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consider the Chinese Section of the line and the probable clauses in the future agreement as regards through traffic and the division of receipts from the same,
10. The relative mileages of the two sections are in the ratio of about 5 for the Chinese Section to 1 for the British Section, but the capital cost is in the ratio of 2 for the Chinese Section to 1 for the British Section.
11. The terminal arrangements at Kowloon are not altogether accountable for this difference in the ratios of capital cost and mileage, but the unusual heavy cost of the proposed terminal must be taken into account and also it must be considered how far the Railway Administration can be reasonably asked to go in the provision of Godowns &c. for the reception of goods.
12. One of the first axioms in Railway working is that a Railway Company is not a ware-housing company.
13. When goods arrive at their destination the Railway Company is supposed to provide storage accommodation only for a very short time probably only for 2 days after which a comparatively heavy demurrage is charged. This is not suitable for goods which are intended for transport by ocean going steamers. The arrival of steamers in port may be delayed by causes over which the shippers have no control and demurrage charges on goods stored in Railway goods sheds would mount up enormously. At the same time merchants cannot keep their goods up country ready to send down at the last minute when the ship is signalled. Heavy demurrage charges would therefore drive goods traffic for shipment by sea away from the Railway.
14. In order to get any of the goods traffic from and to the interior and to compete with the junks it will be necessary to give as many facilities as possible for unloading and loading up cargo. In the near future, I think that the present