means of a loan, there shall be deducted annually

from the gross receipts of such railways, telephones

or other undertakings during a period of fifty years

a sum equal to 4 per cent. on the capital expendi

ture incurred in the establishment of such railways,

telephones or other undertakings, and the percentage

shall be struck on the net receipts, if any, after

deducting the said sum of four per cent.

4.

In the first instance, the said per-

centage shall be calculated on the estimated

revenue of the year and shall be paid at that

rate, subject, however, to revision and adjustment

in the manner following:-

(1) after the close of any year for which

payment has been made, when the actual revenue has

been ascertained, if there proves to have been an

excess of receipts over the estimate, a further

payment of twenty per cent. of such excess receipts

shall be made; and

(2) if there proves to have been a deficiency

of receipts compared with the estimate, a deduction

equivalent to twenty per cent. of such deficiency

shall be made from the next payment due for the

defence contribution.

5. The said percentage shall be deemed to be

a fixed contribution payable by the Colony in full

return for the annual cost of the Imperial garrison,

including all capital expenditure required for

military lands and buildings, and the cost of

maintenance of all military works and buildings,

and the cost of lodgings in lieu of barracks, and

all

25

Mode of calculating perfentage.

Consideration for payment of percent- age

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