'This together with other emergency expenditure we were forced to incur to protect and maintain the plant has had an adverse effect upon' working expenses which show an increase over those for 1936, in addition we have had to charge to profit and loss ace count an amount of some $95,000 to cover bad and doubtful debts. We considered it advisable to make ample provision in respect of" this Mem, as it is likely to be many months before the true position leven the whereabouts of many of former consumers con be" certained. Also it has been neces sary to grant allowances in many cases. These items alone largely account for the decrease in the net profit as compared with that for 1936 In spite of the fact that the revenue for the year showed on increase, Although removed from Shanghar HHself, the hostilities are still in. proexercising a profound fleet on local conditions and although Shanghai will always require water, events such as are now occurring fsannot but affect your company. Actes of highly developed property in the area north of the Soochow Creek have been laid waste, and those factories that have escaped material damage are closed down or at best working short time. Here my remarks regarding the 1992 hostilities may not be inapt. They were as follows: changes in Capitat Edo not propose to enter ino_a uscussion as, forthe rights and wise Last year, I referred to changes in the Japanese the conde atween the Chines aid Joan. capital. which, although not fecting the 1996 accounts, hod taken place before 1 addressed you, Those IRs iimpattamee anon changes are roilected in the ba-subjected {0 all the hervore of ioo fe world should Se'in position fence sheet now before you by Wwatfare. Ili the interest of li Goncess the. appearance "of per cent, tae. of $2,000,000 deben {ures and the elimination of the for cent. issue. of £10000. sterling ilotes, in view of the exenange position today. we may. congratulate Surely, Genter ter tis secon Surselves in" thus "having -dWvested Ourselves of this sterling liability. egal a3" fertag a s Sa prepeey In"Fune of ast year we took, the opportunity of replacing. the fur ent ste of Tls. 500,000" 1025 iit ati Spe Benontures which were due for re-emption by the Issue of $725,000 dlebentutes bearing interest ut the teeeete Shang tt (he's ate of per cent per annum, De-Site ay eho falls of these operations are set out ther fate "h Matto your directors' report.
Ieee South wht Sea Reprevged hoe Weta reviewing the year's working, by. far the most lmporiant factor 15, fri wh ptt EscT'have already. mentioned," the Bitter "Condon Samet nope sno-Japanese. hostilities. Yow will recollect that by arrangement with tooer fit ind oon the Municipal Council the rebate Was Geerenred irom 25 per cent, {0.20 Yangtszepoo Plant por cent, as from February 2, 10 {hie "'increate' in. our' chatgea, In spite of some difficulties your gether with an increase. in demand plant at Yangtszepoo has been main-Resulting from rapidly improving nined in its usual good order and Toco! conditions generally, gave pro although four incendiary aerial bombs ise of a revenue for the. year fell in the north compound and some Enproximately $200,000," that is shells of small calibre exploded on fifiient ordinarily to have resulted the property no damage of conse-inva net profit capable of taking car? quence was sustained. We are in-at Toast of all dividend requirements. debied to His Majesty's "Consul fact, "this expected. revenue General for his assistance, to His figure hasbeen reduced to $4,128,000, Majesty's forces both naval and mili-'This reduction is a direct result {tary from which armed guards have the hostilities The outbreak of has been continuously provided and. {0 Uies" in Auigust caught. the resid-the members and officials of. the nts of the areas north of the S00- Municipal Council who have been ow Creek comparatively. unawares, ready at all times to ce-operate and Sng. although there. was, just prior render assistance when required.
August 13, 'a more or Tess. com.
I should like especially to refer to plete evacuation of the more distant our fellow public utility of the northern areas, yet in the Settlement French Concession, the Compagnie {itself there remained at the outbreak Francaise de Tramways et @'Eclairage 8 considerable proportion of the Eleetriques de Shanghai. At the outpopulation, set arrangements were made for the
Text read from the printed page and cleaned; old type leaves the occasional error.