CORRESPONDENCE.

Globe, Volume XXII, Issue 1979, 28 June 1880, Page 3

CORRESPONDENCE.

The following letters appeared in this morning’s issue of the “Press THE PEICE WE PAY FOR GAS. TO THE BDITOB OB THE PBBSB. Sib, —In a recent issue of the “ Lyttelton Times," the editor administered a severe castigation to Messrs Austin and Kirk, because it appeared to him that they, in Bending in a tender to the Drainage Board, had asked a higher price for drain pipes than they should have done, thereby to extort the public’s money. Had such really been the case the chastisement would have been deserved, and the thanks of the public would have been due to the editor for the position he took on its behalf. But happily for those gentlemen they wore able to clear up their case to the satisfaction of both public and champion, so that in reverting to the chief causes of the complaint made by the editor of tho “Lyttelton Times ” and others, it must not be made to reflect again on its subjects. But for my purpose I must note the salient points of the charge above alluded to. They were three, as follows :—First. That they had asked about three times as much for their drain pipes as they cost in Scotland, Secondly. That, being greedy of profit, they attempted to extort an undue price from the public for their goods. Thirdly. Question —Did they tender deliberately at a price not based on the ordinary conditions of business, but upon some unduo influence or protection ? Concluding if they did they and their friends ought to be ashamed of themselves for attempting to extort undue advantages, instead of being content with fair business profits. Now, sir, I am not going to make a charge, but would rather ask to what extent, if any, the abovenamed charge, containing the throe points noted, may bo justly preferred against tho Christchurch Gas Company, on account of tho high price charged by them for gas. In comparing or rather contrasting tho price charged hero with tho prices charged for gas in a number of other places, I am, in the absence of farther light on the subject, unable

to come to any other conclusion than thafcw pay an exorbitant price for that commodity How is it?. Is it that being alone in the field having a monopoly, it offers an irreaistibli temptation to charge a high price, or is it I fact, and con it be demonstrated, that the cos! of making gas here, along with another pos sible circumstance — i.e., a limited demand—warrants the Christchurch Gas Company it charging such an immensely higher price than many other places which shall I aently be named ? 1 In considering the price charged for gas, 1 ! am of course aware that the price of it will be regulated by some three or four circumstances, the proximity of gas factories to coal mines first, and the price of labour and capital. Therefore, simply to quote prices charged in other places would be no criterion as to whether we pay a high price or not, but I think I could name a town, South Coast, England, against which Christchurch may bo fairly pitted, as regards facilities for obtaining coals, allowing the differences between the price of coals and labour, &0., there and here. Newcastle coals are brought within about six or seven miles by sea, and taken thence into Brighton by road or rail. The average price of house coals there would be 30s per ton, average price of labour, such as required for gas making, 40s per week, capital, say, five per cent, per annum. The price of gas now would be 4s to 4s 6i per 1000 ft. Here the average * price of house coals is, say, 50s per ton ; men’s wages, 70s per week ; capital, say ten per cent, per annum —gas, 14s 2d per 1000 ft —so, reckoning onetwontieth more for capital, the two remaining and principal ingredients are two-fifths more here than there. But gas is three and-a-half times as much. In Melbourne gas coals are 2Sj pop ton, gas 7s 6d per 1000 ft.; in Sydney 7s. Is the Christchurch Gas Company greedy of profit ? Does it deliberately charge a price for gas not based on the ordinary conditions of business, but unduly protects itself, knowing it has a monopoly ? If so, should the same con3lusion be drawn as in the case of the drain pipe tenderers ? Most people say healthy competition is good. I recollect a town in England in which, at a given date, the only ?as company there charged 7s 6i or 8s per LOOOft., but the coming into existence of a rival company brought the price down to oneaalf in about two years. I presume the same, or a similar effect, could be produced iere by a similar cause, though perhaps the dea may bo premature owing to the limited leinand for gas in Christchurch and neighoorhood. And much as is to be admired iihe principle laid down in political economy, that it is neither right or wise for Governments or public bodies to undertake what can bo done by private enterprise, yet, in order that wo might got our gas at a reasonable price, one could wish the City Council would do something. The appended table shows the price charged for gas in some of the principal towns in the United Kingdom in 1877 : _

