THE POWER BOARD LOAN.

Waipa Post, Volume XX, Issue 1241, 11 May 1922, Page 5

THE POWER BOARD LOAN.

.MEETINGS OF RATEPAYERS.

PROPOSAL GENERALLY APPROVED

In accordance with the decision to give ratepayers first-hand information about the Te Awamutu Electric Power Board’s loan proposal, Mr J. T. Johnson (chairman of that body) addressed several meetings on Tuesday and again yesterday. Knkepuku Supports.

The first meeting was held at Kakepuku cheese factory on Tuesday ■morning, when Mr F. S. Parlane presided over a small attendance, there also being present on behalf of the Board Messrs G. Spinley, F. C. Daniell (members) and E. Bickerstaff (engineer). After an address on lines already reported, Mr Johnson answered a number of questions. Mr Wilkinson inquired as to the method of procedure to be followed by the prospective consumer in getting the financial assistance necessary to put in an installation. Mr Daniell suggested that they should form a committee in each district and get each man’s requirements, and specifications would then be prepared by the Board and tenders called for the whole of the work in the block, whereby the work would be done more cheaply. 1

In, reply to a question, Mr Johnson said that where roads were poled, but not at present wired, if consumers had their premises wired up the Board would insta’l wires on those poles immediately application was made, and the power would then be available to applicants. Mr Wilkinson proposed a vote of thanks to the speakers, and expressed appreciation of the action of the chairman and members of the Board in out to explain the proposals. Mr V. Pollard seconded the motion, which was carried unanimously, and the meeting terminated. Te Kawa Approves Loan. The next meeting was held at Clark’s store at Te Kawa, about fifteen settlers being present. Mr Daniell presided. Mr Daniell, in elaborating the proposals, said that until the Te Awa-mutu-Putaruru Railway Board struck a rate a good many people did not know of the existence of that authority, and consequently much opposition was raised. The same might happen in regard to the Power Board, as it was a foregone conclusion that if the loan were not sanctioned it would be necessary to collect the rates. In reply to Mr McLean, Mr Daniell said that the 'Board was responsible for the line as far us a consumer’s boundary; after that the latter had to pay the cost of the installation, including wiring and poles. The consumer could find his own poles provided they complied with' the Board’s specification .which said that each must be twenty-four feet long, straight in the barrel, eight inches in diameter at the butt, and five inches at the top. Most forms of Australian gum would do, with the exception of Tasmanian bluegum. The poles must be winter cut. The Board, however, would be prepared to find poles where the consumer could not do so.

Mr Daniell suggested the formation of a committee on similar lines to that proposed at Kakepuku. Mr Burton moved a vote of thanks, remarking that the scheme was a good one, and would have their hearty support.

Mr P. H. Smith seconded the motion, which was carried, and the chairman brought the meeting to a close by thankjng the settlers for their attendance. Supported at Korakonni. Seventeen settlers attended a subsequent meeting at Korakouni, Mr N. M. Lethbridge presiding. Mr McDonald asked the reason for the charge of £6 per horse-power per year.

Mr Johnson replied that it cost £4OO per mile to erect the main reticulation to cow plants, and the Board might erect an expensive line to one consumer who might use his plant only once a month; it had to protect itself by getting some certain and definite return on its capital outlay; hence the charge, which was only based on the power used during the milking season. The engineer, with the aid of a blackboard, demonstrated the need for a differential rate, so as to bring the “ valley ” consumption up to the “ peak ” charges, as elaborated by Mr Johnson at the Kihikihi meeting. ■ln reply to Mr Wylie, Mr .Bickerstaff explained that if the man in the 'town were charged higher than the man with the cow .plant he would not take the power at all, and the settlers’ peak would go higher still. It was desirable to secure as much consifmption by the townspeople—and industries, for that matter—during the time when milking was not going on, so that the peak could be reduced. Consumption for industrial and other purposes would aid materially to do this, the attainment of which would benefit the country consumer. If the town charges were made exorbitant the manufacturer would not take their power, and they would lose a potential source of revenue.

A large number of questions concerning matters previously reported were'answered, after which Mr Jamieson moved a hearty vote of thanks to the Board members ,and said he would support the loan. Mr Lethbridge seconded the motion, which was carried, and the meeting terminated with the usual votes of thanks. Meeting at Kihikihi. Mr J. G. Sutherland presided over a sparsely-attended meeting held in the Town Hall at Kihikihi on Tuesday evening, and appropriately 'introduced Mr Johnson. Mr Johnson spoke on similar lines to the speeches already reported. In dealing with the prospective consumers, he thought that 25 per cent would not come on, that 25 per cent would be able to finance themselves, while the remainder to whom electricity would be rendered available would need financial assistance, such as the Board proposed to afford if the loan were carried. As to the outlay on service lines, tables taken out had shown that the cost for light only was £1 Os 7d per chain where poles were not required; where the latter were needed, £1 14s. As to power plants, where

the Board did the whole of the work the cost worked out at £3 4s 9d per chain; where a consumer had found his own poles, helped to dig the holes, etc., the cost was £1 14s 6d per chain. Many similar instances were quoted to illustrate the accuracy of the figures given. As to milking plants, the cost, in one instance stated, worked out at £26 for the milking season, including the fixed charge, the number of cows milked being eighty. The chairman said that Mr Johnson had fully covered the ground. He (Mr Sutherland) had been using his plant

for quite a while ,and was fully satisfied, and would have been even if it had cost a little more. The loan was needed, and would be a good thing in two directions—it would help those who desired to get the “ juice,” and also bring in the revenue, and so save the collecting of the special security rate.

