To the Editor of the "Nonra-Carsa Dany News."
81n,—If we seek ay analogy in scripture to our present state we at once think of the story of the good Samaritan. The Shanghai shareholder represents the wounded mao, bat in this case there is more than one claimant to the role of good Samaritan. Our wounds cry out for oil, bat it must be of good and inexpensive brand. Why waste on reports and Commissions? Shanghai has bad enough of so-called expert reports and its confidence in them and the men who made them has been rodely shaken. It woald, appear as if contact with rubber has imbued the consciences of some of these experts with mach of the elasticity of the product itself, Mont of oar rabber companies have been in operation for tome monthe and by the time, through the reports of their managers and ing agente, the directors mit heve at their command more reliable data the value of their property than would be afforded by half a dozen expert Bo toon aa they have all the facts in before them, let them draw up a state-mont famishing the shareholders with exact information as to the condition of the estate, including the number of trees, age and size, etc. When shareholders are in possession of this information it will be time enough to consider the. future policy of the company.
It requires little intelligence to extract from all the literature published about Shanghai rabber companies the comforting assurance that under competent and economical management most, if not all of them, ought in time to give a fair return to the shareholders. Tam, etc., To the Editor of the "Norra-Cuima Darty News," the various schemes appearing. in your columns for the purpose of remedying the unfortunate position in which Shanghai finds itself as regards ite robber venteres.
Before any such proposition as regards amalgamation of interests, which, I fear, is impracticable, is seriously gone into, each Company must take immediate steps to put its own house in order.
We have all hestd a lot about the expense of ranning Shanghai Companies, bat, I do not think are holders in' general have the faintest conception of the dangers ahead with regard to the inadequacy of the working capital provided for the majority of Shanghai Companies. The estates, in practically every instance, were taken over in a filthy condition, and the cost of cleaning esme out of we! tal will be a revel accounts are presented. Not only has this item made serious inroads into the working capital provided, bat such capital in the first place in a great many instances is totally insufficient to bring joven the planted aren into bearing, to say nothing of providing for the extensive planting operations mentioned in prospectuses and the reports of statutory meetings. The consequence is that from time to time you will fied that the Directors of various Companies will have the unpleasant task of cither informing their shareholders that they have come to the end of their tether, or that all profits from the sale of rabber will be seeded for working expenses, and no dividends can be declared for a considerable time, The present is the time to act, and in view of the general uncertainty, the following suggestions should be immediately adopted (1) Each company should make up and publish a statement of its accounts up to the f September 30, showing its trae position as regarde its' working capital.
(2) Each estate should Lo thoroughly reported upon by first class reliable expert, and a valuation made on an uniform five years purchase scale from January 1, 1911. It would be advisable to appoint " commission of, ay, two Shanghai gentlemen to accompany the expert asa check, There are, I believe, several business men in Shanghai who have lately retareed from the Straits after a protracted and exbaustive investigation into the affairs of several of the Shanghai Companies, and it is possible that their undoubted valaable services could be obtained.
(3) The report shoald contain reli-
clean op farther the estate (it necessary), a ates of what it will cost to bring the planted ares into bearing, and what extensions will be necessary in order to show decent dividend return Also probable revenue retains from the planted areas and areas to be planted, if working capital is available, woald be supplied.
The nett resalt would be that the shareholders would at once know exactly how they stood, and steps taken where necessary the am of vil day sbatponed, the worse it will be for shareholders. Tu the preterit state of fiance in Sha hai I fear further demands for- capital will not be met, either in the form of de-
Text read from the printed page and cleaned; old type leaves the occasional error.