GASWORKS LOAN.

Wairarapa Age, Volume XXX, Issue 8532, 10 September 1907, Page 5

GASWORKS LOAN.

PUBLIC MEETING OF RATEPAYERS. The pubilc meeting of ratepayer-. held in the Town Hall, last evening. to consider the proposal to rai-c £12,000 for the Gasworks, attracts only a small audience, the attendant numbering about thirty persons. Tta ; - Mayor (Mr J. M. Coradine) oa> pied the chair, and the other members of the Borough Council present were: —Crs J. Yarr, F. W. Temple, J. C. Ewington, W. PragnelJ, and J. Elliott. After the Mayor had explained the object of the meeting, the Town Clerk read the formal notice. The Mayor said that in placing tho proposal before the ratepayers, he would like them to look at it in the light that they were all shareholders in a business concern and the Council were the directors. There was a considerable amount of misapprehension in connection with municipal loans. People would say that the public debts were being piled up, but they forgot the large amount of assets that were lying to their credit. In the gasworks they had a business that any smart business man in Masterton would not be afraid to buy at three times their capital value. The capital in' the business was about £15,000. Somemight say that the Gasworks were' a most unprofitable concern, since * the Council have not from timeto time paid dividends. But hewould 'like to point out the large difference between private and municipal concerns. A private concern went for profit always, but a municipal concern strived to serve the community in the best possible manner, and not make any profit. Though the Council had not paH any dividends in the shape of reduced rates from tha Gasworks, they must remember that the works were nowworth about three times their capital value. He wished them to treat the proposed loan in a business manner. Last year was a good one with the Gasworks, but the Council now wished to extend the business, and to do this they must have capital. He dealt with the Gas Manager's report, showing approximately what it was intended to do with the £12,000. He added that the Council had unanimously adopted the Manager's report, although there had been one or two little differences of opinion. Last year, he went on to say, the Gasworks made a profit of £2,344 7s 6d, and this in itself showed that the works were a paying concern. If the loan were carried business would be increased,and there was every reason to believe the profits would do so proportionately. Some might ask, why the Council could not do extension work out of revenue? To this he was totally opposed, as he did r.ot think it a businese-like method. All the Gasworks should be asked to do was to pay interest and sinking fund on a loan. If they adopted the policy of carrying on maintenance work out of revenue the Council would have to keep the price of gas at the present rate, and there would be i o chance of refunding to the ratepayers the profits in any other way. In addition there would not be sufficient plant to deal with an increased output of gas. The Manager and the majority of the Council were of opinion that it is god business to extend the gas mains wherever a profitable return is assured. Therefore if the Council extended the gao mains beyond the borough, and the result was profitable, hj? did not think anybody could take exception. It was not proposed to take up all the loan at once. The amount would extend over a period of, probably, five years. The Mayor, in conclusion, recapitulated the chief points in favour of the loan, and strongly it to the people. Cr Temple, Chairman of the Gas Committee, agree:! with the Mayor that the loan would be a good business venture. He believed that the money should be found first, and spent afterwards. He considered that the loan would be a good thing not only for the town but the raterayers as well. Some' might say, why had not last year's profits been returned to the people in the shape of reduced gas, but maintenance work had had to be carried on out of revenue, and while this was done the Council could not reduce the price of gas. He did not want to make a "threat," but he would tell them that the price of gas could not be reduced unless the loan were carried. When the loan was carried the price of gas could be reduced. The Council could reduce the price of gas now, but then no new gas services could be laid. He would like to say that a. rate would have to be struck as security for tha loan, but it was not intended to collect it. He would add that the proposition to move the gasworks to the. vicinity of the railway station, so as to save cartage on coal, was being considered by the GdS Committee, and if it | were found that the . change would be in the best interests of the ratepayers, the Council would be recommended to give effect to it. The Mayor said the last portion of Cr Temple's remarks was no new subject. It was quite feasible, and he was in sympathy with it for many reasons, and it was a matter that the Council would seriously consider. Mr H. J O'Leary expressed himself in favour of the loan proposals, and was glad that the matter had • been brought forward. The Mayor moved that a poll of the ratepayers be taken on the proposals of the loan. This was seconded by Mr T. G. Mason and carried. The meeting then adjourned.