MUNICIPAL TRADING.

Dominion, Volume 3, Issue 735, 7 February 1910, Page 6

MUNICIPAL TRADING.

[ ; • [ " fREND OF THE CITY'S BUSINESS. P ' INDIGNANT IMPORTERS. % before - the . Christmas holidays. - ...fctrong protests were • eritorod ' by- the ;.: r = .jnem'bersi of', various electrical firms -d#*. V ihg business in the city , against, the ac- : pon of the City Council in entering the S;; 1 ;(field; as retail suppliers -of . electrical • -/femall/ .goods ..such . as, lampis, . irons, etc. 'the 'oouncil.'/'Tlie' feeling-amongst : tfadoHs;thit. the council > is; shelving -\ She' matter and is, in the! meantime, es:on/ ; a ;fifni.. footing.: S;fe.jjid .ftght,';i»''spendfit|ie^ratepayersV' : money. K^V^v^ht^othef. p . vpay. hoavy rents and taxes.. - ?■ js i "lti has, beta;-alleged - that'."lire have not; ijpushed-the; business, ~ahd that we .'have ttfi enormous;. profits," "said one' elec-'. a- [tricianto/a: Dominion reporter, "but," the -added, 1 "there is no truth;in• either ;/.• (statement/as -ire were' prepared to'show jtthe' Lighting Committee, of '.the council'if j;.'': phoyl would have : allowed' as." ' '1. .. . "Fast Advancing .Towards: Socialism." ;./.! ' Still was-of opinion /'• : jftiiat .the' oourieil i/wasVadvancihg, fast; to-; iW:pvards Socialism,''and- that:'ih^ad;of '.sell-'. ,' .'Jang • the., goods; retail • themselves ; they [Bhonld,!if: they,.- were dissatisfied with.'tho jpneos chargcd by the trade, have lm;sf;h>ortedj'the - goods'and/jsold.; them,yto.-;the (traders, to bo retailed at a certam jince. [The voounoil- had , claimed that the Gas '. :'[Company, was ; gaining; ground; against ■ . Shorn.' bccause; : of !tho'. high..charges- for. .'."leleotrical fittings,' ':but the .real cause was ,(&<>, fact; that the conditions. . .-Jiniposed.by;,the/council/for installations I. electricity were far too stringent.-; .- .- j'. !. /There/was. absolutely no need'.for;,.the. >/•«ouncil;to!embark;on inunicipal .trading,"-jgr'ji^dxanptheivr-large^i^^ [-- - [Petition ;in .the:,, business, -he/continued,' k Sras.so. keen-now, booh for some ....'. (time, past,. that.-prices.had been out to' a I. minimum, ' However,. the :.City : . Council j.:- \had commenced,;and• appeared to have i: : --!6ettled ,down ■to -businees, . but J he "had. gj.i teeyer,;.seeni the;'p6niloil--publicly ;authorise : &;i;;ianyj.e^nditure; ; ;• .. except as far.- oertam .lamps ; • rwcre concerned, and . tlieso may have been itreet lighting./;,^ i,...: pot-, fair :;that' th<i money contributed by Jthe . should be, used against ry;-X;rWmei.pf;;thoM' :^ ; |-vrM 'it fair tliat the . council; : ,which'.'could m uch;bigger^lotsandconsequ'ently'■ s'tftlf al d no:-rates -or , ta'xes,':'shdnld: nndercut „ (legitimate importers ' r , i. v. .. Strangling, the -Wire Contractors.. ,-Mr. Tolley, of the firm.of "Messrs. Ceder- . holm and rolley, . said the electric 'light ;- f .> bufiineesy had ' been ', builfc': up;, 'largely -'by .- the enterprise and canvassing., of wiring - contractors,' "and the . -council iwas ' 'now! Btopging; in and <,competing; ,with- ;.those : a';.S traders, vdio were helping to increase-the tbuncil's business'. The■ effect : of the:com-, vfej 'fcoioiual.'t tiiat yjo-;. lAlready.-'on'e; or 'two,'firm's had given up ¥,•'?* their;::premises; a 6' ;it' :wa,3 : impossible to '• • }$sy'. rß at .