We note in the Report of the Commissioner of Customs at Canton an interesting reference to the Canton-Kowloon railway, say "Hongkong Daily Press." Mr. Maze writes: " Seeing the admi able river steamer service which is in operation between Canton and Hongkong, it may be reasonably questioned whether the railway will prove a financial success—at any rate until i is linked up with the Canton-Hankow line, when the latter is completed." At the time the railway was opened, we gave expression to similar thoughts, but the results of the working of the railway—the British section, at least'—have exceeded all expectations, and the outlook is by no means pessimistic as it appeared a couple of years ago. Before Sir Frederick Lugard left the Colony he was enabled to make the gratifying announcement that the revenue of the British section of the railway in 1911 had exceeded the estimate by, more than 840,000.
Mr. Winslow's Report on the working of the section during the year 1911 has been recently published, and from it we may quote the following statement: The estimged to capital during the first year of operation. However, at the end of March it was decided that all future expenses of whatever na ture should be charged direct open line working, with the result that only $5,689.10 was debited capital instead of $51,832.00 as originally intended. Under this arrangement 876,142.90 additional expenditure was borne by revenue, but as the excess of estimated revenue is 840,058.80, the loss on the year's working is only $24,845.14, which may be considered very sat is factory.""
The report further mentions thst under the working agreement claim of $7,316.00 has been made against the Chinese Government for cofhpensation for late trains. and for suspension of through traffe from November 7 to December The amount is not included in the accounts, but when paid will redare the loss on the year's working to 817,599.14, The management was considerably handicapped last year by " shortage of rolling stock and locomotives, but this has since been remediei, and we shall be much surprised if the result of the present year's working does not show a good m1: gin over the working expenses. Thr loss on working (824,845) and: t: interest on Crown Agents' advances ($167,787) and on the Wuchan: Loan ($221,945). make " total $414,578.
When it is borne in mind that who railway had to depend almost ea tirely on local traffic for its revenne in 1911, the financial results must bet regard as very satisfactory. In framing the estimates for 1911 the railway management bad cai culated that the railway would benefit for five or six months from through traffic with the Chinese section; but despite the fact that through communication was not es tablished till October 5, the revenue exceeded the estimaye—which, if we recollect rightly, Sir Frederick Lugard had regarded as over-sanguine—by no less than $40,000. The Passenger traffic over the line is constantly increasing. It is on this that the railway must continue for some years yet to depend almost entirely for its revenue. The local coaching traffic accounted for $107,398, while local goods trafic—which consisted principally of fruit. rice, dried fish, vegetables and other market commodities and construc: tion materials for the Chinese section—brought in only 812,515.
Text read from the printed page and cleaned; old type leaves the occasional error.