Tho Christchurch Gas Company then charge for gaa more than three times as much as the highest price quoted above, and more than five times as much as the lowest there quoted. Is tho cost of producing gas hero so much more as to warrant the difference in the price charged for it, seeing too that the demand for that commodity is sufficiently great as to leave little or no excuse to the company on the score of supply and demand ? Tours, &c,, E. Binstead. THE AGRICULTURAL SCHOOL, TO THE EDITOE OF THE PBBBS. Sib, —Wo hear next to nothing about the use that is being made of the handsome legacy left to tho people of Canterbury by the late Provincial Council of 100,000 acres of land for tho establishment and maintenance of a school of agriculture. Of course the public are much interested in the matter, and hope to see the young men of the colony generally benefit from the practical and scientific instruction wo expect to see given at this institution. The Board of Governors, who are the trustees, have not been backward in purchasing a suitable block of land at Lincoln and erecting extensive buildings thereon. Indeed, they have spent upwards of £BO,OOO in this way, and provided accommodation for twenty boarders. They have also agricultural implements and machinery with all the latest improvements, and os to weighing machines, they have one so beautifully adjusted that by means of an indicator it will tell you the weight of a hair of your head. But the live stock—the sheep and cattle ! Of course there are not many, but they are very choice indeed, and I am glad to find that the Governors know it too, for they have been fortunate enough to secure the services of a man at a cost of only a little over £IOO per annum to look after them. What bargains these Governors make ! And this man also acts as groom to the gentleman who for the last two years has held the onerous position of principal to tho establishment at the small salary of £6OO per annum. I hoar ho is going to apply for a year’s sick leave, as his health is failing, owing to the length of time he has been watching for pupils who have not as yet made their appearance. But these Governors are too humble, too much inclined to hide their light under a bushel. Most of their work is done by committees, or in committee, which we know the reporters are told not to report. Of course they do not want the people to bo bothered, and naturally shrink from the adulation which would be showered upon their heads by a grateful public if all that has been done was made known. The income from this legacy is about £6OOO a year, owing to a large portion having been sold at £2 an acre and the proceeds invested on mortgage, so that if merely a nominal charge were made the endowment would be amply sufficient to support the school. But the Governors appear to deprecate anything like free education, though I must ,say there appears to me a vast difference between the free school supported by an endowment, and the charity school supported direct by the tax payors of the country. Perhaps they are right in wishing to instil into the scholars a feeling of independence—a feeling that they are not beholden to anyone —that their parents pay for all they get, and that their fellow-students will be those whose parents belong to the monied class—l will not _ say aristocracy. Some may call this settin class against class, but the line must bo drawn somewhere, so the charge for each pupil will be £59 9s per annum, and I daresay there will be a few extras squeezed in, such as washing, &0., so that none shall be there but the select few whose parents are able to pay this in addition to the cost of tho boys’ ordinary curriculum, and tho hoi polloi may stand and gaze like the dog who sees a fine bone hung out of his reach. I cannot help admiring this desire on the part of the Governors as regards independence, for I have two youngsters attending the Government free school, and I should feel much more independent and happy if I were allowed to pay something direct towards the cost of their’education rather than see my fellow-colonists heavily taxed to provide for it. But how are the Governors going to entice scholars into the school? Last year they invited applications for admission which were responded to by only one boy, nineteen years of ago, so the Governors very wisely postponed opening the school for another six months, when they again invited applications, but with this restriction, that no boy over nineteen should bo admitted. This has brought forward, I believe, two candidates, one of whom is the persistent nineteen-year-old lad, who the Government have at last, notwithstanding their rule, agreed to admit. There must be some peculiarity about this lad. Ho must be very backward or very forward, very slow or very odd, that he should be allowed the privilege of admission which is denied every one else over nineteen years of age. This second attempt to secure twenty boarders to make use of the £20,000 worth appears abortive. What can the reason be ? I know of very many who would like to have a boy there, and of several who would like to go there, though they are over nineteen, ay and twenty years of age. Are the Governors faithfully fulfilling the sacred trust placed in their hands ? Did the Provincial Council intend that the Agricultural School should bo placed within the reach of only the sons of the wealthy, or did they intend to found an institution making a special endowment for its maintenance in order that all classes—poor as well as rich—might partake of tho benefits to bo derived from a course of instruction in practical and scientific farming ?

