CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 598

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equipping the branch line and there will be a cash outlay of

844,027 which I propose should be paid out of the Railway Con-

-struction Loan Account. It will not be necessary to engage

staff for the construction as the existing Officials of the

Railway Department and the Public Works Department will be able

to carry out the necessary work.

6.

This branch line when constructed, will

be run as part of the main line: but, to avoid complications in

the event of joint-working with China, its capital cost will be

separated from that of the main line and an account maintained

of its earnings and working expenses. It would be entitled to a

rebate on the through traffic it brought to the main line, but

would have to contribute a percentage to cover the superior

supervision of the main line. The branch line will traverse

British Territory for the whole of its length, though it is

possible that the Chinese Government may hereafter be willing

to extend the line to Sha-u-ch'ung or even further in order to

capture the whole of the Mirs Bay and Bias Bay traffic.

Mr. Lindsey's estimate for working

7.

expenses, viz.:- 812,045 per annum, is based on a supposition

that the branch line will yield 150 passengers per diem each

way and that the fare for the journey will be 20 cents. The

earnings of the branch line are estimated to be 821,900 per

annum