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118

The recurrent expenditure on each launch is

estimated by Mr. Beckwith as follows:-

Tages.

.81,100 per annum.

Coal....

7,200

Repairs...

1,000

Licences, &c.

100

Total.....

.89,300 per launch per annum.

Add wharfage as above.

74,400 for eight launches.

7,330

881,770

Yearly takings...... Expenditure.

.$189,216

Balance.

81,770 .8107,446

which is available to pay interest, insurance, depreciation and management charges on a capital which (including paid up premia on wharves, and provision for spare boats at the same average value) cannot exceed $150,000. Allowing for the looseness of this rough estimate in which everything has been made unfavour- -able to the profit - the actual total profits of the business cannot be far short of 90 to 100%.

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5. It is clearly desirable that this ring should be broken, as it is at best preventing desirable improvements in the ferry services; and I suggest that in view of the present value of the business, and still more in view of the probable growth of it, with the development of the Kowloon Peninsula, the Government should take the matter in hand: by way of establishing and recognising the monopoly, erecting the necessary harves and letting the whole rights to tender for a term of years

under sufficient any ten, or the average life of a launch conditions and regulations to secure the safety and convenience of the public. There being as yet no license required to run a ferry as such every launch omer can ferry as many people as his launch is licensed to carry, provided he has private wharves:

the

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