Proposals for Increases in Railway, Postal and Telegraph Charges Peking, July 28.
Reuter's Agency hals received from the Chiaotungpu the following copy of "The Reorganization and Construction Plan of the Ministry of Communications."
The Chiaotungpu is making earnest effort at retrenchment and reorganization of the various partments. As a result of politics the former Ministers of the Chiao-tungpu were in debt to upwards of $66,000,000 to domestic and foreign creditors. Mr. Kao En hung, therefore, intends to avoid politics and his plans centre on the question of how to raise the revenue to pay off ihe Ministry's huge indebtedness. been atest and will save up-Reduction in the personnel has
wards of $3,000,000 yearly while the reduction in the railways' staffs will save a further $15,000,- 000. Instead of continuing to levy the goods tax, the collection of which necessitates the establishment of a separate organ, the Cabinet has sanctioned the abolition of this tax, and proportionately increasing the freight charges on the different lines. This 1s estimated to give an increase of $10,000,000. As the postal charges are also comparatively low, it is proposed to levy an additional one cent on all letters passing the Chinese Post Office, which is expected to yield $500,000 yearly. The Department of Telegraphs will be reorganized and the charges for messages in foreign languages will be readjusted, which is expected to realize $2,500,000 yearly. The additional charges are not expected to inflict hardships.
The increased revenues will serve as a sinking fund for the redemption of outstanding obligations. Short term domestic loans will be secured on the increased railway freight charges: amounting to $60,000,000 and on the additional telegraph charges amounting to $10,000,000. It is anticipated that domestic and foreign obligations to upwards of $60,000,000, the principal and interest of which are falling due in 1922, will be redeemed in one instalment. This will reduce the monthly interest on the various loans by $2,500,000 monthly or an aggregate reduction of $30,000,000 yearly.
Text read from the printed page and cleaned; old type leaves the occasional error.