8. An attempt was made in paragraph 26 of last year's report to forecast "trends". Considerable increases in income were anticipated from the through goods service, incidental revenue, and rents, while a large decline in through passenger receipts was expected. The stimulation obtained from the first three sources surpassed the most sanguine expectations, percentage gains of 237, 645 and 220 respectively, being achieved. On the other hand, through coaching revenue followed the presaged course and tumbled more than 50 per cent.
9. The operating ratio improved from 67.18 to 50.97 per cent, the figure up to the end of September being 49.15 per cent.
10. The outstanding traffic feature of the year was the phenomenal growth of through goods traffic. Railings aggregated 456,146 tons compared with 166,438 tons in 1937, and 60,732 tons in 1936, corresponding revenue being $621,787.28, $167,556.45, and $44,694.93.
11. (Local passenger receipts appreciated to the extent of 61.71%. Substantial growth is ascribable to the increase in resident population caused by the influx of refugees from China) The gain during the first 9 months of the year approximated 50%, and during the last 3 months 118%.
12. Co-ordination between road and rail interests was obtained when a motor rail-bus operated a shuttle service between Fanling and Taipo Market from May 1st, displacing the road buses which had performed a similar function since November 1st, 1932. At the same time both transportation systems were made supplementary by the linking up at Fanling Railway Station of the Un Long-Sheung Shui and the Shataukok-Fanling bus services. The rail-bus was constructed at the Hung Hom locomotive workshops on novel lines, two Bedford 3-ton lorry chassis being welded back to back and fitted with cast steel wheel discs to supplement the pneumatic tyres. The financial results were most gratifying, and it is highly probable that the profits from two years of operation will exceed the capital outlay.
13. At the end of May, twenty new all-steel covered goods wagons were purchased from the Chinese Ministry of Communications at particularly favourable rates. These wagons have a capacity of 40 tons and were made in Belgium. Their acquisition eased considerably the acute shortage of stock available for the carriage of commercial goods.
14. Mr. I. B. Trevor, the Traffic Manager, visited Hankow on July 1st to discuss with Canton-Hankow Railway and Ministry officials various outstanding questions relating to traffic. As the result of his visit, the allotment of wagons for the conveyance of commercial cargo was increased by 50 per cent, and a bi-weekly through passenger service between Hong Kong and Hankow was instituted on July 14th. This latter event was the most pleasing of the year, the innovation proving extremely popular. To obviate delays at Shum Chun, Chinese Customs officials were permitted to examine the baggage of down passengers en route between that station and Kowloon.
15. A head-on collision at Mile 8 on July 14th between an up (north-bound) special goods and a down (south-bound) local passenger train resulted in serious damage to rolling stock. The accident was caused by the carelessness of the driver of the special goods who forgot, apparently, that his train was not fitted throughout with continuous automatic air brakes, and ran through a station at speed in consequence. Luckily there were no major injuries to passengers or train crews.
16. The tripartite working agreement for through goods traffic between the Canton-Hankow Railway and the two Sections of this Railway was ratified on October 31st last year. Due to delays in transit, however, the copies signed by the Minister of Communications, Chinese National Government, did not reach Hong Kong.