MAYORAL ELECTION

Manawatu Standard, Volume LI, Issue 120, 22 April 1931, Page 5

MAYORAL ELECTION

MR ELIOTT’S CAMPAIGN RATE REDUCTION ADVOCATED ALSO LOWER ELECTRICITY CHARGES Municipal matters were dealt with in a most comprehensive manner at the Opera House last evening l , when Air M. A. Eliott, senior councillor, opened the Mayoral campaign. City finances were discussed exhaustively, and a case was presented for a reduction of £4OOO in rates, while a lower price to consumers for electricity was also advocated.

SERVICE TO COMMUNITY. The Mayor (Mr A. J. Graham) presided over a large gathering. Introducing Mr Eliott as senior councillor, and a candidate for the high office which he (Mr Graham) is about to vacate, the chairman stated that Mr Eliott had been actively identified with the public and commercial life of Palmerston North for many years, amongst his numerous activities being his association with the Chamber of Commerce and the A. and P. Asociation. “In offering myself for the position of Mayor during the next two years, I do not propose to put forward any personal qualifications, preferring to leave these to the judgment of the electors," stated Mr Eliott: “I have ben in business in Palmerston North for about 34 years and have watched it grow from a country township into a borough and from a borough into a city. The whole of my business and personal interests are wrapped up and centred in the progress and advancement of the town and district. During my long residence I have served this town in many capacities to the best of my ability, and have been a member of the Borough Council for over 12 years, having been first elected in 1919. During the past four years I have been senior councillor and chairman of the gas and electrical departments. I have also been a member of the finance, transit and abattoir committees, so that 1 can fairly claim to have a wide and intimate knowledge of the council’s work and activities. I am also one of the representatives of this city on the Manawatu-Oroua Power Board and Wellington Harbour Board. My business training, together with the experience I have gained in public affairs, are now placed at your disposal. There has not been a time in the history of the town when capable business management was so necessary as at present. We shall undoubtedly return to better times, and Palmerston North will perhaps share in a greater degree in prosperity than many other towns, but, meantime, what is required is careful and capable administration. If elected, I will devote my time and energy in the interests of the city. FINANCES OF CITY.

“The financial position of the city should be viewed in much the same way as the balance-sheet of a trading company. First of all, the total public debt of the city in the way of loans on March 31, 1931, was £967,790. Against this, accrued sinking funds amounted to £108,456, so that we actually owed £859,334. The rate of interest on the loans varies from per cent, to 6j per cent., and the aveiage would work out at about 51 per cent. The currency of the loans tailing due are from 1931 to 1961. This year the Electric Light of £ISOO and £I6OO respectively fall due bn September 1, and the accrued sinking fund is £174 Is 3d. Next year the following loans will become due, accrued sinking funds being given in parentheses: Public works loan, £14,500, due June Ist (£1033 9s lid;; Municipal building site loan, £1550 due June Ist, Sewerage loan, £10,500 due March Ist, sewerage loan, £4500, due March Ist, sewerage loan, £3950 due June Ist, sewerage loan, £2OOO, due March Ist, sewerage loan, £2050, due March Ist (total of £IB9O Is Id for six loans); bus loan, £4OOO, due April Ist, bus loan £4OOO, due December Ist (£754 4s lid); Manawatu Gorge loan, £I6OO, duo July 10th (£ll3 2s); antecedent liability loan, £32,000, due July Ist (£2271 11s 2d); roading loan, £2OOO, due Auguet Ist, (£l4l 5s Id); repayment loan, £84,000, duo Aug. 20th (£5936 17s 8d). “The, thirteen loans total £166,650 and the acorued sinking funds for them £12,140 12s Bd. Practically all these loans are at 6 per cent, interest, so there should be no difficulty in renewing them at the same, or possibly a lower rat.e ol interest. A reduction of half of one per cent. would mean a saving of about £BOO per annum. “Now let us see what assets we have to show for all this borrowed money. First of all, the city owns about 375 acres of freehold property, which includes 209 acres at Tiritea. It is difficult to arrive at the capital value of the total assets, but they stand in the books at £780,000 and are probably worth a good deal more. The total rents received are worth about £5500 per annum. Then we have over 68 miles of streets, 26 miles of which are bitumen sealed) and 118 miles of footpaths. There is a long list of assets in the shape of building, plant and equipment, So that if we had to be sold up to-morrow there should be assets to meet all liabilities. FRAMING OF ESTIMATES.

