OUR READERS’ OPINIONS.

Gisborne Times, Volume XXXIII, Issue 3705, 14 December 1912, Page 7

OUR READERS’ OPINIONS.

WELLINGTON ELECTRIC LIGHTING. '

(TO THE EDITOR.) Sir, —A few days ago you had a local from the P.A. as follows: “During the eight months of the current financial ' year, the Wellington Corporation electric lighting department revenue totalled £43,274, and the working expenses' £18,882, increases of £5584 and £2104 respectively. The net result of the working is a credit balance of £12,192, as compared with £9312 last year, an increase of £2BBO. —P.A.”

Shortly after the above appeared in yours, your contemporary, under prominent. headlines, published the same intelligence, the headlines, no doubt, serving the purpose of emphasising the inference so reasonably to be drawn by the public; that in the said eight months, the Wellington City ratepayers had profited to the extent of £14,392 (i.e.) the difference between the revenue and the working expenses. I desire to point out if such an inference is drawn, that the difference between the revenue of £43,274, and I the working expenses of £18,882, is a profit benefiting the ratepayers, it is grossly erroneous, and the conclusion delusive, and the statement from which the inference is drawn is deceptive, being only part of the truth. Having copies of the Wellington Corporation’s certified statement of accounts for the years ending March 31, 1911, and March 31, 1912, which are set forth in a clear and concise manner, which it would be difficult to improve, I would with your permission give you the results of each years working, and the net profit resulting to the ratepayers from each account. From these published certified statements the public will have the fullest financial information to form conclusions—years’ accounts as follows : - —Year ending March 31, 1911— £ Total capital expenditure for electric lighting 224305 ■Total revenue from all sources of light and power 45587 Total working expenses generation ac. ... 23609 Interest, depreciation, renewals, and 4 per cent of prelimiiuary expenses ... 21664 £314 Net profit for the year on capital cost of £224,305, £314. The report also states that 3,251,549 units were generated, of which only 2,123,053 units were sold for all purposes, and used on the works and offices, and 1,128,496 units are unaccounted for. The average revenue for each unit sold for private lighting was 6.35 d, and the average revenue for each unit sold for all . purposes 5.31 d. For the rear ending March 31, 1912. £ The capital expenditure to date 232231 ’Total revenue from all sources 51720 Less total working expenses 25232 Interest, depreciation, renewals to boilers, sinking fund, and 4 per cent off preliminarv expenses 20204 45436

■ £6284 leaving a net profit for capital expenditure of £232,231 of £6284, or about 21 per cent. units were generated, but only 2,419,7SB units were sold and used —leaving 1,191,010 units unaccounted for, or morb than 50 por cent of what were sold, or 33 per cent, of the units produced have not been brought to account.

The average revenue from private lighting per unit was 6.31 d, and the average revenue from all sources per unit was 0.27 d. There is much more information supplied of a very interesting nature apart from that bearing upon the financial side of electric lighting. The above will, however, suffice to come to a more just conclusion as to the profits accruing to ratepayers from the corporate venture involving so largo a capital expenditure and the incidental risks. One thing should be borne in mind, viz., that the Wellington electric lighting installation is comparatively new, and therefore the public have a right to look for it producing a much higher percentage of profit than it will produce after a few more years of running, when very large repairs and maintenance costs will require to be met, and also that while the installation is young it should yield, like all other mercantile ventures so largely depending upon mechanical skill the very highest degree of efficiency. It wculd appeal to me that if the OonwM’Atioa of Wellington had, after paying for all costs and foundation charges am! made reasonable provision for contingencies which must inevit- | ah 1 v anse, realised in the eight months | as not profit the difference of £14,392 ! first namel it would not be unreason- ! a illy largo, frr, within a very few years !it will he needed, or fresh loans to | take the place, of profit.—Yours, etc., OBSERVER. Gisborne, December 13, 1912. .