TENANT CONSUMERS.

Pahiatua Herald, Volume XXXIII, Issue 9981, 11 July 1925, Page 5

TENANT CONSUMERS.

OBJECTION TO DEPOSIT DEPUTATION TO POWER BOARD At (he monthly meeting of the Tararuu Electric Power Board yesterday, the engineer (Mr R. L. Gray) reported as follows: “With regard to the £2 deposit required from consumers who are not tho owners of their property, these amounts are not being paid up as they should be. I would suggest that alter the end of the month, those who have not paid have their service disconnected.”

A deputation of leaseholders comprising Messrs G. H. Hickman. O. Cooper (Newman), J. Spring and T. Mason (Ni realm) waited upon the Board on the matter. Mr Hickman said that when the leaseholders signed up to have their houses wired and the current in they understood they were to pay a deposit of £2 10s, and the balance of the cost of the installation when the work was completed. They have had the current now about three months, yet a month ago they received a demand for £2 to be lodged with the Board, for which, as far as they could see, they were to receive no benefit. It seemed to the speaker that just because they were leaseholders they paid a penalof .£2, and it appeared an implication that they would nob pay their debts. It was a rather humiliating position in which t© place settlers of repute. The deputation wished the Board to give the matter further consideration, for it appeared to them that the £2 was a gift to the Board.

The chairman (Mr J. D. Wilson.) said tenant consumers in the Boroughs of Pahiatua and Eketahuna were called on to pay a deposit. In the country a number of consumers were similarly situated, having no interest, in the properties they were on at all. Sharemilkers were an example. A man might run up a three months’ hill for lighting, and “slip away.” The Etoard was merely taking a business precaution. It -realised there were a lot of leaseholders better able and willing to pay their dues than some of the freeholders, but there were some who were not, and it was a diffioulfi matter to draw a line between the two. It was not an unusual thing to ask for such advance payments. Users of the telephone paid sixmonths in advance, insurances were treated the same. The chairman asked if payment of interest by tire Board ou the amount of deposit would meet with the approval of the deputation. Mr Hickman said the amount was so small it hardly mattered. It was a matter of sentiment with ihtem.

Mr J. G. Brechin: “Can you biing sentiment into business?”

Mr Hickman: “Sentiment plays a big part.”

Mr Brechin : “Not a. profitable part, in my experience I find.” Referring to a statement by the chairman Mr Hickman said the agreement to make advance payments for the telephone service had been entered into before the service was installed, which was not so in this case, for the current was turned on and then came the demand. The speaker said it came as a surprise, and he (felt annoyed. The Board maintained they would refund the money, hut all the same they would hold it for an indefinite period, with no prospective service in return to the consumer.

Mr Brechin said the difficulty the Board was up against was the criticism that would be ieveiled at it if it could not make the scheme pay. It was no good letting sentiment creep into the business. The object of the members •■•. s to make the Power Board pay, end jet sell the current as cheaply as possible. All men were not like those of the deputation, able, willing, glad to pay for tlieir accommodation. A certain percentage actually had a big interest in the properties they were on, blit legally they had none so the Board followed the system of a deposit., which had been adopted iu the Boroughs a id never questioned yet- if, for instance, some consumers did not pay for their current and got out of the district, it was going to make it much harder on the other consumers. Tho Board was asking the leaseholders to pay a deposit of £2, offering them 7 per cent interest on that amount. There was no reflection on the honesty of these gentlemen, in fact .it was a safeguard to them. While protecting the Board it protected their interests too. The speaker said if the deputation could show the Board a way to do without the £2 deposit, anil yet protect the consumers from losses, he would be quite happy to out it out. If Mr Hickman looked at the matter as it affected the Board, he would think to himself, “Well, if I was a Power Board member, I’d do the same. The Board has done the right thing in protesting tbe honest man from’ the dishonest man.” If, say, the leaseholder did not pay his deposit of £2. continue the speaker, a sharemilker for instance might •hop awnv” with three months “juice” owing. These losses would have to bo made up. indirectly, by the other consumers. There was eertamly no reflection at all on anyone being < ailed on to pay the deposit. Mr Hickman said the leaseholders could not look at the matter

from the Board’s point of 1 view, but from their own.

Voices: “But you are sliareholdens in this. We are your servants.” The chairman remarked that every ratepayer in the district was a. shareholder in the Power Board scheme, and members were only their directors, managing the business.

Mr Hickman: “Yet you penalise me to the extent of £2.” Mr Brechin: “Only for your own protection. We can’t draw a line between the honest and the dishonest man.” The speaker went on to say the total amount involved would only be about £220, and on this the Board was prepared to pa v £l4 per annum, to be split among each leaseholder, that is, th© 7 per cent interest.

Mr Hickman said he did not believe the Board’s attitude was right. Mr J. B. Carruthers: “Then show ns a solution.” Mr Hickman admitted he could not offer one. The deputation, he said, was there simply for, information, and to make no thi-eat. I? leaseholders refused to pay the deposit. what attitude would the Board take up? Mr Brechin: “The price will hare to go up on the cost of the juice.” Mr Wilson: “The Board has the power to simply cut off the current.” Asked his opinion, Mr Spring said ho was rather in favour of the Hoard’s view now that he had listened to the explanations. Messrs ■Cooper and Mason expressed the same opinion. On the motion of Mr Brechin it was decided that the Board meet leaseholders to the extent of paying them 7 per cent interest on their deposits of £2. Mr Hickman ..thanked the Board for its consideration and the deputation withdrew.