^MH;•^atM I ; g.5.: ! -''.'.-EViß^iie-'j.wlio';:i'had : -!'.'tho slightest. kriowledgiß of'tho - trade, knew |ris?; enough" Ei?s TCl.thout the council '. catting in,; and Vthe ! , { ■,;s (council > could -increase v the '■ use of. elects trlcity;-withoutyhteife&g'; with'!, tie ;tiad- !• Jers. .The-practido of charging fer'supply; mains'; could '- hot- : be' fduna' 'eisewhere', ext rcept in a very few isolated cases.. In wthar \cities ,the supply/authorities were" ! |®j get-; perfliissidn'.' to' ;435;nn^tal'-service 'mainß "free? of;Chargo';:; .-'.' '.' I i> f v 'i -'The City CoiinciMn; their 'oivn business : things which-they .would notal-' -,;;;How:'traders;to''do.;''I f heywereiiifrin?ing :I® ;v ttheir own regulations; ; They were Belling J' j;' - icuits, a ' thing which- traders - could - not do pi: .; [before, without ■ being brought 'to book by f if iivigatterSbddyy";he. iunQcrstdod.Swas -.abdut ; to". i. 7, -tako,'some steps to deal . Mrith ~ this • mat-' U' ;lUr. /.Traders' who• held.stocks of lamps.-j ttc., had']been • conipelled to bring. their 4 - /coiincil, ifrespective:of; the' price'they (the ■ ;;.liraders).had,had to pay ior'them. With,' f/'-;. frent,' takes,_ office •; expenses, breakages, ;j.';-iew.V,takeh;intoaccount,:thelamps : ''were . . . ."-;-.!thus being, cleared at cost, •so that few ~"affordV to , : ,'^although' they 1 .: were all anxious to koop a -few in hand /owh;cri^omere;ViThe:;fefl ;; ;vjrrcseiitations made to the- council- 'last hadinot,' "so'Vfar,j:"elicited.' a reply, but'. were.still.waiting patiently. ; ei; Mayor: Defends- Municipal .Trading; j A representative of,. Ike Doiumon Iniralted' :'u.p.6ii".« theMaxLor.vv ~:.l7ciwixiaii)'! •ft.-j - .iMuidiObtained his views on municipal-trad-.' ; : ling generally.'His Worship admitted, havfing studied - the question- for -many .years, |r. v ;;['and . having' gathered ■ all the' information, sjfmhich-he-could: on-the subject, as •'■it-ob-" ■- ; rtained/. in • : Great : Britain; Germany, ; States;-;and : various;other ; • - iplaces.- Personally he '-belieyed ; in-. m'unif.; .. cipal;- trading,': and, if;.it - wasi. carried" out: «n:6ound business-lines-it proved - of great' Ey-;,;.!bene^t;to;ciHzens.-.-: : civic : -'Jwvernmßni;was -that theVmuniciTOL;councils'rshould; police the streete,' that .they. sbdtild' ; make: roads v and. keep* th'em in re-■pai^sHiatf.-^ey/BKbHildi'.fid^theTfieWi^e-iand'l' |,-:.';.;laU.\the';^npfbfi(able.work,'- ; but;,'thatithe: f;MS|trofitable/,works'isuch':'Mvgas,' i 'watt^^^^ ySJ'iljW-rything.; that ■ showed' ;a ? profit • 'should { • fbe.: done •, by - pnvate *■ enterprise.-;• Ho j'r.ctronglyl, hold'the view/that if: the city ofi'doing. aU.isuch; fsj:-, 'unjirphtable-.works as; ,rbad : making;;.scavP;i;; ietc.v iheyKi^e'vjust. ; as''capable . of ■ p.'; s undertakingsthat;were-;:pro-• pffffi£teble'.-..-iilso,-;. tie'; profits y which-':«ime.:Out' : : |S;;''ish'ould;nelp'tbi pay ;f or" the.; heavy;, expense; f... .of -'fact, in all' .the" civilisedfcountries'. of ,thei'world:thd'-'poHcy.'of ;citi^-.'running' all; bMii-put/beyond;, j; .; question. ,; Of course, : had- been f;-!;wm'aHe^Md p'ir^f'.th'M'sd^ ; ;i»'; iindthid; hot; got': a ; fair' return," t : .but' that did .not affcct tho . prin- •. . ciple-that' municipal" trading "in -"/water, ' lighting. traraways, and other things; was Si!;^faHC^9Ue ! i<^di'.B6and/^^ipesß; under-: r • taking Tvhich ; torporations should under-i^:.lr'^ti(to.'