1957-1958 — Page 5

GENERAL SURVEY

IT is pleasant to be able to report that the use of diesel electric locomotives has resulted in still further economies. With the arrival of three more diesel electric locomotives during the year the Railway became almost fully dieselized, apart from handling extra traffic on special festival occasions with steam locomotives.

The results are reflected in the accounts where the Profit and Loss Statement shows a net profit of $2,051,554.20 which exceeded that for the previous year.

2. Gross income was $8,067,072.98, the highest since the financial year 1950/51 and $151,134.19 more than the previous year's figure, but net revenue was only $3,875,725.40 compared with $3,995,655.02 the year before. Unfortunately there was a higher operating expenditure of $4,191,347.58 or $271,063.81 more than the previous year. This was brought about for the most part by circumstances beyond the Depart- ment's control; firstly, by a considerable sum spent in restoring damage done by the torrential rainstorms and typhoon; secondly by an accident at Kowloon station and thirdly by pensions and gratuities arising out of staff redundancy due to diesel electric traction.

3. An important feature on this short line is the continuous increase in the local passenger traffic due to the rapid increase in population of the New Territories. Travel to and from China on the other hand is entirely dependent on the stringency or otherwise of regulations and restrictions. The non-local passenger traffic fell off during the year, due to the strict immigration regulations enforced by the Hong Kong Immigration office and the intense anti-smuggling activities by the Chinese Central People's Government.

4. The import of live pigs has traditionally been an important feature of incoming goods traffic. The total imported during the year was 252,443 head, the highest figure ever recorded and 88,904 more than during the previous year.

5. It will be noted that sale of old materials during the year amounted to $482,023.86. Of this amount $336,766.00 was derived from the clearance sales of old locomotives and spare parts, as a result of the change-over from steam to diesel electric traction.

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