) Ag far os I recollect —the latter decidedly. . Apologising for taking up so much space in , your valuable journal, i Yours, &0., L j One os the Prano. , I June 22nd. TAXATION. TO THB BDITOB OS THB PBBBB. Sib, — You favoured your readers last weefr in your columns with two leading articles on the financial state and condition of New Zealand. You make a comparison between two Governments—the Grey Government and the Hall Government. Is it possible to obtain a clear and true statement of the amount of available cash at the disposal of the Grey Government when they took office, the amount of revenue received from all oourcee, including loans, during their term of office, the amount expended, and a net balance shown of expenditure over receipts. The Colonial Treasurer, in his financial statement delivered on June Bth, estimated the deficit for 1870 at £131,824 ; but there was included in that amount £50,000 “ owing to the Bank of New Zealand as the balance of an overdraft of the late Provincial Government of Ctago.” You draw conclusions, and tender advice to your readers. Finance, Jor debtor and creditor accounts, will not be affected by the most zealous partizans. It is a sound principle that all parties enjoying the privileges and protection of the State should contribute to the revenues of the State. As to the best method of levying such contributions there will always be a difference of opinion, and this difference of opinion may be honestly entertained and promulgated. But on the question of reckless expenditure beyond the moans of the contributors to meet, there will be no difference of opinion. Whether it be Hall or Grey, they are equally culpable and dangerous, and being proved incapable of prudent administration in finance should be prevented from repeating such acts of feckless expenditure, and plunging the colony in serious financial difficulty. It is incumbent on the governing body in the State to see that no burdens are imposed on the taxpayers that can be avoided. Has this course been followed by successive Governments since 1871 ? When the Public Works’ policy was initiated, that policy at its initiation was based upon !a sound principle, viz., that if a railway was made to any district the land of that district should be held liable for any deficiency between the revenue raised ' from working such railway, and the working . expenses and interest on cost of construction. . That is the origin of the land tax, the value of land being supposed to be greatly increased ' by the construction of a railway. No person 1 in New Zealand more strenuously advocated \ this as a fixed and unalterable basis of railway ' construction than the Hon. John Hall, the I Premier. Is not the departure from this principle the root of our financial disease ? It is utterly impossible for railways, constructed and ’ conducted as they are in Now Zealand, to be made self-supporting. The deficiency in the 1 general revenue to meet expenditure is to be J found under the head of Railways and Edution. There has been expended on railways ' In New Zealand to the 3Xst of March last, , £8,495,074 6s 2d. The interest per year is, say, £425,000 ; expenditure for 1881 on edu- 1 cation, £297,750 ; total, £722,750. The net ' revenue to be derived from working the rail- * ways cannot be ascertained from the tables * published j but take it at one-fifth of 1 £950,000, the revenue estimated to be received 1 for railways for the year ending March 31st, ‘ 1831, £190,000; that leaves a deficiency to be provided for of £532,750. And this amount is about the amount the Colonial Treasurer requires to make the receipts and expenditure ( balance at the end of the financial year, ! March 31st, 1881. So that the £300,000 to ’ bo raised by the Property Tax is to be spent on education. Besides the above, there is 1 £6,791,546 7s 3d that has been spent out of f the public works fund, from which no interest £ is derived, amounting in round numbers to 1 to £304,000 per year. Now, how is this j burden to be borne by 450,000 people—men, women, and children. The interest on f £15,286,620 13s 2d is about £764,331} 1 education, £297,750; total £1.062,081. And 1 this has been added to the annual expenditure j in ten years, and to meet this added expend!