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9
Against this must be set:—
c5
Annual saving on Just utilization, being difference between
1/3 per ton (engineer's estimate? page 13) and present
cost of 3/- per ton on 20,000 tons 1,750
Estimated annual balance of revenue from electric works
over expenses (page 14 of report) 2,727
Annual saving to baths and washhouses 500
Clear net rental from property on site not used (after
allowing for repairs, &c.) 150
£5,127
Which leaves a net annual profit (including saving of present expenditure) on
the combined works, of £1,590.
I concluded that it might prudently be taken from the above summary that,
even assuming the most unfavourable circumstances and after allowing for unfore-
seen losses and expenses, the important works of electric lighting and dust
utilization could be carried out (in combination with baths and washhouses)
without any loss whatever to the rates, and with the fair expectation of some profit.
In the above calculation the actual cost of purchasing the site and the undertakingis
being paid for out of revenue, which would be equivalent in the case of a private
company to the subscribed capital being returned to the shareholders by annual
instalments, in addition to the dividends earned, which, in the Vestry's case, may
be taken as representing interest on borrowed money. Thus in 42 years the
Vestry would possess an undertaking worth, with goodwill, about £100,000
unencumbered by any debt, even if no further extension took place. If, however,
the more favourable view of the case be taken, and the extensions which the
engineer anticipates are realized, involving a proportionately greater profit at
comparatively little increased expense, the proposed undertaking assumes very
large proportions, and offers such magnificent profits that it would, in my opinion,
soon compare favourably with the most successful gas or water monopolies.
Mr. Manville's report was considered and the recommendations therein adopted
at a special meeting of the Vestry held on the 28th February, 1893, when an
Electric Lighting Committee for giving effect to the report was appointed,consisting
of the following twenty members, viz.—Messrs. Belstead, Brabner, Darby, Elstow,
Field, Hall, Kendell, Law, Moffatt, Morris, Noel, Sawell, D. Smither, S. Smither,
Solomon, Styman, Trowbridge, Verinder, Wenborn, and Whiteman.
On the 6th March, 1893, this Committee appointed Mr. H. T. Sawell as their
Chairman, and Mr. C. W. Brabner as their Vice-Chairman, and in their report of
That date recommended that Mr. Manville should be engaged as Consulting