STRATFORD’S LIGHT.

Stratford Evening Post, Volume XXXI, Issue 19, 21 August 1916, Page 5

STRATFORD’S LIGHT.

Company’s plant. Tho Codicil levs were very anxious- to own and control the light for these reasons. In 1914 the Council paid the Company for current for lighting as follows: 1*2(1 street lamps at £3 10s, £441; Town Hall, £45 11s, library and reading room, £l2; Fire Brigade (approximate) £l2; Council Chambers, £l2; total, £522 11s. When the hotels aild shops put out their lights the business -centre was almost in darkness. Two hundred or five hundred candle power lamps were necessary in the business centre and more lights wore required in the dark

streets, but the Council did not feel jjustified in increasing, the lighting, account. To show how prices had advanced and why a new plant was impossible, the speaker quoted a letter from Messrs E. W. Mills stating that the pre-war price of wire for electrical purposes was £6O, on . August 13, it was £lO2. The prices quoted were for goods in London, and considering war freights and special duties, the advance represented about 100 per cent. Messrs Niven and Coy. wrote on August 16 and quoted prewar price of a 200 h.p. Diesel engine, installed, at £3850. The ptice now was £4650, representing an increase of £BOO. The pre-war price of a generator was £B6O, and now was £IBOO. These two items alone would cost £6OO more than the valuation of buildings, machines, tools, spares, switchboards, etc. The muncipial buildings were heated by electricity and with a municipal plant the cost would not he so great.

The Mayor quoted the following figures as expenditure and receipts in connection with the undertaking:— Expenditure—lnterest on £16,000 at 5-1 per cent. £B4O, sinking fund cf (one per cent. ...160, wages £BOO, rUn’ning costs, fuels, etc. £260, rent and 'insurance £ll6, depreciation, renewals and repairs, £9OO less £l6O, £740, total £3016. Receipts—Current sold, light £3590 17s lOd, motor power £sll 17s 6d, total £4102 15s 4d, less discount of £892 16s Id, £3209 19s 3d; net. profit £193 19s 3d. In conclusion, the speaker said that a number of people advocated a large profit but taking .a moderate view ne estimated that the profit would aat least £2OO.

Or. Yovfng, in seconding the motion, quoted figures to prove hip statements, • and showed that neither ol the schemes suggested by Mr Climie, would pay, the annual charges being far greater than the revenue that could he anticipated. He had opposed the taking over of the Company’s plant in past years, but alter making the most careful enquiry into the matter, ifl was now satisfied that scheme that would pay the Council, and enable them to sell current at the price charged by the Company, was the taking over of the Company s undertaking. Even if it were possible to put in a.' new plant at a reasonable cost, and this had not been demonstrated, he was not prepared to advise the ratepayers to gamble on the chance of being able-to oust the Company at the end of their concession, i The only safe course to pursue was to carry the Council’s present ; proposition. The Council should control the lighting of the town and he asked the ratepayers to record their votes, on Friday next in favor of the proposal. Cr. J. H. Thompson, in supporting the desirability of the municipalisation of the electric light works, made special reference to the iaet of the whole Council being unanimous on the ouestion. Fast Councils had

the question. Vast Councils had been sharply divided, but he had consistently advocated the acquisition ci the scheme on previous Councils. As far as the valuations were concerned, the matter was beyond his criticism, as the plant was valued by engineding experts and the goodwill was valued by qualified accountants, both parties to the conference agreeing on these points. The financial arrangements made as regards the loan ol £I6OO left nothing to .be desired, as the loan was spread- over a term ol db years at 51 per cent, interest ami one per cent, sinking fund. Considering the times of stress, and being under war conditions, the Council should he congratulated for making, such excellent arrangements in connection with money matters. The town was practically forced to come to a decision once and for allas the Company, concession expired m September 1919, ami it was a moot point as to whethei the Council could force the Company to shift their plant and lines. Valuable legal advice had been obtained bv both parties, and the matter was „‘t n deadlock in this direction, and u would obviate the possibility of enter imr the law- Courts at the end ot the concession if the ratepayers voted to secure the concern on the present advantageous terms. He strongly ad vocatcd the improvement of the si rue. lighting of the Borough and pledged hfs support towards all ratepayers securing proper lighting of their respective localities. He had consistntlv supported fair and square treatment in other departments of the Borough administration in past years,

