c.c. 26504
MEMO ON TRAFFIC WHICH MAY BE EXPECTED
ON THE BRITISH SECTION
OF
KOWLOON CANTON RAILWAY
-:II:-
REG 25 JUL 07
626
*
The passenger traffic between Hong Kong and Canton by steamer is at present about 2250 each way per day. The rates at which these are carried are very small, the lowest rate for 3rd class passengers at present is 35 cents for the trip; this rate rises to 50 or 60 cents on some steamers, depending on whether the boat is a day or night one. Those running at night being the cheaper.
It would be impossible for the Railway to run passengers at rates under 60 cents for the trip, so some inducement must be held out in order to entice these passengers, who are by far the largest class.
Pace is the only thing which may draw them to the Railway, and probably some may be induced to travel by rail on this account. Sir Matthew Nathan has put it forward that the receipts should be divided in proportion to the capital cost of the British and Chinese Sections respectively, which is in the ratio of three for the British Section and five for the Chinese; the mileage being in the ratio about one to five.
This system of division of earnings would be absolutely impossible for this class of passenger, and I will take the following example to show it. Supposing a coolie passenger were charged 80 cents for a journey between Hong Kong and Canton.
If this 80 cents were divided in the ratio of 3 to 5, the British Section would receive 30 cents for carrying the coolie 22 miles, while the Chinese Section would get only 50 cents for 100 miles, or only ... cent per mile, which is the actual cost, in my opinion, of carrying a 3rd class passenger one mile.
The Chinese Section would get no profit at all, and I am therefore leaving such a division of profits out of the question entirely.