“So far as the profit and. loss account is concerned, at the beginning of the financial year estimates are drawn up. On the one side is shown how much we can expect to receive from rates, rents, fees of various kinds and all other sources of revenue, while on the other hand we have to calculate what we will have to pay out for interest and sinking fund on loans, maintenance and cleaning of streets and footpaths, subsidies of various kinds, upkeep of parks and reserves, maintenance of buildings and plant, insurance premiums, control of traffic, provide for loss on bus service, Fire board levy £2192, and a very heavy item in the shape of hospital rate, which last year amounted to no less than £5450, and numerous miscellaneous items. We have to be very careful during the year to see that the estimated expenditure is not exceeded in any way, and I can assure you that for every pound of revenue in sight there are two pounds of expenditure which we could easily make. “The public are prone to, and often do, blame tho council for not undertaking improvements to streets and footways and other works which they think would bo of benefit, but they overlook that the matter is entirely one of finance, and, however much the council may desire to accede to the requests of ratepayers and, others, it is a case of having to cut one’s coat according to the cloth available.” WHERE THE MONEY GOES.

After stating a case in support of his advocacy of reducing the prices charged to consumers for electricity, as reported elsewhere in this issue, Mr Eliott, proceeded: “The total rateable value of the property in the borough on 31st March last was 09 V>7 613 and the total rates collected were £79 458. This is equal to 8d in the £1 on the unimproved value. This works out at, say £lO on a £IOOO capital value of a

dwelling, and in return for tlKs £lO per annum the owner, of a dwelling gets water and sewerage, roads, footpaths, street lighting, parks and playgrounds, sanitation- and removal of rubbish, motor bus transit at below cost, and it also includes the levy made by the Hospital Board which last year cost this town £5450, and Fire Board levy of £2192. During recent years the hospital rate has increased enormously, and it is now necessary to strike a rate of 4-7 d in the £l. This increase has been a source of considerable anxiety to the council. The following comparison of levies will show how the cost of hospital administration has jumped up by leaps and bounds: 1922-23, £1764; 1923-24. £2573; 1924-25. £3009; 192526, £3214; 1926-27, £3739; 1927-28, £4029; 1928-29, £5208; 1929-30, £5450; 1930-31, £5099 (the first decrease for many yeans). QUESTION OF RATES.

“The question of rates, like the poor, is always with us. While the country generally was prosperous local body rates wore met with a more or less amount of grumbling, but now that hard times have hit everyone, the question of paying the annual bill for rates has become a much more prominent and important matter. Statements have been made from the public platform in the past that rates in l'almcrston North are lower than in other towns, and, while this may be true, there is also strong justification for the complaints of the increase in rates in Palmerston North. Rates in the pound have been doubled since 1907. and the unimproved values have increased enormously so that many unfortunate ratepayers have been hit, and hit hard both ways. Then again, from another point of view, the rate per head, of population has increased each year from £1 13s lid in 1907 to over £4 in 1930, equal to 235 per cent. “We have become accustomed in late years to look upon certain forms of public services as necessities, while they arc really more in the nature of luxuries, and it is wonderful what can be done without if occasion arises. Not that I am in favour of cheeseparing, but there is a reasonable medium between economy and careful administration on the one hand, and expenditure that can be avoided on the other. The recent decision of the New Plymouth Borough Council to reduce rates by jjd in the £1 may not bo large, but it is a gesture in the right direction. It has been made possible by the overhaul of municipal administrative expenditure, the curtailment of certain services and the elimination for twelve months of new works that would be a charge against rate revenue. “Though much remains to be done in this city before all the streets and footways can be said to be in first class order, the present is no time for lavish expenditure even upon works that are desirable and that would improve the town. Permanent improvements are always pleasant to authorise and are, of course, exceedingly popular and are strongly advocated among those to whom the cost is of no £reat moment, but until times improve ratepayers will be willing to forego many improvements rather than have the burden of the rates made heavier.

