Returns on property were extremely meagre, which was another ground for the raising of the rentals. Materials for the buildings—ranging from the massive steel structure to window-frames, floorings and baths—all had to be imported from abroad (and paid for in foreign currency), the only local "products." if the word might be used, being the brickwork and labour.
During past years, rents had been reduced considerably, althdvigh the cost of maintenance, especially of the larger apartment and office buildings, had been on the increase. Coal during the past winter had had to be imported from abroad, the usual domestic coal being impossible to secure; that presented an additional—and not inconsiderable—extra expense.
The cost of running large apartment buildings actually comes to about 45 to 50 per cent. of the gross rentals, The general public does not realise that! The difficulty in securing coal from, local sources is going to make a tremendous difference and will reduce revenue. considerably and while we and our fellow landlords feel that we are always conside rate, we are in business and de have a duty to our shareholder:
The "Time Lag'
Tt was a well known fact t considerable number of tenants were actually paid on a sterling or US. dollar Wasis. Some of them had leases on that basis, as well. It was also an accepted fact that, subject to the usual lag, salaries were adjusted when the local currency declined in value. In Shanghai, everything but rents had gone up during the past few months. Rents had been decreased very substanti recent years, but it should have been realised that they go up when demand overtook supply Whenever landlords tried to protect their interes in time of extreme necessity, however, there were immediately loud cries of profiteering. "trying to get blood out of stones, and so on. These charges were manifestly unfair, he s No property company in Shanghai—with the possible ception of one, which was in more fortunate circumstances, particularly in connection with the location of its properties in the French Concession—was now able to give their shareholders any return. Seversl of them were forced to borrow money to pay debenture and bank interests
Text read from the printed page and cleaned; old type leaves the occasional error.