st of conveyance to the place need not be considered
here, as it would be the same in either system. If we keep a stock
of supplies at a place we must incur expenditure to provide for
the storage of the articles. There would be what may be called
the capital charges for sites, buildings, residences, jetties,
tram lines, &c., for which L20,000 would probably not be enough,
but we may put it at that so as to avoid the appearance of
exaggeration. A further charge would be due to the provision of
tugs or steam launches, and perhaps lighters. This would hardly
be less than L15,000. Interest on money sunk, cost of repairs,
and maintenance, would not be excessive if they amounted to L3500
a year. There must be some allowance for the coal used by the
tugs and steam launches. It is doubtful if L500 a year would
cover this; but we may put it at that. Salaries and wages of
staff, including persons employed in tugs and steam launches,
would reach quite L2500 a year. It is to be noted that the items
which these charges are assumed to cover cannot be dispensed
with. If depots are established at all, they must be so arranged
that the stores deposited in them can be securely kept and can
be utilised with proper expedition. The total of the charges
just enumerated is L6500 a year.

There are other charges that cannot be escaped. For example,
landing a ton of coal at Wei-hai-wei, putting it into the depot,
and taking it off again to the man-of-war requiring it, costs $1
20 cents, or at average official rate of exchange two shillings.
At Hong-Kong the cost is about 2s. 5d. a ton. The charge at 2s.
per ton on 50,600 tons would be L5060. I am assured by every
engineer officer to whom I have spoken on the subject that the
deterioration in coal due to the four different handlings which
it has to undergo if landed in lighters and taken off again to
ships from the coal-store cannot be put at less than 10 per cent.
Note that this is over and above such deterioration as would be
due to passing coal direct from the hold of a collier alongside
into a ship's bunkers. If anyone doubts this deterioration it would
be well for him to examine reports on coal and steam trials. He
will be unusually fortunate if he finds so small a deterioration as
10 per cent. The lowest that I can remember having seen reported
is 20 per cent.; reports of 30 and even 40 per cent. are quite
common. Some of it is for deterioration due to climate and length
of time in stor