Answering Mr Lenihan, Mr Johnson said that it was proposed to take authority to borrow the £25,000, but to lift the money only in sums sufficient for their requirements. Mr Montefiore said he was against a loan, as he did not think it a fair proposal. The loan was for 36 years, and surely they already had enough mortgages on their land without fur-

ther rates. The Board was trying to cover its own deficiencies by raising a loan, as it should have got everybody signed up first, and then it > would have had the revenue in sight. The light was the dearest he ever had.

Mr Johnson *said if they were a commercial concern they might go in for a short-dated loan, but, being a local body, the Board was bound by law to provide interest, sinking fund, etc., and this made it desirable to borrow over a longer period, as it thereby became easier for the ratepayers. If the Board had got the settlers to sign up the fact remained that at the present time they could not have under-*

taken the necessary financial outlay, and the assistance now proposed would still have been imperative. If they did not make it possible for consumers to come on and thereby get the revenue, the Board would have to collect the rate. By assisting the consumers to get on they would help to get the Board sufficient revenue to obviate a rate.

The chairman said, and Mr Johnson concurred, that the consumers woqld pay the interest on the outlay. When the money began to come back the Board would so arrange matters that it could repay it to the institution from which it had been borrowed. ' Mr 'Lenihan said the figures seemed to prove that the light and power were all very good for the big consumer, but not so for the smaller man. Hi&'own experience proved that the larger man had the advantage all the time. In his own case it would be cheaper to use benzine. He thought the charges needed revision; all should be put on the same basis. There should be a uniform charge, and the horse-power charge should be done away with. They should get their own power cheaper than they obtained it from America per medium of benzine. 1

Mr Johnson said that the scale of rates was very difficultt to arrange, and the Board had spent considerable time over it. The general rule in municipalities and private concerns was to adopt a differentiation rate. If, as alleged that night, a flat rate were such a good commercial proposition, it seemed extraordinary that hundreds went in for the differentiation rate. He thought it a sound commercial proposition. In answer to further questions about the shilling charge, Mr Johnson stated that to overcome the double-throw switch, which was first proposed to cut out the iron during milking hours, and to save an extra wire from the cowshed to the house, the Board decided, in view of the extra transformer capacity. required, to charge the consumer a shilling in order to cover this extra capacity.

Answering further questions, Mr Johnson stated that the two peaks—that was, the periods when the demand for current was the highest—were at milking time (morning and night), and it was therefore desired to fill in the valleys—the periods intervening between the peaks when consumption was low—so as to bring the demand up to a uniform level. This could be achieved by encouraging industries in the day time, street lighting, etc., at night, and the greater the consumption they obtained from these sources the greater would become their revenue and the better would be their chance of lightening the charge for the milking plants. That was the economic reason for the differentiation rate.

Mr Lenihan said that after Mr Johnson’s explanation he regarded the proposal as a good proposition. It would certainly obviate the collection of a rate. He moved that the meeting approve the proposal. Mr G. H. McGhie seconded.

Mr Montefiore moved an amendment, which had no seconder and was ruled out of order as a direct negative. Its purport was that the representatives of the 'Board had not put the matter satisfactorily, and that' the time was inopportune to float a loan. The motion was then carried, Mr Montefiore alone dissenting. The chairman thanked Mr Johnson and members and officials of the Board for their attendance, and declared the meeting closed. Te Rore Approves. A meeting was held at Te Rore yesterday afternoon, when Mr Butterworth presided over a representative attendance. The chairman, in opening proceedings, said they had sanctioned the first loan and must now go on with the scheme to completion, so as to reap •in the future the full benefit of their outlay. Mr Johnson said he was glad of their assurance of support, as it made his task the easier. After his address 1 he answered several questions. Mr Butterworth moved, and it was carried, “That, having heard the explan tion given by the chairman, and officials of the Power Board, this meeting appreciates the information supplied, and records its hearty support of the proposal to be submitted to the ratepayers.” A hearty vote of thanks was accorded the chairman and officials for the information afforded the meeting . Support from Palterangi. Last night, a further meeting was held at Paterangi. Mr W. G. Maeky

presided, and there was a good attendance.

After the address and the answering of questions, Mr C. S. McCallum moved a very hearty vote of thanks to the chairman, manager, and engineer for the clear and lucid manner in which they had supplied the information regarding the loan poll, and the supplying of electricity. This was seconded by Mr G. J. Spiers, who considered it the duty of all ratepayers to vote for the loan, as it was an absolutely necessary measure. The motion was carried, and a vote of thanks to the charman terminted proceedings.