t
.7
Y 1000 PY.
oldalon d
(To accompany V.)
Memorandum on Proposed Working Agreement with
British Section.
551
ISTO. .bts ond le 1odjel Toy od yiqer al
„be Inteɛ root yhazria nuk. seiqioning and to derit ed Jand ston
did iv oniinok elçivning beonea oid alt331 BA
03 of dienoo twoy ston 1,xooda gallon to .oiel:ong and -Bi.: 10 moisuinoo on es van stond dad os alisteb quzi tu..Jwt 100 (J0DT100 Vidoniusų si waiv quoï .90iyoung ni gribonjer -ILA and AİRE 2018 Sidɛle yese na exuosa of plena, si Jooįdo
ad I
Inci 18 Juor iw don ud oído ex ya. afvioitto yav-
-
To dad' dobr bonuimui eu ou exotorond
ak od kroj9T ASİY
t
nitongeer slatoning bull. ow ejst vini mo vt das mit I Ped 1 to molzivi. eldejiupe and .ajneo CA si nione vela perio vid nel Leivose woy no te amo ed qanoilue and besore con tuolla oft me a poté noĩ neden out
.
.00 1
mi baokbon N iv.ne codes and dont le uol
.010 non er toonde os AK KIBBOJ0 and 1. 1 uðng 05 of 18010 † no itong Jan of almopon beijdea ad suoĴATU.J Ivoria neder 2.
.Hoidot ?100g to dooo Inviqao and
@gismo but weder (ecules two od pribroup). 09 ni nulome 12 of nojieb 2011 sands .mà et sittute dzwonnd no EJAI WOY,8,14lo nila na moldayetq ml .afil Yoq dueo I no admOD Aзne #TOM vú von Muore noolteli od nudomad? 11 sesle „bro yot elody ens T01* ad puede ah7) .eli. req etrus 06 of Bdneo Ca .("noivost i ricita ne savo suradnikE
bwaogong in to nclu:lvol o nu enol mm I gridan od veiv o ú. 12 neljatahiavo nuo、 rol,dei! :
plyn a woud an Jel or June
1.
Division of Fares.
The British Section claim that owing to physical dif-
-ficulties their line was more expensive to construct than the
Chinese Section, and it was admitted by His Excellency Liang Shih-yi that it is right and proper that this fact should be allowed for in settling the rates for through passenger and
goods traffic.
2.
It is not right, however, to assume that the ratio of the rates per mile of the two Sections should be in the ratio of their respective capital costs, for that would be assuming that their gross earnings should theoretically be in proportion to the Capital Costs whereas it is the nett earnings that should bear
this relation.
For example, two Railways ("A" & "B"), each 10 miles long, cost respectively $100,000 and $200,000. "B" claims double the passengers fares per mile as compared with "A". The volume
of traffic is the same on both lines with the result say that *B*" obtains gross earnings to the amount of £20,000 in one year whereas "A's gross earnings are only $10,000. But it may be assumed that the working expenses are the same for both lines, let us say $7,000. Then "A" has $3,000 nett profit against "B's" $13,000 or 3% per annum for *A* and 64% per annum for "B" The theoretical rate per mile "B" is entitled to is one that will produce twice "A's" nett earnings, viz.:- 86,000 which would mean gross earnings of $13,000, or only 30%her higher
fares than*A*.
Ley IIM „polvouleı a
form:-
These deductions are shown in statement
num- İnú osrij
and to moldood erenidu .Ių.l nd lo jak „Jei .yIA .0-.N
(.11.6.08) noo.
.0 INOU
(1).