Nanking, Mar, 22, 'Sun Fo, Minister of Railways, by Mr. John J. Mantell, Adviser to the Ministry, regarding the latter's inspection' of the Peking-Suiyuan Railway, Mr, Mantell states that the "'goods-tax impositions such as to make it probibiti ship goods through the various tax stations, with the result that the railway as a transportation medium, considered as practically. stopped,' except for the little passenger and goods business that is being carried on."
"The principal coal mines contributing tonnage to the railway,"
'Mantell states, "are the Sino-British mines, on' the Mentoukow Branch about 15 miles from Peking, and the mines at the end of the Tatung Branch, 242 niles from Peking. The Mentoukow mines have no through rates that would permit the coal to come into competition with other coal at Tientsin or Tangku, but involve a discrimination and do not help the economic terest of the coal-consuming public. Through rates should be tablished.
The American railway expert Vigorously attacks the present. "wieious tax system, which imposes strangulation onthe proper d velopment of the agricultural dis trict served, and creates the most harmful conditions in the encouragement of increasing products of agriculture for movement to the larger centres of population.""
"With various military distur-ances," Mr. Mantell continues, "lack of equipment, surtaxes, military, impositions, tz, the gross earnings of the three years, 1926 to 1928, are slightly over five million dollars, or about half of what it was in 1925, Despite the great falling off in revenue which would naturally decrease the productive effort of the railway, the cost of general administration in 1928, as against 1925, shows over $200,000 increase, Excess engineers, ire-men, and other employees in this department hav® been carried on. the payroll without proper return, to the railway. The unpaid wages of the employees" represent from eighteen to thirty months in back. Wages due, and as near as ca be developed, amount to $3,530,000, Of the total ownership of 198 engines of this railway, 53 are in Manchuria, north of the Great Wall. An inspection of the sleepers. showed that while the surface appeared in good condition, the core of the timber had rotted. Of a total of 110 passenger carriages owned by the railway, approximately 104 are off the line, The total capital investment railway amounts to approximately $59,000,000, and -up to July '31 the total obligations and suggested expenditures for rehabilitation will amount t> approximatel $64,556,831.16. The potentiality and earning power of this property.
considerably larger than reflected its past peak gross earnings, To develop the maximum traffic or the full- use of this railway with a Proper return, the following contions are encountered, which would irate against the placing of this railway on a sound financial basis.
"1. Lack There is no such thing as management, although, down through the ranks of the officers in the engineer-{ng and locomotive departments, Promising and good material for railway officers can be found.
"2. Reorganization of the rai mah.
"3. Removal of tax impositions, sur-charges, ete, "4. Revision of rates to produce 4 greater use of the-railway, larger gross, as well as larger net returns.
"5. Early return of the equipment, Of the 1,499 cars owned, over 1,100 are north of the Great Wall, Failure to return this equipment would constitute a very serious condition for this railway.
'In a short time this railway should earn at least $14,000,000 Bros per year, and with' prepar management should not have an operating ratio of over 53," Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.