7. The diversion of Gascoigne and Chatham Roads which was opened to the public at the end of last year was handed over to the Public Works Department on the 1st June, when the Contractors' term of maintenance ended.
8. The telephone poles, lines and instruments have been well maintained during the year and the work of supervision and maintenance will be transferred in 1912 to the Public Works Department, the Railway being debited with a proportion of the upkeep while the Public Works Department's telephones which run parallel to the Railway will be transferred to Railway poles to effect a further economy.
9. All Stations and Buildings remain the same as when last reported on. Lowu Station was closed on October 5th when the Chinese Section was opened and through traffic commenced with China and Canton. The station now in use is Sham Chun just over the border and in Chinese Territory where the Chinese Section have erected a wooden Station Building on the western platform for the use of the British Section. The Lowu Station loop is used for shunting and making up trains and it is intended to maintain it as a Supplementary Station for Military purposes or emergencies.
10. The site of the Permanent Station at Kowloon has been under discussion during the year and various proposals have been submitted. The question being one of great importance both to the Colony and the Railway has received very careful consideration and it is hoped that the matter will be settled in the near future and that the work of laying out the yard and building the Station will be commenced during 1912.
Accounts-Construction.
11. At the end of 1910, in order to complete Construction as then decided upon, a sum of $544,501.59 was required. A portion of the amount, viz., $132,000 was expected to be obtained by sales of buildings, construction plant, etc., and the balance $412,501.59 was voted by the Council. Of this amount only $137,075.01 has been expended during the year, $100,087.37 on Main Line Account and $36,987.64 on the Fanling Branch Construction as shown under the various heads in the table of expenditure herein. It was anticipated that expenditure would be incurred on the Terminus at Kowloon also on the purchase of a Third Locomotive and of eight coaches but as events have proved this expenditure will not be incurred till next year.
Revenue and Expenditure.
12. The general results of the past year are set forth in the following tables, but no comparison in respect of gross figures of