By Lake Jitsu-Getsu-Tan

The Spanish, 300 years ago, called it Formosa. But to Chinese the long, narrow, tea-green island always was Taiwan. This name was kept as the island's official title after Japan acquired it in 1895 by momentously drubbing old China with her new army. And when in 1919 the island's largest power companies merged the consolidation was called Taiwan Electric Power Co., Ltd.

Taiwan Electric Power now furnishes 95%, of the island's electricity, operates eight hydro-electric and six steam power plants. Its gross operating revenues last year came to $4,242,000 against 1929'$ $4,005,000--about the same as for a U. S. city of 200,000 population, although Formosa's population is 4,000,000. Its property is valued at $29,000,000. One of the biggest shareholders in the company is the Imperial Japanese Government, which owns 36.7% of the stock and is aggressively developing the island's industries. Hence when last week Taiwan sold $22,800,000 worth of bonds each one bore the guaranty of the Japanese Government that interest would be paid, maturity met.

The $22,800,000 will go where Taiwan has already placed $14,000,000--to mountain-nestled Lake Jitsu-Getsu-Tan (Lake of the Moon and the Sun). There a large power plant is being built which will have a maximum capacity of 100,000-k.w. hours. Taiwan's output last year came to 155,000,000-k.w. hours.

The bonds were sold in Manhattan where they formed the first notable foreign financing of almost a year, were considered as forerunners of similar issues. Handling the issue was J. P. Morgan & Co., traditionally bankers for Japan. Because of the impressive guaranty (Japan has an unblemished credit record) and the price (to yield 5.9%,) investors gobbled up the issue in one day; it was immediately quoted at a premium.

Although much has been done to industrialize Formosa, it is still predominantly agricultural, exports much rice, sugar, and tea (Oolong type especially). It is also famed for its camphor production, its headhunters. These live in the mountains, have made sorties against their civilized neighbors as recently as last April 1. But now a long electrified wire fence keeps Formosa's honest millions safe from the unruly tribes.

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