63. General Expenses increased by $35,006.14 due to lower sterling exchange and increased pension commitments.
64. An increase of $5,518.21 on Traffic Expenses may be attributed to sterling exchange and to cost of passages.
65. Running Expenses and Maintenance of Equipment both show a substantial reduction, due in part to the handing over of the three express locomotives to the Chinese Section, and to the very favourable price of coal.
66. Expenditure on Maintenance of Way and Structures has increased slightly owing to extraordinary expenditure on repairing typhoon damage and to the higher price of sleepers.
67. Revenue for the year dropped 11.77%, the factors contributing to this decline being given in paragraphs 2 and 3 of this report.
68. An increase of $4,032.42 was registered on Incidental Revenue Home Line, and rents have risen by $2,124.85.
69. Depreciation charges on rolling stock for the year amounted to $58,457.34 and this sum has been included in the operating account. The amount now standing to the credit of Depreciation Reserves is $921,229.48.
70. Special Expenditure for the year amounted to $82,477.91 and this sum has been allocated as under:-
Capital $13,943.55 $4,796.22 Revenue $30,970.50 $32,767.64 Depreciation Reserves $82,477.91 Payments made in advance2.—Statistical.
71. The statistical section has continued to produce comprehensive returns of the working of the Railway.
72. The work of this section has been facilitated since January 1st by the issue of an instruction book on operating statistics specially prepared to suit local conditions which, together with a "vehicle list", has rendered the compilation of statistics a matter of simple routine.
73. Comparative statistics, during the past few years, have been subject to influences which vitiate their value as indicators of trends, unless due weight is given to the varying factors involved. Major factors on the revenue side have been the reduction of the British Section's share of terminal through receipts from 35% to 28%; the sudden growth, the equally rapid decline, and the subsequent stoppage of Shum Chun Casino traffic; and the fluctuations in foreign haulage receipts. On the expenditure side, due regard has to be paid to the varying prices of coal and other stores.