"Tt is thought that this factor. combined with unusual business activity and acknowledged overcrowd-Ing which may not be permanent, may have accounted for a substantial part of the demand for service. Moreover. analysis of the service applications indicated that a large number may have originated with Individuals and businesses which did not subscribe to telephone service when charges bore amore normal relation to general price levels in the area. In. view of the foregoing and the ising investment occasioned by the expansion of the system, the company has deemed it necessary to continue a policy of more than usual conservatism in preparing its expan+ sion estimates.
Developments in the European situation made it impossible for the manufacturers to effect delivery of all the equipment on order. hence the programme of: plant additions originally planned for 1940 had in part to be abandoned and a revised programme, based on the utilization And. reallocation of equipment. received, had to be substituted."
The Shanghai Waterworks Co., Ltd who quantity of water pumped by the company, during the year was 19.130,000.600 gallons, or 2.36 per cent. more than in 1939, "The quality of water has been in accordance with the standard agreed between the Council and the Company. In the course of the year 24998 chemical and physical, and 4201 bacteriological processes, and 8 further 1A12 samples drawn from points on the Distribution system were examined in the Company's laboratories. Tu addition 379 samples were independently examined by the Health: Department of the Shanghai
Text read from the printed page and cleaned; old type leaves the occasional error.