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KOWLOON-CANTON RAILWAY. (British Section)
ANNUAL REPORT FOR 1935.
I. GENERAL SURVEY.
1. The year under review caused considerable anxiety to the railway administration through a combination of circumstances beyond its control. Operating revenue was affected considerably, firstly by the economic instability engendered by the high price of silver, secondly by the complete failure of the fruit crop in Kwangtung Province, and thirdly by the existence throughout the entire period of a rate war among the Canton river steamers:
2. Receipts and net operating revenue were $1,411,674.73 and $500,654.48 respectively, as against $1,639,775.07 and $696,604.41 the previous year. The former figures would have been increased to $1,512,405.26 and $601,385.01 had the British Section's share of terminal through traffic receipts remained at 35%.
3. The closest possible attention has been paid to operating expenditure, which was $911,020.25, compared with $943,170.66 the previous year. The rationing of monthly expenditure throughout the year, on a one-twelfth budget basis, has enabled savings to be made.
4. The impoverished spending power of the public, caused by the economic malaise, was a vital factor in reducing receipts. The railway is at present primarily a passenger-carrying line, and revenue obtained from this source reflects to a considerable extent the financial state of the area served by it. It is the aim of the Administration to induce the public to spend in travel the maximum proportion of its surplus income, and every avenue was explored with this object in view. It became evident, however, that no lasting betterment would be achieved until the depression lifted.
5. The shipping war was the result of a Diesel-engined vessel, the "Lee Hong", being placed on the Hong Kong-Canton run on December 20th, 1934. There was already a glut of river tonnage operating between Hong Kong and Canton, and in the face of this new threat, progressive cut-throat reductions were made by the various steamboat companies, culminating in a 10-cent fare being charged by one boat for a short period. In general, third-class fares by river throughout the year were about two-fifths normal. At the commencement of this war, the Administration
-S 5
KOWLOON-CANTON RAILWAY. (British Section)
ANNUAL REPORT FOR 1935.
I. GENERAL SURVEY.
1. The year under review caused considerable anxiety to the railway administration through a combination of circumstances beyond its control. Operating revenue was affected considerably, firstly by the economic instability engendered by the high price of silver, secondly by the complete failure of the fruit crop in Kwang Tung Province, and thirdly by the existence throughout the entire period of a rate war among the Canton river steamers:
2. Receipts and net operating revenue were $1,411,674.73 and $500,654.48 respectively, as against $1,639,775.07 and $696,604.41 the previous year. The former figures would have been increased to $1,512,405.26 and $601,385.01 had the British Section's share of terminal through traffic receipts remained at 35%.
3. The closest possible attention has been paid to operating expenditure, which was $911,020.25, compared with $943,170.66 the previous year. The rationing of monthly expenditure throughout the year, on a one-twelfth budget basis, has enabled savings to be made.
4. The impoverished spending power of the public, caused by the economic malaise, was a vital factor in reducing receipts. The railway is at present primarily a passenger carrying line, and revenue obtained from this source reflects to a considerable extent the financial state of the area served by it. It is the aim of the Administration to induce the public to spend in travel the maximum proportion of its surplus income, and every avenue was explored with this object in view. It became evident, however, that no lasting betterment would be achieved until the depression lifted.
5. The shipping war was the result of a Diesel-engined vessel the "Lee Hong" being placed on the Hong Kong-Canton run on December 20th, 1934. There was already a glut of river tonnage operating between Hong Kong and Canton, and in the face of this new threat, progressive cut-throat reductions were made by the various steamboat companies, culminating in a 10-cent fare being charged by one boat for a short period. In general, third class fares by river throughout the year were about two-fifths normal. At the commencement of this war the Administration
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