The cost of coal actually burned Jast_month was three-and-one-halt imes the pre-hostilities cost, and the coal which is now arriving and being currently paid for is costing the Com~ pany no less than 6% times what Wwould have had to be pald prior to August, 1997, 'The effect of this would seem to be almost' too obvious to need further pointing, but it will no doubt be of Interest to state that whereas the cost of coal constituted, normally, 45 per cent. of the Company's operating costs Ht accounted in July for no less than per cent. of the operating expenditure, "That percentage will be increased in the working figures for the completed month of August.
It follows that if, during July, coat constituted 13 per cent. of the' total operating costs, then all other costs fof operation, such as wages and all. materials and supplies used in' maintaining the service (most imported), "runieipat rates and taxes, ete, ete,, constituted 27 per cent, 'The increase in expense fon all these other items in July of this year was only 31.5 per cent. higher than the expense in July, 1997. Thix does not mean that many' items have not increased greatly: they have, bul economies have been effected in some items which offset increases in others: If the price of coal had remained on the same basis as it was In 1037, th the ineyeased charge for electric ser vice in Shanghai would in no way be Sut of line with the increase which have been experienced in respect of other services.
The essence of the whole problem ix coal, and the answer to the problem ies. in the ability to obtain suitable coal of China origin, payable in local furreney ata reasonable price. The company has been forced to buy from abroad at prices which convert ed into Chinese dollars have become out of all normal reckoning. Every effort is being made and every avenue explored to find the solution indicated above, but until this solution can be found' there seems to be little oF 1 Hikelihood of relief {rom increasingly burdensome costs.
Text read from the printed page and cleaned; old type leaves the occasional error.