CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 568

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Appendix to Division of Fares.

It may be claimed that no deductions should be made from the Capital Costs of the two Sections, though this view seems hardly fair, in view of Mr. Lindsey's statement that cer- -tain of the works undertaken on the British Section are not part of the Railway proper. If this view be taken, then the pro- -portion of fares would be arrived at as follows:-

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Capital Cost....

Average cost per mile

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Chinese Sec-

-tion.

..$15,500,000

174,157

British Sec-

-tion.

$12,000,000

585,365

Ratio of neet earnings per mile C.S. : B.S.:: $174,157:8585,365.

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Assumed nett earnings for total Mileage for one year. 4,200 x 89.

£373,800

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4,200 x 585,365 174,157

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Working Expenses $9,800 x 89

Gross

Is earnings $1,246,000

872,200

x 204 ...14, 116 I 201 $9,800 x 204

.8289,378 200,900

$490,278

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Gross Earnings per mile

per year 1,246,000/89 miles $14,000

490,278/20.5 miles

.823,916.

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Ratio of rates per mile C.S: :: B.S., -814,000: 823,916. .. Rates for 3rd. class fare from Samchun to Kowloon should be 1

cent x 23,916/14,000 x 20 miles ---35 cents. Allow for deduction of 5 cents for reasons stated in paragraph 7

and the rate becomes 30 cents.

(Sd.) Chao Ching Hua,

Acting Managing Director,

Canton Kowloon Railway,

Imperial Chinese Section.