CITY FINANCE.

Dominion, Volume 3, Issue 793, 16 April 1910, Page 3

CITY FINANCE.

Sir,—At this time when the mind of the electorate is being exercised as to the best selection of ,a Mayor who will conduct the city's affairs in a sound and businesslike manner, the ratepayers would be well advised to carefully study the annnal report on the city finances as laid beforo last meeting of the council and published in last week's press. Although Dr. Newman clothes his financial statement in a mantle of optimism with promises for the future, some of which are good and some very indifferent, and all more or less uncertain, it-is very apparent to anyone who studies the report that' the present financial position of the city .is not altogether what it should be and that the nr-ed of a Mayor who will approach the situation with extreme caution is very great indeed. What would otherwise have been considered a good rendering of his stewardship considering the position of affairs when Dr. Newman entered upon office is spoilt by the deplorable condition of the finances of the electric lighting department. Dr. Newman explains that "tho introduction of the metallic filament lamp has lessened the revenne from private lighting by .£3IOO, and as more of these lamps nro used, so will this branch of revenue sink" and at the end of the present year "there may be no profit at all." Ho further explain:; by way of n palliative to the citizens and by a process of reasoning which I trust is peculiar to his Worship among the business men on the council that "the lessoned revenue aftor all is money left in tho people's pockots." Surely, sir, this idea of Dr. Newman's is contrary to tho policy which should be constantly advocated by the chief magistrate of this city, viz., to make each and every department' run by the municipality self-supporting. Even the most extreme optimist will admit that.if Dr. Newman's reasoning be carried to- a logical conclusion the time is not far distant when tho 12,500 householders who do not take the electric light trill have

to assist in paying the bills of 4500 who do. As a ratepayer, I strongly object to paying other people's lighting bills, and the sooner this department is placed on a self-supporting basis the better. I understand that six months ago a deputation from the Wellington Industrial Association waited on Dr. Newman and pointed out the dangers of his suicidal policy of purchasing with the ratepayers' money largo quantities of these new metallic filament lamps and selling them indiscriminately at practically cost price. The department «ven went to. the expense of widely advertising these lamps, the introduction of which reduces the rovenue so enormouslv. Tho Mayor, while bemoaning the Gas Company's success in making 850 new connections during the year 1908 as against the electricity department's 450,, then ejcplainod that by selling these lamps at a low price he hoped to make up for the loss- in revenue through the increased number of connections. Tho resnlt of his experiment is_ a miserable failure 05 evidenced by his figuios, ivhich show that instead of the new connections increasing as anticipated, they nave actually decreased from 450 per annum to 364, while the department's profit has deceased by over ,£2OOO, and its working expenses increased by •£1328. This lattei item his Worship carefully omits to explain, but clieerfnllv puts.forward the suggestion of introducing a cheap system of wiring which is apparentlj. objected to by the New Zealand Fire Underwriters who have from experience found it necessary to adopt certain rules and regulations for their own and the public's protection. Dr. Newman further advocates..the dangerous policy of selling motors, liko so many pianos, on the deferred pavment system, and he believes that if this is dpno a good profit will be shown next year. T should have thought that the Town Clerk's figures of .£5944 for outstanding rates jmd rents would have been a snf- , ttciently large sum. in deferred payments to make the Mayor pause before offerin" such a suggestion aa the above. I trust, sir, this letter ,may afford some tood for reflection to the ratepayers, whose duty it is to make it quite clear to the candidates for tho Mayoralty that experimenting •in municipal enterprises is neither desirable nor necessary if' each department is run on economical and sound business principles.—l am etc., ' ' A RATEPAYER. Wellington, April 12, 1910.