OSAGE rate tariff for both business and residential subscribers of the Shanghai Telephone Company is recommended in the Report of the Special Committee of Telephone Experts who submitted their findings last Wednesday to the S.M. Council, the Report being signed by all four members of the Committee who fare Major H. Brown (British), Mr. Z. H. Hu (Chinese), Professor Inada (Japanese), and Mr. J. G. Wray (American).
Finding under the terms of reference that the Company was entitled to an increase in tariff from April 1, 1935, on fulfilment of its undertaking to convert the system to automatic working, the Committee of Experts closely examined the Company's expenditure for plant which they demonstrate to be reasonable and necessary and that the Company's statistical control is highly efficient and the maintenance conditions and results obtained sati factory although the Committee urge that present efforts to reduce operation costs be continued and Suggest some possible economies.
Leaving the question of the Outside Settlement subscribers' position still sub judice to present negotiations and outlining from the technical view the shortcomings of arrangements now obtaining for long-distance call the Committee argue at length merits of why the method of ging for service should be on a message rate basis which they suggest should be for business subscribers at the rate of $10 monthly rental including 150 calls with additional calls at three cents per call, auxiliary lines each $5, while, for residential lines, $6.50 monthly charge including 100 calls with additional calls also at three cents per call.
The recommendations of the Com and were prudently made. This aplies also to outside plant, station equipment, central office equipment, land and buildings, ete.
Panacnari 1. (©) of Terms of Refer ence: Ts. the. present. cost of operation and maintenance of the Company's bust fess Justified? provided, Is entitle Sub. paragraph 2 to a net return on capital Invested in the business of per annum plus 2 per annum.
yy 1s entitled to an increase i 1, 1935, on the expiration years from the date of thi completion of the conversion to automatle working, in accordance with undertaking entered into
Text read from the printed page and cleaned; old type leaves the occasional error.