“Interest and sinking fund on loans so lavishly raised during years of plenty must be met and therefore any large reductions in rates are impossible, but in view of the decreased incomes of the community as a whole the curtailment of expenditure is necessary as otherwise the load upon the shoulders of property owners, already heavy, will become intolerable. The extravagance of the past is the problem of the present.

“I believe that, without even reducing wages or in any way impairing tho efficiency of the necessary services of the city, it will bo possible to make a reduction this year of -J)d in tho £1 in tho general rate, which last year was 25-6 d. This would mean about £4OOO of relief this year in the rates. If I am elected and can obtain the support from a majority of tho council, I will do ray best to carry out this programme, but it must not be overlooked that a Mayor only has one vote just the same as any of the nino councillors so that unless a majority support him he can do nothing.

“I am aware that anyone who advocates a reduction of expenditure is not popular and my proposal will probably lose me votes. I have never yet kept silent on any matter relating to what 1 consider to be in the best interests of the town and I am not going to begin now, whother it costs mo the election or not. (Applause.) “The coming election oilers the ratepayers an opportunity to give a definite mandate to thoso who are standing for the position of Mayor and councillors. A portion of the £4OOO could, if' necessary, be provided out of the profits of the electrical department, but I consider sonio reduction in the price of light and power should bo made to users. Then there is a sum of £1644 available from an amount of £SBOO transferred from gas account. The general account on March 31 was in credit £4682, so that there should bo no difficulty whatever in making the reduction of £4OOO off the general rate, even without making any reduction in wages. Apart from the relief afforded to the ratepayers, this would bo a fino advertisement regarding the prosperity of Palmerston North and the soundness of tho finances of the city. Remember that a reduction in rates is tho first step towards a reduction in rents and costs of living. (Applause.) THE WATER SUPPLY. “The two most essential public utilities in any town are water and sewerage. Wo have a good supply of pure, water at Tiritea, but the rapid increase in the number of consumqrs and consequent draw off has overtaxed the capacity of the mains leading from the dam into the city. The present supply mains consist of a 15-inch main from dam to Linton Road and a nine-inch and a 12-inch in the section from Linton Road to College Street. These were laid down in 1907, no increase has been made in the last 23 years, but during thaL-timo the population has grown from approximately 10,000 to. over 20,000. During the past five years new connections have averaged over 250 per annum, representing an annual increase of over 100,000 gallons per day—1,821,500 gallons per day are now required as compared with 870,000 gallons when tho mains were laid down. No wonder tho supply in tho city, although ample at Tiritea, is unequal to the demand. “Schemes for augmenting the supply were put before the last council, but these eventually resolved themselves into a controversy between thoso councillors who favoured increasing the Tiritea supply and those who supported an auxiliary artesian well. I have always supported the gravitation system from Tiritea. However, those councillors who favoured artesian water were in the majority and loan proposals were carried and wo now have an artesian flow from which 30,000 gallons per hour can bo pumped into the general system of mains. Tho artesian supply can only be regarded as a stand-by and a temporary alleviation of tho position and sooner or later an increased supply from tho gravitation scheino must be faced. “Howover, in the loan of £14,000 for the artesian supply, £IO,OOO was included for increasing the mains in Featherston, Ruahine and Rangitikei Streets. Some £7OOO out of revenue has also been spent in increasing the number of filters at Tiritea from six to 14 and thie should prevent any discolouration of water ns the result of heavy rain in the watershed. These items are all to the good when tho question of an increased gravitation supply arrives and are a necessary part of the scheme. Some 64 acres of land in the watershed area which supplies the Tiritea dam were pur-

