S &

The amount unexpended under General Staff was $1,062.80, and under Miscellaneous Expenses $100.00.

49. In view of closing the Fanling Branch Line, expenditure was cut down to the minimum. The savings under Other Charges were $3,344.55.

50. The Through and Joint Sectional Traffic was entirely suspended throughout the year, with the exception of one slow train up and one slow train down for 12 days in September.

The local passenger receipts amounted to $332,942.68, or $77,729.03 more than the previous year.

There is marked increase in the number of 3rd class bookings between British Section stations, while the 3rd class passengers leaving Lowu (Shum Chun) station exceed the number for 1923 by 25,840.

With the development of the areas served by the Railway, the number of local passengers is steadily increasing. In 1914, 362,266 were booked, while for the year under report, the number reached 1,177,234.

51. In view of the decision arrived at in 1920 that the Railway should discontinue its custom of debiting other departments for the transport of Government passengers travelling on duty and for other services rendered, the following sums are not included in the Railway earnings:---

Passengers travelling on Government service on the Main Line $6,262.65 and Fanling Branch $387.52.

Goods carried for other Government departments over the Main Line $651.46.

52. The Gross Receipts for the year were $420,186.15 as against $474,721.78 for 1923, a decrease of $54,535.63. The suspension for practically the whole year of Through and Joint Sectional Traffic referred to in paragraph 35 being alone responsible.

The working expenses exceeded the revenue by $87,628.27.

The Fanling Branch Line Receipts have improved under both heads.

53. The Claim against the Chinese Section from 1st January, 1923, to end of 1924 on account of suspension of Through and Joint Sectional Traffic amounts to $412,299.62, and hire of rolling

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