A Ruinous Legacy.

New Zealand Tablet, Volume XXX, Issue 36, 4 September 1902, Page 29

A Ruinous Legacy.

At the end of 1873 the town of Geneva inherited from the D-uke of Brunswick after payment of all charges and dues, a legacy amounting to £752,629. It might have been anticipated that such an event would have very largely improved the financial status of the town. The contrary was the case. The town, it is true, had the wisdom to pay its debt, which amounted to £264,000, but felt morally compelled ! o hand over to the State a sum of £96,000, and £20,000 to a legal charity establishment. The most, unfortunate part of the matter was that, under pressu,re of public opin-i ion, blinded by such an unexpected windfall, the municipality sank almost all that remained of the inheritance in new enterprises, while they placed their, various other existing departments on a higher footing as regards expenditure. This was the caso to such an extent that, after a few years, a sum of £60,000, in deposit m two banks, alone remained of the Brunswick inheritance . the municipality had a fresh debt of over £240,000, and had acquired spending haibits that would not ha\e been dreamed of had it not been for this fantastic windfall. During the four years fivom 1870 to 1873, the annual deficit had nc\cr exceeded an average of £840 ; iti reached an average of £13,'.)20 during the 1874-1882 periods. Moreover, the municipality was threatened at the same time with the reuao\al of the town dues, which produced a net income of about £22,000 ; this was carried into effect somewhat later. By \ irtuu of the concession granted them in 1882, the municipality had secured the moans to ensure finally, on their own territory, the independence of their water, distribution, and their electric light distribution. They might perhaps ha\e had sufficient energy left at their source of energy to distribute also power to private concerns. In their own district they would have done better to stand at that. By undertaking the distribution of power, on a large scale, and by extending their operations outside the limits of them jurisdiction, they have been led to those magnificent developments the disadvantages attached to which they are now able to ascertain. It would be unjust, however, to co-st too much blame upon the administrators. They were compelled to take into account the general circumstances winch had given rise to the concession of ISB2 Their greatest ambition was to endow the town with new resources, the necessity of which had a threefold origin — The spending habits due to the Brunswick legacy , the removal of the town dues by the confederation ; and, lastly, Ut» exaggerated and ever-increasing charges laid upon the town by the State ior public instruction, the benefit of which does not neturn exclusively, to the urban population.