CO129-573-14 Kowloon-Canton railway- provision of a renewals fund 7-6-1938 - 11-10-1938 — Page 3

C. I.

Clay / Lov 465

Rackway

7.6.382

(Discusses question &acks for info as to procedure)

I wotamly agree

desceable that

should

that it

profer renewal fund

be bucht uf.

In the fost flawe

Ա

?. Dufl. & C.A

say my

that the 6.07 S. would be grateful fo the observatimo

P. Rages

1417

k

1.

The ref: 4 73 years in fare 2

of tho

I is very

misleading. Tho called "depreciation "reserve,

the provision is really (calculated in a

renevalo reserve

a

Lavoid large

the

Serial way

growth of balance) operating & flatten out

cost of replacement's charged against hery

Depreciation charge (22)

de venues.

eq. 1936.

$58,457

len New boiler (faid for out

f

Spl Enfare subhead 41 Head 26)

"

other major replacements

$38970

1113

32,083

$26,374

theve will not

be 60

Net credit to Reserve al

Under this arrangement

years

at 1%.

..