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average number of passengers by the 8 o'clock train was, however,

so small that it was desirable to find some cheaper means of

dealing with this traffic. After correspondence with the

Consulting Engineers it was decided to obtain a light motor car

costing about 2900 capable of carrying up to 20 persons. Such a

car could be run after the ordinary train service had ceased, and

it would not be necessary to keep up the station staff, lights,

&c. as the conductor would issue tickets on the car and no points

would require to be moved when once on the main line. There

would be no loss as regards standing in stem as at present when an engine has to be kept with steam up all day for the 8 p..

train. From information supplied by the Consulting Engineers,

the British Westinghouse Electric Co. state that the cost of operating the Great Central Car (seating capacity 50 and extra standing room) including fuel, and wages of driver and guard, is

4d. a mile. I should be lad, therefore, if you would approve

of this expenditure, which is necessary for the efficient and economical running of the railway. You will observe that the expenditure on the exposed portion of the railway between Shatin and Taipo, which was estimated in my despatch No.96 of the 25th March last at £218,915 has been reduced after a careful investi¿- stion by the Director of Public Works and the Engineer of the

Railway to $155,551.

4.

I do not anticipate that any other large items of expenditure on Capital Account will be necessary until it becomes necessary to double the line in whole or in part. I submit the statement for your approval.

I have the honour to be,

Sir,

Your most obedient,

huble servant,

Homag

Governor,&c.

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