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173
METHOD OE RAISING CAPITAL.
How has this Capital been raised? Mr. Ebbs, the
then Chairman of the Electricity and Lighting Committee,
•explained this very clearly in his report, dated 8th May, I899,
as follows:—
"All our Capital has been raised by Mortgage loans
"the equivalent of a Company's Debentures. We have
" therefore first to pay interest on these loans, which this
"'year (25th March, 1899) amounts to £1370 I2s. 7d. leaving
" a nett profit of £2369 is. od. to the credit of our hypothetical
" Shareholders. Under our special circumstances
" however, because we are a Local Authority and not a
" Company, we are bound to pay off an instalment of our
" Mortgage Debentures, i.e. redeem some of our Debentures.
"The amount paid off this year has been £919, which
" leaves us with £1420 is. od. nett profit for the year."
REPAYMENT OF CAPITAL.
Very heavy repayments have therefore to be made for
the borrowed Capital (or Debentures) employed in the business
before any surplus is left over for the ordinary Shareholders
(i.e. the Ratepayers), whose Shares have cost them nothing up
to the present, but who have already received handsome
dividends in the shape of our contributions in aid of the general
rates.
The following Schedule shows the aggregate Capital
expended (or Debentures raised), the amount liquidated, and the
interest paid during each financial year.