The Daily News. THURSDAY, JANUARY 16. THE ELECTRIC LIGHT LOAN.

Taranaki Daily News, Volume L, Issue 317, 16 January 1908, Page 2

The Daily News. THURSDAY, JANUARY 16. THE ELECTRIC LIGHT LOAN.

I'u-morrow ttie ratepayers of New Plymouth will lie eali, a Hi-n lo endorse or disapprove 01 the to borrow it iui'tiut rmil lor tlw i I t lu' mtiuioipal eleetrieal installation. 11k\\ should look at the matter from a business standpoint, placing themselves in their true position as owners. The proposals have our approbation. Not that »\e care about further municipal borrow-

ilii/ 113 a general principle. There are two kiuds of borrowing reproductive and unreproductive. In Hie one case it is sound business to borrow if by borrowing profit may be earned. In the other case, with no prospect of the amount to be borrowed earning a dividend, Iwrrowing is to be condemned. In our view, the borough's latest loan proposals come m the former category. The electric light and power supply business has grown at a very rapid rate, and has fully justified the anticipations of its original promoters. The Council should ere long be able to sell most of its day load for motors, as well as findin" consumers for every unit for lighting. But at present there is being produced more than the transmission line can bring to town; hence the need for duplicating the transmission line. The abattoirs and the stone-crushing department want a large supply of power, and about thirty people ill Fitzroy require the light. Bftt the Council has no ' .iiiles and wire to deliver the current, i'he town demand for light is growing, and soon the Council will need more money for the purchase of transformers and ivire. This portion of the loan, it is proposed, will not lie spent immediately, but only as required. The amount a'skeil for is £5200, divided up as follows: Fitwoy and abattoir extension, CI4OO, estimated revenue £21.1 per nnmim. exclusive of til 5s per annum xpeeted from l'itzroy street-lighting; luplieation of transmission line, £170(1, to effect a saving of £4OO a year by prevention of loss during transit; stock for private lighting and for extensions of anil connections to existing mains, £2000; flotation expenses, £lllO. The figures for the past nine months' working are extremely satisfactory. The revenue was ,£17i14 18s Id; expenses were £7!W IHs Id on working account and C 731 interest oil the loan, leaving a clear cash profit of, approximately, £213. And it must be remembered that liiiinv of the largest consumers were taking current for only a couple of months. Further big consumers will shortly he conueeteif, anil it reatlv seems that the. Klectric Light Committee will soon be able lo apply a considerable amount of its profits to the reduction of rates. _ \\a think the chairman of the Electric Lighting Committee has made Cut a good ease for a further loan, and we believe the ratepayers will lie fully justified in entrusting the Council with a further £5200 for profitable development of what is a paying venture.