7
26. An interesting fact revealed by these figures is that whilst passenger carryings rose by 35.70%, passenger revenue only increased by 3.94%. There were several reasons for this. Prior to the suspension of through running, many through passengers were carried on non-stop trains over the British Section for which a surcharge of 20% on ordinary fares was levied. After through running was suspended these passengers travelled on stopping trains serving the local population, in- sufficient rolling stock and the uncertainty of train timings over the Chinese Section preventing the operation of more than one daily fast train to the frontier for the exclusive use of through passengers. There was also a large increase in the number of through passengers booking by local trains to and from Shum Chun prior to the suspension. These passengers, many of whom were travelling traders and smugglers took advantage of the lack of control on the Chinese Section to travel without payment of fares. Even if caught, the risk was worth while as the rapid depreciation in the value of Chinese currency compared with the Hong Kong dollar resulted in a considerable advantage being obtained by paying their fares in the former currency. Other factors contributing to a fall in the average revenue per pas- senger journey were the considerable increase in travelling traders making the short journey between New Territories stations, especially Sheung Shui and the frontier, and military personnel who were carried at special concession rates of approximately a half-penny a mile.
27. The rise in (other) local bookings from 884,251 to 1,812,181 is attributable to the growth in population, numerous picnic parties to the New Territories especially at week-ends, and to a lesser degree, the conveyance of troops.
28. Prior to October, the uncertain political situation in China, an unstable and inflationary currency, and stringent restrictions imposed by the Chinese Government on imports and exports affected the movement of merchandise. After October there was, however, a rise of 30.20% in tonnage carried with a revenue increase of no less than 144.20% above the figure for the previous year. The rise in revenue was entirely due to a greater proportion of traffic conveyed being cargo in the classifications of which high freight rates were applicable; whereas the majority of goods traffic invoiced during the previous year were materials for the Chinese Ministry of Com- munications and the Canton-Hankow Railway which were carried at specially low concession rates to assist rehabilitation.
29. The rise in tonnage was brought about by the Nationalist blockade of the Pearl River and coastal ports. This caused a diversion to the railway of considerable traffic which normally would have travelled by water, 69.56% of the tonnage carried being after the blockade commenced in October, 1949. The increase in (other) local tonnage was mainly due to military traffic.
30. As in the case of passenger traffic, and for the same reason, the statistics given below show an increase in local goods and a decrease in through goods compared with the previous year: