Although the tracks of the Blackburn and the Accrington Company Tramways lines’ connected at Church, there was no through running. In December 1891 what turned out to be the first of many discussions took place between the two Corporations and Companies, these discussions were to no avail, and with the exception of a special trip, which will be mentioned later, no through running ever took place.

1892
The Tramway report for the six months ending December 31st , 1891 was issued in February:

The maintenance of the cars, engines & plant amount to £646 for the current year as against £541 for the previous.

Abolition of Workmen’s Cars
In February the Company put forward a proposal to abolish the workmen’s cars on the Witton route due to the fact that there was an annual loss of £200 through the continued use of this service. At a meeting of the Town Council in May it was argued by some Councillors that the trams were for the convenience of the public and that working people should not be robbed of the privilage of the service, however, Councillor Hamer stated that they should not compel the Company to run the cars without profit. If the situation was allowed to continue, eventually the loss to the Company would mean the other services would suffer and the town would not be so well served. The Town Clerk stated that if the proposal was granted the Council had full powers to re-impose the services on the Company whenever they liked. A resolution was then passed giving permission for the Company to stop the trams in question, but that should the people of Witton at some later date desire the service, then the cars would be re-instated.

Advertising on the exterior of all forms of public transport was very common through-out the Country in the latter part of the 19th century, and Blackburn was no exception, though the adverts were not as liberal as some authorities and did not detract from the elegance of the cars themselves. On the engines the advertising panels were limited to the front (and rear!) and a panel covering the condenser sides. The trailers contained adverts in the panels below the upper-deck windows and along the stair sides, or ‘stringers’, some of the trailers also carried adverts on the end upper-deck panel, but this was not common. It would appear from photographic evidence that popular adverts were for “Bracewell Boots - Best and Cheapest” and for “Hudson’s Soap”.

At the August meeting of the Company, the local shareholders took over control of the Company from Messrs Cosh & Cramp, Mr R.A.Jackson became the Chairman of the Board. Unfortunately no records have survived as to the reasons or other details of the ‘take-over’.

1893
The half-yearly general meeting of the Tramway Company was held on March 1st, 1893 and the directors reported that traffic and other receipts for the 6 months amounted to £7,460, and the expenses to £5,830, leaving a gross balance of £1,629.

The total number of passengers carried was 1,171,326 or an average of 6,366 per day, as against 1,236,601 or 6,759 per day for the corresponding period last year. The mileage run was 169,834 or 923 miles per day, as against 164,516 or 900 per day for last year. The average fare per passenger being 1.46d. The Board stated that they “...have made every effort to keep expenses down, and the total expenditure has been reduced by £259.”. The engines, cars and plant had been fully maintained at a cost of £672, as a against £646 for the same period in 1882. The engine renewals increased £56, car repairs and renewals decreased £43 and plant repairs increased by £12. The permanent way expenses showed a decrease of £28. Six of the steam engines underwent substantial repairs during this time, the present rolling stock consisting of 14 engines, 16 cars, 11 horse cars and a stud of 62 horses.

The Board also stated that the traffic had suffered severely through the wet weather experienced throughout the six months, and also through the depressed state of the cotton trade in the district. In accordance with the decision of the shareholders, the directors insured against accidents (3rd party) with the ‘Employees Insurance Company of Great Britain Limited’, on “...the best possible terms that could be arranged...”. It was also reported that in August 1892, the directors paid the preference dividend which was declared on the half-year ending December 1st, 1890, amounting to £634, and they had written off the sum of £1,095 as depreciation for the year ending June 30th, 1892. The Board announced that these entirely dispose of the balance standing to the credit of net revenue account at that date. The gross balance of revenue account for this year stood at £1,629, after paying debenture interest of £450, and a loss on horses of £73, leaving a net balance of £1,105. From this sum the directors had written off £500 depreciation, leaving a balance of £605 to carry forward, or to be dealt with as the shareholders thought best.

It was also announced that Mr Alfred Love was retiring from the directorate. Also at this time the Company applied to the Corporation for permission to use steam on the Preston New Road section, and presented the Council with a signed petition from the residents of Preston New Road in support of the proposal.

