The tariff of charges for Municipal purposes and intro-agreement consumers Is to be periodically revised and is to be framed on such 1 basis as to provide the cost of supply, maximum dividends on shares, in the case of "A" shares 9 per cent.-per-annum, in the case of "B" shares 7 per cent. per annum (exclusive of any extra dividend payable out of the profits on shipping and extra-agreement consumers account), and an equalization of dividends reserve. A. tariff of charges on this basis was agreed with" the Murieipal Council August last, having been somewhat delayed by' the serious political events of the carly part of the year, came into force on October 1; it io embodied in a schedule to the agreement and is subject to revision next year, Prior to that no change had been made in our charges for water since 1905, The number and type of street hydrants to be erected is to be agreed from time to time with the Municipal Council and the Council is to pay for their maintenance, depreciation, and interest on their cost. As these hydrants are installed for the use of the Municipal Council, T think this provides a reasonable solution of what has in the past been a somewhat knotty problem.
The Company's registered land is to be written up or down to its Municipal assessed value, and the reserve 40 created is to be credited to a special land reserve account: borrowing powers are not to exceed from time to time and any {in share capital or debentures is to be made on the most economical terms possible. T have already referred to the Debentures sinking fund which has been instituted in accordance with the agreement. Our financial records and minutes are to be open to the inspection of accountants appointed by the Coun-and finally, the Cou nominate two directors on the board, We have in the past year had the very welcome assistance of Mr. Stirling Fessenden and Mr. T. H. R. Shaw in our deliberation:
In framing the new agreement, both the Council and ourselves have endeavoured to adjust the interests of consumers and shareholders on an equitable basis, and I venture to express our opinion that, in its working, the agreement will be found a very satisfactory one to both parties.
As you will all appreciate, the negotiations with the Council, draw. ing up the tariff and issuing and collecting the new contract forms have thrown a very great deal of extra work on the secretary and hi staff, and on behalf of the share. holders and the board, I to express our thanks and appreciation for the very efficient and satisfactory manner this work has been done.
The following resolutions were then passed:—'That the directors' report and accounts for the year 1927 as submitted to this meeting be and they are hereby received and. adopted.
That a final dividend on Intra Agreement Consumers' Account for the year 1927 of 52 per cent. on A shares and Sé per cent. on B shares Ihe and is hereby declared, and that the case of shares covered by certificates issued in Shanghai.'such final dividend be payable at ex-ment and Shipping Consumers' Account for the year 1927 of 6/2.8d per A share and 8.74d per B share be and is hereby declared, and that in the case of shares covered by presided, being supported by the certificates issued in Shanghai such outgoing board of directors, and a dividend be payable at exchange 2/7 per tael. representative gathering of mem-
Text read from the printed page and cleaned; old type leaves the occasional error.