68. Traffic Expenses fell slightly by $385.76.
69. The increase in Running Expenses of $11,119.82 or 3.47% was more than offset by the $62,310.80 additional revenue secured from foreign haulage fees.
70. Maintenance of Equipment showed a decline in expenditure of 2.79%.
71. Expenditure on Maintenance of Way and Structures dropped 14.50%, the main saving being under the heading of sleepers.
72. With the exception of Incidental Revenue, Home Line; Incidental Revenue, Foreign; and Foreign Haulage; heads of revenue decreased during the year, the factors contributing to this decline being given in paragraphs 4 and 5 of this report.
73. Incidental Revenue, Home Line, increased 52.81%. This rise is due to the additional sale of platform tickets and to the sale of confiscated dutiable goods found on trains.
74. Incidental Revenue, Foreign Line, increased by $706.23. Through catering fees were reduced by $3,416, but $5,280 was received from the Chinese Section, in accordance with the new Working Agreement, to cover the cost of cleaning and oiling their rolling stock at Kowloon.
75. Depreciation charges on rolling stock amounted to $71,459.71 and this sum has been included in the Operating Account. The amount now standing to the credit of Depreciation Reserves is $894,855.64.
76. The exchange rate between Canton and Hong Kong varied considerably during the year. The rate opened at 137.40 and closed at 140.00, but reached 163.50 during November. The average rate for the year was 143.71. The British Section's share of Sectional through receipts in respect of down traffic was based on a transaction rate of 140, and this operated in favour of the Section for the first five months of the year and against it for the last seven months. These receipts, however, fell considerably during the latter part of the year, so that little or no exchange benefit accrued to either Section.
77. Special Expenditure for the year amounted to $129,721.71 and this sum has been allocated as under:
Capital $74,083.27 Revenue $1,827.69 Depreciation Reserves $53,810.75 $129,721.71