At around 2:00p.m. on April 10th,1893 a “...consternation was caused in Victoria Street...”. At that time a tram from Salford to Billinge was passing through the Market with a number of passengers on board. A hole had been made in the ground by the Corporation workmen, who were repairing a burst water pipe. One of the horses attached to the tram stepped into the hole, which was near to the line. Fortunately the car was not over-turned, but the incident created a fright among the passengers.

Horse Car Over Turns
On December 5th a horse tram over-turned in an accident on the Preston New Road section. The Blackburn Times reported:-

“Shortly after 8:00a.m. on Tuesday an alarming tramcar accident occurred, a car being over-turned and one of the passengers injured. The car had left the Billinge terminus at 8:10a.m. and had proceeded safely till near the Park Gates at which time there were three passengers on board, two inside the car and one outside. Passing the Park Gates, the horse either became unmanageable or took fright for from this point the driver had great difficulty in keeping them straight, and although a lady desired to get on the car he was unable to pull the horses up. On they went at a great pace, the car swerving from side to side until they reached a point opposite Shear Bank road, when the horse made for the turn on the left to take the hill. The passengers became alarmed, and Mr Arthur Greenwood, who was on the platform of the car at the back made an attempt to leave the car, but was thrown off. At the corner of the road mentioned the horse swerved off to the right and the car over-turned with a tremendous crash, bringing the horses down with it. There were not many people around at the time, but those who were soon lent a helping hand in the emergency.

“The driver, John Marsh, escaped unhurt, and, without a moments delay, gave his attention to the horses, assisted by the conductor, Edward Pickup, who appeared dazed only from the mishap. Mr Openshaw, who was passing, gave his assistance to the release of Miss Chadwick, who was one of the passengers inside. She was got out with all possible haste in an unconscious condition, bleeding profusely from a severe scalp wound, where her head had struck the glass side of the car as it fell. She was taken to the surgery of Dr Stephenson close by, that gentleman dressing her wound and administering draughts for her relief...

“As the car lay over-turned, it was found that all the brakes had been applied and the front wheels were so badly smashed that they presented the appearance of cog wheels. The car was badly smashed, and the scene of the accident was visited during the morning by a number of people”

1894
In May the Corporation agreed to allow the use of the passing loop at the Church terminus by Accrington Corporation Tramways Company cars, this giving the Accrington trams a far more convenient terminus. In the Summer of this year the Company put forward to the Corporation proposals to lay lines to Audley, from Copy Nook, on the Church section, by way of Audley Lane, but the scheme was rejected on the grounds that it would not be economical to run.

Shareholders Meeting
On the evening of Monday August 20th there was a meeting of the shareholders of the Tramways Company held at the Golden Lion Hotel, Church Street, Blackburn, with Mr R.A.Jackson, Chairman of the directors, presiding. The report for the half-year ending June 30th, stated that traffic and other receipts for the 6 months amounted to £7,877.8s.7d. and the expenses to £5,338.15s.7d. leaving a gross balance of £2,538.13s from the revenue account, to which was added in net revenue account £14.10s. this being the difference in value on purchase and debentures, and reduced £476.15s.6d. interest on debentures and loss on horses, leaving a net balance of £2,076. the whole of which was written off for depreciation, amking a total sum of £8,920.10s.6d. written off for depreciation The report also showed an increase in the gross revenue balance compared to the same period in 1893 of £713.1s. and a decrease in the revenue account of £130.12s.6d. in interest in debentures. The directors had purchased during this period £3,800 of the Company’s debentures at a discount of £14.10s. and forfeiture of £55.7s.6d. in interest, thus effecting a saving of £70.7s.6d. and permanently reducing the debenture interest by £171 per annum, and the debentures, which originally stood at £20,000 were now £11,180, showing a total reduction of £8,820 in the debt and £396.18s. in yearly interest.

