GOOD BUSINESS.

Dominion, Volume 1, Issue 214, 3 June 1908, Page 8

GOOD BUSINESS.

CITY'S ELECTRIC LICHT FINANCES. PROFIT IN EIGHT MONTHS': £6600. Tho balance-sheet for the eight months ended March 31, during which time tho Wellington City Corporation'has had control of the elcctric lighting'undertaking-in- this city, shows somo satisfactory figures that go to show that the elcctric lighting 'monopoly should bccome an enormous asset to tho city within a very fow years. It will bo remembered that a year ago last'July-thecity' acquired from the New Zealand Electrical Syndicate tho wholo of its business —powerhouse, plant, property, ruining, rights, and street wires and poles for a sum of £150,000, and that from the beginning of August the management of tho works was taken over by tho Elcctrical Department, tho head of which is Mr. Stuart Richardson,, Electrical Engineer and Tramways Manager. With the new control came a- reduction, in- the ■prico of gas, which was of especial advantage to the small (and oft-times needy) consumer, and which it was estimated-would reduce the receipts by from £3000 to £4000 per annum. With tho lieccssary expenditure incumbcnt on a new control it was not expected that profits on tho first year's business would loom very largo, another factor against that being tho number of new extensions that had been thrown out sinco tho Corporation acquired the lighting works.

It is therefore gratifying to learn that after providing for interest and sinking fund, the net profit for eight months' trading amounts'approximately to £6600. His Worship the Mayor who supplied the information, stated that ho considered the result of the initial' eight . months' period highly satisfactory for the Reasons stated above, and particularly'in view of the costly extensions that had been made and wro at present under way. Men wore continuously employed on that, work alone, work that might not bring in the best return for years, but which was giving the public the advantage of tho electric light before they would otherwise acquire it. It must be remorabered, too, that tho best four months of the year were yet to'come—that is, of course, from . the Corporation's- point of view ■_ as managers of a big commercial proposition. Mr. Hislop states that tho receipts for the. eight months of the Council's term of ownership were £2000 in excess of tlie amount for tho corresponding'period of last year.