A steady growth was maintained until abruptly halted by the hostilities in August, but the unprecedented conditions prevailing during the last five months of the year inevitably affected the business of the Company. 'AS a result, for the second time in the history' of the Company, (the first time was in 1995 as an outcome of the" business depression in that year), the complete year's working Shows a loss in telephones in service. The net loss for the year amounts to 10,525 telephones, or 18.8 per cent, of the number of telephones in service at December 31, 1936. Included in the loss are 25 Public Pay Stations which have been destroyed or made inaccessible by hostilities. That this service, introduced in 1935, is_appreciated by the public was indicated by a steady increase in the revenue er station. Local trae showed a slight upward trend during the frst half of the year, with a peak in April of 835 completed calls per line per day. A sharp drop to 8:82 occurred in. 'September, with a substantial recovery to 6.98 in November, approximately 89 per cent. of "July figures. However, as a result of a loss of lines; the estimated total completed calls' in November 1937. was only 6,462,000 against 9,956,000. in July 1937, a drop of 35 per cent.
During' the first half of the year considerable expansion to long-distance communication took place, service being opened between 2Sranghal and United States on Mav shantnal and Hongkong on February' shanghai and Swatow on June 1, 1007
In addition to the foregoing, communication was established with a further 40 towns in China, Tests were also proceeding with London, Berlin, Copenhagen and Rome:
Many lessons were learned during the 1982 troubles, and the various Preparations made as a result of the experience gained at that time proved invaluable during the recent emergency. Among the more important these preparations was the General Emergency Scheme, which came into operation immediately the hostilities commenced. This scheme, incor~ '200 parating a' special emergency staff organization with centralized control, proved of inestimable value.
The "Liaison Scheme," organized in 1933 by mutual arrangement between the Shanghai Volunteer Corps and the Company to facilitate communica tions ce-operation with the Defence Forces,.worked extremely. well and Was teatly appreciated by all con Subsequent to the commencement of hostilities precautionary measures minimize the possibilities service interruptions were made by provision of subplyy fromthe' Frenchy Concession. tojany automata Centrat Ellice pisced special carpment fo intercept cally
supply of ater cseenllal for the operat CBergeny facilities 0 ensure ce Central Gaice caulpment The Company is fortunate in that most valuable plant, namely the
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