The rolling stock was the same as previous except that the stud of horses stood at 54. The analysis of the weekly traffic showed:

Mileage run..........................157,732
Passengers carried at 1d.......792,437
at 1½d....109,560
at 2d.......233,642
at 3d.......126,933

1895
On February 13th the half-year figures for the period ending December, 1894 were issued by the Company:
Traffic & other Receipts........£8,329
Expenses...........................£5,545
Gross Profit........................£2,784

After deducting £370 for debenture interest and losses on horses, a net balance was left of £2,443. The whole of which was, as usual, written off as depreciation for amounts standing in the balance sheet, for which there were no assets.

At the shareholders meeting, attended by 51 shareholders at the Golden Lion Hotel, Mr Jackson stated that the Company had made steady progress in the past 2 years, and providing that no unforeseen circumstances arose, the directors hoped to be in a position in the next 6 months to declare a dividend of 6% on preference shares and 3% on ordinary shares, the announcement was greeted by a loud applause by those present.

Child Killed by Steam Tram
On the afternoon of Saturday May 11th, an accident happened which resulted in a fatality of a 2-year-old child. A steam engine and trailer, in the charge of Charles Boden, left the Town centre at about 4:30p.m. when at approximately 200 yards from Intack, a young child, Clara Holde, ran into the road, apparently chasing a ball she had been playing with. The driver applied the brakes, pulling up within the distance of 2 yards, but could not prevent the child from being dragged under the engine. Screw jacks had to be used to lift the engine up to allow the body of the child to be pulled free, but she was already dead at this point. At the subsequent enquiry, held at the Intack Hotel, it was found that the life guard had not re-acted quickly enough to prevent the child from being crushed, and the Coroner stated that the driver was not to blame for the accident and a verdict of ‘Accidental Death’ was returned.

At the half-yearly shareholders meeting on August 1st it was announced that the 6% and 3% dividends promised at the last meeting would be paid, and it was also announced that for the previous 6 months the gross profits amounted to £2,595.10s. which was reduced in the net revenue account by debenture interest of £234.13s.6d. and a loss on horses amounting to £81.5s. to the net sum of £2,279.11s.6d. out of which the dividends would be paid.

Company Decide to Adopt Electricity
Also at the meeting the Chairman stated that it was the Company’s intention at a later date to adopt electricity as the motive power for the Preston New Road and Cemetery routes and that a firm of electrical consultants, Messrs Lacey, Clirehugh & Sillar, of London, were being appointed by the Company to report on the matter.

Also at the meeting the retiring directors, Mr Jackson and Mr Whalley were re-elected and Mr Lonsdale was re-elected as the auditor. This meeting was the shortest in the history of the Company.

The report from Mr Lacey of Messrs Lacey, Clirehugh & Sillar stated that the tramway system could be run cheaper by electricity than by the two present means. He stated that the average costs of working the horse sections of the tramways during the years 1893, 1894 and 1895 was 10.82d. per mile and the steam tram sections 7.27d. He was of the opinion that the cost of working the Preston New Road section by horse could not be less than 11d. With the present service the car mileage amounts to about 130,000 per annum on both sections, but where electric traction was adopted, experience had proved that the passenger traffic increased from 30 to 100% and in the case of Blackburn such an increase could only be met by adopting a more frequent service. Mr Lacey’s estimates were based on a minimum car mileage of 180,000 per annum, which represented approximately a 10-minute service

He was also of the opinion that the overhead wire system was both for practical and commercial reasons the most serviceable. He stated that the overhead lines recently constructed on the continent and at Bristol proved that such a system could be erected in a manner to practically eliminate all objectionable features.

By September the Company had a change of heart and decided that the Witton route should be electrified instead of the Cemetery section, and a letter was sent from the Company to the Corporation stating that of the Company’s intention to propose to run the Preston New Road and Witton sections of the system by electricity. The letter stated that the Company did not have the necessary capiital to carry out the scheme, and asked the Corporation if it would consider the question of providing the capital, and if so, on what terms. The Corporation decided to set up a special sub-committee to look into the matter.

An accident occurred in September 1895 resulting in an injury to a 5-year-old girl. At about 11:00a.m. on Saturday 14th, the young girl was crossing the road near to Salford Bridge and appeared not to notice the steam engine and trailer approaching. The driver could not stop the tram from striking the girl, but unlike the accident in May, the lifeguard worked and lifted the little girl outside the rails and she was only badly bruised.