chased last year at a cost of about £BOO out of revenue. This land, which at present is only grass covered hillside, will bo planted with trees this winter and will in time be a further help in preventing heavy rain from scouring the soil and thus causing sediment in the water. As funds permit, further areas of land should be purchased from time to time with the same object. About three .years ago the water rato was raised from 3 per cent, to 3£ per cent, on the annual value, the object being to provide funds for increasing the sizo of the mains from Tiritea to the city and other improvements to the water supply without having to raise a loan. By this means, £7OOO has already been spent on the filters as mentioned above. The next improvement to be tackled will be to lay an 18inch main from College Street corner of Fitzherbert Avenue to the Square and thus do away with the present bottle neck caused by the existing single nine inch main. Later on, as funds permit, the section from Linton Road to College Street corner will be increased by a new 21-inch main. WATER GOING TO WASTE. “The last week in February can bo taken as a typical summer week as far as the supply of water at Tiritea is concerned. The rainfall for February was 2.o7ins. During that week, 13 million gallons of Tiritea water were drawn off lor use in the city, 2$ mililon gallons of artesian water were pumped into , the mains and 58 million gallons of Tiritea water ran to waste over the by-wash at the dam.

’“Tho cost of pumping the million gallons of artesian water was £lO for electricity power and £4 4s 2d attendant’s wages, a total of £l4 4s 2d, or, say, 1.2 d per 1000 gals. By enlarging the supply mains from Tiritea it is evident that wo would have ample water by gravitation without tho expense of pumping any artesian. The quantity of water going to waste at Tiritea this summer is more than four times as much as is being used in tho city. “Statements were mado in support of the artesian scheme that the increased pressure of water in tho mains would result in tho insurance companies reducing tho rato of premiums in Palmerston North. Taking the last day in February, 1931, as a tost taken at random, it is found that at the central fire brigade station tho pressure gauge between 7 a.m. and 10 p.m. registered a maximum of 651bs and a minimum of 251bs with an average of 531bs. Tho minimum pressuro to fight a fire should be not loss than 751bs wnile 901bs is tho amount desired so it is evident that the artesian supply does not supplement the Tiritea supply sufficiently for fire fighting purposes. The insurance companies have not made any reduction in the rate of premiums.

Tho Mayor: They wore investigating to-day. In fairness to tho artesian scheme, however, it must bo stated that the pressuro is bettor than it was before tho supply was available. Tho estimated cost ot a new 21in steel main from Linton Road to College Street —2 1-5 miles —is £15,766, and a new 18in main from College Street to the Square—44j chains —is £3524; total, £19,290. Tho interest and sinking fund on this capital cost would be, say, £1350 per annum, but with this difference from the artesian scheme —here tho sinking fund would eventually pay off tho loan, but tho cost of pumping artesian water goes on for ever. « BUS SERVICE. “The continual shrinkage in receipts from bus fares, month alter month, year after year, has caused tho council much concern, and I regret to say that Jt has not been ablo to devise any satisfactory remedy.

A Voice: Sell them. Tho continual decrease in revenue from fares despite tho increase in population shows distinctly that tho servieo is not being availed of as previously. This is no doubt caused by the public using other means of transport. It cannot bo overlooked that interest on loans has to bo paid whether tho council continue to run tho buses or not, so that as long as they pay actual running expenses thcro is nothing to be gained by taking tho buses off tho road and I would not advocate this being done. At tho same time, I have always been of tho _ opinion that private enterprise would provido a better service to the public without any los3 to tho ratepayers. (Applause.) “Soon alter 1 first became a councillor I was instrumental in getting the then council to institute its own insurance fund. Without any initial assistance from the general account this fund, which started from nothing, lias now grown to £4114 of which £3726 is on deposit with the Public Trustee bearing interest at about 5 per cent. As time goes on this fund will continue to grow and eventually the council will be in a position to carry all its own risks. Other cities have built up very large insurance funds. Dunedin, for instance, has something like £60,000. STREET IMPROVEMENTS.

