CO129-366 - Governor Sir Lugard Acting Governor May - 1910 [4-5] — Page 83

81

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second and third classes respectively.

18. In consideration of the extra cost of

construction per mile of the British Section, it shall be

permissible, provided that by so doing the charge on through

traffic is not unduly increased so as to prevent or hinder the

carriage of such traffic, for the British Section to charge

such extra rates and fares per mile as the traffic will bear,

provided that the ratio of the rates and fares per mile chargem

-able on the British Section to those chargeable on the Chinese

Section shall not be greater than the ratio between the average

cost of construction per mile of the British to that of the

Chinese Section. The rates and fares chargeable on the Chinese

Section shall be known as "Normal" and those on the British

as "Constructive" and in the Division of Profits the British

Section shall receive the full difference between the Construct-

-ive and Formal Rates. The Normal Rate shall in no case be lower

that the minimum rate advertised in the Freight and Fare Tables.

19.

In order to arrive at a basis of assessment

of such rates and fares, the total milagge between any two given

points on either Section shall be increased by the addition of a

hypothetical number of miles represented by the difference bet-

-ween the average capital cost of the number of miles involved

on the British Section and the average capital cost of an equal

number of miles on the Chinese Section - divided by the average

capital cost per mile of the Chinese Section. The Normal rate

shall then be arrived at by taking the actual amount which it

is possible to charge for the distance from point to point on

either Section, and dividing it by the actual mileage between

the points plus the hypothetical miles es arrived at above.

The Constructive rate shall be arrived at by taking from the

total amount that it is possible to charge on the one hand, an

amount equal to the Normal rate multiplied by the actual

number of miles from the given point on the Chinese Section to

the