- : ture we have £190,000 revenue from railways- 1 On this basis the account stands thus : 1 Interest on loans for public works per year, ’ £764,331 ; cost of education per year, ] £297,750 ; total, £1,062,081} less revenue net J railways, £190,000; increased annual expen- j diture in ten years, £872,081. I would ask has the personal property of the people been J increased in value by this increased annual expenditure or charges, and the answer must be, certainly not. Did the Grey Government borrow and spend this money ? Certainly not. There is no room for partizanship on this question, it has to be looked in the face ] and mot. The situation is so grave that only ] cutting down expenditure within revenue can j effect a radical cure. We have one-eighth < of the population in the Civil Service, and j nearly another eighth supported by charitable f aid in one form Jor] another, and proposed j taxation that cannot be met, however willing ( the taxpayers may be to bear the burden. The 'financial disease is being attempted ] to be covered instead of being probed to ( the core. The Colonial Treasurer, no matter ( who he may be, will have to take ] a new departure. If further borrowing is , resorted to, the disease spreads, and if the . expenditure cannot be reduced the end is not [ far off. I should be glad if you would * thoroughly investigate this question from an ■ impartial standpoint, putting clearly before ' your readers the resources of the country— ( the sources from which revenue is derived; ( the amount of money that has been expended j from which no revenue is derived, and on what works it has been spent; the amount ; of money expended on works that yield some • revenue, and the difference between the ] revenue realised from such works, and the i costs and charges for which they are liable. , Correspondents, however able and willing, cannot follow up these questions consecutively, as the editor of a newspaper can. Such a course would convince the people that increased taxation was an inevitable necessity, and that no exemptions can be admitted in the levying of fresh taxes. All must bear their share of the burden, according to their means ; an equitable system of taxation will have to be initiated, and real property or funded estate that has benefited most by the large unproductive expenditure from borrowed money should bear the greater portion, no matter by whom held. Yours, &c., John Jeesoit.

THE GLOBE, MONDj .gMgBgaMMMgM *1 jjggggSSgS ' THE WOOL CHIP OF THE WOULD. in favor of Ttf* 1 Croft, the latter was declared duly elected, and returned thanks to the ratepayers for returning him, and promised his seemed now to have warmed to their work, more than held their own. Lee (College] to come to any other conclusion than that w pay an exorbitant price for that commodity It needs not to say that sheep aro an important factor in the profits and comforts of the inhabitants of the world. A writer with statistical predilections writes :—“ The capital employed in feeding and clothing the civilised world is amazing. It is estimated that there are from 484,000,000 to 600,000,OW sheep in the world, or, at the lowest estimate, over made a fine run, passed several men, and being collared by Kesleven, passed the ball to How is it?, Is it that being alone in the field having a monopoly, it offers an irreaistibh thanked those who supported him, and although defeated this time, he declared his intention of trying for a seat on the Board at the first vacancy. A meeting of the Board was held immediately after the election, and Mr Anthony Hodgson elected chairman. Chapman, who gained a lot of ground by dropping it into touch. On it being thrown into play, the Eastern forwards fairly took possession, taking it quickly into the College twenty-live, and forced their backs to touchdown twice in self defence. Oottorill brought the ball out, and Lee getting hold of it, made temptation to charge a high price, or is it fact, and con it be demonstrated, that the cos of making gas here, along with another pos sible circumstance— i.e., a limited demand— warrants the Christchurch Gas Company _ir charging such an immensely higher price than many other places which shall pre 320,833 miles of sheep, if strung along, one closely following the other—or nearly enough to encircle the earth thirteen times. Of these, the United States have 35,000,000—that is, nearly enough to make a colid column of sheep, eight in row, from New York to Ban Francisco. Great Britain has about the same number of sheep as the United States, and her wool-clip increased from 94,000,0001b in 1801 to 325,000,000 in 1875. Prance and Austria produce about as much, but the United States product is only about 300,000,0001b — not two-thirds of that ot Great Britain. The great sheep-breeding countries of Australia, New Zealand, South Africa, and the Kiver Plato brought the total wool clip of the world last year up to 1.497,500,0001b, worth, at a low estimate. PARLIAMENTARY NEWS. another splendid run, finally nutting it into touch with a good drop. Time was now aently be named ? In considering the price charged for gas, 1 am of course aware that the price of