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# KOWLOON-CANTON RAILWAY
## Annual Report For 1939
### 1.—GENERAL SURVEY
Despite the curtailment of activities to a local shuttle service, it is pleasing to be able to record an operating surplus of $128,613.38. This result is attributable mainly to the continued use of Railway land for storing cargo consigned to China, which could not be delivered owing to Sino-Japanese hostilities.
The strict economy practised throughout the year was another contributory factor.
### 2. Receipts and net operating revenue were $911,046.87 and $128,613.38 respectively, as against $1,901,883.32 and $932,418.48 the previous year,
### 3. Operating expenditure was $782,433.49 compared with $969,464.84 in 1938.
### 4. In consonance with the complete suspension of through running, the operating ratio has depreciated from 50.97 to 85.88 per cent.
### 5. During a Japanese air raid on Shum Chun on February 21st, three planes inadvertently crossed the border. Four bombs were dropped on Lowu Station yard, and two near a local passenger train one mile south. There were no casualties among railway staff or passengers, but eleven other persons were killed. Damage to railway property amounted to $8,428, and full compensation was paid by the Japanese Government.
### 6. Prospects for the coming year are not particularly bright. There appears to be no possibility of resuming through traffic; a marked advance in local passenger receipts is not expected; a fall in earnings from rentals is anticipated, and a considerable rise in expenditure must be faced due to the war in Europe. For these reasons a cautious financial policy will need to be pursued.
## II. TRANSPORTATION
### 1. Traffic
### 7. Throughout the year 1939, the British Section reverted to a position as regards its functions not experienced since its infancy when all through running was suspended for long periods and the line was worked to the British border only. The current year, however, differs from those earlier years by reason of the fact that the border has been closed since August 16th owing to the presence of Japanese troops. This closure has resulted in marked increases in passenger journeys to and from Taipo and Fanling, the former station affording alternative communication with China via the Sha U Chung launch, and the latter via the Sha Tau Kok road-bus. This local expansion has failed to compensate for losses sustained at the frontier, account of the very much shorter hauls involved and the decreased numbers travelling.
### 8. The local passenger journeys were 1,917,603 which is an all-time record, eclipsing by 403,623 the previous record attained during 1933. For reasons given in the above paragraph however, the receipts from this source were only $660,698 compared with the 1933 peak of $704,183. In this connection it is worthy of record that the year opened auspiciously, the earnings during the first three months amounting to $209,068 which is the highest figure ever reached in any one quarter.
### 9. Local passenger carryings and receipts are compared with figures obtained during the two previous years in the subjoined table :-
Passengers carried Passenger receipts 1937 906,164 $300,760 1938 1,415,267 $486,344 1939 1,917,603 $660,698