CO129-466 - Individuals - 1920 — Page 539

To: The Under Secretary of State.

"recent years, but some companies are doing very well " for their shareholders. The Bristol Tramwaya and "Carriage Company pays for 1919, as for 1918, 7% free "of income tax.

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Receipts from Tramways and the carriage department "both showed fair increases, but expenditure still runs "high, absorbing last year 91% of the gross revenue.

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535

This makes the more remarkable the experience of the "Torquay Tramways Company in the same year, for ite

Even "working expenditure was only 45% of the grosa. "if the £10,000 allocated from profits to reserve and "renewals be included in expenses the ratio is still under "64 per cent.

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The Torquay system is a small and compact one of "less than 10 miles, and the capital is in accordance. "For 1919 the company paid 8 per cent. free of income tax "and besides reserving £10,000 for renewale (bringing the "fund to £40,000), put £3,000 to a dividend equilisation "fund.

The shares not long ago received an official quota-

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The Promoters have inspected the Torquay Tramways system, which includes many steep gradients similar to those which will be experienced in Hong Kong, and the high standard of construction and exceptionally smooth running of the tramways are in themselves flattering textimonials to the ability of the

It is understood the National Electric Construction Company. Rhondda tramways, which were completely equipped and financed by the National Electrio Construction Company are equally well

The Promoters are constructed and financially successful. Batisfied that if they had been allowed to proceed as they were doing in November and December, 1918, the construction of the Tramway to Hong Kong South would by now have been nearing completion, if not already completed.

Although the Armistice was signed on November 11

nearly one year 1918, it was not until October 2nd, 1919 later

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that the Promoters received the Colonial Office authority to proceed, and then only on lesв satisfactory terms than those originally contemplated. The Promoters, although much discouraged

and despite requirements by the Colonial Government's attitude

under- for the first time of a forfeitable deposit of $50,000 took to enter into fresh negotiations with a view to carryingthe acheme to fruition. The delay, entirely attributable to the Colonial authorities, and the inexplicable objection to the National Electric Construction Company, rendered these new negotiations far more difficult than would otherwise have been the case, there being the odium attaching to the business as a

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