June 2. would require to be convinced that under Municipal auspices the water supply would be at least as efficiently conducted and certainly las cheaply as in the hands of the Company. Now, the Company practically says to the Council Tux discussions between "the! that it will provide everything the Municipal Council and the! community demands so long as it Waterworks Company have drag- "gets the money to do so, which in ged on for four years, and now we ' reality means that it must be as-find ourselves back somewhere sured of a sufficiently large re-near where we started. The turn on its capital to attract fur-Council seems to have given up ther capital when extensions have hope of agreement resulting from ' to he made. And together with the negotiations, and is accord-! that return there has, naturally, ingly to refer the matter back to to be security for the investing the Special Committee appointed public. No fault can possibly be in 1918 to give consideration to' found with this standpoint, and the desirability of the purchase of even a rate of interest is agreed the concern by the Municipality. ' apon. When, however, it comes It is somewhat heartbreaking to to the details as to how this rate think that after following this is to be ensured and what exactly controversy during all that time it denotes a divergence of view through the medium of the Muni-appears. Then, also, the Company cipal Gazette and speeches at the regard with disfavour the pre-annual meeting of the Water-sence of two directors appointed works Company, ratepayers still by the Council to assist in the fail to see daylight through the guidance of its affairs: it savours, problem, and for all they know j in its opinion, of a policy of con-tay have to go over the same trol without provision of the ground yet many times. No question arises as to the excellence of money authorizing such control, and, if this view be correct, there intentions on either side, but it does seem strange that after these would be the danger of the Company finding itself lacking the ne-months of weary controversy one side has to fall back on the purcessary capital. On this side of the case we are offered whatever chase of the business as the solitary means of solution. For all service the community calls for we know if may be an excellent provided that, within limits, the thing for this Special Committee Company is given a free hand in to be resuscitated, it may throw a its financial arrangements. To clearer light on the whole case these limits, however, the Coun-than we have ever had, the mass jell is not prepared to go. of.correspondence notwithstand-There is no occasion to suspect ing. It will, however, be prac-the Council of socialistic tendent tically a new committee that will cies in this matter: no evidence is consider the subject, if it be re-forthcoming that, having taken ferred back, for, through one, over the Electricity" supply, it is cause or another, only one mem-now pursuing a policy of absorbber of the original body can be the remainder of the public said to be available. But whatlities, at present the Water-ever the composition of the Spe-works with perhaps Gas, Tram-clat Committee, it will be at-: ways or even Telephones in its tended by the fervent hope that mind's eye. The position is progress to some definite end will rather that it regards the water be achieved, for whether as rate-supply as-of such supreme impayers or shareholders of the com-portance that, for fear of its lagpany, people are awearied. ging behind the growth of the When it comes to the talk of Settlement at any time, it would buying the Waterworks we begin conduct it under Municipal aus-to deal in very large figures. A pices. At least, by its reference valuation would be no easy mat- ito the Special Committee, such a ter to arrive at, and it is tolerably trend of thought appears. Sup-safe to reckon that if the com-/ porting this view it would then munity decided.on the purchase ' point to the success of Electricity as a Municipal venture, and on this analogy leave us with the impression that we should get our water cheaper under its auspices, quoting such points in support as the probability of making lower debenture issues than a company can do and having no shareholders to satisfy with a higher rate of interest. These points are important, and are not likely to be lost sight of in the future discussions of the matter. Above all, the water supply is so very vital that it is a form of municipal undertaking to which no exception should be taken. As a matter of fact, however, there are those in Shanghai who on account of the very peculiar conditions under which we live do consider that as many of these public utilities as possible should remain outside the Council. For one thing, no local Government Board exists to keep the Council in order, while in a sense the Council acts as such to the companies and safeguards the pockets of the ratepayers. We do not, unhappily, imagine that the present controversy is nearly at an end, but the latest letter by the Council seems to suggest another phase in which the considerations we have put forward above and a great many others will play an even more important part than in the past.
Text read from the printed page and cleaned; old type leaves the occasional error.