Our Engineer-in-Chief & Manager, Mr. Pearson, retired from the service ai the company on March 31. He joined the company in 1904 and held the position of Engineer-in-Chief Manager from 1925 to 1938. It mus be a source of gratification to him to have witnessed the growth of the company under his management from a consumption of 1,600,009,000 gallons to 15,800,000,000 gallons. However. what must have been even more gratifying to his professional pride and to the satisfaction of his Board, was that the reports of the two highest American Water authorities, of their time, I refer to Mr. George Fuller and Mr. Nicholas S. Hill, Jr., This together with other emergency expenditure we were forced to incur to protect and maintain the plant has had an adverse effect upon working expenses which show an increase over those for 1936, in addition we have had to charge to profit and loss account an amount of some $95,000 to cover bad and doubtful debts. We considered it advisable to make ample provision in respect of this item, as it is likely to be many months before the true position or even the whereabouts of many of our former consumers can be ascertained. Also it has been necessary to grant allowances in many cases, These -items alone largely account for the decrease in the net profit as compared with that for 1936 in spite of the fact that the revenue for.the year showed an increase, who on two different occasions reported so favourably on his policy and management and said that the company was run economically, efficiently and according to the best practice of water method It is with very great regret that we lose his services. I em sure you will all join with me in wishing him and Mrs. Pearson a very long and happy enjoyment of their leisure in England.
Mr. Rial, our new engineer-in-chief, end Mr. Lock our secretary and assi: ant manager, are well fitted to carry on the work of the company as efficiently as heretofore, but your Board considered it desirable for the present that I as chairman should devote part of my time in collaboration with Mr, Rial and Mr. Lock in
Text read from the printed page and cleaned; old type leaves the occasional error.