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31. An historical feature regarding goods traffic was that for the first time in the history of the railway, cargo was con- veyed by rail between Hong Kong and Shanghai without the necessity of transhipment at any point en route. The first loaded through goods train operating via Chu Chow in Hunan Province arrived in Kowloon on March 12th 1950. From a rail- way operating point of view, there are no reasons why this traffic should not develop under peaceful conditions provided competitive rates with sea and river transport are charged.

OPERATING.

32. The main operating problems during the year arose out of the large increase in passenger traffic, especially after the through services were suspended. An endeavour was then made to run trains at such times as to afford every convenience to through passengers by connecting with Chinese Section services. Unfortunately, schedules were altered at frequent intervals without prior notice, and there were also delays owing to air raids. Such events made combined working difficult and delay often occurred to British Section trains and passengers. New Territories residents also suffered considerable inconvenience from delays and overcrowding, as accommodation on trains at intermediate stations was frequently difficult to obtain.

33. The overcrowding also made efficient train inspection and collection of tickets almost impossible at times, and the problem was still further accentuated after October 14th as the absence of fencing at Lowu led to an increasing number of pas.. sengers attempting to travel without payment of fares. In consequence excess fares amounted to $147,805 against $93,557 for the previous year, $113,509 being collected in the last six months of the year.

34. When through running was in operation, Lowu was only used for stabling rolling stock and engines between train times, and for housing British Section traffic and locomotive staff working at Shum Chun. Since the cessation of through run- ning, 1,462,579 passengers and 72,546 tons of goods have passed through this station, and revenue

revenue collected amounting to $2,433,721.00. Booking of passengers and goods had to be carried out in inadequate and improvised accommodation, and all goods traffic not forwarded under the auspices of one of the Chinese Government organizations needed to be transhipped. Shunting operations were performed in a confined space, often at the same time as several hundred people either entering or leaving the Colony were being examined by Police, Revenue and

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