planation Issued by Shanghai Waterworks Ca.
In connection with the notice pearing in our advertisement: jlumns announcing 2 surcharge of Spor cent, on local water rat: explanation of the circumstances ading up to this development 1 een given to the."North-China News" by the Shanghai waterworks Ca, Ltd, In the agreement between the hanghai Municipal Council Shanghai Waterworks Ca. It. ated March 17, 1928, the tariff of parges and their periodic revision ere framed in such a' way that allowance for fixed dividends on the ompany's shares could be made ut of the nett profits, Water utes, therefore, were so fixed that ne cost of supply and interest on pital were met, When drawing up estimates prio)-a-tariff period rates of exchange ave been agreed upon by the Coun-Land-the Company, For example, existing tariff of charges was ed' on an agreed exchange of Bad. With Sterling-Tael ex-range now about 1s. Gd. it is objous that the estimates of expend-ure for the current year will be reatly exceeded, This fall in ex-ange represents a depreciation of pproximatey 39 per cent., to Whi ust be added resultant enhanced sts, In this connection, it should remembered that large quantities materials have been or are to ported for the purification and apply of water.
Under the agreement, any de-fancy in matt profs was to, ade up in the next succeed iff period. The directors ofthe hanghai Waterworks Co., Ltd. ere, therefore, faced with the propect of a large increase in water ates in 1931 to atone for the desioney in the current tariff po hey decided to put the matter be-sre the Council with a suggestion tan Smmediate surcharge on rates ith the primary object of lessening anticipated increase.
The Council decided that, in the reumstances, a surcharge of the ature in question could not be joined. It determined that, subject the company's undertaking to ex-ud the present tariff period to december 31,1031, a surcharge of 5 per cent., effective as early as ay be found practicable, was unvoidable. The company agreed to xtend the tariff period to the date ied, In announcing their cision, the Council promised to remnsider the whole question in the vent of the Sterling value of the ad appreciating to 2s.
It is hoped to put the surcharge to force in September. x de-(te announcement to this effect ill be made at an early date.
The directors of the Shanghai waterworks Ca, Ltd. have ex: rossed the view that the adoption the near future of a general eter tariff for water, is, from a utinig point of view, eminently desirable. Consideration is now be-given to this matter,
Text read from the printed page and cleaned; old type leaves the occasional error.