To the Editor of the "Nonr-Cuia DAILY New:
Sir—In your leading" article under the above heading of day, you state in regard to the jerease in rates, that the Telephone [Ca. in-their negotiations with the [Council were faced with the neces sity of making an estimate of capital expenditure for five years to come, 'Apparently then this capital penditure is to be a charge upon Revenue, or a sum is to be set aside Jeach year out of revenue to meet it, which is the same thing. other words, the rates are to be Jereased by about 15 per cent. for residents' telephones and about 20 Der cent. in business houses, prob-jably to meet the whole of this Jestimated capital outlay.
Now, Sir, I put it to you. Is it just and reasonable that the tol hone subscribers should be oxpected to bear the cost of this capital Should not the Telephone Ca. have provided for it by the issue
fas the outlay was required'
new shares from Sime to, time Shares were issued at thei par value—Tls. 50—as done some 12 years ago, or even premium to existing they would have been readily taken Tam, ete, E. Morriter Rexo.
Shanghai, Dec 1924.
Text read from the printed page and cleaned; old type leaves the occasional error.