HOROWHENUA POWER BOARD.

Manawatu Herald, Volume L, Issue 3910, 23 February 1929, Page 1

HOROWHENUA POWER BOARD.

FEBRUARY MEETING. The monthly meeting o£ the Horowhehua Electric Power Board was held in Levin on Tuesday. FINANCIAL REPORT. The Treasurer (Mr. P. W. Goldslinith) reported as follows: — The total amount received for January was £6667 9s 5d and the sale of electricity contributed £5866 3s lOd to this total amount received. Most of the large current quarterly accounts are paid in January hence the receipts for electricity sholw a very considerable sum. In fact the amount is £4OO more than that received under the same head in January of last year. The cash receipts, however, are not stressed very much as to the real financial position, they do not take the place of returns which show the actual revenue earned. Cash receipts holwever, are something of a guide as to how the financial aspect foil the year is standing at date and so the returns serve a useful purpose. It will (be seen that the total receipts from all sources to the end of January amount to £41,129 5s 9d towards which sum electricity contributes £33,739 9s Id. The table which follows shows further particulars. The cash receipts are as follows (shillings and pence omitted): — 10 months / to Jan. Jan. 31 £ £ Electricity 5866 33,739 Penalties 22 267 Installations and service lines 050 5,881 Consumers’ deposits 15 115 Interest on installations 16 344 Cottage rents and sundries 96 781 £6.667 £41,129 ACCOUNTS. The Treasurer also reported: — Accounts for confirmation. —The amount paid away since the last meeting of the Board amount to £1225 4s -9d. This su)m includes the payment of £3OO to the Public Trust Office for 6 months interest on the £IO,OOO loan which fell due on the Ist February. The other large items are for salaries and wages, lhe latter including three fortnightly payments, total £437. An account for two miles of T.B. cable was also paid, the amount 'being £6O. Payments for sundry electrical installations have also been made to the extent of about £4O, and benzine accounts for about £45. —iConfirmed.

Accounts for payment. —In connection with two of the Board’s loans (£40,000 and £20,000) halfyearly debentures fall due on the 28th instant. The amount to be paid in respect to the same is £2055 4s, Bd, which is the chief item on the pay-roll for the day. The balance of £3OB 12s lid providing payment for meters, ranges, line material, ■ motor tyres, and sundry goods and charges.- —Adopted. EXCHANGE OP DEBENTURES. The secretary reported as follows :—“A difficulty has arisen over the rate of interest to Ibe paid on the Board’s new issue of debentures to the value of £SOOO, in connection with the proposed exchange of debentures with the 'Central Electric Power Board. The position is that the Central Electric Power Board issued its debentures some time ago and the rate of interest payable is 5/‘d per cent. They, of course, desire to exchange with the liorowhenua Electric Power Board for debentures hearing the same rate of interest. In the Electric Power Boards’ Act if any Board proposes to pay a rate of interest over per cent, the consent of the Minister of Finance must he obtained. When approached for the necessary consent, the Minister did not deem it advisable at the .present time to consent to the Board paying 5| per cent, on the proposed £SOOO loan, even when it was pointed out to him that although this Board would be paying sil per cent, interest it would also on the interchange ibe receiving the same rate of interest on its investment.” The correspondence was read and various aspects explained 'by the Secretary. The chairman said the next move seemed to be 'with the Central Power Board. The easiest way out would he for them to cancel the 5£ debentures and issue others at 5i per cent.

•Boards are not permitted to invest their reserves in their own enterprises, and the object of exchanging debentures with another Power Board is to achieve this actual result by legal means. Each Board would he able to use the funds it received from the other by wav of loan, instead of utilising its own reserves.