Revenue Receipts and Working Expenses can be made this year as the Line was only running three months during 1911. It is however gratifying to note that Revenue exceeded the Estimate by $40,058.80.
13. The estimated working expenses for the year under report excluding interest were $183,108.00 and at the time the Estimates were prepared it was agreed to charge $81,832.00 of this amount to Construction Account, it being ordinary Railway practice on exceptionally heavy constructions for extra maintenance to be charged to Capital during the first year of operation. However at the end of March it was decided that all future expenses of whatever nature should be charged direct to Open Line working with the result that only $5,689.10 was debited to Capital instead of $81,832.00 as was originally intended. Under this arrangement $76,142.90 additional expenditure was borne by Revenue, but as the excess of estimated Revenue is $40,058.80 the loss on the year's working is only $24,845.14 which may be considered very satisfactory.
14. Under the Working Agreement a claim of $7,316.00 has been made against the Chinese Government for compensation for late trains, and for suspension of Through Traffic from November 7th to December 14th. The amount is not included in the accounts but when paid will reduce the loss on the year's working to $17,529.14.
15. The expenditure including interest against the Grant of $566,720.59 is $561,637.17 which shows a saving of $5,083.42.
Passenger Traffic.
16. It was anticipated when the Estimates for 1911 were being prepared that connection with Canton would be made about the middle of the year and that the Railway would benefit for five or six months from through traffic with the Chinese Section. This unfortunately was not the case as the line was not opened until October 5th. From the commencement a steady passenger traffic developed in both directions as is shown by the figures, the number of Inward and Outward Passengers being practically identical. On November 7th, at the request of the Viceroy of Canton, owing to disturbances in the Kwong Tung Province, through traffic was suspended and not resumed until December 14th, when the effects of the cessation of traffic at once became apparent in the shrinkage in the earnings, and it cannot be expected that much improvement will be seen until more settled conditions prevail.
17. It will be observed therefore that the Railway has had to depend almost entirely on Local Traffic for its Revenue, but despite this fact the number of passengers carried exceeded expectations and there is little doubt that under more favourable circumstances even better results would have been obtained.
R
Revenue Receipts and Working Expenses can be made this year as the Line was only running three months during 191. is however gratifying to note that Revenue exceeded the Estimate by $40,058.80.
13. The estimated working expenses for the year under report excluding interest were $183,108,00 and at the time the Estimates were prepared it was agreed to charge $81,832.00 of this amount to Construction Account, it being ordinary Railway practice on exceptionally heavy constructions for extra maintenance to be charged to Capital during the first year of operation. However at the end of March it was decided that all future expenses of whatever nature should be charged direct to Open Line working with the result that only $5,689.10 was debited to Capital instra ! of $81,832.00 as was originally intended. Under this arrang- ment $76,142.90 additional expenditure was borne by Revenue, but as the excess of estimated Revenue is $40,058.80 the loss on the year's working is only $24.845.14 which may be considered very satisfactory.
14. Under the Working Agreement a claim of $7,316.00 has been made against the Chinese Government for compensation for late trains, and for suspension of Through Traffic from Novem- her 7th to December 14th. The amount is not included in the accounts but when paid will reduce the loss on the year's working t. $17,529.14.)
15. The expenditure inlading interest against the Grant of $566.720.59 is $561,637.17 which shows a saving of $5,083.42.
Passenger Traffic.
16. It was anticipated when the Estimates for 1911 were being prepared that connection with Canton would be made about the middle of the year and that the Railway would benefit for five or six months from through traffic with the Chinese Section. This unfortunately was not the case as the line was not opened until October 5th. From the commencement a steady passenger traffic developed in both directions as is shown by the figures, the number of Inward and Outward Passengers being practically identical. On November 7th, at the request of the Viceroy of Canton, owing to disturbances in the Kwong Tung Province, through traffic was suspended and not resumed until December 14th, when the effects of the cessation of traffic at once became apparent in the shrinkage in the earnings, and it cannot be expected that much improvement' will be seen until more settled conditions prevail.
17. It will be observed therefore that the Railway has had to depend almost entirely on Local Traffic for its Revenue, but despite this fact the number of passengers carried exceeded ex- pectations and there is little doubt that under more favourable circumstances even better results would have been obtained.
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