1896
In early 1896 the Company laid a passing loop at Limefield in Preston New Road that was longer than that specified by the Corporation and approved by the Council to which the Company recevied a severe reprimand.

Visiting other Electric Systems
In January 1896 the Company proposed to electrify the Cemetery route, this would give complete electrification of the entire No’s. 2, 3 and 4 sections of the system. With a view to electrification the special sub-committee of the Council, which included consultant electrical engineer, Mr E.M.Lacey, Mr Fox and the Borough engineer, Mr A.S.Giles, visited Bristol, Coventry and Walsall to inspect the tramways in use. They reported that the Bristol system used single traction poles up one side of the road “..with arms sticking out..” except where the road was wide and in such places poles were placed in the centre of the road. It was recommended that this was the system that should be adopted in Blackburn. The sub-committee also looked at what advantage electric traction could have over steam and horse power. They stated that the usage of overhead wire caused no noise or flashing to speak of, and that cars ran better than steam or horse. Although they felt that street traction poles and overhead wires did not add to the beauty of a street, the advantages of the system far outweighed any drawbacks. They also particularly noticed that the electric trams do not frighten horses as much and from a safety point of view, electric cars can be pulled up, in case of emergency, much quicker “...within a distance of a yard or two when going at a rate of 12m.p.h. even on gradients of 1 in 14..”. The gradients in Coventry were said to be much greater than any that would be found in Blackburn. With regards to accidents the Committee were informed by the Chairman of Walsall Tramways that originally insurance companies charged for third party risks at a rate higher than in the case of steam traction, but experience of operations had satisfied the insurance companies that now, premiums had been reduced to about 60% less than is, at that time, charged for steam motive power. The Committee also recommended that when the Tramway Company electrifies the system that cars used should hold no more than 43 passengers (18 inside) without a covered top deck.

Mr Fox’s report
With a view to electrification the Corporation asked the Town Clerk, Mr R.E.Fox to report upon the legal position of the Corporation and the effect of the Tramway Company’s proposals. The report of Mr Fox’s was completed and presented to the Council in February 1896:
“Under the Blackburn Provisional Order of 1890 the Corporation are empowered to manufacture and supply electricity for motive power as well as for lighting, and under the Electric Lighting Acts they are authorised, subject to the consent of the Local Government Board, to borrow money for all the purposes covered by their electric lighting order, and thus the Corporation could, on making application to the Local Government Board and showing sufficient cause, obtain their sanction to the borrowing of the necessary capital required to enable them to put down at their electric lighting station the necessary machinery for providing the trams with electricity. As regards the amount which will be required for bonding the rails, the Corporation could, I think, safely borrow this, under their general borrowing power for tramway purposes, conferred upon them by section 273 sub-section 2(a) of the Blackburn Improvements Act,1882, but as regards the still further sum which the Company have asked the Corporation to expend in providing them with electrical tramcars, I consider this is an expenditure for which the Corporation can obtain no capital borrowing power, and therefore which they ought not to entertain. I may say that I have, in an interview with the Chairman of the Tramway Company, mentioned this to him, and he does not think there will be any insuperable difficulty on the part of the Tramway Company in raising the necessary funds for this purpose themselves.

“The total capital which Mr Lacey has reported to the Tramway Company that the Corporation require to expend in putting down the necessary plant at the electric lighting station to charge the tramway car with electrical energy, and to bond the rails and provide the necessary conduits and overhead line, including posts, is estimated at £13,000.

“Assuming for the purposes of this report that the capital expenditure of the Corporation will be £13,000, I would suggest that the Committee should insist upon the amount being paid off in a short term of years, not exceeding 15 years. Taking the term of payment as 15 years the annual interest and sinking funds would be £1,089.

