CO129-555-1 Hong Kong Tramways Ltd.- petition 10-7-1935 - 4-10-1935 — Page 22

- 11.

-

22

raises the question of a fare war. As stated in the Clerk of Councils letter of 29th March, 1935, (pages 81 to 82),

the extensions of routes were recently approved as the

Governor in Council considered these extensions desirable

in the public interest. It was considered by Executive

Council that such extensions would provide better connections

with the Hong Kong Yaumati and other ferry services, and

were necessary in the public interest in view of the needs

of the area to be served, which is already only partially

served by the Tramways. From paragraphs 97 and 98 of the

petition it would appear, from its own admissions, that at

equal rates the Tramways should be able to compete

successfully with the Bus Company along its own route.

11.

The cost of transport in this Colony is very

high and in times of depression as at present, bears

heavily upon the public. The Tramways Company states that

one may travel for over six miles on their system for five

cents. That is so and the charge for this distance is very

moderate. In practice, however, few wish to travel these

six miles. The public require reasonably cheap transport

from point to point in the more populous parts of the City.

As stated before, the city is built on the slopes of a hill

while the tramway runs on the level at the foot. It would

be inequitable to compel the public to pay first-class fares

for such transport or to employ both tramway and bus for

one journey and pay twice where one conveyance suffices.

12.

I cannot regard the alleged financial damage

to the Tramways resulting from the introduction of second-

class fares on the buses on these routes as any more serious

than the alleged damage resulting from the introduction of

a motor bus service along Queen's Road in 1928. It certainly

cannot be proved by figures in respect of two months only

(Appendix 2). The company quotes, in support of its

contention