CO129-356 - Governor Sir Lugard - 1909 [4-6] — Page 302

(1890), Wt, 20024-26, 6000, 11/08, A, & E, W,

(8327),

,, 1081-7. 6000. 4/00,

++

No.

157.

Jongkong.

My Lord,

291

C.O. 22597

REC

0

7 JUL 09)

Government House,

Hongkong, 4th. June, 1909.

My predecessor ruled that the

interest on current advances to the Railway Construction

Account should be debited to the ordinary Expenditure of the

year and stated his views in his Despatch No. 169 of 23rd.

fou 2759 June, 1906. So far as I am aware it is the usual custom

to charge interest on Loan for construction to Construction

Account pending the opening of each section of a Railway

when it is charged to "Open Line Account" for that section.

This is the custom in India, and this procedure was follow-

-ed in the case of the Uganda Railway and I am under the

impression that it was also done by the Lagos Railway though

I am unable here to verify the fact.

2.

I have the honour to submit to

Your Lordship that this procedure is financially sound,

and that the opposite course does not disclose the real

cost of constructing a line. It is the course which would

be

HE RIGHT HONOURABLE

THE MARL OF CREVE,

8cC++

"

&c. ..

&C.