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50% depreciation against works. A considerable quantity of this plant I consider will be taken over by Open Line viz. Some of the Lancashire Boilers and Dynamos for the workshops, the Loco Crane and Broad Gauge Tank Locos for the goods yard as well as some of the 2 feet gauge line for the interior of the goods
sheds.
I do not foresee much difficulty in
getting rid of the greater of the plant left over which will be
a great saving in capital expenditure.
General Charges. Under this heading is included
general administration charges in Hongkong as well as Consult-
ing Engineers' Expenses and Crown Agents' fees &c.
After the bad typhoon of September
18th., 1906, Sir Matthew Nathan told me to open a separate
Minor Head for "Typhoon Damages". I understood at the time that expenses incurred in repairing the damage done by this
but typhoon would not come out of the Capital of the Railway,
now I have been given to understand that this is not the case, so the amount now charged against X.a.7 viz. $26,715.36 should be added to the capital cost. I am not keeping a Minor Head in the revised estimate as I am certain the 10% contingencies will
cover this amount.
(Sa.) G. W. Eves,
Chief Resident Engr.
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