Mr. Edward Ezra's Reply to OG. M. L.'s Complaint of New Increase Mr. Edward I. Ezra, managing director of the Shanghai Hotels, Lad., invited by a representative of this paper to make a statement relative to "C. M. L.'s" letter appearing in last week's issue on the subject of the increased charges at a local hotel for monthly guests, was good enough to explain the reason for this increase.
During the last few months, be said, imported articles had increased in' price very considerably, foodstuffs, linen, carpets and the many other articles required in successfully running a hotel.
"For example," he said, "the other day we spent $20,000 on carpets, which, had exchange been! more favourable, would probably have been obtained for $10,000 or; $12,000. Then we have to pay for the improvements which we are continually effecting in the various hotels: increased salaries have to be paid and some assistants are now drawing salaries which a few: years ago were only paid to; taipans.""
Wuar rap Increases Are.
Dealing with the allegation in "0. M.L.'s" letter to the effect that "an addition to the cost of living of nearly 100 per cent. over 1917 rates for the permanent guest', had been made," Mr. Ezra characterized this as incorrect. In 1917 the cost per month for a single} room, he said, was $130 in the, Palace Hotel. At the end of 1919 this was raised to $170 and the new rate for the same room is now $190. A room which with board was let for $140 in 1917 now - costs $200 per month, so that. the average increase since 1917 was less than 50 per cent.
It was quite true that the-price of goods was decreasing abroad, but this was more than counterbalanced by the fall in exchange, and Mr. Ezra foresaw that when the local stores commenced to place on the market goods for which they were now closing exchange, consumers would be faced with another increase in the cost of living.
"There is another important point to be considered," he added. "Until the new hotel is ready we are absolutely compelled to make room for the transients in our hotels and at the present moment we are not encouraging permanent guests, the reason being that in view of the limited accommodation afforded by the hotels, we think a permanent guest may. with advantage, try and find lodging elsewhere.
"It is imperative that steamers bringing passengers to Shanghai should be in a position to land them here, which they would not be able to do if there were not sufficient accommodation for them.
No Inmepiars Revier.
Text read from the printed page and cleaned; old type leaves the occasional error.