S $ 14-
67. Special Expenditure for the year amounted to $153,485.64 and this sum has been allocated as under:
Capital $63,999.44 Revenue 8,634.67 Depreciation Reserves 67,916.53 Government 12,935.002.-Statistical.
68. A statistical section of the Accounts office was formed in May to prepare such operating statistics as are essential to gauge the work done in producing and selling transportation.
66. Passenger and goods analyses for all stations and for both local and through traffic were prepared monthly by this section and were found invaluable as they enabled early remedial measures to be taken in many instances to stimulate falling traffic.
70. To present a more comprehensive but concise view of the various ramifications of the Railway, many of the statements and tables contained in this report are either new or have been prepared in a revised form.
71. Eight out of the ten through trains are hauled to and from Canton by British Section locomotives. Haulage fees are charged in respect of the mileage run on the Chinese Section. This mileage has been termed Foreign train mileage and, in view of the fact that it is extraneous to normal traffic operations, it has only been taken into account in computing unit statistics involving running costs and locomotive repairs.
72. Through and local traffic operations have been kept distinct, and through traffic has been subdivided into its two component parts terminal and sectional. This dissection is considered desirable as the traffic is governed by entirely different conditions. Terminal through traffic, which originates from Kowloon and terminates at Canton or vice versa, is subject to special competitive rates or fares, while sectional through traffic pays ordinary charges.
73. A statistical survey indicates that it should be possible to effect an improvement in the "operating ratio" by reducing both the local train mileage and the sectional through fares.
IV.-MECHANICAL ENGINEERING.
74. All locomotives, wagons, carriages, motor cars, machinery and other plant were maintained in an efficient state during the year under review.