^;Xhere-J T*we>.-\pedple;x : g^iio'?!^\-Wdlingto-.i-ei»^^«ii-: selling andsdther,/small' f i /Jiiances ;). instead . ."of , .leaving", this ', .to ' private , and'.there 'were.-minyjpeo^e.who SrVV/honestly,-, believed;^ihat; a"; city; should ;not '. /iridulgo in' trade, but, he .would point .out, t:3:\v: manyof;;;/these;--people ;■ whoVso;strongly ! objected. to' this, .trade actually • voted for - f..;. :tKe "milnicipalisation of. .'the .tramsin; j; ; •'. Wellington, .which,-.of .course,; meant', that j; . they ;;,vo'ted-that • the Wellington' City. should" own: 'all;-the trams/ When their •v6to'they''\verQ';themfe:fy:^^iiit^«^\'^tK:''^Vate?eilterEJißct'. r j>plicy;'/whicfisonio; \of;:;:themt; •'still'• , di7'•:Whto!;' l W^h'^i^■.nn-. E ;theVtramw£Cy'■ system; that ; 'ander r ; tikingTruined the.trade of the coaches'run', f ' by privato individuals to Island Hay, to Seatoun, to Karon,-to Oriental Bay, and • ■ othor parts; ' The city had also . inter-:f,'''jV''>ferSd^'-with"'the .private enterprise;of;cabs' and hansoms. In fact, they, drove half of // ■ these-ont" Of-Wellington, whilst/they' had |-'/:^Viiun ; '6ff'-aU :; the-coaches. : : Further, .they, itf r terfered ; with the. trade' of a large numj: ,ber : of private persons, such as black- : : Bmitha, ''harnessmakors, ' arid .people, who ; supplied ■- feed for the : . coach . horses, etc. .- "But," added Dr.'Newman,' "I aiid others ■tiwho- voted -for' the mu'nicipalisation; of , • the tiams.- havd'' conferred.;, an . enormous 1 / benefit on the city of Wellington, : and the :l;r-,>--:pblicy,-;of' the,: city; owning-its :o\ni; trams y ; ; ' has -been; proved to' be ,a r thoroughly - sound financial one." :

Electric Lighting. ff '^Someyears'ago; (continued the- Mayor), ; , when -the 'city decided' to buy out_ the ■ ' 'Electric Light . Company,. thecitizens -/■: again, by -a large -majority in .the voting, 1 decided' on' another -' stage ,of municipal «. •* •' -trading/ .' That was, : they decided- not- only V-'to' flight stree'ts iwith-'their own electricity, but to'. sell' electric' light to I. ' every "-'private consumer 'willing .to pay: for j it: They also decided :to supply power t- v- -.for.motors- to any private person who re-, >: quired' it. >By this menas again, no douljt, '; the' citizens voted ,to; interfere with priiv. : vate' -trade.:.. They. :■ interfered with ■ the ! . privately-owned Wellington Gas Com- ,; pany, • and also ■ with the shopkeepers E; •selling kerosene and lamps. Having' once ['. . decided that they J ,wo'uld ; : sell-?electric: Ki,';':; -poweri : -for -lighting ; arid: motor-power,-it F-i-meant that , they would supply customers |f:f,'r with all -necessary- .appurtenances.' , .Many cities- in , Great,' Britain. owped';their own i-='; : :'-'i"lightihg"''w6rks,'and th'e.-great, majority of them ■;had ; -f6and--'thati-itwmv absolutely

necessary:', for the financial. .success.. of their "undertakings that they should also •supply, electric lamps and all electrical : fittings' themselves. - In; no. fewer' than 44 'English .towns fittings were. suptplied,"butthey ; kef)t -a -staff 'of workmen, who fitted -up housesVvith .electricity at cost price.

