4

1

3:3

a certain standard and it is not every kind of calico

or cloth that they will print or dye. They send a repre-

sentative periodically to China to ascertain local demands

for patterns.

5. As regards Mr. Girardet's statement that Messrs

Melchers had been doing business in goods supplied by the

Calice Printers Association on a basis of one per cent

profit only, I have to point out that Mr. Sayer's invest-

igations seem to show that a much higher profit was

obtained on imports.

6.

I enclose also a report by Mr. Sayer on the books

of Messrs Arnhold, Karberg and Company which is not

without interest. I would draw your Excellency's atten-

tion to the last paragraph of this report.

I have, etc.,

(signed)

F. H. MAY.

Governor, etc.

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