Thus empowered, the Bureau created the Debentures Redemption Fund, using as a basis for this fund four Debenture Certificates of the oda Debenture Redemption Fund, being created by the Municipal Bureau of the S.A.D., and. the Bureau has contracted to pay them gum sufficient to cover the obliga tions of the Bureau as taken over: from the ex-Municipal Council.
The Loans Enumerated It will be recalled that by virtue of the Chen-O'Malley Agreement, February 19, 1927, the British Concession in' Hankow became the Special Administrative District No. 8, the Council was dissolved, and the administration handed over to a Municipal Bureau under certain Tegulations, one of which provided that the Municipal Bureau should take over the financial obligations of the Council, contracted under the Shanghai Municipal Loan of 1918] and the sum of Tls. 832.45. On top of this the Bureau has contracted to pay Tis, 7,910.43 annually _on January 1, as from the beginning] of 1928, to the trustees of the fund whilst any of the debentures remain' outstanding.
This annual payment is calculated) the 1922 Joan Sa4s0 9.93338 the 1025 loan 4482.00 Total 791083 This sum, calevlated on the basis of a yield of 6 per cent, per annum, represents the sum required annual. ly for the final redemption of all the debentures. financial obligations may he briefly outlined, They consist of the "1914 Joan" totalling Tis, 50,000 out of Tls. 100,000 authorized at 6 the 1922 loan" totalling Tls. 160,400 out of Tis, 250,000 authorized at 7 per cent; and the '1925 loan" totalling Tls. 222,000 out of an authorized Ts. 300,000, also at 7 per cent, Without going into technical details, it may be said that the "1914 loan" was repayable Detween Juno 30, 1924 and June 30, 1989, the "1922 oan" between June '80, 1952 and June 30, 1952, and the "1925 Joan" between June 90, 1985 and June 80, 1965, The money thus paid into the fund is, according to the agreement, to be banked and administered by the trustees, who have po invest any part of the capi interest of the fund at their diseretion or place it on deposit or in current account in the bank. 'They' are also empowered to burel low par debentures, which be cancelled; while, the Municip: Bureau agree that, "if at the end of any year the interest accrued due on the fund shall be less than por cent, per annum, it will demand of the trustees pay to them such a sum of money as will mal up the interest to 6 per cent. per The Confusion of 1927
Owing in part to the confusion which reigned in Hankow after the signing of the Chen-O'Malley Agreement, no definite steps were taken by the Municipal Bureau to assume' the financial obligations of the old Council until April of this year when, at the annual meeting ratepayers, the following: resolution adopted: "That this meeting of Ratepayers approves the recom mindation of the Council that Debenture Redemption Fund The Signatories above is a short precis, is signed The, sereoment, of which the by L. N. Chang, Director, the Special Administrative District No, 8 of Hankow; A. M. Chaplain, Commissionar of Postal Services; F. Goto, Chairman of the Committee of Hankow. Foreign Chambers of Commerce; "and J. H, Pentycross, manager of the Hongkong & Shang" hai Banking Corporation, in presence of C. E. Sherwin, solicito
Text read from the printed page and cleaned; old type leaves the occasional error.