and would carry on the same policy on f electric light. The lighting of Broad- 1 way as constituted at present was totally inadequate, and it was absolutely; impossible for the Council to improve the system while the lighting wusj controlled by the Company. The Council was paying heavily for the lighting of the town, but could extend and treble the present street lights at a minimum of cost when the Company had gone out of business. The present 32-candle power lights were too; small, and the lighting of Broadway ! should be specially treated between. Pembroke and Opunnke roads. The speaker dealt with the condition of the Company’s plant in detail, more j especially as to the economical working of the water-power station for ,heating and power, which was a pro-! fitable source of revenue. The Diesel plant had given the Company every satisfaction duping the past four years, and had not developed any faults either mechanical or electrical. Asi far as the office administration wusj concerned, the Council could save money, and Cr. Thompson pointed out the details of various items which would not he incurred by tlie Conn-, oil;—lncome " tax £BO, office adminis-. tratioii £ll7, rates £5, reilt" £6B, bonus 2 per cent, to guarantors oil overdraft £l2O, sundries £7s—a total saving annually of £465. After allow-j ~ing for the Council paying interest 5f per cent, on-a mortgage of '£l6ooo , and 1 per cent, sinking fund, the iGouncilf should he in a position to show a profit of about £590 on the year’s working, assuming that the year’s-returns would coincide with the Company’s balance-sheet for the year; ending 31 March, 1916, which, he contended was fairly drawn up so as to show, the genuine position of the Company as at that date. The directors of thq Company had wisely provided for a fair depreciation on the plant and lines, averaging about £SOO per annum for the past three years. He also pointed out that although a lid rate was advertised in connection with the scheme, it would not be collected from .UfO ratepayers, as tho Council was firmly convinced that the concern would pay its way right horn the start. He made references to the Company’s balance-sheets right Irom inception, showing the, .enormous jgijdwth- of the current supply account ||i|d latterly the wiring and heating and power departments. The revenue had grown from £l7B in t 1900 to $-1504 in 1916, which went to prove that the Council would lie taking over a concern that was growing and imjproving consistent with the splendid progress of the town and district. Cr. Thompson pleaded with tile ratepayers to make an enthusiastic vote next Friday in iavor of the scheme, and not to be led away by wild and scurrilous statements made by the “man in the street.” The Council was actuated by purely- unselfish reasons in striving to acquire the lighting scheme for.the town. All systems such an electric, gas, water, sewerage and tramways should be owned and controlled by the municipal authorities, so as to eliminate the element of private gain. Practically 1 5 per cent, of the electric lighting concerns throughout New Zealand were controlled by the municipal authorities, and he could not find one instance where the controlling authority uad lost money. The speaker concluded his address, . which was much appreciated, by appealing to those present to make a special effort to canvass for the votes of the ratepayers to enable the Council to carry a poll ngxt 1 riday by an over whelming majority. Cr Hunter, iu the course of an instructive speech, referred to all matters in connection with the loan, and quoted authorities to show that the plant was not an old one. He ad-

vised tho ratepayers not to listen to the “man iu the street,” but to talte the advice of the experts, who valued the plant. He strongly advised the ratepayers to vote for the loan. Mr R. MeK. Morison said that the last time the proposal was before, the ratepayers, he had strongly opposed it, the reason being the amount asked for tile goodwill. He considered now that the conditions had altered considerably. The valuation of the plant and goodwill, lie considered, was fair and reasonable, and would now strongly support the Council’s action and advise his friends to do the same. QUESTIONS. Dr Paget asked a number of questions, stating that a comparison ol the value of the plant now with live years ago, showed that it was highei now. He asked the reason for the advance.

The Mayor said no doubt the transformers, metres, lines, etc., had been increased, and additions had been put to the Diesel plant and buildings. He could- not explain the reason for the increase iu the value of tho hydro-plant, but as a layman, he would accept the experts’ value as correct. The valuation had been done by Messrs Black and Shepherd, the same engineers who had been engaged on the previous occasion. A reasonable explanation for the increase in the valuation of the Hydro plant was given by the Town Clerk in reply to Dr. Paget’s question. He explained that at the date of the last valuation the leases held by the Company at the Hydro station had only about years to run, and there was no provision in the leases giving the Company the right of removal. These filets materially depreciated the ,yaffie of plant. Since then, the’ leases’had' been renewed for a further ten years, and the Company now had the right of removal at tlie end of the term. Naturally, the better terms now obtained by the Company had had a very .appreciative effect on the value of the plant.

Mr G. Smith asked why it was that tlie loan for the Municipal Buildings was raised at 5 per cent, when it was proposed to raise tlie present one at 5), per cent. The Mayor said that the Council were very fortunate to get the money at 51 per cent., as £500(1 worth of the debentures at 5 per cent had not yet been sold. The offer of tlie present loan was from-the Public; Trust Office, and the Council would have no procuration fee to pay, so Uqit.this compared very favourably with the ,£9OOI loan. The present Joan was ,uot an inscribed loan, I per cent, sinking fund was provided for. On being put to the meeting, vhe resolution was carried, five dissentient votes recorded.