“Spccial street improvement work in the shape of relaying foundations and then surfacing with bitumen carried out during the past two years has cost over £SOOO. This is all new work and is in addition to ordinary street maintenance. With reference to now work to be undertaken by tho incoming council, this of course will defend entirely on the funds available. Provided the same rates are struck as last year, about £3OOO will bo available, this sum would complete about 100 chains. If tho residents of Palmerston North through the Mayor and councillors they elect insist on larger amounts being spent, then either loans or increased rates are inevitable. If elected, I would strongly oppose eithor. On the other liand, if the residents desire a reduction in rates, then improvements in surfacing of streets is one of tho means of economising and this work could stand over for a year or two until more prosperous times return. Every £IOOO that can be saved in expenditure is equal to, say, ad in the £1 in tho general rate —to be exact —Id in the £1 equals £9200. “Among the suggested new works other than roading are: (1) Extension of Te Awe Awe Street culvert; (2) extension of culverts in Featherston Street; (3) storm; water drain College Street from Moerangi Street to Cook Street; (4) concreting bottom of outlet channel at septic tanks; (5) stormwater conduit in Rangitikei Street from Featherston Street to Kawau Drain; (6) stormwater drain in Park Road from Fitzherbert Street to boyond Marne Street; (7) other stormwater drains. Provided that the No. 5 unemployed relief scheme remains in force, as I believe it must, then all tho above work could bo done under this scheme without ooet to the council except for materials used. “Every effort must bo made to prevent any increase in our rates; in fact, as already stated, I will go further and say that a reduction should bo made and I will use my best endeavours to bring this about. Again I repeat a reduction in rates is tho first step towards a reduction in rents. “In this connection I would remind those residents who are agitating for improvements to roads and footways, additional subsidies and other requests that the council is being continually bombarded with, that if all those requests wero granted it would inevitably mean an increase in rates. After tho payment of interest on loans, ordinary maintenance, hospital board -levy and other fixed charges, the council only have a limited amount available for improvements and this small margin has to bo rationed out in tho best maimer possible. Tho next few years in the history of the city must, in view of the financial and economic state of the country, be ones of most careful administration combined with economy in every possible way, consistent, of course, with tho proper functioning of necessary services such as water, seworage, electrical power, etc. “There can bo no consideration of any largo works that would mean raising a loan. I can so no urgent work in front of us that cannot well stand over until the return of prosperity and the growth of the city demands it. Beth will come in time, but" in the interval we must make haste slowly, consolidate our present position and let tho city council set a lead in practising economy and living withrn its means. TWELVE YEARS’ SERVICE. “ Ihavo given over 12 years’ service to the best of my ability in the Borough Council and during tho whole of that time I can conscientiously say that I have never sought any advantage to myself, but have always supported any matter that 1 considered was in tho best interests of the town as a whole. No doubt there are some who have not agreed with my views or actions, but although I have had differences of opinion with them I certainly boar no ill-will, for life is too short to carry re-

sentment. I can look anyone in tho faco without feeling ashamed for any action, whether within tho council or without. (Applause.) As regards this contest for the Mayoralty, if I am beaten I will be tho first to congratulate my opponent, and as far- as I am concerned will still bo tho same good friends with him and those who voted against mo, and will always endeavour to serve tho best interests of ttie town in soom other capacity. On tho otho rhand, if elected as 1 believe I will bo, then I will spare no effort in proving myself worthy of the confidence) placed in me. The office, no matter who holds it, will bo no sinecuro during the next _ few years. It will demand tho best that is in any man, who will have to sacrifice a very great deal of his business hours, his home nic, and his recreation in the interests of tho city, without any hope of reward beyond his own conscience, and the feeling that he has done his duty to tho best of his ability to his fellow citizens.’’ (Applause.) ANSWERS TO QUESTIONS. “With rcforenco to questions, in order to save timo I will define my attitude beforehand. There are certain matters such as control of railways, Arbitration Court award, cuts in civil service, unemployed relief, etc., which are entirely a matter for Parliament and are outsido tho scope of this or any other local body election. (Hear, hear.) This is not tho timo or place to enter into a discussion on these matters. I must therefore decline to answer questions which have no direct bearing on municipal matters. On tho other hand, I will endeavour to answer candidly auy legitimate questions on borough affairs, but I reserve the right to postpone my reply until my next meeting on any matter that I consider cannot be adequately answered off-hand, but-re-quires a carefully considered reply.”

