ORDINARY LOAN FOR WATERSUPPLY FOR FIRE PURPOSES ONLY.

Kumara Times, Issue 1741, 29 April 1882, Page 2

ORDINARY LOAN FOR WATERSUPPLY FOR FIRE PURPOSES ONLY.

[to the editor. ] Sir, — I should be wanting in ray duty to the burgesses of this town, did I not place this question before them in its. proper light. It has been argued that the ordinary revenue of the Borough was sufficient to- defray the cost of this work if so, I ask why are special powers asked, or why on Monday next, are the burgesses called upon to vote “yes” or “no,” for raising the money required ; or, again, why has some £3O to be expended in bringing this question in its present form before the ratepayers. I will briefly explain why—and warn all against the dangers of borrowing under the conditions set forth in the present proposals. In the first place, the amount asked for, £IBOO, will not half complete the work. Since the estimate was made- out iron

pipiiig was gone up hi the market £3 10s per ton ; then again'; is yet the Borough Council have not orie inch of ground secured under the Public Works’ Act, whereupon to lay a pipe or erect a tank or dam. The line of proposed piping crosses several mining claims each qi which would denland corapensatidtt; Then again, there is no estimate for hydrants or branch piping, cost of supervision; and incidental expenses’. I have therefore no hesitation whatever in stating that it will take £3OOO to, lay the water on to Seddoil street arid Main street, so fat s'dutli as the post-office. At this point I asik what have the Burgesses done that they should be called upon to pay a special rate of two Shillings in the pound simply to have an imaginary benefit placed in front of the buildings in Seddon street and Main street to the post-office. If a loan be raised, all will have to repay principal and interest; therefore all should have the advantages, if any. Therefore another £IOOO will be required. Taking the-£3OOO as my basis I find that the Burgesses will have to repay as followsj—First year, £7lO ; second year, £O/5 ; third year, £640 j fourth year, £605; fifth year, £570 ; sixth year, £530 ; or a total of £3735. This does not include cost of raising the loan which may be set down at the lowest at 2h per cent. Then again a Commissioner will have' to be appointed, probably also a receiver, all of which means extra expense. Then again, there is the charge for supplying water to the tank. The offer of Mr Holmes was to the effect that for £25 per annum he would supply water for fire purposes only. If used for other purposes then the Council would have to pay extra. I therefore set down the cost of water at one head per week, or £l5O per annum. Now, for all this exta cost, what benefits are we to receive 1 Why that in case of tire water is handy, and insurance rates will be lowered. This I deny “in toto.” At Ross where they have a splendid supply of water, and where I have seen the side of a building knocked in—such is the pressure of the water’—they are paying just the same as we are now for insurance. Again, there are other places which have fair water supplies and still where the buildings are composed of wood the same rate of premiums are paid. When put into figures it will be found that the amount we are asked to vote upon to pay, namely £3750, would for the period of six years pay the insurance on £20,750 annually, and I, for my own pax-t, would very much prefer, could it be lawfully done that the Borough should insure all buildings, and then, if misfortune did come in the shape of fire those who suffered would be benefited. To be asked to pay an indirect insurance premium for allowing sinking' water to rust away iron piping is more tlxan the good sense of this community, I hope will tolerate. Now the law on the question is clear—see 140 Municipal Corporations’ Act, 1876 y lays down how special loans are to be published, and as published no alteration can be made, therefore special rating, must inevitably take place if the proposals are carried by the vote on Monday next. Now the proposals have not set forth how much is to be raised by special rate, or how much from ordinary revenue, therefore it being a special loan for a special purpose the whole must be repaid by special rate—The average per annum required would be £623 10s, and this according to our present rate roll would be over 2s in the pound. Again our rate roll must inevitably become smaller,-and the same amount having to be raised each year it might in the end reach a special rate of (3s in the£l). Some might argue “Oh, but theßorough Council will not surely tax us to that amount.” I at once say that the Borough Council are powerless in the matter. Section 167 Municipal Corporations Act, 1876, lays down the law, very explicitly—all powers for the recovery of rates, tuffs, rents, or other moneys of the Borough fund, shall, after the appointment of a receiver, and in respect of all moneys hereby vested in the Council shall cease to be exercised by Council but shall be vested in the receiver. Whilst section 168 gives the receiver the power to amend the special rates, and reads as follows : — “The receiver shall in respects of any special rates vested in him have the power given to the Council to amend a special rate as px-ovided by the 113th section of this Act. But such power shall be exex-cised only upon an order by a Judge of the Supreme Court.” And this power remains in force until all moneys are paid. Under these circumstances all property owners should weigh well both sides of this question and vote as they think would be most advantageous. The only ones to reap any advantage by the present abortive proposals are the Ironfounders in England, the ship owners and our local pipe fitters axxd braziers. Vote no is my advice.

R. J. Seddon, Member Borougli Council, Kumaara, April 29, 1882.