Shanghai, June 28.
Shanghai Electric Construction Ca., Ltd., recently requested approval by the Shang Municipal Council of a revision of fare charges. The Company's fares were last increased in June 1933, and upon conversion in terms of the new coinage these fares averaged in March 1937, 2.67 cents first class and 1.84 cents third class per mile.
"The maximum charges provided for by agreement between the Company and the Council are ten cents per mile first class and five cents per mile third class.
The Company intimated that revision had been rendered necessary by the heavy increase in operating costs due to the serious depreciation in the value of the Chinese dollar which had been prevalent for the twelve months to the end of April last, when the application was made. The Company had refrained fr making any adjustment in its fare charges up to that time but regretted the step could no longer be delayed.
The matter was considered by the Public "Ulilitles Committee on May 19 when considerable discussion took place. Some members were of the view that consideration should be ttiven not so much to the increase in operating costs or the fact that the fares proposed are within the max mum permitted, but to whether the financial position of the Company Fenders an increase necessary. Other members expressed the opinion that the proposed average fares, involving fan increase of approximately 16.6 per cent, were reasonable and observed that "the Company appeared to have the right under the franchise dated October 10, 1905, to increase fares up to the maximum permitted without obtaining the Couneit's permission.
was agreed to obtain a legal opi-union on this latter point and, subject thereto, the Committee by a majority recommended that the proposed increase on fare charges be approved.
Text read from the printed page and cleaned; old type leaves the occasional error.