Evening Post. THURSDAY, FEBRUARY 27, 1908. MUNICIPALISATION OF PUBLIC SERVICES.

Evening Post, Volume LXXV, Issue 49, 27 February 1908, Page 6

Evening Post. THURSDAY, FEBRUARY 27, 1908. MUNICIPALISATION OF PUBLIC SERVICES.

When tho acquisition by the City Council of tho Electrical Syndicate's business was first mooted, wo opposed ihe project on the ground th.it the capacity of the council to make a sound business success of the tramways should be established beyond a doubt before it sought new responsibilities in another sphere. Our objection was basad bolely on considerations of expediency, for so far as tho pi'inciple involved is concerned, -\ve have never entertained any doubt that electric lighting is indistinguishable from electric traction, and that both are just tho kind of pubiic scivico which a progressive municipality should be glad to undertake for itself. Tho Mayor, the City Council, and a majority of those ratepayers who took the trouble to vote did not share our misgivings j the loan was put through, and tho city undertook the business of manufacturing and supplying electricity not merely for the lighting of its own streets and buildings, but for the private consumer as well. From the returns which have been recently published the position both of the new business and of the tramway administration up to the end of last month can now be measuied, and the city is to be congratulated upon a satisfactory letsult in both cases. The tramway figures for the year, after providing lor all * charges, including depreciation, show a fair margin of profit; and ihe Mayor had a still pleasanter story to tell in our columns yesterday of the excellent start which the city has made in the ejectric light supply business. For the six months ending on the 31fit ult. this business shows an excess of revenue over expenditure amounting to £8751, which means that municipal management lii'.s secured a larger gross profit by £1700 than vaa earned during thn con expending period tv. olve months ago when tho ventuic v;.\s in private hands. For the six months ending the 31st July In. 1/, during which the larger number of short days involved a larger consumption of light, the gross profits were as high sg £13,645 ; and in the interview which we published yesterday the Mayor gave reasons for supposing that for the current year they would exceed £25,000. After deducting 4 per cent, for interest on tho £160,000 invested, nnd 2 per cent, for sinking fund, a balance of over £1500 will remain, which will pay depreciation and other charges, and leavo a handsome net profit. Tbs Mayor was also able to Btate that tho business was expanding so rapidly that extensive additions were needed to the works and the nljint, nnd that a sum of more than £10,1)00 would b© provided for this purpose out of income. This means not morel}' 1 buoyant but sound and cautious finance, and everybody concerned is to be heartily congratulated on the result. To Mt. Hislop himself the thanks of tho citizens are- especially due, foi it was largely through his strong personal initiative that tho puTeha&u was •effected. It is true that the matter had been considered before ho took office, but it was left to the present Mayor to find a much more satisiactory basis for negotiation than that originally proposed, and to contribute the necessary faith and energy to see the ;natter tlirough in the face of much "bluff" on the part of the Electucal Syndicate, and not a little indifference on the part of the ratepayers The successful outcome of this Dusiness will greatly increase the large measure of public confidence which i/he Mayor already enjoys, and we shall await with interest his next project for extending the scope of the responsibilities and activities of the city.