Appendix S.
KOWLOON-CANTON RAILWAY. (British Section).
ANNUAL REPORT FOR 1932.
GENERAL.
In these days of world-wide depression when most railways are suffering from reduced earnings and in many cases heavy losses, it is gratifying to be able to report that the year 1932 proved a most successful one for this Railway.
2. The results of the last three years' working as given in paragraph 102, and as shown in the diagrams on page 24, are illuminating.
3. The net operating revenue of $333,412.15, which is irrespective of loan interest and sinking fund charges, represents a return of 1.5/8% on the total capital. Both gross and net receipts were by far the highest in the history of the Railway.
4. Conditions in South China were such that no untoward events affected through traffic between Hong Kong and Canton, and with the exception of two occasions on which through running was suspended for a few days, on account of small washouts on the Chinese Section, the train service was maintained satisfactorily throughout the year. There were no typhoons.
5. The reconditioning of the track on the Chinese Section was so far advanced by October that it was possible to increase speeds and reduce the through journey to 3 hours and 8 minutes as from the 1st of November, which notwithstanding the raising of certain of the through fares resulted in a noticeable increase in through traffic.
6. Additional revenue was obtained under many heads and considerable savings effected in coal and other items, against which however operating expenses had to bear the cost of protecting certain railway embankments against the scour of rivers.
7. While the fluctuating Hong Kong dollar in comparison with sterling affected many items of expenditure, thus rendering comparisons with former years difficult, the fall in value of Canton currency compared with Hong Kong currency seriously affected about one quarter of the total receipts from passenger traffic, in that while the British Section's proportion of receipts from down fares from Canton and Chinese Section stations, which are collected in Canton currency, and which were based on an exchange rate of 100-130, were converted monthly to Hong Kong currency at the average selling rate for the past month. This rate steadily increased to 100-144 by December.