Sha May 18.
Among the oficial Company notices appearing today Is one by Shanghai Telephone Company giving notice of the payment of a dividend with respect to the year 1998 and of ibstantial eopitatization of surplus.
"The dividend amounts to ChS423 fon each Tls. 50 share. which ts the equivalent of 608 per cent. The dividend is to be paid on June 3. 1939 stockholders of record at the close fof business on Moy 22, 1939.
'The capitalization of surplus is to cenabin each existing Tls. 30 share be changed into ten shares each of the par value of ChSI0, thus dropping' the obsolete tact denomination And at the same time introducing share of lower par value. Since the expanding nature of the Company's business necessitates conservation of the Compans's cash resources the directors fect that w part of the sur plus. might well be capitalized and distributed to the stockholders in the form of stock for an additional aggregate par value.
Statement of Income and Earned Surplus Accounts for the year ended April 12, 1939, are submitted herewith, Operations for the year ended De-comber 31, 1998 resulted in net me come of Eh. $948,200 as compared with Eh, $927,995 for the previous year. A comparison of the. income recounts for the years 1998 and 1997 is presented below Exchange revenues Miscellaneous operatinie rev Total operating revenues Expenses of operation Provision ing expense earnings. from operations indy earnings fig. bose mes Ne <Aahaied we pee om cogarie willie noted from the foregoing tnat "shire operating ravennes are recs tobe toe betes prices ta cpatling expanse tad the fos on frelge "techunge. "Ket Income for 1058 is feweree, Eh 20205 in excess of the BGT nue, hart farm obligations wore reused vy Chr SuaforT during the year tne Paso atsteoding' tt Decese? 2 {008 being Eh. stbaaoa. represented ents From the beginning of the year the Company started to regain telephones previously lost and as this growth ined "impetus in the succeeding months. the Company. by the end the year, had 2.966 more telephotes ju service than the previous. hig! point attained just prior to the com-oncement of hostilities. During "he year 1938 as many as 17,800 telephones were added to the system, and at December 31, 1938 there were 63355 telephones in service.
Tu addition to the increase in tele phones, the calling rate alco improved demonstrating the greater use made of the system by all subscribers. The total number of telephone conversa~
Text read from the printed page and cleaned; old type leaves the occasional error.