Editor of the "Noni-Cutxn Dany News"
Sim—That contributed article "Shanghai Rent Conditions" in your worthy news organ was one of the most cruelly stupid and stupidly. Jeruel pieces of propaganda put Jacross Shanghailanders in many yeats. 'The whole article Is a posi" tive insult to the intelligence of the layman, 'Do tenants in Shanghai believe that landlords as a whole get a total' return of three percent © for. their investments? Tt is a well known fact that most landlords get minimum return on capital invest Jment of seven percent, and this mark Jyou, when all maintenance costs are Jdeducted, including an allowance for Junoccupied apartments, a condition which, as every one knows, does not Jexist in- any apartment building in this city. Your contributor goes on say "What, however, is not realized (though easily substantiated) is that the expenses of maintaining an apartment house will absorb. 40 per cent. of the total rent income." Enquiries from four large. estate Jagents in town reveal that statement to be very far from the 1 fact that in where allowances service, water, heat, reserve, and iand tax, the sum total ldeductea never exceeds 38 per cent. Jot rent income, and in those establishments without lift service and where depreciation reserve does not have a place in the profit and ess account, the total maintenance Jdeduction amounts to 25 per cent of total rent" income. With the ex-Jeeption of a Company owning con-lerable property in Hongkew, and another Land Ca. who got wangled into converting a local dollar mortgage into sterling when the dollar was 1/2%. 1 challenge your contributor to substantiate his figures a competent auditor.
Text read from the printed page and cleaned; old type leaves the occasional error.