}
352
of
the construction of the line". This rate of interest had no connection with the eventual charges to be laid upon this small line in the shape of interest or sinking fund, but when laying before you a statement of the probabilities (or otherwise) of the scheme proving to be remunerative I considered it was pro- -per to put on the debit side of the account the full amour interest at the rate usually assumed for current local trans- -actions, and which the money if otherwise invested could have earned. Viewed, however, from the standpoint taken in your Despatch the position is that the receipts of this light line will be a direct credit to Revenue subject to a pro rata deduction for interest and sinking fund on the amount paid by the construction account of the main Kowloon-Canton Railway (viz.:- $26,107) as are chargeable against Revenue on account of the Public Debt incurred for the Railway. On the other hand for the purposes of assessing the Military Contribution payable on the Revenue earned by this light line interest at the rate of 4 per centum on the gross capital cost (which will of course include the cost of the road-way) will be deducted from its gross receipts.
5.
Construction trains are now running over
5 out of the total length of 7 miles, and I hope that the entire line will be completed before the end of the year. Some little delay has been caused by the "Fung-shiu" superstitions of the villagers around Shataukok, and the consequent necessity of repeated new alignments to avoid graves and other sacred spots. I am glad, however, to report that the eventual upshot has been a gain to the alignment.
I have the honour to be, Sir,
Your most obedient,
humble servant,
Hinga
ngar
Governor,&c..
!