Greymouth Evening Star, AND BRUNNERTON ADVOCATE. MONDAY, DECEMBER 9, 1901. THE BOROUGH LOAN.

Greymouth Evening Star, Volume XXXI, 9 December 1901, Page 2

Greymouth Evening Star, AND BRUNNERTON ADVOCATE. MONDAY, DECEMBER 9, 1901. THE BOROUGH LOAN.

It will be pleasing to the ratepayers to know that, notwithstanding the tightening of the money market, and the rumor that got abroad that the £IO,OOO loan could only come as a second charge upon the town, the loan which closed on Saturday was subscribed, and the proposed works will in consequence be at once gone on with. The loan is secured by special rate; and is in exactly the same position as the £40,000. The loan provides among other things for the extinguishment of the overdraft existing at the end of March last, so that the total Indebtedness of the Borough will be £50,000, For this the town will be provided 'with a water supply—a most essential thing for the health of the community—a complete system of drainage—also required for health purposes—a very complete and up-to-date gasworks—the loan providing for an expenditure upon this of £l5O0 —and a handsome and commodious town hall, public library, and museum. The annual charge for all this money including a sinking fund, which goes towards extinguishment of loan, will be £3,000 per annum. To meet this charge, as we have said, special rates have been levied, but, with ordinary care they need not be collected ; in point of fact, we venture to say there will be no need to collect them ; indeed, on the contrary, the expenditure in all likelihood will tend ere long to a reduction of the present ordinary rates. Last year the gas alone gave a profit of £2OOO, or twothirds of the sum required. Consumers, naturally enough, say it is unfair that they should be required to pay so much towards the interest on loan. It must, however, be borne in mind that when the loan proposals were first mooted it was distinctly stated that the profit from the gas would go a long way towards paying for loan, and it was upon this understanding that the loan was sanctioned by the ratepayers. If, therefore, no reduction was made, the Council could not be accused of breach of faith. We are pleased, however, to be able to inform our readers that with the large increased and daily increasing consumption, that a very liberal reduction will be possible at the end of the second year of Borough ownership, without narrowing the margin of profit; indeed, we believe that after allowing for a reduction there will, owing to the larger business, be a greater profit. The water is reckoned to bring in £I3OO per annum. This sum will, of course, come out of the pockets of the ratepayers; but the ratepayers will get a constant and good supply of pure water—an essential to health—and will save the amount in water tanks, spouting and repairs appertaining to same, so that in reality the £I3OO will be no additional charge. In regard to the town hall it will provide a long-felt want, and 'remove a reproach from the citizens of not having municipal chambers and a public library worthy of the name. A direct saving of £lO4 per annum in rent will also be efiecfced. This, in itself, will pay interest on £2,000 of the loan. If, therefore, we look at the loans on purely business basis we find that the ratepayers will not only possess a gasworks of their own, a water supply, drainage system, town hall, library and museum for nothing, but will make an actual profit out of the advantages and improvements gained. The annual charge is £3OOO, against which we have gas, £2000; water, £1,300; a saving in rent, £lO4 ; making a total income of £3,404 ; or a surplus of £404 per annum. With such an assurance surely the most obstinate opponent of advancement, of public convenience, and health, will agree that the ratepayers acted wisely in sanctioning the loan, and the Council beneficially in giving effect to such permission. In giving a statement we have not touched upon the saving to ratepayers through a reduction in insurance rates ; but this amount, we are credibly informed, will be at least £BOO.