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Of the coach derailments one was a Chinese Section coach on a through express train, and the other a motor coach while shunting.

Of the collisions one was on the Fanling Branch Line, another a buffer stop collision, and the third a shunting collision.

The fire occurred in the locomotive workshops, in the wheel pit, but was immediately extinguished by the staff.

55. Other accidents occurred which involved:—

Death

Serious or Slight Injury Injury

to Passengers

2

Trespassers

3

1

Railway Servants

1

56. A fourth death was registered, in the case of a male body found in Tunnel No. 2, but there was no evidence of it being the result of a railway accident.

57. A somewhat alarming incident occurred in April when a Chinese Section engine arrived in British territory without driver or fireman. Fortunately steam was exhausted and the engine came to a standstill without doing any harm. The action was attributed to disaffected employees on that Section.

ACCOUNTS.

58. The Capital Account and the Revenue Statements of Earnings and Expenditure follow the lines adopted last year.

59. The Depreciation Charges in respect of the current year are in accordance with the scale laid down in the Classification of Expenditure prescribed by the Ministry of Communications, Peking, and a sum of $79,572.02 was included in the Operating Expenses, Maintenance of Equipment under the usual sub- heads. The amount to the credit of Depreciation Reserves at the close of the year was $765,614.67.

60. The amount provided for the year 1927 under Special Expenditure was $64,800, and during the year at various times further sums were voted, making a total of $70,272.09.

Under sub-head 35 a sum of $5,260.54 was not required, as the work was completed for less than anticipated. As the roofing for the Workshops did not arrive, $1,760.20 was unspent; also under sub-heads 38 and 42, $2,787.70 and $22,139.50 respectively lapsed as the works were not completed during the year.

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