Shanghai, Apr. 6. explanation of the chief reasons behind the proposed increase in Municipal rates from 18 to 27 per cen! is given to Shanghai ratepayers in a letter which has been received by the "North-China Daily News" and which is written under the signatures of Sir Robert Calder Marshall, Chairman of the British Chamber of Commerce, Mr. H. G. W, Woodhead, Chairman of the China Association, and Mr. H. E. Arnhold, Chairman of the Bri Residents' Association, The letter makes reference to an education policy which costs the community more than $3,000,000 and to the strenuous opposition from the Chinese and Japanese communities who, by demanding increased educational grants, "have followed a policy of trying to eat their cake and have it at the same time." The huge cost of the Municipal Gaol, which together with educational grants, accounts for 70 per cent. of the 9 per cent. increase, is described, The letter concludes by asking all foreign members of the community to vote at the coming election and to give undivided support to the Council. [handed over to the local Chinese au-'The letter Is as follows:—{thorities and the schools were handed in' ylow of the agitation caused to the various nationalities residing in vy" the' proposed' increase the Settlement, so that the cost of Municipal rates from 18 t0 27 per cent. maintenance ceased to be a charge) itis advisable to consider the situation on the rates.
Alispassionately. For many years Municipal Expenditure has exceeded Small Economies avenue, and in the hope of remedy Comparatively small economies, ing this state of affairs an Beonomy such as abolition of the orchestra, will Committee was. appointed in. 1026. not meet the situation, his Committee sat for one year. Its But is the proposed increase in the Yeeonmendations Were In. mnanyrerales so serious a matter as to necespects, impractical and. in others ted sitate such drastic measures {o increased expenditure. A Salavies It only amounts to Commission. was set up in 1029, part $225 on monthly rentals of $ 25 Gt whove terms of Feference were—3 50 Or MN Party pale {0th Councils" stadt, with vestigate the, present salaries 3900 3100
Pit 18 {he abolition" of the present S10 S Savete Wibfraneas either in whee certainly' far less than most people and qt' a view to. recommending paying the above rates spend on ofinte and. comprehensive scales cinemas, dinners and other forms of pore entertainment. In England the highest Municipal rate is 182 per cent.
'That Committee sat for 12 months. exclusive of education, police, poor {ts recommendations. led 0 'a con: relief, ete, which are' provided for siderable increase in the Council's lout of other sources of taxation. The expenditure and had. for. reasons of average of all cities and boroughs economy to be revised in 1036, when '58 per cent, and such information as the" Couneit was erilieised by" the {s available indicates much higher Dbtle for the steps which were taken rates In other countries, Residents effect: these economies. "The only the Settlement who are being! Committees that have achieved sub-asked to pay 27 per cent, will be taxed Stantiat economies have been "the far less than' residents in other fall Internal committees which were cities in China, Japan and other set up by the Council in' 1990, arts of the world, and it is obvious twas only possible to continue {hat they have never realized how for all these years with an unbalanc-Uittle they have been taxed. During! a budget owing to the. sale in 1029 the present worldwide upheaval in-of the 'Electricity undertaking at a dividuals are everywhere submitting Rrure' which showed surplus of to heavy taxation, whereas in this forty" millions, after. providing. for International Settlement this comfepaymont of all the then outstanding paratively Low municipal rate is the debentures. This sale. was approved only form of taxation they have to by the ratepayers on the understand pay. {ng that this surplus would be applied {oN keo down Munlelpal rates," This!
Surplus resulted in the adoption 'The suggestion has veen made to fu' Eduention policy, which today reduce the Volunteers and to dis fests "the community "more than pense with the Russian Regiment. $2,000,000" annually. it eas obvious certain section of the Community' Teemany_ that. such an, Improrident have been pressing for this for ye method. of finance. would sooner Anybody closely associated with the Iter lead to. a very. considerable Cotnelt' knows. that a reduction in Increase in the rates the Volunteer Force would not be!
090) the "Chairman of the regarded favourably by a number of Coumell slated, nan address on the 'Treaty Powers who at present Sunleipal altairs, to the Members, of maintain troops in Shanghai. In fact The British Residents' "Association is no. secret that certain of these' that—Powers feel that more support should to the Volunteers.
order to balance the Xt, bud ligne {0 be inerensed from. 10 jussion Regiment undertakes {aS Suet, and "thatthe Tonge special duties, such as maintaining Bee cass' wie layed the: grea guards at Internment Camps, patrol volta have' to be. duties at the Municipal Pontoons, dispersal of riots, and on national celebrations participates in the or-'This was before the collapse in the: mary police and defense measures currency, in view of which an and therefore could not be dispensed crease int the rates up to 27 per cent. with without very materially increas was only to be expected, That it isnot Ing the Police Force. The per cay more ig due to the large economies cost of the Russian Regiment is con-effected by the Council in 1996, 1 siderably ess than that of the Forthe rates had been gradually feign and of the Japanese police ser-not only would thy cants, The necessity for the Rus-finer ease have been w sian Regiment has been proved in very great part of the $10,000,000 the various crises which occurred in surplus Still would have been avail 1927, 1992 and 1037. able for emergencie jerease the rates British System from the Chinese and Japanese communities, who have however from year {o' your demanded increased rants for "Education." In other words they have followed a policy of trying to eat their cake and have Wat" the "same time. The very restricted basis for obtaining revenue provided for in the Land Regulations: Indieates that the intention was provide only for ordinary administra five expenses and was not intended to provide for an elaborate education programme or for, the maintenance Of an_ enormous Chinese Gaol.
1929, without consulting the Cunell, the Treaty Powers deprived the Council of all the "Provisional Court" foes, whilst leaving the burden of maintaining the Gaol as a charge fon the Ratepayers. The upkeep of this Gud Is at present costing the Community over $3,500,000 per annum. This and the cost of education com prise over 70 per cent, of the proposed 9 per cent. increase in the rates fand cannot be eliminated unless the Gaol were closed and the prisoners At the time of the formation of the Settlement under Municipal control British interests predominated. That being so it was inevitable that the Municipal Administration was modelled upon the British system and that the Police Force and Volunteer Corps were built up along British lines, Tt is neither practical nor in the interests of the Community as a whole to attempt radical changes in a sys~ tem which has worked with marked success and efficiency over a long period of years. Obviously there is jint beyond which the inter~ nationalizing of these services cannot without seriously impairing their eMicieney. In later years large num-hers of people of other nationalities have flocked into the Settlement to enjoy its protection, but this should hot affect the equilibrium of the existing system of Municipal Government.
The Real Issue That is the real issue with which we are faced. Are we to maintain an adequately paid and efficient stair
Text read from the printed page and cleaned; old type leaves the occasional error.