\lOn Gas Next Month Shanghai, Jan, 14. 106. of the Shanghi Municipal Couk: cil's approval of a temporary surcharge of 15 per cent. on the price of gas which was increased in August Ho 18. per cent In November, 1938, the Shanghat Gas Ca, Lid. submitted statements showing' that the 18 per cent, surcharge was insuflcient to cover operating expenses and allow of a Feasonable return on capital, and rejquesied the Council's approval for the Application of an increased. monthly surcharge in accordance with a slid-scale based on the average sterling value of the Chinese Standard dollar, The Company's accounts and esti mates for the year 1939 were subject to thorough examination by the Trea-Surer and Controller, who found the request for an increase in the 1 per cent, surcharge was ustifed on Agcount of the higher cost of coal and materials necessary for the operation of the business and a high cost_of living bonus granted to the staff. The Treasurer and Controller, however, was not in favour of the suggested introduction of a variable surcharge based on exchange, and. considered that the ease could best be met by fan inereage in the temporary sur charge of 18 per cent. to 23 per cent, for a period of three months.
The Company's application and the Treasurer and Controller's views were fully considered by the Public Util Hes Committee in December, who recommended approval of an increase inthe temporary surcharge on gas sales from 18 per cent. 23 per cent, in respect of all metres rend on oF after February 1, 1999, for a period to April $0, 1989, and continuation of the surcharge of 18 per cent, until the Increased surcharge becomes fective, This recommendation was endorsed bby the Council, but was not accepted immediately by the Company who required further time to consider the proposal, The Company has now accepted the proposal, but since it is consider ed that one month's notice should be given to consumers of any increase in the price of gas, the increased surcharge of 23 Der cent. will not be: feome. effective until February 15, 1930, with continuation of the existing surcharge of 18 per cent, until thas date, The position will be reviewed prior to April 30 when all relevant matters will be taken into considera tion,
Text read from the printed page and cleaned; old type leaves the occasional error.