In reviewing the year's workings the dominating factor Is of course. the outbreak of the Sino les in August, I'am pleased to be able to report that your property, though situated in the area in which Aghting was in progress, has come through intact and undami Until August in common with Shanghai generally, your business was reacting favourably to rapidly improving conditions. However, once hostilities started it at once became apparent this was no repetition of the periodic disturbances to business that have been suffered In the past Dut that we would have to be prepared to meet a set of vastly changed Conditions for a protracted period, Your directors after the most care-{ul consideration, were reluctantly forced to the conclusion that. the situation called for drastic retvenchment to offset the greatly reduced turnover which -must. be anticipat This has, unfortunately, necessitated 2 reduction ju stall, which reduction st has been effected, it is hoped, with-onl undue hardship. Your directors and those of your subsidiary company have in recognition of the position agreed to accept halt fees until such time as conditions improve, It is particularly regretted that it was not found possible to retain the services of Mr. Jennings, our manager since 1929," He left the Com: pany's service on December 31, 1097, on the expiry of his service age ment and relumed to England where we wish him every success. Mr. Goodman, who has be manager in his place, the Company ever since ite incorporation having been prior to. that Ave years in the Fittings Department of the Shanghai Waterworks Com pany, the business of which was, taken over by the Company. He brings therefore to his new appoint= ment a wide experience in the affairs of your Company and we have every, confidence in him.
Text read from the printed page and cleaned; old type leaves the occasional error.