The admirable summary of the dis cussions in committee on the Shanghai Telephone Company's application to the Shanghai Municipal Council for a revision of rates, should be reassuring to the public, Evidently the application received critical examination from the Public Uulities Committee, helped by the able me Vestigation given by the Treasurer to certain financial considerations in~ volved. It will be noted, too, that Fepresentations made by members of the business community, as well og by Japanese and Chinese interests, Were taken into account, Full exam: nation of the committee's recom: mendation to the Council. may be Jdeferred for the moment, It 18 jsuficient now to make a few general observations. Apart altogether from the fact that the Council is advised to object to the inclusion of certain items in the Company's operating exponees, it will be observed that the Treasurer, in referring to his ade Verse comment, two Years ago, the relation of the 'Telephone: Com-any to the IT. & 'T. Company in volving payment of purchasing com= mission and management. foe, has now revealed that, at that time, the existence of a 20' years' agreement establishing those payments was not disclosed to him, It would seem that this invites interrogations, No doubt the Committee, in making. the recommendation for the adoption of an, Increase slightly lower than that suggested by the Company, have satisfied themselves as business men that the requirements of the public interest and of equity have been met. Yet the Council might carefully consider whether the data at iis disposal is entirely suMeient to Justify immediate adoption of the Committee's recommendations. Would be to iis own advantage and to the advantage of the Telephone Company, if "it followed precedent and appointed an ad hoe advisory [Committee to report independently on the whole issue? This might convenient way of meeting the demand for an' "independent audit It would not necessarily imply any reflection on the investigations ready made. It would merely be an additional safeguard inspired by the conditions prevailing and by" the manifest double which have exercised the public mind since the Company's application became known,
Text read from the printed page and cleaned; old type leaves the occasional error.