CORRESPONDENCE.

Taranaki Daily News, 5 September 1919, Page 7

CORRESPONDENCE.

THE ELECTRICAL QUESTION. To the Editor. Sir, —I beg to submit to your readers figures which will substantiate my former contentions' and criticism of the borough power proposals and charges. As Mr Clnrko has stated that the Public Works statement "Is good enough for him," I will confine myself to that, and the figures supplied by himself. In making comparisons between Lake Coleridgo and New Plymouth three facts should nover be forgotten. Lake Coleridge has cost two hundred and fifty thousand pounds more than the complete borough scheme will cost, and is paying interest on an extra quarter of a million, as well as maintaining three hundred square mllos of distribution area. The loss of voltage, by reason ot the long transmission lines, would also bo ten per cent more than the loau scheme. These all affect the cost of working, and when we lake tlio "working expenses' of Coleridge plant as a guide, we are doing no Injustice to (he borough In the comparison. On the 8000 horse-power developed, £14,449 Is set down as working expenses, and this works out at £1 10s l%d per horse-power per annum. Now take Mr Clarke's figures of estimated cost of 8000 h.p. at £25, and allow 5 per cent interest and 2Vfe per cent depreciation, and you have a tola! cost of production of £3 13s 7%d per horse-power. Take the smaller scheme of-3000 h.p., but omit the depreciation, as the bulk of the work representing £55 per horse-power would bo .solid or concrete work, and not machinery and concrete enl.nnces In value for many years, besides. 'lt would hardly be fair to assume that £165,000, of which but a small portion was machinery, should carry the usual depreciation reductions. Taking £55 per horse-power and allowing £2 15s Interest and adding £1 10s l%d for working expenses each horse-power costs £4 lis l%d for production, and this, sold In bulk at £l2 per horse-power, yields a nett profit of £7 8s 10% d per horse-power, or £22,331 5s per annum clear profit on the outlay. Now, take the fully developed scheme of 8000 h.p, which Mr Clarko says may be reduced to a selling price in bulk of £9 6s 8d per horse-power, and you have a profit, after Interest on capital, depre. elation, and working expenses, of £5 I3s o%d per horse-power, or a nett total Income of £45,216 13s 4d per annum. 1 leave jour readers to make their own comment, leaving mine till the sixth, when, with the permission of the chairman of the Moa Road Board, I will traverse and reply to recent comments and figures. Permit me however, to .remark that with the above charges and profits I see no immediate prospect of "the financial bankruptcy of the borough."—l nm, etc, JOHN LYON.