it wil [By Telegraph.] Stringer, and the ball was returned bo regulated by some three or four ciroum[PBOII OtTB OWN CORRESPONDENT.] by Cotterill well into the Eastern ground, but matters were soon changed, Wilkinson, who was playing in splendid form, stances, the proximity of gas factories to coal mines first, and the price of labour and capiWELLINGTON, June 26. tal. Therefore, simply to quote prices In the no-confidence debate last night Mr getting hold of it made a grand run, using his charged in other places would be no criterion Dick made a very good and telling speech, one hands to great advantage, putting off his men right and left, but was collared' by Helmore, as to whether we pay a high price or not, but of the best during the whole debate. At I think I could name a town, present there is no sign of tho division taking who all through had been working very hard for South Coast, England, against which Christplace earlier than Wednesday, which I menhis aide. Erom a broken scrimmage Fuller, church may bo fairly pitted, as regards faoilitioned yesterday as the probable date. The well backed up by Campbell and Atack, rushed tho ball for some distance, but Grigg ties for obtaining coals, allowing the differestimated relative strength of parties is unences between the price of coals and labour, &o., there and here. Newcastle coals are brought changed. A Representation Bill is about to bo introwho passed nearly all tho Eastern men, but within about six or seven miles by sea, and duced by tho Government, but it is not prohis chance of a “run in” was spoiled by taken thence into Brighton by road or rail. bable that it will be before the House for Parker, who went for his man low, and floorThe average price of house coals there would 16300,000,000. another week or so, as some of its provisions ine him, the ball rolled out of play. On being be 30s per ton, average price ot labour, suoh as required for gas making, 40a per week, are still under the careful consideration of the thrown out a “scrum " was formed, T. Smith NEW ZEALAND PRISONS. Cabinet. The redistribution of representsworking the ball through, but Chapman got capital, say, five par cent, per annum. The tion is to bo based mainly on population, possession and again the ball went into touch, price of gas now would be 4s to 4s 6i per Sir Julius Yogel (says the “Home News”) has had a difficult task to perform in selecting a suitable person ■to fill the appointment of Inspector of Prisons in Hew Zealand. The existence of any vacancy in an appointment of emolument or trust suffices now-a-days to bring forward a host of eligible candidates. Even for a secretaryship or a manager of a savings bank, the list of applicants always includes a number of admirals and generals and other distinguished persons. Eor a well-paid post in a popular colony the competition was certain to he great. Although numbers were kept down by the announcement that the applications of only those with previous experience in the management of prisons would be entertained, a crowd of candidates offered themselves. With infinite pains the Agent-General sifted some concession, however, being made to bringing the third spell to a close. Till this time 1000ft. Here the average price of house country districts. The boundaries of tho new neither side had gained any material advantage, and evidently all had made up their minds ooala is, say, 50s per ton ; men’s wages, 70s districts will be, so far as possible, contorper week ; capital, say ten per cent, per annum minous with those of existing country Road to do their level best in tho last spell, but the —gas, 14s 2d per 1000ft—so, reckoning onetwontieth more for capital, the two Boards or other districts. I believe also that Easterns proved the batter men, and soon took each district will return cnly one member,and the ball into very dangerous proximity to the remaining and principal ingredients are that there will be a slight increase in the total College goal line, where several scrimmages two-fifths more hero than there. But numerical strength of the House. wore formed, tho ball eventually going into gas is throe and-a-half times as much. A letter of thanks has been sent by the touch, and when thrown out was taken a long In Melbourne gas coals are 28s per ton, gas Government to the Civil Service Commission way down tho ground by Chapman. Martin 7s 6d per 1000ft.; in Sydney 7a. Is the Christchurch Gas Company greedy of profit ? in acknowledgment of its services. This was sent it back with a good drop to within a few magnified to-day into a rumor that an intiyards of the goal line, when Kenvig getting Does it deliberately charge a price for gas not mation had been given that the