THE ELECTRIC LIGHT LOAN.

Taranaki Daily News, Volume LIV, Issue 107, 26 October 1911, Page 4

THE ELECTRIC LIGHT LOAN.

To-day the ratepayers of \ow Plymouth lire asked to sanction a loan of CI2,I)(M) for extension to the electric lighting system. During the past year or two business lias shown a considerable increase, so much so that it has 1 been difficult to keep pace with demands and provide the necessary current. The position now is that unless extensions are made to the plant before .March next it will lie quite impossible to supply any more current or run with a safe margin, as the present plant is a 1 wailv taxed to its utmost capacity. Consumption is growing daily, and with the prospect of the suburbs shortly merging with the borough the demand must continue to grow. To meet this growing demand, extensions must be made without delay. To make them out of the present funds would, as explained by the chairman of the electric lighting committee at a special meeting la>t month. put a serious strain on. if not imperil, the borough's finances, and, moreover, the work could not lie completed righl away. Anticipating the position thai would arise next winter if the plant were not increased, the Council has already ordered most of the machinery, which, it is hoped, will he in running older by March next. The loan money is wanted to pav for this and unless the rat c|>;m'rs sane lion the loan the Council will be considerably embarrassed. We do not anticipate' ratepayers will refuse their sanction to what IS purely a nominal liability and which must prove a very profitable investment. I hey will not be called upon to find a penny in interest, us the department is paving well, ami must do even better when the extensions are made. A gratifying feature about the undertaking is that the expenses do not increase proportionally with the growth of business. The charges remain practically as tliey are. and everv additional consumer means additional profil. The lig-, tires of (he last balance-sheet, prepared bv an independent and qualified auditor, are instructive. The gross revenue for the year ended March 31, 1011, was C 4573 14s fid. The total management expenses, including all repairing and

everything 'b'lt inferest on loan, was I £1482 His Sd. leaving a gross profit of ISs 2d. The interest charges were C 1213. leaving a profit of £1877 lis (id. this being treated as follows:—Sinking fund. C 134 Ids 4d; depreciation fund. £ 1557 2s .'id: carried forward, £lB5 7> lid. This is si> healthy enough position, but the profit from 'the present year's working will be much greater. To show the rapid expansion of business and increase in consumption we have taken the following figures from the Council's books: —I'evennc for half year ended September lit), 1010: Lighting, £IB2O lis lid; power, C 274 18s 7d; total. C 2005 IDs (id. l'evenue for halfyear ended September HO. 1011: Lighting, £24 SO Ills 7d; power. £353 2s ]0(1: total, £2844 13s 5.1; increase of revenue. £740 2s lid. Number of subscribers: 1010. filfl; 101 1, 705: increase. 170. After allowing amply for sinking fund, depreciation, and payment of every charge, there remains a profit of £502 IBs Sd for the half-year, as against a profit of £lB5 7s lid for the whole of the previous year (not, remember, the half-year). These figures should convince ratepayers of the profitableness of their electric light: undertaking and of the wisdom of not starving it for the want of the necessary capital, which the Council now ask them to authorise. The £12.000 should be ample for all future requirements, and provide rtll the power required for running the proposed tramways, the early institution of which must not be lost sight of. We call with every confidence recommend the loan proposals to ratepayers, and hope they will give tliem, as they deserve, unanimous endorsement.