To the Ealtor of the "Nowmi-Ciaca. Das News"
Sim,—The provisions incorporated in the Contracts between. the Municipal Council and patio aay undertake Ings impose conditions a5 of charges. and as to. the Counels Fight to inspect the books and records ofviie veemganes," Furies the Gounell is entired. under Test con-{acts to representation on the Board! of Directors "The general object in view in these contracts with public ullty undertak-{nes has been do secure for the public efficient service at moderate charges "The Shanghai. Municipal Finance Department is therefore able to keep effective check on the charges of Muliyunderlakings. tis " fonetion or thet department to examine their Books and records and the duty of the Treasurer to report. as tothe true position of the undertaking to. the Bonelli devotves ngan the Counc fo apprise ratepayers e Dosi-
expecially 20: when an application for fon of utility undertakings and, fp increase of alteration in tari of Charges has been made. Ratepayers Shouté be given time to examine the application and to. express. views. Tye Council would thus be safeguard "This appears all the more necessary it one remembers the very strong! criticism against the Municipal Finance Department by the Municipal Economy Committee, To quote part of the report...
While this Committee Is satisfied figures in eons lable im the Finance Departs feel hat inthe present form in which the accounts ate kept {hewe figures are not avallable for the Various. parties Interested, to make them useful to. the departments tive them the necessary' information and control that expendi If such criticism is possible against the Council's own keeping of accounts there ie reason to expect an inade~ quate check over the books and ree-fords of public utility undertakings. pany has applied for a revision in.
Since the Shanghai Telephone Com. tariff, in common with other subscrip bers, T think we are entitled to know:
0) If the Company's profits have been affected by over-capitalization, 12) "it itis a fact that the Company ioo offered' to repay the Muntetpal Counelt Tls. 2.000.000 loaned to. the Company in 1053, and if so, why tis (3) "Te there is any truth in the] faster tion hat the Company Purehaved tquloment or patents or other proper {Sufrom. their parent. Company" the a'r. of America or some other: arty. concern wae most untavou {s"one of the explanations shareholders have "been mein past "dividends dividends and itis now necessary to Increase the tari.
(a) What har. been written oft against equipment. buildings. "te. Since organization of the present Com: pany.
present' business conditions are OG) te the, Company aware that Eeplorable and that the Imposition of higher" rates will be a hardship. to many and eapectally "Jepanese and Chinese: subscribers.
A full and complete report should be published for the Information of [Shanghai, Feb, 24.
L. R. Hossextorr.
Text read from the printed page and cleaned; old type leaves the occasional error.