21. A typhoon on the 1st August caused considerable damage to stone pitching on the seaward side of the line between Shatin and Taipo. The stone causeway approach to Taipo Railway Pier was also damaged.
22. Under Special Expenditure it had been intended to rebuild Sheung Shui Station in 1931, and a start was made by laying a portion of the new loop line, but the work was not proceeded with on account of the peculiar financial position.
23. All the remaining items of Special Expenditure were cancelled in view of the heavy expenses incurred in repairing the abnormal rainstorm damage.
TRAFFIC.
24. The view, expressed in the annual report for 1930 under this heading that, given a fast and punctual service of trains between the two cities, an ever-increasing proportion of passengers would travel by train, was fulfilled during the year 1931. Increases furthermore occurred in the 1st and 2nd class passengers, and there is every prospect of still further improvement in the numbers.
25. It is to be deplored that whilst the Railway in the course of its vicissitudes in the past has frequently been debarred from earning revenue due to Chinese political and other troubles, it should have suffered a setback in what promised to be a record year owing to an accident which no foresight could have prevented. Until April 20th of 1931, the Railway had, from its inception, carried 24,000,000 passengers without serious injury to a passenger, or loss of a passenger life, and it is with profound regret that eleven deaths and some nine seriously injured passengers and an unknown number with minor injuries, have now to be recorded.
26. A most unfortunate combination of adverse circumstances existed on this date. A cloud-burst occurred in the hills which caused a normally small waterfall at Mile 9 to become a raging torrent which within twenty minutes overflowed its training wall and completely undermined an embankment for a distance of some 40 yards and wrecked a local train passing over at the time, besides so damaging the underground telephone cable that no telephone communication was possible after the first few minutes.
27. The same cloud-burst was responsible for two other wash-outs some 23 miles nearer Kowloon, thus preventing a relief train reaching the scene of the disaster. In addition, a road bridge gave way short of the accident, which rendered impossible access to the site by road direct; and finally the road