THE HONG KONG GOVERNMENT GAZETTE, APRIL 5, 1940.
(4) The cost of making provision for the maintenance. of an efficient service shall not include any sums expended on works where such expenditure is in the nature of capital outlay.
(5) Notwithstanding that in any year or other accounting period no allowance or a less allowance than that heroinbefore authorized shall have been made for depreciation or "appro- priation to Reserve, it shall not be lawful for the Company to make in any succeeding year or accounting period any greater allowance for those purposes than that hereinbefore authorized.
5. Section 36 of the Telephone Ordinance, 1925, is Substitution repealed and the following section is substituted therefor
36(1) If after deducting the amount (if any) payable to the Government, by way of taxation on profits, from the net annual profits of the Company, as defined in section 35, and commencing with the financial year 1939, there shall remain a sum greater than 12 per cent. on the paid-up capital for the time being of the Company then there shall be paid to the Accountant-General, as an additional royalty to the royalty laid down in section 7, one half of the surplus of such remaining sum over and above the amount of such 12 per cent.
(2) Any dispute which may arise under section 35 as to the amount of the net annual profits of the Company shall be referred to arbitration under the provisions of section 49.
6. Section 37 of the Telephone Ordinance, 1925, as amended by section 8 of the Telephone Amendment Ordin- ance, 1930, is further amended by the repeal of the third paragraph thereof.
for section 36 of Ordinance No. 9 of
1925.
Payment to
Government of additional
royalty.
Amendment of section 37 No. 9 of
of Ordinance
1925, as amended by section 8 of Ordinance No. 9 of 1930.
7. Section 38 of the Telephone Ordinance, 1925, is Substitution repealed and the following section is substituted therefor-
for section 38 of Ordin- ance No. 9 of 1925.
a
Provision fervice for Government
38. The Company shall provide the Government, free of charge, with a telephone service for Government purposes up to 500 lines and shall arrange for the necessary branch exchange to be constructed in a place approved by the purposes. Government as sufficiently protected from possible air raid damage. Any telephones or connexions in excess of 500 lines will be paid for by the Government at standard rates of subscription in accordance with the provisions of section 34 less a discount of twenty-five per cent.
8. Section 39 of the Telephone Ordinance, 1925, is Substitution repealed and the following section is substituted therefor
for section 39 of Ordin- ance No. 9 of 1925.
and allow
39.--(1) The Company shall keep true and particular Company accounts of and concerning all matters connected with the to keep concession and shall, on the first day of March in every year inspection deliver to the Accountant-General a statement in writing of accounts. showing the number of subscribers connected with each exchange and the number of persons who have requested
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