M.T. Co. Succeeds at Last
Page 55
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" VIEWING the position broadly, the applicants now seem to the Commissioners to be justified in saying that, as a result of the administration of the Road Traffic Act, 1930, and' through no obvious fault of their own, a profitable service has been turned into an entirely unprofitable one . . ."
This striking admission is made by the South-Eastern Traffic Commissioners in their decision on an applica tion by the M.T. Co. (Motor Coaches), Ltd., for increased facilities on the London-Ramsgate -route. The restrictions imposed by the South-Eastern Commissioners have been the subject of three appeals, all of which have been dismissed.
The restrictions did not become fully operative until October 1, 1933, and, when the applications were heard by the Commissioners in February, .1934, the effect of the conditions could be ascertained only for the last three months of 1933. The M.T. Co. then estimated that the restrictions would involve a loss of revenue of £2,945 a year and would make the service entirely unremunerafive. At that time the Commissioners were unable to accept this view.
At the hearing of the applications in January and February of this year, the KT. Co. was able to show that the actual decline in gross revenue had been £5,367 on a full year's working, and that the service had been operated at a loss of £1,550, without making any allowance for directors' fees or salaries.
The Commissioners point out that " this very substantial falling-off in gross revenue cannot, of course, be attributed wholly, or even mainly, to the restrictions imposed in the SouthEastern Area," the conditions imposed lw the Metropolitan Commissioner being another contributory cause.
The Commissioners state that the M.T. concern was entitled to point out that the East Kent Road Car Co., Ltd. (for the protection of the local services of which these restrictions had, to some extent, been imposed) appears now to be in a more prosperous position. Furthermore, the East Kent concern has recently taken steps to prune some of its tuiremunerative services.
Although it is not for the Commissioners to make financial adjustments between services, or to attempt to offset the loss oi one operator by abstracting traffic from another, they have concluded that the conditions have worked with undue severity uport the M.T. Co.,
and have decided to modify them in certain respects. Some of these modifications are contingent upon decisions by the Metropolitan Traffic Commissioner, who will consider the case on March 27.
The South-Eastern Commissioners are.to hold a sitting to-day (Friday) to consider fares for certain new stages granted lo the KT. undertaking.