BOROUGH LOAN PROPOSALS.

Taranaki Daily News, 11 February 1919, Page 6

BOROUGH LOAN PROPOSALS.

MEETING OF RATEPAYERS. ENTHUSIASTIC ENDORSEMENT. A meeting of New Plymouth borough ratepayers was held at the Soldiers' Club last night for the purpose of considering the proposals of the council to borrow £IO,OOO for streets and footpaths formation, and £40,000 for the extension of the electric light and power installation. His Worship the Mayor (Mr. C. H. Burgtss) presided, and there was an attendance of about 80. POWER DEVELOPMENT LOAN. The proposed loan for the extension of the electrical power development was first considered. Mr. Burgess said that for some considerable time the council had been in need of much more power to meet the demands that would be made upon them. The sources of supply had been investigated, and the council was in the position of being able to place before the ratepayers a plan prepared by an engineer in whom it was felt there would be absolute confidence —Mr. Blair Mason. (Applause.) It was unfortunate that Mr. Mason was not present to explain his own scheme. He had been invited, but in a letter of apology for inability to attend, he had expressed his enthusiasm for the scheme, and congratulated the council on haviug such a source of power near at hand and so easily accessible. The Mayor then called on Cr. J. Clarke, chairman of the Electric Light Committee, to explain the scheme to the meeting. Cr. Clarke asid that for some two or three years the Waiwakaiho river had been watched by the council's engineers, who had dome to the conclusion that there was 150 cubic feet of water per second available in the river, whereas the present tunnel would take in only 90 cubic feet per second, leaving a loss of 60 cubic feet. In brief, the scheme now proposed was to take up that wasting water. A report had been made by the council's electrical engineer, but he had requested the council to have the matter thoroughly investigated by a thoroughly competent civil engineer. The council was fortunate in being able to secure the services of Mr. Blair Mason, the New Plymouth Harbor Board's engineer, who was most enthusiastic over the scheme which was proposed to exhaust the whole power of the Waiwakaiho. That scheme was too big for present requirements, but the plan had been so drawn out as to embrace work that could be carried out to meet present requirements in conjunction with the completed scheme. Mr. Clarke proceeded to explain that the complete scheme outlined by Mr. Blair Mason provided for increasing the capacity from 900 horsepower to 6300 horse-power. The total cost of the works, exclusive of electric machinery (which will be purchased a? the demand warrants), will be £46,000. It comprises the following alterations to the present works: (1) New tunnel and intake higher up the river;- (2) enlarging present purchase of land for reservoir; (4) additional pipe-lines to power-house; (5) additional plant in power-house; (6) storage reservoir. The first part of the scheme, for which a poll for £40,000 is now to be taken, comprises the completion of 1, 2, and 3; partial completion of 4 and 5; number 6 being left to be completed at a later date. This portion of the scheme will cost £22,687, of wnich £10,987 is for additional plant and machinery for power-house. The capacity of the powerhouse will be increased from 900 h.p. to 1800 h.p. £2OOO is provided for purchase of land for reservoir; £2200 for first year's interest; £10,500 for transmission line to Inglewood and Waitara; the balance providing a satisfactory contingency vote. The provision for transmission line to Inglewood and Waitara was explained by Mr. Clarke. He said that recently the New Plymouth Borough Council was approached by Inglewood and Waitara Councils to supply current to these two boroughs. A satisfactory agreement, subject to the ratepayers sanctioning the present loan?-had been made with Inglewood, and it is anticipated that very shortly a similar agreement would be made with Waitara. It is considered that the first portion of the scheme will be completed in 18 months, and the carrying out of the subsequent portion, which consists chiefly of a storage reservoir with a capacity of 13 million gallons, and purchase oi extra plant, must necessarily depend on the demand during the next three years. When the second portion is completed the capacity will be over 6000 h.p., and as this is approximately equal to present developments at Lake Coleridge the council feel that they are justified in anticipating the supplying of North Taranaki. The position to-day is, continued the speaker, that the present plant has leached its limit, and the council even now are forced to place certain restrictions on one or two large consumers who have recently connected. The council, therefore, are faced with one of two alternatives, either they must refuse to take on large consumers or must extend their plant to meet requirements. Having entered into the business of electrical suppliers the council, if not legally bound to meet the demand, are at least morally entitled to do so; and when in doing so Hie proposition is so commercially sound, there can be no reason why the loan should not be carried, especially as it is ,vcry unlikely that any rate will be collected. In this connection Mr. Clarke made a few remarks concerning the effect on the revenue by the carrying out of the first scheme, in order to enable the ratepayers to form their own judgment. The capital expenditure to date was £82,403. The-revenue for the year ended March 31, 1918, was £14,677, working expenses £4179, and after writing off libera] depreciation ( £4552), paying interest and sinking funds; ( £3M2), the nett profit was £2l93—ample to even pay interest on the proposed loan, assuming revenue did not increase* The £40,000 now proposed to be borrowed will increase the capital post to £122.400, but the revenue it will he capable of earning on present charges will he £32,000, with working expenses increased only to £4600, which, after allowing for liberal depreciation, interest, etc., would leave approximately £15,000 nett profit. It may be rightly said the council cannot expect the fujl benefits of increased capacity the moment the works are completed. In this direction it is as well to say that the council have anticipated the loan and have applications now in view (in fact some of tbem are already connected) which will immediately absorb a large portion of the extra power developed, so that we might safely anticipate a quick return from the expenditure. The great point to remember is that the greater the output at the station, or, in other words, the more units -sold, the less the cost of production. Hence the desire of the eouneil to have consumers ready to 1 iinmit Qut mwftfiat tlwy pr» in * jpofti-

