To the Editor of the "Nontu-Cuina Dany News."
Siz—When a man becomes i solvent and an examination of affairs is conducted, his creditors invariably seek to know when he firat became aware that his business was not paying its way, and for how long he continued 'a losing. trade involving greater indebted: ness, He is usually considered dis-Tenest to persist in a course which increased loss to his creditors. Is honest for foreign shops in Shanghai to continue, year after year, a losing business' with no reasonable prospect of betterment, and thus defraud the shareholders? One managing director, in presenting his report stated in a straightforward manner that he saw no prospect of the shareholders getting a dividend, as things were.
Year by year companies continue unprofitable business, which means increased Loss to the shareholders. Conditions in. the Far East have so changed that foreign shops cannot compete with their richer Chinese competitors. Why. not close down now and cease to follow the "will o' the wisp" policy of hoping for better days? This year the poor shareholder may get Something, next year he may get nothing.
Tt is useless to expect the banks to lend money at lower rates. I, for one would like to see the banks refuse to support insolvent companies any longer and compel them to cease fooling.
Could not a meeting of all the shareholders of all companies, that have ceased paying divi called and by thei combined efforts force the directors to wind up affairs and divide any assets among the shareholders.
Tam, ete,
Text read from the printed page and cleaned; old type leaves the occasional error.