CITY ELECTRICITY.

New Zealand Herald, Volume LVII, Issue 17648, 8 December 1920, Page 6

CITY ELECTRICITY.

MATERIAL FOR EXTENSIONS.

TENDERS TO BE CALLED.

EARLY ISSUE OF LOAN.

Tenders for the material, etc., required by the City Council in connection with its electricity extension programme, under the £500,000 loan recently authorised are to be called in London immediately. Financial arrangements have been made by which this has been rendered possible.

Referring to- the matter yesterday, the Mayor, Mr. J. H. Gunson, stated that he had interviewed the Prime Minister on Saturday in regard to the loan, and Mr. Massey had : agreed to let the council sell its 5£ per cent, bonds, at a discount, and to have the authority gazetted on his return to Wellington. In ' view of this, a cablegram had been despatched to the city electrical engineer, Mr. A. Wyllie, in London, instructing hur. to at once invite tenders for the council's requirements, and to cable a report giving full details concerning those received.

The council would probably decide to go right ahead with the scheme, said the Mayor, on receipjfc of Mr. Wyllie's report. The engineer had been in London awaiting instructions. The position would be fully reported upon to the council, and in the meantime he was going further into the matter with the chairman of the Public Services Committee, Mr. W. J. Holdsworth. The Prime Minister had been further communicated with, and investors could expect the £500,000 loan to be offered On *■ favourable terms at a very early date. It- should be borne in mind, added Mr., Gnnson, that with the debenture tax:' at 2s 6d only, and higher rates of interest owing to the price at •which l the - bonds were to be sold, this investment would be better than anything the council had off erect yet.