ELECTRICAL DEPARTMENT PROFITS.

Taranaki Herald, Volume LXVII, Issue 16610, 6 December 1919, Page 7

ELECTRICAL DEPARTMENT PROFITS.

10 THH EDITOB,

Sir, —Profiteering surely has reached its limit when you suggest that tiu> total capital invested in the borough electrical undertaking should be included in the cost of producing the power. Tq take the interest and sinking fund may be legitimate, and you wul observe that I have done this if you will refer again to my letter. You give the wrong figures when working out the percentages even from your point of view. The profit was £5201 19s 6d, not £3112 10s lOd. The percentages given in my previous letter are exact. Over 100 per cent, on cost and 65 per cent, after allowing for interest and sinking fund. There is still a profit of £7742 4s 6d unappropriated. This and all future profits should be kept with the Electrical Department and when the reserves sufficiently warrant a reduction in charges for current then the reduction should be made. Why should the man who uses the electrical current pay for the other borough services as well as the Electrical Department.—l am, etc., W. NASH.

[We accept jVJr. Nash’s correction regarding the amount of the net profits. Inadvertently we took the wrong amount from his letter. It should have been £5201, equal to about 6J per cent., not 65 per cent. It is a recognised principle to devote net profits from municipal trading departments to relief of rates.—Ed., T.H.]