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day, the slip was cleared, and later made safe without interruption of traffic.
7. Maintenance has been kept up to a good standard. It was found necessary to change a few rails in wet places of the Beacon Hill tunnel owing to excessive wear, the worn rails will, however, be laid in sidings.
8. At Taipo Market, where there is a loop, two fixed signals have been installed, connected by rodding with the switches which are protected by point locks.
9. On the Fanling Branch Line several hundred sleepers have been renewed with condemned Main Line sleepers cut in half, and a 12 span wooden bridge has been replaced by one of steel joists from old construction material.
10. It is a matter of regret that I am again unable to report that through traffic has been maintained throughout the year with Canton. Internal troubles in the Kwong Tung province are responsible for this. Fighting occurred at Nam Kong station at the end of April and spread to Shek Lung. On June 15th, No. 3 down express was wrecked by robbers removing two lengths of rails at a point between Nam Kong and Sun Tong on the Chinese Section. An American missionary and one Chinese were killed and 13 Chinese injured, the line at the same point was again damaged on July 23rd by revolutionaries and the telegraph wires cut. From that date traffic was completely disorganised between Shek Lung and Canton, but a service of trains between Hongkong and Shek Lung was continued to August 14th when fighting began in the neighbourhood of Shum Chun, which necessitated the cancelling of all but local trains which were run to Lowu from the 15th to 19th. On the 20th it was found possible to run trains to Shek Lung, but on the 25th fighting again took place at Wang Lik and the through train service had to be suspended until the 29th, and on the 30th a curtailed through train service was resumed, the up and down mid-day express trains being cancelled.
11. Notwithstanding the frequent suspension of the train service the receipts shew an increase when compared with the previous year.
12. In February, the tramway system was adopted on the Fanling Branch Line, seven new halts were made and a two cent fare charged between each. This has so far proved a success and seems to be appreciated as the earnings of the line shew an increase of $3,923.17 over the previous year, the number of passengers carried being 67,608 as against 47,928 in 1915.
13. One first class restaurant car was completed by the Hong-kong and Whampoa Dock Company and placed in service during April, but, owing to late delivery from England of the fittings, the work on the first and second class composite carriage had to be suspended for several months. These fittings have now arrived and the coach will be completed and available for service early in 1917.