The Daily News WEDNESDAY, DECEMBER 5. THE LOAN PROPOSALS.

Taranaki Daily News, Volume XLVII, Issue 81899, 5 December 1906, Page 2

The Daily News WEDNESDAY, DECEMBER 5. THE LOAN PROPOSALS.

It is very saiisfadoiy to notice that a very indigent interest in municipal matters, is at picsem being evinced by a large section of the ratepayers of New Plymouth. It is, to say tht least, a heait.iy sign, and one that auguis better things for tho futu'e. We venture to say had the more thoughtful ratepayers of thc town taken as much genuine interest in loan pioposals tnr.e years ago, ana formed thems?'ves into a commiUee of inquiry as has been dene on this occasion, the proposal* that were eventually endorsed by the ratepayers would have anticipated a good pro-" poit'on, at least, of tho works winch ait now f-und to be absolutely necessary to complete the varous sche-. ,mes. We have no intention on tnis occasion of entering upon a discussion on the ethics of boi rowing. So far as the present proposals are concerned, abstract arguments wou d lw a together out of place; three years ago tliey might have been advanced tc some purpose.

ON fr.day next the ratepayer are to be asked to give the Borougn Council permission to increase me municipal deb L by £I2OOO. Actually, however, the debt would only be increased by about half that amount, quite one ha'.f the total having a.J ready been spent, and financed 011 Bank overdraft. So far as £6OOO ot the amount asked for therefore, is concerned, the fat is already in the fire, although fortunately the resultant blaze is not 60 alarming as some gwculd have the ratepayers believe. jThe ratepayers should understand that a?most the whole of this overexpended loan money has been spent in response to their own urgent requests and requirements, in the extension of the electric lighting principally.

The first proposal to engage attention is that asking for /ao,ooo on account of the eleciric lighting installation—,£sooo to pay oft l.abdi.iea already incurred on tue general account; and £SOOO for extensions. The position can be6t be understood by again detailing tiie history of tiie 'installation to date. Tiie present cost of the woiks stands on paper at £17,000. Brielly this is accounted for as followsoriginal ,'oan of ,£6OOO for electrical plant, ,£3828 fairly chargeable for the hydrau ic portion from the waterworks loan, ,£2OOO for extension of street lighting within the borough, .£2OOO for provision for private lighting, ;£iooo lor plant in stock, and .£ISOO for extras a', power house and engineer's residence, bridges, fences, expenses in connection witii lai-ing tiie loan, first year's interest and var ious small items tnat may be grouped as contingences and extras. There are two reasons why it is thought expedient to increase the capital, c is'tof the lighting. First and foremost the demand for the light has been »o gieat as to tax 'he present p'ant to it* fullest capacity, leaving 110 fu'ther power to sell although the demand continues—in short tiie demand exceeds the supply; and secondly, the installation can no more than be made to pay with the present maximum output. It is difficult to correctly 0 -tifnate tiie revenue from the side cf current, but as near as it is possible to judge, reckoning; on the max mum output of qo kilowatts from tiio ex.Siing plant, the income next year would be £.l/00; contributed by I private con-umeis ,£i-bo> and pub ic <ig-ht : ng £440. Tiie expenditure is estimated at ,£1770, —interest ,£B7O and 6a aties stores, etc., /lyoo, snowing a deficiency of ,£7O.

Fortunately for the ratepayers, they po:6e-s the most economical power tor electrical generation in the world —water in plenty. To double the output of the woiks does not mean doubl'ng the onginal cost of mo woiks. On'.y machinery to utilise water is icquired. To pioduce another go kilowatts, an exper.diiuie of ,£2OOO 011 macuincry and fittings at the generating station is required, and £iouo lor an additional transmission wire to can;- the current to tiie town station. Auot.ier ,£IOOO is required n, extend tue lighting to Vogeltown.and the Breakwater, boiii, \\i are convinced, payable propositions. The remaining x-iooo is set down to meet contingencies.

Jl DOING by the vogue electric iighinig nas aireauy owifcil, it is not umea onab.e to a. sumo that witlan two or tiU'-e years iiieie \vr.l be a constant market for the whole of tat proposed additional output. At x.20 per annum per kilowatt, not a high estimate, tue piopusud expenduuie of .£SOOO, costing for interest and X,ioo for extras., wou.d yield an income of /jiSoo, showing a pioht ol about .£1450. or after deducting the estimate sliortage 011 the present

plain of £/0 per annum, a clear pioht of about ,61400 on uie £22,000 capital coo.. That is estimating, a- lias been po.nted m:, 011 tii« whole of '.ie curieui pioduced huding a luarkei. Sufficient has been said, however, to snow ratepayers thai the additional expenditure 1. absolute 1 } - warranted, and indeed nece wary, if taey desire, a* they musi do, to' see the electrical Wui'ks pay ng for thtmse'lve-, anil wilhoul having- to be atsii.ed from the general funds of tae borough.

WITH icgard to the special late which has to be pledged a* security for tne piopesed loan some misapprehension appears to exist. ft is liece-sary that sucu security sT.ioufd be g 1 veil, but there is not ihe s'ighte-t reason why the rate should be collected, and we are assured that the Council lias no intention of collecting any additional rale, a;, the inteie 1 will be e.jsi y met out of tile G nei'al Fund, which will not on y be substantially :ius;int'iit <l by the mviiuo fiom ti»'. lii' woik-i. but will al-o be ivli' vei] I 100 ftllai 11 of bank overdraft i' «' me enl cauios.

Til)-; /.idoo i;'i|(!itv;| j • i-;; U*»i si oil of (iii .11 s .ni urgeir manoi .it «niy .ju-:' i-ir drainage work is. Willi

S' nic. it i- no d i >ubi. a moot fjucb'-nm uin-tlior the work -hou d not be diavi»vd to thf G-ncial Fund, bat i J ins to u?; that so lonjf as a reasona'bV fund is provided, the >;i-(-payors jov not Josts by preferringa loan. Of th-e nioiifi. it-oiiiiii-d for •.\U-n-i"ii <" waterworks. /.'moo has ahcady b* v n antirip,it<-d and die major portion ONpnd>'d. -o (lie ratepayers are niei'-iy b'ing to ledi'im a Jiiiiik j'an on more favourable i.rnis. Span 1 wi'l i) it p.-niiil of t i;i !:"! d" y i ,; n of ill' l ijU l s ion:', w-.l W t!il ! : i:. Uj',h b' lo ll S!>d !o •iiov \\ o li.iv.' cvciv C'-nfidi. ncc in the ur.d;-»;n of tlif ]>: 1: :,• p: (l posa]s. uh'ih ;>v s'.ifli.i'nt \ -;und ik n)i.;d!y ,i'l-i p;u»!-nha'ly, to warrant i• d )':•]!( at tl: u poll (,n Fr'day.