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Enclosure

Note on Division of Profits.

Kowloon to Canton: 3rd. class fare 70 cents.

145

If X = 70 cents and Y = 22 miles, and the length

of the British Section is 22 miles and of the Chinese Section

89 miles then, according to the draft Working Agreement

4

x sq

Constructive Rate =

22

$x (22+Y) 22 (111+4)

ber mile. 70(22+22)

#

-cents per

22 (+22)

milé

3080/926 = 1.053 cents per mile.

Our charge for 22 miles is, therefore, cents 1.053 x 22 - 22.166

cents, 1.0. out of 70 cents the British Section gets 22.166

cents, while the Chinese Section gets 47.834. cents.

On the other hand, if the British Section takes two-fifths and

the Chinese three-fifths, the former will take 28 cents and the

latter 42 cents.

II.

Kowloon to Sheklung: 3rd. class fare $1.00.

Constructive Rate =

100 (22 +22) ZZ 70.54

therefore

2035

2.167 cont, fear mile.

Our chargo for 22 miles

cents, 1.0. out or 11.00 the British Section gets 47.674 conts,

while the Chinese section gets 52,326,cents.

is, shhungéreg cento 2.167 x 22 = 47.674

On the other hand, if the British Section takes half and the

Chinese Section the other half, each will get 50 eants.

It will be seen, therefore, that, in order to

leave a margin for a haggle, we asked yesterday

(a) for the run to Canton 5.834 cents

III.

for the run to chatoung code conta

more than asked for in the Working Agreo- -ment.

The matter may be làoked at from another point of

view, however. The actual mileages are as follows:-

Kowloon to Sham Chun - 22 miles (British Section). Sham Chun to Sheklung - 48.58 miles - 88.73 miles, say 89 Sheklung to Canton = 40.15 miles

miles (Chinese Section).

Then (a)

Canton to Kowloon 22/111

0.198

89/111

}

British share at even mileage. 0.90-2 - Chinese

do.

Twice

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