further serthe ball as it rolled out of a “squash,” ran based on tho ordinary conditions of business, vices of the Commission would not be reclose to tho lino and passed to J. Smith, who but unduly protects itself, knowing it has a quired. I am assured that no such intimation ran in and secured, the first and only touchmonopoly ? If so, should the same conhad been given ; on the contrary, although down in the game. The try at goal by Atack elusion be drawn as in the case of tho drain the Commission being returned lapses, it rewas unsuccessful, and the ball being well folpipe tenderers ? Most people say healthy mains open to the Government to avail themlowed up, Leo was forced to touch down, competition is good. I recollect a town in selves of the further services of the same bringing it out and bouncing it ho was England in which, at a given date, the only gentlemen if it should be deemed advisable. collared before he had time to take his drop, gas company there charged 7s 6i or 8s per didates remained. These ho saw personally, and then having made a further selection, took the advice of the chief prison authority in this country, Sir Edmund du Cane. By Tho time for sending in the property assessment statement has been extended from June and tho ball was again rushed over tho goal 1000ft., but tho coming into existence of a line, when Hyman and Nowell fell on it rival company brought tho price down to onethe 30th to Monday, August 2nd. THE BEER TAX. together. The umpires not seeing whose ball it was, left tho captains to decide, and the Easterns gave the College the benefit of the half in about two years. I presume the same, or a similar effect, could be produced here by a similar cause, though perhaps the potent person ought undoubtedly to be secured. The choice was no doubt wide. Prison matters have engaged much attention in this country in late years, and the number of those with special knowledge and experience in them has greatly increased. Prison discipline has been very considerably modified [By Telegraph.] [from otjb own correspondent.] WELLINGTON, June 26. A depntation representing brewers’ interests in various parts of tho colony waited upon doubt. This brought a most enjoyable game to a close. After the usual hearty cheers, the rival teams separated. PUBLIC MEETING AT LBESTON. idea may bo premature owing to the limited demand far gas in Christchurch and neighborhood. And much as is to be admired the principle laid down in political economy, that it is neither right or wise for Governments or public bodies to undertake what can be done by private enterprise, yet, in order that wo might got our gas at a reasonable price, one could wish the City Council would do something. The appended table shows the price charged for gas in some of the principal towns in tho United Kingdom in 1877 :— Price per and improved—prison construction also ; and the buildings moat recently erected here are the Colonial Treasurer this morning to urge ;heir objections to the beer tax. The followIn accordance with a requisition signed by -excellent models, on the most perfect plan at ing brewers were present:—Messrs Marshall a number of ratepayers of the Selwyn County, the least possible cost. The new inspector, (Dunedin), Lintott (Oamaru), Lee (Christand presented to Mr John Rennie, chairman whoever he may be, ought, therefore, to bo able to take out with him to New Zealand all church), Harley and Lingard (Wanganui), Duigan (Palmerston), McCarthy and Staples of tho Ellesmere Road Board, a public meeting was held in the Leeston Town Hall, the latest improvements and the newest ideas (Wellington). They were introduced by Mr on Friday evening, to consider the property on the whole subject. K. 0. J. Stevens, M.H.R. The following tax. printed objections were placed before Major The Chairman (Mr John Bonnie) stated A DUBIOUS BEEHIVE. Atkinson: —“That in a young colony it is unthat he had called the meeting, as ho knew wise to clog the springs of local industry by that a considerable amount of interest was Manchester ... 20 3 4 — taxation.” “ That the tax now levied on taken on the subject, and that he had adverBirmingham ... 15 2 7J- to 3 1 A gentleman, who for sundry reasons colonial beer is a most serious burden upon tised it to bo held in the Town Hall, as ho Sheffield 15 2 9 to 3 0 desires to be nameless (says the “ Eangiwas sure that the Road Board office would Bristol ... ... 13£ 3 3 — tikei Advocate”) but upon whose veracity not hold them all; and as Mr R. Lockhead’s Brighton ... ... — 4 0 to 4 6 implicit reliance may be placed, _ in* different brewers throughout the colony fully name headed the requisition, he would call Leeds 16 3 3 — Newcastle-on-Tyne 14 2 81 —