Municipal Elsewhere. . Wellington-, was*'Mvbt '.motte 1 advanced s than many other pities/ some, of which wore running cool stores fof, the storage of meatr-ishi and other's articles of food. •In Denmark: the • municipality controlled legal - dispensaries for the- benefit bf the vpeople.- Other.cities.Tan golf*links. The ; cityV of- Chester diad :a • municipal ra.ce,cburse, : and ..Manchester, and other, cities, •either ..otfneil xr ; were largely interested, in' thei iproiits arising from "canals. The Gity Cduncil of Paris had u'ndertakcii ; the truniiing- of /funerals, 1 and. other , cities owned quarries.,: and; sold the * produce, the 'profits'- going to benefit • the.. city.. as 'a ,• whple.v: • Several /seaport .towns • owned city, oyster-beds, - from -which they derived Revenue,;/;; but, /added •: Dr.- Newman, it :would, take/a• long:./time;, to go through the entire-list.'of municipal traders. • In •Great; Britain, -at : the. present.time, the -cemeteries rin •• a'- : number 'of/towns were !own^d^byv : which paid '"large,;dividends,,out of ;the.deaths ofun-' forumate''citizens//It was far better that s the 'city" r sh6iild .own .'its . and. Jthat I 'fee's; should : be'reduced 'to- a low price for; the "benefit , : .of' the whole, than ! that .private enterprise - make 'large ; dividends; out of the'.misfortune of, citizons. Our Cheapened tamps 'and Irons. ; '-Eeyerting to the. 1 ' sale ' of:' lamps - and electric ■ irons, • and: other jsmall goods, the- ' Mayor/ mentioned .•.that'/- electric, lamps ''made/of'• tungsten, 'wer« • selling/ first in; i Wellingtonat '7s. 6d., 'and. then • at 6s. 6d., but: in England.and ;in. Germany, ;where •these .lamps .'are made, the .demand had ibeen; so'large,that:the,.lamps werebeing 'produced; at' a * much/ cheaper rate .• now, and consequently' 'the ; Wellington- ; cor. • poration »was able to sell them at\3s.;6d.y, and < still - make a large .profit.//Ift rate-, gainedby- lamps ( at ;a : 3s. decrease (per; lamp,i it • meant' ; a : very. large: amount of money left in : their pockets. Suppos'ing -.there • were. 5000 ; consumers rof; elec-. ■thcity . in./the/city, 1 " and each/of them required ' an: average' of.. 10...lamps. £er year, at 3s. ; less" than the old'price, this meant a 'Saving of 80s. to" every consumer, or •that -in- one year, consumiers/ Trill .-|}ay. ;less;- for ; lamps.: : So•'it• was with electric irons..- These,' had -been sold, at 'from.: 355; ; to " iOs. ;By/ selling. these at 245'., Jthe•; corporationnad-brought ;: them ; -.within - the reach.'.ofthe. public.;; Great of them were;.^ ;the . was deriving; a ; considerable sum/from the/sale/of; current for the. arons. ' : 'lamps, .'fittingsj■etc;iare'. sold,.'they- shouldnot, ; said' .the >cost" price, -but. at :'such :a figure' as wouldgive the, corporation a 'fair .'retirn; upon' the, "expenditure;