Shanghat, July 20.
In May public notice was given by the Shanghai Municipal Council its approval of the agreed surcharge lof 15 per cent, on the price of gas] being continued with effect from May 1, subject to reconsideration in Suly.
Application has now been made by the Shanghai Gas Ca, Ltd., for fan increase in its tariffs in order to meet the greatly increased costs of operation owing 0 the decline in [value of the local dollar. In addition, the Company has been compelled, through force of circumstances be: yond its control, to contract for the Supply. of coal' of: suitable quality from Australia, with the result that the cost of fuel will be considerably higher for the halt year ending December 31, 1938, than for the half year ended June '30, 103
On behalf of the Cou Company's application was subjected to. thorough examination by the Treasurer and Controller, who report Jed that further relief was justified. He recommended, however. that the Increased revenue which the Com-Jpany was entitled to achieve shoul In the main, be obtained by on adjustment of the surcharge rather tha by embarking upon an extensi programme of tariff adjustments suitable to present-day conditions land likely to lead to misunderstand jing. On the other hand, a good ease had, in his opinion, been macte for the institution of meter rents, a common practice among gas organ-lations, which will have the effect ofgflistributing the cost of this form of necessary equipment between the various classes of consumers.
Accordingly the Treasurer and Ca troller recommended to the Public UUilities Committee that the Com pony's established need for relief should be met by raising the existing surcharge of 15 per cent. to a figure hot exceeding 20 per cent. and by the introduction of a meter rental according to the scale submitted by the Company, such increased surcharge and the meter rents to be effective from August 1, 1938.
For the average domestic consumer the meter rent will vary between 50 and 80 cents. per mensem. For the larger consumer the rent will scale up to $17 per mensem.
was also recommended that these Increases should continue force until the end of the year, when the whole question would be re-examined.
was decided that the actual amount of the surcharge should be agreed by the Treasurer and Controller with the officials of the French Municipal Council, under whose franchise the Company also operates, upon the completion of their: investigations.
The Public Utilities Committee proved the Treasurer and Controller's Proposals, the matter to be subject to review at any time in the event lof any considerable upward or downward movement in exchange or in the price of coal. The Council has endorsed the recommendation of the Public Utilities Committee.
The surcharge has been fixed at 18 per cent. led back by Japanese soldiers when they turned out to fight the fire, lorry' loads of bluejackets taking their place lat the scene of the conflagration.
Text read from the printed page and cleaned; old type leaves the occasional error.