HOW MUNICIPAL PROFITS ARE MADE.
An Interesting inskneo of municipal trading is referred to in the current number of "The Accountant." That journal writes 1 "We underatand that the Coventry Town Council has just decided to oxpond a further sum of £6000 on the purohnuo of electric motor-oats, to bo let out on hiro. It is stated that the previous^, investment of £7000 for similar purposes is earning about 12 per cent, intorest by the hiro of the motors, whilo tho interest and sinking fund expenses represent a charge of only 6 por oont. Coventry stock yields about £3 8s por cent, at the current market rate, but evon assuming that 3 per cent, reprc sonts tho inlorcat charged, and tho other 3 per cent, is available a« ft sinking fund, it would bo twenty-four years beforo it would accumulate to an amount sufficient to redeem lh« original loan, It would be ihterosting to know what kind of oleotrio motor-car tho Coventry Town Council possesses which can be expected to last for twonty-four years, and to in the meantime continue to produce a, revenue ropro«onting 12 per oont, on the original cost."
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Bibliographic details
Evening Post, Volume LXXI, Issue 47, 24 February 1906, Page 13
Word Count
192HOW MUNICIPAL PROFITS ARE MADE. Evening Post, Volume LXXI, Issue 47, 24 February 1906, Page 13
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