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Franxay Company do not intend to lay down any insulated conductors for their return currents.

Your Petitioners, since they established in Hong Kong, have always worked on what is known as the Single Line System using earth connections for their return currents and this system has hitherto been found to be perfectly successful and to have met the requirements of the Company's subscribers in Hong Kong where the lines are too short for any appreciable induction to take place.

5.

Should the Electric Tramway now to be introduced work upon the Single Trolley System it is only reasonable to suppose that the same results will follow as regards damage to the Telephone Exchange system as have happened elsewhere and to clearly demonstrate what these would be your Petitioners would respectfully refer Your Excellency to the report, made by Mr. Macrory Q.C. in the case of the National Telephone Company Limited v Baker reported in Law Reports 2 Chancery Division 1893 p. 186.

6.

In the case referred to Mr. Macrory, who was directed by the Court with the consent of both parties to proceed to enquire and experiment, in the presence of representatives from each side, and to report to the Court, how far, if at all, the National Telephone Company's system had been interfered with by the electric tramway, after detailing the experiments by means of which he had enabled to form a decided and accurate judgment, reported as follows:

"That the Plaintiff's telephone system is seriously interfered

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