THE ELECTRIC LIGHT.

Stratford Evening Post, Volume XXXII, Issue 47, 20 February 1912, Page 5

THE ELECTRIC LIGHT.

(Tto the Editor “Stratford Post.”) Sir,—Mr. Masters fell into the elementary mistake in his address of Friday evening of confusing receipts with earnings. Hence, since nis whole subsequent arguments were based on that mistake, they fell like a house of cards. He now admits my proposition that the goodwill cf a business ■should be wiped out within a short period of years is a sound one in a private business, but denies it in tins particular case. The gag about a sinking fund is simply ridiculous in anything except permanent works—works built for all time. Is our present system of electric lighting to endure for all time? Surely not. In his letter he got a full broadside into me when he triumphantly declared that after £4ooo’ had been paid off only £IO,OOO would remain. This recondite piece of information for a moment completely staggered me. When, however, I collected my wits, I remembered that although the earnings of the company'might pay off the £4OOO in seven and a half years, yet that £4ooo'would have to pay some interest. In point of fact, the- concern would have to produce not merely the £4OOO, but very nearly £47Bs—a difference of a trifle of £785! I am afraid figures are not Mr. Masters’ strong point. Then, too, besides this £7OO odd that we shall be to the bad over the goodwill, there will be the interest oil the £IO,OOO, together with 1 per cent.' sinking fund. This will be something like £575 per annum. How is this to be met?' A rate is to lie struck, which Mr. Masters says will not need to be collected. Perhaps not; but then again, it may. With the problematical, increase in revenue I have no concern. <To suppose this, that, and the other, and to borrow money on these suppositions, is the plunger’s method. As ratepayers we should have hone of it, even at the risk of being stigmatised as unprogressive.—I am, etc., -o-i J , ; H. WILSON.