312
adjustment of rates a fair profit can be made by
dividing up the gross earnings of each class by mileage without going to the extreme of making it a sine qua non' that the earnings be divided in the ratio
of the capital cost.
The cost of running this section will be expensive
and I do not want to take too sanguine a view now
when I am estimating the profits.
Sir Matthew Nathan has made a note that an
andeavour should be made to get the Chinese to agree
to rin both sections as one line under a joint board
of management. This of course would he the best plan
under ordinary circunstances and every effort must
he put forward to try and get such a scheme agreed
upon by the Chinese.
the
It will be necessary to have a Traffic Manager,
a Chief Engineer and an Auditor and if the pay of
these officers and their office establishment can
he divided up over 120 miles instead of over 20,
working expenses per mile would be greatly reduced.
All the same it is necessary to look at it from a
Chinese point of view. It would pay the Chinese much
better and suit the general feeling in the country
more if the Chinese section of the Kowloon Canton
Railway were worked as a branch of the Canton Hankow
Railway.
This is all the more likely and admisschle as
the two lines will probably be joined at Canton so
as to allow of through traffic between Hong Kong
and Hankow.
This is all the more likely and aduiocable o
+1
You
eas