23-
working days, the Chinese would pay us as hire $3 x 8 x 250 = $6,000 per annum for the use of our Stock running 180 x 250
45,000 train miles or 45,000 x 8 = 360,000 vehicle miles and we would have to pay Chinese $3 x 32 x 250 = $24,000 for 44 x 250 x 4 ■ 44,000 train er 44,000 x 8☐ 352,000 vehicle miles. The $6,000 and $24,000 are not a profit to the respective sections but would be absorbed by expenditure on the wear and tear of the rolling stock.
Now please refer to my note of the 26th. August and on page 3 you will find that on ■ Running Power Agreement, I assumed the total income of the British Section after full development of traffic, would be about $325,000 and this would be practically net earning because we would not have to incur any very great extra expense by granting Running Powers. Add to this amount one-quarter which is assumed to have been retained by Chinese as their share we would get the gross assumed receipts over the British Section at $406,250.
Now assume such an agreement as is proposed the Wai Wu Pu and take 50 per cent (a low figure) from $406,250 on account of Working Expenses we would get $208,125 as the net British Earnings from which we would have to deduct $24,000 - $6,000 $18,000, the balance due to the Chinese
ation for hire of Stock. In short by Running Powers assuming
same figures in each case we would earn under Running Power Scheme $325,000 more or less and by the scheme now pro- -posed $185,125 only.
It might be urged that such a statement does not show that the Chinese would gain by claiming Running Powers. As a fact the Chinese Section would gain because their Gross Earnings would amount to $81,250
of
325,000 # 80% British share.
+ 81,250 • 20% of $408.
406,250 51,250