tion to supply. Including in the present loan is £4500, the cost of Changing over from single- to three-phase, thiß «ow being the standard system adopted throughout the world. Cr. Clarke said ho had not touched on the possibilities of the completed scheme of 6300 h.p., because at present the council are noi borrowing for it, but the advantages can be readily summed up when it is realised that the first portion, now being dealt with, will reduce the cost of production per horse-power over 25 per cent., whilst the completed scheme will reduce the cost of production per horsepower to about one-half of the present coat. The council are fortunate in the fact that, with the exception of an open race costing about .t'SSO, the whole of the proposed works form a permanent portion of the completed scheme, which will probably exhaust the river. It is to be expected, however, that before the full 6300 h.p. limit is reached the New Zealand Government hydro-electric scheme will have reached Taranaki, and any further additional power required will be available from this source.

Mr. R H. Bartley (borough electrical engineer), by means of a locality plan, showed where tin. work was to be undertaken, inuicating where the new intake would be constructed as compared with the pripent tunnel, the position being about one mile and a half higher up the Waiivatv.uho. By another chart Mr Bartl;y showed the development of the supply of power, the progress of the growth of the daily load, and the limit to which the present installation would carry the supply. A question was asked as to the effect of the change on motors from the singlephase to the three-phase system. Mr. Bartley replied that the change would not affect motors of less than 10 h.p., and for others provision was made eithar for re-winding or purchasing tliem. Mr. r*e!lringer drew attention to an estimate by Mr. Parry of a cost per h.p. of £l5O for development, and asked how that compared with the cost of the proposed scheme.

Mr. Bartley stated that the figures were somewhat confusing, as Mr. Parry was thinking of a big scheme capable of developing 20,000 h.p., which would necessitate large storage reservoirs, and these could not be built for nothing. Mr. Bartl.<y stated that at a conservative estimate the cost, when the scheme was completed, would probably not be more than £35 per h.p. Cr. W. A Collis cleared away the misconceptior in the minds of many ratepayers that because a rate was pledged as security for the loan the rate would have to he paid He pointed out that rates had been pledged for everv other loan for the electric light department, but so far not a penny of rate had been collected under that head, and he did not think a rate would be required in respect to the present loan. In reply to a question as to whether the scheme would provide sufficient power for Waitara, Inglewood and Eltliam, as wall at New Plymouth, Mr. Bartley said he thought there would be still be power to spare after meeting the requirements referred to.

