Evening Post. SATURDAY, APRIL 9, 1910. SOME ASPECTS OF CITY FINANCE.

Evening Post, Volume LXXIX, Issue 83, 9 April 1910, Page 4

Evening Post. SATURDAY, APRIL 9, 1910. SOME ASPECTS OF CITY FINANCE.

The financial statement v.huli was submitted by the Mayor to the City Council at its last meeting is a clear and interesting document, and though we can not regard it as comprehensive, it must be allowed to disclofts a satisfactory position. In giving tho Mayor any credit due to him for economical management of the city's affairs, it must be remembered that the estimate of works which the Cily Engineer deemed necessary for the pas-t year was rigorously cut down. Tims, wood -bloc king and other street improvements, which would have received attpiitinn in the ordinary course, were ordeieil to bo carried forward into the next financial year. Consideration of this fact must not be ignored in any review of the past twelve months. That tho Mayor may have wilfully suppressed any unpalatable facts we do not for a moment Miggei-t. "I have not picked out the plunifc and left the bad," he expiestly tells us. "Theie is nothing un pUawuit left untold." W» fully accept

bility of an intentionally one-sided statement, but there may, of course, be aspects of the city's business which fuller information and a more searching exposition may put in a less favourable light. The frankness of the Mayor'e statement with regard to the electric lighting j would, however, without his express assurance, be sufficient evidence that he had done his best to face the position, equarely. No attempt is made to disguise the unsatisfactory condition of this department. The profits last jear .amounted to £4272; this year they have , shrunk to £2000. Next year even this ueduced amount is likely to dwiudle fur/ther; "in fact," as tho Mayor says, "there may be no profit at all." Tho causo of the decline is the spread of the metallic filament lamp, which has reduced the revenue from private lighting by £3400, and as the cause will continue .to operate, a further reduction is in•evitable. The Mayor argues that notwithstanding the drop in the revenue the citizens have a better light for less money, and that they voted for tho acquisition of the electric light works in order to get a better and a, cheaper light. "The lessened revenue, after all,' he says, "is money left in the people's pockets." This argument is a dangerous one, aud may easily be carried too far. Thro venture would never have been -taken over if it had been supposed that 'it would involve the city in a loss, even though that Io3j» might be balanced t>y a gain for the citizens in the shape of a better and cheaper light. As a matter of fact, all the citizens are not profiting by the cheapening of the electric light, since, as the Mayor poihta out, .there 'are 12,500 houses in the city which employ some other illuminant, though th» occupiers of these houses are all liable as ratepayers for tho financing of the scheme. It is, of course, the competi tion of gas which prevents the City Cooncil from putting the matter on a satisfactory business basis. A concession from the insurance companies which would reduce tho cost of installation by about one-halt, tht selling of motors on deferred payment, and the recognition by the citizens that they ought to encourage art industry in which they are themselves shareholders, are the remedies suggested by tho Mayor for the present unsatisfactory position. In most other respects, the Mayor has a story to t«ll which ia satisfactory on the faco of it, and needs no explaining away. In spite of the depression of trade the city has got in its revenue well, and prudent administration has enabled it to live within its means. On ithe Zl"t March, 1909, the outstanding raltes amounted to £10,012 ; on tho 31st of last month they only amounted to £5421. The rents outstanding have been similarly reduced from £1792 to £429. A net reduction on these two accounts of £5944 is a matter upon which Ithe Mayor and the council may be congratulated ; and it is possible that until times mend the process could not be carried much further without harchliens. The council's accident insurance scheme is another change which seems to be working well. JJy becoming ite own insurer the council appears >to havo saved £1850 in accident premiums during the year, and the Mayor anticipates that with ordinary luck the council will, from the payment into a special account of tho amount which it formerly paid in premiums 'to a company, have accumulated a sufficient reserve to dispense with the need for further contributions. With regard to tho tramways, the Mayor naturally notes with saiiefneftion the recovery effected during the last six montns. The first six months of the year showed a steady falling off in the revenue, but the summer months more than made this good, and the result is a jiet surplus for the whole year of £6123, which is slightly better than last year. The margin is still small, but the financial stringency which hah prevailed with more or less severity during the year makes the result a matter for congratulation. Whether times are good or bad, however, a surplus of £6000 does not leave any rcom for a roduction of tho fares Aarged to tho 21,679,902 pasHceugers carried last year. "Neither the tramways nor the Electric Light Departments will be nble," says the Mayor, "to spare any revenues for probably another five years," and no reasonable man ivill desire >to contradict him. The general effect of the Mayor's memorandum is fully to justify his congratulations to the City Treasurer and his staff, to which, however, tho citizens will certainly wisn to add a special compliment 10 his Worship for his own share in the matter.