CO129-366 - Governor Sir Lugard Acting Governor May - 1910 [4-5] — Page 94

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Enclosure

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| 14167

C.R.E.

We discussed inter alia the question whether the ratio between the normal and constructive rates as defined is constant over all lengths on the railway. It can be shown that it is by the following examples: -

Assume that the Chinese actual mileage = 80 miles, that the British actual mileage = 20 miles, and denote the British hypothetical mileage by y miles. Then on

I.

Through traffic from Kowloon to Canton.

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Let x be the possible charge on such traffic,

Then the Normal Rate = 1x

10044

و

*.g. if y = 20 miles

and $x = $12.00, the normal rate will be $0.10 per mile.

y

And the Constructive Rate

=

$x-(xyxdo) 8x (20+4)

10044

= 20 (100+y)

0.5. if = 20 miles and $x = $12.00 as before, the constructive rate will be $0.20 per mile.

Therefore the ratio between the Normal & Constructive Rates is

20+4

3.8

$20 100+ y

II.

$x (20+4)

20 (100+4)

Through traffic from an intermediate point on the Chinese Sec- tion to an intermediate point on the British Section.

pant Ik ore I

Let 80-a

be the distance to the frontier on the Chinese

Section.

and 20-b

-and y

Then the Normal Rate

$x

be the distance to the frontier on the British

Section. denote the hypothetical British milesge

(do-a) + (20-6)+y" 100-a-bry

Ex