To the Editor of the Nowru-Cuuwa Daty- News."
Sim,—With reference to the letter Me ¥. K. Wong in a recent sue of Sour paper speaking on] the Canton Waterworks Company, he has certainly not overstated the lets. when he said that public opin-is very much against the action of the Canton Municipal authorities forcibly seizing control of the Company. There is absolutely no legal justification for this step.
The poor shareholders are muzzle ed as they have been forbidden to hold any meeting, and despite the deep indignation and sense of jury life is too precious to be risked lightly by disregarding the official order to keep quite.
One most important point that Ar, Wong omitted to mention was that after the seizure of the Company, the board of directors was ese forbidden to hold any meeting, while a desire to call a special meet-1 oF shareholders to hold a discussion "on. thi re was. also Tanned. Such an attitude bears no semblance to the lectures of Dr, Sun on Government of People by People, but rather savours of autocracy, dictatorship.
The municipality announced that would call a meeting of share-Lelders on Uehalf of the company for the purpose of electing a representative to sit on the board of arbitrators for assessing the value of the company's assets. All faire winded persons will ak. Why should the board of directors be prohibited? The authorities have already annoaneed that the assessment commission will consist of four government officials and only one shar holder, and it seems then—that despite this overwhelming majority they desire to make the suppression of adverse opinion a complete one by having their man act as the nominal mouthpiece of the shareholders. As Mr. Wong says, it certainly is a farce.
Tt would not be amiss to invite the mayor of the municipality to devote a little attention to ordinary commercial Law and practise as well as to the registered reculatio of the Canton Waterworks Com. pany, which were approved by the government during 1905. The roleo the Company require that there ust be more than 50 per cent. of shareholders! votes present to form 'a quorum, so that even if the £0 cenmient succeeds in engineering the shareholders' meeting, as it prope to do, such a meeting and its ulations will be iliexal and valueless according to the company' rules. In the light of its action in seizing the Company there is little doubt but that the authorities wi conveniently shut their eyes to the illegality of such proceedings.
Even if the public succeeds in ketting the company's property valued' on an impartial tassie, the Hor shareholders will still be wale Kevin la difficulties. One usually the prophecies of prophets the shareholders will get_no value for their shares. The chances are that they willie given bonds. in exchange for their shares. At the resent moment Canton as well the whole province of Kwanytung i simply flooded with various sorts of Uonds masquerading under fancy ames, and it will be an easy matter te issue a new set to give the shareholders. Such bonds of course be worth no more than the paper they are printed on.
ie Republic was established many millions of dollars of bonds have been issued in Canton, and but a very small proportion of these have been redeemed by the government, consequently the public is inclined to look askance at these things. would tender a piece of advi the goose that lays the golden egg:
Tam, ote.
Ax Ovenskas Suanenowen, hongkong, March 20, 10
Text read from the printed page and cleaned; old type leaves the occasional error.