The Gisborne Times PUBLISHED EVERY MORNING. SATURDAY, APRIL 11, 1908. MUNICIPAL GASWORKS.

Gisborne Times, Volume XXVI, Issue 2163, 11 April 1908, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. SATURDAY, APRIL 11, 1908. MUNICIPAL GASWORKS.

Dr. Williams has done the community a service in drawing attention in the course of his candidature for tlio Mayoralty, to the question as to whether or not Gisborne ratepayers should own their own gas supply. So far as the principle of municipal ownership is concerned, in regard to gas supply, tlio issuo to our minds seems simple enough. Tho business is eminently one that should be monopolised, and wkoro monopoly exists in regard to an article of common necessity it is manifestly wrong that that monopoly should bo privntely owned. Let private enterprise bo given all possible freedom ami every reasonable opportunity to secure tho reward of energy and foresight, but it is essential always that there shall bo reasonable competition to prevent any single individual or collection of individuals from using their powor to prey upon the community. Competition is obviously impracticable in tho case of a gas supply. It is bad enough to have ono body, whether private or public, to tear up tho streets and roads at will without multiplying such. Private companies have in tho past arranged for the ’supply of gas in most towns of the world, but of recent years tho tendency to municipalise this business has been constantly growing. There have been several instances in the Dominion, and the experience so far has been entirely favorablo to tho experiment being extended to other towns. As a mattr of fact, there are many municipalities that would gladly undortake tho work at the present time, but tlio difficulty of making reasonable terms with tho private monopolists has so far proved insuperable. In almost every case these gas corporations, with .tlio liberal franchises that have been given them, are now wealthy concerns, and it is this fact which proves the stumbling block to muuieipalieation. It is not difficult at any time to buy out the owner of a struggling business, but the position is vastly altered when, that owner is able to show consistent profits year by year that must increase as time goes on. This is precisely tho position with the local compaaiy. Tho Gisborne Gas Company secured its charter as far back as 1884, and the Act passed at that time conveyed some extremely valuable privileges, so valuable indeed that the company is already, though the town is still in its infancy, paying big dividends and putting aside large reserves every year. These facts are all set forth in tho article published in another column, and will certainly warrant very careiul consideration. It must bo remembered, too, that every year increases tlio percentages of those profits, and it does not require a. very vivid imagination to discover that in another ten years’ time the increased population ol Gisborne will be paying an enormous sum annually to tho fortunate shareholders of the company. In this connection it is useless wasting hard words over those who arc reaping a golden harvest in the present, and who appear likely to have a veritablo bonanza in the future. They are simply utilising in a thoroughly legitimate manner tho privileges granted them by' the Parliament of tlie country. Tho only question left appears to be for the ratepayers to make up their minds to buy the company out, and having made up their minds to do so, they must recognise that now is the cheapest time to buy. Every year the private company retains ownership its vested interests increase in value, and will be tho more difficult to acquire. Other schemes have been •mentioned as more essential to the

town, Iml without discussing their respective. merits it must bo remem- 1 bored tlmt tlieso all involvo an nil- 1 dition to tho rales. Tlio gasworks, on the other hand, would bo purchased as a going concern, and if ‘ purchased on reasonable tennis would pay its way from*the outsot. As already mentioned, the ownership and management of tho gas supply is eminently it suitiiblo undertaking for n municipality. The Town Council has general control of the streets', and, quite apart from the necessity of protecting tho financial interests of the community, it is proper that a business which involves constant iuterferonco with tho public highways should rest in n public body. Again, tho necessity for lighting the town much bettor than is done at present is recognised by all, and this could certainly bo arranged were tho gasworks owned by tho Corporation. Tho present company is a well-managed concern, and, speaking generally, gives satisfaction to tho consumers; but, after all, it is in business merely for tho purpose of accumulating dividends, whereas a municipality would, after paying intorest on the capital outlay, devote all its attention to providing tho host possible servico for tho community. Of course, it is quite possiblo that tho company would rofuso to sell oxcopt at n prico that was manifestly unreasonable. In that case tho people would bo thoroughly justified in ignoring tho company and erecting works of their own, and although it would probably bo many yoars before such a step could be cominondcd as financially sound, there is no question but that it would bo taken at somo t.imo. In all such negotiations those who have invested capital aro entitled to. fair compensation for the loss of a profitable business, but they cannot be permitted to roap for all timo the unearned increment resulting from an ever increasing population without somo effective , -opposition being raised by those who liavo to pay tho piper. It is to be hoped that this issue will he mado a vital one during the coming Mayoral I contest, and that during tho next Mayoral term arrangements will be mado to give the ratepayers an opportunity of voting upon tho question of taking over tho gasworks from the 1 private company which now owns it.