Mr. C E. Bellringer moved the' follow ing resolution:

"That this meeting of citizens heartily endorses the electric light extensions scheme put forward by the Borough Council, in which they ask ratepayers to sanction the raising of £40,000 for electric light and power purp-ises. The scheme should commend itself, as it makes possible the establishing ol industries,-the supplying ot power *o adjoining districts, and provides for extensions which under the present system is impossible to comply with, the load limit having already beoji reached. The scheme has the sanction of accredited engineers, and is a saun 1 business proposition." In speaking to the resolution he said that it nr.ist be apparent to all that such a scheme as that provided was absolutely necessary, and no one would vote'against it if he studied the interests of the borougn, the district, or his own personal interests The scheme also was designed to mot the needs of the time to come, and would prove of immense benefit to the .vho'.e district. It was a business matter, and » the present opportunity was not taken advantage of it would be a loss to the community. In regard to the Gp.trnment scheme, it would be, he was afraid, a long time before it reached Taraaaki. There was at the door of the district a source of considerable power and the ratepayers would be false to their own interests if they did not take that power The ratepayers could be quite satisfied of the feasibility of the scheme when they knew that Mr. Blair-Mason stood behind it. Mr. Hartley had shown how tne electrical side of 'it would be developed, and he (the speaker) considered tb*t the success with which the electrical department had been managed by Mr. iiartley should inspire confidence in his opinions. (Applause.) He was of opinion that tha results would probably be octter than had been stated The profits night not be so much, but it would no a great thing to get cheap power for the development of industries. Mr. Be.lnnger then referred to the desirability of the electrification of the freezing works at Moturoa and Smart Koad, not only from the point of view of the saving 0 f coal .consumption, but also from tha, of improved conditions of work tor the employees in that industry Ho trusted the date of the poll would mark a going forward on the part of the be.rD.igli, and that those present would do their lest to assure that the poll was carried. The motion was seconded by Mr. P Leabml, and carried unanimously, with enthusi.wm. UIAST FOR STREETS. In outlining the road requirements of the borough, and the necessity for the loan -sba Mayor said he thought the proposal equally as important as the other scheme lie had previously dealt with the matter; and at that time showed the position ci affairs when the present council top* oiiiee,.ai!d also when the present engniriir took up his work. The council had giv»n the matter very serious ,w 'SiderUwi. recognising that'the time Iml come when the outer portion of the borough- must have more attention than it had been getting. The council had come lo the conclusion that the most efficient method of road construction for >w Plymouth was that of tar-sealing. Ibis, however, meant heavy expenditure, whi-iii could not be provided out of revenue, and so more capital must be provided and that was why the council asked far the loan, and that money must be prov.ded if the roads of the borough were, to receive the attention they d"emaaded within a reasonable time. He thougut the opinions of the council in this respect were entitled to the careful consideration of ratepayers. The proposal was a matter of ordinary everyday business, and should be treated as such. The roads needed attention, and many required reconstruction. Good roads were wanted—they were wanted «(Uickly, and ni'irl be made by an efficient inethI od. All that would require money, and j meant a loan. If the work was attemptj ed out of revenue it meant that a street jwr« uid thece wv pod e,j»ia would £*'