ANSWERING A LETTER. Answering a letter from Mr W. A. Potersen which appeared in tho “Standard,” Mr Eliott said that lie had dealt with tho artesian water question. Concerning the payment of interest to the A.M.P. Society, that was first mentioned by the speaker at a finance committee meeting, and tho Mayor agreed to bring the matter before the next council meeting. Two weeks ago the town clerk sent round for tho speaker’s signature to a cheque for interest to tho Society, but he would not sign it. He interviewed tho town clerk, who got in touch with the Mayor and received instructions to communicate with several firms, which Mr Elliott mentioned, in Wellington. This was done and the conscqucnco was that the council mado about 15 per cent., totalling over £7O, on this one transaction. The amalgamation of tho gas rind electrical departments was - discussed several times in Mr Nathan’s term as Mayor and the two departments were merged under one committee called tho lighting committee before Mr Mansford camo into the council at all. In April, 1927, I was appointed chairman of tno lighting committee, and in September, 1928, Mr Healey resigned his position as gas manager. Tho Mayor then discussed with mo tho matter of appointing Mr Muir as manager of tho two undertakings. I was strongly in favour and in November, 1928, this was done at a committee meeting at which I was chairman.”

(Questions advanced by Cr. Hodgens were answered, as follow :

(1) When the power board was first formed I had quite an open mind regarding the advisability or otherwise of tho Borough Council joining its electrical undertaking with that of the board, but when I realised what it would mean to Palmerston North I fought tooth and nail in favour of the town retaining its own reticulation. Cr. Hodgens, as my co-member on the Power Board, well knows this, and he also knows that during the past four years the country members of the board nave attacked me right and left over my attitude in favour of Palmerston North. His question, therefore, is hardy a generous one (Hear, Hear !) “(2) With regard to a subsidy for the Aorangi bridge, I believe that the aanount suggested was £2OO not £SOO, but speaking generally 1 consider that any reasonable assistance given by Palmerston North to improve roads and bridges that lead to Palmerston North is money well spent. For instance, look what the improvements to the Gorge Road have meant to the business and importance of this town. A valuable suggestion appeared in the “Standard” regarding a bridge- over the Manawatu ai xlangitane.' This would mean a Large volume of traffic would reach ue from tho Makerua area. “(3) No. 3 has nothing whatever to do with municipal politics. The position is that as a business man I realised that reductions in wages had to come; I faced the facts. Those who profess to think otherwise with regard to the lowering of wages are either deliberately ignoring the facts or are simple enough to_ believe that you can produce money by wishing for it. (4) No. 4 is not a question.” Mr Christiansen asked if Mr Eliott would favour the renewal of the grant to the Workers’ Educational Association, and was informed that that was a matter entirely dependent on the finances of the council. Replying to Mr R. V. Masons inquiry if he would do his best to see that renis for borough dwellings were brought down the same as wages, if that occurred, Mr Eliott said he had already defined his attitude in that connection. Asked if he was in favour of a general reduction in wages for all council employees, Mr Eliott said that if tho award was lowered, Palmerston North could not stand out. Replying to Mr Mason, the candidate said that he would certainly favour the exploration of the possibilities of ereoting a bridge over the Manawatu River at Rangitane, but it was recognised that a bridge is necessary at the end of Fitzherbert Street. - , , A questioner: Why are the rates lower in Invercargill than in Palmerston North ? Mr Eliott: I don’t know. In moving a hearty vote of thanks to Mr Eliott, Mr F. S. Hubbard stated that the candidate would do credit and honour to the office of Mayor, as he possessed both honesty and integrity like the gentleman who was relinquishing office. The motion was carried with acclamation.