devoted entirely to interest and redemption.
The Glasgow Corporation accumulate a fund which covers cars, but this is exceptional, as they cleared the original loans years ago. • Furthermore, even supposing that the unnecessarily conservative policy be followed of providing for deprecialion on all assets and capital redemption as well, the latter will accumulate into a gift for posterity in the form of a transport system which can be renewed throughout and yet be free of all interest charges. Capital redemption is an investment and not, as one might imagine from his proposal, money thrown away. am afraid this is hut one of several serious flaws in Mi. Shrapne1I-Smith's proposals-Yours faithfully; Ilford, Essex. HENRY WATSON.