Sir,--With reference to the statement made by counsel for the Savoy Theatre and Operas (Limited) in support of a petition for the reduction of the company's capital on the ground (inter alia) that the acting rights in the Savoy operas had declined in value from £45,000 to £7,700, I shall be glad if you will allow me to explain that when the company was formed Mr. D'Oyly Carte's interest in the operas had nearly eight years to run. As all rights revert to Sir Arthur Sullivan's representative and myself in May, 1905, the apparent depreciation in the value of this asset is, I think, considerably less than might have been expected.

Your obedient servant,