The Archive · 1922

GERMAN MACHINERY

The Case of Shanghai Before British Purchasers In view of the fact that the experience of Shanghai with German machinery was taken Into consideration, a recent case of the placing of a large contract for electrical machinery in England will be of local interest. In reporting the case the 'Electrical: Review' states The recent decision of the Worth. ing Town Council to accept the tender of Messrs. Mirrlees, Bickerton & Day, Ld., for the supply of a Diesel engine for the Corporation generating station in preference to that of a German firm whose quotation was nearly £4,000 lower, has aroused a good deal of criticism. One of the communications since received by the Electricity Committee took the form of a resolution of thanks from the National Union of Manufacturers, while another was from a loca resident, who quoted three different instances in which German electrical plant was' supplied before the war to electricity undertakings in Shanghai, Melbourne, and Cape Town, which were all found defective in working and by which, despite the makers' guarantees, no satisfaction was ever given, whereas in the Shanghai station a similar engine installed by @ British maker was found to be in perfect condition after nine years' working.

On the other hand, the Committee had a petition signed by 19 ratepayers expressing their amazement and dismay at the decision, and announcing their determination to oppose any application for a loan by every means in their power. In reply to the latter threat, the Committee now states that the sanction of the. Electricity Commissioners has been received to the necessary loan, and that the contract will be executed in due course. The Committee further reminds its critics of the fact that the extra cost of the British-made plant will not be a charge upon the ratepayers, but will be borne by the electricity consumers in the shape of charges for energy.

The undertaking is a prosperous and profitable one, and the ratepayers, as such, have not had any deficiency in revenue to meet out of the rates for the past 15 years, while in 1915 the rates were re-Heved out of the profits of the undertaking to the extent of £500. One of the most important considerations in the minds of the Committee in recommending the acceptance of the British tender was the difficulty which might be experienced in enforcing the guarantees under the contract in the event of a German tender being accepted and in replacing parts defective or worn after the expiration of the period of guarantee.

The Committee's chief concern, it goes on to say, was and is to secure reliable plant which will enable the undertaking to work at the highest efficiency and to avoid risks, whether legal' or engineering, the financial effect of which it found is difficult to estimate accurately or at all.

Dr. Sun Yat-sen is reported by the Chinese press to have given orders for the issue of $30,000,000 worth of bank notes. As he has made the convenient discovery that metallic reserves are unnecessary, the report sounds likely.

Text read from the printed page and cleaned; old type leaves the occasional error.

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