“Assuming the Company were supplied by the Corporation with electricity at a cost price, and taking the average travelled by the Company’s tram cars during the last 3 years at 180,000 miles, which is the figure adopted by Mr Lacey, the annual cost to the Company would be £4,725. while the average annual cost to them during the last 3 years has been about £6,187, showing a net annual saving to the Company on electricity of £1,462 per annum. The Company contends that the wear and tear of the tram rails will be much greater as regards the present horse section by reason of the greater weight of the electric cars, but Mr Lacey has allowed for this in the 3.8d. per car mile for working expenses.

“It is for the Committee to decide what their share of profit should be, and upon what basis it should be paid to them. By way of example, suppose the Corporation decided to be content with half of this amount, viz:- £731 per annum during the term within which the capital amount expended, and interest, is to be re-paid, they would have three alternative ways of levying this amount from the Company:- 1) By charging a fixed rental of £731 per annum, in addition to the estimated works cost of 2.5d. per unit, the Company to take advantage of an increase of their receipts, or the risk of loss on reduction of them. 2) By charging one half of the actual saving or profit to the Company as between the before mentioned average of the three years, which would have to be taken as a fixed figure and each year’s profits in which case the average or risk last before referred to would be with the Corporation. 3) By fixing a price per unit for electricity supplied by meter to the Company so as to secure to the Corporation about one-half of the saving based upon the mileage of 180,000 miles. In this case the Corporation’s revenue could not be reduced, but might increase if the Company were able to run a ten-minute service. The last of these alternatives seems to me to be the best, and if it is adopted, it would have to be decided whether this sytem of charging the Company is to continue only for the term of the Tramway Company’s present lease, plus 21 years they have the option to demand after the expiration of the present one.”

The Committee decided to recommend that negociations be opened with the Company with a view to completing the arrangements.

In August several directors visited Lytham and inspected tha gas traction trams used on the Lytham to Blackpool tramway, and thay reported that they had come to the conclusion that such an arragement would not be suitable for Blackburn.

Half-year Report
Tramway Company half-year report:
Receipts.........…...£8,437, 9s.6d.
Expenses..............£5,385,14s.0d.
Gross Profit...........£3,051,15s.6d.
Nett Profit…......….£2,677, 2s.6d.
Depreciation.….....£ 844, 2s.6d.

This left a balance of £1,833 out of which dividends of 6% and 4% were paid on preference shares and ordinary shares respectively. No fewer than 1,361,031 persons had travelled on the trams during the previous 6 months, giving receipts of £8,050.15s.7d. There had been an increase in the gross revenue balance of £267,17s.6d. over the corresponding period last year and taking the year as a whole there was an increase of £324.14s.6d.

It was also reported that around this time that the cost of the tramway per mile was 8d. on the horse car sections and 6d. on the steam car sections.

To give a comparison, the Blackburn & Over Darwen Tramway Company half-year report for the same period was:

Receipts..............£5,545.17s.2d.
Expenses.............£4,313. 6s.1d.

During 1896 the Blackburn & Over Darwen Company had re-laid about three quarters of the tramway within the Borough of Blackburn with new girder rails and paved with granite setts. A new engine, from Thomas Green’s and Son’s and two saloon cars, from G.F.Milnes, had been purchased.

1897
Negociations continued through out early 1897 regarding the Company’s substitution for electric power for the three routes. The Council proposed that the Corporation would provide the necessary generating plant and traction poles and overhead wire, the Company providing the cars. The Corporation would then supply the Company with electric power at the following rates:

2½d. per unit for the first 144,000 miles
2d. per unit up and above

The above price per unit was about one-and-a-half times higher than the usual rate at this time. The Corporation would maintain and repair the overhead line at an annual charge of £100 to be paid in four equal installments.

Agreement for Electrification
The agreement was that the Corporation would carry out the work and the Company would repay the capital sum spent in equal annual installments over a 20-year period. The cost of the work was calculated on the basis of 7s.6d. per square yard for new paving and 2s.6d. per square yard for re-paving. The Corporation would then maintain and repair the roadway during the 20 year repayment period at a cost to the Company of 4½d. per square yard for old paving and 2d. per square yard for new paving for the first ten years and 4½d. per square yard for both old and new paving for the latter ten years. Interest on the loan was fixed at 3¼% per annum.

