AN £8000 LOAN OR AN EXTRA ½d RATE?

Pukekohe & Waiuku Times, Volume 5, Issue 169, 28 April 1916, Page 3

AN £BOOO LOAN OR AN EXTRA ½d RATE?

(By Scrutator.) "After reading articles, appearing in the ' Times,' on the loan or extra rate question I am convinced the suggestions put forth are sound, and shall consequently vote for an £BOOO loan if given the opportunity."—Expression of opiuion by a ratepayer who pays over £3O in rates. "In my opinion it is the clearest statement and best business proposition I have ever seen brought forward in municipal matters here, and I shall certainly vote for an £B#oo loan."—Expression of opinion of a well-known Hill resident. " I consider the £BOOO loan proposal under the conditions set forth in ' Times' articles most excellent, and the surfaceman on outer roads the very thing that is wanted. The Council will certainly receive all the support I can give them upon both proposals."—Another well-known Hill resident's opinion. The above opinions are encouraging to anyone attempting to suggest means to provide for urgent municipal necessities, more particularly when such suggestions avoid extra rating burdens on the community. It has been Btated in a previous article that £4OO per annum can be saved if a new water supply system be provided. As it is a well recognised axiom that one ounce of fact is worth many pounds of assertion, "Scrutator" will now attempt to demonstrate the " fact": -Under the existing water supply system the daily consumption of water, within the area proposed to be supplied under the new system, is about 26,000 gallons, but. on account of the great height to which the water has to be pumped and the resultant dangerous pressure, viz., 2501bs to the square inch, on the town supply „ pipes a break-down valve is used, thereby reducing pressure by upwards of 1251b5; but in practical working it has been found impossible to prevent the valve constantly getting out of order, and this causes an enormous wastage estimated at about 44,000 gallons every 24 hours or, in other words, an annual money loss flowing silently away like a thief in the night, of upwards of £266; nor will £266 be the only amount saved when the Council's new supply scheme is completed, for there will be a further saving upon the 26,000 gallons per day for the inner area of upwards of £lO4 per annum and a still further saving of one man's wages, say £l4O, making a total saving of £5lO per annum. Can ratepayers want anything more convincing as to the desirability and soundness of the above proposition? Surely not! Is there one ratepayer, who, after absorbing the above stated facts, will not brush aside his doubts and vote for this proposed loan of £BOOO, thereby giving his representatives the opportunity to relieve him for all time from crushing taxation and consequent depreciation of bis property values that must ensue if he denies them this legitimate means to procure money so urgently needed ? Is there one ratepayer who will contend, if money be borrowed at s'x per cent and by investment made to return ten per cent or twelve per cent, that such borrowed money can, by any calculation, ever become an ad led burden to the borrower; on the contrary, one must admit that such will be a source of wealth'? 1 Let us consider how the position of ratepayers would be improved if the loan became an accoui plished fact: — 1. They will escape increased rates, to what extent will be shown in a later article. 2. Their outer area roads will receive far greeter attention than has hitherto been given them, because the Council will then be in a positiou to place a surfaceman constantly on them. 3. There will be upwards of £2OO to spend upon such roads, from savings effected by bringing the Council's water and other services up-to-date through loan money expenditure. 4. The £4BO interest on the loan will not be taken out of rates, but will also be provided out of savings effected by loan expenditure. But what will be the ratepayers' position if the loan proposals be not carried? An increased rate must be levied! Why t— Because the present water service must be altered, of that there can be no doubt, for the following reasons, viz -.—Raising water by airpressure is the most expensive process known, therefore it should, as far as possible, be abolished at the earliest possible moment. The excessive wear upon the pumps, as now used, cannot be allowed to continue much longer because their effectiveness will be completely destroyed. The air pump wi'l have to be moved from its present position so as to allow for a longer belt drive, thereby not (nly saving the up-to-npw annually heavy expenditure in belts, but to get steadier, and consequently more effective, working results. Finally a new reservoir, ai a much lower altitude, must be constructed. Now none of these works can b< parried out without money, therefore a turned-down loan proposal veil most assuredly bring an increase* rate in its train, as well as a banl overdraft. Surely ratepayers wil realise that neither of these alterna tives are desirable and will therefor* vote for the £BOOO loan, because i will be good business and soun finance. The next article will show hoi the expenditure of part of an £BOO Joan upon other works, besides wate improvements, will also save severe hundreds of pounds annually, and later .article will demonstrate ho' the rates can be reduced—not ii creased.