CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 599

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annum. Interest at 7 per centum on the capital cost of the line

which may be taken as $105,490 (viz.:- the cost of the line and

the widening of the road, but exclusive of the cost of the

extra width of bridges, or of the value of the land resumed)

comes to 87,384 per annum, which added to the working expenses

makes $19,429. Therefore, if the estimated earnings are realized

there should be an immediate profit of 82,471 a year from this

work without taking into consideration the effect of the

traffic to Sham Chun brought on to the main line. I may observe

that by this project a quantity of old rails and other gear

which would probably be difficult to dispose of are utilised

and their full value is credited to the Kowloon-Canton Railway

Construction Account.

8.

Sir F. H. May, Mr. Clementi, and Mr.

Ross who are all intimately acquainted with the District

through which this light line will pass have expressed the

opinion that it will certainly prove remunerative: and when I

brought the matter before the Executive Council on the 3rd. of

last February, the Council unanimously advised that the

construction of the line should be proceeded with as rapidly

as possible and that, subject to your approval, the expenditure

involved (exclusive of the 18,950 required for widening the

road) should be charged against the Railway Construction Loan

Account