MEETING OF RATEPAYERS. At the meeting of ratepayers at the Town Hall on Friday evening, the Mayor, in moving the following- resolution : “That this meeting of ratepayers affirms the principle of the municipality controlling tho lighting system of the borough, and supports the proposal of the Council to raise a loan of £IO,OOO to acquire the plant and undertaking of the Stratford Electrical Supply Company, Ltd,” explained that the Borough Council jmade an agreement with the Electrical Supply Com nan y giving them the 'exclusive right to generate electricity Ito light public places and streets in ‘Stratford. The agreement also gave them the complete monopoly to generate and sell current to the inhabitants of Stratford. For the- last seven years, at least, the inhabitants had had a general desire for a municipal controlled system. There were two enterprises that should bo owned and controlled by all Boroughs, namely, the water supply and the lighting system. The question arose, what was the best system of lighting to adopt. With this in view, the previous Borough Council wrote to the Government electric expert, Mr Parry, and asked him to recommend an expert to give the required information. Mr Parry replied enclosing ■ the names of Messrs H. W. Climie and Son and Sir F. Black. The Council, on October 31, 1914, wrote to Messrs Climie and Son for advice on the best system of lighting the Borough with electricity, also their, opinion on th© advisability of taking over the Electrical Supply Company’s undertaking. This advice cost £IOO. Messrs Climie sent a lengthy report of the advantages of steam engines, suction gas engines, Diesel engines, and Hydro machines. They used argument to show that as a matter of economy the choice lay between Diesel engines and Hydro machines, but recommended that a .hydro plant, l be installed at a cost of £30,000. The', only waterpower worth considering was that down the Toko Road, at the junction of the Patea river and the Mangaehu stream where 500 h.p. could be obtained. .It would take about thirteen miles of pole line to reach the power house. Taking into account the current sold, after allowing for cost of running, depreciation etc., it would mean a loss of about £7OO per annum. For a long time the mayoral and council elections had been fought over the lighting question, and in consequence, the best results had not been obtained, as the Council had many more very important problems to deal with. The Council after conference with the Company, decided to purchase the undertaking (subject to the poll being carried and the money being available at the statutory price), by mutual valuation, that is, a number of conditions were inserted to benefit the Council, which were not in the deed of concession. Tiffs would not be allowed if the Council seized the plant and had it valued by arbitration. Oile of the most important features was that the goodwill should be valued as ending with the concession, as,there had been legal argument that the deed of concession might be read by the Court to the effect that the Company had further rights. The valuations were: Goodwill of business (valued by Mr A. T. Clarke and Mr E. S. Silk, accountants) £800; freehold and leasehold lands (Messrs J. B. Richards, E. Jackson, and A. C. Bell (umpire); (three-quarter acre freehqld, Cloton Road, lease of shop, Broadway, 4 years to run) £170; perpetual water rights (valued for 10 years only) £IO3O, plant, machinery, and stock (valued 1 by Messrs F. R. Shepherd and F. Black, engineers), £13,237 0s 4d, total £15,237 0s 4d; balance for cost of poll, valuation fees, lawyers, deeds, expert advice £762 19s Bd, amount of loan £16,000. The total value of the undertaking was £15,237 Os 4d, but included in this was £1473 5s Bd, leaving the total valuation for the plant, machinery and goodwill at £13,763 14s Bd. There was also many tools, spares, tanks and other conveniences that were required and not generally included in a new plant. Messrs Climie reported that a new Diesel plant would cost £23,446, and this did not include laud or any hydro works. It would he very nice to have a new plant installed, but that was out of the question on account of the war prices, which were certain to take a number of years to become normal. Mr Climie’s Diesel, plant would now cost over £30.000, so that if the ratepayers failed' to take the. Company’s plant over, there was nothing else for it but to give the Company a further concession. He had no doubt, whatever, that the ratepayers would recognise they had a good proposition, and would vote solid for the loan. Messrs Climie said that as the Supply Company had a monopoly of the outside of the footpath on one side and of the telegraph poles on the other, the new poles to be installed if the* Council did not buy the Company’s plant, must be put on the inside of tho footpath with a side arm construction. Alongside two storeyed buildings, the cables would have to go underground. In Broadway alone, that would cost £I2OO extra. It would he an eyesore to see rows of poles projecting about a foot in the street for people to knock against. They had to consider others in time to come, as once the po!es_ were erected in an inconvenient place they would cost an enormous amount to remove to the outside of the footpath. He advocated having the poles in the propel' place, and tiffs could not he done otherwise than by purchasing the