The Loan Proposals.

Manawatu Herald, Volume XXVIII, Issue 3712, 15 September 1906, Page 3

The Loan Proposals.

STATUTORY RUBRIC MEETING. The meeting of ratepayers called by the Mayor for the purpose of discussing the three loan proposals already advertised in the Herald was held in the Masonic Hall on Thursday evening. About 50 ratepayers, were in attendance. The Mayor, Mr B. G. Gower, presided, and, after explaining the object of the meeting, called on the Town Clerk to read the proposals. The loan proposal of ,£7OOO for providing the town with gas was first discussed. Cr Stiles expressed himself as being in fat or of the Borough rufming gas-works independent of a company. He quoted figures to show the profits of the Marton Municipal. Gas-works. If Marton could run municipal gas-works satisfactorily Foxton should be able to make the proposal a payable concern. The Mayor pointed out that the venture should be self-supporting, and that although a rate would be struck, yet it would not necessarily be enforced. If the gas paid, the extra rate would not require to be collected. Mr A. Jonson expressed himself as strongly opposed to a loan for gasworks. The ratepayers were rated quite enough already. Cr Frankland thought it would be exceedingly dangerous for the Borough to contract a £7OOO loan. There would be a very heavy interest —,£350 a year—as well as making provision for a sinking fund. The best method would be to accept an offer from a private company. At the same time they should take care not to give away their birthright, or that of their children. Mr W. Ross considered that the municipal gas-works established in other towns had proved successful investments. Napier had ‘allowed a company to erect gas-works. The result was that the- company are now paying a dividend of 30 per cent., and the Council could not purchase them. The profits from such a concern should go to the ratepayers direct to companies. Hennessy thought the time was. not yet ripe for gas. Mr Jonson —“ We can live upon a slush lamp yet!” Cr Stiles pointed out that the by-products should not be lost sight of. One ton of coal, costing 20s, ‘would produce by-prolucts to a value of from 13s to 15s.* Cr Baker was generally in favor of the proposal. It would pay the ratepayers to erect works themselves, but in the present scattered condition of the Borough, it would be safer to do so through a company, reserving "to the Borough the right to purchase rather than saddle too great a debt on the community. In the course of some irrelevant discussion, Messrs Jonson and Gray, moved resolutions, which, however, the Mayor declared to be informal. Mr Hornblow drew attention to the fact that the meeting was called to test the feeling of the ratepayers as to whether they desired to raise the loan or not. The question of a private company had, as yet, nothing to do with the matter, as the ratepayers had.no knowledge of any proposal being made to the Council. Mr Fraser explained that the question was loan or no loan.

Ratepayers had been considering the question of lighting the town with gas for a long time, and now the Council had given them an opportunity of deciding the question by bringing down the loan proposals. After further desultory discussion, Mr Hennessy moved that this meeting is in favor of the loan. This was seconded by Mr Jenks. Mr Jonson moved as an amendment that no loan be raised, seconded by Mr Kean. On the amendment and resolution being put to the meeting, the former was carried by a substantial majority. Those who supported the resolution were Messrs Hennessy, Jenks, Ross, Hornblow, Stiles, and one or two others whose names we were unable to obtain. The proposed loan of for completing the Council Chambers, and another of ,£3OO for the purpose of constructing five offices and thus adding a second storey to the chambers were shortly discussed.

Mr Jonson, at the conclusion of a short speech in which he referred to the excellent workmanship of the Council Chambers contractor, moved that the loan of ,£2OO be raised. • This vyas seconded by Mr Kean and carried unanimously. Mr Jonson again took the floor and proposed that the loan of for additions to the Council Chamber be not granted. Mr Hennessy secended. ■ Mr Ross moved as an amendment that the meeting approve of the loan. Seconded by Cr Gray. The Mayor said that if only two of the five offices were let sufficient money would be provided to pay interest and sinking fund. On the amendment being put, it was declared carried on the casting vote ot the Mayor. The Mayor stated that all the loan proposals would go before the ratepayers in due course. The meeting terminated with the usual compliment to the chair.