re American expert who har ven in Shanghai nan here. into the telephone quite distinct from this inquiry. They did not accept book figures. They had checks on every figure, The question of value was a very knotty problem. Major Brown gave san illustration a valuation made bby the British Post Office, which was directed to make a valuation every ye years bus found the Job so groat that it was not done in detail until. about twenty years after the system Was taken over from' the National Telephone Company. There was a standard known as the 100 per cent. Standard, which was. the "pre-war standard of costs. After the war, prices rose in 1922 to 120 per cent. 'Above pre-war prices. As the plant was then in bad condition and' dey velopment was necessary, consider-table expenditure had to be incurred. It could not be avoided even at the high rates prevailing. 'The prices gradually fall thereafter until' 1929, ut the mean price for the whole: period was between 80 and 90 per' cent, over pre-war prices. The result was' that they had something like £30,000,000 of plant at pre-war prices: and £ 100,000,000 invested at post. prices. Valuation mest be made as on a certain date. How could a pro: per valuation be made under these' conditions? If they had wanted anything of that kind done in Shang-hal, he would have required a staff of $0 men and twelve months which' to do the job. And even then If the valuation were re-taken month later the figure obtained would be a different one.
Text read from the printed page and cleaned; old type leaves the occasional error.