To the Editor of the Nonru-Cla Daly News"
Sin,—The contribution to, these discussions made by "In Debt" shew fan aspect. of the seriousness of titese continued defaults where idea with a family to support is tunable to meet obligations to her creditors until she receives, the pal ments due' to her. The reference fo payments to the compradore and butcher bring the question down 2 phase of its reaction on home life find it may be safely assumed that compradore and the butcher would derive litle satisfaction from earning that whilst no definite statement was forthcoming concerning their accounts steps were being taken to meet certain dressmaking millinery bills." In the. numa: us announcements recently pub: lished "setting forth particulars of ther payments there' is nothing Jead. to the impression. that. there would not be a fourth default and There may "be something. in, the rumour unless it be that the soit side of TS per cent. instead 0 5'per cent, as now proposed to the Ministry of Railways is Intended to make the required provision. aside by" the Shanghai-Nanking seums apparent that, sume set Railway are intended to. meet payments to Net. Profit Certifeate holders although "Net Profit Certificate, Holder and Bondholder, S.NAU" expresses thanks to the re: Dresentatives of the British and Chinese Corporation for" their efforts on behalf of the bondholders, from which it. would' appear that the bondholders have grounds for 'To what this refers is not at the moment apparent and whilst none will withhold gratitude where it is it would seem that the thanks should "frst be. expressed. to. the Writer of the letter' which, oppe ed in your issue of May ¢—which originated these discussions and those who took an active interest in the question and formed the Bondholders" Committee to interview the British and Chinese Corporation This step was not taken until there ad been default after default and would be interesting to. know what action the British and 'Chi-hose' Corporation had - previously een ftakdng™ as the responsible missioners may, however, call upon the Representative of the Ministry to report to them in writing upon the affairs of the Railway. tIt
agreement the Managing Director, would seem, thet under this' new who "formerly represented the Board of Commissioners, became the Representative of the' Ministry jof Railways and the authority of the Board so far as the three British members lay could not therefore be exercised directly with the managing Director as Chairman of the Central Purchasing Department the British and Chinese "Corporation ras prepared to. relinquish. its Tights, under article 9 of the Loan Agreement, to. receive (for ita superintendence and services) the remuneration of 6 per cent. on the entire cost of. materials. purchased for the railway.
For their services as trustee for the bondholders and agents for the railway' the "Ministry of Railways will pay to the Corporation the remuneration of $5,800. per_annum during the "terms of "the Loan 'Agreement, but It will be observed that whilst the payment ip to be made by the Ministry the sum will paid halt yearly' from the 'Te-venues. of. the. Shanghai-Nanking Railway' on the dates when pave ments of interest are due, Is this figure a new. charge against railway funds and does it take the place of the 8 por cent, om cost. Of materials purchased? Has there been default in the Day> ment of this remuneration to" the Corporation each "half. year along with the interest. defaults? Whilst the bondholders have gone unpaid the Corporation at" its thirty-Atth annual meeting recommended the transfer' to the general Tesetve account of £50,000 from the. credit balance for the year and. limited themselves to the proposal of a divfidend of 5 per cent.
The new agreement is to record the conditions of management, clarified by mutual understanding? fand it would now be interesting to Jers clarified. As. the Chairman' of have the position of the handhold.
he 'Corporation' is at present. in China he might. be invited to. explain' to: the investors. what their position really 1s how the Board of Gominissioners now functions.
Tt might not be inopportune to review tha, "British and Chinese Corporation's New Agreement, wit the Ministry of Railways Modifications of Old Contract" which was Published in your columns on February 2, 1930, a reference to which would no doubt interest your many. contributors on this question. In agreeing to the "furtherance of the policy of direct gration of the railway by the Shanghai, Sept. 25.
Text read from the printed page and cleaned; old type leaves the occasional error.