Reasons for Choice of British Expert srr £0 me "ne, The Shanghai Municipal Couneit, it understood, is proceeding with the appointment of a special committee to inquire into the question of the vision of the telephone rates, on the lines proposed by the Shanghai Telephone Company. The British expert whose name will sharily be. a nounced, will not be a member of the Committee but will merely report on the problem and advise the Com: mittee accordingly. The Committee may consist of four members and the Japanese community will be asked nominate a representative, it—i¢ expected, Meanwhile the attitude of the Japanese press, as recently revealed causing some Sewilderment. Opportunity was taken on Sunday to discuss this matter with a British Ratepayer who, although not a member of the Couneit, is in exceedingly close touch with the Council and with the Telephone Company, besides having a practical acquaintance. with the views of a number of telephone subscribers, He pointed out that the Japanese criticism seemed to do less than jus-Uice to the French Municipal Council which is working in close co-opera tion with the Council of the Into national Settlement and is not at all Aisposed to be "led by the nose"
Facts Not Appreciated Japanese comments on the Tel phone controversy in Shanghai a considered to Jack appreciation of the relevant facts, The Shanghai Municipal Council which, of course, is not solely concerned in the matter, for the Council of the French Concession is also a party to the negotiations with the Shanghai Telephone Company, has not adopted an arbitrary attitude in approving the 11 per cent, at rate. Chinese opinion being. strongly opposed to the message rai which it is still thought will be th real solution, and the Public Utilities Committee being divided on that sue, it was thought best to continite on the flat rate basis temporarily. with minimum increased tariff, to help produce the revenue to which the company is entitled., The Council could not lightheartedly incur the risk of having to pay the company commnsation for losses between April 1, and the date when the Special [Committee's Report would be received and carried into effect, if such action met with the Council's approval.
is pointed out that in August 1890, Shanghai was faced with the need for a reorganization of its telephone service on lines. which would Involve the raising of capital beyond the resources of the existing company. That company itself was convinced hat whoever undertook the reor= ganization would have to fa capital outlay. expert examination of all. available alternatives. Tt was obviously necessary to guarantee returns later, otherwise no company would have been willing to assume the responsibility for installing the automatic system which was absolutely necessary 10 xive Shanghat the eMelent service desired. No one denies. that that efficient service has been given.
The British Expert In regard to the choice of a British Post. Office expert, it appears that, although the point has been made to representatives of the Japanese press, the Japanese residents "do. not yet realize that in most countries telephone organizations are controlled by tone or other of two telephone systems. The British Post Office is the only organization which uses both systems and could therefore provide an. independent expert. In Japan the tele phone organization is. controled by the same company with which the Shanghai "Telephone Company affiliated The Council's procedure in dealing with the disclosure of the negotiations regarding the telephone tariff has been in accord with the regulations and the only departure therefrom has been in the direction of advancing information to the public before the usual stage in the Council's delibera-ons, by allowing a statement of the company's application to be issued before the Utilities Committee reported on its deliberations.
regard to the Special Commitiec to be appointed as the result of the decision reached at the Ratepayers Meeting, it is expected that the Japanese will be asked to nominate a member to that body. The Briticn expert will not be a member of the Committee. He will be asked to re: port on the problem and to tender his advice to the Committee.
*erRaltoral Comment on page 25, "Lonnon mail of May 16, transmitted was delivered here on "Monday, June 3.
Text read from the printed page and cleaned; old type leaves the occasional error.