The area of roadway where work was to be carried out consisted of 1ft.6ins either side of the outer rails and 4ft. between rails, and the sections of the routes for such work were:

The short lengths excepted above had already been re-paved to the satisfaction of the Corporation.

The report for the previous 6 months working, issued in February, showed receipts amounted to £8,616.2s.3d. and expenses amounted to £5,332.3s.5d. The report also showed that in addition to ordinary repairs, 5 engines had been over-hauled, repaired, and 10 condensors had also been repaired. Seven bogie trailers and 8 horse car trailers had also been over-hauled, repaired and repainted.

Track work included several new points on the Cemetery and Church sections, so as to keep the permanent way in good order. The roof of the Simmon Street stables and granary were thoroughly repaid. Three horses were sold during this period, reducing the stud from 60 to 57 animals.

For the proposed electrification of the route to Billinge, along Preston New Road, the Corporation borrowed the sum of £8,000 from the Public Loans Works Fund.

In April 1897 in anticipation of the electrification of the system, the Corporation made several recommendations to the Company, which were to be carried out, and included alterations to the track layout. These were, a loop to be added at the Billinge terminus “...for the purpose of change when using trailer cars...”, this could well indicate that there was an intended use of steam cars on this route, though no evidence has materialised to show this actually happened. A double line was to be constructed from Sudell Cross to a point 70 yards past the entrance to the Corporation Park. The passing loop in front of the Town Hall on King William Street was to be lengthened, a new length of line was to be installed between the Adelphi Hotel and the Starr & Garter Hotel on the Boulevard as a terminus for the Church section trams. The Committee also made a statement that no Company car should carry advertising on the upper section i.e. the decency panel, and that on the Billinge section cars should not stop on the outward journey between Dukes Brow and Adelaide Terrace and Adelaide Terrace and Leamington Road. At the same time it was decided that for the new electric route along Preston New Road that the traction poles to carry the overhead lines were to be placed in the centre of the road, this formation would begin at the Town Hall and go along King William Street and along the entire length of Preston New Road. The Committee altered the specifications for the cars to be used and that the Company be allowed to use cars to carry 50 passengers, 24 inside and 26 outside. The terminus for the Witton trams was to be in front of the Crown Hotel, Victoria Street, but this was later altered.

Company offers to sell the Undertaking
It would appear that the Company were none too happy with all the Corporation proposals for electrification and in July 1897 the Corporation received an offer from the Company to sell the undertaking to the Corporation upon terms to be agreed. The Council decided to take up the offer and negotiations were entered into.

On the evening of Monday July 26th, 1897, an extraordinary meeting of the shareholders of the Blackburn Corporation Tramways Company Limited was held at the Crown Hotel, to consider the question as to the municipalisation of the tramways by the Corporation. A large crowd was in attendance, with Mr Jackson presiding over the proceedings.

Two agreements were decided upon and it was the general opinion that the Company had been treated fairly by the Corporation. The first agreement, with regards to the sale and purchase of the undertaking, contained the following clauses:

