THE ELECTRICAL SCHEMES.

Timaru Herald, Volume CIII, Issue 15742, 28 August 1915, Page 7

THE ELECTRICAL SCHEMES.

To the Editor of the "TitnaruHerald.". •Sir,—Councillor Maling is to be congratulated 011 the :iWe way in which lie has explained ilie details in connection with the proposal to Tmy -T. "L. j and G. .Scott's electrical installation ! plant. 1 am not on the Committee set [ up by the Council to go into the question of purchasing J. L. and G. Scott's business, nevertheless I have taken a keen interest in the proposal. Having '-TOno into the question to the best of my ability, j am convinced that now is the time for the ratepayers to take it over. 1 found, and 1 am confident every layman will find it most difficult to follow ilr Stark. the Council's adviser, when lie mentions in his reports unit* suit! kifowats, but what I am more interested in is the business ,-ide of the proposition. Mr Stark, in his reports and in answer to questions, very emphatically advises _ the ratepayers to liny, and to buy now., for the reason that you cannot buv sooner. 11l one of the interviews Vnat the Council had with Mr Stark 1 pressed the question. "'"What would he- the Council's lira liable loss if they look ever the electrical installation and plant tor the first, second and third years?"" . lie replied. £"1000 for the first year. ' and that the loss would decrease the second and third years, and the fourth year there would be no less., but h< 1 based this on t'ne supposition thai the pr:c<»foi- current for lighting would !>-> reduced liy approximately o-.e-half and for power in the same proportion of the cost which is paid at the present time The Council has clearly stated that no reduction'of the present 'charge will be made until the scheme can pay for the reduction. So far as 1 can see. if J. L. and G. Seoti continue to own the business there is no possible chance of the price being reduced for years to come, and their interest account shows a big debit balance. The agreement between the Council and Scotis provides that when the scheme shows a profit of 10 per cent., the charge for electricity shall be reduced, hut the profit of 10 per cent. :s not for any one year but is calculated on the capital invested from year to year dating from the commencement of the business. The

accnmulation of interest mainly occurred in the initial stages of the business. and 1 consider that the time has now arrived when it should be gradually licptidrited. 1 may mention that this accumulation of interest is not included in the figures which have been filaeed before the ratepayers —.T. 1;. and 0. Scott will he the losers. The figures in connection with the running account have been stated bv Councillor , Maling. and no doubt you have noticed | that the credit balances of the :u----i count since 1911 have increased by leaps and hounds. 1 will quote the !:gurcs again. In 1011 the credit balance was £l3 9s l.d, in 1912 £374 9s 3d. in 1913 £729 l?s. in 1914 £lfi39 12s Bd, and in 101 o £2421 9d. The end of each financial year is 31st March. I venture to say that as years go on the yearly balances on tile'amount will in-ei-e.-se liv :i r least the rate. It will be slid by same "ateoayers—if the revenue increases, so wii! the cost of running—of course it will, but not before the revenue warrants it. li lias boon said that before next winter .T. T,. and G. Scott will have to add to the plant to enable them to supply the demand —in fact, they cay so themse'ves.. J take it that- that is a good omen for the future, and if iho Council buy now they will have to do likewise. One of the conditions with the Council i-. that when the existing plant shall have become loaded to the extent of i-3 per cent, of its capacity, they, J. J,. and (.. Scott, have to add to the plant. It is not likely that they will wait ; until the load arrives at the 7-3 per rent, point '>oiore they put in the new j plant, and run the ri«k of breaking : their contract. As business men. thev ! wdl prepare now to protect themselves, and the .ratepayers, if they do not buy now. will have to tiav for the , additional plant later on. If the rate- ; payers owned the property, according (to Air Stark s opinion, they could go j up to and over the 7.3 per cent, with perfect safety. In the meantime, the j Council would negotiate with the Go- ! veininent lor the .supplv of electricitv front Lake Coleridge. Supposing negotiations with the Government failed. Ihe ratepayers would be in no worse position. They would certainly have ' the satislaction of having had the time j and opportunity of considering whether it would be advisable or not of accepting any offer which the Government may make with regard to the supply ot electrical energv. Some ratepayers ask. W hv not wait until the end of 21 M'ars. which is i 3 yen from now. before buying. I hen the Council can take the plant at valuation? Aly answer to that is, that J. L. and 0. Scott will yo oil adding to their piaut, - a lid to the direct current, wiring svstem. It will then cost- the Council more money to buy than it will now. even at a valuation, and it will certainly cost more to change over to the alternating system, which is imperative ii we want to make use of electrical energy lroni Lake Coleridge in Timaru. I ha\o hoard some ratepayers say. I na\e not got electric light in my house, why snould 1 run the risk of paying higher rates for those who have'it? In nn opinion, the scheme will not come on the rates. If we want Timaru to ptospei, and [ am sure every ratepayer does, we must he in a position to eompete industrially with Christehurch and Jjuned'.n, and our only hope is in electricity.. Ratepayers have now an op-' portunity of getting cheap electrical power from Lake Coleridge, but the position is that berorc wo can nogoxiate for it we must buy out J. T. and Scott; and I trust everv working man ratepayer w:ll vote in favour of the proposal on the polling dav. I have heard it. said that a. nmnicipai.y owned concern cannot be run cconQinically. I beg to differ. How is it that other towns, notablv New .1 Ivnioe.th, can run a similar 'underlak.ng as the one under discussion p:ofua y- J other towns can make a success oi the business, 1 see no leasou why Timaru' cannot do likewise. With regard to the finances of the borough so tar as I am able to judge, they were never in a sounder position than they are to-dav. 3Ve have heard a lot about the increase of 2d in the lates. this increase was not attribuj? , e an . v . extravagance on the part ot t.ie Council, but was found necessary to help to pay the interest and sinking iunds tor loans passed by the ratepayeis in 1911. It i s a remarkable coincidence that a'l propositions that ? A ®. cu placed before the ratepayers imaru have met with considerable opposition, yet not one of them would ae reversed by the ratepavers to-day. Take for instance, the water supply. Eastern Extension, underground drainage, Library. All the undertakings I have mentioned are, I consider, milestones in the. history and prosperity of 1 ", ,ar '' : ' l 11 '' I trust on the dav the poll is taken the purchase of J>. L. and G Scotts's plant and electrical instalJat'on another milestone will be (added. —I am, etc., I\VM. C. RAYAIOND.