Manawatu Evening Standard. CIRCULATION 4000 DAILY. TUESDAY, MARCH 24, 1914. THE GAS WORKS.

Manawatu Standard, Volume XLI, Issue 9757, 24 March 1914, Page 4

Manawatu Evening Standard. CIRCULATION 4000 DAILY. TUESDAY, MARCH 24, 1914. THE GAS WORKS.

The»e will Ik few of the ratepayers present at the Mayor's meeting last evening, or others who will read the report of his statement, who will doubt the wisdom of the proposed municipallsation of the # gasworks. The Mayor set out the position plainly and showed clearly that the borough stood to make a very good bargain. The acquisition of the business will not mean a penny of additional liability upon the ratepayers, but, on the other hand, will -bring about a considerable cheapening of the price of gas, and still Jeave a fair profit to be disposed of as the Council sees fit—by transference to the general account, or by putting to ; a reserve, or for extension of works. It is proposed to ask for authority fori a loan of £IOO,OOO, £65,000 approximately being for the purchase of the works, £SOOO for the land and premises in Broad street, and £30,000 for extensions of the plant. The piecemeal method of carrying out municipal enterprises will thus be avoided, and sanction will be asked for the whole sum in the initial loan. This will prove very much more satisfactory than having to go to the ratepayers repeatedly for loans, as other boroughs have done. Palmerston has had experience of this in connection with the Opera House and the water supply, and it proved a I very expensive lesson. The endeavour to avoid the errors of the past in this way should commend itself to the ratepayers, especially when it is remembered vhat, though authority can be given for the whole sum, the Council will be

able to take only what it requires. Roughly sneaking, the town is offered a proposition that would return 10 per cent ui.cn the whok- pup\ of £l-00,000, without taking into consideration the possibilities in the extension of the works and increase in consumption following upon the reduction in H the price Put in another way, after paying interest and sinking fund on the whole loan, the borough would have £3500 available for the reduction of price to the consumer, transference to the general account, or to a reserve fund. Other aspects of the matter were also dealt with last night that are of interest to the general ratepayer. The legal position in regard to the borough erecting its own work%was clearly defined, and the ratepayers will endorse the view of the Council that it is advisable to avoid litigation wherever possible. As the Mayor and other speakers pointed out, the company has been very fair in its dealings with the Council, and has always acted generously towards the Borough Council, refraining from taking advantage of several privileges conferred upon it by its agreement. The Council's negotiations with the company have been carried on in a very commendable spirit, and a conclusion satisfactory and fair to both parties is best arrived at by continuing on those lines. After hearing the Mayor's statement no one can doubt that the town now has an opportunity that no shrewd business man would hesitate a moment over accepting. From the purely business point of view there can be no objection to the proposed municipalisation of the gasworks, and we trust the ratepayers will, on April 22nd, give the Borough Council the authority it asks for.