Necessity For Surcharges Explained by Growing Costs in Shanghai; Currency Difficulties Have Deserted Him; Aide Alleged Suicide national Settlement were issued yesterday, showing how in-on the public utility services in the Shanghai Inter-creases in the costs pf the companies concerned had necessitated increases in the surcharges made to the Shanghai public during last year.
The Coufcil's awn report, which follows, was supplemented by the reports in detail of the different utility companies, each one of which outlined its own particular difficulties in support of their petitions to the Council for increases in their surcharges and rates, The reports of the companies will be found in the Municipal Annual Report. They show that a great service is being rendered to the Shanghai public under exceptionally trying conditions. Transportation companies have been hampered by the continued closure of the northern districts, and the rising prices of foodstuffs have been a problem for all.
China General Omnibus Ca., Ltd.
Fare Charges The company applied in August for approval of an increase in its fare charges, stating in support of its application that while it was possible to cover costs and make provision for depreciation and interest on capital when the exchange value of the local dollar wüs at 84 pence, it was not possible to do so at the exchange rate then prevailing and that services were being provided at a considerable loss. The proposed revision represented an increase in the average per mile fare from 335 to 4.35 cents, or 225 per cent., in respect only of routes in operation South of the Soochow Creek. Since the Company is entitled under its Franchise to charge fares up to 10 cents per mile for first class accommodation, the request was considered reasonable and approval was accorded thereto. The revised fares came into effect from September 6.
Routes.—With the object of popularizing Kiaochow Park, the company agreed to the Council's suggestion that experimental omnibus services be provided between St. George's and Kiaochow Park, via Jessfield, Avenue and Kiaochow Roads and services commenced on this route, known as No. 17, on June 24.
In October the company reported that patronage of this route had not covered working expenses and applied, and was granted approval, for extension of the route to the junction of Ferry and Robison Roads, via Singapore, Haiphong and Ferry Roads, Shanghai Electric Construction Fare Charges—As a result of the increase in operating costs due to the decline in the exchange value of the Chinese dollar, the company made application in April for approval of a revision of its fare charges, involving increases in its average fares per mile from 2.67 to 3.11 cents for Ist Class and from 1.84 to 2.15 cents for 3rd Class accommodation. The application was given lengthy consideration and legal opinion was obtained to the effect that the company was entitled, without seeking the Council's approval, to increase its fares up to the maxima permitted in its Franchise of October 10, 1905, as amended by correspondence in 1930, ie, 10 cents per mile for Ist and 5 cents per mile for 3rd Class. The company's request, which was considered reasonable, was approved in June and the increased fares came into effect from the 29th of that month.
In November, the company again sought approval for a revision of its fares, involving increases in the average per mile fares to 3.71 cents for Ist Class and to 2.54 cents for 3rd Class, in view of the effect of ihe further decline in the exchange value of local currency on its operating expenditure. As this request was considered reasonable and, moreover, the proposed average fares were well within the permitted maxima, the application was approved and the increased fares came into effect from December 22.
Text read from the printed page and cleaned; old type leaves the occasional error.