General, real: zing the importance of the relation of the powers of the Felice tu the whole problem of the Provisional and new Courts, and] particularly with regan. to. the Persistent efforts to exercise execu tive functions, did what they could dio under the ciceumstances £0 assist ju securing a new agreement which would concentrate in the hands of the Police as much necessary power 8 could be obtained.
It should be obvious to anyone familiar with "the working Chinese Courts that ist formation on the part of the Council through ite Police regarding what these Courts fare doing from day to day. is the keystone of the whole situation.
Therefore the suggestions of the Chairman and Director General 0 the delegates regarding the new agreement were made with the! object. of securing an agreement]
will prevent, in so far possible, the new Court funetio On April 1 the Special District Courts came into being, and already lents, have occurred which! dicate that the future relations of the Council with these coatts. will jin all probability be no less difficult] than they were with the old Provisional Courk, Telephones, The long existent and constantly increasing public dissatisfaction with the telephone service cul minated in June of last" year in Jconcerted "representations _being made to the Council by various national Chambers of Commerce, other associations and individuals urging the. Couneil to call upon the Telephone Company to give effect} to Clause 3 of the franchise agreement of 1925, which provides in substance for' the submission to] arbitration of any question of the {failure of the Telephone Company to faithfully discharge any of the] obligations imposed upon it under] the terms of the franchise agree ment, including its obligation to) provide and maintain a first-class telephone service.
Discussions between the Council snd representatives of the Company immediately ensued. During these discussions the representatives of the Company admitted the unsatisfactory nature of the telephone service, which they attributed, to the following causes:—(2) Failure on the part of the Company over a period of years to foresee the development of the International and French Settlements.
(2) The inability of the Company to raise the necessary capital for adequate extension of, equipment.
(3) The mixed equipment which the Company claimed it was]
compelled to install because]
of conditions which existed during the years of the war The alleged refusal of the!
Council to agree to the Company's request some two!
years ago for permission to)
increase the tariff of rentals, 'Ther defective condition the so-called outside equip-fully apparent after automent which only became matic equipment was install-and which presumably'
for "financial reasons the Company had been unable to remedy.
The discussions were further complicated by the fact that prior to entering upon them the Company had received offers of financial assistance from parties interested in manufacturing automatic equipment and financing telephone utilities, which offers had not been submitted by the Company to the Council for its consideration before the Company had arrived at certain, Jconclusions regarding them.
After prolonged discussions with! the Company the Council decided to secure the services of an impar tial expert to advise the Council regarding the whole complicated subject. "The French Council, from which the Company also has a franchise, was informed of this action and signified its approval.
The report of the expert, Mr. Anson, was made public in November last.
While not opposing the propest to secure the services of an expert, the Company felt that such a course would result in unnecessary: delay in view of the fact that the Cotapany had already taken the necessary steps to put its joxtside equipment into proper condition; that the rotary automatic equipment already installed and under order was in every way) suitable and up-to-date; that the extent ta which the Conipany was} committed to rotary equipment! precluded on economic and financial' grounds any question of the substitution of any other type of sutomatie equipment; and finally' that to suspend its programme of conversion from manual to.automatic equipment pending the arrival of an expert would delay the perfecting of the service which the Company was anxious to bring] about with all possible speed, The report of Mr. Anson, which was accepted by the Council, fully confirmed the attitude of the Com. pany as regards any question of, supersession of the Rotary system.
One of the results of Mr. Anson's report was to strengthen the general opinion that it would be to the best interests of the public if the Telephone Company were sold to some strong financial organiza. tion interested in operating and financing telephone utilities.
'At this time the representatives of three such organizations were in Shanghai, all of whom were pre~ pared to' make offers for the purchase of tha-Company.
Naturally in a matter of this -{mngnitade there was Keen rivalry, and each organization had its partisan adherents and supporters, fall of whom were eager to urge the relative merits, technical, econo. mic and financial,' of any proposal which their respective principals might be prepared to make, Tu view of the importance of the whole matter to the community at large and the reaction which might be incited by the parties interested any action of the two Councils or the Company could be construed by any of them as being diseriminative, the Company decided to invite the representatives of the three organizations to. make tenders for the purchase of the Company upon the general basis of the -oxisting franchise,.with the privilege of asking. for" modifeations of the At the same time an advisory committee, consisting of the Direeors General of the InteThational Settlement and French Concession and Messrs, Burkill, Henchman and Speelman, "was appointed by the Company to assist in considering any tenders which might be submitted, Tenders were received from each of the three organizations, but upon the advice of the Advisory Committee no one of the tenders was accepted.
this stage both Councils, suggested certain modifications of the existing franchise, which might serve as a basis for further tenders, or for further negotiations regard: ing tenders already received, Gertain points of difference arose between the two Councils regenting these modifications, which required considerable diseuesion. before a complete agreement could be ranche On April 4 a revised form of franchise was sent to the Company, which was immediately transmitted to the Advisory Conimitice, upon the basis of which negotiations with the parties interested were reopened and are now in progress, Before moving Resolution 1V 1 would, on behalf of the retiring Council, like to record our appreciate ion of' the enormous amount of Municipal work undertaken by the late Chairman, Me. H. E, Arnhold, luring the past year—work render ed all the more arduous owing to the absence of the Director General on home leave and at the "Kyoto Conference during the months June, July, August and September.
With these remarks 1 bey to pro-
Resolution 1V.—'That the Rex port and Accounts. for the year lending December 31, 1929, be wrann.—Inv, Chait= man, ladies and gentlemen, T beg to that resolution.
The CHatstan—The Hesolution has bei duly proposes and seconded and is now before the Meeting for Jiseussion——If no Ratepayer has eum ent to muke on Resolution No. 4, which has been duly: proposed fand seconded, 1 will now put it to the Meeting. Those in favour nlense signify in the usual mannce?—Any contrary minded?—Carried unanimously. cal will now call upon Brig-Gen, propose Resoluti Macnaghten to No. 5.
Text read from the printed page and cleaned; old type leaves the occasional error.