As a general rule we abstain from commenting on the results of the working of local joint arock enterprises, Bat the Shanghai Waterworks' Company is of a peculiar nature; it is not only a commercial undertaking, but it jioped that it will prove an influenmenus of promoting sanitary reforms among the Chinese and effecting much good in that direction, not only here but in native cities. Its success As a commercial company would greatly help forward the introduction of proper water supplies into Chinese communi. ties. It isto be feared that the hope of gain and not abstract love of cleauhues or practical philanthropy will be the chief, if not the only inducement to influential natives to bring pur water within the reach of their countrymen. The disappointing results of the last year's operations of the Shaugbni Waterworks will retard the adoption of similar menus of supplying good water in other places where it i much needed; whereas, if the Company had been able tu show that the demand for its pure water had increased to such nu extent to have made the Company a great success, and that consequently the shareholders were reaping a good return for their investments, the attention of officials and capitalists would have probably been directed towards the establishment of similar enterprises elsewhere. As matters are at present, this very desirable result will be at least postponed, Again, even the partial failure of the hopes that were originally formed of this Company will act as a deterrent to the adoption by the Chiveso of many thinge which would be improvements on their own faulty ways.
These are the chief considerations which induce us to offer some suggestions the adoption of which would help to improve the financial position of the company. A comparison of i accounts for 1884 and 1885 shows that the revenue for the last year fell off in round figures £2,000, or say Taels 8,000, and this inthe face of the fact that trade improved, more houses were in occupation, and a better state of things generally existed during the latter half of the twelve mouth. At the same time what are really the working expenses remained the same, which was probably unavoidable, The prospects of the Company for this and succeeding years are improved by the contract tered into with the French Municipality, and also by the increase of the native population in the Settlemente, How much the addition to our population which is going on will tell in favour of the Company cannot now be estimated, but some augmentation vf revenue will undoubtedly follow feom it, We may safely say, however, that no such increase will realize the early hopes of the promotors of the company, for some yeats to come, What is therefore now abso-lately necessary, in order to improve the position of the shareholder trenchment. Lhe expenses of direction and management are far too heavy, and those incurred in London might be greatly diminished without impairing the working of the company. Ihere are no matters connected with the work. ing and unuugement with which the Committee in Shanghai could not deal with fuller knowledge than the Directors in London possess, and more promptly. In the negotiations, for instance, oatried on Inst. yar with the French Municipal Council, the local Committee were un~ necessarily obliged to refer matters to the London directors, and delay cause. quently ensued. ihe same will occur whenever a similar occasion again arises. The work of the London Board being practically ended, there no longer existe any ranson for it continuing, at all events in greater numbers than the minimum prescribed by the constitution of the Company, The expenses in London should be reduced to a very small amount, and thusanaddition would be obtained to the dividend. But apart. from any saving which would result from the transfer of mnungement to Shanghai, the benefit which would be derived from the company being directed on the spot would be much greater than would be expressed by the reduction of expenditure which is now no longer necessary. Such, at lerist, is the generat feeling among the shareholders here and judging only from the number of shares allotted when the capital was inorensed in 1884, the greater part of the stock is beld in China,
Text read from the printed page and cleaned; old type leaves the occasional error.