1. The Company shall sell, and the Corporation agree to purchase, the undertaking of the Company for the sum of £77,210, being at the rate of £11 for each preference share and £9 for each ordinary share, both being £10 shares and fully paid.
2.The purchase to be completed at the end of one calendar month after the Bill authorising the Corporation to carry out the agreement has received Royal assent, the Corporation, as from that date, to be entitled to be in possession of the undertaking.
3. The Company to continue the management of the undertaking until the date fixed for completion, and to be entitled to pay to their shareholders out of profits of the Company the following dividends, viz:
a. To the holders of preference shares as dividend of 6% annum
b. To the holders of ordinary shares a dividend of 4% per annum
4. The Corporation to take over all debts and liabilities which the Company may be subject to on the date fixed for the completion of the purchase.
5. In the event of the date fixed for the completion being the 31st of December, 1897 the Company to be entitled to pay all debentures falling due on that date, and for that purpose to be entitled to resort to any fund than standing to the credit of the Corporation, and to raise or borrow such sum or sums of money as may be necessary in such manner and in such terms as may be found expedient.
6. The Company not to enter into any contracts nor incur any liability beyond such as are reasonably necessary for the ordinary carrying on of the undertaking with the sanction of the Corporation, and the secretary of the Company, after each directors meeting, to communicate to the Town Clerk resolutions passed after such meetings.
7. The Company to maintain the track and plant, and their undertaking to the reasonable satisfaction of the Borough Engineer.
8. Each present director to continue in that office until the date fixed for the completion at the same rate of remuneration as he now holds office, and for a period of 5 years after that date to continue to act in the management of the undertaking, in conjunction with such committee or members of the Borough Council such Council may from time to time appoint, but with regard only to such matters as the Corporation may reasonably require, and not during such period of 5 years to engage in any concern, and in consideration thereof, and at the extinguishment of their office, the directors to be entitled to receive from the Corporation the sum of £1,840, to be apportioned as arranged themselves.
9. On the transfer of the undertaking, the Company to be dissolved and wound up, the present Secretary and Management of the Company to be retained by the Corporation, on the same terms as they held office on July 1st, 1897.
10. The Company to assist the Corporation in the promotion of the Bill, and the Corporation to use their best endeavours to procure the passing of the Bill as early as practicable.
11. The agreement is made subject to the sanction and approval of Parliament being obtained within 2 years from giving effect to the terms of the agreement.
12. The Corporation to indemnify the Company against all costs and expenses in the matter.

The second agreement was to provide for the contingency of the Bill not being granted by Parliament. The agreement being for the surrender by the Company of the existing lease of the tramways, and for the grant of a new lease thereof to the Company for further term of 21 years, on the same terms as the existing lease, except:

1. That the new lease is to contain the permission for the Company to use electric traction on the tramways, and
2. The new lease does not contain a covenant for the renewal of the lease.
It was reported that at this time the Company capital consisted of:
6000 ordinary shares at £10 each.........……........£60,000.00.0
21110 Preference shares at £10 each.................£21,100.00.0
Subject to debenture (bonds) amounting to.……..£ 6,650.00.0
Total...…………………………………………….....£87,750.00.0

It was also reported that the average gross profits of the Company over the previous 3 years was £5,015 per annum, and that the undertaking might be capable of earning, under existing conditions, an average minimum profit of at least £5,000 per annum. The Sub-Committee looking into this further reported that they had ascertained from the Company that the lowest price at which the Company could recommend their shareholders to sell the undertaking would be £85,610. They also suggested that the Corporation would need to pay the £87,000, borrowed to pay for the undertaking, back over a 25 year period and that the interest and sinking fund on that amount is approximately £4,857, and it was expected that the adoption of the Preston New Road and Witton routes to electric traction will increase the revenue by approximately £1,400 per annum based on a 15 minute service. After 25 years the Corporation would be in possession of annual profits of £5,000 - £6,000 which could be applied to the reductions in rates, and, in the meantime, the undertaking would have little, if any, charge upon the ratepayers during that time.

To give a comparison, for the first year of Corporation owed operations, Sheffield Tramways had made profits of £11,585, with receipts totaling £48,026 and passengers carried amounting to 8,454,078 for the year ending August 1897.

The Blackburn Weekly Standard reported that the agreements between the Company and the Corporation meant that”... the public are expecting great things in the way of additional convenience from the Corporation...” and they urged the ‘City Fathers’ to set about developing the lines in such important districts as Preston New Road. The newspaper suggested that this route should be extended to the Yew Tree, “...after that a connection could be made at Billinge and a line run up Revidge and through Pleckgate to the old toll house at the end of Whalley New Road. A short connection might also be made from here to the present Whalley New Road tramway (Cemetery)..”Another ‘extension’ was proposed by the paper which was from the end of Furthergate and then through the Audley district and out into Accrington Road at Shadsworth, “...giving the town a circular system of trams which would meet all requirements for many years to come...”.

Tramways of the World as of 1897:

In total in the U.S.A. there was at this time about 13,6000 miles of electric tramways, on the continent, Germany had about 500 miles, France 150 miles, Italy about 50 miles, whilst the total in the U.K. was less than 120 miles.