does not make apparent the equitableness of the 90 cent and 43 cent 325
fares.
In view of your above example you seem to have
accepted my principle with certain modifications as mentioned by me in the early part of this letter.
letter
Dealing with your figures given on page 3 of your figures based on the estimation of 3,000 throu, h passengers
a day for earnings and on actual or estimated openlituro of the British Section for the year of £132,000. I camot admit as a factor in the argument your contention that Las fixed charges are practical- -ly the same for a line 22 miles or 21 váles in length as one for 90 miles, in other words that our supervision amounts to only the same as that of the British Section, nor can I admit that such is at all
likely to be the case.
Fith reference to the returna of the reking
dy:dicate in respect of the Teokon-Ching-itus Reiley the working expenses of that lailway given in that returns could not bet teken as an example for this Section for the reasons that the capital coste of ut Railway are inexpensive, that teir rol in stocks are not at all complete, and bet ming to tae losses incurred in successive yours their supervision expenser have boen minisized. Furthermore tare is no Agineer-in-Chief for the supervision of the Railway and the panement staff of the whole line ETKİK consist of a pansying Director, one sauropean General lager, ono suropean accountant and one Agineer for Why and Works and their respective onlaries do not amount to alf of the selcries of the staff of this Brilway.
The fired charges f this drilvay will in all probability he the name as that of the Sha-hai-Henking Railway, therefore my calculation of the working expenses of this muilway at 70% on the cross earnings is the proper estimation.
݃*********t. I presume the British Section's "fixed chargos" will still be fixed when the line is opened for throach traffic, in which cese part will be apportimable to through traffic expenses and part to local traffic expenses and therefore
of course. with this devolop- if the through traffic develops and,
-ment