done. There would be no definite- tjatem,.and the other streetß would be going from bad to worse. What the eouneil wanted to do was to obviate that and get fthcKi of the work, and thereby make the question of maintenance much more simple and less costly. No one could suggest that with the work before them the council could possibly compass i* without a loan, and the matter rested with the ratepayers as to whether they would help forward the progress of .the borough, or put it back aa indefinite period. Mr. S. Smith asked for an explanation as to hew the tar was to be applied to the already formed roads. The engineer (Mr. W. H. Cook) replied that no road would be tarred which had not ben iaid down at least within th« previous twelve months. Mr. Cook went on to show how consistently the tarsealing was carried out by many English boroughs and counties, and affirmed that it was the only class of roadway that New Plymouth could afford to put down, because it was about as permanent aa could he, provided it was tar-coated regularly. He stated that the tar would be appli?! by means of the tar-sprayer. Mr. Smith drew attention to a portion of the tram route now being reformed, and asked X every road would have to be so treated and re-made about every three yiars. He was inclined to think that the more tar-sealed roads the borough got the more attention would be required by them. The Mayor pointed out that it was hardly fair to judge the process jby the tram route, which was done by means of penetration, and which, moreover, was not the work of the present engineer, who should be given an opportunity to test his methods. Tar-sealing had been done satcessfully elsewhere, and should be su3e<*bful in New Plymouth. Speaking of the footpaths, he said that if they had been looked after in the past they would not have got in their present condition.

Cr. Collis pointed out tha.t there were alrea't/ aeveral strips of roadway in the borough which had been treated in the way it was proposed to treat all the streets, and these were in a very good state. They had had no special preparation for the tarring. Cr. Gt.iiiths drew attention to the very satisfactory results obtained by the county council on the strip of roadway from the Waiwakaiho bridge to just past the showgrounds. Mr. Newton King then moved the following resolution: "That this meeting is of opinion that the * proposals put forward by the Borough Council for street reconstruction and extensions should receive the loyal support of all ratepayers. The growing importance of our town demands that every facility should be given to encourage residence in and around New Plymouth. To this end good roads are essential, and ratepayers are urged to support the £IO,OOO loan on the day of the poll" He said tar-sealing was now an acceii,«d method of road construction. He drew attention to the progress of the town d'uiiig the past ten years, and said that New Plymouth was in a perfectly uiS'iue position, with possibilities that were not realised by those who lived in it. Ife knew the council had put in a great amount of time and work in formulating their proposals, and he hoped the pell v.'ould be carried. (Applause.) The resolution was seconded by Mr. R. W. 1). Robertson, who eulogised the work of the present council, in whom he considered the ratepayers should have absolute confidence.

One questioner asked if the residents nn tho roads improved would share the cost, or would ail,the ratepayers have to pay, to which the Mayor replied that the rate wi'iild be struck over the whole boroug'i. AnoltTW question was asked as to the prospect of getting any work done in the vicmity of the Veale estate.

Tho Mayor replied that one reason for asking for the loan wa3 that the council might be able to get a start at some systematic work. If the loan was not carried it was certain the residents there jvould be much longer in getting their retirements. The Mayor said it was the wish of the counciLlhat the outside areas should get some benefit out of the loan. He asked ratepayew to treat the matter in a businesslike way, and not make the carrying of the loan dependent upon whether there wwi a prospect of work bejng done in their particular locality. They should rise above the needs of their own street. He wits of opinion that the first work should be done in the oldest portion of the town. He sympathised with those in the ti'lskirts. He had in his mind that if tht loai. was carried something should be done on the road through the Vwie esiate next year. Mr. J Veale, a visitor to New Ply mouth, hr* a ratepayer, complimented the borough on the way the electricity loan proposal had been received. Referring to the streets, he sa ; d he always beard o r the bad streets of New Plymouth, but he had come here to see bet' ter roads than those he .fas accustomed to in the northern city. He thought it very oftt-r. the case that local residents fail-jd to appreciate the progress and improvement that were taking place in their mid'Jt. He hoped both loans would bo earned. After some further discussion the motion was put to the meeting and carried enthusiastically. A ies:.iution, proposed by Mr. C. Carter. was also curried, to the effect that the meeting pledge itself to assist in the carrying oi the pioposals at the poll.